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A REPORT ON
TATA MAGIC
MAHINDDRA And Mahindra
.
Report submitted in partial fulfillment for the requirements of
Post Graduate Diploma in Management
MAHINDRA AND MAHINDARA
2010
PROJECT REPORT ON
TATA MAGIC
MAHINDRA AND MAHINDRA
S T A R P L A Z A , 3 R D F L O O R , E - 5 6 A R E R A C O L O N Y V I T T H A L M A R K E T , B H O P A L

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Contents page
Introduction.....……………………………………………………………. . 5
Company overview…..……………………………………………. 6
Core values.………………………………………………………………………... 9
Vision and Mission…………………………………………………………………….10
About TATA MAGIC ……………………………………………….………..……….….11
Data collection………………………………………………………………………. 13
Questionnaire………………………………………..………………………………..15
Data Analysis….. ………………………………………………….…………………. 16
SWOT Analysis of TATA MAGIC……………………………….…………………. 26
FINDING AND SUGGACTION…………………………………………………………..28

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INTRODUCTION
The Project assigned to me was ―MARKET RESERCH ON TATA MAGIC‖
The study will help me to know about what is the reason behind to success of Tata
magic, to know the reason of how Tata Magic sales increase per year
The study is scheduled through primary data and other information thereby preparing
Questionnaire, which focus of various variables, and attributes that are important to
know the satisfaction level and the factors affecting the purchase decision.
The survey caused in the BHOPAL & INDORE Dist with the sample size of 140.The
collected data are tabulated and analyzed data and all suggestions are given according
to the analyzed data graphs and charts are used to illustrate the statistical data and
findings

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COMPANY OVERVIEW
The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States
of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of
the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a
vehicle that had proved its invincibility on the battlefields of World War II be ideal for
India's rugged terrain and its kutcha rural roads?
Swift action followed this thought. The Mahindra brothers joined hands with a
distinguished gentleman called Ghulam Mohammed & on October 2nd
, 1945, Mahindra
& Mohammed was set up as a franchise for assembling Jeeps from Willys, USA.
Two years later, India became an independent nation and Mahindra & Mohammed
changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan
post-partition and became the first Finance Minister of Pakistan.
Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved
into a Group that occupies a premier position in almost all key sectors of the economy.
The Group's history is studded with milestones. Each one taking the Group forward. In
fact, today, its total turnover is about 6.3 billion dollars.
Mahindra & Mahindra made the first indigenous Jeep in the country in 1949. Their
innovative spirit also showed during the days when the Company was the leading
importer of steel in the country. J.C. & K.C. Mahindra had to persuade the Indian
Government to buy French rails for the fledgling Indian Railways because they felt that
the British specifications were obsolete and not the best suited. To convince
government officials of the superiority of the French product, they laid down a short
length of rail line with French rails and invited the government authorities for a ride.
During the journey, chilled champagne was served in glasses filled to the brim. Legend
has it that the train raced along, but not a single drop of champagne was spilled, so
smooth were the French rails. Needless to say, they made their point.

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Automotive sector: - The Mahindra Group‘s Automotive Sector is in the business of
manufacturing and marketing utility vehicles and light commercial vehicles, including
three-wheelers. It is the market leader in utility vehicles in India since inception, and
currently accounts for about half of India‘s market for utility vehicles.
Over the years, the Group has developed a large product portfolio catering to a diverse
customer base spanning rural and semi-urban customers, defense requirements and
luxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-
class sports utility vehicle-Scorpio, which bridges the gap between style and adventure,
luxury and ruggedness, and performance and economy.
The Automotive Sector continues to be a leader in the utility vehicle segment with a
diverse portfolio that includes mass transport as well as new generation vehicles like
Scorpio, Bolero and Xylo.
Mahindra has recently launched the Xylo, perhaps the most complete car with luxury
comforts to enter the Indian market with everything that today‘s sedans offer and much
more. Available at 57 select Mahindra dealerships in January and another 44
dealerships from February, the XYLO price range starts at Rs. 6, 24,500.
In February 2005, Mahindra & Mahindra and Renault decided to join forces to produce
and commercialize the Logan in India.
The joint venture is a 51:49 partnership between Mahindra & Mahindra and Renault.
The state-of-the-art Logan facility in Nasik offers a body shop, stamping shop, a paint
shop with a top quality pre-treatment and an assembly line specific for the Logan.
PRODUCTS- LOGAN
Logan was launched in India in 2007 with the concept to challenge the ―price Value‖
equation existing in the midsize car category. Soon it became one of the most
successful car in the midsize category and now is synonymous to comfort and
performance. The Logan drives in loads of refinement in comfort, style and technology.
Built around the Renault‘s famous Space Optimization Design, it redefines space and
luxury. With the widest backseat, maximum legroom and 3 separate headrests, it makes

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sure even the third passenger enjoys the drive as much. Logan is one of the safest
drives on the road. It‘s geared to protect you with a honeycomb dashboard and the front
unit that‘s designed to resist even a head-on impact.
Mahindra & Mahindra‘s foray into the three wheeler segment with Alpha and Champion
has also made it a leader in its category.
Presenting India's first compact truck GIO. A truck that‘s built to save for you. It gives
an unmatched mileage of 27 kmpl and scores really low on maintenance. Its 0.5 ton,
compact truck box ensures maximum space is utilized in intra city operations.
All this, and a range of other features, comes at a price for which you won‘t have to
spend your life‘s entire savings.
Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between Mahindra &
Mahindra Limited and International Truck and Engine Corporation, will manufacture
trucks and buses for India and export markets. It will also provide component sourcing
and engineering services to International Truck and Engine Corporation.
Mahindra Navistar (MNEPL) a second joint venture agreement with Mahindra &
Mahindra, Ltd. focuses on producing diesel engines for Medium and heavy Commercial
vehicles in India. Beginning in 2009, MNEPL‘s advanced diesel engines will power the
full line of trucks and buses produced by MNAL.

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CORE VALUES
Our core values are influenced by our past, tempered by our present and are
designed to shape our future. They are an amalgam of what we have been, what
we are and what we want to be.
These values are the compass that will guide our actions, both personal and
corporate. They are:
 Good corporate citizenship: As in the past, we will continue to seek long
term success that is in alignment with our country's needs. We will do this
without compromising on ethical business standards.
 Professionalism: We have always sought the best people and given them
the freedom and the opportunity to grow. We will continue to do so. We will
support innovation and well-reasoned risk-taking, but will demand
performance.
 Customer first: We exist and prosper only because of our customers. We
will respond to their changing needs and expectations speedily,
courteously and effectively.
 Quality focus: Quality is the key to delivering value for money to our
customers. We will make quality a driving value in our work, in our
products and in our interactions with others. We will do it "first time right".
 Dignity of the individual: We value individual dignity, uphold the right to
express disagreement and respect the time and efforts of others. Through
our actions, we nurture fairness, trust and transparency.

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Vision & Mission
M&M AS defined its vision statement during the year 2001 as – ―Be a globally
recognized player in MUVs and LCVs by the year 2006‖.
In 2004 with a view to maintain dominance and growth in the automotive industry,
the vision statement was revisited and a Promise statement was developed.
This Promise Statement was redesigned in April 2007 as ‗Promise 2010‘. This has
been split into actionable goals in Sales, Customer satisfaction, Global presence
and Quality described by DFMEA: Defect Free, First Time Right, Material Cost
Reduction, e-Enabled Demand Chain and Achieve QCD on projects.
The long term aspiration is ‗Achieving 1 million vehicles by 2015‘ medium and
short term goals.
The short term (2013) and Long term (2015) goals are being reworked out and will
be declared by Mar 2010.
PROMISE 2010
 We will be among the Top 3 in JD power customer surveys in India
 We will continue our dominance in our core UV business while becoming a
full range player in the domestic market
 We will quadruple our overseas volume and double our domestic volume
 We will innovatively create four new sustainable platforms and launch ten
new products
 We will continue to achieve double digit OPM through superior business
performance
 We will continue to achieve double digit OPM through superior business
performance. We shall ingeniously surpass our customer‘s latent desires
by unleashing the passion of our people.

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ABOUT TATA MAGIC
INTRODUCTION
In the segment of passenger transportation, Tata Motors has launched a
revolutionary new design –The Tata Magic (Har Safar mein kahani hai) in
July 2007.Magic has been developed on the platform of the Ace that brings
to urban and rural areas a four wheeler public transportation mode.
Whether it is a hub town or a village, the Magic can very well ferry
passengers with ease and comfort. The rigid front axle of this vehicle has
specifically been designed keeping in mind the Indian conditions. It can
very well and safely navigate through the narrow countryside streets or
roads where it seems difficult for other vehicles to do so.
The Magic ensures high fuel efficiency, longer life, and less downtime. It
has an engine of 700 cc, which can deliver a power of 16 hp @ 3200 rpm
and a torque of 38nm @ 2000 rpm. It meets BS-II and BS-III standards,
which makes it an eco-friendly vehicle. It offers a flexible seating capacity
of 4-7 passengers with adequate legroom. Powered by a 16 bhp (12 kW),
700 cc water-cooled diesel
The 12-inch tyres provide higher ground clearance, and the rigid front axle
is designed to handle tough roads. The Magic's turning radius of 4.3 metres
(14.1 ft) is nimble enough to navigate the byla nes and traffic of India's
crowded cities. The Magic has a clearly visible instrument cluster, utility
tray and a digital clock in the dashboard and also a provision for fitting a

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radio.
The Magic meets BS-III emission norms and has been developed for use in
any market — be it urban, semi-urban or rural. It is backed by a
36,000 km/12-month warranty.
Launch and reaction
Tata motors launched Magic in June 2007 for just above 2 lakhs .the new
vehicle was a big hit selling 100000 in just 20 months .As of may 2010
magic sold 250000 in just 3 years which created history in commercial
vehicles .currently Magic is offered in 3 color white, yallow, and blue .Tata
is building a new factory that will be able to turn out 250,000 a year starting
this month.
New segment
Tata Magic has created a new mini segment in India. Priced between 3.35
to 3.45 lakhs INR, the company aims to convert three wheeler users to 4
wheelers One of the idea that has made the launch of this vehicle might be
that the government policy in India not to allow HMVs (that are categorized
by vehicles weighing above 3 tones) to enter cities after 7 p.m. to reduce
traffic jams and pollution. TATA has found the gap in the market and
released MAGIC.
Manufacturing Location
The Magic is now produced at the in Pantnagar ,Uttarakhand although it
was initially manufactured at Pune.

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KEY FACTOR OF SUCCES
One of key factor for success this product is that government policy in India
not to allow HMVs (that are categorized by vehicles weighting above 3
tones) to enter cities after 7 p.m. to reduce traffic jams and pollution. TATA
has found the gap in the market and released MAGIC. Which is meets BS-II
and BS-III standards, which makes it an eco-friendly vehicle’s and under
1tone payload.
And customer was not having any other option at replacement time.
DATA COLLACTION
Data was collected in the form of personal interview .This method was
selected as it was the fastest way to collect data .Thus the primary data
was collected through surveys .whereas the source of secondary data was
various website.
SURVEY AREA
Since focus was only those who is owner of TATA MAGIC or who is driver.
Survey area would be near tata magic stand
1. BHOPAL
2. INDORE

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DATA PROCESSING AND DATA ANALYSIS
The statistical which will be used is are following
a) Graph and frequencies
b) Any other tool based on the type of data collection
c) The Questionnaire consisted both open ended and close ended
question

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Ques.1) Why did you choose TATA MAGIC?
Look Average Sitting capacity Loan scheme
Ques.2) How many kilometers you travel in a day?______
25-50 50-75 75-100 100-125 MORE THEN125
Ques.3) How many trips you make in a day?_____
10-20 20-30 30-40 40-50 MORE THEN50
Ques.4) How many stops you have to cover in a trip?_____
1-5 5-10 10-15 15-20 MORE THEN20
Ques.5) How many passengers you cover in a trip?_____
0-7 8-10 11-13 14-16 MORE THEN16
Ques.6) What is the average of the vehicle you get ?____
10-15 15-20 20-25 25-30
Ques.7) What is your approximate earning per trip ?_____
25-50 50-75 75-100 More then 100
Ques.8) What is your expenditure per trip?___
50-100 100-150 150-200 200-250
Ques.9) Have you made any additional changes after purchase Tata Magic?____
yes No
Ques.10)How much down payment you gave?
50000 75000 100000 125000
CUSTOMER VERBATIM
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
NAME :
VEHICLE NO : MOBILE NO :
ADDRESS :

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QUE.1Why did you choose Tata magic?
ANS.
INTERPATION- According to my survey 55.15 % person choose magic
because it‘s provide 7+1,6+1 sitting capacity . And they also said that when
they purchase Tata magic no any other option available at that time.
Frequency Percent
Valid Look 20 14.7
average 37 27.2
sitting
capacity
75 55.1
loan
scheme
4 2.9
Total 136 100.0

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QUE.2 How many kilometer you travels in a day ?
ANS.
Lavel Frequency Percent
50-100 11 8.1
101-150 28 20.6
150-200 71 52.2
201-250 24 17.6
more then 250 2 1.5
Total 136 100.0
INTERPATION-
According to my survey 52.21% customers travels 150-200 Kilometers in a
day.

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QUE.3 How many trips you make in a day ?
Ans.
Lavel Frequency
Percent
0-5 6 4.4
6-10 104 76.5
11-15 24 17.6
16-20 2 1.5
Total 136 100.0
INTERPATION-
According to my survey 76.47% customers make 6-10 trips in a day .and
they travels approximately 10-12km in a trip

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Que.4 How many stops you have cover in a trip?
Ans.
Level Frequency Percent
1-5 26 19.1
6-10 68 50.0
11-15 29 21.3
16-20 13 9.6
Total 136 100.0
INTERPATION- According to my survey 50% customer cover 6-10 stops in
a trip. And 21.32 % customer cover 11-15 stops and 19.12% cover 1-5
stops and 9.56% customer cover more then fifteen customer .

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QUE.5 How many passenger you have cover in a trip?
Ans.
Level Frequency Percent
0-7 4 2.9
8-10 20 14.7
11-13 38 27.9
14-16 73 53.7
more then 16 1 .7
Total 136 100.0
INTERPATION-
According to my survey 53.68% customers said they cover 14-16
passengers 27.94% customers said that they cover 11-13 passengers in a
trip both is more then it‘s actual capacity .and government has permitted
only 7+1 .so company should have increase its sitting capacity.

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Que.6 what is the average your vehicle get?
Ans.
Level
Frequency Percent
6-10 6 4.4
11-15 47 34.6
16-20 83 61.0
Total 136 100.0
INTERPATION- According to my survey 61.03% customer said vehicle is
getting mileages 16-20 km/L though company said that vehicle will give
mileages 20-22 km/l in road

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Que7. What is your approximate earning per trip?
Ans.
Option
Frequency Percent
50-100 20 14.7
100-150 47 34.6
150-200 53 39.0
201-250 16 11.8
Total 136 100.0
INTERPATION- Based on my survey out of 136 respond 38.97 % customer
says that they earn approximately 150-200 rupees per trip and 34.56%
customer says that they earn 100-150 rupees per trip and 14.71%
customer says that they earn 50-100 rupees per trip and only 11.76%
customer says that they earn 201-250 rupees per trip.

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Que8.what is your expenditure per trip ?
Ans.
Level Frequency Percent
1-50 79 58.1
51-100 53 39.0
101-150 4 2.9
Total 136 100.0
INTERPATION –According to my survey 58.09% customer said that his
approximately expenditure per trip is under 50 rupees and 38.97%
customer said that his approximately expenditure is under 100 and only
2.4% customer said that his expenditure per trip on vehicle is above then
100 rupees.

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Que9.Have you made any additional changes after purchase Tata magic?
ANS.
Option
Frequency Percent
Valid yes 88 64.7
No 48 35.3
Total 136 100.0
INTERPATION-
Out of 136 respond 64.71% customer said that they made additional
changes after purchase magic. They add a seat for four person in back
side for increases sitting capacity .and maximum customers add bumper
for security because company is given fiber front .and customer also add
FM Radio other decoration accessories‘ because company was gave
radio only first 10000 Magic .

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Que10.How much down payment you gave ?
Ans.
Level Frequency Percent
10000-50000 48 35.3
50000-100000 56 41.2
100001-150000 17 12.5
150001-200000 1 .7
Cash 14 10.3
Total 136 100.0
INTERPATION –
According to my survey 41.18 %customer said that they were gave approximately in
50000-100000 down payment and 35.29% customer said that they were gave 10000-
50000 down payment and 12.50% customer said that they were gave 100000-150000
and 10.29 customer purchase in cash and only .74% customer were gave 150000-
200000 in down payment.

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SWOT ANALYSIS OF TATA MAGIC
STRENGTH -
 First vehicle in the segment of light passenger vehicle
 Under the umbrella of TATA
 Now no one competitor in this segment(below 1 tone pay load)
 Available both version in diesel and cng
 Within turning radius is shorter so it‘s easily turn in narrow street
where other mini buses can‘t turn easily so customer like this (as
school purpose)
 Given ―leaf spring suspension at both front and rear ―so customer
perceive that we can overload
 The rigid front axle of this vehicle has specifically been designed
keeping in mind the Indian conditions. It can very well and safely
navigate through the narrow countryside streets or roads where it
seems difficult for other vehicles to do so.
 It meets BS-II and BS-III standards, which makes it an eco-friendly
vehicle.

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WEAKNESS-
 Maintenances charge is very high
 Vehicle parts is so expensive
 Pick up is very low
 Body is weak and company is not gave cover in ceiling so vehicle get
hot early in summer
 All controlling by alternator so when battery is weak then vehicle
can‘t start.
 Back side gate is weak
OPPORTUNITY-
 Now pupil is converting to 3 wheeler to 4 wheeler
 Tier 2 city cng ability
Threats-
 Mahindra will launch maxximo in this segment

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FINDING AND SUGGATION-
FINDING-
 According to my survey 62% customer says that were made
additional changes after purchase magic and they added a seat in
back side.
 According to my survey 97% customer are doing overloading
because they says that if they not do this then they would not able to
pay loan installments.
 From the source of field survey magic maintenance charges is very
high.
 From the source of field survey costumer says that magic pic-up is
very weak
 According to my survey 78% customer were gave down payment
under 100000 and they said company should launch minimum down
payment policy.
 From the source of field Survey Company was not gave ceiling cover
that‘s why vehicle get hot easily in summers.
 From the source of field survey customer said that Back side gate is
weak they want strong gate as like as MAHINDRA JEEP.

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SUGGESTIONS
 Company should gave a seat in a back side optionally.
 Company should do R&D for increase pick up
 Company should try to decrease part‘s rate and do
maintenance in affordable price.
 Company should launch 0 down payment policy sothat driver
who is interested to purchase vehicle they can purchase.

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REFRENCE-
www.mahindra and Mahindra .com
www.wikipedia .com