PROJECT REPORT 2(2014)TATA PROJECT

AMITY GLOBAL BUSINESS SCHOOL

1 TATA MOTORS

PROJECT REPORT

ON

Volume growth in small pickup in TATA MOTORS

RISE

IN THE PARTIAL FULFILLMENT OF THE DEGREE MASTER OF

BUSINESS ADMINISTRATION OF AMITY UNIVERSITY (2013-2015)

BY

Nilanjan Bhaumik

A30301913073


KORAMANGALA 3RD BLOCK

BANGALORE -34

KARNATAKA


2 TATA MOTORS

PROJECT REPORT

ON

Volume growth in small pickup in TATA MOTORS

IN THE PARTIAL FULFILLMENT OF THE DEGREE MASTER OF

BUSINESS ADMINISTRATION OF AMITY UNIVERSITY (2013-2015)

BY

Nilanjan Bhaumik

A30301913073

UNDER THE GUIDANCE OF

MR. Dawood Mrs. Rohini

CORPORATE MANAGER FACULTY AGBS


3 TATA MOTORS

DECLARATION

I hereby declare that the Organizational Study entitled “Volume Growth in Small pick up”

submitted by me in partial fulfilment for the award of master’s Degree in Business Administration

of Amity University is genuine and original work / research carried out by me.

Amity Global Business School

Bangalore

Dated 6th July, 2011

Nilanjan Bhaumik

A30301913073


4 TATA MOTORS

AMITY GOLBAL BUSINESS SCHOOL

CERTIFICATE

This is to certify that Mr. Nilanjan Bhaumik, enrolment No:

A30301913073, studying in 2th Semester MBA has successfully

completed his Summer Internship Project titled “awareness of

Volume growth in small pickup.” and has submitted this report in

partial fulfilment of Master of Business Administration to Amity

Global Business School, Bangalore under my guidance which is

original.

Prof. Rohini

Internal Faculty Guide

AGBS, Bangalore

Date:

Place: Bangalore

Prof. S Murali

Dean

AGBS, Bangalore


5 TATA MOTORS

ACKNOWLEDGEMENT

On the very outset of this report, I would like to extend my sincere thanks and heartfelt

obligation towards all the people who have helped in this endeavour. Without their

active guidance, help, cooperation and encouragement, I would not have made a

headway in the project.

I am greatly indebted to Mrs. Nagamani, Amity global business school Bangalore, for

her advice and encouragement throughout the project and timely valuable suggestions

for completing the project.

I am extremely thankful and pay my gratitude to my faculty guide PROF. Mrs. Rohini

for her valuable guidance and support on completion of this project.

I extend my gratitude to Amity Global Business School for giving me this

opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents

and members of my family who have always supported me morally as well as

economically.

At last but not the least, gratitude goes to all of my friends who directly or indirectly

helped me to complete this project report.

Date:

Place: Bangalore Nilanjan Bhaumik


6 TATA MOTORS

Chapter no Topic Page No

1 Executive Summary

2 Industry Profile

3 Company profile

Brand

4 Research methodology

5 Findings & Conclusions

Findings

Data analysis

Conclusion

6 Limitation

7 Recommendation

8 Appendix

9 Bibliography


7 TATA MOTORS

CHAPTER 1

Executive summary


8 TATA MOTORS

EXECUTIVE SUMMARY

Towards the fulfilment of MBA programme, a study was conducted

on Volume Growth in small pick up. The main objective of the project was to learn “customer’s

feedback “amongst customer of TATA MOTORS .This research was conducted in Bangalore city.

Selling of any product, there is needed to build good relationship with customer. For

building a relationship there is need to know the need and wants of customer. To find out their actual

requirement that what they wants and how we can satisfied to our customer .Because satisfaction is

main tool which is playing vital role is buying behaviour .This Project is undertaken to know the

customer buying behaviour of small vehicle .Also this project get awareness that which factor

affecting on the selling of pickup vehicle .The data is collected by me through personal interview

of respondents .It was very challenging to fill-up the questionnaire as of the most of the population

comes from local language (kanara). It was difficult to me understand but I managed. Many of

customers did not show any interest in filling questionnaire.

This study will help to TATA MOTORS to know the most popular way to by which they are

providing services and quality to the customers and to know various customers perception.

The research objective to study in this research is as follows:

-To know the market position of TATA MOTORS in pickup sector in the market

-To identify the factor which influence on consumer decision.

-To find out which medium of marketing channel play important role

- Purchase of pickup vehicle

- Identify possible areas of improvement.

- To study whether customers are satisfied with services and staff or not


9 TATA MOTORS

Chapter 2

AUTOMOTIVE INDUSTRY


10 TATA MOTORS

AUTOMOTIVE INDUSTRY:-

The automotive industry in India is one of the largest in the

world and one of the fastest growing globally.

India’s commercial vehicles manufacturing industry is the sixth largest in the world, with an

annual production of more than 3.7 million units in 2010.

According to recent reports, India is set to overtake Brazil to become the six largest commercial

vehicles producer in the world. Growing 16-18 % to sell around three million units in the course

of 2011-12, in 2009, India emerged as Asia‘s fourth largest exporter of commercial vehicle ,

behind japan , south Korea and Thailand in 2010 , India reached as Asia ‘s third largest exporter of

commercial behind japan and south Korea beating Thailand,

As of 2010, India is home to 40 million passenger vehicle .more than 3.7 million automotive

vehicles were produced in India in 2010(an increase of 33.9%) making the country the second

fastest growing automobile market in the world

According to the society of Indian automobile manufacture, annual vehicle sales are project to

increase to 5 million by 2015 and more than 9 million by 2020 .by 2050, the country is expected

to top the world in car volumes with approximately 611 million vehicles on the nation’s roads.

The majority of India’s car manufacturing industry is based around three clusters in the south west

and north.

The southern cluster consisting of Chennai and Bangalore is the biggest with 35%of the revenue

share.

The western hub near Mumbai and pune contributes to 33% of the market and the northern cluster

around the national capital region contributes 32%. Chennai, is also referred to as the ‘Detroit of

India’ with the India operations ford, Hyundai, Renault and Nissan headquartered in the city and

BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country’s

automotive exports.

The chakan corridor near pune , Maharashtra is the western cluster with companies like general

motors, Volkswagen , skoda, Mahindra, Tata motors, fiat etc. having assembly plants in the area.

Aurangabad with Audi, Skoda also forms part of the western cluster.


11 TATA MOTORS

Another emerging cluster is in the state of Gujrat with manufacturing facility of general motors in

halol and further planned for Tata nano at Sanand. Ford, maruti Suzuki are also set to come up in

Gujarat. Kolkata with Hindustan motors. Noida with Honda and Bangalore with Toyota are some

of the other automotive manufacturing regions around the country.

It is a very challenging industry where day by day new competitors are coming with better and

economical products and service where consumers gets diverted to other companies.

It is an industry where both service and product is essentially important to stay in the current

market. New innovations are being done with the service as the products.

Summery

Passenger Vehicles:

Surge in mini car segment volumes and volume contribution of new models

support volume growth In June 2014, the domestic passenger vehicle (PV) industry sales volumes

at 218,828 units recorded a growth of 11.2% YoY, a reasonably strong performance considering

the persistent weakness in demand that has weighed on industry growth in the last three years. The

last time the industry had experienced double-digit volume growth was in the month of October

2012. The key drivers of double-digit volume growth in June 2014 were (a) strong volumes of

Maruti Suzuki Alto and WagonR (b) incremental volume contribution of new models such as

Maruti Suzuki Celerio, Hyundai Grand i10, Hyundai Xcent, Ford Ecosport, the new Honda City

and the new Toyota Corolla Altis. In terms of market share, the largest player Maruti Suzuki

improved its share in the domestic PV industry to 44.0% in Q1 2014-15 (42.1% in 2013-14) as

seven out of its 10 key models witnessed a positive growth. Compared to 2013-14, Hyundai and

Honda improved their market share by 188 basis points (bps) and 126 bps, respectively in Q1

2014-15, with the latter emerging as the fourth largest player (after Maruti

Suzuki, Hyundai and M&M) having overtaken Tata Motors.

Two Wheelers:

Scooter sales volumes maintain strong growth in June 2014; motorcycles

volumes too show healthy traction across sub-segments In 2013-14, the domestic two-wheeler

(2W) industry had recorded sales volumes of 14.8 million units, a growth of 7.3% over the

previous year. With growth of 13.0% YoY, the month of June 2014 marked eleven consecutive


12 TATA MOTORS

months of positive volume growth for the industry, unlike various other automobile segments. The

industry’s growth in June 2014 was supported by continued robust demand for scooters.

Accounting for 25.6% of 2W industry volumes (in June 2014), scooter volumes expanded by a

robust 25.2% YoY in June 2014, led by strong surge in volumes of Honda and TVS. Also, sales

volumes of motorcycles grew by a healthy 9.6% YoY during the month with all key sub-segments

of motorcycles recording a healthy volume growth including the 100c segment (3.6% YoY),

125cc segment (9.7% YoY), the 150cc segment (20.5% YoY) and the 150-200cc segment (64.9%

YoY). In terms of 2W industry market share, Hero MotoCorp continues to maintain its leadership

position with a share of 42.3% in Q1 2014-15 (41.3% in 2013-14), but the gap with the second

largest player Honda has been narrowing down over the years. However, in Q1 2014-15, Honda

did not gain any incremental market share vis-à-vis 2013-14; while Hero MotoCorp improved its

market share by 99 bps and TVS by 80 bps.

Commercial Vehicles:

Green shoots emerging as M&HCVs sales grow 2.5%; overall market

growth however remains in the negative zone on weak LCV demand After witnessing over two

successive years of contraction in unit sales, the Commercial Vehicle (CV) industry is now

showing some signs of recovery, especially in the medium & heavy duty truck segment, which has

borne the brunt of economic slowdown. Although the industry volumes as a whole continue to be

in the negative territory, the M&HCV segment (7.5-49T) has started showing a recovery with

growth of 2.5% YoY in June 2014. Within the segment, HCV (16.2t+) sales have been growing

steadily for past three months and registered an overall growth of 9.3% in Q1 2014-15. The recent

trend in improvement in freight rates across key routes, expectations of pick-up in investments in

infrastructure as well as manufacturing space along with renewal of mining activities in some

parts of the country suggest that the down cycle in M&HCVs has bottomed out. In terms of

market share, Tata Motors has gained some of its lost market share, especially in the M&HCV

(Goods) segment in 2013-14, while its market position has weakened in the LCVs (Goods)

segment as slowdown has caught up with the sub 2t category where it commands a strong market

share. In contrast, the 2-3.5t segment has performed better where M&M has relatively stronger

market position with its wide portfolio of pick-up trucks. New model launches by VECV and

SML Isuzu have also helped these OEMs gain market share in the M&HCV (bus) segment.


13 TATA MOTORS

Three-Wheelers:

Domestic three wheeler segment registers a growth 11.7% in Q1 2014-15

compared to a decline of 10.9% in 2013-14 In 2013-14, the domestic three-wheeler industry

volumes had contracted by 10.9% over the prior year largely due to drop in passenger segment

volumes, which accounts for majority (80%) of the three-wheeler sales in India. The drop in

volumes was caused by lower demand from key metros owing to lower permits on offer during the

year. This trend has reversed in the current year with growth coming back in the segment. During

Q1 2014-15, domestic three-wheeler volumes have grown by 11.7% YoY on the back of fresh

permits being issued by various states and improving demand for goods carriers. On the exports

front, demand for three-wheelers continued to remain healthy in 2013-14 on back of growing

demand from near-by markets, especially Sri Lanka, Bangladesh and parts of Africa.

Tractors:

After weak Apr and May, growth rate recovers somewhat in Jun 2014 Volumes in

domestic tractor market expanded by a moderate 5.5% YoY in June 2014; a significant

improvement on the 10% decline witnessed in April 2014, and the flat sales growth in May 2014.

Apart from high base of last year, sentiments in the farming community have been tempered by

unseasonal hail and rainfall during Feb’14/ Mar’14; significantly weak rainfall during June 2014;

and the below normal rainfall forecast for rest of the monsoon season. Non-agri pull has also

remained subdued with no significant pick-up in pace of infrastructure and construction activity.

There has however been an improvement in tractor exports from India in June 2014 (29.1% YoY

growth) as well as Q1 2014-15 (21.7% YoY growth), which comes on the heels of a volume

contraction of, 10.8% In 2012-13 and 0.7% in 2013-14. Amongst listed players, M&M recorded

an overall volume growth of 7.7% in the last month, whereas that for Escorts declined by 1.5%


14 TATA MOTORS

Industry history:-

India is one of the biggest automotive market in the world and it is very

fastest progressive market. It has very interesting history.

The first car ran on India’s road in 1897.until the 1930s, cars were imported directly, but in very

small numbers. Tata entered the commercial vehicle sector in 1945 after forming a joint venture

with Daimler-Benz of Germany. After years of dominating the commercial vehicle market in

India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a

multi utility vehicle. Tata subsequently launched the Tata Estate (1992).

Following the independence, in 1947, the government of India and the private sector launched

efforts to create an automotive component manufacturing industry to supply to the automobile

industry. however ,the growth was relatively slow in the 1950s and 1960s due to nationalisation

and the license raj which hampered the Indian private sector, after 1970, the automotive industry

started to grow, but the growth was mainly driven by tractors,

Commercial vehicles and scooters, cars were still a major luxury. Japanese manufacturers entered

the Indian market ultimately leading to the establishment of maruti udyog. A number of foreign

firms initiated joint ventures with Indian companies

In the 1980s, a number of Japanese manufacturers launched joint – ventures for building

motorcycles and light commercial – vehicles. It was at this time that the Indian government

Chose Suzuki for its joint – venture to manufacture small cars.

Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a

number of Indian and multi-national car companies launched operations. Since then,

Automotive component and automobile manufacturing growth has accelerated to meet domestic

and export demands.

Following economic liberalization in India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.

Several Indian automobile manufacturers such as Tata motors, maruti Suzuki and Mahindra and

Mahindra, expanded their domestic and international operations. India’s rebut economic growth

http://en.wikipedia.org/wiki/Daimler-Benz

http://en.wikipedia.org/wiki/Tata_Sierra

http://en.wikipedia.org/wiki/Tata_Estate


15 TATA MOTORS

led to the further expansion of its domestic automobile market which has attracted significant

India-specific investment by multinational automobile manufacturers.

In February 2009, monthly sales of passenger cars in India exceeded 100000 units and has since

grown rapidly to a record monthly high of 182992 units in October 2009.

From 2003 to 2010 car sales in India have progressed at a CAGR of 13.7% and with only 10% of

Indian households owning car in2009 (whereas this figure reaches 80% in Switzerland for

example) this progression is unlikely to stop in the coming decade.

Congestion of Indian roads, more than market demand, will likely be the limiting factor.

Siam is the apex industry body representing all the vehicle manufacturers, home- grown and

international in India.

Industry Segments

Based on vehicle registration data, the 1989 population of cars and trucks in India was about 4

million compared to 5.3 million in China and 13 million in Brazil. The population of motorized

two-wheelers greatly outstrips this number, as is also the case in China. The Indian automobile

industry is best segmented as follows:

Medium and heavy commercial vehicles (M/HCV)

Light commercial vehicles (LCV)

Light utility vehicles (LUV)

Passenger cars

Two-wheelers

Overall, the recent history in each segment has been marked by an almost steady increase in

performance throughout the 1980s. In some cases, as with two-wheelers, the performance over

this period was dramatic. However, the start of the 1990s saw the entire economy face a setback

triggered by many factors. Chief among them was the steep hike in fuel prices, increases in excise

duties, the devaluation of the rupee, and changes in rules relating to depreciation. The

simultaneous effects of increases in excise duties, the price of fuel, and overall increased levels of

inflation led to a sharp drop in sales for each segment in 1991. In August 1990, the excise duty for

cars was increased from 42 percent to 53 percent, and in July 1991, this was further raised to 66

percent.


16 TATA MOTORS

These government measures were largely motivated by the urgent need to reign in the trade

Deficit and by the increasing gap between oil consumption and local production. The squeeze on

Imports was expected to be relieved somewhat for 1992-1993, as the foreign exchange reserves

Situation recovered. Thus, while these constraints were expected to remain long-term issues, a

Lessening of the severity of the situation was expected in the short term. This transpired in June

1992, after considerable pressure from the industry and the Industry Ministry on the Finance

Ministry. Excise duty on cars was lowered from 66 percent to 55 percent, and on LCVs from 15

Percent to 10 percent. However, the credit squeeze imposed to curb inflation remains, and

Continues to adversely affect consumer credit and market demand for motor vehicles.


17 TATA MOTORS

Industry definition

this is class consist of units mainly engaged in manufacture motor

vehicles or motor vehicle engine

Product and service

the primary activities of this industry are:

Motor car manufacturing

Motor vehicle engine manufacturing

The major product and service in this industry are:

Passenger motors vehicle manufacturing segment

Commercial vehicle (medium and heavy and light commercial vehicle)

2 wheelers & 3 wheeler

Supply chain of automobile industry

The supply chain of automotive industry in India is very similar to the supply chain of the

automotive industry in Europe and America. The order of the industry arise from the bottom of the

supply chain. I. E. From the consumer and goes through the automakers and climbs up until the

3rd tier suppliers. However. The products. As channelled in every traditional automotive industry,

flow from the top of the supply chain to reach the consumers. Automakers in India are the key to

the supply chain and are responsible for the products and innovation in the industry.

The description and the role of each of the contributors to the supply chain are discussed below.


18 TATA MOTORS

Third tier suppliers:

These companies provide basic products like rubber, glass. Steel plastic and

aluminium to the second tire suppliers.

Second tier supplier:

These companies’ design vehicle system or bodies for first tier suppliers and

OEMs. They work on designs provide by the first tier suppliers or OEMs. They also provide

engineering resource for detailed design. Some of their services may include welding, fabrication

shearing bending etc.

First tier supplier:

These companies provide major system directly to assemblers. These

companies have global coverage to follow their customers to various locations around the world

they design and innovate to provide black- box solutions for the requirement of their customers.

Black -box solution are solutions created by supplier using their own technology to meet the

performance and interface requirements set the assemblers.

First tire suppliers are responsible not only for the assemble of part into complete units like

dashboard, seat or cockpit but also for the management of second tire suppliers.


19 TATA MOTORS

Automaker/ vehicle manufacturer/ original equipment manufacturers (OEMs):

After researching consumer’s wants and need,

automakers begin designing models which are tailored to consumer’s demands.

The design process normally takes five years.

These companies have manufacturing units where engines are manufactured and parts supplied by

first tire supplier and second tire suppliers are assembled.

Automakers are the key to the supply chain of the automotive industry. Example of these

companies are Tata motors, maruti Suzuki, Toyota and Honda innovation, design capability and

branding are the main focus of these companies.

Dealers: one the vehicles are ready they are shipped to the regional branch and from there, to the

authorised dealers of the companies. The dealers then sell the vehicles to the end customers.

Parts and accessory: these companies provide products like tires, windshields, and air bags etc. to

automakers and dealers or directly to customers.


20 TATA MOTORS

Service providers:

Some of the services to the customers include servicing of vehicles, repairing

parts, or financing of vehicles. Many dealers provide these service but customers can also choose

to go in independent service providers.

Domestic automobile sales to increase; though moderately

The Indian automobiles industry was adversely impacted by the general economic conditions in

the country and across the global in the 2011. However, health growth prospects and the strong

fundamentals of the Indian economy would drive the auto industries growth in the year ahead

though the industry is not likely to attain the highest growth rates that were recorded. Prior to 2011

after the. Robust 30.8% increase in sales in 2010 growth in domestic auto mobiles sales volume

had slackened to a mere 4.6% mere in 2011. Nevertheless for 2012 the overall economic growth

indicator remind positive, auguring well for the automobile industry. We expect the deferred

purchase to get convert into actual sales, driven by steady economic growth and strong industrial

activity. The expected moderation in interest rate would also give the much needed boost to sale in

the year ahead. The industry as a whole is expected to gain significantly from the various

initiatives on infrastructure development and the improved road infrastructure.

Vehicle export to remind in growth trajectory:

Export of automobiles are expected to growth strongly in

2012, although the industry may not be able to sustain the height growth 27 33 % record in the

recent couple of years. While two wheeler dominate with a majority share in total vehicle exports

from India in 2012, all the segment are expected to witness healthy performance. This is likely to

be achieved on the back of increase focus of the original equipment manufacturer (OEMs) on

exploring newer market their continued effort on diversifying export market with a focus on

emerging market and reducing their over-dependence on the traditional markets


21 TATA MOTORS

Strong macroeconomic fundamentals to drive auto industry

growth:

Commercial vehicle a stable economic environment along

with health growth in the industrial sector, higher freight availability, firm freight rates and

expected moderation in interest rates would drive sale of commercial vehicles in 2012 in 2011

growth in sales of medium and heavy commercial vehicle had slowed down due to rise in

interested rates and fuel price and expectation of lower industrial growth. In 2012, we expect

performance of the light vehicle segment to remind strong, driven by growth in the agriculture and

services sector. With sustained economic growth outlook and increase in infrastructure spending

sales performance of M&HCVs is also expected to remind strong.

Industry to maintain profitability:

Automobile sales volume are expected to increase in

2012 over 2011 both domestic sales and exports. On the raw material front, given the health

demand outlook in the Indian economy. Price of commodities such as steel and rubber are likely

to remind firm in the coming year. However, we do not expect any sharp spurt in price. Amidst

rising market competition and new product launch planned, OEM are expected to increase spends

on marketing and promotional activities. Nevertheless, given the expectations of healthy demand

scenario, OEMs are like to pass at last part of the increased cost to customer by the way of price

increase. More importantly, form a long term prospective also, OEMs would increase thrust on

adopting more stringent cost reduction and productivity improvement programmes. In such a

scenario, the industry is expected to maintain profit margins.


22 TATA MOTORS

Strategic insight:

Some of the key strategies that vehicle manufacture are likely to at adopt in 2012 are listed below:

Commercial vehicle:

Launch new model

Expand sales and service network

Enhance finance availability to customers

Focus on product innovation to create a new market segments

Development new product for the international markets

Expand our footprint to newer export markets

Adopt more aggressive cost control and productivity improvement

measures

Greater thrust on and expansion of less cyclical businesses.

Population and Transportation Needs

The growth of India's population is a well-documented problem. The population in 1991

Was estimated to be about 844 million [I]; by the turn of the century, India's population could

Exceed one billion. This compares with China's population of 1.11 billion (1989), although the

Density of population in India (267 per square krn) is over twice that of China (1 16 per square

Km). Serving the transportation needs of this large population in India is an immense challenge.

Annual per capita travel in India is estimated to be about 900 km compared to 500 km in China [2]

And, while India's level of population mobility may be low compared to western societies, it is

Among the highest for developing countries.


23 TATA MOTORS

A secondary aspect of the population problem is its increasing concentration in urban Areas. In

1901, just over 10 percent of India's population was concentrated in the urban areas; by 1981, the

urban areas accounted for about 23 percent. Estimates for 1991 indicate that over 26 Percent of the

population was urban (a figure that is similar to China's urban population fraction of 27 percent in

1988). By 2001, that figure in India is likely to be over 34 percent (figure 1).

The number of cities of more than one million population increased from nine in 1971 to twelve

by 1981, and twenty three in 199 1. During this period, the percentage of urban population

resident in these cities increased from 56 percent in 1971 to 65 percent in 1991. This increasing

population concentration has made the problem of urban transportation more acute. The Central

Institute of Road Transport estimates that travel demand will increase from 35 million daily trips

in 1986 to 60 million by the year 2000 in the four metropolitan cities of Bombay, Calcutta, Delhi,

and Madras alone

Population and Demographics:

By world standards, a large fraction of India's population belongs to the worlds

"Absolute" poor. Data from the Indian Planning Commission classify 37 percent of the population

Below the poverty line. However, that figure represents a vast improvement from the 48 percent

Figure of 1977-1978. Per capita GNP grew four-fold between 1971 and 1988, and the growth

Sustained by the economy through the 1980s has given rise to an increasing middle-class

Population and a corresponding increasing demand for consumer goods. However, in 199 1,

Approximately 60 percent of total household income was generated by low income families--those

Earning less than 12,500 rupees (table 1). Between 1970-1971 and 1988-1989, expenditure for

Transport and communications of personal final consumption rose from 3 percent to 8 percent.

Another important aspect of demographic change is the increasing pool of highly qualified

Manpower. Current estimates include about 2 million engineers and scientists, 10 million degreed

Graduates, and over 50 million educated through higher secondary level. The government has


24 TATA MOTORS

Continually made strides in education, and the available workforce is capable of supporting the

Growing economy.

Industrial Policy:

With the new economic policies, greater efforts are being undertaken to divest some Government

ownership in large, public-sector enterprises. Simultaneously, rules governing Foreign ownership

of industries are also being relaxed to encourage investment in the Indian Economy. These

measures constitute components of a policy that has targeted increased Productivity. Progressive

opening of the domestic market to international competition is being Pursued to spur industries to

improve their global competitiveness. Initially, the oil and gas sector was singled out for urgent

infusion of foreign capital and Technology. Foreign companies were to be given contracts for

developing the fields and would Have access to refining and distribution. The urgency that was

accorded this sector is another Indication of the expected growth in the oil import bill under the

current scenario. Subsequently, a List of high-priority industries was compiled in which

companies were allowed to raise foreign Capital up to 5 1 percent of equity. Expansion plans that

depended on foreign capital expenditure Were expected to be funded by the foreign equity.

Significantly, in the automobile sector, Suzuki was allowed to increase its holding in the Highly

successful Maruti venture to 50 percent in anticipation of a new model designed for export To

European markets. Likewise General Motors' proposal, together with Hindustan Motors, was

Approved, much of the investment was expected to be geared for export of components to GM's

Operations worldwide. Another aspect of the liberalization involves the government's divestment

of much of its Equity in the many large, public-sector industries. However, a major issue that is

yet to be fully Addressed is the so-called "exit-policy" involving the reduction in the workforce

that is expected. With massive restructuring. In essence, a plan that is acceptable to the labour

unions and yet Provides the necessary scaling down of the workforce for economic viability is still

developing. Labour unions are well established in most major industries. As is true worldwide,

labour relations Are a key factor in determining the success of ventures


25 TATA MOTORS

AUTOMOTIVE COMPONENT INDUSTRY

The evolution of the automotive component industry

predictably followed the evolution of the auto industry itself. With the start up of local production

of cars, trucks, and two-wheelers in the 1950s, many of the associated component manufacturers

(mainly from Europe) started operations in India. Over a period of time, many of the major

manufacturers had established plants for manufacture or assembly of parts. These included

companies like Bosch (fuel injection systems and spark plugs) and Mahle (pistons) from

Germany; Lucas (auto electricals), Girling (brakes), and Lockheed (clutches) from the United

Kingdom; and Champion (spark plugs), Armstrong (shock absorbers), and Union Carbide-Exide

(batteries) from the United States. From the Indian perspective, these units were primarily

intended to aid import substitution. In the process, there was gradual transfer of technology from

the parent company. A second phase in the evolution saw many established Indian companies tie

up with western manufacturers for technical collaboration. Examples include Modi Tyres, which

linked with Continental Tyres in Germany ,and Yenkay, which obtained licenses from VDO for

dashboard instruments. In some cases, efforts at export were initiated, usually with the help of the

foreign collaborator. The auto component industry received a major boost along with the auto

industry in the 1980s. Annual growth was usually over ten percent and industry-wide sales more

than doubled between 1984- 1985 and 1989- 1990 (figure 21). Industry sales figures from 1988-

1989 included 39 percent related to engine components, 24 percent for transmission and steering

parts, 17 percent for suspensions and brake parts, and about 8 percent for auto electrical parts.

The anival of the Japanese in the Indian auto industry (for cars, trucks and two-wheelers) saw a

major new source of joint-ventures emerge in the 1980s. Companies such as Nippondenso and

NGK followed the Japanese automakers into India with joint-ventures or technical collaborations.

In 1990, the United Kingdom still led with the most joint-ventures (104) followed by Germany

(74), the United States (70), Japan (67), Italy (30), and France (28).


26 TATA MOTORS

The top automobile companies in India are:

Bajaj auto limited:

It is market later among the automobile companies in India. The Bajaj

group flagship company is Bajaj auto. It is the fourth largest two wheeler and four wheeler

manufacturer in the world. The Bajaj brand is renowned in countries like us, Europe, Latin

America etc. It is also among the top 10 Indian companies in market capitalization. The company

has product in the segment like scooters, mopeds, motorcycle,

Ford motor company

This Company entered the Indian automobile industry by a tie up with

Mahindra motors to manufacture the awesome ford escort. The company’s models made for India

are manufacture keeping in mind the Indian conditions. The company has sold about more than

260,000, 000 vehicles across the globe. The estimate brand of the company are jaguar, mercury,

and ford. The company also ranks among the best five industrial corporation in the globe and is

found in about 200 countries.

Hero Honda motors ltd:

The Company is the result of the amalgamation between Japanese

Honda motor company and India’s hero Honda group in 1963. This is the single largest two

wheeler company of India. Hero Honda motors ltd is the market leader for being the largest Indian

motorcycle company for selling cbz and also the most fuel efficient one

Mahindra and Mahindra ltd

This Indian automobile company is subsidiary of Mahindra

group. The company specialised in vehicle for the general propose utility. It rank 10th among the

largest private sector company in India. The company has four divisions- tractors, automotive,

inter trade and MSL it has about 33 sales offices and the network support is about 500 dealer

across India.


27 TATA MOTORS

Maruti Suzuki India ltd

it is the company which has ushered revelation in the industry of

Indian car. The company is the alliance of Japan’s Suzuki and maruti. Maruti Suzuki car is for the

average Indian. It is the first Indian company which manufacture about 1 million vehicles. The

motto of the largest automobile company of India was to offer low cost and fuel efficient vehicle.

The company produces Zen, maruti 800, maruti esteem, maruti Omni, etc.

Tata motors

Tata motors is the largest manufacture of the commercial vehicle in

India and also the largest private sector company. the company produce light commercial vehicle

passenger car, commercial vehicle and multi-utility vehicles, the most popular vehicles are Indica

safari, sierra etc. The latest innovation of the Tata motors is the nano car which is called the

people's car. This one lakh car has created a revolution in the history of the automobile industry

across the world.

Hindustan motors

the leading manufacturer of the electronic motors in India is Hindustan

motors. The first car company of Indian to start the manufacturing process of cars in India in the

year 1942 is Hindustan motors. The company has a strong network of 115 dealers and 60 parts

dealers and 4 regional offices. The new model ambassador nova was launched by 2 years back.

TVs motors

a significant name in the two wheeler industry is TVs motors. The first

two seater moped of India was manufactured by this company. The company has always work for

innovation in the arena of motorcycle India’s first 140 cc motorcycle, Suzuki shaolin, was

developed by TVs Suzuki. Another remarkable success of the company is TVs scoot. It ranked 3rd

among the largest manufacturer of two wheeler in India.

Auckland

It is the second largest Key player among the commercial vehicles in

India. The company manufacture vestiblebuses, haulage vehicles, 18-82 seater single and double

decker buses etc., the 6 manufacturing unit of the company can produce 77000 vehicles at a time


28 TATA MOTORS

General motors Indian private ltd

It is an interesting things to note that there is a 50:50 partnership

between general motors and SAIC. According to sources, general motors India private limited is

the fifth largest auto mobile company in India after maruti Suzuki, Hyundai, Tata motors and

Mahindra and Mahindra. This company has launched vehicle Manufacturing plant in halol,

Gujarat and Maharashtra. The company has it’s headquarter in Gurgaon halol.

LML:

It is the company that bought new design of scooters in the market. It did

collaboration with piaggio. This company has entered motorcycle market in collaboration with

daelim of Korea.

Toyota kirloskar motors private ltd

the main aim of the company is innovation. The continues efforts of the

company has made it very popular in the automobile sector. The company is working with the

aim of becoming the most admired company in the country.


29 TATA MOTORS

Global production of motor vehicles –

Year Production Change

1997 54,434,000

1998 52,987,000 -2.7%

1999 56,258,892 6.2%

2000 58,374,162 3.8%

2001 56,304,925 -3.5%

2002 58,994,318 4.8%

2003 60,663,225 2.8%

2004 64,496,220 6.3%

2005 66,482,439 3.1%

2006 69,222,975 4.1%


30 TATA MOTORS

2007 73,266,061 5.8%

2008 70,520,493 -3.7%

2009 61,791,868 -12.4%

2010 77,857,705 26.0%

2011 79,989,155 3.1%

2012 84,141,209 5.3%

2013 87,300,115 3.7%


31 TATA MOTORS

Various segment of the Indian automobile industry

Motorcycle manufacturer makes up the major share in the two wheeler segment of the Indian

automobile industry. About 50 % of the motorcycle are manufacture by hero Honda. While Honda

manufacturing about 46 % of the scooter, TVs produce 82 % of the moped running on the Indian

roads.

About 40 % of the three wheeler manufacturers in India are used for transporting goods with

piaggio manufacture in 40 % of the vehicle sold in the Indian market. on the other hand, Bajaj has

emerged as the leader in manufacturing three wheeler used for passenger transport .the firm

produces about 68 % of the three wheeler used for passenger transport in India .the Indian

passenger vehicle segment is dominated by car which make up about 80 % of its. Maruti Suzuki

manufacturing about 52 % of passenger car while the firm enjoy a complete monopoly in the

manufacture of multi-purpose vehicle. In the utility vehicle segment Mahindra makes up a 42 %

share.

Tata motors is the leader in the Indian commercial market while it holds more than 60 percent

share. Tata motors also enjoy the credit of being the world 5th largest manufacture of medium and

heavy commercial vehicles.


32 TATA MOTORS

Potential of Indian automobile industry

There is a very stiff competition in the automobile industry segment in India. This has helped

many to realize their dreams of driving the most luxurious cars. During the recent past, a number

of overseas companies have started grabbing a big chunk of the market share in both domestic and

export sales. Every new day dawns in India with some new launch by active player in India auto

mobile arena. By introducing some low cost cars, the industry had made it possible for common

man to buy car for their personal use. With some innovative strategies and by adopting some

alternative remedial measure, the Indian automobile industry has successfully come an unaffected

out of the global financial crisis.

While the automobile industry in India is the ninth largest in the world, the country emerged as the

fourth largest automobile exporter on the globe following japan, South Korea and Thailand in the

year 2009. Over and above, a number of auto mobile manufacturer based in India have expanded

their operation around the globe also giving way for a number of reputed MNCs to

enthusiastically invest in the Indian automobile sector.

Nissan motors has revealed its prospective plan to export 25 0000 vehicles produced in its India

plant by the year 2011. General motors has also come up with the similar plans.

During the current fiscal year, the Indian automobile industry rode high on the resurgence of

consumer demand in the country as a result of the government’s fiscal stimulus and attractively

low interest rate. As a result the total turnover of the domestic automobile industry increased by

27 %.

A reply produce in the look Sabha recently has quoted data from the society of Indian automobile

manufacturers and has revealed that the total turnover of the Indian automobile industry in April

February 2009 10 was 162708.77 cr

This is a remarkable achievement compare with the total revenue of rs. 128384.53 cr. reported

during the same period of the last fiscal year. Specifically, the segment of commercial vehicle


33 TATA MOTORS

witnessed the biggest jump in revenue by 31 % by reporting rs38845.09 cr. during the same

period, the passenger vehicle segment in the country witnessed a growth of 27 percent over the

last fiscal year by reporting a total revenue of rupees 76545. 96 CR. these figures imply a highly

prospective road lying immediately ahead of the Indian automobile industry.

Predictions made by Ernst and young have estimated that the Indian passenger car market will

have a growth rate of about 22 % per annum over the next 5 year to reach the production of 8.75

million units by the year 2017. The analysts have further stated that the industry turnover will

touch $155 billion by 2016. This achievement. Will success in consolidating India’s position as

the seventh largest automobile manufacturer on the globe. Eventually surging forth to become

third largest by the year 2030 behind china and u.s.

The automotive mission plan launch by the Indian government has envisaged that the country will

emerge as the seventh largest car maker on the globe thereby contributing more than 10 % to the

nation $1.2 trillion economy.

Further, industry experts believe that the nation will soon establish its stand as an automobile hub

exporting about 2.7 million units and selling about a million units to be operated on the domestic

roads.

By 2020, India's share in global passenger vehicle market is expected to double to 8 per cent from

4 per cent over 2010–11. Automobiles production increased at a compound annual growth rate

(CAGR) of 11.8 per cent over FY 05–13. Passenger vehicles was the fastest growing segment,

representing a CAGR of 12.9 per cent.

Strong growth in demand due to rising income, growing middle class, and a young population is

expected to drive India among the world’s top five auto manufacturers by 2015. Growth in export

demand is also set to accelerate. Automobile export volumes increased at a CAGR of 19.1 per cent

during FY 05–13. India has significant cost advantages; auto firms save 10–25 per cent on

operations vis-à-vis Europe and Latin America. A large pool of skilled manpower and a growing

technology base would induce greater investments.

The Government of India aims to develop the country as a global manufacturing as well as

research and development (R&D) hub. There has been a wide array of policy support in the form


34 TATA MOTORS

of sops, taxes and foreign direct investment (FDI) encouragement. National Automotive Testing

and R&D Infrastructure Project (NATRiP) was set up at a total cost of US$ 388.5 million to

enable the industry to be on par with global standards.

Tata Nano and the upcoming Pixel have opened up the potentially large ultra-low-cost car

segment. Innovation is expected to intensify among engine technology and alternative fuels

Key Statistics

The auto industry produced a total 1.81 million vehicles, including passenger

vehicles, commercial vehicles, three wheelers and two wheelers in February 2014 as against 1.73

million in February 2013, registering a growth of 4.41 per cent over the same month last year. The

increase continues to be on account of growth in two wheelers production. Moreover, the overall

domestic sales during April–February 2014 grew marginally by 2.68 per cent over the same period

last year.

The passenger vehicles production in India is expected to reach 10 million units by 2020–21. The

industry is estimated to grow at a compound annual growth rate (CAGR) of 13 per cent during

2012–2021. In addition, the industry is projected to touch US$ 30 billion by 2020–21, according

to data from Automotive Component Manufacturers’ Association (ACMA).

The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during

the period April 2000 to January 2014 was recorded at US$ 9,344 million, an increase of 4 per

cent to the total FDI inflows in terms of US$, according to data published by Department of

Industrial Policy and Promotion (DIPP), Government of India.

The overall automobile exports grew by 6.39 per cent during April–February 2014. Passenger

vehicles, three wheelers and two wheelers registered growth at 6.44 per cent, 16.40 per cent and

5.41 per cent respectively, compared to the same period last year.


35 TATA MOTORS

Major Developments & Investments:

German auto maker Volkswagen is planning to expand production capacity and introduce

a slew of new models. The group is looking at investing Rs 1,500 crore (US$ 248.55

million) over the next five years to set up a diesel engine manufacturing facility.

Amtek Auto signed an agreement to buy Germany's Kuepper Group of companies for

about Rs 16.78 billion (US$ 277.97 million) in December 2013, which was its second big

European acquisition in 2013.

Jaguar Land Rover (JLR) will scale up its production capacity to hit 700,000 units by FY

2017 riding on its joint ventures (JV) in China and Brazil, as per analysts. JLR's capacity

for 2014 is pegged at 450,000 units.

Infosys has signed a multi-year contract with Volvo Cars to provide application

development services to the latter's global operations.

JCB announced plans to relocate production of compaction equipment to factories in the

UK and to Pune, India, and close the Gatersleben site in Germany. “The demand for larger

compaction equipment is growing at a steady rate in India and we will now have flexibility

to produce global quality machines in India for our customers in the region as well as for

exports,” highlighted Mr Vipin Sondhi, MD and CEO, JCB India.

Piaggio Vehicles Pvt Ltd, scooter and light commercial vehicle manufacturer, is planning

to assemble its super bikes locally, which it sells under the brand Aprilia.

The used cars market in India is anticipated to grow at a CAGR of 16 per cent during 2013–17,

highlighted the RNCOS report titled, ‘Booming Used Car Market in India Outlook 2017’.

Furthermore, India is expected to emerge as a centre for producing compact superbikes. Several

global and Indian bike makers plan to utilise India's mass production base of 16 million two

wheelers to roll out sports bikes in the 250cc capacity.


36 TATA MOTORS

Government Initiatives:

The Interim Budget 2014-15 added some incentives to the auto industry. To give relief to the

automobile industry, the excise duty has been reduced till June 30, 2014 as follows:

For small cars, motorcycle, scooters – the duty has been reduced from 12 per cent to 8 per

cent.

For commercial vehicles and SUVs – the duty has been reduced from 30 per cent to 24 per

cent.

For large and mid-segment cars – the duty has been reduced from 27/24 per cent to 24/20

per cent.

The other incentives from Union Budget 2013–14 are as follows:

The period of concession available for specified part of electric and hybrid vehicles till

April 2013 has been extended up to March 31, 2015.

An exemption from BCD will be provided to lithium ion automotive battery for

manufacture of lithium ion battery packs for supply to manufacturers of hybrid and electric

vehicles.

The Government of India allows 100 per cent FDI in the automotive industry through automatic

route.

Market share of automobile companies in India 2013:Top Players in

Industry

Indian automotive industry is one of the largest auto markets in the world. It has grown

up very fast in last one decade due to rising family income, changing lifestyle, low vehicle

penetration, easy finance availability, rapid urbanization and poor public transport system. But

current year auto market growth is in flat to negative due to slowdown in economy growth.

However market is expected to recover from next financial year 2014-15.

India’s passenger car and commercial vehicle manufacturing industry is 6th largest in the world

after China, US, Japan, Brazil and Germany.

The long term demand seems to be very strong due to growing demand, policy support and

increasing investment.

According to IHS Automotive, India will become the 3rd largest automotive market in the world

by 2016.

Now, this article will present the information about top players in automotive industry in each

segment.


37 TATA MOTORS

Indian automobile industry is clearly dominated by 2 to 3 players in every vehicle category.

Given below is the market share of automobile companies in India 2013. The market share is

mainly for top players in each segment based on vehicle production for the period Apr’13 to

Nov’13.

Cars & Utility Vehicles

Cars & Utility Vehicles: Company Wise Market Share In India

India has produced more than 3.2 Million Cars & Utility vehicles in FY 12-13. Maruti Suzuki,

Hyundai, Mahindra & Mahindra, Tata Motors and Toyota companies stands in top 5 In terms of

market share, followed by Nissan, Ford, Honda, General Motors, Volkswagen, Renault, Skoda, Fiat,

etc.


38 TATA MOTORS


39 TATA MOTORS


40 TATA MOTORS

Annual Passenger Vehicle Production in India

The passenger vehicle market in India is dominated by top 6 players. Maruti Suzuki, Hyundai,

Mahindra & Mahindra, Tata, Toyota and Honda have around 85% of the market share. The rest

15% is shared by Ford, GM, Renault, Volkswagen, Nissan, Skoda, Fiat and others.

Below graph clearly shows that passenger vehicle market in India has posted a robust growth

between FY10 to FY13, and the demand is declined in FY14.

Passenger Vehicle Sales in India: FY 2012-13 vs. FY 2013-14

Domestic passenger vehicle sales are declined by 6 percent during April-March 2014 over the same

period last year. On the other hand, export sales are grown by 6 percent for the same period. Below

graphs represents the same.

http://www.currentweek.com/top-10-best-selling-passenger-cars-in-india/


41 TATA MOTORS

Month on Month production growth over last year same period

Passenger vehicle production in India has declined in 10 out 12 months over the last year same

period. This continuous decline in volume makes overall year production by 5 percent regrowth.

http://www.currentweek.com/wp-content/uploads/2014/06/Passenger-Car-Sales-in-India-FY-2013-14.png

http://www.currentweek.com/wp-content/uploads/2014/06/Passenger-Car-Production-Growth-Over-Last-Year-Same-Period-FY-2013-14.png


42 TATA MOTORS

Tractors

Tractors: Company Wise Market Share In India

India has produced around 5.8 Lakh tractors in FY 12-13. Mahindra & Mahindra, TAFE, Escorts,

International Tractors and John Deere companies stands in top 5 In terms of market share, followed

by New Holland, VST, Same Deutz, Force, HMT and Punjab Tractors.


43 TATA MOTORS

SOME OF THE AUTOMOBILE COMPANIES THAT ARE DOING BUSINESS IN

INDIA ARE:


44 TATA MOTORS

Part: 3

Company profile


45 TATA MOTORS

Company profile:-

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of

INR 2, 32,834 crores (USD 38.9 billion) in 2013-14. It is the leader in commercial vehicles in

each segment, and among the top in passenger vehicles with winning products in the compact,

midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and

fourth largest bus manufacturer.

The Tata Motors Group’s over 60,000 employees are guided by the mission “to be passionate in

anticipating and providing the best vehicles and experiences that excite our customers globally.''

Established in 1945, Tata Motors’ presence cuts across the length and breadth of India. Over 8

million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company’s

manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),

Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).

Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat

Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat


46 TATA MOTORS

powertrains. The company’s dealership, sales, services and spare parts network comprises over

6,600 touch points, across the world.

Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged as an

international automobile company. Through subsidiaries and associate companies, Tata Motors has

operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar

Land Rover, acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company,

South Korea’s second largest truck maker.

The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products

in the Korean market, while also exporting these products to several international markets. Today

two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2006,

Tata Motors formed a 51:49 joint venture with the Brazil-based, Marcopolo, a global leader in body-

building for buses and coaches to manufacture fully-built buses and coaches for India – the plant is

located in Dharwad. In 2006,

Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of

Thailand to manufacture and market the company’s pickup vehicles in Thailand, and entered the

market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa

Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north of Pretoria. The plant can

assemble, semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging

from 4 tonnes to 50 tonnes.

Tata Motors is also expanding its international footprint, established through exports since 1961.

The company’s commercial and passenger vehicles are already being marketed in several countries

in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS and Russia.

It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal.

The foundation of the company’s growth over the last 68 years is a deep understanding of economic

stimuli and customer needs, and the ability to translate them into customer-desired offerings through

leading edge R&D. With over 4,500 engineers, scientists and technicians the company’s

Engineering Research Centre, established in 1966, and has enabled pioneering technologies and

products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India,

and in South Korea, Italy, Spain, and the UK.


47 TATA MOTORS

It was Tata Motors, which launched the first indigenously developed Light Commercial Vehicle in

1986. In 2005, Tata Motors created a new segment by launching the Tata Ace, India’s first

indigenously developed mini-truck. In 2009, the company launched its globally benchmarked Prima

range of trucks and in 2012 the Ultra range of international standard light commercial vehicles. In

their power, speed, carrying capacity, operating economy and trims, they will introduce new

benchmarks in India and match the best in the world in performance at a lower life-cycle cost.

Tata Motors also introduced India’s first Sports Utility Vehicle in 1991 and, in 1998, the Tata

Indica, and India’s first fully indigenous passenger car.

In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano. The Tata Nano has been

subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal and

Sri Lanka. A development, which signifies a first for the global automobile industry, the Nano brings

the joy of a car within the reach of thousands of families.

Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative

fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It

has also been implementing several environment-friendly technologies in manufacturing processes,

significantly enhancing resource conservation.

Through its subsidiaries, the company is engaged in engineering and automotive solutions,

automotive vehicle components manufacturing and supply chain activities, vehicle financing, and

machine tools and factory automation solutions.

Tata Motors is committed to improving the quality of life of communities by working on four thrust

areas – employability, education, health and environment. The activities touch the lives of more

than a million citizens. The company’s support on education and employability is focused on youth

and women. They range from schools to technical education institutes to actual facilitation of

income generation. In health, the company’s intervention is in both preventive and curative health

care.

The goal of environment protection is achieved through tree plantation, conserving water and

creating new water bodies and, last but not the least, by introducing appropriate technologies in

vehicles and operations for constantly enhancing environment care.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.


48 TATA MOTORS

Milestones:

2011

Tata Venture launched

Launch of Tata Divo Luxury Coach and Tata Starbus Ultra

Tata Sumo Gold introduced

Range Rover Evoque launched in India

New Tata Indica Vista launched

Tata Magic IRIS and Tata Ace Zip launched

Tata Indica eV2 introduced with 25 kmpl mileage

Tata Pixel, a city car concept for Europe, displayed at the Geneva Motor Show

Refreshed Tata Indigo Manza introduced

Tata Prima ConsTruck range launched

Tata Motors unveiled assembly plant in South Africa

Tata Nano began international journey with Sri Lanka

Tata Motors completes 50 years of its International Business

Jaguar Land Rover inaugurated its vehicle assembly plant in Pune

Tata Nano launched in Nepal

HVTL amalgamates into HVAL renamed as TML Drivelines Ltd.

Tata Motors (Lucknow) produced & dispatched the first Hybrid Chassis to Spain

Tata Motors (Dharwad) rolled out the first Tata Ace Zip

Tata 407 celebrated its silver jubilee year

Jaguar celebrates 50 years of iconic E-Type

2012 Tata Motors enters Bangladesh’s new car market

Tata Ace races through the one-million mark in just 2,680 days

Tata Safari Storme, the Real SUV, hits the road

Launch of PT Tata Motors Indonesia

Tata Motors plant at Dharwad comes on stream

Tata Motors enters into distribution agreement in Myanmar

Launch of Tata Ace in South Africa

Launch of Tata Nano 2012


49 TATA MOTORS

2013 Tata Nano becomes the first Auto Brand in India to cross 3 million fans on Facebook

The Tata Indigo eCS enters Limca Book of Records

Tata Motors' Jamshedpur plant rolls out its two millionth truck

Tata Nano offered industry first phenomenon - Swipe your credit card and drive home a Nano

Tata Motors launches the world-class range of Tata PRIMA trucks in Sri Lanka

BUSINESS STRATEGIES

Restructuring of the company

Business goals

E –business initiatives

Joint ventures

Foreign competition

MARKETING STRATEGIES

Ruggedness and performance

Products that redefine the market

Network of dealers

Sales offices

Service stations

Strong market base in the urban and semi-urban areas

ENVIRONMENT ANALYSIS

MACRO ENVIRONMENT:

The external elements that exist outside of a company's control that can significantly impact its performance and ability

to compete in its marketplace.

Supplier:

A supplier, in a supply chain is an

enterprise that contributes goods or services in a supply chain. Generally, a supply chain vendor

manufactures inventory/stock items and sells them to the next link in the chain. Today, the terms

refers to a supplier of any good or service.

http://www.investorwords.com/9649/external.html

http://www.investorwords.com/10504/outside.html

http://www.investorwords.com/3665/performance.html

http://www.investorwords.com/9251/compete.html

http://en.wikipedia.org/wiki/Supply_chain


50 TATA MOTORS

Customer:

A person who buys goods or services

from a shop or business

Competitors:

Any person or entity which is a rival

against another. In business, a company in the same industry or a similar industry which offers a

similar product or service. The presence of one or more competitors can reduce

the prices of goods and services as the companies attempt to gain a larger market

share. Competition also requires companies to become more efficient in order to reduce costs.

Publics:

Communities of people at large (whether or

not organized as groups) that have a direct or indirect association with

an organization: customers, employees, investors, media, students, etc.

MICRO ENVIRONMENT: Factors or elements in

an organization's immediate area of operations that affect its performance and decision-

making freedom. These factors include competitors, customers, distribution channels, suppliers,

and the general public.

Demographic:

Demographics are also used to

identify the study of quantifiable subsets within a given population which characterize that

population at a specific point in time.

Financial:

FINANCIAL usually refersto money matte

rs or transactions of some size or importance: a financial wizard. FISCAL is used especially inconn

ection with government funds, or those of any organization

Political:

Political is about the condition of politic

and security in the domestic market which influence daily activity, including business. Legal is

http://www.businessdictionary.com/definition/person.html

http://www.businessdictionary.com/definition/entity.html

http://www.businessdictionary.com/definition/business.html

http://www.businessdictionary.com/definition/industry.html

http://www.businessdictionary.com/definition/offer.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/final-good-service.html

http://www.businessdictionary.com/definition/price.html

http://www.businessdictionary.com/definition/goods-and-services.html

http://www.businessdictionary.com/definition/company.html

http://www.businessdictionary.com/definition/gain.html

http://www.businessdictionary.com/definition/market-share.html

http://www.businessdictionary.com/definition/market-share.html

http://www.businessdictionary.com/definition/competition.html

http://www.businessdictionary.com/definition/order.html

http://www.businessdictionary.com/definition/costs.html

http://www.businessdictionary.com/definition/community.html

http://www.businessdictionary.com/definition/organized.html

http://www.businessdictionary.com/definition/group.html

http://www.businessdictionary.com/definition/association.html

http://www.businessdictionary.com/definition/organization.html

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/employee.html

http://www.businessdictionary.com/definition/investor.html

http://www.businessdictionary.com/definition/media.html

http://www.businessdictionary.com/definition/factor.html

http://www.businessdictionary.com/definition/element.html

http://www.businessdictionary.com/definition/organization.html

http://www.businessdictionary.com/definition/operations.html

http://www.businessdictionary.com/definition/performance.html

http://www.businessdictionary.com/definition/decision-making.html

http://www.businessdictionary.com/definition/decision-making.html

http://www.businessdictionary.com/definition/freedom.html

http://www.businessdictionary.com/definition/competitor.html

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/distribution-channel.html

http://www.businessdictionary.com/definition/supplier.html

http://www.businessdictionary.com/definition/general.html


51 TATA MOTORS

about the bureaucracy or regulation that should be fulfilled when we want to open a business. This

is also an important factor because without obeying laws, rules, and regulation in the country, it is

almost impossible to establish market there. Tata Motors was established in India, so Tata Motors

has to concern on laws, rules, regulation, and political stability in India. But since Tata Motors has

many subsidiaries in many countries, Tata Motors has to obey the host country’s laws also. In

2008, Tata Motors bought over Land Rover and Jaguar from Ford Motor. Since then, Tata also has

to concern on the UK laws and regulation (Carty, 2008). Moreover, as the first company to be

listed in New York Stock Exchange, Tata Motors also has to concern on US politics..

Generally, the political factor in the company’s macro environment such as: tax policy,

government regulations, and laws. It is famous that India is one of the countries which have a

complicated bureaucracy, this is one of the obstacles if establishing business there (Sastry, 2005).

Political unstable such as wars or conflicts also cause inflation and may affect oil price in one

country. High inflation cause the government has to rise up prices, and oil price is the common

price to get raised. And it is automatically the higher price of oil will affect the sales of cars

(Wardell, et al., 2008).

Economical:

The condition of economy in recent

time or in the future can influence the growth and strategy of the company. This is very important

because Tata Motors is a multinational company. Tata Motors has to understand the trend of

economic growth in every single country that they do business with. This factor tells about the

economical factor that surrounding the company such as: economy fluctuation, monetary and

fiscal policy, government spending, unemployment level, interest rate, exchange rate, Gross

Domestic Product (GDP) per capita, etc.

In the domestic market, Tata Motors has to pay attention to the economic condition of India. India

is a developing country with GDP per capita = $ 3,200 and $ 3.68 trillion national purchasing

power (CIA, 2009). As been affected by the depression of global economic, India’s automobile

industry also has to bear the consequences. The increase of material price forced Tata Motors to

increase its truck price of 3.5% which lead to decrease in demand (Mapsofindia, 2010).

In the international market, Tata Motors aims more to developing countries and middle-class

family (Peacock, 2008). Each and every country has their own exchange rate or currency and it

keep on changing every time. So for being a multinational company, Tata Motors has to concern

in any changing of countries currency, especially US Dollar because Tata Motors also listed in

New York Stock Exchange (NYSE, 2010). Inflation is also one of the factors, because it affects


52 TATA MOTORS

the interest rate for doing investment in a country (Russell, 2006). The increase or decrease of

Inflation, will lead to a lower or higher interest rate. Looking deep to the economical macro

environment may help Tata Motors in price setting, demand, cost, and decisional making in the

company.

Cultural:

Culture refers to the cumulative

deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies,

religion, notions of time, roles, spatial relations, concepts of the universe, and material

objects and possessions acquired by a group of people in the course of generations through

individual and group striving.

Culture is the systems of knowledge shared by a relatively large group of people.

Technological:

Technological environment could

affect raw material, operation, product, and company services. The development of technology

can give huge opportunity to increase the product output in the company. Government

intervention through tax policy and laws also play important role in the development of

technology. The willingness to do innovation and taking risk seems to be the important component

in this factor. Technological environment such as: The impact of changes in technology, new

invention and development, cost and use of technology, and information technology development.

This factor could give a competitive advantage to the company.

As one of the giant automobile company, Tata Motors has to adapt and develop their product to

the technology. The adaptation is not only in the factory machines but also in the car parts. Tata

Motors allocate 2% of their Sales to Research & Development Department (Tata Motors, 2010).

Now, they are working to make environmental friendly buses such as hydrogen fuel cell buses and

hybrid cars (Doggett, 2010).

Not only in the ‘real world’, but Tata Motors also expand their services through internet. Tata

Motors has on Online Booking Services which allow customers who has problem with their car to


53 TATA MOTORS

book date to send their car to their workshop. Now, customer also can purchase Tata Nano

through internet, Tata Motors expand their business to e-commerce marketing (Marathe, 2009)

Nature:

SWOT ANALYSIS

STRENGTH:

Top plyers in the world in terms of tractors sold.

The company’s market share.

The company’s ability to introduce new products

The company has established its brand name.

WEAKNESS:

The company is highly dependent on the rural sector.

They need to better relationship with customer.

Opportunities:

Scope for the demand to increase

THREATS:

The company has a history of having invested in unrelated diversifications such as telecom,

holiday and resort inns, financial services, etc.

The entry of foreign players in the tractors segment could pose a threat to the company as

these foreign players are technically more competitive than tata motors.

The company’s conclusion: This can be seen in the marketing variables which are the basis

for segmentation such as age and geographic variables. In a competitive market, both companies

must identify and target different market segments in order to remain at the cutting edge.


54 TATA MOTORS

Differences between the companies are evident with respect to product, pricing, place and

promotion

Performance

Ability to deliver as per consumer

Both domestically and overseas

Potential in market:

CAGR 20%

Potential buyer

Past performance and potential in the market implies the expected growth of company

Internationalization Method: Tata Motors ways to international business such as:

joint-venture, subsidiary, exporting, franchise, and dealer distribution. Tata Motors used Joint-

venture or associate companies to touch Europe market (Ibef, 2010). They associated with

Hispano Carrocera in Spain and become Tata Hispano. Tata Hispano produces coach, big buses,

large cars, and regional transport (Auto, 2009). In 2009 Tata Motors bought 100% stake of this

company (Indian Info Tech, 2010).

Subsidiary or acquisition means when a company is owned and controlled by its parent company

after has been acquired (Lennon, 1999). Tata Motors has 30 subsidiaries and 20 of them are

outside of India. They gained almost Rs. 6500 crore revenue from the subsidiaries in 2006 which

contributed almost 20% of the group revenue (Tata Sons Ltd, 2007). The most profitable

subsidiary is Tata Daewoo Commercial Vehicle (TDCV) in South Korea and Telco Construction

Equipment Company (Telcon), cooperate with Hitachi in India (Tata Sons Ltd, 2007).

Besides doing joint-venture and subsidiary, Tata Motors also exports some of their products. In

2008, Tata Motors exported more than 33,000 units (Tata Motors, 2009). The exported country is

spread in 5 continents and more than 70 countries. In the year 2006, Tata Motors exports reached

11% of its total sales (Onkvisit and Shaw, 2004); they focused in South Africa market in that year

and exported almost 33% of the total export (Economic Times, 2006).

Tata Motors has franchisees in some countries such as: Kenya, Bangladesh, Senegal, Russia, and

Ukraine (Tata Motors, 2010). In addition, they have dealers to distribute their cars to their

customers in Venezuela (Tata Sons Ltd, 2010).


55 TATA MOTORS

BRAND:

TATA GROUP is a big brand, in India everyone know for Tata motors. But this company enter

almost every industry field. This brand popular for product quality, service, value.

Tata group have so total 93 company there are


56 TATA MOTORS


57 TATA MOTORS

Automotive :-

Zest -

,bolt-

jaguar-


58 TATA MOTORS

Nano -

Xenon-


59 TATA MOTORS

Safari storme-

tata batteries-


60 TATA MOTORS

Tata sumo gold-

sumo grande mk II-

tata venture-


61 TATA MOTORS

Tata Indica vista-

Tata aria-

indigo ecs-


62 TATA MOTORS

land rover-

Manza -


63 TATA MOTORS

Tata trucks-


64 TATA MOTORS

Tata buses -

Financial: - Tata capital, Tata aig, Tata aia, Tata mutual fund


65 TATA MOTORS

Food and beverage :- Tata tea , Tata salt, Tata flavoritz, Tata I – Shakti salts, Tata I-Shakti dal,

Tetley, Tata good earth teas, Tata grand tea & coffee, Tata vitax, Tata jemca, Tata laager, Tata

coffee, Tata eiht o’clock coffee, Tata activate, Tata Himalayan, Tata water plus, Tata gluco plus


66 TATA MOTORS

Hotels and realty :- taj hotels , taj vivanta , taj gteway , taj safaris,taj air, taj quilon,Bombay

brasserie, the pierre (new York),blue Sydney,taj cape town, ginger hotel, shubh griha, taj real estate

,

Products: - skinn perfumes, Tata swach, Tata ceramics crockery, Tata strider bicycles, Tata

Voltas air conditioners.


67 TATA MOTORS

Retail:- croma, poltrona frau group design center, world of titan, sonata,fastrack, eye+,tanishq,

zoya, Tata gold plus, westside,land mark, star bazaar,

Services :- Tata docomo, steel junction,auto junction, straightline.in,tata photon , tata sky.


68 TATA MOTORS

All products are globalize, tata group not only doing business .they doing also social activity there

is like

Human Resource Development Program

The Human Resource Development Program (HRDP) was initiated in 2006 in recognition of the

corporate leadership and specialist roles that HR managers are required to fulfil.

Each year HRDP recruits the best talent from premier Indian business schools and Tata

companies, based on their performance, interest and capabilities, and trains them for a year with

rotations through sub-functions such as recruitment and sourcing, performance management

system, training and development, employee relations, community development, etc. The

programme ensures accelerated long-term growth through customised as well as certified training

and development during this period.


69 TATA MOTORS

Test drive:-

To drive (a motor vehicle) to evaluate performance and condition and to test the roadworthiness of

a vehicle one is considering buying.

Test drive is vitally important for every car companies, as by offering test drives, customers make

their bookings.

The key to successful booking is test drive. Test drive gives high convertibility to sales, customer

are happy with the vehicle, then they make their booking. In test drive, customer are offered to drive

the test drive vehicle of their choice to get the feel and evaluate the performance of the vehicle.

Customers are offered test drive by the sale executive and event doorstep test drive also offered to

all customers who wishes to take test drive from their house. This build a trust and confidence

among the customers about the server offered.


70 TATA MOTORS

Things done in a test drive:

The test drive is made sure that it is clean, shining, well maintained with no defects or damage, good

hair perfume is used, and good ideal is placed on the dashboard

The sales executive drive the car for 10 minutes and lets the customer feel the experience of the car,

whereby during that the sales executive explains the car details and space of the car by

demonstrating.

Then the customer is offered to drive the car for a minimum of 20 minutes where the sales executive

has reached to a point where the road is free of traffic and smooth with no obstacles majorly.

During this time while the customer driving, the sales executive doesn't talks, but lets the customer

drive in peace and letting them feel the power and experience of the car.

After the test drive, the customer is to fill the feedback form, which is a test drive feedback from

and if the customer is happy with the test drive, then the process of booking starts.


71 TATA MOTORS

AWARENESS

Many people doesn't know the space and features of tata motors super racing so making them are

of the car is the motive of this project when it is done by offering test drive to valued customers

details are collected by the sill executive and are communicate to get the stage type then and there.

Setup

This has increase the growth of tata motors super which has resulted from test drives to many

booking. Customers are happy with the car, as it gives good mileage, good leg space, stylish new

interior design, features and benefits far better than the competitors in market like dots, bolero maxi

truck.

So by increasing the awareness there has been more enquiry, more booking ultimately happy

customers.

Thus awareness is a vital change that tata motors brought up which has made the valued customer

aware of the car super ace before going to other competitor.

Every day the customers are offered test drives, and it happened very effectively with a minimum

of super ace test drives per day. so every day more and more customers get to know about the new

super ace features and experience. that makes tata motors super ace better than the others.


72 TATA MOTORS

My work at prerana motors

132/15,

Veeni court

Lalbagh road

Bangalore -560027

Email : [email protected], [email protected]

www.preranamotors.com

ph: 40055064

40055000

mailto:[email protected]

http://www.preranamotors.com/


73 TATA MOTORS

Prerana motors:

commenced its operation in 1991, today prerana is 20 years young, 1200 people strong and

presently operating from 39 location , and provides comprehensive –ie, sales ,service and spare

parts.

The company has multi location showrooms and service workshops with state of are facilities,

trained manpower, genuine spares and complete range of products and service to meet every

requirement of the customers.

The company has been rated best by customers and in industry surveys because of its constant

endeavour to deliver prompt &reliable service

Timing 9 am-6 pm


74 TATA MOTORS

ABOUT THE CAR

MOTORS

SUPER ACE


75 TATA MOTORS

SUPER ACE


76 TATA MOTORS

Super Ace: World class product

for Indian market

Super in

Performan

ce!!

Super in

Space!!

Super in

Deployme

nt!!

Super in

Comfort!!


77 TATA MOTORS

Super in Performance

Tata 475 IDI TCIC Engine

GBS 65-5/5.07 Gearbox

TCIC Engine ( 4 cyl)

70 HP Output

135 Nm Torque

1405cc Engine capacity

125 km/ph Max Speed

Grade ability 39%

125/

p

h

M

a

x

S

p

e

e

d

Grade ability 39%

5 –speed gearbox

Overdrive gear

Fuel efficient

Faster trips

Easy gear shifting


78 TATA MOTORS

Super in Space

Ideal for voluminous loads

Super in Comfort

Front Independent Suspension:

Deck length - 2.63m (8’7’’)

Drop-side Load Body

Deck length

8’7”

High Comfort & SMOOTH Handling


79 TATA MOTORS

Car like cabin

Power steering

Bucket seats

Independent suspension

Blower & AC (option)

Digital clock

Mobile charger


80 TATA MOTORS

Styling Features

ORVM on both sides

Sunvisor on driver’s side

Provision for mobile charging

and lighter

Windscreen wiper( butterfly)

and washer


81 TATA MOTORS

Maneuverability

Turning Circle Dia of 10.2m

only


82 TATA MOTORS

Super in Earnings

The Super ACE Advantage

• Payload of 1 ton

• 5 speed gearbox translating to higher fuel efficiency

• Ideal vehicle for long distance deployment & narrow lane maneuvering in cities

• Higher speed and comfort meaning more number of trips in the day

• More space meaning more goods in a trip

• Long Service Interval : 10,000 kms

The Super Ace Promise…

Driving Experience like never before!!

Power steering – ease

of driving


83 TATA MOTORS

So Earnings like never before!!

Lesser time per trip…

More trips per day/ month!!

More load/volumes per trip…

Longer lead capability

Car-like comfort and style

Large Space for more goods


84 TATA MOTORS


85 TATA MOTORS

The competitions

The main competitor of tata suer ace is m&m bolero maxi track

There has been major sales in m&m for its bolero maxi track, which almost every business person

has bolero maxi truck as their vehicle mostly, the second comes super ace.

What m&m is offering is 3 years

Why is there a major sale for m&m bolero maxi track rather than tata super ace being the second

best?

The answer to this question will be given with raw facts and information regarding both the

vehicle models below:


86 TATA MOTORS

I have visited many market like k.r puram,k.r market,biridi markt,kengari market etc. and many

more which place has awide range of mostly bolero maxi truck. I personally asked them why they

prefer m&m bolero maxi track other than many vehicle , the answers we got were:

More mileage

Customers comfort

Less maintenance

Tyer life is good

More service warranty

Part’s cost is very low

Vehicle service is very good

But in due respect ,when i went across them with live facts and demostrations with

live examples and actual dispayed informmation with figures and proofs, we have overcome them

by the difference of tata super ace & m&m bolero maxi truck:


87 TATA MOTORS

Engine

Engine Type

Displacement

Power

Torque

Fuel Type

Dimensions

Length

Width

Height

Wheel Base

Ground Clearance

Kerb Weight

Other Specification

Seating Capacity

Fuel Tank Capacity

Tata SUPER ACE

Tata 475 TCIC(BSIII)

1405.00cc

70 HP @ 4500 RPM

13.8 MKG @ 25000 RPM

NA

Tata SUPER ACE

4340

1565

1858

2380

160

1180

Tata SUPER ACE

NA

38.0

Mahindra Bolero Maxi

Truck

Compression Ignition, Four-

stroke, DI, TC

2523.00cc

63 BHP (46.3 kW) @ 3200

rpm

195 Nm @ 1400-2200 rpm

Diesel


Truck Plus

4855

1700

1725

3150

170

NA


Truck Plus

1+1

45.0


88 TATA MOTORS

Maximum Speed

Transmission Type

Gears

Clutch Type

Front Suspension

Rear Suspension

Steering Type

Minimum Turning Radius

Front Brakes

Rear Brakes

Wheel Size

Tyres

Parking Brake

Maximum Gradability

Maximum Restartability

Loading Height

125

Synchromesh 5+1

6 speed

Single plate dry friction

diaphragm type

Mc Pherson strut with anti-roll

bar

Leaf Spring with Telescopic

Shock absorber

Power assisted hydraulic Rack

& pinion

5.1

Hydraulic dual circuit,vaccum

assisted, automatic wear adjust

Drum Brakes

2380

165 R14 LT 8PR

NA

39

NA

NA

NA

NGT 520

5-speed

Single Plate Dry Clutch

Rigid with semi-elliptical leaf

springs, with anti-roll bar at

front

Rigid with semi-elliptical leaf

springs

Manual (standard), Power

steering (optional)

5.5 metres

Disc

Drum

3150

195/80 R15 LT

NA

NA

NA

NA


89 TATA MOTORS

Loading BodyHeight

Loading BodyLength

LoadingBodyWidth

Maximum GVW

2630

1460

300

2180

2500

1620

458

2620

Price

City

Price

On Road Price

Bangalore

413610

501421

Bangalore

462000

560743

With a price of about rs Rs.59322 less than the bolero maxi truck which is a major plus point that

will attract the customers.

Plus super ace gives a mileage of 10 kmpl on road in city as per the feedback received by the

customer and even on mileage test runs, super ace has been successful than bolero maxi truck, but

bolero maxi truck being not too far. Bolero maxi truck mileage is almost similar to super ace,

But super ace gives more space to commercial vehicle, which attracted more the business persons.

Where as In the case of bolero maxi truck, the advantage tata super ace has over it is

The styling, look, spacious


90 TATA MOTORS

Research objective


91 TATA MOTORS

The scope of my research is determined by what i want to achieve (my objectives) and the types of

decisions it needs to help me make.

Before i get started it is essential to define my objectives. This is the most important part of the

process and will avoid wasting time and effort in later stages. Like

Questions:

• What is the purpose of the research?

• What information is being sought?

• How will the information be used?

Four stages of research study

Conducting a successful research study involves four separate stages:

1. Checking if the same or similar research has been carried out in the past;

2. Reviewing any existing relevant data;

3. Determining when the information is needed and how much you can spend to obtain it;

and

4. Deciding how the data will be used, and by whom?

If my research will help me to make a significant decision (for example, introducing a new

product or starting a business), then it’s a good idea to think about employing a professional

market research organisation or consultant. A research expert will have the knowledge and

experience to get information which is reliable.

If the cost is prohibitive me buy at least a few hours of professional research time to get advice in

conducting my own market research. This could help me avoid obtaining flawed data which will

produce misleading and potentially costly conclusions.


92 TATA MOTORS

Chapter: 5

Research Methodology


93 TATA MOTORS

RESEARCH DESIGN :

I propose to first conduct an intensive secondary research to understand the full impact and

implication of the industry, to review and critique the industry norms and reports, on which certain

issues shall be selected, which I feel remain unanswered or liable to change, this shall be further

taken up in the next stage of exploratory research.

This stage shall help me to restrict and select only the important question and issue, which inhabit

growth and segmentation in the industry.

The various tasks that I have undertaken in the research design process are:

Defining the information need, Design the exploratory, descriptive and causal

research.

RESEARCH PROCESS -

The research process has four distinct yet interrelated steps for research analysis it has a logical and

hierarchical ordering:

- Determination of information research problem.

- Development of appropriate research design.

- Execution of research design.

- Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and specific

procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and

ongoing.


94 TATA MOTORS

DESCRIPTIVE RESEARCH:

STEPS in the descriptive research:

-Statement of the problem

- Identification of information needed to solve the problem

- Selection or development of instruments for gathering the information

- Identification of target population and determination of sampling Plan.

- Design of procedure for information collection

- Collection of information

- Analysis of information

- Generalizations and/or predictions

TARGET POPULATION:

It is a description of the characteristics of that group of people from

whom a course is intended. It attempts to describe them as they are rather than as the describer

would like them to be. Also called the audience the audience to be served by our project

includes key demographic information (i.e.; age, Occupation etc.).The specific population

intended as beneficiaries of a program. This will be either all or a subset of potential users, such as

adolescents, rural residents, or the residents of a particular geographic area. A population to be

reached through some action or intervention; may refer to groups with specific demographic

or geographic characteristics. The group of people you are trying to reach with a particular strategy

or activity. The target population is the population I want to make conclude an ideal situation; the

sampling frames to matches the target population. A specific resource set that is the object or target

of investigation. The audience defined in age, background, ability, and preferences, among other

things, for which a given course of instruction is intended. I have selected the sample trough Simple

random Sampling


95 TATA MOTORS

Statement of the problem

Tata super ace main competitor is Mahindra bolero maxi truck. All the customer think that only

alternative of TATA super ACE is bolero maxi truck. As they are giving more warranty service

and brand building than the tata super ace , and super ace vehicle newly lunch in market, so that

why many customers are do’t know about super ace, so it was the main problem of the project, as

whenever customer are coming, they are comparing everything with the bolero maxi truck.

The project titles i was working for

‘Awareness of super ace to the giving test drives and giving comparison and advantages to the

customers and taking feedback those who are already too this car . I’m also took feedback from

bolero customers, it was very challenging work for me.

Sample size

the respondents were about 60 people in 2 months, who has taken the test drives, mainly

vegetable, cement, rice , other customers. I have personally communicate with most of the

customers who took the vehicle of TATA super ace, and I have inquired them are they happy with

the vehicle or not. And what other cars they are having in their mind.

Data collection

Primary data

The tool used for primary data is entirely based on personal enquiry to customers through face to

face contact.


96 TATA MOTORS

Secondary data

The main source of secondary data id from the data base of the company , that lies with the sales

executives of their customer respectively . every sales executive has their own list of customers

who they reach and communicate in order to convince them to take the test drive and convert them

into booking by clearing their doubts and showing them the advantages over the competitors in the

market.

Tools and techniques used in the analysis

I was taught the difference between corporate sales and retail sales, where I learned why we need

to focus more on the corporate customers and privilege them with benefits and extra care.

CORPORATE SALES APPROACH

Territory mapping

Background research

First contact profiling

Relationship management

Hunting

Proposal making

Selling

Closure


97 TATA MOTORS

I understand know why this word is important for every business

SANKALP Stands for-

S- Smile and greet

A – Analyse need

N- Need based demonstrations

K – Key to test drive

A – Acknowledge and eliminate doubts

L –lead to close

P– Promise a relationship


98 TATA MOTORS

Findings


99 TATA MOTORS

The major finding i found by surveying the customer on site when I visit wear:

They did not know about the spacious advantage of super ace over bolero maxi truck, not

until they actually experienced it at the time of test drive and they finally become happy

and satisfied with the car.

The comfort, the great stylish look that come with reasonable price was unknown to them

to them, which was approx. . . .59000 lesser then the bolero maxi track

More safety lies as they changed the suspension which was a complaint from the previous

version of super ace. Thus the new suspension making the comfort level more enhance and

efficiency.

they wear unknown of the features and advantages tata is giving to them with the super

ace, so after acknowledging them during the test drive, they were really happy and

satisfied and booked then and there it self.

Super ace is a perfect car for commercial business as they look for the comfort and safety

of their passengers, plus the vehicle maintenance, which created a doubt in them, was

overcome by acknowledging the review and clearing every doubt with actual figure and

data shown to them.

The sales executives are trained with every details of the cars, plus other vehicle of tata

and also competitors’ vehicle and their details too. They can't give false information, so

they updated themselves day to day about the competitors also.


100 TATA MOTORS

Data analysis


101 TATA MOTORS

How i interpreted

the whole enquiry was generated by myself only .i work out by going in the field, talking to all

potential customers, visiting every truck stands.

I went mark and I ask them some question relevant to the vehicle and make them fill the feedback

from which has the grading scale of 1-10, where customers gives the grade and recommends

something and writes about their experience.

Customers are very nicely dealt with even though they ignore and often me, I tried to talk politely

and convinced them to give feedback.

What I learned is that I would not sell to sell.

Focus should not be intend on selling but rather convincing the customers by enhancing customer

delight.

Then I learned how to talk with customer and convince them.

We are the tata motors employees should always start from

Front features- the intro, background, brand building of the car

Co-passenger side –tyre, ground clearance, suspension, side indicators.

Passenger side – power windows, reading lights, boot space.

Rear features- style features, foot step, holder, sensors, fuel tank inputs, tool

kit, and spares.

Driver side – wheel base, suspension, graphics, body coloured, handles.


102 TATA MOTORS

RESULT:

After Sales Service (Satisfied - Y/N)

Bolero maxi truck tata super ace

100% of respondents 70% of the respondents approached were satisfied with the tata service . 30 %

not satisfied.

100% of respondents 80% of the respondents approached were satisfied with the m&m service .

20 % not satisfied

Observation:

As majority of the respondents are satisfied with the service of TATA super , the company should

be maintain the good standard .

20%

80%

no

Yes

30%

70%

no

yes


103 TATA MOTORS

Bolero maxi truck & TATA SUPER ACE Average Payload Carried by

Vehicle (in tonnes)

1 6

1.5 8

1.8 1

2 8

2.5 2

3 3

4.5 1

Bolero maxi truck

Observation:

Tata super ace customers Maximum time they use to carry (1 to 1.5 (ton) )

But bolero maxi truck’s customers maximum time they use to carry (1.5 to 2 (ton))

5

12

5

1 1

6

1 1 1 12

1 1

5

12

5

1 1

6

1 1 1 12

1 10

1

2

3

4

5

6

7

1 1.5 1 1.5 2 1 1 1.5 2 1.5 2 1 2 1.5

1 1.5 1.8 2 2.5 3 4.5NO

OF

RES

PO

ND

ENTS

PAYLOAD CARRIED (TON)

Count of bolero maxitruck Average PayloadCarried by Vehicle (intonnes)

Count of tata super aceaverage payload carriedby vehicle/ton

1 16

1.5 9

2 4

Tata super ace


104 TATA MOTORS

Mileage Offered by the Vehicle (Kms / litre)

11 3

12 8

13 3

14 2

15 2

16 1

Bolero maxi truck

Observation: customers not getting good mileage from tata super ace

1

2

7

1 1 1

2

6

1 1 1

2

1 1 11

2

7

1 1 1

2

6

1 1 1

2

1 1 10

1

2

3

4

5

6

7

8

9 10 10 9 10 12 9 10 8 9 10 10 8 10 10

9 10 11 12 13 14 15 16

NO

OF

RES

PO

ND

ENTS

MILEAGE OFFERED BY VEHICLE

Count of Bolero maxi truckMileage Offered By TheVehicle (Kms / litre)

Count of tata super acemileage offered by thevehicle (kms/liter)

8 2

9 5

10 21

12 1

Tata super ace


105 TATA MOTORS

Distance travelled daily (k.m)

Observation:

Tata super ace customers are don’t like to go for long trip.

Bolero maxi truck customers are very comfortable with long trip.

Tata company should be change some features as per customer requirement .

1 1 1 1

5

1 1

3

2

1

3

5

1

3

20

25

30

40

50

60

80

10

0

12

5

15

0

20

0

30

0

45

0

50

0NO

OF

RES

PO

ND

ENTS

DISTANCE TRAVELLED DAILY(KM)

1

4

1

6

3

4

1

3

1

4

1

20 25 27 28 29 30 34 35 38 50 70NO

OF

RES

PO

ND

ENTS

DISTANCE TRAVELLED DAILY(KM)

Total

Bolero maxi truck

Tata super ace


106 TATA MOTORS

Earning profit per trip:

Tata super ace

M&M bolero maxi truck

5

1

4

5

2

1

3

1

6

1

2 0 0 2 5 0 2 8 0 3 0 0 3 5 0 3 7 0 3 8 0 3 9 0 4 0 0 4 5 0

NO

OF

RES

PO

ND

ENTS

Total

1

3

1

2

1

3

1 1 1 1

4

5

1

2

1 1

0

1

2

3

4

5

6

120 150 200 250 280 300 340 350 370 385 400 500 700 834 850 900

Total


107 TATA MOTORS

Type of Load Carried (application)

Tata super ace

Bolero maxi truck

4

2

1 1

4

1 1

2

1

11

1

0

2

4

6

8

10

12

NO

OF

RES

PO

ND

ENTS

Total

1 1

3

1

2

20

1

Total


108 TATA MOTORS

Rate on vehicle (on a scale of 10)

Observation:

Customers give almost same rate for both vehicles

2

1 1 1 1 1 1 1 1

2 2

1 1 1 1

4

3

1

3

2

1 1 1 1 1 1 1 1

2 2

1 1 1 1

4

3

1

3

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

6 8 5 6 7 8 9 5 7 8 9 5 8 4 6 7 8 6 7

4 5 6 7 8 9

Count of tata super ace rateyour vehicle (value formoney) on a scale of 10:-

Count of bolero maxi truckRate on Vehicle (On scale of10)


109 TATA MOTORS

Customer choice:

Observation:

Maximum people choose bolero maxi truck

Tata super ace not far from bolero maxi truck’s millstone

No one choose Leyland dost vehicle……

It’s means tata super ace vehicle market demand is growing….if company give time then it’ll be

capture whole market.

37

20

0

5

10

15

20

25

30

35

40

bolero maxi truck super ace (dost )

Total


110 TATA MOTORS

Conclusion


111 TATA MOTORS

I would conclude my report by saying that there many competitors in the market and we never

know when a new competitor with a new car or old car with new refreshed features and offers are

coming every day. so to updated with the auto mobile sector of India is the main thing tata motors

should take in mind, and in order to generate more sales, they should know the tool to reach the

customers as a whole. so that by going one by one to every customers to commercial segments,

they should in return come to the showroom to inquire about the car and ask for the test drive

themselves,So the main conclusion i must give is a new advertising campaign should be made

where the focus should not be only made about the’ happy legs’ but also the extended warranty,

the new effective suspension and the ease of service that to be served to the customers, so that the

brand creates a trust in the mind of customers about the new super ace ,that would attract them and

create a chance for every commercial business and also other segments to take an interest in taking

/asking for a test drive in the showroom by not reaching to each and every customer, why not

attracting the customer to come to the showroom and take a test drive.


112 TATA MOTORS

Limitation


113 TATA MOTORS

Limitation of the project

No project is ideal .in reality the researcher always come across different problem which act as

limitation of the project such as…………..

Biased reply of the respondents:

I think and i found that there are many customers who give response biasedly considering

something in the mind like ……………there answer will make effect on their relation

No availability of data or other relevant information:

i did not get the relevant information about some factors like discount strategy , pricing strategy

etc.

Time constraints:

I get only 2 months’ time for this survey in this small span of time i can't gather some useful

information and also i had to cover both taluks in that time and this was very hard to cover.

Budget constraints:

They didn’t give me any remuneration in terms of the money or any allowances that's why i could

not do my work more efficiently.

Company’s policy is that not to disclose confidential data etc.:

Company’s policy is that not to disclose any confidential data to trainees and because of this

reason it effects on my project.


114 TATA MOTORS

Recommendations


115 TATA MOTORS

Some suggestions and recommendations are:

Promote and advertise the extended 1 year warranty very sharply that will attract and

change the mind sets of the customers thinking to buy the bolero maxi truck

Increase the service easiness and more innovation more advance and less time consuming

way of after sales service and pleasing the customer by keeping in touch.

The new suspension which has been added to the new super ace has to reach the

customers. Not when they are just inquiring. Every people should know the new changes

of the new super ace.

Motivating the sale executives more by increasing their rewards and commission of selling

more tata super ace vehicle per month.

Keeping the test drive rate high every time and should reach the customers of all segment

by convincing them for the test drive. as test drive brings the main change in the mind of

the customers, as the conversation happens from test drive to bookings

Focusing less on event and more on giving the test drives to different customers even

though enquiry is not there. but to go out and search for commercial business and convince

them to give vehicle review ,


116 TATA MOTORS

Annexures


117 TATA MOTORS

The question asked though who have tata super ace:

TATA Super ace

Name:-

age:-

mob:-

owner/driver no of vehicle owned (if owner) Super ace

location:-

average payload carried by vehicle tones

mileage offered by the vehicle km/ltr

distance travelled daily km

no of trips per day

average cost/profit RS /trip

type of load carried(application)

positive aspects of the vehicle 1

2

3

4

negative aspects of the vehicle 1

2

3

4

after sales service by the company -satisfied

yes

no

rate your vehicle (value for money) on a scale of 10:-

have you heard about super ace :

yes

no

(if yes) comments on super ace:-

good car but loading space problem and pick up problem

how did you hear the vehicle super ace

newspaper

radio

television

social media

pamphlet

word of month

friends

tata dealer

saw on road


118 TATA MOTORS

hoardings

whom would you consult before buying a pick up:

choose one:

tata super ace

leyland dost

m&m bolero maxi truck

The question asked though who have M&M bolero maxi truck:

M&M bolero maxi truck

Name:-

age:-

mob:-

owner/driver no of vehicle owned (if owner) bolero maxi truck

location:-

average payload carried by vehicle tones

mileage offered by the vehicle km/ltr

distance travelled daily km

no of trips per day

average cost/profit RS /trip

type of load carried(application)

positive aspects of the vehicle 1

2

3

4

negative aspects of the vehicle 1

2


119 TATA MOTORS

3

4

after sales service by the company -satisfied

yes

no

rate your vehicle (value for money) on a scale of 10:-

have you heard about super ace :

yes

no

(if yes) comments on super ace:-

good car but loading space problem and pick up problem

how did you hear the vehicle bolero maxi truck

bolero maxi truck newspaper

radio

television

social media

pamphlet

word of month

friends

tata dealer

saw on road

hoardings

whom would you consult before buying a pick up:

choose one:

tata super ace

leyland dost

m&m bolero maxi truck


120 TATA MOTORS

Bibliography


121 TATA MOTORS

Bibliography

Reference books

Marketing management – dr. rajan saxena

Research methodology – c r Kothari.

Magazines:

Auto car

Overdrive

Web references:

http://www.moneycontrol.com/

http://www.tatamotors.com/

http://autobei.com/blog/indian-automobile-industry-overview-april-may-fy-2013-14/

http://www.ibef.org/industry/india-automobiles.aspx

http://www.autocarindia.com/auto-news/auto-industry-in-fy-2013-14-a-look-back-in-numbers-

382632.aspx

http://www.moneycontrol.com/

http://www.tatamotors.com/

http://www.ibef.org/industry/india-automobiles.aspx

http://www.autocarindia.com/auto-news/auto-industry-in-fy-2013-14-a-look-back-in-numbers-382632.aspx

http://www.autocarindia.com/auto-news/auto-industry-in-fy-2013-14-a-look-back-in-numbers-382632.aspx

Documents

PROJECT REPORT 2(2014)TATA PROJECT