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A REPORT ON TATA MAGIC MAHINDDRA And Mahindra

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Report submitted in partial fulfillment for the requirements of

Post Graduate Diploma in Management

MAHINDRA AND MAHINDARA

2010

PROJECT REPORT ON TATA MAGIC

MAHINDRA AND MAHINDRA

S T A R P L A Z A , 3 R D F L O O R , E - 5 6 A R E R A C O L O N Y V I T T H A L M A R K E T , B H O P A L

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Contents page Introduction.....……………………………………………………………. . 5 Company overview…..……………………………………………. 6 Core values.………………………………………………………………………... 9 Vision and Mission…………………………………………………………………….10 About TATA MAGIC ……………………………………………….………..……….….11

Data collection………………………………………………………………………. 13

Questionnaire………………………………………..………………………………..15 Data Analysis….. ………………………………………………….…………………. 16 SWOT Analysis of TATA MAGIC……………………………….…………………. 26 FINDING AND SUGGACTION…………………………………………………………..28

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INTRODUCTION

The Project assigned to me was ―MARKET RESERCH ON TATA MAGIC‖ The study will help me to know about what is the reason behind to success of Tata

magic, to know the reason of how Tata Magic sales increase per year

The study is scheduled through primary data and other information thereby preparing

Questionnaire, which focus of various variables, and attributes that are important to

know the satisfaction level and the factors affecting the purchase decision.

The survey caused in the BHOPAL & INDORE Dist with the sample size of 140.The

collected data are tabulated and analyzed data and all suggestions are given according

to the analyzed data graphs and charts are used to illustrate the statistical data and

findings

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COMPANY OVERVIEW

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States

of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of

the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a

vehicle that had proved its invincibility on the battlefields of World War II be ideal for

India's rugged terrain and its kutcha rural roads?

Swift action followed this thought. The Mahindra brothers joined hands with a

distinguished gentleman called Ghulam Mohammed & on October 2nd, 1945, Mahindra

& Mohammed was set up as a franchise for assembling Jeeps from Willys, USA.

Two years later, India became an independent nation and Mahindra & Mohammed

changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan

post-partition and became the first Finance Minister of Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved

into a Group that occupies a premier position in almost all key sectors of the economy.

The Group's history is studded with milestones. Each one taking the Group forward. In

fact, today, its total turnover is about 6.3 billion dollars.

Mahindra & Mahindra made the first indigenous Jeep in the country in 1949. Their

innovative spirit also showed during the days when the Company was the leading

importer of steel in the country. J.C. & K.C. Mahindra had to persuade the Indian

Government to buy French rails for the fledgling Indian Railways because they felt that

the British specifications were obsolete and not the best suited. To convince

government officials of the superiority of the French product, they laid down a short

length of rail line with French rails and invited the government authorities for a ride.

During the journey, chilled champagne was served in glasses filled to the brim. Legend

has it that the train raced along, but not a single drop of champagne was spilled, so

smooth were the French rails. Needless to say, they made their point.

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Automotive sector: - The Mahindra Group‘s Automotive Sector is in the business of

manufacturing and marketing utility vehicles and light commercial vehicles, including

three-wheelers. It is the market leader in utility vehicles in India since inception, and

currently accounts for about half of India‘s market for utility vehicles.

Over the years, the Group has developed a large product portfolio catering to a diverse

customer base spanning rural and semi-urban customers, defense requirements and

luxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-

class sports utility vehicle-Scorpio, which bridges the gap between style and adventure,

luxury and ruggedness, and performance and economy.

The Automotive Sector continues to be a leader in the utility vehicle segment with a

diverse portfolio that includes mass transport as well as new generation vehicles like

Scorpio, Bolero and Xylo.

Mahindra has recently launched the Xylo, perhaps the most complete car with luxury

comforts to enter the Indian market with everything that today‘s sedans offer and much

more. Available at 57 select Mahindra dealerships in January and another 44

dealerships from February, the XYLO price range starts at Rs. 6, 24,500.

In February 2005, Mahindra & Mahindra and Renault decided to join forces to produce

and commercialize the Logan in India.

The joint venture is a 51:49 partnership between Mahindra & Mahindra and Renault.

The state-of-the-art Logan facility in Nasik offers a body shop, stamping shop, a paint

shop with a top quality pre-treatment and an assembly line specific for the Logan.

PRODUCTS- LOGAN

Logan was launched in India in 2007 with the concept to challenge the ―price Value‖

equation existing in the midsize car category. Soon it became one of the most

successful car in the midsize category and now is synonymous to comfort and

performance. The Logan drives in loads of refinement in comfort, style and technology.

Built around the Renault‘s famous Space Optimization Design, it redefines space and

luxury. With the widest backseat, maximum legroom and 3 separate headrests, it makes

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sure even the third passenger enjoys the drive as much. Logan is one of the safest

drives on the road. It‘s geared to protect you with a honeycomb dashboard and the front

unit that‘s designed to resist even a head-on impact.

Mahindra & Mahindra‘s foray into the three wheeler segment with Alpha and Champion

has also made it a leader in its category.

Presenting India's first compact truck GIO. A truck that‘s built to save for you. It gives

an unmatched mileage of 27 kmpl and scores really low on maintenance. Its 0.5 ton,

compact truck box ensures maximum space is utilized in intra city operations.

All this, and a range of other features, comes at a price for which you won‘t have to

spend your life‘s entire savings.

Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between Mahindra &

Mahindra Limited and International Truck and Engine Corporation, will manufacture

trucks and buses for India and export markets. It will also provide component sourcing

and engineering services to International Truck and Engine Corporation.

Mahindra Navistar (MNEPL) a second joint venture agreement with Mahindra &

Mahindra, Ltd. focuses on producing diesel engines for Medium and heavy Commercial

vehicles in India. Beginning in 2009, MNEPL‘s advanced diesel engines will power the

full line of trucks and buses produced by MNAL.

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CORE VALUES

Our core values are influenced by our past, tempered by our present and are

designed to shape our future. They are an amalgam of what we have been, what

we are and what we want to be.

These values are the compass that will guide our actions, both personal and

corporate. They are:

Good corporate citizenship: As in the past, we will continue to seek long

term success that is in alignment with our country's needs. We will do this

without compromising on ethical business standards.

Professionalism: We have always sought the best people and given them

the freedom and the opportunity to grow. We will continue to do so. We will

support innovation and well-reasoned risk-taking, but will demand

performance.

Customer first: We exist and prosper only because of our customers. We

will respond to their changing needs and expectations speedily,

courteously and effectively.

Quality focus: Quality is the key to delivering value for money to our

customers. We will make quality a driving value in our work, in our

products and in our interactions with others. We will do it "first time right".

Dignity of the individual: We value individual dignity, uphold the right to

express disagreement and respect the time and efforts of others. Through

our actions, we nurture fairness, trust and transparency.

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Vision & Mission M&M AS defined its vision statement during the year 2001 as – ―Be a globally

recognized player in MUVs and LCVs by the year 2006‖.

In 2004 with a view to maintain dominance and growth in the automotive industry,

the vision statement was revisited and a Promise statement was developed.

This Promise Statement was redesigned in April 2007 as ‗Promise 2010‘. This has

been split into actionable goals in Sales, Customer satisfaction, Global presence

and Quality described by DFMEA: Defect Free, First Time Right, Material Cost

Reduction, e-Enabled Demand Chain and Achieve QCD on projects.

The long term aspiration is ‗Achieving 1 million vehicles by 2015‘ medium and

short term goals.

The short term (2013) and Long term (2015) goals are being reworked out and will

be declared by Mar 2010.

PROMISE 2010

We will be among the Top 3 in JD power customer surveys in India

We will continue our dominance in our core UV business while becoming a

full range player in the domestic market

We will quadruple our overseas volume and double our domestic volume

We will innovatively create four new sustainable platforms and launch ten

new products

We will continue to achieve double digit OPM through superior business

performance

We will continue to achieve double digit OPM through superior business

performance. We shall ingeniously surpass our customer‘s latent desires

by unleashing the passion of our people.

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ABOUT TATA MAGIC

INTRODUCTION In the segment of passenger transportation, Tata Motors has launched a

revolutionary new design –The Tata Magic (Har Safar mein kahani hai) in

July 2007.Magic has been developed on the platform of the Ace that brings

to urban and rural areas a four wheeler public transportation mode.

Whether it is a hub town or a village, the Magic can very well ferry

passengers with ease and comfort. The rigid front axle of this vehicle has

specifically been designed keeping in mind the Indian conditions. It can

very well and safely navigate through the narrow countryside streets or

roads where it seems difficult for other vehicles to do so.

The Magic ensures high fuel efficiency, longer life, and less downtime. It

has an engine of 700 cc, which can deliver a power of 16 hp @ 3200 rpm

and a torque of 38nm @ 2000 rpm. It meets BS-II and BS-III standards,

which makes it an eco-friendly vehicle. It offers a flexible seating capacity

of 4-7 passengers with adequate legroom. Powered by a 16 bhp (12 kW),

700 cc water-cooled diesel

The 12-inch tyres provide higher ground clearance, and the rigid front axle

is designed to handle tough roads. The Magic's turning radius of 4.3 metres

(14.1 ft) is nimble enough to navigate the byla nes and traffic of India's

crowded cities. The Magic has a clearly visible instrument cluster, utility

tray and a digital clock in the dashboard and also a provision for fitting a

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radio.

The Magic meets BS-III emission norms and has been developed for use in

any market — be it urban, semi-urban or rural. It is backed by a

36,000 km/12-month warranty.

Launch and reaction

Tata motors launched Magic in June 2007 for just above 2 lakhs .the new

vehicle was a big hit selling 100000 in just 20 months .As of may 2010

magic sold 250000 in just 3 years which created history in commercial

vehicles .currently Magic is offered in 3 color white, yallow, and blue .Tata

is building a new factory that will be able to turn out 250,000 a year starting

this month.

New segment

Tata Magic has created a new mini segment in India. Priced between 3.35

to 3.45 lakhs INR, the company aims to convert three wheeler users to 4

wheelers One of the idea that has made the launch of this vehicle might be

that the government policy in India not to allow HMVs (that are categorized

by vehicles weighing above 3 tones) to enter cities after 7 p.m. to reduce

traffic jams and pollution. TATA has found the gap in the market and

released MAGIC.

Manufacturing Location

The Magic is now produced at the in Pantnagar ,Uttarakhand although it

was initially manufactured at Pune.

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KEY FACTOR OF SUCCES

One of key factor for success this product is that government policy in India not to allow HMVs (that are categorized by vehicles weighting above 3 tones) to enter cities after 7 p.m. to reduce traffic jams and pollution. TATA has found the gap in the market and released MAGIC. Which is meets BS-II and BS-III standards, which makes it an eco-friendly vehicle’s and under

1tone payload. And customer was not having any other option at replacement time.

DATA COLLACTION

Data was collected in the form of personal interview .This method was

selected as it was the fastest way to collect data .Thus the primary data

was collected through surveys .whereas the source of secondary data was

various website.

SURVEY AREA

Since focus was only those who is owner of TATA MAGIC or who is driver.

Survey area would be near tata magic stand

1. BHOPAL

2. INDORE

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DATA PROCESSING AND DATA ANALYSIS

The statistical which will be used is are following

a) Graph and frequencies

b) Any other tool based on the type of data collection

c) The Questionnaire consisted both open ended and close ended

question

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Ques.1) Why did you choose TATA MAGIC?

Look Average Sitting capacity Loan scheme

Ques.2) How many kilometers you travel in a day?______

25-50 50-75 75-100 100-125 MORE THEN125

Ques.3) How many trips you make in a day?_____

10-20 20-30 30-40 40-50 MORE THEN50

Ques.4) How many stops you have to cover in a trip?_____

1-5 5-10 10-15 15-20 MORE THEN20

Ques.5) How many passengers you cover in a trip?_____

0-7 8-10 11-13 14-16 MORE THEN16

Ques.6) What is the average of the vehicle you get ?____

10-15 15-20 20-25 25-30

Ques.7) What is your approximate earning per trip ?_____

25-50 50-75 75-100 More then 100

Ques.8) What is your expenditure per trip?___

50-100 100-150 150-200 200-250

Ques.9) Have you made any additional changes after purchase Tata Magic?____

yes No

Ques.10)How much down payment you gave?

50000 75000 100000 125000

CUSTOMER VERBATIM

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

NAME :

VEHICLE NO : MOBILE NO :

ADDRESS :

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QUE.1Why did you choose Tata magic? ANS.

INTERPATION- According to my survey 55.15 % person choose magic because it‘s provide 7+1,6+1 sitting capacity . And they also said that when they purchase Tata magic no any other option available at that time.

Frequency Percent

Valid Look 20 14.7

average 37 27.2

sitting capacity

75 55.1

loan scheme

4 2.9

Total 136 100.0

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QUE.2 How many kilometer you travels in a day ? ANS.

Lavel Frequency Percent

50-100 11 8.1

101-150 28 20.6

150-200 71 52.2

201-250 24 17.6

more then 250 2 1.5

Total 136 100.0

INTERPATION- According to my survey 52.21% customers travels 150-200 Kilometers in a day.

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QUE.3 How many trips you make in a day ? Ans.

Lavel Frequency

Percent

0-5 6 4.4

6-10 104 76.5

11-15 24 17.6

16-20 2 1.5

Total 136 100.0

INTERPATION- According to my survey 76.47% customers make 6-10 trips in a day .and they travels approximately 10-12km in a trip

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Que.4 How many stops you have cover in a trip? Ans.

Level Frequency Percent

1-5 26 19.1

6-10 68 50.0

11-15 29 21.3

16-20 13 9.6

Total 136 100.0

INTERPATION- According to my survey 50% customer cover 6-10 stops in a trip. And 21.32 % customer cover 11-15 stops and 19.12% cover 1-5 stops and 9.56% customer cover more then fifteen customer .

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QUE.5 How many passenger you have cover in a trip? Ans.

Level Frequency Percent

0-7 4 2.9

8-10 20 14.7

11-13 38 27.9

14-16 73 53.7

more then 16 1 .7

Total 136 100.0

INTERPATION- According to my survey 53.68% customers said they cover 14-16 passengers 27.94% customers said that they cover 11-13 passengers in a trip both is more then it‘s actual capacity .and government has permitted only 7+1 .so company should have increase its sitting capacity.

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Que.6 what is the average your vehicle get? Ans. Level Frequency Percent

6-10 6 4.4

11-15 47 34.6

16-20 83 61.0

Total 136 100.0

INTERPATION- According to my survey 61.03% customer said vehicle is getting mileages 16-20 km/L though company said that vehicle will give mileages 20-22 km/l in road

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Que7. What is your approximate earning per trip? Ans. Option Frequency Percent

50-100 20 14.7

100-150 47 34.6

150-200 53 39.0

201-250 16 11.8

Total 136 100.0

INTERPATION- Based on my survey out of 136 respond 38.97 % customer says that they earn approximately 150-200 rupees per trip and 34.56% customer says that they earn 100-150 rupees per trip and 14.71% customer says that they earn 50-100 rupees per trip and only 11.76% customer says that they earn 201-250 rupees per trip.

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Que8.what is your expenditure per trip ? Ans. Level Frequency Percent

1-50 79 58.1

51-100 53 39.0

101-150 4 2.9

Total 136 100.0

INTERPATION –According to my survey 58.09% customer said that his approximately expenditure per trip is under 50 rupees and 38.97% customer said that his approximately expenditure is under 100 and only 2.4% customer said that his expenditure per trip on vehicle is above then 100 rupees.

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Que9.Have you made any additional changes after purchase Tata magic? ANS. Option Frequency Percent

Valid yes 88 64.7

No 48 35.3

Total 136 100.0

INTERPATION- Out of 136 respond 64.71% customer said that they made additional changes after purchase magic. They add a seat for four person in back side for increases sitting capacity .and maximum customers add bumper for security because company is given fiber front .and customer also add FM Radio other decoration accessories‘ because company was gave radio only first 10000 Magic .

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Que10.How much down payment you gave ? Ans.

Level Frequency Percent

10000-50000 48 35.3

50000-100000 56 41.2

100001-150000 17 12.5

150001-200000 1 .7

Cash 14 10.3

Total 136 100.0

INTERPATION – According to my survey 41.18 %customer said that they were gave approximately in 50000-100000 down payment and 35.29% customer said that they were gave 10000-50000 down payment and 12.50% customer said that they were gave 100000-150000 and 10.29 customer purchase in cash and only .74% customer were gave 150000-200000 in down payment.

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SWOT ANALYSIS OF TATA MAGIC

STRENGTH -

First vehicle in the segment of light passenger vehicle

Under the umbrella of TATA

Now no one competitor in this segment(below 1 tone pay load)

Available both version in diesel and cng

Within turning radius is shorter so it‘s easily turn in narrow street

where other mini buses can‘t turn easily so customer like this (as

school purpose)

Given ―leaf spring suspension at both front and rear ―so customer

perceive that we can overload

The rigid front axle of this vehicle has specifically been designed

keeping in mind the Indian conditions. It can very well and safely

navigate through the narrow countryside streets or roads where it

seems difficult for other vehicles to do so.

It meets BS-II and BS-III standards, which makes it an eco-friendly

vehicle.

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WEAKNESS-

Maintenances charge is very high

Vehicle parts is so expensive

Pick up is very low

Body is weak and company is not gave cover in ceiling so vehicle get

hot early in summer

All controlling by alternator so when battery is weak then vehicle

can‘t start.

Back side gate is weak

OPPORTUNITY-

Now pupil is converting to 3 wheeler to 4 wheeler

Tier 2 city cng ability

Threats-

Mahindra will launch maxximo in this segment

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FINDING AND SUGGATION-

FINDING-

According to my survey 62% customer says that were made

additional changes after purchase magic and they added a seat in

back side.

According to my survey 97% customer are doing overloading

because they says that if they not do this then they would not able to

pay loan installments.

From the source of field survey magic maintenance charges is very

high.

From the source of field survey costumer says that magic pic-up is

very weak

According to my survey 78% customer were gave down payment

under 100000 and they said company should launch minimum down

payment policy.

From the source of field Survey Company was not gave ceiling cover

that‘s why vehicle get hot easily in summers.

From the source of field survey customer said that Back side gate is

weak they want strong gate as like as MAHINDRA JEEP.

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SUGGESTIONS

Company should gave a seat in a back side optionally.

Company should do R&D for increase pick up

Company should try to decrease part‘s rate and do

maintenance in affordable price.

Company should launch 0 down payment policy sothat driver

who is interested to purchase vehicle they can purchase.

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REFRENCE-

www.mahindra and Mahindra .com

www.wikipedia .com