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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
AMITY GLOBAL BUSINESS SCHOOL
KORAMANGALA 3RD
BLOCK
BANGALORE -34
KARNATAKA
AMITY GLOBAL BUSINESS SCHOOL
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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
AMITY GLOBAL BUSINESS SCHOOL
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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
AMITY GLOBAL BUSINESS SCHOOL
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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
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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
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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
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CHAPTER 1
Executive summary
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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
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Chapter 2
AUTOMOTIVE INDUSTRY
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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.
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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
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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.
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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%
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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
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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).
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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.
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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
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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.
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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%
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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%
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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.
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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
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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 $1.2 trillion economy.
Further, industry experts believe that the nation will soon establish its stand as an automobile hub
exporting about 2.7 million units and selling about a million units to be operated on the domestic
roads.
By 2020, India's share in global passenger vehicle market is expected to double to 8 per cent from
4 per cent over 2010–11. Automobiles production increased at a compound annual growth rate
(CAGR) of 11.8 per cent over FY 05–13. Passenger vehicles was the fastest growing segment,
representing a CAGR of 12.9 per cent.
Strong growth in demand due to rising income, growing middle class, and a young population is
expected to drive India among the world’s top five auto manufacturers by 2015. Growth in export
demand is also set to accelerate. Automobile export volumes increased at a CAGR of 19.1 per cent
during FY 05–13. India has significant cost advantages; auto firms save 10–25 per cent on
operations vis-à-vis Europe and Latin America. A large pool of skilled manpower and a growing
technology base would induce greater investments.
The Government of India aims to develop the country as a global manufacturing as well as
research and development (R&D) hub. There has been a wide array of policy support in the form
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of sops, taxes and foreign direct investment (FDI) encouragement. National Automotive Testing
and R&D Infrastructure Project (NATRiP) was set up at a total cost of US$ 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$, according to data published by Department of
Industrial Policy and Promotion (DIPP), Government of India.
The overall automobile exports grew by 6.39 per cent during April–February 2014. Passenger
vehicles, three wheelers and two wheelers registered growth at 6.44 per cent, 16.40 per cent and
5.41 per cent respectively, compared to the same period last year.
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Major Developments & Investments:
 German auto maker Volkswagen is planning to expand production capacity and introduce
a slew of new models. The group is looking at investing Rs 1,500 crore (US$ 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.
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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.
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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.
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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.
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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.
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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.
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SOME OF THE AUTOMOBILE COMPANIES THAT ARE DOING BUSINESS IN
INDIA ARE:
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Part:3
Company profile
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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
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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.
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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.
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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
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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.
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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
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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
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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
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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.
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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).
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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
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Automotive :-
Zest -
,bolt-
jaguar-
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Nano -
Xenon-
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Safari storme-
tata batteries-
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Tata sumo gold-
sumo grande mk II-
tata venture-
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Tata Indica vista-
Tata aria-
indigo ecs-
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land rover-
Manza -
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Tata trucks-
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Tata buses -
Financial: - Tata capital, Tata aig, Tata aia, Tata mutual fund
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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
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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.
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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.
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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.
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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.
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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.
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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.
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My work at prerana motors
132/15,
Veeni court
Lalbagh road
Bangalore -560027
Email : scv@cvd.preranamotors.com, ho@preranamotors.com
www.preranamotors.com
ph: 40055064
40055000
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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
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ABOUT THE CAR
MOTORS
SUPER ACE
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SUPER ACE
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Super Ace: World class product
for Indian market
Super in
Performan
ce!!
Super in
Space!!
Super in
Deployme
nt!!
Super in
Comfort!!
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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%
Grade ability 39%
 5 –speed gearbox
 Overdrive gear
 Fuel efficient
 Faster trips
 Easy gear shifting
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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
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 Car like cabin
 Power steering
 Bucket seats
 Independent suspension
 Blower & AC (option)
 Digital clock
 Mobile charger
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Styling Features
 ORVM on both sides
 Sunvisor on driver’s side
 Provision for mobile charging
and lighter
 Windscreen wiper( butterfly)
and washer
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Maneuverability
 Turning Circle Dia of 10.2m
only
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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
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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
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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:
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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:
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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
Mahindra Bolero Maxi
Truck Plus
4855
1700
1725
3150
170
NA
Mahindra Bolero Maxi
Truck Plus
1+1
45.0
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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
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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
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Research objective
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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.
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Chapter: 5
Research Methodology
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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.
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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
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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.
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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
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I understand know why this word is important for every business
SANKALPStands 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
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Findings
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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.
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Data analysis
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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.
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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
AMITY GLOBAL BUSINESS SCHOOL
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
1
2
5
1 1
6
1 1 1 1
2
1 1
5
1
2
5
1 1
6
1 1 1 1
2
1 1
0
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 4.5
NOOFRESPONDENTS
PAYLOAD CARRIED (TON)
Count of bolero maxi
truck Average Payload
Carried by Vehicle (in
tonnes)
Count of tata super ace
average payload carried
by vehicle/ton
1 16
1.5 9
2 4
Tata super ace
AMITY GLOBAL BUSINESS SCHOOL
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 1
0
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
NOOFRESPONDENTS
MILEAGE OFFERED BY VEHICLE
Count of Bolero maxi truck
Mileage Offered By The
Vehicle (Kms / litre)
Count of tata super ace
mileage offered by the
vehicle (kms/liter)
8 2
9 5
10 21
12 1
Tata super ace
AMITY GLOBAL BUSINESS SCHOOL
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
100
125
150
200
300
450
500
NOOFRESPONDENTS
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 70
NOOFRESPONDENTS
DISTANCE TRAVELLED DAILY(KM)
Total
Bolero maxi truck
Tata super ace
AMITY GLOBAL BUSINESS SCHOOL
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
200 250 280 300 350 370 380 390 400 450
NOOF
RESPONDENTS
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
AMITY GLOBAL BUSINESS SCHOOL
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
NOOFRESPONDENTS
Total
1
1
3
1
2
20
1
Total
AMITY GLOBAL BUSINESS SCHOOL
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 rate
your vehicle (value for
money) on a scale of 10:-
Count of bolero maxi truck
Rate on Vehicle (On scale of
10)
AMITY GLOBAL BUSINESS SCHOOL
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
AMITY GLOBAL BUSINESS SCHOOL
110
TATA MOTORS
Conclusion
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT
PROJECT REPORT 2(2014)TATA PROJECT

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PROJECT REPORT 2(2014)TATA PROJECT

  • 1. 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 AMITY GLOBAL BUSINESS SCHOOL KORAMANGALA 3RD BLOCK BANGALORE -34 KARNATAKA
  • 2. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 7 TATA MOTORS CHAPTER 1 Executive summary
  • 8. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 9 TATA MOTORS Chapter 2 AUTOMOTIVE INDUSTRY
  • 10. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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
  • 15. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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 $1.2 trillion economy. Further, industry experts believe that the nation will soon establish its stand as an automobile hub exporting about 2.7 million units and selling about a million units to be operated on the domestic roads. By 2020, India's share in global passenger vehicle market is expected to double to 8 per cent from 4 per cent over 2010–11. Automobiles production increased at a compound annual growth rate (CAGR) of 11.8 per cent over FY 05–13. Passenger vehicles was the fastest growing segment, representing a CAGR of 12.9 per cent. Strong growth in demand due to rising income, growing middle class, and a young population is expected to drive India among the world’s top five auto manufacturers by 2015. Growth in export demand is also set to accelerate. Automobile export volumes increased at a CAGR of 19.1 per cent during FY 05–13. India has significant cost advantages; auto firms save 10–25 per cent on operations vis-à-vis Europe and Latin America. A large pool of skilled manpower and a growing technology base would induce greater investments. The Government of India aims to develop the country as a global manufacturing as well as research and development (R&D) hub. There has been a wide array of policy support in the form
  • 34. AMITY GLOBAL BUSINESS SCHOOL 34 TATA MOTORS of sops, taxes and foreign direct investment (FDI) encouragement. National Automotive Testing and R&D Infrastructure Project (NATRiP) was set up at a total cost of US$ 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$, according to data published by Department of Industrial Policy and Promotion (DIPP), Government of India. The overall automobile exports grew by 6.39 per cent during April–February 2014. Passenger vehicles, three wheelers and two wheelers registered growth at 6.44 per cent, 16.40 per cent and 5.41 per cent respectively, compared to the same period last year.
  • 35. AMITY GLOBAL BUSINESS SCHOOL 35 TATA MOTORS Major Developments & Investments:  German auto maker Volkswagen is planning to expand production capacity and introduce a slew of new models. The group is looking at investing Rs 1,500 crore (US$ 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 38 TATA MOTORS
  • 39. AMITY GLOBAL BUSINESS SCHOOL 39 TATA MOTORS
  • 40. AMITY GLOBAL BUSINESS SCHOOL 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.
  • 41. AMITY GLOBAL BUSINESS SCHOOL 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.
  • 42. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 43 TATA MOTORS SOME OF THE AUTOMOBILE COMPANIES THAT ARE DOING BUSINESS IN INDIA ARE:
  • 44. AMITY GLOBAL BUSINESS SCHOOL 44 TATA MOTORS Part:3 Company profile
  • 45. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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.
  • 50. AMITY GLOBAL BUSINESS SCHOOL 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
  • 51. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 56 TATA MOTORS
  • 57. AMITY GLOBAL BUSINESS SCHOOL 57 TATA MOTORS Automotive :- Zest - ,bolt- jaguar-
  • 58. AMITY GLOBAL BUSINESS SCHOOL 58 TATA MOTORS Nano - Xenon-
  • 59. AMITY GLOBAL BUSINESS SCHOOL 59 TATA MOTORS Safari storme- tata batteries-
  • 60. AMITY GLOBAL BUSINESS SCHOOL 60 TATA MOTORS Tata sumo gold- sumo grande mk II- tata venture-
  • 61. AMITY GLOBAL BUSINESS SCHOOL 61 TATA MOTORS Tata Indica vista- Tata aria- indigo ecs-
  • 62. AMITY GLOBAL BUSINESS SCHOOL 62 TATA MOTORS land rover- Manza -
  • 63. AMITY GLOBAL BUSINESS SCHOOL 63 TATA MOTORS Tata trucks-
  • 64. AMITY GLOBAL BUSINESS SCHOOL 64 TATA MOTORS Tata buses - Financial: - Tata capital, Tata aig, Tata aia, Tata mutual fund
  • 65. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 72 TATA MOTORS My work at prerana motors 132/15, Veeni court Lalbagh road Bangalore -560027 Email : scv@cvd.preranamotors.com, ho@preranamotors.com www.preranamotors.com ph: 40055064 40055000
  • 73. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 74 TATA MOTORS ABOUT THE CAR MOTORS SUPER ACE
  • 75. AMITY GLOBAL BUSINESS SCHOOL 75 TATA MOTORS SUPER ACE
  • 76. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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% Grade ability 39%  5 –speed gearbox  Overdrive gear  Fuel efficient  Faster trips  Easy gear shifting
  • 78. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 79 TATA MOTORS  Car like cabin  Power steering  Bucket seats  Independent suspension  Blower & AC (option)  Digital clock  Mobile charger
  • 80. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 81 TATA MOTORS Maneuverability  Turning Circle Dia of 10.2m only
  • 82. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 84 TATA MOTORS
  • 85. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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 Mahindra Bolero Maxi Truck Plus 4855 1700 1725 3150 170 NA Mahindra Bolero Maxi Truck Plus 1+1 45.0
  • 88. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 90 TATA MOTORS Research objective
  • 91. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 92 TATA MOTORS Chapter: 5 Research Methodology
  • 93. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 97 TATA MOTORS I understand know why this word is important for every business SANKALPStands 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. AMITY GLOBAL BUSINESS SCHOOL 98 TATA MOTORS Findings
  • 99. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 100 TATA MOTORS Data analysis
  • 101. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 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 1 2 5 1 1 6 1 1 1 1 2 1 1 5 1 2 5 1 1 6 1 1 1 1 2 1 1 0 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 4.5 NOOFRESPONDENTS PAYLOAD CARRIED (TON) Count of bolero maxi truck Average Payload Carried by Vehicle (in tonnes) Count of tata super ace average payload carried by vehicle/ton 1 16 1.5 9 2 4 Tata super ace
  • 104. AMITY GLOBAL BUSINESS SCHOOL 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 1 0 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 NOOFRESPONDENTS MILEAGE OFFERED BY VEHICLE Count of Bolero maxi truck Mileage Offered By The Vehicle (Kms / litre) Count of tata super ace mileage offered by the vehicle (kms/liter) 8 2 9 5 10 21 12 1 Tata super ace
  • 105. AMITY GLOBAL BUSINESS SCHOOL 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 80 100 125 150 200 300 450 500 NOOFRESPONDENTS 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 70 NOOFRESPONDENTS DISTANCE TRAVELLED DAILY(KM) Total Bolero maxi truck Tata super ace
  • 106. AMITY GLOBAL BUSINESS SCHOOL 106 TATA MOTORS Earning profit per trip: Tata super ace M&M bolero maxi truck 5 1 4 5 2 1 3 1 6 1 200 250 280 300 350 370 380 390 400 450 NOOF RESPONDENTS 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. AMITY GLOBAL BUSINESS SCHOOL 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 NOOFRESPONDENTS Total 1 1 3 1 2 20 1 Total
  • 108. AMITY GLOBAL BUSINESS SCHOOL 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 rate your vehicle (value for money) on a scale of 10:- Count of bolero maxi truck Rate on Vehicle (On scale of 10)
  • 109. AMITY GLOBAL BUSINESS SCHOOL 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. AMITY GLOBAL BUSINESS SCHOOL 110 TATA MOTORS Conclusion