41387401 tata-motor-project-report-1

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41387401 tata-motor-project-report-1

  1. 1. Acknowledgement“….. the beauty of the destination is half veiled and the fragrance of the success halfdull until the traces of all those enlightening the path are left to fly with the windspreading word of thankfulness…” Keeping this in view; it would be unfair on my part if I don’t thank thementioned few. I express my sincere gratitude to Mr. Piush Shankar (marketingmanager Tata Motors) who gave me the opportunity to get training in such a recognizedcompany. His guidance and knowledge helped me to learn professionalism in the realsense.I would like to express my deep sense of gratitude to prof. chetan wakalkar, directorISMS, pune for providing me such an environment to achieve the goals and to prosperin the corporate worldI am also grateful to my project guide prof.Anandikar ISMS, Pune Who extended hiscomplete support to make me deliver my best.
  2. 2. Executive SummaryCompany profileTata motors limited is India’s largest automobile company with revenues of Rs. 24,000corers in 2005-06, have grown significantly in past 60 years since its establishment in1945. The company is the leader by far in commercialvehicles in each segment, and the second largest in the passenger vehicles market withwinning products in the compact, midsize car and utility vehicle segment. The companyis world’s fifth largest medium and heavy commercial vehicle manufacture.Product profileTATA Motors has launched a new version of its small car. Christened Indicia V2 Xeta,the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmplunder standard test conditions.Scope & objectiveThe aim of the study made through this project is to know the consumer awarenessabout the product Tata xeta with the corporate clients, in Bokaro steel city andcomparative analysis of the Tata-xeta and Maruti Alto with their product features andmarket share.Research methodology 1. research design 2. sampling plan 3. instruments of collection of data 4. data analysis and interpretation 2
  3. 3. ConclusionThis project research is the analysis of consumer awareness towards the newly launchedcar xeta by the branded company Tata motors. People belonging to middle classgenerally preferred the Tata- xeta going on far its brand name its history goes withdelivering value.The customer of tata-xeta just had one problem and they said they are not by theperformance of the car in the sense of its mileage when compare to Maruti alto in thesame segment and price.LimitationWith in the limit period of time it is too difficult to cultivate in a whole market. Cost isalso a major factor of pushing back to us in our research.RecommendationThis project was about to study the customer orientation towards tata-xeta, many of thecustomers complained about the mileage given by the tata-xeta is quite less than that ofmaruti-alto.Many customers complained advertisement shown for tata-xeta which they called to bea confusing one.Bibliography • http://carsinindia.com/indicaxeta1.asp • http://ir.tatamotors.com/PushFile.php? filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdf • http://www.maxabout.com/automotive/auto_cars/companies/Tata.aspx • http://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html • http://www.carwale.com/Research/chooseCarsForComparison.aspx 3
  4. 4. ANEXTUREQuestionnaire. IntroductionThe time has gone when people just wanted to have vehicles as a means oftransportation but nowadays they are more aware about the vehicle model, their priceand various other features which make them owner of a commodity which makes theirneighbors feel envy of their choice. As India opened its gates for the foreign companiesvarious automobiles giants entered our country seeking it as their target market. WeIndians also got a wide variety of cars to choose from. Hyundai entered in India with aview to capture the small market segment earlier captured mostly by two giant Indiancompanies- Tata Motors and Maruti Udyog Limited.Tata is one of the company in which the Indians trust like anything. It has diversifieditself in a number of sectors gaining the trust and proving its competence in every suchfield. Tata when come up with a small car segments it was welcomed by people in thesame way as it welcomed all its products. It had a wide choice of four wheelers tosatisfy the varied Indian choices. In the other hand Maruti also is said to capture thepulse of Indian middle class by giving them their Maruti 800.To its wing it added manyother cars to competition to Tata motors. Now these two companies even have to fight for their existence in this automobilesector and had to produce in context of giving tough competition to the various foreigncompanies. If we think about just these two companies they are also tough competitor ofeach other since ages. They had always tried to give their customers the products tocherish upon. There are products which are liked by the customers in India andworldwide. In this context we are here to compare two premier models of these two autocompanies, which will give us the ultimate result of what the customer genre thinksabout these two companies. This project also thus deals with a comparative study ofthese companies with respect to their own products in the small car segment. 4
  5. 5. As both the companies are eager to capture the small car segment of India which ismostly owned by the middle class society of India.A product to be successful in the market needs the prospective customers to be aware ofthe product. Consumer awareness about their products is the company’s one of theprimary objective which makes the company to end up at advertising. They invest a lotof money in creating consumer awareness about their newly launched and existingproducts.ObjectiveIt’s always better to start your search with a predefined objective, rather than beatingaround the bush. An objective will give you a direction to work upon and proceed yourfurther research. Therefore, my project has in basic to objective • To do comparative analysis of the Tata-Xeta and Maruti Alto with their product features and market share. • To study the consumer awareness about the product Tata-Xeta with the corporate clients, in Bokaro Steel City. 5
  6. 6. Research MethodologyAccording to Green and Tall “A research design is the specification of the methods andprocedures for acquiring the information needed. It is the overall operational pattern orframework of the project that stipulates which information is to be collected, fromwhere it is to be collected and by what procedures”This research process based on primary data analysis and secondary data analysis willbe clearly defined to meet the objectives of the study. • I chose the primary sources to get the data. A questionnaire was designed in accordance with our mentor in Tata Motors. I chose a sample of about 75 corporate customers around the Bokaro Steel City from which I can get the instant information of whose analysis will give me the desired outcome of my research project. • I collected some data from the secondary sources like published Company documents, internet etc.Research Design“A research design is the arrangement of conditions for collections and analysis of datain a manner that aims to combine relevance to the research purpose with economy inprocedures”. It is a descriptive cross sectional design .It is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection,measurement and analysis of data. 6
  7. 7. It is needed because it facilitates the smooth sailing of the various research operations,thereby making research as efficient as possible yielding maximal information withminimal expenditure of effort, time and money. In the preliminary stage, my research stage constituted of exploratory study by whichit is clear that the existence of the problem is obvious .So, I can directly head for theconclusive research. Sampling Plan“Sampling plan” is a distinct phase of research process. In this stage I have to determinewho is to be sampled, how large should be the needed sample and how sampling unit isto be selected.PopulationIn my research, I have defined my population as a complete set of customers of BokaroSteel City.Sample SurveyAs compared to census study, a sample study has been conducted by us because of:  Wide range of population, it was impossible to cover the whole population  Time and money constraints.Sample UnitIn this survey I took the list of customers from the dealers of Tata Motors in BokaroSteel City.Sampling TechniqueSampling technique implies the method of choosing the sample items, the two methodsof selecting sample are:  Probability method.  Non-probability method. 7
  8. 8. “Probability method” is those in which every item of the universe has an equal chanceof the inclusion in the sample. “Non-probability methods” are those that do not provideevery item in the universe with known cause of being included in the sample. Theselection process is partially subjective.For my study, I employed the Non-probability sampling technique, in which I got thedata of the customers from the dealer of Tata Motors in Bokaro Steel city.Instrument of collection of dataI have used one set of questionnaire to collect data from the customers. Thisquestionnaire is structured and highly ordered. This includes both close ended and openended questions. The close ended questions included both dichotomous and multiplechoice questions.Data analysis and interpretationsLarge volumes of raw data were collected through questionnaires in my research study.This raw data has been further converted into significant statistical information beforefurther interpretation so that I can answer my research objective well. The collected raw data was then edited and coded by the researchers to eliminateerrors and to assign data to pertinent categories. The data was then tabulated andpresented with the help of bar diagrams and pie charts. 8
  9. 9. Company profile Tata Motors LimitedTata Motors Limited is Indias largest automobile company, with revenues of Rs. 24,000corers (USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles ineach segment, and the second largest in the passenger vehicles market with winningproducts in the compact, midsize car and utility vehicle segments. The company is theworlds fifth largest medium and heavy commercial vehicle manufacturer.The companys 22,000 employees are guided by the vision to be “best in the manner inwhich we operate best in the products we deliver and best in our value system andethics.”As an enterprise under India’s largest multi holding company, Tata Motors has grownsignificantly in the past 60 years since its establishment in 1945.The company caters tothree main market segments globally: the passenger cars, utility vehicles andcommercial vehicles. A significant breakthrough for the company was the developmentand commercialization of the truly Indian cars-Tata Indicia and Tata Indigo. Thecompany produced its first mini truck, first light and first heavy vehicle and many morefists in India ,being an innovator in their industry. It has followed a strategy ofacquisitions and joint ventures in its mid-stage and launched new products at a rapidpace in different market segments. Today, Tata Motors enjoys the position of beingIndia’s leading automobile manufacturer with increasing presence in Europe, South EastAsia. Africa and the Middle East with a total income of US $4 billion in 2004-05.The 9
  10. 10. company focuses on providing customers the best value for their money and meetsEuropean standards and environmentally regulations through their advancedtechnologies.Established in 1945, Tata Motors is one of the 32 publicly listed enterprises infer theTata Group, India’s largest business conglomerate. Tata Motors collaborated withGermany’s Daimler Benz in 1945 for 15 years to manufacture commercial vehicles.Since then, Tata Motors has grown enormously and produces several vehicles throughtheir mainDivisions- Passenger Cars, Utility Vehicles and Commercial Vehicles. In 1959, they setup their first and largest R&D centre in Jamshedpur.In 1961, exports had begun and thefirst truck was shipped to Sri Lanka.Another R&D Centre was started in Pune in 1966 tosupport automobile research which produced the first commercial vehicle by 1983 andlight commercial vehicles three years later. With increasing sales popularity, they soldtheir one millionth vehicle by 1991 .Their interest in tapping the diesel engine marketwas evident through their joint venture with Cummins Engine Co.Inc in 1993 for theproduction of high horsepower and emission friendly diesel engine.After the joint venture in 1993, a few others were pursued the following year. Anagreement with Daimler-Benz in 1994, allowed Tata Motors to produce high endMercedes Benz passenger cars for the Indian market .In 1998, they launched their firstsports utility vehicle, Tata Safari. This was an important year as their sales doubled to 2million vehicles and marked the munch of India’s first fully indigenous passenger car,Tata Indicia .The Indicia was a success and over 115,000 bookings with full paymentWithin a year of its launch. Tata Motors presence indeed cuts across the length and breadth of India. Over 3.5million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Thecompanys manufacturing base is spread across Jamshedpur, Pune and Lukhnow,supported by a nation-wide dealership, sales, services and spare parts networkcomprising about 1,200 touch points. 10
  11. 11. Tata Motors, the first company from Indias engineering sector to be listed in the NewYork Stock Exchange (September 2004), has also emerged as a global automotivecompany. In 2004, it acquired the Daewoo Commercial Vehicles Company, Koreassecond largest truck maker. The rechristened Tata Daewoo Commercial VehiclesCompany has already begun to launch new products. In 2005, Tata Motors acquired a21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, withan option to acquire the remaining stake as well. Hispanos presence is being expandedin other markets.These acquisitions will further extend Tata Motors global footprint, established throughexports since 1961. The companys commercial and passenger vehicles are alreadybeing marketed in several countries in Europe, Africa, the Middle East, Australia, SouthEast Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh,Spain, Ukraine, Russia and Senegal.The foundation of the companys growth over the last 50 years is a deep understandingof economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D.With 1,400 engineers and scientists, the companys Engineering Research Centre,established in 1966, has enabled pioneering technologies and products. It was TataMotors, which developed the first indigenously developed Light Commercial Vehicle,Indias first Sports Utility Vehicle and, in 1998, the Tata Indicia, Indias first fullyindigenous passenger car. Within two years of launch, Tata Indicia became Indiaslargest selling car in its segment.The pace of new product development has quickened. In 2005, Tata Motors created anew segment by launching the Tata Ace, Indias first indigenously developed mini-truck. The years to come will see the introduction of several other innovative vehicles,all rooted in emerging customer needs. Besides product development, R&D is alsofocusing on environment-friendly technologies in emissions and alternative fuels. 11
  12. 12. Through its subsidiaries, the company is engaged in engineering and automotivesolutions, construction equipment manufacturing, automotive vehicle componentsmanufacturing and supply chain activities, machine tools and factory automationsolutions, high-precision tooling and plastic and electronic components for automotiveand computer applications, and automotive retailing and service operations.True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit toCorporate Social Responsibility. It is a signatory to the United Nations Global Compact,and is engaged in community and social initiatives on human rights, labour andenvironment standards in compliance with the principles of the Global Compact.Simultaneously, it also plays an active role in community development, serving ruralcommunities adjacent to its manufacturing locations.With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.It has been a long and accelerated journey for Tata Motors, Indias leading automobilemanufacturer. Some significant milestones in the companys journey towards excellenceand leadership from the glorious year of 1945 till date it is working on it success road.In its senior management position Mr. Ravi Kant is the Managing Director of thiscompany.ManufacturingTata Motors owes its leading position in the Indian automobile industry to its strongfocus on indigenization. This focus has driven the Company to set up world-classmanufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried outmeticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune inthe West and Lucknow in the North.Jamshedpur:This was the first unit of the Company established in 1945 and is spread over an area of822 acres. It consists of 3 divisions - Truck, Engine (including the Gear Box division)and Axle. The divestments in March 2000 hived off the Axle and Engine plants into 12
  13. 13. independent subsidiaries. The Truck Division boasts of two assembly lines. The mainassembly line, measuring 180 meters in length, has 20 stations with a vehicle rolling outevery 8 minutes while the other line is dedicated to Special Purpose Vehicles (SPVs).State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up of a 5000tonne Siempelkamp press line and a cut-to-length line for strip preparation purchasedfrom M/s. Kohler of Germany makes it a fairly advanced production outfit.This is supported by a fully equipped Foundry, which supplies high-grade SG Ironcastings for automobile components and excavators and is rated as one of the cleaner,better and highly automated foundries in the world. The Foundry has a sophisticatedKunkel Wagner high pressure molding line, which has a rated production capacity of 90Pairs of moulds every hour. The Foundry has its own melting shop, core shop and sandplant.Other advanced facilities include Channel Furnaces, Computerized Testing Equipmentetc. In 1993, the Foundry was ISO 9002 certified by the Bureau Verities QualityInternational and later followed it up with the more stringent QS 9000 certificationfrom the BVQI in the year 2000.The unit is also equipped with a semi-automated forging line, with 40,000 mkg Bachehammer and state-of-the art presses from Kurimoto of Japan and is one of the mostmodern forging set-ups in the country. It produces critical forgings like crankshafts,front axle beams and steering parts for the automobile plant. The new forging line,installed on April 20, 1984, has the capability to forge front axle beams at 90 sec perpiece and crankshafts at 120 sec per piece. Mechanical presses help produce a varietyof heavy forgings. The sophisticated FIDIA Digit 165 CC graphite-milling machinelinks shop floor machines to the design workstation. The Forge has been certified asISO 9002 and QS 9000 by the BVQI.Pune: 13
  14. 14. The Pune unit is spread over 2 geographical regions- Pimpri and Chinchwad and has acombined area of around 510 acres. It was established in 1966 and has a ProductionEngineering Division, which has one of the most versatile tool making facilities in theIndian sub-continent. It houses a Vehicle manufacturing complex which is one of themost integrated automotive manufacturing centers in the country producing a largevariety of individual items and aggregates. It is engaged in the design and manufactureof sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, aswell as models for the development of new ranges of automobile products. Itscapabilities have enabled Tata Motors to introduce new products and improve existingones without resorting to imports of dies or fixtures.Lucknow:Established in 1991 and covering an area of 600 acres, the Lucknow Plant wasestablished to assemble Medium Commercial Vehicles (MCVs) to meet the demand inthe Northern Indian market.In 1995, the unit started manufacturing bus chassis of Light Commercial Vehicles(LCVs) and Tata Sumos. The unit is also equipped with facilities to manufacture spareparts.Research & Development:Research provides the much-needed inspiration for the birth of new ideas, which inturn breathes new life into products. World-class automotive research anddevelopment are key factors that contribute to the leadership of the Company.Engineering Research Centre (ERC):The Research Centre at Jamshedpur regularly upgrades components and aggregates. Awell-equipped torture track enables rigorous and exhaustive testing of modifications 14
  15. 15. before they are used as regular fitments. The Engineering Research Centre in Punewas setup in 1966 and is among the finest in the country. It has been honored with twoprestigious awards - The DSIR National Award for R&D Effort in Industry - 1999and National Award for Successful Commercialization of Indigenous Technology byan Industrial Concern - 2000.Central Tool Room, Jamshedpur:The Central Tool Room at Tata Motors, Jamshedpur is one of the most modern toolrooms in India. Equipped with the latest CNC Machines, Tryout Presses andInspection facilities, this tool room has the proven capability of developing toolingsolutions for all applications.CustomersQuote"We are happy to inform you that the feedback received from our Japanese personnel(after their visit to your plant) is very positive and hence have decided to set the diequality of Tata Motors, Jamshedpur dies as benchmark."STTI (Toyota),BangaloreMarch, 2004Tata Motors has proven excellence over the years through its technologically advancedproducts, market expansion, customer satisfaction and increasing sales.Tata Motorsconsistently strives to increase shareholder value, build stronger customer relations andwork with its business partners to provide the best value for money. The company isalso involved in accelerating the country’s economic growth and protecting theenvironment. With the initial financial backing of the giant parent company,Tata Group,the division has built a strong business over the past 60 years and continues to showstrong financial results. The continual improvement and introduction of new productsin the market have allowed it to successfully enter as well as dominate the automobile 15
  16. 16. industry in India. Tata Motors reported a record sale of 454,345 vehicles (includingexports) for the fiscal year 2005-06, its highest ever, and a growth of 13.7 per cent overthe 399,566 vehicles sold in 2004-05. Total sales (including exports) for the month ofMarch 2006 were 56,406 units, the company’s highest ever monthly sales and anincrease of 27 per cent over the 44,432 units sold in March 2005.In case of exports, The Company exported 6,508 vehicles in March 2006 as compared to3,964 vehicles in March last year, an increase of 64.2 per cent. The cumulative salesfrom exports during the year at 50,539 vehicles, a new peak, have recorded a strong65.7-per cent growth over the 30,496 vehicles sold last year.Tata Motors continues tomake deep inroads abroad with its strategy of focusing on select markets with relevantproducts from its commercial vehicles and passenger vehicles range. With increasing sales, employees, product offering, manufacturing facilities anddistribution centers along with expansion outside India, the company seems to havepromising future. 16
  17. 17. Product profile Tata Indicia XetaWebsters Dictionary circa 2050 Indica: A successful Indian product of truly Indianorigins. The word is derived from the first automobile to be designed, manufactured andsold successfully by an Indian company. Several variants of its original hatchback 17
  18. 18. design were spawned and eventually over one million vehicles based on the platformwere sold. The diesel-engine vehicle sold in large numbers across the nation and evenhas the notable achievement of having been exported to several countries across theglobe. The diesel-engine Indica received notable appreciation from all around, whereasthe petrol-fuelled versions played second fiddle on the sales graphs. TATA Motors has launched a new version of its small car. Christened Indica V2Xeta, the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14kmpl under standard test conditions. The Xetas engine, delivering 70 PS, is far morepowerful than the earlier version. Besides common black and silver, the car is availablein three flashy hues. The Xeta is touted be among the first few small cars to sport beigeinteriors. Besides these compelling features, the pricing is also attractive, at Rs 2.94 lakhfor the AC model. The Xeta range is priced between Rs 2.69 to Rs 3.65 lakh ex-showroom Delhi. Customers may avail themselves of loans of up to 90 per cent fromselect financiers over a seven-year period with EMIs as low as Rs 4,471.We can have some inside view of this wonderful car: 18
  19. 19. Design and engineeringThe design of the Xeta is exactly the same as the Diesel version, no significant changes,except the upholstery and the beige dashboard. Xeta carries with it all the virtues, likespace and comfort. Seats are reasonably good and the Air con is also quite good, but thespread of the vents could really have been better.There are a few things about Tata build quality that are quite frankly annoying. The doorajar warning switch has been placed right next to the door hinge; this results in the cabinlamp switching off, even when the door is in fact ajar! Tata has also used bolts to fit thewheels to the hubs, which is unlike the Japanese who normally use studs and nuts. Theresult is that it is quite hard to replace a flat tire. The Indica though, unlike its some ofits Japanese competitors can easily accommodate 5 passengers with much space tospare, and the best part about the interiors of the Indica are its 2 front seats that provideexcellent comfort and support. The rear seats though lacking in comfort compared to theones in the front has great legroom for its passengers. This can be a big boon on longjourneys helping reduce fatigue.Engine and transmission 19
  20. 20. The entire design effort of this new car is concentrated on the engine alone, the enginealthough the same block as the diesel, displaces 1405cc and has been detuned to nowpump 70ps and 14kgm of torque. The best part of this engine is not just that figure, it theway its delivered. The Indica petrol ceases to be a rampage, a fuel-guzzling monster; itis now able to pump loads of torque into those front wheels. The Indica is now able topull from as low as 800rpm.The crux of the changes incorporated in the new Indica. The New Indica Xeta nowsports a slightly detuned 4-cylinder in line, 1405cc 32bit microprocessor controlled fuelinjected petrol engine, which is able to pump out 70ps at 4600rpm 14kgm at 2600rpm.Tata Now claims that this engine, thanks to the torque it is able to generate will be ableto churn outefficiency of around 14kpl. Customers really impressed by the optimism, but when thecar floored the acceleratorRide and HandlingThe Indica Xeta is a big car, as far as dimensions go, compared to the puny Alto andbigger compared to the Santro and Wagon R when it comes to weight almost 200kgs.So, the suspension does belong to big car category. The tread of the tire is wider by10mm to the Wagon R VXi and the Santro by 10mm, this helps the car grip a bit better,and although we expected the slightly lower profile to play truant when in came toabsorbing bumps, the intrusive rear suspension really did work out. The handlingthough is a bit of another story. The Indica being heavy does mean more corneringforces, and the extra weight also means a wee bit of extra roll, but the wide stance of theXeta is able to cope with the cornering with aplomb. The steering though is just a bitheavy, which although is very helpful at higher speeds can be a bit of a drawbackaround those city runs.VerdictThe Xeta now competes with tried and tested Japanese cars like the Marutis Wagon R,Zen and Alto and the Korean Santro Xing. Compared to these cars, the XETA is able toprovide far more space; thanks to its handling, it is able to hold the road much betteralso absorbing the undulations of road surface better the handling though seems a bit 20
  21. 21. front heavy; the car, overall looks even heavier. Tata build quality is yet to really makeits impact on Japanese car fans, but the fact that this 1400cc 70ps engine with oodles oftorque is able to churn out excellent fuel economy should. Pros ConsSilent engine, comparatively more refined Tires have a tendency to lock upTruck loads of space Gearbox, bit too numbExcellent ride; especially at higher speeds The boot couldve been much biggerbeige interiors and seats Engine is not rev-happyExcellent torque; especially low down Engine doesnt feel like a 1.4boot space quite good Tata is still in its learning curve Technical Comparison of Tata Xeta and Maruti Alto Tata Indica V2 Xeta GLS-BS Unit III Maruti Alto LXi - BS III Price (Ex- Showroom Mumbai) Rs. 2,99,470 2,99,102 EMI* Rs. 3,977 3,972 More Details More Details Tata Indica V2 Xeta GLS-BS Features III Maruti Alto LXi - BS III Air Conditioner Power Steering Cup Holders Folding Rear-Seat X Remote Fuel-Lid Child Safety Locks Dimensions and Weights | | Overall Tata Indica V2 Xeta GLS-BS Length III Maruti Alto LXi - BS III 21
  22. 22. Overall Width mm 3675 3495 Overall Height mm 1665 1495Wheel Base mm 1485 1460 Ground Clearance mm 2400 2360Front Track mm 170 166Rear Track mm 1400 1290 Front Headroom mm 1380 1290 Front Legroom mm 955 Rear Legroom mm 1080 1190 Rear Shoulder mm 820 900Boot Space mm 1335 1220 Gross Vehicle Weight litre 217 Kerb Weight kg 1395 1165 Fuel Economy kg 995 740 Tata Indica V2 Xeta GLS-BS Mileage (Highway) III Maruti Alto LXi - BS III Mileage (City) km/litre 15.3 18.3 Mileage(Overall) km/litre 11.1 13.6Capacities km/litre 11.9 14.5 Tata Indica V2 Xeta GLS-BS Seating Capacity III Maruti Alto LXi - BS III Fuel Tank Capacity person 5 4No of Doors litre 37 35Performanc e 5 4 Tata Indica V2 Xeta GLS-BS Maximum Speed III Maruti Alto LXi - BS III0-100kmph kmph 152 137 1/4 Mile seconds 17.4 21.5100kmph-0 (Braking) seconds 20.7 21.7 80kmph-0 (Braking) meters 60.1 Engine meters 34.8 35.8 Tata Indica V2 Xeta GLS-BS Engine Type/Model III Maruti Alto LXi - BS III 22
  23. 23. 475 SI Multi Point FuelDisplaceme injection System with 32-bit nt microprocessor FC engine Power cc 1396 796 PS@rp Torque m 70@4800 47@6200 Valve Nm@rpMechanism m 122@2600 62@3000 Bore Stroke mm 75Compressio n Ratio mm 79.5 No of Cylinders 9 CylinderConfigurati on cylinder 4 3 Valves per Cylender In-line Ignition Type valve 2 4Engine Block Material Block Head Material Iron Fuel Type IronFuel System Petrol PetrolTransmissio n MPFI MPFI Tata Indica V2 Xeta GLS-BS Transmission Type III Maruti Alto LXi - BS IIIGears/Speed s Manual ManualClutch Type Gear 5 5Final Reduction Gear RatioSuspensions 3.76 Tata Indica V2 Xeta GLS-BS Front Suspension III Maruti Alto LXi - BS III Independent, Wish Bone type with McPherson strut, Antiroll McPherson Strut with Rear Suspension Bar torsion type anti-roll bar Independent, Semi trailing arm Coil spring with double with coil spring mounted on action telescopic shock Steering hydraulic shock absorbers absorbers Steering Tata Indica V2 Xeta GLS-BS Type III Maruti Alto LXi - BS III Power Assisted Rack and pinion Minimum Turning Radius Standard Standard Brakes meter 4.9 4.6Brake Type Tata Indica V2 Xeta GLS-BS Maruti Alto LXi - BS III 23
  24. 24. III Dual Circuit, diagonally split, Powerful 8-inch booster Front vacuum assisted with PCR assisted front disc brakes Brakes valves halt instantly on braking Rear Brakes 231mm Ventilated Discs Disc brakes Wheels and Tyres 180mm Drums Tata Indica V2 Xeta GLS-BS Wheel Type III Maruti Alto LXi - BS III Wheel Size Steel Tyres 4.5J x 13" 12" 165 x 65 R13 Radial 145 / 80 R12 Indian Automobile IndustryIndia is emerging as one of the most attractive automotive markets in the world, and ispoised to become a key sourcing base for auto components. The table below capturesthehighlights of the sector in India that illustrates its growing significance.Indian Automobile Industry • Largest three wheeler market in the world. • 2nd largest two wheeler market in the world. • 4th largest passenger vehicle market in Asia. • 4th largest tractor market in the world. • 5th largest commercial vehicle market in the world.The industry structure spans all segments and is concentrated in regional clustersThe India automotive sector has a presence across all vehicle segments and keycomponents. In terms of volume, two wheelers dominate the sector, with nearly 80 per 24
  25. 25. cent share, followed by passenger vehicles with 13 per cent. The industry had fewplayers and was protected from global competition till the 1990s. After governmentlifted licensing in 1993, 17 new ventures have come up. At present, there are 12manufacturers of passenger cars, 5 manufacturers of multi utility vehicles (MUVs), 9manufacturers of commercial vehicles, 12 of two wheelers and 4 of three wheelers,besides 5 manufacturers of engines. With the arrival of global players, the sector hasbecome highly competitive.Concentrated in regional clustersAutomobile manufacturing units are located all over India. These are, however,concentrated in some pockets such as Chennai and Bangalore in the south, Pune in thewest, the National Capital Region (NCR, which includes New Delhi and its suburbandistricts) in the north, Jamshedpur and Kolkata in the east and Pithampur in the centralregion. Following global trends, the Indian automotive sector also has most autosuppliers located close to the manufacturing locations of OEMs, forming regionalautomotive clusters. Broadly, the three main clusters are centered around Chennai, Puneand the NCR.Auto Components sector is highly fragmentedThe Indian automotive component industry is highly fragmented. There-are nearly 6,400players in the sector, of which only about 6 per cent are organized and the remaining 94per cent are small-scale, unorganized players. In terms of value added, however, theorganized players account for nearly 77 per cent of the output in the sector. The sectormanufactures components across all key vehicle systems. The break-up of the outputfrom the organized sector, in value terms, across key vehicle systems, is shown in thefigure. 25
  26. 26. The automotive sector is growing strongly in both domestic and exports marketsIndian automobile industry has been performing well both in the domestic and theinternational markets. Automobiles - Domestic Performance The productionanddomestic sales of the automobiles in India have been growing strongly. Whileproduction increasedfrom 4.8 million units in 2000-1 to 8.5 million units in 2004-05 (a CAGR of over 15 percent), domestic sales during the same period have gone up from 4.6 million to 7.9million units (CAGR 14.2 per cent). 26
  27. 27. A positive trend in the domestic market is that the growth has not been driven by one ortwo segments, but is consistent across all key segments. Two wheelers, which constitutethe majority of the industry volume, have been growing at a rate of 14.3 per cent, threewheelers at a rate of 14 per cent and passenger vehicles at a rate of 11.3 per cent.Commercial vehicles have been growing at a higher rate of nearly23.5 per cent,although from a lower base Since nearly all macro-economic indicators – GDP,infrastructure, population,demographics, interest rates, etc. – are showing a favourabletrend, thedomestic market for automobiles in India is expected to continue on its growthtrajectory..Commercial VehiclesThe commercial vehicle production in India increased from 156,706 in 2001 to 350,033in 2005. 27
  28. 28. This segment can be divided into three categories – heavy commercial vehicles(HCVs),medium commercial vehicles (MDVs or MCVs) and light commercial vehicles (LCVs).Medium and heavy commercial vehicles formed about 62 percent of the total domesticsales of CVs in 2004. These segments have also been driving growth, having grown at aCAGR of nearly 24.7 per cent over the past five years. The key trends facilitatinggrowth in this sector are the development of ports and highways, increase inconstruction activities and agricultural output. With better roads and highway corridorslinking major cities, the demand for larger, multi-axle trucks is increasing in India.Passenger Vehicles 28
  29. 29. Passenger vehicles consist of passenger cars and utility vehicles.This segment has beengrowing at a CAGR of 11.3 per cent for the past four years.A key trend in this segmentis that with rising income levels and availability of better financing options, customersare increasingly aspiring for higher-end models. There has been a gradual shift fromentry-level models to higher-end models in each segment. For example, in passengercars, till recently, the Maruti 800 used to define the entry level car, and had apredominant marketshare. Over the last 3-4 years, higher-end models such as Hyundai Santro, MarutiWagon R, Alto and Tata Indica have overtaken the Maruti 800.Another developmenthas been the blurring of the dividing line between utility vehicles and passenger cars,with models like Mahindra & Mahindra’s Scorpio attracting customers from bothsegments. Upper end sports utility vehicles (SUVs) attract potential luxury car buyersby offering the same level of comfort in the interiors, coupled with on-road performancecapability. 29
  30. 30. Exports of automobiles from India are boomingWhile the domestic sales of automobiles have been increasing at a significantrate,exports have taken a quantum leap in recent years. The exports of automobiles fromIndia have been growing at a CAGR of 39 per cent for the past four years.Exports growth has been spearheaded by the passenger vehicle segment, which hasgrown at a rate of 57.4 per cent.As a result, the share of passenger vehicles in overallvehicle exports has increased from 18 per cent in 1998-99 to 26 per cent in 2004-05.Europe is the biggest importer of cars from the country while predominantly Africannations import buses and trucks.The Association of South East Asian Nations (ASEAN)region is the prime destination for Indian two wheelers.Most of the key auto component manufacturers in India are very positive about theoutlook for exports, and expect about 15 per cent of their revenue to come from exportsover the next 3-5 years. It has been estimated that exports of auto components fromIndia could be around US$ 20-25 billion by 2015A diagram illustrating the structure of Indian automobile Industry 30
  31. 31. Competitive Advantages 31
  32. 32. India has several competitive advantages in the automobile sector,which have beenanalysed using the following framework.Availability of skilled manpower withengineering and design capabilities India has a growing workforce that is English-speaking, highly skilled and trained in designing and machining skills required bythe automotive and engineering industries. In a combined assessment of manpoweravailability and capabilities, India ranks much ahead of other competing economies (seefigure).Many Indian and global players are leveraging this advantage by increasinglyoutsourcing activities like design and R&D to their Indian arms. The Society of IndianAutomobile manufacturers(SIAM) estimates that automotive vehicle manufacturers areexpected to invest US$ 5.7 billion in the Indian market from 2005 to 2010. Of this,about US$ 2.3 billion will be on research and development and the rest probably oncapex. 32
  33. 33. The Indian automobile industry is highly competitive with a large number of players ineach industry segment. Most of the global majors are present in the passenger vehicleand two wheeler segments. In the components industry too,global players such asVisteon, Delphi and Bosch are well established,competing with domestic players.Thepresence of global competition has led to an overall increase in capabilities of the Indianauto sector. Increase in competition has led to a pressure on margins, and players havebecome increasingly cost efficient.Quality levels have gone up, and there is anincreasing focus on compliance to TPM, TQM and Six Sigma processes. This has led toan increased confidence among domestic players, who are now focusing onopportunities abroad. Key players in the components sector like Bharat Forge andSundaramFasteners have become key global suppliers in their categories. 33
  34. 34. The outlook for India’s automotive sector appears brightThe outlook for India’s automotive sector is highly promising.In view of current growthtrends and prospect of continuous economic growth of over 5 per cent, all segments ofthe auto industry are likely to see continued growth. Largeinfrastructure developmentprojects underway in India combined with favorable government policies will also driveautomotive growth in the next few years. Easy availability of finance and moderate costof financing facilitated by double income families will drive sales in the next few years.India is also emerging as an outsourcing hub for global majors.Companies like GM,Ford, Toyota and Hyundai are implementing their expansion plans in the current year.While Ford and Toyota continue to leverage India as a source of components, Hyundaiand Suzuki have identified India as a global source for specific small car models.At thesame time, Indian players are likely to increasingly venture overseas, both for organicgrowth as well as acquisitions. The automotive sector in India is poised to becomesignificant, both in the domestic market as well as globally.Production, Domestic Sales and Exports TrendAutomobiles 34
  35. 35. While Domestic Sales have been growing strongly since 2000-01, Exports have nearlytripled in the last 5 yearsCommercial Vehicles 35
  36. 36. Growth in the economy and infrastructure development isdriving growth in this segment 36
  37. 37. Passenger Vehicles 37
  38. 38. Market shares 38
  39. 39. Car Sale Surge in June 2006 The sale figures of several automobile companies for first quarter of the currentfinancial year (2006-07) have been declared. I, covered select companies, viz, MarutiUdyog, Tata Motors, Hyundai India and General Motors, having presence only in thepassenger vehicles (PV) and commercial vehicles (CV) segments. India ’s leading car marker Maruti Udyog has reported a 17.5 per cent increasein domestic sales at 44,626 units (in passenger cars, utility vehicles and multi purposevehicles) during June 2006 as compared with 37,995 units in June 2005. Total sales (PV& CV) have grown by 17 per cent to 48,425 units in June 2006 as against 41,390 unitsin the previous year, including export of 3,799 units, up by 11.9 per cent from 3,395units in June 2005. Sales of Maruti 800 have stood at 7,796 units, up by 22.1 per cent inJune 2006 from 6,387 units a year ago. Sales in the domestic A2 segment (comprisingAlto, WagonR, Zen and Swift) have grown by 10.2 per cent to 27,228 units in June2006 compared with 24,703 units a year ago, while sales in the company’s A3 segment(Baleno and Esteem) have risen by 22.3 per cent to 2,680 units compared with 2,191units sold in June 2005. Tata Motors has reported a jump of 37 per cent in total sales, including exports,at 45,223 vehicles in June 2006 as against 33,018 vehicles in June 2005. Its domesticsales of passenger cars have increased by 27.8 per cent to 18,463 units. Its Indica grouphas registered a growth of 41 per cent to 12,271 units over June 2005. The Indigo familyhas reported sales of 2,885 units, a decline of 1.7 per cent in June 2006. Sumo andSafari have accounted a rise of 17.5 per cent to 3,307 units; the new Safari rangelaunched in the latter part of the month (June 2006) has recorded a sale of 1,011 units.On the commercial vehicles (CV) front, the company’s domestic sales in June 2006have augmented by 38.9 per cent to stand at 21,565 units compared with 15,530 units inthe same month a year ago. Sales of medium and heavy commercial vehicles (M&HCV)have stood at 11,808 units, a rise of 23.3 per cent over June 2005, 39
  40. 40. while that of light commercial vehicles (LCV) have stood at 9,757 units, agrowth of 63.8 per cent. The companys total exports have galloped by 71 per cent at5,195 vehicles in June 2006 as compared to 3,037 vehicles in June 2005. Hyundai Motors India has achieved a growth of 56.2 per cent in the passengercars and utility vehicles segment in the domestic market by selling 17,032 vehicles inJune 2006. Sale of passenger cars in the overseas market has stood at 10,219 units, agrowth of 18.6 per cent over June 2005. The company’s total exports (PV) haveincreased by 18.6 per cent to 10,219 units as against 8614 units in June 2005. General Motor India has posted an increase of 53 per cent in domestic sales(including PV, CV) at 3,346 units in June 2006 compared to 2,183 units the June 2005.The company has sold 1,961 units of multi-utility vehicle Chevrolet Tavera, 379 units ofsedan Chevrolet Optra and 1,006 units of the mid-size Chevrolet Aveo during June2006. 40
  41. 41. Four-Wheeler update Maruti Udyog Ltd Maruti Udyog (MUL) sold 39,574 vehicles in June 2004, including 3,159 units of exports, registering a 10% yoy growth over last year’s June sales of 36,038 units. April- Apr 03-Mar Segment Models June June 04 yoy yoy 2003 2004 (%) 2003 2004 (%)A1 M800 13,126 10,761 -18 40,774 31,874 -22 167,561C Omni,Versa 4,557 4,888 7 13,879 14,755 6 59,526A2 Alto,WagonR,Zen 10,337 18,768 82 32,885 59,201 80 176,132A3 Baleno,Esteem 1,074 1,252 17 3,132 4,075 30 14,173Total PassengerCar 29,094 35,669 23 90,670 109,905 21 417,392MUV Gypsy,Vitara 272 746 174 851 1,479 74 3,555Total Domesticsales 29,366 36,415 24 91,521 111,384 22 420,947Export Sales 6,672 3,159 -52 12,496 12,240 -2 51,175Total Sales 36,038 39,574 10 104,017 123,624 19 472,122 The company expects to cross over 500,000 units this fiscal by increasing its share in the A3 or C segment. It enjoys huge market share in the mini segment and the compact segment but with the launch of new Esteem and the Baleno, it is looking to consolidate its position in the C segment as well.The decline in the sales of the Maruti 800 is not a concern as they are taken over by its Alto brand and to some extent by the other A2 models. Alto’s non-AC version starts at a price of Rs2.3lacs accounting for around one- third of overall Maruti sales.It is setting up a Rs3,500mn diesel engine plant at Gurgaon with technology from Fiat GM Power Train, targeting the diesel segment 41
  42. 42. Hyundai Motors India LtdIn June 2004, Hyundai Motor India Ltd (HMIL) recorded total sales of 17,889 unitsincluding exports of 5,694 units. ‘Santro Xing’ recorded a sale of 15,456 units, Accentrecorded 1,602 units, Elantra stood at 701 units, Sonata registered sales of 85 units andthe SUV Terracan sales stood at 45 units.It recorded all time high cumulative sales of91,356 units for the first six months in 2004 growing 39% yoy.Some productionconstraints restricted sales and therefore the company could not fulfill the demand for itsElantra model.HMIL is in the process of investing US$220mn at its manufacturingfacility near Chennai to expand production capacity to 250,000 units by the third quarterof the year 2004.Tata Motors LtdTotal Vehicle sales Volumes 4-Jun 3-Jun yoy (%) Domestic 28,522 21,133 35 Exports 1,661 1,511 9.9 Total 30,183 22,644 33.3Cumulative sales for the first three months in FY05 stood at 84,918 units registering agrowth of 40.6%. Cumulative domestic sales for the fiscal at 80,658 units are growingby 42%.Passenger VehiclesDomestic sales of passenger vehicles for the month of June stood at 15,077 units,registering a growth of 33.7% yoy. Cumulative sales for FY05 stood at 40,781 units, up35.4% yoy.Indica registered sale of 9,426 units, it’s highest ever in a month at in June2004 and cumulative sales stood at 25,136 units growing 37.6%. Indigo too, registered 42
  43. 43. its highest ever sale in a month at 3,224 units in June. Cumulative sales stood at 8,971units,growing 55.9% yoy..Sumo and Safari registered a combined sale of 2,427 units in June,and a cumulative sale of 7,764 units.Commercial Vehicles (CV) Domestic Volumes 4-Jun 3-Jun yoy (%) M&HCV 9,355 6,465 44.7 LCV 4,090 3,393 20.5 Total 13,445 9,858 36.4Cumulative sales for CV’s for the first three months of FY05 stood at 39,887 unitsincreasing 49.7% from 26,641 units for the same period last year.The company isplanning to raise production capacity by 50% in FY05, from about 1.5lac unitscurrently. For this it plans to invest over Rs8,000mn in FY05 for this increase incapacity, product development and marketing.With the launch of the Sumo Victa, it hastargeted a 10-15% expansion in sales of its MUV, Sumo, in FY05.Mahindra & Mahindra Ltd Volumes 4-Jun 3-Jun yoy (%) Utility Vehicles 7,861 6,405 22.7 LCVs 915 744 23 Three-Wheelers 1,279 1,239 3.2 Total 10,055 8,388 19.9 Tractors 6,812 3,552 91.8 43
  44. 44. UV sales in June included 2,103 Scorpio, a growth of 11% from 1,897 for the sameperiod last year.Due to good monsoons last year, the farm equipment segment recoveredand M&M sold nearly 50,000 tractors in FY04. The June 2004 volumes, includingexports, have nearly doubled on a yoy basis.It will spend around Rs3,500mn during FY05 on account of capital expenditure fordevelopment of engines and transmissions, expansion of plant capacity andmodernization and R&D.General Motors India LtdIn June 2004, GM India sold 2,418 cars registering a growth of 123.5% from 1,082 carsfor the same period last year. It sold 804 units of the Chevrolet Optra, 800 units of theChevrolet Tavera (MUV) and 786 units of the Opel Corsa.The growth in sales of GM in India is primarily due to its Chevrolet Optra and OpelCorsa models.Between March and June 2004, the company sold a total of 3,557 Chevrolet Optras.Along with these, GM India also manufactures the Corsa Sail and Swing at its facility inHalol, Gujarat, Chevrolet Forester and the imported Opel Vectra. The company sold15,000 units in 2003.Ashok Leyland Ltd Volumes 4-Jun 3-Jun yoy (%) Apr04-Jun04 Apr03-Jun03 yoy (%) MDV Passenger Domestic 673 990 -32 1,837 2,115 -13.1 Exports 200 86 132.6 466 193 141.5 MDV Goods Domestic 2,491 2,532 -1.6 7,830 5,662 38.3 Exports 508 104 388.5 923 207 345.9 44
  45. 45. LCV Goods Domestic 25 33 -24.2 67 82 -18.3 Exports 1 30 -96.7 13 87 -85.1 Total 3,898 3,775 3.3 11,136 8,346 33.4The domestic sales volumes declined 10.3% yoy in June 2004. Compared to this,exports in the month of June nearly trebled at 709 units against 220 units in June 2003.Total sales including exports went up 3.3% yoy in June 2004 and sales in the first threemonths of FY05 increased 33.4% yoy.Eicher Motors LtdEicher Motors sold 1,506 commercial vehicles in June, registering a growth of 12% yoyas compared to 1,344 units last year. Cumulative sales for the three months in FY05stood at 3,657 units growing 19.5% from 3,059 units in the same period last year.Maruti Udyog sold 9,867 MPV’s in April and May 2004 together whereas M&M sold12 units for the same period - (Excluding UV’s shown above). 45
  46. 46. ANALYSIS 46
  47. 47. Annual Income Less than Rs,150,000 Rs.1,50,000 - Rs2,50,000 Rs. 2,50,000 - Rs3,50,000 Above Rs.3,50,000Annual income is always considered to be an important factor in selection of the targetmarkets for any company. As Tata –Xeta is the middle class segment, so the customersearning less than Rs 1,50,000 is about 20%, the customers lying between Rs1,50,000 toRs 2,50,000 is about 35%, those that in Rs 2,50,000 to Rs 3,50,000 is 25% and thatabove Rs 3,50,000 is 20 %.By this way we can conclude that at most the customers which are called to be theessence of the middle class own Tata- Xeta. 47
  48. 48. Vehicle Brand Maruti Hyundai Tata Mahindra OthersEvery company desires itself to be in the house of its target customers.The customerswhom I sampled where mostly owing one or two cars.In most of the middle classsegments there were about 20% Maruti cars,25% Hyundai cars , where as 45% wasconstituted by Tata cars and Mahindra and other section cars had a share of 5% each . Ican here make a clear cut analysis that Tata-Xeta had the greates market share in themiddle class segment.In this project where we are comparising with Maruti- Alto , I can 48
  49. 49. make a judgment that Tata-Xeta is mostly owned by the customers rather than Maruti- Alto. Source of Knowledge about Tata-Xeta50%45%40%35%30%25% Series120%15%10%5%0% TV Newspaper Friends & Others Advertisement Relatives 49
  50. 50. Ours is a country where customers are highly influenced by the electronic media. Any new product that is in the market has a unique advertisement for itself, in order to attract its target customers in its unique way. This was also shown in my research as the electronic media had a total percentage of 45% ,followed by Newspaper by 30%. People are not eager to get to know about nay new brand by their friends and relatives which is shown by a total of just 15% ,while the options others took away 10%. Reason for attraction towards Tata-Xeta40%35%30%25%20% Series115%10%5%0% Product quality Product price Brand Advertisement People in India had always go for the famous brands and are really brand conscious. They at least trust the famous Indian brands ,who are giving their services and products 50
  51. 51. to their high esteemed clients .When I studied this aspect I also got to know the same asthe brand being the reason of attraction of the customers up to a maximum of 37%followed by the product quality by 27%. The product price is a aspect which attractsabout just 23% of the customers. Purchasing a product just merely seeing aadvertisement is not an Indian’s mind. Therefore it takes just about 12% of the totalsample taken for study. Media of advertisement for attraction Print media Road shows TV- Advertisement HoardingsIndians are attracted by the TV Advertisement as they think watching TV to be afamous mode of entertainment. There are also a number of commercial breaks between 51
  52. 52. various TV shows. Companies target and try to occupy these spaces to get closer to their customers or rather make them acquainted of the product. This was also studied in my research as it occupied about 38%, followed by print media that is advertising through various newspaper and magazines contributes about 28%.Customers are also attracted by the hoardings which are put up by the company that amounts to a total of 22% ,where as only 12% of the customers are attracted by various Road shows. Discount or free gifts attraction80%70%60%50% Series140%30%20%10%0% Yes No 52
  53. 53. People of India are always attracted to the products which give them free gifts ordiscounts on the purchase price. Companies generally give such offers in case of anyfestivals or any marriage season locally known as “lagan”. People wait for this time toget free gifts or coupons or being a part of any lucky draw scheme. In my research also Icame a total of about 73% of customers looking for such offers, but there where 27% ofthe customers who does not gets really attracted by such offers and purchase car aswhne needed don’t even desire to get such gifts. Factors which influence the purchase decision Speed Price Brand Comforts Spareparts availability Looks After sales service 53
  54. 54. “Neighbours’s envy and owner’s pride” is a common rule followed by various Indiansfor which they go for looks. The car should be having good outlook so that even thougha layman may also praise their choice .This aspect therefore was shown in my researchalso which contributed to about 26%.Customers are generally price conscious and whenwe are targeting the middle class customers who do not make a heavy investment, theygo for the products which are within their budget limits. They are always attracted to thecars which are within their budget limits so that they can carry on with it in a wellmanner. About 25%.The aspect brand took a total of 20% share followed by comfortsprovided by the car which is about 14%. Speed, after sales service and spare partsavailability took about 8%, 5% and 2% respectively. Tata-xeta being well equipped with all the features of a small car 90% 80% 70% 60% 50% Series1 40% 30% 20% 10% 0% Yes No 54
  55. 55. People in my sample units seemed to be satisfied by the performance of Tata-Xeta..They agreed to the various features provided by Tata-xeta being a small segmentcar.About 81% of the total sample agreed to this, where as 19% disagreed to it showingtheir high expectations from the brand name which was not otherwise fulfilled .Theysaid they are not satisfies by the performance of the car in the sense of its mileage whencompared to Maruti-Alto in the same segment and the same price range. Diffrences between Tata-Xeta and Maruti- Alto Quality Price Looks Speed Comforts Mileage 55
  56. 56. Customers when they purchase a car generally do a lot of field study,through which theycan easily differentiate between various cars. When I consulted in terms of Tata- Xetaand Maruti-Alto they were various options coming up.The difference in mileage was themost premium factor to be considered the mileage of Tata-Xeta and that of Maruti-Altoare 15.3km/lt and 18.3km/lt. It was pointed out by various customers there fore itcontributed about 36%, followed by 22% about the quality they feel that Tata-xeta ishaving the more robust quality in comparison with Maruti-Alto.Speed was also a factortake into consideration with a total of 16%, followed by looks by 12%.Pricedifferentiation took about 8% of the customers into consideration and comforts just took6% of the total share. ConclusionThis project research is the analysis of customer orientation towards the newly launchedcar Xeta by the branded company Tata Motors. People belonging to the middle classgenerally preferred the Tata-Xeta going on for its brand name as its history goes withdelivering the value. This was also shown in my research as the electronic media wasthe most attractive method of advertising Tata-Xeta. The customers sampled thought thecar they had should have good exterior. .The customers of Tata-Xeta just had one problem with their car was the mileage givenby their car in comparison with Maruti-Alto which is also a They said they are notsatisfies by the performance of the car in the sense of its mileage when compared toMaruti-Alto in the same segment and the same price range. Thus , the view prevalent inmy mind after this research was conducted that if Tata-Xeta would work on its mileageconcept then would definitely it would emerge as a winner in small car segment andalso will prove better than Maruti Cars. 56
  57. 57. 57
  58. 58. Limitations of the study1. Money was the major constraint during my project.2. Duration of the study also limited for further intensive study.3. Mostly stress was given on primary data collection and it was difficult to collect secondary data from organization and dealers.4. Limited coverage area was also a major constraint while conducting the study. 58
  59. 59. RecommendationsTata Motors is a company which is maestro in its field, but there are somerecommendations which I will like to give to even perform it better. • This project was about to study the customer orientation toward Tata-Xeta, many of the customers complained about the mileage given by Tata-Xeta is quite less than that of Maruti Alto. The mileage given by that of Tata-Xeta is 15.3km/lt and that of Mruti –Alto is 18.3 km/lt. The customers who use this car for their business purpose get effected by this shortcoming. So for this case they prefer Maruti-Alto belonging to the same price range as the price of petrol is also shooting up. • Many customers complained about the advertisement shown for Tata-Xeta, which they called to be a confusing one. The advertisement didn’t showed clearly all the features of the car, rather it showed what fun a group of girls can make with the car. It should rather be changed. 59
  60. 60. Bibliography• http://carsinindia.com/indicaxeta1.asp• http://ir.tatamotors.com/PushFile.php? filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdf• http://www.maxabout.com/automotive/auto_cars/companies/Tata.aspx• http://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html• http://www.carwale.com/Research/chooseCarsForComparison.aspx 60
  61. 61. Annexure 61
  62. 62. 62
  63. 63. 62
  64. 64. 62

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