project on tata motors's passenger car

7/30/2019 project on Tata motors's passenger car

1/108

Project on

Comparative study of TATA MOTORS with theIndustrys Competitor & CUSTOMER SATISFACTION SURVEY


2/108

Exceutive Summary

This project is on Comparative study of TATA MOTORS with theIndustrys Competitor & CUSTOMER SATISFACTION SURVEYbased on market performance and on customer survey.The main objectives of the project are:

Market performance in automobile industry Market position. Economic and the industry environment Cost saving initiatives Awareness regarding the facilities provided by Tata Motors.

Overall opinion about Tata Motors. Satisfaction amongst the customers of Tata Motors

For this project customer research was carried out at various area of ThaneDistrict of Maharashtra. I learnt analysis of Market performance by TataMotors and to find different aspects for compare the standing vis--visindustry and customers perception about TATA Motors.

THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS1.Company Overview:

This part describes the company profile. This part recognizes theachievements and rewards the company has achieved, it also gives littleinsights into what company offers to the Corporate and the Consumers. Thissection also describes the kind of technology used.

2.Company ProfileThis section gives the information about the company. It includes thecompany history which depicts the company from the period offoundation. This section also products of the company producing bythe company.


3/108

Competitors of company:The companys competitors are finding and study the business duringthe financial years

FINDINGS:A detailed analysis of the company shows that the company has had astrong fundamental as well as a strong market performance over the years.Given the economic and the industry environment (improving outlook for theCV industry) TATA Motors would be a key beneficiary.

While a pick-up in its CV volumes is evident, operating leverage and costsaving initiatives will improve margins.On an average more than73% people feel that the prices are affordable whereas 12% do not agree,

74% believe that attractive discounts are offered whereas 26% are notsatisfied with the discounts offered.20% said that the test drives are not offered and 15% said that post salesfollow ups are not done regularly whereas 85% said that they were doneregularly but people feel that it is the peoples car as it is satisfactory on allother parameters: knowledgeable sales persons, employees spent enoughtime before and during sales, display of merchandise is attractive,availability of product, variety of merchandize, vehicle in good condition,prices are affordable, attractive discounts are offered, dcor of the waitingarea is pleasing, responds to complaints quickly, service at TATA Motorsservice station is excellent, careful with personal informationand is value for money . The overall opinion about TATA Motors is very good.

At the end it is submitted to ASMs Institute of management andComputer studies


4/108


5/108

Introduction


6/108

India is an emerging country with huge potential. The domestic economy is

now growing at around 9-10% per annum and Indias importance in globalterms is being reinforced by rapidly rising exports and domesticconsumption.

At a time when numbers of a slowdown and overheating in the Indianeconomy have started gaining momentum, the Indian rupee sprang asurprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore)mark.

The automotive industry is at the center of Indias new global dynamic. The

domestic market expanding rapidly as incomes rise and consumer creditbecomes more widely available. Manufacturers product lines are beingcontinually expanded, as is the local automotive manufacturing base.

Expectation are high that India can develop as a global hub for vehiclemanufacturers and as an outsourcing center that offers the global

automotive industry solution high up the automotive value chain.

The automobile industry in India accounts for a business volume of $45

billion and has the potential to grow much faster both through Indian aswell as international manufacturers who have established huge facilities inthe country With the worlds second largest and fastest-growing population,there is no denying Indias potential in both economic and population termsand the effect it will have on the auto industry in the years to come. Thecountry is already off to a good start, with a well-developed componentsindustry and a production level of 1 million four-wheeled vehicles a year,plus a further 5 million two- and three-wheelers

The implications, market drivers and scope of a future massive Indian

vehicle market are covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and related activity to 2020. Based onMax Pemberton's unique relational long-term forecasting model, it forecastscar and CV sales, demographics, materials usage, auto industryemployment, and explains their inter- year of healthy growth in autoindustry


7/108

INDIA THEN & NOW1983

Number of brands 2Number of models 2

In 20112008

Number of brands 49

Number of models 95


8/108

LITERATUREREVIEW


9/108

Tata Motors July sales at 48,054 nos., growth of 18%M&HCV sales record year-on-year growth after almost a year- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial andpassenger vehicles in July 2009 were 48,054 vehicles, a growthof 18% over 40,729 vehicles sold in July 2008. The companys domesticsales of Tata commercial and passenger vehicles for July2009 were 45,599 nos., a 23% growth over 37,033 nos. sold in July lastyear.Cumulative sales (including exports) for the company for the fiscal at171,168 nos., was lower by 1%, compared to 172,462 nos. sold last year.

Commercial VehiclesThe companys sales of commercial vehicles in July 2009 in the

domestic market were 28,408 nos., a 27% growth compared to 22,381vehicles sold in July last year.LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCVsales stood at 10,658 nos. turning positive after almost a year with a growthof 6% over July last year and the highest since September2008 Cumulative sales of commercial vehicles in the domestic market forthe fiscal were 100,464 nos., a growth of 7% over last year.Cumulative LCV sales were 63,180 nos., a growth of 32% over last year,while M&HCV sales stood at 37,284 nos. was lower by 19% over last year.Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake

of 19,881 nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July2009, a 32% increase compared to 15,064 nos. (14,652 Tata + 412 Fiat) inJuly last year. Sales of Tata cars, at 14,537 nos., grew by 21% over July2008. Dispatches of the Tata Nano began during the month, and the saleswere 2,475 nos. The Indica range sales were 8,563 nos., a growth of 14%over July last year. The Indigo range recorded sales of 3,499 nos., lower by22% over July last year. The UV/SUV range of Sumo/Safariaccounted for sales of 2,638 nos., flat compared to July last year.The company began the sale and deliveries of the Jaguar and Land Roverrange through the brands flagship store in Mumbai. The response has been

quite encouraging in the first month with the initial India stock andpipeline imports booked to a large extent. Cumulative sales and distributionofftake of passenger vehicles in the domestic market for the fiscal were70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746Tata + 1,813 Fiat) last year, a growth of 4%. Nano sales were 2,475 nos.Cumulative sales of the Indica range at 37,412 nos., reported a growth of13%. Cumulative sales of the Indigo family were 12,422 nos., lower by 29%.Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%.

ExportsThe Companys sales from exports at 2,455 vehicles in July 2009 were lower

by 34% compared to 3,696 vehicles in July last year. The cumulative sales

Released on 27 July 2009


10/108

from exports for the fiscal at 7,676 nos. were lower by 40% over 12,855 nos.in the same period last year.

TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI- Rojar R. Karm

Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare ofMumbai has become the first customer in India of the Tata Nano. Mr.Vichare received his choice, the Tata Nano LX (Lunar Silver), at the hands ofthe Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, at thecompanys dealership, Concorde Motors, today. Speaking on the occasion,Mr. Tata said, I hope the Tata Nano will bring motoring pleasure to thosewho will be buying their first car as also those who currently own cars butwant a modern, contemporary, emission-friendly city car. Along with Mr.Vichare, two other customers, Mr. Ashish Balakrishnan (Tata Nano LXSunshine Yellow) and Kores India Limited (Tata Nano LXLunar Silver),also received their cars today. As planned, Tata Motors has commenceddeliveries of the Tata Nano this month to different towns and cities of thecountry. Dispatches to dealerships have begun from the Pantnagar plant,where the car is being produced, in accordance with schedules informed tocustomers

.

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rover's official entry to the fast-growing Indian car marketwas marked today by the opening of a flagship showroom facility at CeejayHouse in Mumbai by Mr. Ratan N. Tata, Chairman of Tata Sons and TataMotors.Jaguar and Land Rover's award-winning vehicles are well known around the

world. Jaguar has become one of the world's leading producers of beautifulfast cars. Land Rover produces the worlds most versatile all-terrainvehicles, combining refined luxury with a true breadth of capability.The exciting new range of premium luxury vehicles available for the Indianmarket will include the Jaguar XF, XFR and XKR and Land Rover Discovery3, Range Rover Sport and Range Rover. Further details, includingspecifications, are available on the new Jaguar India website(www.jaguar.in) and Land Rover India website (www.landrover.in). JaguarLand Rover has confirmed Tata Motors as its exclusive importer and theworld-class Ceejay House facility in Worli, Mumbai, will offer a wide range of

both Jaguar and Land Rover vehicles, with a dedicated showroom section foreach brand. It aims to establish a benchmark experience in luxury car sales

Released on 17 July 2009

Released on 28 June 2009
http://www.landrover.in/http://www.landrover.in/http://www.landrover.in/http://www.landrover.in/


11/108

in India, with plans to develop the dealer network throughout 2009 and2010. Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "Weare extremely pleased and proud to introduce the Jaguar Land Rover brandsin the Indian market and give the discerning Indian customer direct accessto these prestigious brands, accompanied by a

parts and service network. We hope that they will delight customers in Indiajust as they have done in markets the world over." Mr. David Smith, CEO ofJaguar Land Rover, said: "Jaguar Land Rover is delighted to have officiallyopened our first showroom in India. It is an exciting time to be entering theIndian market, a country with increasing affluence and an economy which isstill growing. We believet hat the Indian market holds significant growthpotential in the long term, and we hope to tap the demand for premiumvehicles from discerning customers."

..

TATA MOTORS TO INTRODUCE AIR CAR Ben MaGreow

Tata Motors is taking giant strides and making history for itself. First theLandrover-Jaguar deal, then the world's cheapest car and now it is also settointroduce the car that runs on air, compressed air to be specific. With fuelprices touching nearly $150 per barrel, it is about time we heard somebreakthrough! India's largest automaker Tata Motors is set to startproducing the world's first commercial air-powered vehicle. The Air Car,

developed by ex-Formula One engineer Guy Ngre for Luxembourg-basedMDI, uses compressed air, as opposed to the gasand- oxygen explosions ofinternalcombustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by Augustof 2009. The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($8177) in India and would have a range of around 300 km between refuels.The cost of a refill would be about Rs. 85 ($2). Tata motors also plans tolaunch the world's cheapest car, Tata Nano priced famously at One lakhrupees(1200) by October.

The MiniCAT which is a simple, light urban car, with a tubular chassis thatis glued not welded and a body of fiberglass powered by compressed air.Microcontrollers are used in every device in the car, so one tiny radiotransmitter sends instructions to the lights, indicators etc. There are nokeys - just an access card which can be read by the car from your pocket.According to the designers, it costs less than 50 rupees per 100Km (about atenth that of a petrol car). Its mileage is about double that of the mostadvanced electric car (200 to 300 km or 10 hours of driving), a factor whichmakes a perfect choice in cities where the 80% of motorists drive at lessthan 60Km. The car has a top speed of 105 kmph. Refilling the car will, oncethe market develops, take place at adapted petrol stations to administer

compressed air. In two or three minutes, and at a cost of approximately 100rupees, the car will be ready to go another 200-300 kilometers.


12/108

As a viable alternative, the car carries a small compressor which can beconnected to the mains (220V or 380V) and refill the tank in 3-4 hours. Dueto the absence of combustion and, consequently, of residues, changing theoil (1 litre of vegetable oil) is necessary only every 50,000Km.] Thetemperature of the clean air expelled by the internal air conditioning system

with no need for gases or loss of power.

.

EFFECT OF INFLATION ON CAR MARKET- Hindustan Times

The growth in the car market has shown declining results as a result of theinflation. The effect on inflation has affected every sector which is related tocar manufacturing and production. The increase in the price of fuel and the

steel has led to a slower growth rate of the car industry in India. Theproduction of Indian cars has been brought to a noticeable halt for inflation.It has also been noticed that leading car manufacturer in India like the TataMotors, Maruti, Hyndai and Honda are trying hard to boost their productionand sales of the cars. The effect of inflation has affected not onlythe production and sales of Indian cars but also has significantly affectedthe car dealer, officials and car financers. Research and observations haveled to the conclusion that in the year 2008, the car market and the carindustry is expected to witness 8-9% fall. The effect of inflation on the carmanufacturers have in turn affected the dealers in a way where they arebeing pressurized to push the sales graph higher and keep a high profit

margin. The financers in the cycle are pressurized by both carmanufacturers and dealers to pay the consumers a cent percent financialassistance by reducing on the loan interest rate. Overall it has been noticedthat the automobile market in India and specially the car market in Indiahave experienced a downtrend with the inflation affecting almost everyindustry to which the car market is essentially related in a scenario wherethe stock market is on a slow rise. Due to inflation it has also been noticedthat the sales of car are being motivated by the discount offers that theautomobile companies are offering to the buyers. Some car manufactureshave gone to the extent of giving exchange offers to the consumers and some

have introduced a competitive finance rates. The effect of inflation has takenthe rise in the price rate of the cars by 3-4%, which in turn suffices the needto meet the rise in price of the raw materials to build a car.


13/108

COMPANYPROFILE


14/108

TATA GROUPTata is a rapidly growing business group based in India with significantinternational operations. Revenues in 2007-08 are estimated at $62.5 billion(around Rs251,543 crore), of which 61 per cent is from business outsideIndia. The Group employs around 350,000 people worldwide. The Tata namehas been respected in India for 140 years for its adherence to strong values

and business ethics. The business operations of the Tata Group currentlyencompass seven business sectors: communications and informationtechnology, engineering, materials, services, energy, consumer products andchemicals. The Groups 27 publicly listed enterprises have a combinedmarket capitalization of some $60 billion, among the highest among Indianbusiness houses, and a shareholder base of 3.2 million. The majorcompanies in the Group include Tata Steel, Tata Motors, Tata ConsultancyServices (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels andTata Communications.The Groups major companies are beginning to be counted globally. TataSteel became the sixth largest steel maker in the world after it acquired

Corus. Tata Motors is among the top five commercial vehicle manufacturersin the world and has recently acquired Jaguar and Land Rover. TCS is aleading global software company, with delivery centres in the US, UK,Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the secondlargest branded tea company in the world, through its UK-based subsidiaryTetley. Tata Chemicals is the worlds second largest manufacturer of sodaash. Tata Communications is one of the worlds largest wholesale voicecarriers.In tandem with the increasing international footprint of its companies, theGroup is also gaining international recognition. Brand Finance, a UK-basedconsultancy firm, recently valued the Tata brand at $11.4 billion and rankedit 57th amongst the Top 100 brands in the world.Businessweekranked theGroup sixth amongst the Worlds Most Innovative Companies. And theReputation Institute, USA, recently rated it as the Worlds Sixth MostReputed Firm. Founded by Jamsetji Tata in 1868, the Tata Groups earlyyears were inspired by the spirit of nationalism. The Group pioneeredseveral industries of national importance in India: steel, power, hospitalityand airlines. In more recent times, the Tata Groups pioneering spirit hasbeen showcased by companies like Tata Consultancy Services, Indias firstsoftware company, which pioneered the international delivery model, andTata Motors, which made Indias first indigenously developed car, the Indica,

in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, forcommercial launch by end of 2008.


15/108

The Tata Group has always believed in returning wealth to the society itserves. Twothirds of the equity of Tata Sons, the Tata Group.s promotercompany, is held by philanthropic trusts which have created nationalinstitutions in science and technology, medical research, social studies andthe performing arts. The trusts also provide aid and assistance to NGOs in

the areas of education, healthcare and livelihoods. Tata companies alsoextend social welfare activities to communities around their industrial units.The combined developmentrelated expenditure of the Trusts and thecompanies amounts to around 4 per cent of the Groups net profits. Goingforward, the Group is focusing on new technologies and innovation to driveits business in India and internationally. The Nano car is one example, as isthe Eka supercomputer (developed by another Tata company), which in2008 is ranked the worlds fourth fastest. The Group aims to build a seriesof world class, world scale businesses in select sectors. Anchored in Indiaand wedded to its traditional values and strong ethics, the Group is building

a multinationalbusiness which will achieve growth through excellence and innovation, whilebalancing the interests of its shareholders, its employees and wider society.

CORE VALUES OF TATAAt the Tata Group our purpose is to improve the quality of life of thecommunities we serve. We do this through leadership in sectors of nationaleconomic significance, to which the Group brings a unique set ofcapabilities.

This requires us to grow aggressively in focused areas of business. Ourheritage of returning to society what we earn evokes trust amongconsumers, employees, shareholders and the community.

This heritage is being continuously enriched by the formalization of the highstandards of behavior expected from employees and companies. The Tataname is a unique asset representing leadership with trust. Leveraging thisasset to enhance Group synergy and becoming globally competitive is theroute to sustained growth and long-term success.

FIVE CORE VALUESThe Tata Group has always sought to be a value-driven organization. Thesevalues continue to direct the Groups growth and businesses. The five coreTata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty andtransparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion andhumanity for our colleagues and customers around the world, and always

work forthe benefit of the communities we serve.


16/108

Excellence: We must constantly strive to achieve the highest possiblestandards in our day-today work and in the quality of the goods andservices we provide.

Unity: We must work cohesively with our colleagues across the Group andwith our customers and partners around the world, building strongrelationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to thecountries, communities and environments in which we work, alwaysensuringthat what comes from the people goes back to the people many timesover.

TATA Group CompaniesFamily prideThe TATA family of enterprises comprises 98 companies in seven businesssectors. This section lists all these companies under the sectors in whichthey operate, besides the two promoter companies of the Group.

The Seven Business Sectors are:

1.Engineering (AUTOMOTIVE):

Tata Auto comp systems:Subsidiaries/Associates/Joint Ventures:International Automotive, KnorrBremse Systems for commercial Vehicles, Tata Auto Comp GY Batteries,TACO Engineering, TACO Faurecia Design Centre, TACO HendricksonSuspension Systems, TACO Interiors and Plastics Division, TacoKunstofftechnik, TACO MobiApps Telemaics, TACO Supply ChainManagement, TACO Tooling, TACO Visteon Engineering Center, Tata FicosaAutomotive Systems, Tata Johnson Controls Automotive, Tata ToyoRadiator, Tata Yazaki Auto Comp, TC Springs, Technical Stampings

Automotive.

Tata Motors:Subsidiaries /Associates/ Joint Ventures:Concorde Motors, HV Axels, HVTransmissions, Nita Company, TAL Manufacturing Solutions, TataCummins, Tata Daewoo Commercial Vehicles Company, Tata EngineeringServices, Tata Precision Industries, Tata Technologies, Telco constructionEquipment.

Engineering Services

Tata Projects, TCE Consulting Engineers, Voltas


17/108

Engineering ProductsTAL Manufacturing Solutions, Telco Construction Equipment Company, TRF

2.METALS:TATA STEELSubsidiaries /Associates/ Joint Ventures:Hooghly Met Coke and PowerCompany, Jamshedpur Injection Powder (Jamipol), Jamshedpur Utility andService Company Limited (JUSCO), Lanka Special Steel, Mjunction Serves,NatSteel, Sila Eastern Company, Tata Blue Scope Steel, Tata Metallic, TataPigments, Tata Refractories, Tata Ryerson, Tata Sponge Iron, Tata steel(Thailand), Tata Steel KZN, Tayo Rolls, The Dhamra Port Company, TheIndian Steel and Wire Products, The Tinplate Company of India, TmInternational Logistics, TRF.

3.ENERGY:POWER

Tata BP Solar India Tata Power Subsidiaries /Associates/ Joint Ventures:Tata Ceramics, Tata Power

Trading, North Delhi Power Limited

OIL AND GAS

Tata Petrodyne

4.CHEMICALS: Rallis India Tata Pigments Tata Pigments

PHARMA

Advinus Therapeutics

5.SERIVES:

HOTELS AND REALTY Indian Hotels (Taj Group) Subsidiaries /Associates/ Joint Ventures:

Taj Air, Roots Corporation (Ginger Hotels)

THDC

Tata Realty and Infrastructure

FINANCIAL SERVICES

Tata AIG General Insurance, Tata AIG Life Insurance, Tata AssetManagement, Tata Capital, Tata Financial Services, Tata InvestmentCorporation

OTHER SERVICES


18/108

Tata Quality Management Services, Tata Services, Tata StrategicManagement Group

6.CONSUMER PRODUCTS: Infiniti Retail Tata Tea Subsidiaries /Associates/ Joint Ventures:Tata Coffee, Tata Tetley,

Tata Tea Inc Tata Ceramics Tata McGraw Hill Publishing Company Titan Industries Trent

INFORMATION SYSTEMS AND COMMUNICATIONS: Nelito Systems

Tata Consultancy Services

Subsidiaries /Associates/ Joint Ventures:APONLINE, Airline FinancialSupport Services, Aviation Software Development Consultancy, CMC,CMC Americas Inc, Conscripti, HOTV, Tata America InternationalCorporation, WTI Advance Technology.

Tata Elxsi

SerWizSol

Tata Interactive Systems

Tata Technologies

COMMUNICATIONS Tata Sky

Tata Teleservices Subsidiaries /Associates/ Joint Ventures:TataTeleservices (Maharashtra)

Tata Communication

Tata NetINDUSTRIAL AUTOMATION

Nelco

Subsidiaries /Associates/ Joint Ventures:Tatanet


19/108

TATA MOTORS LIMITEDThe largest passenger automobile and commercial vehicle manufacturingcompany of India Tata Motors Limited, was formerly called TELCO (TATAEngineering and Locomotive Company), has its headquarters in Bombay,now Mumbai, India. Established in 1945, listed on the New York StockExchange in 2004 has created Rs. 320 billion wealth and was one of the top10 wealth creators in India, With manufacturing facilities in the towns ofJamshedpur, Lucknow, and Pune. This company was founded by Jamshetji

Tata and is run by Ratan Tata under the flagship company known as Tataand sons group. He commands 22000 employees working in three plants aswell as other regional and zonal offices across the length and breadth ofIndia. Tata motors passenger cars still need to reach acceptableinternational requirements. Thecompany commands an imposing 65% share of the domestic commercialvehicle market and is trying to modernize this segment. The financialbusiness of Tata motors was separated into a subsidiary company in sep.2006, where it recorded a strong financial performance during the last 5year period. From year 2003-2007, the profits of the company went up at aCAGR of 36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731Million in 2003. By floating two rights issues at the end of Sep 2008 TataMotors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinaryshare valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores,the so called A share would have different voting and dividend rights, forevery such 6 shares held at a face value of 305 would raise Rs. 1.960Crores, these proceed would be utilized for an early repayment of the shortterm funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition ofjaguar and Land Rover from their principle The Ford Motor Companys. Itis also in talks with private equity funds to offload 25% of stake in each ofthe following 6 unlisted group units, they are Tata Daewoo commercial

vehicle company, HV transmissions, Tata motors finance, Tata technologiesand TELCO construction equipment, thesales of the stakes would possible conclude by June 2009, helping it to raisefurther funds for this acquisition, earlier in July it sold 24% stake in anAuto component unit to a group firm and booked a profit of Rs. 110 crores,it also sold 10 million shares or 1.36% of Tata steel for RS. 486 crores toTata Sons, the holding company of whole Tata group firms. "The Companyaims to monetize a part of its funds through a phased divestment of certaininvestments preferably as inter-group sales wherever possible at currentmarket prices in the coming six to eight months," the money that will bereleased from these investments will become a part of the capital to be lifted

for repayment of the bridging loan taken for the Jaguar- Land Rover


20/108

acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 monthbridge loan of 3 billion in March from a consortium of banks tofinance the JLR accusation and its expansion plans Since the rights issuewas announced on 28th may its share value has fallen more than 30% andfell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index

gained 3.8% to end at 15, 049.86 points.

The Analysts say that, this is a strategic move taken by Tata Motors becauseit is allowing the company to make a lot of profit even when the market is inthe financial pressure allows Tata sons to raise its wager in groupcompanies.If the company will follow the above mentioned trends then possibly it canraise its finances in a low liquidity and high interest rate set-up.


21/108

INDUSTRY OUTLOOKThe Indian Automobile Industry enjoys the advantage of low cost base, highskilled labour, strong ancillary network coupled with Governments supportby way of concessional excise duty of 16% for small cars, ban on overloading

and also significant investments proposed for removing infrastructurebottlenecks. The CV industry is directly related to the economic growth anddevelopment. The growth in demand for CVs is directly related to the IIPindex and any upsurge in economic activities will call for more cargomovement in the economy. The domestic CV market grew at a CAGR of26.7% during the last 6 years. In FY07, the CV segment registered a growthof 32.2% due to Supreme Courts ban on over loading trucks. However, webelieve that this is a one-time demand and the CV segment may not witnesssuch kind of growth repeatedly. There is a regulation that restricts themovement of vehicles above certain age (15 years in National Capital Regionand 8 years in Mumbai). Though the rule is not being followed strictly at

present, in future if this rule is implemented strictly it will result in hugereplacement demand. With the Indian economy expected to grow at 8.5% to9% in coming years, we expect the demand for CVs to be fairly decent exceptfor the fact that the industry is currently experiencing a correction due tosharp spurt in demand in the previous years. The CV industry witnessed achange in demand dynamics in last few years. The demand for LCVs in the35.2 tonnes is witnessing a surge while demand forsemi-trailers in 26.4 to 35.2 tonnes segment is suffering. This structuralshift in demand dynamics is due to the evolution of Hub & Spoke model ofdistribution, which is now adopted by transportation players because ofimproved road infrastructure and also the ban on trucks in many cities bythe authorities to tackle the traffic congestion issues. According to theHub & Spoke model, HCVs plying over the highways to transport goods todifferent states and districts, while MCVs are used in distributing goods todifferent cities and the last leg of distribution in intra city is done by using


22/108


23/108

History


24/108

History of TATA Motors

Tata Motors is a part of the Tata and Sons Group, founded by JamshedjiNussarwanji Tata and J. Baker. The company was established in 1945 as alocomotive manufacturing unit and later expanded its operations tocommercial vehicle sector in 1954 after forming a joint venture withDaimler-Benz AG of Germany.

3. TATA IndicaAfter years of dominating the commercial vehicle market in India, Tata

Motors entered the passenger vehicle market in 1991 by launching the TataSierra, a multi utility vehicle. After thelaunch of three more vehicles,TataEstate (1992, a stationwagon design based on the earlier 'TataMobile' (1989),a light commercial vehicle),Tata Sumo (LCV, 1994) and Tata Safari (1998,India's first sports utility vehicle). Tata launched the Indica in 1998, the firstfully indigenous passenger car of India. Though the car was initially pannedby auto-analysts, the car's excellent fuel economy, powerful engine andaggressive marketing strategy made it one of the best selling cars in thehistory of the Indian automobile industry. A newer version of the car, namedIndica V2, was a major improvement over the previous version and quicklybecame a mass-favourite. A badge engineered version of the car was sold in

the United Kingdom as the Rover CityRover. Tata Motors also successfully


25/108

exported large quantities of the car to South Africa.The success o Indica inmany ways marked the rise of Tata Motors.

3. TATA Brads

DAEWOO ACQUISITIONTata Novus is one of the best selling commercial trucks in South Korea.With the success of Tata Indica, Tata Motors aimed to increase its presenceworldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company ofSouth Korea. The reasons behind the acquisition were:

Companys global plans to reduce domestic exposure. The domesticcommercial vehicle market is highly cyclical in nature and prone tofluctuations in the domestic economy.

Tata Motors has a high domestic exposure of ~94% in the MHCV segmentand ~84% in the light commercial vehicle (LCV) segment. Since the domesticcommercial vehicle sales of the company are at the mercy of the structuraleconomic factors, it is increasingly looking at the international markets. Thecompany plans to diversify into various markets across the world in bothMHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MTGVW Tata Novus from Daewoos (South Korea) (TDCV) platform. Tata plansto leverage on the strong presence of TDCV in the heavy-tonnage range andintroduce products in India at an appropriate time. This was mainly to cater

to the international market and also to cater to the domestic market where a


26/108

major improvement in the Road infrastructure was done through theNational Highway Development Project

Tata remains India's largest heavy commercial vehicle manufacturer andTata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in

South Korea. Tata Motors has jointly worked with Tata Daewoo to developtrucks such as Novus and World Truck and buses namely, GloBus andStarBus.

HISPANO CARROCERAHispano Divo at the 2008 FIAA in Madrid In 2005, sensing the hugeopportunity in the fully built bus segment, Tata Motors becameacquired

21% stake in Hispano Carrocera SA, Aragonese bus manufacturingcompany giving itcontrolling rights of the company.


27/108

Hispano Divo at the 2008 FIAA in Madrid

JAGUAR CARS AND LAND ROVER

After the acquisition of BritishJaguar Land Rover (JLR) business, whichalso includes the Rover, Daimler and Lanchester brand names Tata Motorsbecame a major player in the international automobile market.Jaguar XF Land Rover's Range Rover On 27 March 2008, Tata Motorsreached an agreement with Ford to purchase their Jaguar and Land Roveroperations for US$2 billion. The sale was completed on 2 June 2008 Tatahas gained the rights to the Daimler, Lanchester, and Rover brand names.In addition to the brands, Tata Motors has also gained access to 2 designcenters and 3 plants in UK. The key acquisition would be of the intellectualproperty rights related to the technologies.


28/108

JOINT VENTURESTata MarcoPolo released this low-floor bus in India and now it is widely used as

public transport

In 2005, sensing the huge opportunity in the fully built bus segment,Tata Motors acquired 21% stake in Hispano Carrocera SA, Aragonesebus manufacturing company and introduced its highend inter-citybuses in the country.

Tata Motors has also formed a 51:49 joint venture with MarcopoloS.A., a Brazil-based global leader, lead by Brian Behrle, in bus bodybuilding. This joint venture is to manufacture and assemble fully-built

buses and coaches targeted at developing mass rapid transportationsystems.

The joint venture will absorb technology and expertise in chassis andaggregates from Tata Motors, and Marcopolo will provide know-how inprocesses and systems for bodybuilding and bus body design.


29/108

IMPORTANT DEVELOPMENTS

In 2005 & 06

Tata Ace was India's first mini truck

Tata Ace, India's first indigenously developed sub-one ton mini-truck, waslaunched in May 2005. The mini-truck was a huge success in India withauto-analysts claiming that Ace had changed the dynamics of the lightcommercial vehicle (LCV) market in the country by creating a new marketsegment termed the small commercial vehicle (SCV) segment. Ace rapidlyemerged as the first choice for transporters and single truck owners for cityand rural transport. By October 2005, LCV sales of Tata Motors had grownby 36.6 percent to 28,537 units due to the rising demand for Ace. The Acewas built with a load body produced by Autoline Industries.By 2005;Autoline was producing 300 load bodies per day for Tata Motors. Ace is stillone of the number makers for TML, TML sold the 2,00,000th Ace in August2008, within 4 years since its introduction. Tata Ace has also been exportedto several European, South American and African countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcarsdivision.

In 2007

In 2007, Tata Motors launched several concept models and future designs ofexisting models. It also formed joint ventures with various local companiesin several countries to assemble Tata cars. Tata Motors launched a re-


30/108

designed version of Tata Xenon TL during Motor Show Bologna which wouldbe assembled in Thailand and Argentina. A pick-up variant of Tata Sumowas also launched under the program 'Global Pick-Up'. The company plansto launch the new pick-up model in India, Southeast Asia, Europe, SouthAfrica, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of

Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiatsdiesel engine technology. Tata Motors is looking to extend its relationshipwith Fiat and Iveco to other segments like the 'Global Pick-Up' program. Thelaunch of the 'Global Pick-Up' will mark the entry of the company intodeveloped markets like Europe and the United States. The project wasinitially collaboration between Tata Motors and its subsidiary Tata DaewooCommercial Vehicles, but later Tata Motors decided to work with Iveco asDaewoos design was not in sync with the needs of sophisticated European

customers. The company has formed a joint venture with ThailandsThonburi Company, an independent auto assembler, in which Tata Motorswill hold a 70% stake.

In 2008

COMPRESSED AIR CAR


31/108

Motor Development International ofLuxembourg has developed the world'sfirst prototype of a compressed air car, named OneCAT. In 2007, MDI ownerGuy Negre was reported to have "the backing of Tata".

It has air tanks that can be filled in 4 hours by plugging the car into astandard electrical plug. In 2008 MDI planned to also design a gas stationcompressor, which would fill the tanks in 3 minutes. There are no gasolinecosts and no fossil fuel emissions from the vehicle when run in town, but"the compressed air driving the pistons can be boosted by a fuel burner".

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With fulltanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range inurban cycle. It is actually a dual fuel car but it is more efficient than anypresent Hybrid cars.

IN 2009 AND ONWARDS

Electric vehicles

Tata Motors unveiled the electric versions of passenger carTata Indica andcommercial vehicleTata Ace. Both run on lithium batteries. The companyhas indicated that the electric Indica would be launched locally in India inabout 2010, without disclosing the price. The vehicle would be launched inNorway in 2009.

Tata Motors' UK subsidiary,Tata Motors European Technical Centre, hasbought a 50.3% holding in electric vehicle technology firm MiljbilGrenland/Innovasjon of Norway for US$1.93 M, which specialises in thedevelopment of innovative solutions for electric vehicles, and plans to launchthe electric Indica hatchback in Europe next year.

GLOBAL OPERATIONSTata Motors has been aggressively acquiring foreign brands to increase itsglobal presence. Tata Motors has operations in the UK, South Korea,Thailand and Spain. Among them is Jaguar Land Rover, a business

comprising the two iconic British brands that was acquired in2008. Tata Motors has also acquired from Ford the rights to three otherbrand names: Daimler, Lanchester and Rover. In 2004, it acquired theDaewoo Commercial Vehicles Company, South Koreas second largest truckmaker.The rechristened Tata Daewoo Commercial Vehicles Company has launchedseveral new products in the Korean market, while also exporting theseproducts to several international markets. Today two-thirds of heavycommercial vehicle exports out of South Korea are from Tata Daewoo.

In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputedSpanish bus and coach manufacturer, giving it controlling rights of the


32/108

company. Hispanos presence is being expanded in other markets. On Tata'sjourney to make an international foot print, it continued its expansionthrough the introduction of new products into the market range of buses(Starbus & Globus) as well as trucks (Novus). These models were jointlydeveloped with its subsidiaries Tata Daewoo and Hispano Carrocera. In May,

2009 Tata unveiled the Tata World Truck range jointly developed with TataDaewoo. They will debut in South Korea, South Africa, the SAARC countriesand the Middle-East by the end of 2009. In 2006, it formed a joint venturewith the Brazil-based Marcopolo, a global leader in body-building for busesand coaches to manufacture fully-built buses and coaches for India andselect international markets. Tata Motors has expanded its production andassembly operations to several other countries including South Korea,Thailand, South Africa and Argentina and is planning to set up plants inTurkey, Indonesia and Eastern Europe.

Tata also franchisee/joint venture assembly operations in Kenya,Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26countries across 4 continents. Though Tata is present in many counties ithas only managed to create a large consumer base in the IndianSubcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal andhas a growing consumer base in Italy, Spain and South Africa.

The Government of India announced an automobile policy in December1997. The policy required majority-owned subsidiaries of foreign car firms toinvest at least US$50 million in equity if they wished to set upmanufacturing projects in India. It also forced them to take on export

obligations to fund their auto part imports and required them to submit to aschedule for increasing the share of locally made parts in their cars. Merecar assembling operations were notwelcomed. An Indian cabinet panel will soon consider a new automobilepolicy that aims to set fresh investment guidelines for foreign firms wishingto manufacture vehicles in the country.

Investments in making auto parts by a foreign vehicle maker will also beconsidered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as ahub for global manufacturing and sourcing for auto parts. The policy sets anexport target of $1 billion by 2005 and US$2.7 billion by 2010.The policies adopted by Government will increase competition in domesticmarket, motivate many foreign commercial vehicle manufactures to set upshops in India, whom will make India as a production hub and export tonearest market. Thus Tata Motors CV will have to face tough competition innear future, which might affect its growth negatively.

The purchase of Jaguar Cars is expected to help give Tata Motors a footholdin

European and American markets. With the unveiling of Tata Elegante


33/108

during Geneva Motor Show, Tata Motors revealed its intention to enter thesedan and sports car markets. Tata Indica assembled inThailandand Argentina. Tata Prima The Luxury Sedan was designed by Pininfrinaand has marked the entry of Tata into the international sedan market. Thecar is to be sold in India by 2013 and around the world by 2015

Tata Motors has expanded its production and assembly operations toseveral other countries including South Korea, Thailand, South Africa andArgentina and is planning to set up plants in Turkey, Indonesia and EasternEurope.

MILESTONES

1945 Tata Engineering and Locomotive Co. Ltd. was established to

manufacture locomotives and other engineering products.1948

Steam road roller introduced in collaboration with Marshall Sons (UK).1954

Collaboration with Daimler Benz AG, West Germany, for manufactureof

medium commercial vehicles. The first vehicle rolled out within 6months of the contract.

1959

Research and Development Centre set up at Jamshedpur.1977

First commercial vehicle manufactured in Pune.1983

Manufacture ofHeavy Commercial Vehicle commences.1985

First hydraulic excavator produced with Hitachi collaboration.1986

Production offirst light commercial vehicle, Tata 407, indigenouslydesigned, followed by Tata 608.

1991 Launch of the 1st indigenous passenger car Tata Sierra. One millionth vehicle rolled out.

1994Launch ofTata Sumo - the multi utility vehicle.1995

Mercedes Benz car E220 launched.1996

Tata Sumo deluxe launched.1997

Tata Sierra Turbo launched.1998


34/108

Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicles rolled out. Indica, India's first fully indigenous passenger car launched.

2001

Indica V2 launched - 2nd generation Indica.100,000th Indica wheeled out.

Launch of theTata Safari EX

2002

2,00,000th Indica rolled out. Launch of theTata Sumo'+' Series Launch of theTata Indigo.

Tata Engineering signed a product agreement with MG Rover of theUK.

2003

On 29th July, J. R. D. Tata's birth anniversary, Tata Engineeringbecomes Tata Motors Limited.

3 millionth vehicle produced. First CityRover rolled out

2004

Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement and completes acquisition of Daewoo Commercial Vehicle

Company Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy

duty truck 'NOVUS' , in Korea Sumo Victa launched Indigo Marina launched Tata Motors lists on the NYSE

2005

Tata Motors rolls out the 500,000th Passenger Car from its Car PlantFacility in Pune

TheTata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches - Starbus and Globus - launched Tata Ace, India's first mini truck launched The power packed Safari Dicor is launched Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced and sold Inauguration of new factory atJamshedpur for Novus Launch ofTata Novus Launch of Novus range of medium trucks in Korea, by Tata Daewoo

Commercial Vehicle Co. (TDCV)


35/108

2006

Tata Motors vehicle sales in India cross four million mark Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors first plant for small car to come up in West Bengal Tata Motors and Fiat Group announce three additional cooperation

agreements

2007

Construction of Small Car plant at Singur, West Bengal, begins onJanuary 21

New 2007 Indica V2 range is launched Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi),

announce formation of ajoint venture company in Thailand to

manufacture, assemble and market pickup trucks. Roll out of100,000th Ace Tata-Fiat plant at Ranjangaon inaugurated Launch of a new Upgraded range of its entry level utility vehicle

offering, theTata Spacio. Launch of Magic, a comfortable, safe, four-wheeler public

transportation mode,mdeveloped on the Ace platform Launch ofWinger, Indias only maxi-van Fiat Group and Tata Motors announce establishment of Joint Venture

in India

Launch of the Sumo Victa Turbo DI, the new upgraded range of itsentry-level utility vehicle, the Sumo SpacioTata Motors launchesIndica V2 Turbo with dual airbags and ABS

Launch of new Safari DICOR 2.2 VTTrange, powered by a new 2.2 LDirect

Injection Common Rail (DICOR) engine. Rollout of the one millionth passenger car off the Indica platform.

2008

Latest common rail diesel offering- the Indica V2 DICOR, launched. Indigo CS (Compact Sedan), worlds first sub four-metre sedan,

launched. Launch of the new Sumo -- Sumo Grande, which combines the looks

of an SUV with the comforts of a family car. Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo. Xenon, 1-tonne pick-up truck, launched in Thailand. Tata Motors signs definitive agreement with Ford Motor Company to

purchase Jaguar and Land Rover. Tata Motors completes acquisition of Jaguar Land Rover. Tata Motors introduces new Super Milo range of buses. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The

III Commonwealth Youth Games Pune 2008. Indica Vistathe second generation Indica, is launched.


36/108

Tata Motors launches passenger cars and the new pick-up in D.R.Congo.

2009Tata Nano is launched.


37/108

Products of TATA

Motors


38/108

[1] Passenger cars and utility vehicles


39/108

Tata Sierra

Tata Estate

Tata Sumo/ Spacio

Tata Indica

Tata Indigo

Tata Indigo Marina

Tata Winger

Tata Nano

Tata Xenon XT

Tata Xover

[2] Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indica


40/108

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Prima

[3] Commercial vehicles

Tata Ace

Tata TL/ Telcoline /207 DI Pickup Truck

Tata 407 Ex and Ex2


41/108

Tata 709 Ex

Tata 809 Ex and Ex2

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1510/1512 (Medium bus)

Tata 1610/1616 (Heavy bus)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Globus (Low Floor Bus)

Tata Marcopolo Bus (Low Floor Bus)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)




42/108

Tata LPTA 1615 T

MARKETINGSTRATEGIES


43/108

LAUNCH OF TATA NaNo

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh

after tax) for the masses and they call it The Peoples Car. Its a sweetlooking small car, just enough to take four people around the city. 1 Lakhrupees roughly translate to 2500 rupees monthly instalment and because ofthis reason TATA is expect to sell record breaking numbers and leave Indianroads blocked.

Following TATA Nano car specs in comparison with Maruti 800:

Overall Length of Nano is 3100 MM which is 7% shorter than Maruti800

Overall Breadth of Nano is 1500MM which is 4% Wider than Maruti800

Overall Height of Nano is 1600MM which is 14% Taller than Maruti800

Overall inside Space of Nano is 21% Bigger than Maruti 800


44/108

Engine Capacity 623CC 2 Cylinders, Maruthi 800s got 3 Cylinders

Power 33BHP, less than Maruthi 800

Top Speed: 120 Kmph Top Speed Lower Than Maruti 800

Fuel efficiency is 20 Kmpl just as Maruti 800

TATA Nano will hit the roads and as it is a definite threat to Maruti 800.TATA stated that the initial production of this car will be of250,000 a year.After about four years of hard effortsTATA Nano (1 lakh rupee car) was onroad now.

The introduction of the Nano received media attention due to its targeted lowprice. The car is expected to boost the Indian economy, create

entrepreneurial-opportunities across India, as well as expand the Indian carmarket by 65%. The car was envisioned by Ratan Tata, Chairman of theTata Group andTata Motors, who has described it as an eco-friendly"people's car". Nano has been greatly appreciated by many sources and themedia for its low-cost and eco-friendly initiatives which include usingcompressed-air as fuel and an electric-version (E-Nano).Tata Group isexpected to massmanufacture the Nano, particularly the electric-version,and, besides selling them in India, to also export them worldwide.

Critics of the car have questioned its safety in India (where reportedly90,000 people are killed in road-accidents every year), and have also

criticised the pollution that it would cause (including criticism by NobelPeace Prize winner Rajendra Pachauri). However,Tata Motors has promisedthat it would definitely release Nano's eco-friendly models alongside thegasolinemodel.The Nano was originally to have been manufactured at a new factory inSingur, West Bengal, but increasingly violent protests forced Tata to pull outOctober 2008. Currently, TataMotors is reportedly manufacturing Nano atits existing Pantnagar (Uttarakhand) plant and amother plant has beenproposed for Sanand Gujarat. The company will bank on existing dealernetwork for Nano initially. The new Nano Plant could have a capacity of

500,000 units,compared to 300,000 for Singur. Gujarat has also agreed tomatch all the incentives offered byWest Bengal government.

The Tata Nano is a rear-engined, four-passenger city car built byTataMotors, aimed primarily at the Indian market. The car is very fuel efficient,achieving around 26.00km/l on the highway and around 22.00km/l in thecity. It was first presented at the 9th annual Auto Expo on January 10,2008, at Pragati Maidan in New Delhi. Nano had a commercial launch onMarch 23, 2009 and a booking period from April 9 to April 25, generatingmore than 200,000 bookings forthe car. The sales of the car begin in July 2009, with a starting price of Rs

115,000 (rupees). This is cheaper than the Maruti 800, its main competitorand next cheapest Indian car priced at 184,641Rupees.


45/108

2. Modification in TATA SumoTATA Sumo

The Toyota Qualis and now competes with Chevrolet Tavera. The

discontinuation of Qualis to launch the Toyota Innova proved advantageousto Tata Sumo. The Sumo has seen a series of changes in terms of refinementin this decade. It has been the favorite choice for cab owners, as it is ruggedand affordable.The Tata Sumo has been enjoying its position in the MUV market since1994. It had stiff competition with new Sumo Victa has been portrayed as afamily lifestyle vehicle, but in fact is a carryover of the old Sumo, with somecosmetic changes. The Sumo comes in nine Victa variants:CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9Str, EX 10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants,except the Victa DI variants, are powered by a 2- litre Inline-4 diesel engine.The GX and GX TC variants get a 2-litre turbocharged diesel engine that


46/108

generates 89 bhp. The Victa DI variants get a 3-litre turbocharged dieselengine. Refinement, both internal and external, is evident across thevariants. Tata's latest three variants under the 'Sumo Grande' category areLX, EX and GX available in 2-seater, 7- seater and 8-seater configurations.Sumo Grande boasts of a powerful 2.2-L Direct Injection Common Rail

(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available. It is equipped witha 3000 cc DI diesel engine sourced from the popular LCV Tata 407. Theprominent visual difference was the presence of round headlamps instead ofthe rectangular lamps. A soft top version of the Spacio called the Spacio STwas also introduced for the rural markets. After the facelift, the Spacioinherited the styling elements of the older Tata Sumo. In 2007, the Victa

became available with the Spacio's 3000 cc engine. And in terms of styling,the positioning of the spare wheel was changed from the rear tailgate to theunderbody of the vehicle. This model comes in 8 and 10 seater variants andis very much popular with private transporters & contract taxi vendorsbecause of its lower cost.

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows, powersteering, dual AC, central locking, clear lens multi reflector head lamps,crystal finish tail lamp cluster, anti glare ORVMS with electronic control,remote keyless entry, tachometers, LCD monitors, voice warnings, multipletrip odometers are all either standard or available options.

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande onJanuary 10, 2008 powered with a newgeneration 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct InjectionCommon Rail) engine. It is the most up market version of the Sumoavailable and features completely different body work. It lies below theTataSafari in Tata's product portfolio.


47/108

Tata launched the Sumo Grande onJanuary 10, 2008 powered with a newgeneration 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct InjectionCommon Rail) engine. It is the most up market version of the Sumoavailable and features completely different body work. It lies below theTataSafari in Tata's product portfolio.

3.New Version of Indigo, Indigo Dicor

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in twovariants which has already hit the bull's eyes. The beefy & bony structured


48/108

sedan has the capacity to deliver maximum torque of 140Nm @ 1800 - 3000rpm. The Indigo Dicor from Tata Motors has been made apt for Indian roadsespecially with its driver & co passengers oriented positive attributessuch as:

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3: with headrest mounted LCD screens 1.4-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated withchrome strip outer rear view window, black dials with chrome rings & starcheck as the new pattern for its console & AC fascia.

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror,black dials, & Benz silver as the new pattern for console & AC fascia. It hasno mounted LCD screens.


49/108

4. TAPPING OF RURAL MARKETS

According to the National Council for Applied Economic Research, orNCAER, rural India accounts for 70% of Indias population, 56% of thenational income, 64% of the total expenditure and one-third of thetotal savings. So, the difficulties faced in cracking these markets palebefore the huge potential they offer a company. Of the total sales (ofconsumer goods), around 55% come from rural India, and goingahead, the contribution is likely to grow. NCAER data suggests that inreal terms, at 1999 prices, the size of the rural economy will be aboutRs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The

share of non-farm income will be about two-thirds of the ruraleconomy by 2012-13.Noticing this huge potential Tata motors now plans to tap the ruralmarket, 60 per cent of which runs on cash. Tata motors ltd. is workingon strategies to make inroads into these markets.


50/108

SWOT AnalysisTata Motors

Limited


51/108

SWOTStrengths, Weaknesses, Opportunities,Threat

Strengths

The internationalization strategy so far has been to keep localmanagers in new acquisitions, and to only transplant a couple ofsenior managers from India into the new market. The benefit is thatTata has been able to exchange expertise. For example after theDaewoo acquisition the Indian company leaned work discipline andhow to get thefinal product 'right first time.'

The company has a strategy in place for the next stage of itsexpansion. Not only is it focusing upon new products and

acquisitions, but it also has a programme of intensive managementdevelopment in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian massproducer Fiat since 2006. This has enhanced the product portfolio forTata and Fiat in terms of production and knowledge exchange. Forexample, the Fiat Palio Style was launched by Tata in 2007, and thecompanies have an agreement to build a pick-up targeted at Centraland South America.

WeaknessThe company's passenger car products are based upon 3rd and 4thgeneration platforms, which put Tata Motors Limited at a disadvantage withcompeting car manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunitiesbelow); Tata has not got a foothold in the luxury car segment in itsdomestic, Indian market. Is the brand associated with commercialvehicles and low-cost passenger cars to the extent that it has isolateditself from lucrative segments in a more aspiring India?

One weakness which is often not recognised is that in English theword 'tat' means rubbish. Would the brand sensitive British consumerever buy into such a brand? Maybe not, but they would buy into Fiat,Jaguar and Land Rover.

Oppurtunities

In the summer of 2008 Tata Motor's announced that it hadsuccessfully purchased the Land Rover and Jaguar brands from Ford


52/108

Motors for UK 2.3 million. Two of the World's luxury car brand havebeen added to its portfolio of brands, and will undoubtedly off thecompany the chance to market vehicles in the luxury segments.

Tata Motors Limited acquired Daewoo Motor's Commercial vehiclebusiness in 2004 for around USD $16 million.

Nano is the cheapest car in the World - retailing at little more than amotorbike. Whilst the World is getting ready for greener alternatives togas-guzzlers, is the Nano the answer in terms of concept or brand?Incidentally, the new Land Rover and Jaguar models will cost up to 85times more than a standard Nano!

The new global track platform is about to be launched from its Korean(previously Daewoo) plant. Again, at a time when the World is lookingfor environmentally friendly transport alternatives, is now the right

time to move into this segment? The answer to this question (and theone above) is that new and emerging industrial nations such as India,South Korea and China will have a thirst for low-cost passenger andcommercial vehicles. These are the opportunities. However thecompany has put in place a very proactive Corporate SocialResponsibility (CSR) committee to address potential strategies thatwill make is operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutchwith booster assist and better air intakes that will reduce fuel

consumption by up to 10%.

Threat

Other competing car manufacturers have been in the passenger carbusiness for 40, 50 or more years. Therefore Tata Motors Limited hasto catch up in terms of quality and lean production.

Sustainability and environmentalism could mean extra costs for this

low-cost producer. This could impact its underpinning competitiveadvantage. Obviously, as Tata globalizes and buys into other brandsthis problem could be alleviated.

Since the company has focused upon the commercial and smallvehicle segments, it has left itself open to competition from overseascompanies for the emerging Indian luxury segments. For exampleICICI bank and DaimlerChrysler have invested in a new Punebasedplant which will build 5000 new Mercedes-Benz per annum. Otherplayers developing luxury cars targeted at the Indian market include

Ford, Honda and Toyota. In fact the entire Indian market has become


53/108

a target for other global competitors including Mahindra andMahindra, Maruti Udyog, General Motors, Ford and others.

Rising prices in the global economy could pose a threat to Tata MotorsLimited on a couple of fronts. The price of steel and aluminium is

increasing putting pressure on the costs of production. Many of Tata'sproducts run on Diesel fuel which is becoming expensive globally andwithin its traditional home market.


54/108

Research Methodlogy


55/108

Project involved

Market performance

Cost saving initiatives

Introduction about TATA Motors

Procedure followed by TATA Motors for catering to the needs andqueries of the customers


56/108

Quantitative research

Awareness regarding the facilities provided by TATA Motors.

Overall opinion about TATA Motors.

Scope of Study

To find the Market position.

For Economic and the industry environment.

This study would be useful for companies to know what peopleperceive and thinking about Tata Motors and its products.

This study would be useful to other students as a secondary data.

This study would be useful to form strategies.

Research Methodology:

The purpose of methodology is to describe the process involved in researchwork. This includes the overall research design, data collection method, thefield survey and the analysis of data.

Objective of the Study:

To know the consumer satisfaction. Market performance.

Market position.

Cost saving initiatives.

To find out the satisfaction level of people.

To find out the awareness level of customer.

To find the satisfaction amongst the customers of TATA Motors.


57/108

Sources of Data Collection:

Primary:For my survey primary data have been used as a questionnaire to collect thedata.

SECONDARY:

The secondary data has been collected from the following modes: Magazines Books Newspaper Data through internet sources

RESEARCH DESIGN:

Research Design is the arrangement for conditioned for data collection &analysis of data in a manner that aims to combined relevance to researchpurpose with economy in procedure.

A research design is a master plan or model for the conduct of formalinvestigation. It is blue print that is followed in completing study.

The research conducted by me is a descriptive research. This is descriptivein nature because study is focused on fact investigation in a well structuredfrom and is based on primary data.

RESEARCH PLAN

Type of study: For completing my study I have gone for sample studybecause looking at the size of population & the time limitation it was notconvenient for me to cover entire population. Hence, I have gone for samplestudy rather than census study.

Sampling Plan:

A sample design is a definite plan for obtaining a sample from a givenpopulation. It refers to the technique or the procedure that researcher wouldadopt in selecting items to be inched in the sample i.e. the size of sample.Sampling plan is determined before data are collected.

STEPS IN SAMPLING PLAN :


58/108

Sampling Frame:

The list of sampling units from which sample is taken is called samplingframe. Thane City map was studied thoroughly and samples were selectedfrom the place in a scattered manner to get effective result.

SAMPLING SIZE:Total sample size is 100. The following sample size according to area wise isas follows:

20 Thane Station 10 Teen Haat naaka 20 Mulund Check naka 20 Goadbunder 10 Kisan nagar 10 Lokyamanya nagar 10 Waghle Industrial Estate

SAMPLING PROCEDURE:The selection of respondents were accordingly to be in a right place at aright time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtainthe sample of convenient.

Analysis:

The important factors and datas collected were sequentially analyzedand graphed.

Limitation of the study:

This study will be limited to only some areas of Thane city ofMaharashtra

It is only for short period of time. Lack of professional approach since researcher is a student The sample size is only 100 so the sample may not be truly

representative of the Thane population.

FIELD WORK:FIELD WORK:

I have collected the data through medium called questionnaire collecting theresponses from 100 people in all. I had done my field work in the followingarea.

Thane station, Teen hath Naka, Mulund Check naka, Waghle IndustrialEstate, Kisan nagar, Lokmanya Nagar and Goadbunder road


59/108

I started my project very first educating the respondents about my entireproject, and ask them to cooperate with me. Mostly all the respondent wereaware of this type of surveys. So I didnt face any type of difficulty during myproject in the process of explaining and taking there responses on the

questionnaire.

Comparison ofTHE STANDING


60/108

TATA MOTORS

vis-vis THE

INDUSTRY


61/108

CHALLENGES

Mahindra and Mahindra: JV with ITEC, North American leader inheavy trucks. M&M has formed a 51:49 JV called Mahindra International

with ITEC, USA (parentNavistar International), to manufacture commercialvehicles and to bolster its position in the CV business.

ITEC is the leader in medium and heavy trucks and buses in North America,and is the world's largest manufacturer of medium-duty diesel engines.Mahindra International aims to have a presence across the CV market (6-35tonnes GVW) with variants of passenger transport, cargo and specialisedload applications and is likely to start producing medium/heavy commercialvehicles from FY09.

Force Motors Ltd: JV with MAN for manufacturing high-tonnagevehicles Force Motors has paired up with MAN in a 70:30 JV to manufacturehigh-tonnage and specialty vehicles, such as long-haul trucks, tippers,tractor trailers and multi-axle vehicles in the 16-32 tonne range at itsPithampur plant, with an initial capacity of 24,000 units per annum and atan investment of Rs7bn. The JV plans to sell nearly half of its production inthe domestic market, while the rest is to be exported to the Middle East,Turkey, Russia, Asia and Africa. Further, the two companies have formedanother JV to manufacture buses in India from end-2007.

Ashok Leyland: Acquisition of Czech Republic-based Avia. AshokLeyland (ALL) recently acquired the truck unit of Czech Republic-based Aviafor US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of20,000 units per annum. The acquisition has given ALL direct access to anentire range of Avia trucks, Avias press shop with dies and tools, weldinglines, state-of-the-art paint shop and R&D facilities.

ALL has also entered into technology agreements with Hino Motors of Japanand ZF of Germany to complement its in-house R&D efforts and developingcomplementary components and aggregates.

Suzuki: Suzuki through its subsidiary, Maruti Suzuki in the Indian marketmay also be alarming. Maruti has aggressively launched family cars toundermine the Tata models.


62/108

INDIAN AUTOMOTIVE PLAYERS: OVERVIEW OFTHE PLAYERS IN THE INDIAN INDUSTRY

The Indian auto industry is highly competitive with a number of global and Indianauto companies present. Hence, we have conducted an Inter company analysis of

Tata with Mahindra and Mahindra and Maruti Udyog, to get an idea of thecompanys position (operation and profitability) vis a vis its competitors.

Inter Company analysis

Key Players in the Indian auto industryPassenger Cars And CVs

The largest Player in the Indian industry. Plans to launch new andexciting productsin the Indian markets, including the 100,000 cars.

TOYOTA has vision of capturing 10% share of Indian passenger carmarket by 2010.

The third largest passenger car manufacture in India and one ofthe largest exporters of vehicles. Has establishes India as one of its manufacturingbases in the world, is planning to invest heavily to boost exports from India.

Maruti Suzukis JV in India and the largest passenger carmanufacturer in India.

One of the leading players in the Indian premium cars segment


63/108

One of the largest players in the UV/ MUV segment

One of the leading players in the Indian premium cars segment.Plans to enter the small car segment by re-launching the matiz.

The 2nd largest CV manufacturer in India.

Other global players who are in India have plans for India includesVOLVO, DAIMLER CHRYSLER, BMW and NISSAN MOTORS


64/108

THREATS WITHIN THE INDUSTRY

There are a lot of new competitions coming up in the commercial vehicles segment

which threaten the huge market share which Tata Motors has garnered. Some of

the new Joint Ventures and competitions have been listed below:

M&M has formed a 51:49 JV called Mahindra International with ITEC, USA,

(parent NAVISTAR), to manufacture commercial vehicles. ITEC is the leader

in medium and heavy trucks and buses in North America, and is the world's

largest manufacturer of medium-duty diesel engines.

Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force

Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage

and specialty vehicles. Further, the two companies have formed another JV

to manufacture buses in India from end-2007.

Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland

(ALL) recently acquired the truck unit of Czech Republic-based Avia.

Volvo, a leading manufacturer of trucks, buses, cars, construction

equipment, and aero engines has a main focus in the area of fully built

buses. In India, it has focused on providing economical transport solutions

in consonance with its values of safety, quality, and environmental care. Itstrucks are reputed for their performance and economy and are the flag

bearers in their production activities in India.

THREATS OUTSIDE THE INDUSTRY

Farmers are agitating against the land acquired by the firm in Singur for its

ambitious Rs 1, 00,000 car project. The protest is being lead by Mamta

Banerjee of the Trinamool Congress. Farmers are protesting that the land is

fertile land and the government acquired the land without their consent.

Presently this matter is lying in the court of law and is still a contentious

issue.


65/108

An Indian cabinet panel will soon consider a new automobile policy that

aims to set fresh investment guidelines for foreign firms wishing to

manufacture vehicles in the country. The policies adopted by Government

will increase competition in domestic market, motivate many foreign CV

manufactures to set up shops in India.

Increased interest rates have a potential to hit the sales. Auto loans have

become costly causing customers to defer their purchase which has

impacted the sales of Tata Motors.

The strengthening of the rupee against the dollar has made their cars less

attractive in the foreign market.


66/108


67/108

PEST Analysis of Tata motors

Political Assessment:

I- The auto policy of Government which has direct

implications on Tata Motors-

A brief overview-

Auto policy of Government of India envisions to establish a globally competitive

automotive industry in India and to double its contribution to the economy by

2010. GOI policy has rightly recognized the need for modernizing of vehicles.

The Auto Policy has spelt out the direction of growth for the auto sector in

India and addresses most concerns of the automobile sector, including-

Promotion of R&D in the automotive sector to ensure continuous technology

upgradation, building better designing capacities to remain competitive.

Impetus to Alternative Fuel Vehicles through appropriate long term fiscal

structure to facilitate their acceptance.

Emphasis on low emission fuel auto technologies and availability of

appropriate auto fuels and encouragement to construction of safer

bus/truck bodies - subjecting unorganized sector also to 16% excise duty on

body building activity.

The Foreign Direct Investment policy of India has undergone

significant liberalization. A new auto policy has been announced

which provides automatic approval for foreign equity investment up to

100% for manufacture of automobiles and components.


68/108

Effects of government policies on Tata motors -

In the past effect of Government Policy on TATA Motors CV Division Commercial

Vehicles segment sector has been at the forefront of the strong showing by the

automotive industry over the past few years. Following factors have led to growth in

sales:

The cut in excise duty that enabled manufacturers like TATA Motors to

reduce prices

The attractive financing offers and freebies enabled by low interest rate

policies by Government

The need to transport higher volumes of industrial goods

Uttarakhand plant enjoys an exemption of excise duty (otherwise 16%) for

initial 10 years

Singur plant enjoys exemption from income tax for initial 5 years

II- LABOUR REFORMS

Labour reform is a very sensitive subject in the Indian context, given the ground

realities of poverty, illiteracy, diseases, deprivation, exploitation, low per-capita

income, etc. This means that whatever is taken up in the name of labour reforms,

be it in the sphere of employment, welfare or human resources, needs careful

handling.

Tata motors view on labour reforms

The Tatas were the pioneers in introducing a number of firsts in the field of

labour welfare. The group felt that unless a workers welfare needs were met,

there would be no profits for industry and no progress for the nation. Well

ahead of any Indian legislation on this front, several benefits the eight-

hour working day, free medical aid, provident fund, gratuity, leave with pay,


69/108

maternity leave, accident compensation, etc were incorporated by the

Tatas into their workplace culture.

Consideration-

The Tatas are now considering labour reforms very carefully, with a view to

ease the social burden of their employees and at the same time preserve the

equilibrium of job security.

It is worth noting that labour reforms in India are discussed mostly in the

context of organized labour, and this constitutes merely 8 per cent of the

countrys total labour force. It shows that a majority of the labour force

exists as unorganized.

Economic Assessment:

Favorable factors:

1. High domestic demand: There is huge demand in domestic markets due to

infrastructure developments and Tata Motors is able to leverage its

knowledge of Indian market. The Indian vehicle market expanded by 23.7%

in the financial year ending in March 2007, according to data released by the

Society of Automobile Manufacturers

2. High economic growth: Indian economy has expanded by more than 9%

during the financial year ending in March 2007. This results in prosperity

and creates demand for Tata Motors products

3. Reduction in taxes: The cut in tariff on petroleum and diesel from 8 per

cent to 6 per cent will make commercial vehicles more economical


70/108

4. Tapping new markets: Tata is developing a car that aims to sell in 2008-09

for about $3,000 USD will result in huge demand and increased profitability

of the company

5. Labour cost advantage: Cost advantage as labor cost is 8-9 per cent of sales

as against 30-35 per cent of sales in developed economies. This results in

lower production cost and higher margins for Tata motors products

6. Increase in disposable income: According World Development Indicators

database, India's purchasing power parity per capita income was $3,100 in

2004.These leads to increase in disposable income and consumption.

Concerns:

1. Rupee appreciation against the dollar: The strengthening of the rupee

against the dollar has made Tata motors less attractive to export. India

witnessed appreciation in its currency of 8.35% against the dollar between

January and June 2007.

2. Increasing auto loan interest rates: Increased interest rates have a

potential to hit the sales. Auto loans have become costly causing customers

to defer their purchase which has impacted the sales of Tata Motors.Interestrates on car loans have witnessed a surge of at least 3.0 percent points from

December 2005 to June 2007

3. Spiraling inflation: Rising materials and labour cost due to inflation

increases manufacturing cost. Therefore profitability reduces. According

Reserve Bank of India, Inflation on a year-on-year basis, is 5.9% at end-

March 2007

4. Globalization :

Competition in foreign markets by M & M and Ashok Leyland

Competition in Indian market by Hyundai and Volvo


71/108

Social Assessment:

Favorable factors:

1) Employment Generation: It employs a total of approximately 22349 people

according to March 31st2007. Its the largest automobile company in India.

2) Attitude to Work:The employees at People committed to the five integral valuesthat are the keystones of Tata Motors policies a) Integrity b) Excellence c)

Understanding d) Unity e) Responsibility. This results in greater productivity and

more revenue for the company.

3) Environmental Responsibility: Tata Motors has led the Indian automobile

industry's anti-pollution efforts through a series of initiatives in effluent and

emission control. The company introduced emission control engines in its vehicles

in India before the norm was made statutory. All its products meet required

emission standards in the relevant geographies. Modern effluent treatment

facilities, soil and water conservation programs and tree plantation drives at its

plant locations contribute to the protection of the environment and the creation of

green belts.

4) Social Image:Tata Motors has bagged a number of awards in certain categories

which show that the societys image of it is very favorable.

a) Tata Motors has been chosen as India's Most Trusted Brand in cars in a Readers

Digest-AC Nielsen consumer survey in 2006.


72/108

b) Tata Motors' mini-truck, Ace, which has created an all-new category in the

commercial vehicles market, received the BBC-Top Gear' Design of the Year 2006.

The company's Starbus low-floor city bus and the Novus heavy truck were

adjudged second and third respectively.

c) For the second consecutive year, Tata Motors was rated by Auto Monitor as the

'Commercial Vehicle Manufacturer of the Year' for 2006.

d) The Commercial Vehicle Business Unit won the CII-Exim Bank Award for 2005

for Business Excellence, for being a role model of excellence in management. Theaward particularly recognises excellence in the management of quality as a

fundamental process.

e) The two divisions of the company also won the Tata Group's JRD QV Awards for

Business Excellence in 2005.

f) The Jamshedpur plant and the car plant at Pune received the Union Ministry of

Power's National Energy Conservation

project on tata motors's passenger car

Documents