Project on

Comparative study of TATA MOTORS with the Industrys Competitor & CUSTOMER SATISFACTION SURVEY

Exceutive Summary

This project is on Comparative study of TATA MOTORS with the

Industrys Competitor & CUSTOMER SATISFACTION SURVEY

based on market performance and on customer survey. The main objectives of the project are: Market performance in automobile industry Market position. Economic and the industry environment Cost saving initiatives Awareness regarding the facilities provided by Tata Motors. Overall opinion about Tata Motors. Satisfaction amongst the customers of Tata Motors

For this project customer research was carried out at various area of Thane District of Maharashtra. I learnt analysis of Market performance by Tata Motors and to find different aspects for compare the standing vis--vis industry and customers perception about TATA Motors.

THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS

1. Company Overview:
This part describes the company profile. This part recognizes the achievements and rewards the company has achieved, it also gives little insights into what company offers to the Corporate and the Consumers. This section also describes the kind of technology used.

2. Company Profile
This section gives the information about the company. It includes the company history which depicts the company from the period of foundation. This section also products of the company producing by the company.

Competitors of company:
The companys competitors are finding and study the business during the financial years

FINDINGS:
A detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the peoples car as it is satisfactory on all other parameters: knowledgeable sales persons, employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good. At the end it is submitted to ASMs Institute of management and Computer studies

Introduction

India is an emerging country with huge potential. The domestic economy is now growing at around 9-10% per annum and Indias importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the center of Indias new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturers product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain.

The automobile industry in India accounts for a business volume of $45 billion and has the potential to grow much faster both through Indian as well as international manufacturers who have established huge facilities in the country With the worlds second largest and fastest-growing population, there is no denying Indias potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers The implications, market drivers and scope of a future massive Indian vehicle market are covered in the India Strategic Market Profile, a brandnew forecast of Indian automotive and related activity to 2020. Based on Max Pemberton's unique relational long-term forecasting model, it forecasts car and CV sales, demographics, materials usage, auto industry employment, and explains their inter- year of healthy growth in auto industry

INDIA THEN & NOW

1983

Number of brands 2 Number of models 2

In 2011 2008 Number of brands 49 Number of models 95

LITERATURE REVIEW

Released on 27 July 2009

Tata Motors July sales at 48,054 nos., growth of 18% M&HCV sales record year-on-year growth after almost a year
- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and

passenger vehicles in July 2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. The companys domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599 nos., a 23% growth over 37,033 nos. sold in July last year. Cumulative sales (including exports) for the company for the fiscal at 171,168 nos., was lower by 1%, compared to 172,462 nos. sold last year. Commercial Vehicles The companys sales of commercial vehicles in July 2009 in the domestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in July last year. LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658 nos. turning positive after almost a year with a growth of 6% over July last year and the highest since September 2008 Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100,464 nos., a growth of 7% over last year. Cumulative LCV sales were 63,180 nos., a growth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% over last year. Passenger Vehicles The passenger vehicle business reported a total sale and distribution offtake of 19,881 nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32% increase compared to 15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by 21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were 2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July last year. The Indigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV range of Sumo/Safari accounted for sales of 2,638 nos., flat compared to July last year. The company began the sale and deliveries of the Jaguar and Land Rover range through the brands flagship store in Mumbai. The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813 Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica range at 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422 nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%. Exports The Companys sales from exports at 2,455 vehicles in July 2009 were lower by 34% compared to 3,696 vehicles in July last year. The cumulative sales

from exports for the fiscal at 7,676 nos. were lower by 40% over 12,855 nos. in the same period last year.
Released on 17 July 2009

TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R. Karm

Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of

Mumbai has become the first customer in India of the Tata Nano. Mr. Vichare received his choice, the Tata Nano LX (Lunar Silver), at the hands of the Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, at the companys dealership, Concorde Motors, today. Speaking on the occasion, Mr. Tata said, I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern, contemporary, emission-friendly city car. Along with Mr. Vichare, two other customers, Mr. Ashish Balakrishnan (Tata Nano LX Sunshine Yellow) and Kores India Limited (Tata Nano LX Lunar Silver), also received their cars today. As planned, Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country. Dispatches to dealerships have begun from the Pantnagar plant, where the car is being produced, in accordance with schedules informed to customers .
Released on 28 June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rover's official entry to the fast-growing Indian car market
was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors. Jaguar and Land Rover's award-winning vehicles are well known around the world. Jaguar has become one of the world's leading producers of beautiful fast cars. Land Rover produces the worlds most versatile all-terrain vehicles, combining refined luxury with a true breadth of capability. The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover. Further details, including specifications, are available on the new Jaguar India website (www.jaguar.in) and Land Rover India website (www.landrover.in). Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar and Land Rover vehicles, with a dedicated showroom section for each brand. It aims to establish a benchmark experience in luxury car sales

in India, with plans to develop the dealer network throughout 2009 and 2010. Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands, accompanied by a parts and service network. We hope that they will delight customers in India just as they have done in markets the world over." Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India. It is an exciting time to be entering the Indian market, a country with increasing affluence and an economy which is still growing. We believet hat the Indian market holds significant growth potential in the long term, and we hope to tap the demand for premium vehicles from discerning customers." ..

TATA MOTORS TO INTRODUCE AIR CAR

Ben MaGreow

Tata Motors is taking giant strides and making history for itself. First the
Landrover-Jaguar deal, then the world's cheapest car and now it is also set to introduce the car that runs on air, compressed air to be specific. With fuel prices touching nearly $150 per barrel, it is about time we heard some breakthrough! India's largest automaker Tata Motors is set to start producing the world's first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Ngre for Luxembourg-based MDI, uses compressed air, as opposed to the gasand- oxygen explosions of internalcombustion models, to push its engine's pistons. Some 6000 zeroemissions Air Cars are scheduled to hit Indian streets by August of 2009. The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would have a range of around 300 km between refuels. The cost of a refill would be about Rs. 85 ($2). Tata motors also plans to launch the world's cheapest car, Tata Nano priced famously at One lakh rupees(1200) by October. The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are no keys - just an access card which can be read by the car from your pocket. According to the designers, it costs less than 50 rupees per 100Km (about a tenth that of a petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving), a factor which makes a perfect choice in cities where the 80% of motorists drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-300 kilometers.

As a viable alternative, the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours. Due to the absence of combustion and, consequently, of residues, changing the oil (1 litre of vegetable oil) is necessary only every 50,000Km.] The temperature of the clean air expelled by the internal air conditioning system with no need for gases or loss of power. .

EFFECT OF INFLATION ON CAR MARKET

- Hindustan Times

The growth in the car market has shown declining results as a result of the
inflation. The effect on inflation has affected every sector which is related to car manufacturing and production. The increase in the price of fuel and the steel has led to a slower growth rate of the car industry in India. The production of Indian cars has been brought to a noticeable halt for inflation. It has also been noticed that leading car manufacturer in India like the Tata Motors, Maruti, Hyndai and Honda are trying hard to boost their production and sales of the cars. The effect of inflation has affected not only the production and sales of Indian cars but also has significantly affected the car dealer, officials and car financers. Research and observations have led to the conclusion that in the year 2008, the car market and the car industry is expected to witness 8-9% fall. The effect of inflation on the car manufacturers have in turn affected the dealers in a way where they are being pressurized to push the sales graph higher and keep a high profit margin. The financers in the cycle are pressurized by both car manufacturers and dealers to pay the consumers a cent percent financial assistance by reducing on the loan interest rate. Overall it has been noticed that the automobile market in India and specially the car market in India have experienced a downtrend with the inflation affecting almost every industry to which the car market is essentially related in a scenario where the stock market is on a slow rise. Due to inflation it has also been noticed that the sales of car are being motivated by the discount offers that the automobile companies are offering to the buyers. Some car manufactures have gone to the extent of giving exchange offers to the consumers and some have introduced a competitive finance rates. The effect of inflation has taken the rise in the price rate of the cars by 3-4%, which in turn suffices the need to meet the rise in price of the raw materials to build a car.

COMPANY PROFILE

TATA GROUP
Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of which 61 per cent is from business outside India. The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Groups 27 publicly listed enterprises have a combined market capitalization of some $60 billion, among the highest among Indian business houses, and a shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications. The Groups major companies are beginning to be counted globally. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the worlds second largest manufacturer of soda ash. Tata Communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Businessweek ranked the Group sixth amongst the Worlds Most Innovative Companies. And the Reputation Institute, USA, recently rated it as the Worlds Sixth Most Reputed Firm. Founded by Jamsetji Tata in 1868, the Tata Groups early years were inspired by the spirit of nationalism. The Group pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Groups pioneering spirit has been showcased by companies like Tata Consultancy Services, Indias first software company, which pioneered the international delivery model, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, for commercial launch by end of 2008.

The Tata Group has always believed in returning wealth to the society it serves. Twothirds of the equity of Tata Sons, the Tata Group.s promoter company, is held by philanthropic trusts which have created national institutions in science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined developmentrelated expenditure of the Trusts and the companies amounts to around 4 per cent of the Groups net profits. Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 is ranked the worlds fourth fastest. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its shareholders, its employees and wider society.

CORE VALUES OF TATA

At the Tata Group our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities. This requires us to grow aggressively in focused areas of business. Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from employees and companies. The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance Group synergy and becoming globally competitive is the route to sustained growth and long-term success.

FIVE CORE VALUES

The Tata Group has always sought to be a value-driven organization. These values continue to direct the Groups growth and businesses. The five core Tata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and

humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible

standards in our day-today work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and
with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the

countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

TATA Group Companies

Family pride
The TATA family of enterprises comprises 98 companies in seven business sectors. This section lists all these companies under the sectors in which they operate, besides the two promoter companies of the Group.

The Seven Business Sectors are:

1. Engineering (AUTOMOTIVE):
Tata Auto comp systems: Subsidiaries/Associates/Joint Ventures: International Automotive, Knorr Bremse Systems for commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering, TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics Division, Taco Kunstofftechnik, TACO MobiApps Telemaics, TACO Supply Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Yazaki Auto Comp, TC Springs, Technical Stampings Automotive. Tata Motors: Subsidiaries /Associates/ Joint Ventures: Concorde Motors, HV Axels, HV Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata Technologies, Telco construction Equipment. Engineering Services Tata Projects, TCE Consulting Engineers, Voltas

Engineering Products TAL Manufacturing Solutions, Telco Construction Equipment Company, TRF

2. METALS:
TATA STEEL Subsidiaries /Associates/ Joint Ventures: Hooghly Met Coke and Power Company, Jamshedpur Injection Powder (Jamipol), Jamshedpur Utility and Service Company Limited (JUSCO), Lanka Special Steel, Mjunction Serves, NatSteel, Sila Eastern Company, Tata Blue Scope Steel, Tata Metallic, Tata Pigments, Tata Refractories, Tata Ryerson, Tata Sponge Iron, Tata steel (Thailand), Tata Steel KZN, Tayo Rolls, The Dhamra Port Company, The Indian Steel and Wire Products, The Tinplate Company of India, Tm International Logistics, TRF.

3. ENERGY:
POWER Tata BP Solar India Tata Power Subsidiaries /Associates/ Joint Ventures: Tata Ceramics, Tata Power Trading, North Delhi Power Limited OIL AND GAS Tata Petrodyne

4. CHEMICALS:
Rallis India Tata Pigments Tata Pigments

PHARMA Advinus Therapeutics

5. SERIVES:
HOTELS AND REALTY Indian Hotels (Taj Group) Subsidiaries /Associates/ Joint Ventures: Taj Air, Roots Corporation (Ginger Hotels) THDC Tata Realty and Infrastructure

FINANCIAL SERVICES Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management, Tata Capital, Tata Financial Services, Tata Investment Corporation OTHER SERVICES

Tata Quality Management Services, Tata Services, Tata Strategic Management Group

6. CONSUMER PRODUCTS:
Infiniti Retail Tata Tea Subsidiaries /Associates/ Joint Ventures: Tata Coffee, Tata Tetley, Tata Tea Inc Tata Ceramics Tata McGraw Hill Publishing Company Titan Industries Trent

INFORMATION SYSTEMS AND COMMUNICATIONS:

Nelito Systems Tata Consultancy Services Subsidiaries /Associates/ Joint Ventures: APONLINE, Airline Financial Support Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corporation, WTI Advance Technology. Tata Elxsi SerWizSol Tata Interactive Systems Tata Technologies

COMMUNICATIONS
Tata Sky Tata Teleservices Subsidiaries /Associates/ Joint Ventures: Tata Teleservices (Maharashtra) Tata Communication Tata Net INDUSTRIAL AUTOMATION Nelco Subsidiaries /Associates/ Joint Ventures: Tatanet

TATA MOTORS LIMITED

The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, With manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. Tata motors passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2003-2007, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called A share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle The Ford Motor Companys. It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units, they are Tata Daewoo commercial vehicle company, HV transmissions, Tata motors finance, Tata technologies and TELCO construction equipment, the sales of the stakes would possible conclude by June 2009, helping it to raise further funds for this acquisition, earlier in July it sold 24% stake in an Auto component unit to a group firm and booked a profit of Rs. 110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS. 486 crores to Tata Sons, the holding company of whole Tata group firms. "The Company aims to monetize a part of its funds through a phased divestment of certain investments preferably as inter-group sales wherever possible at current market prices in the coming six to eight months," the money that will be released from these investments will become a part of the capital to be lifted for repayment of the bridging loan taken for the Jaguar- Land Rover

acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March from a consortium of banks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28th may its share value has fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at 15, 049.86 points.

The Analysts say that, this is a strategic move taken by Tata Motors because it is allowing the company to make a lot of profit even when the market is in the financial pressure allows Tata sons to raise its wager in group companies. If the company will follow the above mentioned trends then possibly it can raise its finances in a low liquidity and high interest rate set-up.

INDUSTRY OUTLOOK
The Indian Automobile Industry enjoys the advantage of low cost base, high skilled labour, strong ancillary network coupled with Governments support by way of concessional excise duty of 16% for small cars, ban on overloading and also significant investments proposed for removing infrastructure bottlenecks. The CV industry is directly related to the economic growth and development. The growth in demand for CVs is directly related to the IIP index and any upsurge in economic activities will call for more cargo movement in the economy. The domestic CV market grew at a CAGR of 26.7% during the last 6 years. In FY07, the CV segment registered a growth of 32.2% due to Supreme Courts ban on over loading trucks. However, we believe that this is a one-time demand and the CV segment may not witness such kind of growth repeatedly. There is a regulation that restricts the movement of vehicles above certain age (15 years in National Capital Region and 8 years in Mumbai). Though the rule is not being followed strictly at present, in future if this rule is implemented strictly it will result in huge replacement demand. With the Indian economy expected to grow at 8.5% to 9% in coming years, we expect the demand for CVs to be fairly decent except for the fact that the industry is currently experiencing a correction due to sharp spurt in demand in the previous years. The CV industry witnessed a change in demand dynamics in last few years. The demand for LCVs in the <=3.5 tonnes segment is rising at the cost of demand in 5 to 7.5 tonnes category, while demand in 7.5 to 12 tonnes segment and 16.2 to 25 tonnes segment is booming at the cost of demand in 12 to 16.2 tonnes segment. Demand for trailers of >35.2 tonnes is witnessing a surge while demand for semi-trailers in 26.4 to 35.2 tonnes segment is suffering. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution, which is now adopted by transportation players because of improved road infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic congestion issues. According to the Hub & Spoke model, HCVs plying over the highways to transport goods to different states and districts, while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3.5 tonner vehicles.

History

History of TATA Motors

Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and J. Baker. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany.

3. TATA Indica 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. After thelaunch of three more vehicles, Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favourite. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata Motors also successfully

exported large quantities of the car to South Africa.The success o Indica in many ways marked the rise of Tata Motors.

3. TATA Brads DAEWOO ACQUISITION

Tata Novus is one of the best selling commercial trucks in South Korea.

With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were: Companys global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoos (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a

major improvement in the Road infrastructure was done through the National Highway Development Project Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus.

HISPANO CARROCERA
Hispano Divo at the 2008 FIAA in Madrid In 2005, sensing the huge

opportunity in the fully built bus segment, Tata Motors became acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it controlling rights of the company.

Hispano Divo at the 2008 FIAA in Madrid

JAGUAR CARS AND LAND ROVER

After the acquisition of British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names Tata Motors became a major player in the international automobile market. Jaguar XF Land Rover's Range Rover On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. The sale was completed on 2 June 2008 Tata has gained the rights to the Daimler, Lanchester, and Rover brand names. In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies.

JOINT VENTURES
Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and introduced its highend inter-city buses in the country. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.

IMPORTANT DEVELOPMENTS
In 2005 & 06

Tata Ace was India's first mini truck Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.By 2005; Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the number makers for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its introduction. Tata Ace has also been exported to several European, South American and African countries. Electricversions of Tata Ace are sold through Chrysler's Global Electric Motorcars division.

In 2007
In 2007, Tata Motors launched several concept models and future designs of existing models. It also formed joint ventures with various local companies in several countries to assemble Tata cars. Tata Motors launched a re-

designed version of Tata Xenon TL during Motor Show Bologna which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show. Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel engine technology. Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. The project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoos design was not in sync with the needs of sophisticated European customers. The company has formed a joint venture with Thailands Thonburi Company, an independent auto assembler, in which Tata Motors will hold a 70% stake.

In 2008
COMPRESSED AIR CAR

Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to have "the backing of Tata". It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3 minutes. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town, but "the compressed air driving the pistons can be boosted by a fuel burner". OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. It is actually a dual fuel car but it is more efficient than any present Hybrid cars.

IN 2009 AND ONWARDS Electric vehicles

Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009. Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of Norway for US$1.93 M, which specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in Europe next year.

GLOBAL OPERATIONS
Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas 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 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, giving it controlling rights of the

company. Hispanos presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In 2006, it formed a 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 and select international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa. The Government of India announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an automaking subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively. The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets. With the unveiling of Tata Elegante

during Geneva Motor Show, Tata Motors revealed its intention to enter the sedan and sports car markets. Tata Indica assembled in Thailand and Argentina. Tata Prima The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe.

MILESTONES
1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products. 1948 Steam road roller introduced in collaboration with Marshall Sons (UK). 1954 Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract. 1959 Research and Development Centre set up at Jamshedpur. 1977 First commercial vehicle manufactured in Pune. 1983 Manufacture of Heavy Commercial Vehicle commences. 1985 First hydraulic excavator produced with Hitachi collaboration. 1986 Production of first light commercial vehicle, Tata 407, indigenously designed, followed by Tata 608. 1991 Launch of the 1st indigenous passenger car Tata Sierra. One millionth vehicle rolled out. 1994 Launch of Tata Sumo - the multi utility vehicle. 1995 Mercedes Benz car E220 launched. 1996 Tata Sumo deluxe launched. 1997 Tata Sierra Turbo launched. 1998

Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicles rolled out. Indica, India's first fully indigenous passenger car launched.

2001 Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of the Tata Safari EX

2002

2,00,000th Indica rolled out. Launch of the Tata Sumo'+' Series Launch of the Tata Indigo. Tata Engineering signed a product agreement with MG Rover of the UK.

2003 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out 2004 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement and completes acquisition of Daewoo Commercial Vehicle Company Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty truck 'NOVUS' , in Korea Sumo Victa launched Indigo Marina launched Tata Motors lists on the NYSE 2005 Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune The Tata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches - Starbus and Globus - launched Tata Ace, India's first mini truck launched The power packed Safari Dicor is launched Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced and sold Inauguration of new factory at Jamshedpur for Novus Launch of Tata Novus Launch of Novus range of medium trucks in Korea, by Tata Daewoo Commercial Vehicle Co. (TDCV)

2006

Tata Motors vehicle sales in India cross four million mark Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors first plant for small car to come up in West Bengal Tata Motors and Fiat Group announce three additional cooperation agreements

2007 Construction of Small Car plant at Singur, West Bengal, begins on January 21 New 2007 Indica V2 range is launched Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), announce formation of a joint venture company in Thailand to manufacture, assemble and market pickup trucks. Roll out of 100,000th Ace Tata-Fiat plant at Ranjangaon inaugurated Launch of a new Upgraded range of its entry level utility vehicle offering, the Tata Spacio. Launch of Magic, a comfortable, safe, four-wheeler public transportation mode,mdeveloped on the Ace platform Launch of Winger, Indias only maxi-van Fiat Group and Tata Motors announce establishment of Joint Venture in India Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level utility vehicle, the Sumo SpacioTata Motors launches Indica V2 Turbo with dual airbags and ABS Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct Injection Common Rail (DICOR) engine. Rollout of the one millionth passenger car off the Indica platform. 2008 Latest common rail diesel offering- the Indica V2 DICOR, launched. Indigo CS (Compact Sedan), worlds first sub four-metre sedan, launched. Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV with the comforts of a family car. Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo. Xenon, 1-tonne pick-up truck, launched in Thailand. Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover. Tata Motors completes acquisition of Jaguar Land Rover. Tata Motors introduces new Super Milo range of buses. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III Commonwealth Youth Games Pune 2008. Indica Vista the second generation Indica, is launched.

Tata Motors launches passenger cars and the new pick-up in D.R. Congo.

2009 Tata Nano is launched.

Products of TATA Motors

[1] Passenger cars and utility vehicles

Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover

[2] Concept vehicles

2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica

2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima

[3] Commercial vehicles

Tata Ace Tata TL/ Telcoline /207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

MARKETING STRATEGIES

LAUNCH OF TATA NaNo

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it The Peoples Car. Its a sweet looking small car, just enough to take four people around the city. 1 Lakh rupees roughly translate to 2500 rupees monthly instalment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked.

Following TATA Nano car specs in comparison with Maruti 800: Overall Length of Nano is 3100 MM which is 7% shorter than Maruti 800 Overall Breadth of Nano is 1500MM which is 4% Wider than Maruti 800 Overall Height of Nano is 1600MM which is 14% Taller than Maruti 800 Overall inside Space of Nano is 21% Bigger than Maruti 800

Engine Capacity 623CC 2 Cylinders, Maruthi 800s got 3 Cylinders Power 33BHP, less than Maruthi 800 Top Speed: 120 Kmph Top Speed Lower Than Maruti 800 Fuel efficiency is 20 Kmpl just as Maruti 800

TATA Nano will hit the roads and as it is a definite threat to Maruti 800. TATA stated that the initial production of this car will be of 250,000 a year. After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now. The introduction of the Nano received media attention due to its targeted low price. The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to massmanufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide. Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year), and have also criticised the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasolinemodel. The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal government. The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the highway and around 22.00km/l in the city. It was first presented at the 9th annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch on March 23, 2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car begin in July 2009, with a starting price of Rs 115,000 (rupees). This is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 184,641Rupees.

2. Modification in TATA Sumo

TATA Sumo
The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of changes in terms of refinement in this decade. It has been the favorite choice for cab owners, as it is rugged and affordable. The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a carryover of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa variants: CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX 10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a 2- litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel engine that

generates 89 bhp. The Victa DI variants get a 3-litre turbocharged diesel engine. Refinement, both internal and external, is evident across the variants. Tata's latest three variants under the 'Sumo Grande' category are LX, EX and GX available in 2-seater, 7- seater and 8-seater configurations. Sumo Grande boasts of a powerful 2.2-L Direct Injection Common Rail (DICOR) engine

SUMO SPACIO
A no-frills version called the Tata Spacio is also available. It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407. The prominent visual difference was the presence of round headlamps instead of the rectangular lamps. A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets. After the facelift, the Spacio inherited the styling elements of the older Tata Sumo. In 2007, the Victa became available with the Spacio's 3000 cc engine. And in terms of styling, the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle. This model comes in 8 and 10 seater variants and is very much popular with private transporters & contract taxi vendors because of its lower cost.

SUMO VICTA
The new Sumo Victa released in 2004 featured power windows, power steering, dual AC, central locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti glare ORVMS with electronic control, remote keyless entry, tachometers, LCD monitors, voice warnings, multiple trip odometers are all either standard or available options.

New TATA Sumo (SUMO GRANDE)

Tata launched the Sumo Grande on January 10, 2008 powered with a new generation 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most up market version of the Sumo available and features completely different body work. It lies below the Tata Safari in Tata's product portfolio.

Tata launched the Sumo Grande on January 10, 2008 powered with a new generation 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most up market version of the Sumo available and features completely different body work. It lies below the Tata Safari in Tata's product portfolio.

3.New Version of Indigo, Indigo Dicor

Dicor Variants
The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The beefy & bony structured

sedan has the capacity to deliver maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver & co passengers oriented positive attributes such as: Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3: with headrest mounted LCD screens 1.4-litre as rail diesel engine Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window, black dials with chrome rings & star check as the new pattern for its console & AC fascia.

Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz silver as the new pattern for console & AC fascia. It has no mounted LCD screens.

4.

TAPPING OF RURAL MARKETS

According to the National Council for Applied Economic Research, or NCAER, rural India accounts for 70% of Indias population, 56% of the national income, 64% of the total expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets pale before the huge potential they offer a company. Of the total sales (of consumer goods), around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will be about two-thirds of the rural economy by 2012-13. Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of which runs on cash. Tata motors ltd. is working on strategies to make inroads into these markets.

SWOT Analysis Tata Motors Limited

SWOT Strengths, Weaknesses, Opportunities, Threat Strengths

The internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get thefinal product 'right first time.' The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.

Weakness
The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover.

Oppurtunities
In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford

Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo fuel efficient buses are powered by superefficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

Threat
Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Punebased plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become

a target for other global competitors including Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

Research Methodlogy

Project involved
Market performance Cost saving initiatives

Introduction about TATA Motors Procedure followed by TATA Motors for catering to the needs and queries of the customers

 Quantitative research Awareness regarding the facilities provided by TATA Motors.

Overall opinion about TATA Motors.

Scope of Study
To find the Market position. For Economic and the industry environment. This study would be useful for companies to know what people perceive and thinking about Tata Motors and its products. This study would be useful to other students as a secondary data.

This study would be useful to form strategies. Research Methodology:

The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data.

Objective of the Study:

To know the consumer satisfaction. Market performance. Market position. Cost saving initiatives. To find out the satisfaction level of people.

To find out the awareness level of customer. To find the satisfaction amongst the customers of TATA Motors.

Sources of Data Collection:

Primary:
For my survey primary data have been used as a questionnaire to collect the data.

SECONDARY:
The secondary data has been collected from the following modes: Magazines Books Newspaper Data through internet sources

RESEARCH DESIGN:
Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data.

RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.

Sampling Plan:
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.

STEPS IN SAMPLING PLAN :

Sampling Frame:
The list of sampling units from which sample is taken is called sampling frame. Thane City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result.

SAMPLING SIZE:
Total sample size is 100. The following sample size according to area wise is as follows: 20 Thane Station 10 Teen Haat naaka 20 Mulund Check naka 20 Goadbunder 10 Kisan nagar 10 Lokyamanya nagar 10 Waghle Industrial Estate

SAMPLING PROCEDURE:
The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and cooperative. It was a randomly area sampling method that attempts to obtain the sample of convenient.

Analysis:
The important factors and datas collected were sequentially analyzed and graphed.

Limitation of the study:

This study will be limited to only some areas of Thane city of Maharashtra It is only for short period of time. Lack of professional approach since researcher is a student The sample size is only 100 so the sample may not be truly representative of the Thane population.

FIELD WORK: FIELD WORK:

I have collected the data through medium called questionnaire collecting the responses from 100 people in all. I had done my field work in the following area. Thane station, Teen hath Naka, Mulund Check naka, Waghle Industrial Estate, Kisan nagar, Lokmanya Nagar and Goadbunder road

I started my project very first educating the respondents about my entire project, and ask them to cooperate with me. Mostly all the respondent were aware of this type of surveys. So I didnt face any type of difficulty during my project in the process of explaining and taking there responses on the questionnaire.

Comparison of THE STANDING

TATA MOTORS visvis THE INDUSTRY

CHALLENGES
Mahindra and Mahindra: JV with ITEC, North American leader in
heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA (parentNavistar International), to manufacture commercial vehicles and to bolster its position in the CV business. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport, cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09.

Force Motors Ltd: JV with MAN for manufacturing high-tonnage

vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007.

Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok

Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct access to an entire range of Avia trucks, Avias press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates.

Suzuki: Suzuki through its subsidiary, Maruti Suzuki in the Indian market
may also be alarming. Maruti has aggressively launched family cars to undermine the Tata models.

INDIAN AUTOMOTIVE PLAYERS: OVERVIEW OF THE PLAYERS IN THE INDIAN INDUSTRY

The Indian auto industry is highly competitive with a number of global and Indian auto companies present. Hence, we have conducted an Inter company analysis of Tata with Mahindra and Mahindra and Maruti Udyog, to get an idea of the companys position (operation and profitability) vis a vis its competitors.

Inter Company analysis

Key Players in the Indian auto industry Passenger Cars And CVs

The largest Player in the Indian industry. Plans to launch new and exciting productsin the Indian markets, including the 100,000 cars.

TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010.

The third largest passenger car manufacture in India and one of the largest exporters of vehicles. Has establishes India as one of its manufacturing bases in the world, is planning to invest heavily to boost exports from India.

Maruti Suzukis JV in India and the largest passenger car manufacturer in India.

One of the leading players in the Indian premium cars segment

One of the largest players in the UV/ MUV segment

One of the leading players in the Indian premium cars segment. Plans to enter the small car segment by re-launching the matiz.

The 2nd largest CV manufacturer in India. Other global players who are in India have plans for India includes VOLVO, DAIMLER CHRYSLER, BMW and NISSAN MOTORS

THREATS WITHIN THE INDUSTRY

There are a lot of new competitions coming up in the commercial vehicles segment which threaten the huge market share which Tata Motors has garnered. Some of the new Joint Ventures and competitions have been listed below:

M&M has formed a 51:49 JV called Mahindra International with ITEC, USA, (parent NAVISTAR), to manufacture commercial vehicles. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines.

Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles. Further, the two companies have formed another JV to manufacture buses in India from end-2007.

Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia. Volvo, a leading manufacturer of trucks, buses, cars, construction equipment, and aero engines has a main focus in the area of fully built buses. In India, it has focused on providing economical transport solutions in consonance with its values of safety, quality, and environmental care. Its trucks are reputed for their performance and economy and are the flag bearers in their production activities in India.

THREATS OUTSIDE THE INDUSTRY

Farmers are agitating against the land acquired by the firm in Singur for its ambitious Rs 1, 00,000 car project. The protest is being lead by Mamta Banerjee of the Trinamool Congress. Farmers are protesting that the land is fertile land and the government acquired the land without their consent. Presently this matter is lying in the court of law and is still a contentious issue.

An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. The policies adopted by Government will increase competition in domestic market, motivate many foreign CV manufactures to set up shops in India.

Increased interest rates have a potential to hit the sales. Auto loans have become costly causing customers to defer their purchase which has impacted the sales of Tata Motors.

The strengthening of the rupee against the dollar has made their cars less attractive in the foreign market.

PEST Analysis of Tata motors

Political Assessment:

I-

The auto policy of Government which has direct implications on Tata Motors-

A brief overview-

Auto policy of Government of India envisions to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010. GOI policy has rightly recognized the need for modernizing of vehicles.

The Auto Policy has spelt out the direction of growth for the auto sector in India and addresses most concerns of the automobile sector, including

Promotion of R&D in the automotive sector to ensure continuous technology upgradation, building better designing capacities to remain competitive. Impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to facilitate their acceptance. Emphasis on low emission fuel auto technologies and availability of appropriate auto fuels and encouragement to construction of safer bus/truck bodies - subjecting unorganized sector also to 16% excise duty on body building activity.

The Foreign Direct Investment policy of India has undergone significant liberalization. A new auto policy has been announced which provides automatic approval for foreign equity investment up to 100% for manufacture of automobiles and components.

Effects of government policies on Tata motors In the past effect of Government Policy on TATA Motors CV Division Commercial Vehicles segment sector has been at the forefront of the strong showing by the automotive industry over the past few years. Following factors have led to growth in sales:

The cut in excise duty that enabled manufacturers like TATA Motors to reduce prices The attractive financing offers and freebies enabled by low interest rate policies by Government The need to transport higher volumes of industrial goods Uttarakhand plant enjoys an exemption of excise duty (otherwise 16%) for initial 10 years Singur plant enjoys exemption from income tax for initial 5 years

II-

LABOUR REFORMS

Labour reform is a very sensitive subject in the Indian context, given the ground realities of poverty, illiteracy, diseases, deprivation, exploitation, low per-capita income, etc. This means that whatever is taken up in the name of labour reforms, be it in the sphere of employment, welfare or human resources, needs careful handling.

Tata motors view on labour reforms

The Tatas were the pioneers in introducing a number of firsts in the field of labour welfare. The group felt that unless a workers welfare needs were met, there would be no profits for industry and no progress for the nation. Well ahead of any Indian legislation on this front, several benefits the eighthour working day, free medical aid, provident fund, gratuity, leave with pay,

maternity leave, accident compensation, etc were incorporated by the Tatas into their workplace culture.

Consideration-

The Tatas are now considering labour reforms very carefully, with a view to ease the social burden of their employees and at the same time preserve the equilibrium of job security. It is worth noting that labour reforms in India are discussed mostly in the context of organized labour, and this constitutes merely 8 per cent of the countrys total labour force. It shows that a majority of the labour force exists as unorganized.

Economic Assessment:

Favorable factors:

1. High domestic demand: There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. The Indian vehicle market expanded by 23.7% in the financial year ending in March 2007, according to data released by the Society of Automobile Manufacturers 2. High economic growth: Indian economy has expanded by more than 9% during the financial year ending in March 2007. This results in prosperity and creates demand for Tata Motors products 3. Reduction in taxes: The cut in tariff on petroleum and diesel from 8 per cent to 6 per cent will make commercial vehicles more economical

4. Tapping new markets: Tata is developing a car that aims to sell in 2008-09 for about $3,000 USD will result in huge demand and increased profitability of the company 5. Labour cost advantage: Cost advantage as labor cost is 8-9 per cent of sales as against 30-35 per cent of sales in developed economies. This results in lower production cost and higher margins for Tata motors products 6. Increase in disposable income: According World Development Indicators database, India's purchasing power parity per capita income was $3,100 in 2004.These leads to increase in disposable income and consumption.

Concerns:
1. Rupee appreciation against the dollar: The strengthening of the rupee against the dollar has made Tata motors less attractive to export. India witnessed appreciation in its currency of 8.35% against the dollar between January and June 2007. 2. Increasing auto loan interest rates: Increased interest rates have a potential to hit the sales. Auto loans have become costly causing customers to defer their purchase which has impacted the sales of Tata Motors. Interest rates on car loans have witnessed a surge of at least 3.0 percent points from December 2005 to June 2007 3. Spiraling inflation: Rising materials and labour cost due to inflation increases manufacturing cost. Therefore profitability reduces. According Reserve Bank of India, Inflation on a year-on-year basis, is 5.9% at endMarch 2007 4. Globalization : Competition in foreign markets by M & M and Ashok Leyland Competition in Indian market by Hyundai and Volvo

Social Assessment:

Favorable factors:

1) Employment Generation:

It employs a total of approximately 22349 people

according to March 31st 2007. Its the largest automobile company in India.

2) Attitude to Work: The employees at People committed to the five integral values that are the keystones of Tata Motors policies a) Integrity b) Excellence c) Understanding d) Unity e) Responsibility. This results in greater productivity and more revenue for the company.

3) Environmental Responsibility: Tata Motors has led the Indian automobile industry's anti-pollution efforts through a series of initiatives in effluent and emission control. The company introduced emission control engines in its vehicles in India before the norm was made statutory. All its products meet required emission standards in the relevant geographies. Modern effluent treatment facilities, soil and water conservation programs and tree plantation drives at its plant locations contribute to the protection of the environment and the creation of green belts.

4) Social Image: Tata Motors has bagged a number of awards in certain categories which show that the societys image of it is very favorable.

a) Tata Motors has been chosen as India's Most Trusted Brand in cars in a Readers Digest-AC Nielsen consumer survey in 2006.

b) Tata Motors' mini-truck, Ace, which has created an all-new category in the commercial vehicles market, received the BBC-Top Gear' Design of the Year 2006. The company's Starbus low-floor city bus and the Novus heavy truck were adjudged second and third respectively.

c) For the second consecutive year, Tata Motors was rated by Auto Monitor as the 'Commercial Vehicle Manufacturer of the Year' for 2006.

d) The Commercial Vehicle Business Unit won the CII-Exim Bank Award for 2005 for Business Excellence, for being a role model of excellence in management. The award particularly recognises excellence in the management of quality as a fundamental process.

e) The two divisions of the company also won the Tata Group's JRD QV Awards for Business Excellence in 2005.

f) The Jamshedpur plant and the car plant at Pune received the Union Ministry of Power's National Energy Conservation Award, which recognise significant initiatives to reduce energy intensity and improve energy efficiency. The Jamshedpur plant won the award for the fourth year in a row. The Commercial Vehicle Business Unit and the Passenger Car Business Unit also received the CII's National Award for excellence in energy management. The Foundry Division at the Pune plant received the Gargi Huttenes Albertus Green Foundry of the Year Award

Concerns:
1. Farmers are agitating against the land acquired by the firm in Singur for its ambitious Rs. 100000 car project. The protest is being lead by Mamta Banerjee, the Trinamool Congress. Farmers are protesting that the land is fertile land and the government acquired the land without their consent. This has led to wide unrest among the people and has adversely affected the brand image
2. Unfavourable press and media opinion on the forceful acquisition of land in Singur. Though the media continues to talk about the mergers and acquisitions of the group positively, the Singur project continues to be the canker in the heart

Technological Assessment:

Opportunities:

1) One lakh car: - Tata Motors' new small car project to make India's first car to be priced at around Rs. 1 lakh was launched in early 2008. The company was keen to explore the possibility of making cars from engineered plastics made by General Electric. It is part of our Endeavour to make a car that is cheap to operate and maintain. The addressable market for such a car will be around one million vehicles annually at a mature stage which would really propel Tata motors to the league of the top automobile companies in India.

2) Impact of technology transfer: -

a) Alliance with Fiat: Tata motors have aligned with fiat to develop the one lakh car. The alignment will include Fiat introducing its other successful vehicles in the Indian market like Alfa Romeo, Maserati and Ferrari. The strategic alliance would explore opportunities for mutual benefit, including possible sourcing of technologies, power trains and major aggregates from Fiat, sharing of common vehicle platforms between the two companies and even possible joint development of models which could be batched and sold by both companies in different geographies. b) Alliance with Cummins Inc: Cummins Inc. and Tata Motors has a new agreement that will allow their joint venture, Tata Cummins Ltd. (TCL), to begin manufacturing the ISB engine. The expansion will increase the number of engines produced by the joint venture from approximately 69,000 to 120,000 units beyond that time. The engines produced by TCL will meet Euro 2, Euro 3 and Euro 4 Indian and European standards for diesel emissions. c) Alliance with MDI of France: India's largest automaker, Tata Motors, announced that it will partner up with MDI of France, a technology invention company, to develop engines powered by compressed air. This agreement envisages Tata's supporting further development and refinement of the technology, and its application and licensing for India.

3) Research and development: Tata Motors has a long history of investment in R&D. it has a passenger car business unit and Engineering Research Centre (ERC). It has lead to a very large number of business successes. Most of these innovations have been, over the years, incorporated into automobiles, ensuring driver and passenger safety. The facilities in the ERC have been repeatedly identified as benchmarks for the Indian industry. Today ERC takes pride in having in its service more than 900 scientists and engineers, besides a host of unique facilities, including the only crash test facility and 'hemi-anechoic noise and vibration test chamber. Some of the other technologies that are part of Tata Motors arsenal are those that offer improved electronic controls for engine systems, aimed at improving emission standards, and other vehicle drive-train and chassis systems,

besides fuel efficiency. Many of the obstacles the company faced two decades ago in acquiring technology have been substantially reduced through tier-1 suppliers and through access to specialist consultants.

4) Impact of technology training: The growth of Tata Motors and the quality of its products are anchored securely in the skills that have been built in its employees. The training schools run by Tata Motors are acknowledged as being the best training establishments in the engineering industry in India. By giving the highest priority to training, the Company has created an invaluable source of skilled craftsmen, who are periodically retrained, so that their skills are never obsolete. Tata Motors has a pool of highly qualified engineers, whose innovativeness gives the Company its distinct competitive edge

5) Impact of emerging technologies: Tata Motors has established its own technical engineering centre in Europe. Tata Motors is also investigating hydrogen, ethanol, bio-diesel and other alternative fuels. Alternate fuels would be the way to go in the future because of the exhaustible nature of oil. Tata motors can take a very good lead in this field with the research it is doing. The question is whether Tata Motors should invest in fuel cells, which are probably 20 years away from production or invest in direct hydrogen combustion. 10 to 20 per cent hydrogenenriched gasoline can give significant benefits too in the longer run.

6) Impact of technology helping in the manufacturing: Through technology the manufacturing has been made simpler and cheaper. Nowadays a single platform is used to manufacture different types of vehicles. The robust 207 platform serves as the basis for a number of vehicles like the Tata mobile, the Sierra, the Estate, the Sumo, the Safari and the 207 DI. The platform (X1), is used for the Indigo and the Indica.

Shortcomings of technology:-

1) Substitutions of cars: Because of technology a lot of new options and different types of car have been introduced. The relatively new idea of a luxury car, a family car, an economy car has well established itself in the bymind of the Indian consumer. The differentiation on the basis of styling and features is also integral part of the new age buyer. The process of substitution is now faster and is clearly guided by the above principles. The wide range of, cars and other vehicles make substitution a great threat. 2) Technological challenges: The Tata Motors challenge is to maintain its cost base but catch up with technology and overtake the competition given by European, American and Japanese automakers.

Maruti Suzuki
Introduction:
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.

PEST analysis of Maruti Suzuki

Political Assessment:
The auto policy of Government which has direct implications on Tata Motors

Labour reforms

Economic Assessment:
High domestic demand High economic growth Reduction in taxes Tapping new markets Labour cost advantage Increase in disposable income

Social Assessment:
Employment Generation Attitude to Work Environmental Responsibility Social Image

Technological Assessment:

Threat from One lakh car Impact of technology transfer: Alliances and joint ventures Research and development

Marketing Strategy analysis for Maruti Suzuki

Strengths (Internal Environment)

Maruti Suzuki Ltd. (MUL)

MARUTI is in a leadership position in the market. Major strength of MARUTI is having largest network of dealers and after sales service caters in the country. Complementary product range in small car segment o o o o o Maruti 800 Omni Alto Zen Wagon R

Good promotional strategy is adopted by MARUTI to transform concepts to products Baleno: Missed the flight catch Baleno The most comfortable Car even in long drives Esteem: My Daddys Big Car Affordable mid size car Alto: Lets Go The fuel efficient and affordable car After Sales Service Kya yanha Maruti Service Station hai. Availability of service stations even in the remotest place in the country. Refurbished Cars: MARUTI has also entered into second hand car market with a brand name Maruti True Value. Loyal Customer Base is another big strength of MARUTI. In JD Power survey, MARUTI has been awarded consequently 5th year for best customer satisfaction.

Strong Brand Value Availability of raw material

Weakness (Internal Environment)

Lack of having products in mid size car segment could result in shifting of loyal customers who has a desire to upgrade their cars. Low interior quality in cars. Labour Laws and Labour Unions are not conducive to growth Government intervention due to having share in MARUTI.

Opportunity (External Environment)

MARUTI may encash the opportunity to enter again into the diesel segment of the cars to compete its nearest competitor TATA in diesel segment of small cars. Though MARUTI launched Zen in diesel version but it was not successful.

MARUTI has launched its LPG version of Wagon R and it was a good move simultaneously MARUTI can start R&D on substitute of the fuel. electric cars for a much better

Economic growth of the country is sound and promising in future. Liberal policies of GOI. Big Market: Domestic and Abroad

Threat (External Environment)

Tata Motorss Nano with a price tag of Rs. 1 Lac and that could give a big impact on sales of MARUTI TATA MOTORS is a challenger and trying hard to achieve number one position in the market. China may give a good competition as they are also planning to enter into car segment.

Marketing Strategy analysis for Tata motors

Strengths (Internal Environment)

In few years of operation, Tata Motors has secured a challenger position in the car segment being second largest car manufacturer of India. Product line in all sizes of cars. Presence in diesel segment of cars. Option available to customer to upgrade their cars being with the company. Good Promotional strategy Strong Brand Value. Availability of raw material

Weakness (Internal Environment)

Less number of dealers and service stations Not able to transfer its car specialty as Maruti is doing rather more relied on its brand name. Though endorsing celebrities was successful initially but at the same time company needs to transfer the thoughts by telling better qualities of the car to its customer as MUL is doing

No celebrity endorsing the brand

Opportunity (External Environment)

Tata Motors may also enter into the diesel segment for Nano. The company lauched its mid size cars in diesel segment with CRDI engines and it was very successful. Tata Motors has a faster and better go-to-market strategy than its competitor Maruti.

R&D on fuel substitution has become must to sustain longer in future.

Economic growth of the country is sound and promising in future. Liberal policies of GOI. Big Market: Domestic and Abroad

Threat (External Environment)

Tata Motors is planning to launch a car with a price tag of Rs. 1 Lac and that could give a big impact on sales of other products of Tata Motors. It could also lead to price wars with its competitors

Maruti is very fast in reaction to developments made by Tata Motors to retain its leadership position. China may give a good competition as they are also planning to enter into car segment.

Customer Satisfaction Survey of

TATA Motors

ROLE OF THE SALES PERSON

He should be neatly dressed He should have knowledge about various products Features Variants Colors Prices Sales promotion campaigns Competitor products, their features, prices, etc. Latest service and warranty policies Current availability Carry copy of ready reckoner

CUSTOMER CARE TEAM:

Role of the Customer Care Manager: Customer Care Manager is the leader of the customer care team. He is accountable for the sales satisfaction index of the dealership. The customer care manager ensures that every customer is properly followed up and feedback is recorded. Also the customer complaints are recorded and resolved as soon as possible to the level of satisfaction. The customer care executives report to the customer care manager. Customer Care Executive: Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at the showroom Post sales follow up. PSFs are done in order to get the first hand feedback from the customer about the experience that they had during the sales and delivery process. The first PSF is done within the 72 hours of delivery and the voice or exact wordings of the customer are recorded. The next PSF call is

made after 15 days after the vehicle is delivered. The feedback form system is a very important tool to obtain customers feedback on the experience that the customer had during the purchase of his/her car.

Steps to be followed after receiving customer complaint:

Firstly customer acre manager gives a control number to all complaints received and records the same in the customer complaints control register. Then customer acre manager gets in touch with the customer over the phone and expresses regret on the inconvenience faced by the customer Immediate action is taken to ensure that the customer complaint is resolved and writes a letter of apology The customer care manager along with the concerned DSE, then visits the customer, hands over the letter and takes satisfaction note from the customer Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd. And also files a copy of the same in the customer complaints register/file. Then the CCM discusses the customer complaints in the weekly meeting with the general manager on SSI with the entire showroom staff. Necessary counter measures are taken to ensure that such complaints are not repeated in future. All sales staff and managers review customer care activities on daily, weekly and monthly basis. The SSI review meet is conducted regularly.

QUESTIONNAIRE ANALYSIS

1. How long have you been associated with Tata Motors No. of Years From 1 year From 1 3 years From 3 5 years From 5 7years Above 7 years No. of Respondent 19 21 24 16 20 Percentage 19% 21% 24% 16% 20%

No of Respondent
Above 7 years From 5 7 years From 3 5 years From 1 3 years From 1 year 0 5 10 15 20 25 No of Respondent

Interpretation Out of 100 respondent 64% of respondent are associated with the Tata motors from last 5 years. It means that sales of Tata motors grows from last 5 years. Rest 36 % of total respondent enjoying Tata motors from more than 5 years

2. (1)

Knowledgeable Salesperson Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 3 9 11 28 49

Percentage

No. of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 50 No. of Respondent

Interpretation Out of total respondent 77% strongly agree that the sales person was knowledgble and provide complete information regarding product, specification, performance etc

2.(2) Employees spent enough time with you: before sales- During sales -After sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 19 16 6 24 35

No of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 No of Respondent

Interpretation Out of total respondent 59 % agree that employee spend enough time before sales, During sales and after sales . it means that How employee are serious in handling the customer.

2.(3) Comfortless and ambience of a car Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 6 3 11 38 42 Percentage

No of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 50 No of Respondent

Interpretation Out of total respondent 80% of the customer are quite satisfied with the comfortless and ambience of the car.

2.(4) Availability of the product and model Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 6 11 15 42 26

Percentage

No of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 50 No of Respondent

Interpretation Out of total respondent 68% customer agree that the product and model are available before purchasing the car. 17% of respondent were disagree that the model and product were available , they have to wait few weeks for the car they wish to purchase.

2.(5) Variety/selection of merchandise Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 6 9 11 55 19 Percentage

No of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 20 40 60 No of Respondent

Interpretation Out of total respondent 74 % of customer were agree that company offer variety and diff different model with lots of specification.

2.(6) Comfortable in parking Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 7 9 16 42 26 Percentage

No of respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 50 No of respondent

Interpretation Out of total respondent 68 % agree that their car is more comfortable in parking.

2.(7) Prices are affordable Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 11 17 13 31 28 Percentage

No of respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 No of respondent

Interpretation Out of total respondent 59% of customer feel that price were affordable, they dont have any problem in paying the money for the car. 28% were not satisfied with the price, they feel that price were not affordable

2.(8) Attractive discounts offered Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 21 26 13 21 19 Percentage

No of respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 No of respondent

Interpretation
Out of total respondent 47 % customer respond that company had not offered any attractive discount on the purchase. 40% agree that company had offered them attractive offer while purchasing.

2.(9)
Satisfied by performance and maintenance Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage

13 11 14 32 30

No of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 No of Respondent

Interpretation
Out of total respondent 62 % of customer were satisfied with the performance and maintainance of the car. Rest 24 % were Dis satisfied by the performance and maintianance of their car.

2.(10)
Fuel efficient car Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage

13 16 10 23 38

No of Respondent
Strongly Agree Agree Neither Disagree Nor Agree Disagree Strongly Disagree 0 10 20 30 40 No of Respondent

Interpretation Out of total respondent 61% of customer were satisfied with the fuel efficiency of their car. 29 % were not satisfied with the fuel efficiency of their car

2.(11)
Post sales follow ups are done regularly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage

27 31 7 16 19

No of respondent
35 30 25 20 15 10 5 0 Strongly Disagree Neither Disagree Disagree Nor Agree Agree Strongly Agree

No of respondent

Interpreation
Out of total respondent 58% of the customer were dis satisfied by the follw up done after sales. According to them there were no follow up after their purchase. 35% of customer agree that the follow was done regularly even after sales.

2.(12)
Respond to complaint quickly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage

21 17 9 31 22

No of respondent
35 30 25 20 15 10 5 0 Strongly Disagree Neither Disagree Disagree Nor Agree Agree Strongly Agree

No of respondent

Interpretation
Out of total respondent 53 % of customer were agree that their complaint were addressed very quickly 38 % were disagree and dissatisfied with the service as their complaint were not address quickly and responded

2.(13)
All the commitments are fulfilled Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage

29 25 9 17 20

No of respondent
30 25 20 15 10 5 0 Strongly Disagree Neither Disagree Disagree Nor Agree Agree Strongly Agree No of respondent

Interpretation
Out of total respondent 54 % of the customer told that all the commitment made by company were not fulfilled, as they had not obey their promise 37 % of customer were agree and satisfied with the promise and commitment made by company which were fulfilled

2.(14)
Value for Money Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage

13 11 15 28 33

No of respondent
35 30 25 20 15 10 5 0 Strongly Disagree Neither Disagree Disagree Nor Agree Agree Strongly Agree

No of respondent

Interpretation
Out of total respondent 61% of the customer feel that their car is Value for the money, as they are fully satisfied with the price which they had payed for the car 24 % of the customer didnt feel Value for Money

3. Are you aware of the following facilities provided by TATA? 3.(1)

TATA insurance No. of Respondents Percentage

Yes No

79 21

3.(2)
Extended warranty No. of Respondents Percentage

Yes No 3.(3)
True Value

89 11

No. of Respondents

Percentage

Yes No 3.(4)
TATA Finance

65 35

No. of Respondents

Percentage

Yes No 3.(5)
Genuine accessories

93 7

No. of Respondents

Percentage

Yes No Interpretation

83 17

On average nearly 81 % of the customer were quiet aware about the various facilities and offering which were offered to them at the time of purchase and after purchase And on average nearly 19 % of the customer were not aware as nobody had make them aware about various facilities and offering by Tata Motors

4. What is your overall opinion about TATA?

No. of Respondents Percentage

Choice
Very bad Bad Neither bad nor good Good Very good

9 11 13 36 31

No of respondent
40 35 30 25 20 15 10 5 0 Very bad Bad Neither bad nor good Good Very good

No of respondent

Interpretation
Out of total respondent 67% of customer had rated well for their car as they are very much satisfied by the performance and specification. 20% of the customer were dissatisfied and rated bad , as their expectation with their car not meet.

5. How likely would you recommend TATA? Recommend Very Unlikely Unlikely Neither Unlikely nor likely Likely Very Likely No. of Respondents Percentage

9 12 8 35 36

No of Respondent
40 35 30 25 20 15 10 5 0 Very Unlikely Neither Unlikely Unlikely nor likely Likely Very Likely

No of Respondent

Interpretation
Out of total respondent 71 % of customer were like to recommended the Tata Motors to other as they were very much satisfied with the car 21 % of customer will never like to recommended Tata Motors to other because of dissatisfaction with their car , as the expectation was not meet

Questionnaire
Being an esteem customer of TATA Motors Ltd. you are requested to take out a few minutes and fill the following QUESTIONNAIRE:
Name: _______________________________________________________ Address_______________________________________________________ ______________________________________________________________ Pin Code____________ Gender: Male Female Age: Below18
18-25 26-35 36-50 51 and above

Occupation:_______________Service / Business / Student / Housewife

Q.1) How long have you been associated with TATA Motors?
___________________________________________________________________

Q.2.) How would you rate TATA Motors on the following parameter?

S.n o

Parameter

Strongly disagree

Disagree

Neither agree Nor disagree

agree

Strongly agree

1.) 2)

3.) 4) 5) 6) 7) 8) 9)

Knowledgeable sales person Employees spent enough time with you: before sales During sales After sales Comfortless and ambience of a car Availability of the product and model Variety/selection of merchandise Comfortable in parking Prices are affordable Attractive discounts offered Satisfied by performance and

10) 11)

12) 13) 14)

maintenance Fuel efficient car Post sales follow ups are done regularly Responds to complaints quickly All the commitments are fulfilled Value for money

Q.3) Are you aware of the following facilities provided by Tata Motors?
FACILITIES Yes No s/no 1) 2) 3) 4) 5) Facilities Tata Motors insurance Extended warranty True Value Tata finance Genuine accessories Yes No

Q.4) What is your overall opinion about Tata Motors?

Very Bad 1 Bad 2 Neither Bad nor Good 3 Good 4 Very Good 5

Q.5) How likely would you recommend Tata Motors?

VeryUnlikely 1 2 3 4 Very Likely 5

Date

Sign.

Finding