“A promise is promise and I kept my promise”- this is the historical statement which Mr. RATAN TATA said when he launched his ambitious TATA NANO; the people’s car in India on 23 rd march 2009. Tata has always given value products in the Indian Car Market whether it is path breaking recently launched TATA NANO or TATA INDICA (which created great brand into the car industry in the diesel segment). Not only is the passenger car, even into the heavy vehicle segment TATA is the only sole leader in India. TATA has created its brand value not only in India but even outside India it has created its brand by acquiring Jaguar-Land Rover, Corus Steel during 2007-08. TATA has been named among top 10 brand companies by Fortune Magazine in the year 2008. It has got into top 100 companies in the survey of Standard & Poor Mody’s research in the year 2008. Being into most valued brand in world the consumer satisfaction to its customers is very important for TATAS and thus they are continuously working into this area where their objective is to provide best products with full value of the money of their customers. The TATA INDICA VISTA has been one of those products you just cannot ignore. While it got media coverage around the world, the reactions, though mixed, flowed easily. On the one hand there has been pride in the “World’s mid size small car” tag, as a great achievement for Indian industry. The “World’s mid size small Car” tag has been well received with the hope that a whole new category of people can look to buy a car now.


a) Historical Background
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.

• • • •

The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. 2

• • • • • • • • •

Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.


b) Current Scenario
The growth of the Indian middle class along with the growth of the economy over the past few years has attracted global auto majors to the Indian market. Moreover, India provides trained manpower at competitive costs making India a favoured global manufacturing hub. The attractiveness of the Indian markets on one hand and the stagnation of the auto sector in markets such as Europe, US and Japan on the other have resulted in shifting of new capacities and flow of capital to the Indian automobile industry. According to the International Yearbook of Industrial Statistics 2008 released by United Nations Industrial Development Organisation (UNIDO), India ranks 12th in the list of the world’s top 15 automakers.

Indian OEMs Come of Age

Indian original equipment manufacturers (OEMs) are making their mark today with Tata and Mahindra & Mahindra as leading Indian OEMs emerging on the global scene. With increasing competition from the global players, Indian OEMs have upgraded their technology and are manufacturing superior-designed vehicles.

'Frugal Engineering' has become the hallmark of the Indian automotive industry, with Indian OEMs leveraging the Indian lead in cost-effectiveness and a highly-skilled human resource pool to bring down the product development cost. Additionally, competencies of their suppliers have also helped to lessen costs and manufacturing time. In fact, global OEMs are now looking at benefiting from the India advantage by using India-based design and development centres. Tata Ace, Indica and Nano, and Mahindra's Scorpio are examples of products developed by Indian OEMs after painstaking market research about the specific needs of the Indian consumer.



Although the sector was hit by economic slowdown, overall production (passenger vehicles, commercial vehicles, two wheelers and three wheelers) increased from 10.85 million vehicles in 2007-08 to 11.17 million vehicles in 2008-09. Passenger vehicles increased marginally from 1.77 million to 1.83 million while two-wheelers increased from 8.02 million to 8.41 million.

In recent times, India has emerged as one of the favourite investment destinations for automotive manufacturers.

Volvo Buses India is eyeing 35 per cent growth in domestic sales this year at 550-600 units as against around 440 units sold in 2008.

Toyota Kirloskar Motor Pvt Ltd (TKML), the Indian subsidiary of Japan’s Toyota Motor Corp, is increasing its investment by US$ 164.8 million at its manufacturing site near Bangalore, to touch US$ 824.32 million by 2016.

French carmaker, Renault, has completely recast its plans for India as part of a new, aggressive approach that will see it producing cars in its Chennai plant by 2011.

Hyundai has made India its global hub for manufacturing small cars. It will invest US$ 1 billion in its second plant in Chennai by 2013. In addition, it is also investing US$ 40 million in its research and development (R&D) facility in Hyderabad.

• •

General Motors has so far invested about US$ 1 billion into its Indian operations. Mercedes-Benz will invest about US$ 64. 21 million in its plant at Chakan near Pune.

Domestic Market

Sales of cars and commercial vehicles have been impacted due to global economic slowdown. However, in spite of that there has been a marginal increase in the number of vehicles sold in 20085

the domestic two-wheeler sales will grow at a CAGR of 8. General Motors India and Honda Siel Cars India. two-wheelers and three-wheelers) in the overseas markets increased to 1. The vision of the AMP is "to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion accounting for more than 10 per cent of the GDP and providing 6 . Policy In order to make India a power to reckon with in the automotive sector the government launched the Automotive Mission Plan (AMP) 2006-2016. While domestic market is expected to contribute 2. Total number of vehicles sold including passenger vehicles. Honda Siel Cars India (HSCI). said that its sales will register double digit growth in the current financial year.53 million units in 2008-09 from 1.75 million units by 2014 as against 1. According to an Ernst & Young analysis. as per estimates by CARE Research.89 million units at the end of 2008-09. automobile sales (including passenger vehicles. Exports According to the Society of Indian Automobile Manufacturers (SIAM).65 million in 2007-08. Fiat India Automobiles. two-wheelers and three-wheelers in 2008-09 was 9. The growth in export was led by Hyundai Motor India. up from 55. Mahindra Renault.250 cars sold in 2008-09.09 as compared to 2007-08.739 units in 2008-09.75 million units to the total tally. the Indian subsidiary of the Japanese giant Honda Motor Co.3 million units vis-a-vis 7.401 in 2007-08 to 335.23 million units in 2007-08. commercial vehicles. Export of passenger vehicles increased from 218. followed by others such as MSIL. commercial vehicles.000-65. The company expects its total sales to be around 60. Likewise. the remaining 1 million units would contribute towards exports.43 million units in 2008-09. passenger vehicle sales in the country will grow at a CAGR of 12 per cent to touch 3.000 units during the current year.8 per cent by 2014 at 11.72 million as compared to 9.

which is cited as one reason for the robust export numbers."The main concerns are availability of finance. including Maruti's A-Star and Hyundai's i20. It is expected that in real terms.174 units as against 819. hold back from financing vehicle purchases.539 cars from 211. targeted at the European market. Export growth was also robust in the two-wheeler category. with the global economy slowing. according to figures released by the the Society of Indian Automobile Manufacturers. India would continue to enjoy its eminent position of being the largest tractor and three-wheeler manufacturers in the world and the world's second largest twowheeler manufacturer.50 per cent rise at 1004. by 2016. India-based car makers shipped a record number of vehicles. Maruti and Hyundai launched new models in the past year. demand from Europe may not hold up. c)Industry Analysis Even as recession-hit international automobile majors are struggling to maintain sustainable sales figures. The country's largest exporter.9 per cent in the previous year (2007-08).440 units in the year-ago period. Meanwhile. worried about bad loans. also helped by making Indian cars cheaper abroad. compared with 144. Exports grew to 331.345 units. Domestic market leader Maruti Suzuki was a distant second. Further. which registered 22." As per the AMP. Hyundai managed an export growth rate of 63 per sent at 235. registering 32. The weakness of the rupee. it is estimated that the total turnover of the automotive industry in India would be in the order of US$ 122 billion-159 billion in 2016. the automotive sector would double its contribution to the country's GDP from current levels of five per cent to 10 per cent. Led by Hyundai Motor India Ltd and Maruti Suzuki India Ltd. mainly to Europe.112 a year earlier. Exports had grown by a comparatively meagre 8. India will emerge as the world's seventh largest car producer (as compared to the eleventh largest currently) and retain the fourth largest position in world truck manufacturing sector.additional employment to 25 million people by 2016. which fell more than 20 per cent against the dollar in the just-ended fiscal year. By 2016. which includes 7 .58 per cent growth in overseas sales at 68.834 exports from India surged by a remarkable 57 per cent year-on-year in the recently-ended.713 units in the previous financial year.However. analysts said. lending rates in India are at nearly five-year highs as banks.

10 percent. sales of utility vehicles actually declined 7. commercial vehicle sales fell a substantial 26.17 percent.2 per cent to 5.494.15 percent over the same period last year. while passenger carriers grew a solid 14. However. In March this year.21 million cars from 1. while scooters gained 9. with medium and heavy CVs dropping 43. Also.14 million. coupled with weak consumer sentiment. with truck and bus sales dropping a massive 21.122 vehicles from 490.57 percent and light buses dropped 6. three-wheeler sales actually grew by 11. passenger vehicle sales dropped 1. and high interest rates.69 percent during 2008-09 over the same period last year.2 million in the previous year. Two-wheeler sales also came under intense pressure in the last financial year due to the sudden slowdown in lending to this segment by big private finance companies. Domestic sales of trucks and buses fell 22 per cent to 384. In March 2009. Domestic car sales in the year ended 31 March grew by a mere 1.16 percent.36 percent during 2008-09. while the decline was less severe for light commercial vehicles. During the month of March itself. Motorcycle sales grew 1. medium and heavy buses grew by a marginal 0. recording a mere 0.52 percent due to the slowdown in economic activity. The segment that was hardest hit by the slowdown was commercial vehicles. 8 . Passenger vehicle sales remained practically flat.13 percent growth over the previous year.liquidity. which dropped 7. Industry executives and analysts expect measures taken by government authorities to spur lending while the introduction of new models could slightly boost domestic vehicle sales this year.22 percent compared to March 2008. has seen the segment report a meagre 2.13 percent during the previous fiscal year.1 per cent at 1. This. Goods carriers declined a massive 37.40 percent and LCVs falling just 0.31 percent and 5. Medium and heavy commercial vehicles declined by an even larger 33.72 percent.83 million.69 percent respectively during 2008-09. Three-wheeler sales fell by 4.94 percent. Local car sales had climbed 12 per cent in the previous fiscal year. passenger cars and multi-purpose vehicles grew by just 1.40 percent over the same month last year. Within this segment.60 percent growth during 2008-09.3 per cent from a year earlier to 1.

its domestic sales for March 2009 were 52. two-wheeler sales grew at a sluggish 3. its highest ever monthly sales figures.16 percent. I am especially pleased that our new Mahindra Xylo has changed the rules of the game with impressive sales figures. while three-wheeler exports grew 4. This compares with the 23.61 percent. its March 2009 domestic sales were 13 percent lower than those of March 2008. The company believes that the financial stimulus packages announced by the government. selling a record 55. which stood at 19.While mopeds and scooters grew by 4. have had a positive impact.124 units finding buyers in the Indian market. showing an increase of 23. Mahindra & Mahindra. For the entire financial year ended March 2009. indicating that a sustained recovery is still sometime away.686 units while total sales (including exports) were 54.390 units sold in the previous fiscal. vice-chairman and managing director. exports of trucks and buses declined by 27. The newly launched Xylo multi-purpose vehicle also sold strongly with 3. Meanwhile.366 units for the same period last year. This includes the highest ever monthly sales for the Scorpio. According to Tata Motors.48 percent. it feels that the demand for trucks at the retail level would still take some time to reach levels from the last fiscal. The export of passenger vehicles and two-wheelers grew 53. According to Anand Mahindra. During March 2009. which are 14 percent lower than the 582. Electric two-wheelers grew by 49.128 units sold in March 2008.11 percent respectively.973 units for March 2009 as against 15.581. with all segments recording increases. As a result.67 percent during this period.65 percent over the same month last year.748 units in March 2009 in the domestic market. However. Bolero and the Pik-Up models.50 percent respectively. “This is a clear validation of the faith reposed in our products by customers. Mahindra said it sold 25. motorcycle sales were particularly badly hit.924 9 . except for commercial vehicles which were affected due to the global economic slowdown.85 percent. However. albeit from a relatively smaller base. growing just 1.73 percent and 22.22 percent and 9. particularly for commercial vehicles.485 vehicles. a solid 30 percent increase in sales for the company’s utility vehicles.” The Bolero model has also done very well for the company. Export of automobiles during 2008-09 grew strongly. total sales were 498.

2009 against 17. According to Arvind Saxena.units in 2008-09.” Maruti also claimed a sales record in March 2009 with its Alto model reporting its highest ever monthly sales of 23.754 units compared to 29. 2008.600 units of March. whereas March 2009 sales over February 2009 have grown by 16. driven by demand from rural and semi-urban markets. Other positives for the sector are the upcoming vehicle repossession guidelines from the Reserve Bank of India and falling interest rates. while the exports totaled 21. If we look at the February and March 2009 sales combined and compare them to 2008 for the same period. Total March 2009 sales were 46. SIAM has projected that Indian passenger car sales during 2009-10 would grow around five percent. then we have registered a growth of 4.Marketing and Sales.001 units in March 2008.040 units during March 2009. senior vice.579 units sold in February 2009. the industry is far from seeing a turnaround at this moment. Commercial vehicle sales are estimated to rise by as much as seven to 10 percent during the current fiscal. Honda Jazz and VW Polo. be driven by the availability of several new small cars including the Tata Nano.7 percent.president . while two-wheelers are expected to grow by five percent in 2009-10. which sold 6.6 percent. According to Mahindra. Honda has also reported strong numbers.8 percent decline in cumulative sales during March 2009. The Indian market accounted for 24.406 units in March. given the difficult market conditions prevailing at the current time.160 units against 47.368 units being sold in March 2009 against 5.569 units. thanks to higher exports of i10 and i20 models to Europe. Hyundai Motor India registered a 1. While its domestic sales dropped 15. 10 .98 percent over the corresponding period last year. Growth in demand for passenger vehicles would. Total sales for the Japanese carmaker during the month grew 32 percent with 7. “As we have stated earlier. according to SIAM. exports grew by 21.8 percent. Maruti Ritz. This is a particularly remarkable feat.401 units for the same month last year. thanks to the growth in credit availability. this makes the Bolero the first brand in the SUV/ UV/ MPV segments to cross 50. a jump of 20. thanks to the overwhelming popularity of its New City.5 percent.000 units for two consecutive years.

Some carmakers.Sales of commercial vehicles will start picking up this year. however. 11 . due to the extension of the 50 percent depreciation benefit given to truck owners from March '09 to June '09. The growth in light commercial vehicles like the Tata Ace is also expected to continue. Increased infrastructure spending by the government should also give a boost to vehicle demand in 2009-10. disagree with these projections saying that they are overly optimistic.

industrial shunter. a new paint shop as well as augmentation of engine and gearbox manufacturing facilities.2. The company acquired a BIFR company. a high output foundry line. was changed to Tata Engineering & Locomotive Company Ltd. heavy forgings and machine tools. In the year 1987 the company undertook to set up a new forge shop. excavators. The company also used to manufacture pulp and paper making machinery. dumpers. The last quarter saw the company launching two new passenger vehicles. In 1960 the company's name. all at Jamshedpur In 1991 During the year the company entered into a collaborative agreement with an internationally renowned engine research and development organisation to jointly develop higher horsepower. fuel efficient diesel and petrol engines to meet the future requirements of the company. which was Tata Locomotive & Engineering Company Ltd. the SIERRA and the ESTATE totally designed and manufactured in India. The commercial diesel vehicles which were known `Tata Mercedes Benz' (TMB) are now called `Tata' vehicles after the expiry of the collaboration agreement with Daimler-Benz AG. M/s Noduron Founders 12 . West Germany. COMPANY STUDY a) HISTORY OF TATA MOTORS 1)(Company’s profile) The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use.

ACC along with Tata Exports Ltd. Mercedes-Benz (India) Ltd. Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications. are the joint Ventures of the Company Taking advantage of the broad banding policy announced by the Government of India. Tata Cummins Ltd. for the manufacture of their `ACCORD' model of cars in India. Japan.Maharashtra Ltd.. The joint venture named as Floathlass India Ltd. Ltd. Germany to setup a joint venture company Mercedez-Benz India to manufacture `E' class paneyer cans and engines in India. Tata Precision Industires. an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG. On 22nd April. the Company entered into a collaboration agreement with Honda Motor Co. Two new models in the EX series of hydraulic excavators were launched.18 crores as against setting up of similar critical castings foundry. company undertook to set up a joint venture with Asian Glass Co... Japan to manufacture float glass to be used as wind shields for automobiles. the Company would have a stake of 16.33%. Tata Holset Ltd. Singapore and Nita Company Ltd.. The total cost for Telco worked out to Rs. During the year company launched a new earth moving equipment TWK-3036 Tata Front End Wheel Loader. designed and developed in-house was also introducedDuring the year company entered into an agreement with Nachi-Fujikoshi Corporation... participated in the joint venture.. A 10 tonne pick and carry articulated crane. Ltd.. During the year. During the year 1995 a new double pick-up and Army Version of various Telco 13 .

The Company introduced a 9-tonne vehicle which was well received in the market. (TELCO) has emerged as numero uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank. A 25 tonne 6 X 2 truck and a bus with cummins engine were launched. new sports utility vehicle Safari expected to be launched shortly. 1996. TELCO is believed to have picked up the unit for Rs. the Tata Engineering and Locomotive Company Ltd. In 1997. Tata Engineering and Locomotive Company (TELCO). The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators. 70 crore. The Company has launched "TATA SAFARI" in its Multi utility vehicle segment. A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced.Vehicles were developed. has acquired a second hand paint shop. Nissan. The Company developed a low floor bus chassis to meet the specific needs of urban transport. During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times. A new petro engine and turbo diesel engine. Tata Holset's turbo charger plant inaugurated on November 25. The total cost of import duty would be Rs 100 crore. an up-graded 709 LCV. machine line and cylinders from the Australian unit of the Japanese auto giant.Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for 14 . The year 1998.

To make substantial improvement in the quality of bus bodies available with TATA vehicles. the Company won the National award for R&D Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research. The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms. was appointed as dealer for the Company's passenger cars in several cities across the country. Ministry of Science and Technology for the year 1999. It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery. Concorde Motors Ltd. The Company in its small car segment has launched "Tata Indica" which evoked an overwhelming response in the Indian market. conforming to the most exacting international standards. Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company. a year before they are due to be introduced in the country. In Oct 1999. a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd. SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model 15 . the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa. A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses.. Telco Construction Equipment Company Ltd.its small car "Indica" to be launched in December. in Feb 1998. The new project undertakes production of bodies on TATA chassis.

Launches two new motorsport cars (The Zero and Double Zero Pace cars). the Euro II Complaint.Tata Indica.34% Launches six new products in light. powered by a multi-point fuel injection engine. Displays its Tata Sedan car at the Geneva Motor Show . Indica adjudged top selling B-segment car in 2002. High 16 . In the same year FICCI-SEDF. In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 13. The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car.Businessworld-Compaq award for social responsiveness was awarded to the company. 2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica. The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati. It replaced its three-shift production line with a one-shift daily schedule starting from 26th June. The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment. Announces financial restructuring . medium and heavy vehicles segments on Jan 15 during Auto Expo . TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range. 75 BHP multi-point fuel injection (MPFI) version of Indica. is renamed as Tata Engineering Ltd. Tata Engineering & Locomotive Co. The Company launched the Indica 2000.

Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV).Collaborates with Nippon-Arcelor for technical knowhow on CR steel.e.Tata Steel's investment in Tata Engineering has been hiked to Rs 117.Court Approves Tata Engineering's Financial Restructuring. in a bid to shore up sales of the small car. 2004. Indica sales cross two-lakh mark . The year 2003. 2004:. Auto Expo: Tata unveils new version of Indica. BPCL tie up to market co-branded lubricants.98 crore over the last year. Tata Motors introduces new 'Indicab' for tour operators. It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV).35 lakh. Tata Motors unveils Indica V2.Unveils 'EX' series of medium and heavy commercial vehicles. Korea for the acquisition of this company. Tata Engg. Receives Teri's (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for '01-02. The much hyped Rs one lakh passenger car project of Tata Motors was 17 . The Company changed from 'TELCO ' to 'TATAMOTORS' w. Unleashes Safari's petrol version. Tata Motors launches new Indica V2 in Kerala. Tata Motors launch an upgraded version Indica on January 15. priced at Rs 9.f December 24. 2003. Telco names Sedan as Tata Indigo. In the same year Tata Safari ranks No 1 in MUV/SUV segment.Tata Unveils CityRover .The year of glory.

Acquires Daewoo Commercial Vehicle Company Ltd (DWCV). Tata Motors unveils Tata Safari DICOR in Kerala market on August 11. Tata Motors unveils Tata SFC 407 EX. Tata Motors ropes in CVTech to make parts for its small car.going ahead as planned. trucks and buses for the South African market. Tata Sumo.31 lakh for DLX. Tata Motors rolls out 2 luxury variants of Indigo. 2005. the country's largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu. Korea. French companies. Tata Daewoo inks pact with Pakistan co. Tata Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors enters agreement with Ukraine bus building firm. Tata mototrs rolls out Tata SFC 407EX BS II turbo light commercial vehicle. Tata Motors enters into agreement with Etalon. Tata Motors launches most anticipated new 6-tn truck in India.10 lakh for DLG variant and Rs 4. Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 4. Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of 18 . In a move to consolidate its presence in the light commercial vehicles segment. Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX. Tata Motors inks agreement with Austrian. Tata Motors has launched a face lifted version of its multiutility vehicle. Tata Motors. Tata Motors and Tata Africa unveiled a range of passenger cars. utility vehicles. pick-ups.

2)Current Scenario PERFORMANCE OF COMPANY DURING 2008-09 Company Performance in Domestic CV Segment Q4 FY08. from 62.Q4 FY07.0)% (18.488 195.704 108.575 08 43.0)% FY08-09 FY07-08 change 86.3)% Total CVs 49.4)% (40. P M Telang as Executive Director (Commercial Vehicles).Directors in 2007.8% in Q4FY2007-08. 19 .0% for the quarter.192 112.971 31.9)% 5. CNG-propelled buses.440 102. Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC. Africa. Tata Motors buys Nissan facility in S.686 82.546 Impacted by severe liquidity crunch and slowing economy CV domestic sales volumes decreased by 40% y-o-y to 49.5% (9.313 (22. CV market share increased by 420 basis point at 67. Tata Motors Ltd has appointed Mr.Change 09 M/HCVs LCVs 17.568 units in Q4FY2007-08.546 units in Q4FY2008-09 as compared to 82.873 215.568 (59.882 38.

5% in Q4FY200708 to 86. on the other hand LCV bus market saw growth of 44. Tata Motors’ market share increased substantially from 68.8% during the quarter (OctDec’08) compared to the corresponding period in the previous year.3% y-o-y during the quarter and LCV’s declined by 24.6% in Q4 FY2007-08 to 69. The industry volumes in the MHCV truck segment declined by 65.7% y-o-y during Q4FY2008-09. However TML’s market share in the MHCV truck market increased from 65. MHCV market recorded a decline of 61. TML performance in MHCV bus market saw a decline of 19.9% during Q4FY2008-09. In a challenging environment of non-availability of vehicle financing. During an extremely challenging quarter Tata Motors has improved its market share position across every CV category on the back of its product network strength as well as the financing support of TMF and Tata Capital. however.9% in Q3FY09 compared to corresponding period last year driven by the success of ACE Magic and Winger. while industry volumes in the LCV truck segment declined by 31. TML’s volume in MHCV truck market declined by 62. Truck market recorded a decline in sales in Q4FY2008-09 over corresponding period of last year. high interest rates and.0% in Q3FY09.9% Q4 FY2008-09. 20 .3% in Q4FY2008-09 in LCV passenger carrier segment.2% yo-y.CV industry registered a substantial volume decline of 43.3%. lower industrial growth and contraction of freight traffic.

187 11.6% Q4 FY2007-08 13.339 153.3% 81.2% 45.475 -10.5% -14.765 Q4 FY200708 31. primarily due to.404 142.1% 25.5% during Q4FY2008-09.1% 69.9% FY2008-09 11.507 30.643 5.6% 12.7% Change FY200809 FY200708 change Passenger Vehicle Market Shares (India) Q4 FY2008-09 Small Car Entry-level Mid-size Car UV Total PV 15.8% 34.6% 29.4% y-o-y.5% -7.3% 13.9% in Q4FY2008-09.8%.9% 74.284 -45.110 20.8% 13. down by 14.2% 18.011 Fiat vehicles) during Q4FY2008-09.6% 29.9% 12.3% FY2007-08 15. Market share of Tata Motors vehicles stood at 12.269 626 49.746 -20.453 100.821 3. The passenger vehicle industry registered a volume decline of 16.273 9.967 2. RBI’s easy monetary policy and the diesel price reduction are expected to moderately help demand generation Passenger Vehicle Segment Q4 FY200809 Small Car Entry Mid-size Car UV Fiat Total PV 6138 1.829 36.011 42.Government’s fiscal stimulus package.059 -25.2% 30.4% Domestic passenger vehicle sales stood at 42.2% 18. unavailability of finance.9% 17. Impacted by the ad-hoc duty imposed on this segment in July.187 (including 1. In this 21 .4% 27.5% 61. Utility vehicle segment declined the most by 35. and high interest rates and high fuel prices.2% 13.

In the Utility Vehicle segment.4% in H1 FY2008-09 to 12.8% in Q4FY2008-09 due to competitive pressures.2% in Q4FY2008-09 In the Small car segment. In Passenger vehicle industry. The entry-mid size car segment continued to clock a healthy growth. Tata Motors market share declined from 18. 2008.404 a growth of about 45. 22 . Tata Motors’ (including FIAT) market share increased from 12. To mark this milestone.2% for the nine month period AprDec’08. Tata Motors celebrated the 10th anniversary of the launch of the Indica on December 30.5%. a 10th Anniversary Limited Edition Indica Vista was launched.6% in Q3. following the successful launch of Indica Vista in August FY2008-09 and increasing sales of FIAT vehicles.6% in Q4FY2007-08 to 15. TML growth in this segment was limited by the ramp up capability of production. Fiat volumes for FY2008-09 were 3. Combined Tata-Fiat market share in the overall PV industry stood at 13. However. Tata Motors’ (including FIAT) market share improved from 11.9% in Q4 FY2007-08 to 13.scenario the Company tried to arrest the decline through new products and increased support of the captive financing entity. TML maintained its strong market position due to continued positive response to Indigo CS and TATA INDICA VISTA.

pick-up. The Five Forces: 1. which determine the competitive intensity and therefore attractiveness of a market. power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product.Porter's five forces analysis is a framework for the industry analysis and business strategy .The bargaining power of customers-Another important aspect for a car or 23 . 4.The threat of t5he entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth.The threat of substitute products-As we know the Indian customers choices range from mileage.It uses concepts developed in Industrial Organization economics to derive five forces. 3. 2.The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect.

supply is very much required in the industry for a company.The distribution channel is very important in country like India where the demand is highly different with all across its dimension so. company where they have to manage the pricing control of their product to spurt the sales in the market. 24 .The bargaining power of suppliers.

exceeding a period of nine years. Independent directors. 25 . in the aggregate. the Company does not reimburse expenses incurred by the Non-Executive Chairman for maintenance of a separate Chairman’s office. Mr Setna and Mr S A Naik. Being the Group Chairman. No specific tenure has been specified for the Independent Directors.4) Organization Structure The Board: No separate office is maintained for the Non-Executive Chairman. have tenures.

actual or suspected fraud or violation of the Company’s Code of Conduct or ethics policy. Shareholder Rights: A half yearly declaration of financial performance.nic Audit Qualifications: During the year under review. The Whistle Blower Policy is an extension of the Tata Code of Conduct. Training of Board Members: The Directors interact with the management in a very free and open manner on information that may be required by them on orientation and factory visits. which requires every employee to promptly report to the Management any actual or possible violation of the Code or an event he becomes aware of that could affect the business or reputation of the Company. The Company continues to adopt best practices to ensure a regime of unqualified financial statements.sebiedifar. framed a Whistle-Blower Policy and the same was reviewed and amended by the Audit Committee on January 19. besides being available on the SEBI’s website www. 2004.Remuneration Committee: Details are given under the heading ‘Remuneration Committee’. 26 . at its Meeting held on August 9. including summary of significant events in the last six months.2009. The Policy provides a formal mechanism for all employees of the Company to approach the Management of the Company (Audit Committee in case where the concern involves the Senior Management) and make protective disclosures to the Management about unethical behaviour. The independent Directors are encouraged to attend training programmes that may be of relevance and interest to the Directors in discharging their responsibilities to the Company’s stakeholders under the emerging business environment. The Financial Results are also put up on the Company’s website. there was no audit qualification in the Company’s financial statements. is sent to all the shareholders. Whistle Blower Mechanism: The Audit Committee had. Mechanism for evaluation of non-executive Board members: The performance evaluation of non-executive members is done by the Board annually based on criteria of attendance and contributions at Board/ Committee Meetings as also role played/ contributions other than at Meetings.

full. fair. D. They are expected to act with that amount of utmost care and prudence. or at any other place where they act as representatives of the Company. The highest level of confidentiality and fair dealing within and outside the Company. 27 . employees. efficient. rules and regulations. accurate. and other stakeholders and to maintain a cooperative.THE CODE OF CONDUCT FOR THE DIRECTORS IN TATA MOTORS The Company expects all Directors to exercise good judgment. To address misuse or misapplication of the Company's assets and resources. timely and meaningful disclosures in the periodic reports required to be filed by the Company with government and regulatory agencies. Compliance with applicable laws. The Directors while discharging duties of their office must act honestly and with due diligence. at Company-sponsored business and social events. safety and welfare of customers. at offsite locations where the business is being conducted whether in India or abroad. harmonious and productive work environment and business organization. including proper and ethical procedures in dealing with actual or apparent conflicts of interest between personal and professional relationships. B. positive. These standards need to be applied while working in the premises of the Company. adherence to the highest standards of honest and ethical conduct. to ensure the interests. C. E. which an ordinary person is expected to take in his/her own business. A.

Any employee/business associate who becomes aware of a suspected wrongful conduct is encouraged to send his/her observations/concrete facts to the Direct Touch Team either through phone or written communication complete with related evidence (to the extent possible) without fear of reprisal or retaliation of any kind. including but not limited to corruption. Procurement frauds d. The information on suspected wrongful conduct is such information which the Employees/business associates in good faith. Gross wastage or misappropriation of company funds/assets e. An abuse of authority k. theft. Pass back of Commissions/benefits or conflict of interest c. A substantial and specific danger to public health and safety j. coercion and willful omission b. An act of discrimination or sexual harassmen 28 . evidences: a. Mismanagement. so overall the corporate governance in TATA is in very sound position as their disclosures during annual report or quarterly report and very clear to the share-holders and investors also.CORPORATE GOVERNANCE OF TATA WITH CERTAIN RULES:In TATA the corporate governance is managed very well with certain rules which are given below and there are some people assigned to address the issue. 1. leaking confidential or proprietary information g. believe. fraud. A violation of any law or regulation. bribery. 2. Stealing cash/company assets. Unofficial use of Company’s material/human assets h. provided their codes of ethics are also very strong. Activities violating Company policies including Code of Ethics and Conduct i. Manipulation of Company data/records f.

So employee in TATA attempts to ensure that the products of their efforts will be used in socially responsible ways. may lead to harm all of its businesses/ units/ subsidiaries. will meet social needs and will avoid harmful effects to health and welfare of others. including those that accomplish assigned duties. In such an event. material and technology in ways that result in harm to our consumers. 29 . Well-intended actions. The code is intended to serve as a basis for ethical decision-making in the conduct of professional work. Contribute to society and human well-being This principle concerning the quality of life of all people affirms an obligation to protect fundamental human rights and to respect the diversity of all cultures. manufacture and promotion of TATA products.THE CODE OF ETHICS IN TATA MOTORS Commitment to ethical professional conduct is a MUST for every employee at TATA. any potential damage to the local or global environment. Therefore. property damage or unwanted health and environmental impacts. and make others aware of. This principle prohibits use of men. In addition to a safe social environment. employees and the general public. human well-being includes a safe natural environment. Avoid harm to others "Harm" means injury or negative consequences. such as loss of property. development. all who are accountable for the design. must be alert to. the responsible person or persons are obligated to undo or mitigate the negative consequences as much as possible.

Be honest and trustworthy: Honesty is an essential component of trust. in the same way we ourselves would expect them to treat us. and the principles of equal justice govern this imperative. or other such factors is an explicit violation of this code. which cannot be put in writing. sex. So they are expected not to make deliberately false or deceptive claims about their products/ systems. religion. national origin. age. all should treat them with respect and in good faith. Practice integrity in our inter-personal relationships In their relationships with colleagues. Without trust an organization cannot function effectively. The ethical concern is to respect all obligations of confidentiality to all stakeholders unless discharged from such obligations by requirements of the law or other principles of this code. We accept personal responsibility and accountability to meet business needs. Discrimination on the basis of not to say anything behind one’s back and never utter something. SPECIFIC PROFESSTIONAL RESPONSIBILITY Ownership This is our company. tolerance. respect for others. but instead provide full disclosure of all pertinent limitations and problems Be fair and take action not to discriminate The values of equality. Honor confidentiality The principle of honesty extends to issues of confidentiality of information. disability. The principle to be adopted to guard against loose talk or in its worst form. Passion for winning 30 .character assassination.

490.49 2.98 882.34 58.913.063.44 2.46 Mar ' 06 289.11 -256. including recognizing risks.62 19.68 1.We all are leaders in our area of responsibility with a deep commitment to deliver results.946. with business partners and with each C) Latest Auditors Report Annualresultsindetails Mar ' 09 Mar ' 07 Other income Stock adjustment Raw material Power and fuel Employee expenses Excise Admin and selling expenses Research and development expenses Expenses capitalised Other expenses 925.867.00 1.929.143.270.91 1.48 8.20 31 16. We add value through result driven training and we encourage & reward excellence.09 -144.367.45 3.39 .039.027. We are determined to be the best at doing what matters most. Teamwork We work together on the principle of mutual trust and transparency in a boundary less organization.218. Consumer focus We have superior understanding of consumer needs and develop products to fulfill them better.02 6. People development People are our most important asset.93 14.83 4. Innovation Continuous innovation in products and processes is the basis of our success. We are intellectually honest in advocating proposals.49 245.263.13 3.374.34 3.21 Mar ' 05 Mar ' 04 166.90 141.92 2.04 1. Integrity We are committed to the achievement of business success with integrity.30 2.97 238.551.86 11.401.39 -916. We are honest with consumers.19 -349.349.341.

21 -855.61 7.585.06 -1.26 524.33 178.27 1.805.028.528.34 -52.70 6.236.46 303.12 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 34.91 35.40 66.58 144.63 71.29 659.98 66.50 33.18 67.85 361.67 -1.76 61.26 -65.15 2.26 2.38 34.06 2.118.11 5.48 37.386.132.19 48.73 .17 6.50 52.21 Cashflow Profit before tax Net cashflow-operating activity Netcash used in fin.86 356.58 806.92 1.of non-prom.00 810.25 5.077.644.001.07 15.10 -291.91 61.22 15.15 475.44 10.95 1.94 55.65 382.79 2447.04 Net cash used in investing activity -10.27 10.65 67.00 56.721.93 35.65 10.18 49.00 78.36 1.35 3.77 586.Provisions made Depreciation Taxation Net profit / loss Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg.02 8.913.57 6.76 7.50 55.001.57 51.54 12.99 382.92 1.63 7.94 524.75 45.67 -5.10 39.87 2539.119.61 Net operating income per share (Rs) 499.196.49 12.72 1.104.46 1.50 2.39 1.31 826.13 -221.79 771. activity Net inc/dec in cash and equivlnt Cash and equivalnt end of year Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 1.23 17.295.44 32 143.61 Book value (incl rev res) per share (Rs.174.82 Mar ' 09 Pershareratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) 2.76 Cash and equivalnt begin of year 2.50 1.16 414.913.391.95 -13.88 5.83 2352.210.46 -1.03 1.95 1.00 67.94 19. shares (Lacs) Agg.35 385.00 691.35 10.005.82 -956.05 2031.13 9.49 12.88 1.81 11.96 520.29 450.77 1.95 1.60 482.10 -1.43 2.50 1.) 2.86 -2.47 13.08 48.60 10.of non promotoHolding (%) OPM (%) GPM (%) NPM (%) Mar ' 09 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 ----874.84 55.15 113.57 940.24 43.65 11.236.29 113.41 2142.26 514.52 42.77 746.528.244.12 177.141.

35 9.64 3.60 62.87 4.76 14.18 35.68 8.13 21.82 72.62 0.16 123.55 24.49 5.98 41.49 73.02 9.09 8.09 9.63 0.67 1.62 9.44 1.77 27.39 58.60 74.70 7.51 24.02 60.43 2. in raw mat.05 3.06 34.98 22.21 28.73 58.49 81.24 0.59 0.34 93.18 3.68 29.53 65.55 0.08 7.43 10.80 55.58 63.89 0.26 6.85 9.30 33 .01 7.23 2.53 8. st loans) Quick ratio Inventory turnover ratio Payoutratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio Coverageratios Adjusted cash flow time total debt Financial charges coverage ratio Fin.12 30.85 0.13 72.Free reserves per share (Rs) Profitabilityratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverageratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidityratios Current ratio Current ratio (inc.45 8.41 24.91 13.24 8.84 0.99 0.54 7.29 32.84 3.22 2.70 7.50 8.38 157.47 0.06 1.94 62.18 10.77 9.24 1.06 48. consumed Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 217.08 0.18 25.65 7.44 1.62 4.82 1.ratio (post tax) Componentratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp.00 10.77 6.31 70.97 7.26 4.70 2.07 0.13 26.81 28.13 3.19 6.48 8.94 8.69 0.43 0.00 31.26 1.31 0.72 0.19 3.89 10.90 71.67 28.98 0.52 17.32 37.18 70.09 7.85 6.50 6.30 3.16 59.78 11.66 14.41 0.65 11.96 12.88 72.34 26.73 2.58 13.64 0.49 1.94 30.88 0.96 8.55 4.64 71.71 3.62 6. charges cov.77182.88 4.49 0.

4%. This exacerbated the lack of liquidity and unavailability of consumer finance. a 10th Anniversary Limited Edition Indica Vista 34 . the automotive sector in India suffered severe contraction in demand. Tata Motors celebrated the 10th anniversary of the launch of the Indica on December 30. led to a massive drop in the M&HCV segment demand. This. While the passenger vehicle industry declined by 16. The rate of decline was arrested due to encouraging response to new products introduced – Indigo CS and Indica Vista. especially in prime markets which witnessed adverse impact on automotive demand.9%% during FY09. The export volumes of the Company registered a decline of 44.THE FINANCIAL ANANALYSIS OF TATA MOTORS In the October-December quarter of the Financial Year 2008-09. arising from major financial and other market upheavals. To mark this milestone. High interest rates and peak commodity prices also affected the industry and the supply chain. 2008. The overall CV industry declined by 43. due to global economic slowdown and credit crunch. TML’s Passenger vehicle business declined by a lower 14. Consequently Tata Motors gained substantial market share both in MHCV and LCV segments.5% affected by high interest rate and restricted credit availability. along with contraction in freight movement in many segments of the industry. Going ahead ramping up of the capacity of Indica Vista would help the company to arrest decline in small car market share.9% while TML’s Commercial vehicle business declined by 40.0% supported by a diversified product portfolio.

was launched.000 Indicas had been produced and the platform has spawned off close to 1. The Indica has remained a bestseller throughout in the industry figuring in the top 3 selling list of cars for most of the years. In the first decade.2 million vehicles. close to 940. It achieved a peak sale of 144.690 in 2006-07 and the new generation Indica Vista was launched in August this year to a continuing pull even in today’s depressed market conditions. 35 .

Strong Presence in the Marketplace:-Tata Motors is the only company in India with a broadbased presence across the industry. it is this technology capability which has.Today it just has to 36 . besides several other specialist external agencies. it launched the now famous Tata Indica.This strength has been accentuated. amidst Japanese competition. In the 1990s.of the passenger vehicles market. testing and validation facilities.Tata Motors understands customer needs and develops products that meet their needs. midsize car and utility vehicle segments .The company no longer needs to develop every necessity itself. light commercial vehicles. in all segments of the commercial vehicles market – heavy and medium commercial vehicles.3) SWOT ANALYSIS STRENGTH: 1.TDCV and Hispano Carrocera in the R&D network. over the decades. 2. as early as 1980s. sub one-tonne mini-trucks . allowed Tata Motors.With 50 years’ presence in the automotive business. in which it today strongly leads. which occupies a leading position among compact cars. with the inclusion of TMETC.Skill Base Developed Over the Last 40 Years:-Tata Motors is also very well-placed on technology capability.With 1400 scientists and engineers and state-of-the-art development.Unique Understanding of Customer Need:.compact. pick-ups. the company launched Light Commercial Vehicles. to offer indigenouslydeveloped products.To consider a few examples.The company had set up its Engineering Research Centre as early as 1966. 3. anticipating the need for an affordable family car.and key segments .

Deepening its engagement with the European R&D space. 37 . with operations in automobiles and auto components and a variety of other engineering products and services. 4. The company will achieve this by developing and marketing relevant products. in the UK. drawing upon already available R&D and skills from different sources.The over 22. in September 2005. product lifecycle management and product-centric IT services to the automotive. INCAT is a supplier of engineering & design. Engineering:-The Tata group has a robust presence in engineering. It is engaged in design engineering and development of products for the automotive industry.Tata Motors R&D in Europe:.Tata Technologies Ltd. complementing and strengthening the company’s skill sets and providing European standards of delivery to the company’s passenger vehicles.Working synergistically.Materials:.Tata Motors’ linkages in Europe through Subsidiary Companies:.000 employees comprise a very broad talent base. this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost. 5. with operations in steel and composites.Tata Motors set up the Tata Motors European Technical Centre.TMETC provides the company with design engineering support and development services. which delight consumers in every market they are introduced in.With increasing international initiatives by the company.manage the process of product creation. a 100 per cent subsidiary of Tata Motors.People Strength:. 6.The company’s key strength is its people.In October 2005. with the required skills in every aspect of the industry. aerospace and durable goods industries.3 per cent stake in INCAT International Limited. a 100 per cent subsidiary. on its existing platforms and new ones. acquired a 94.The Tata group is among the global leaders in this business sector. 8. 7.

11. it has interests in fertilisers and in the pharmaceuticals business. 6. 3.Chemicals: The Tata group is one of the largest producers of soda ash in the world. 38 . Increasing Road Development. OPPURTUNITIES: 1. realty and financial and other services. 10. 5. Increasing dispensable income of rural agri sector-Some how this year the rural demand was very enthusiastic than the urban market which drive the auto industry so.9. Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand. the development of rural infrastructure and condition will create handsome demand from the rural area. as also in insurance. 2. Easier finance schemes. Energy: The Tata group is a significant player in power generation and is also involved in the oil and gas segment.The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country.Services: The Tata group has widespread interests in the hospitality business. 4. Additionally. Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon. India’s huge geographic spread-This is one aspect where the company is looking for and its diversified range of cars suits very much this area of car or say auto industry in country. Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days.

2. Indian is lacking in proper infrastructure this is slowing the pace of growth of auto industry 2. High competition from foreign players-As the giants like GM. 39 . Graduating from Two wheeler to Four wheeler-The dream of “NANO” will boost demand for four wheeler in the auto industry.The current financial situation of its recently acquired firms like “Corus” and “Land Rover-Jaguar” is very big headache for the company and it should be back to the track in the near future. 8. THREAT: 1. The small car segment is still not good for the company due to “maruti-suzuki” so. WEAKNESS: 1.and rival M &M are coming with new products to cater the TATA in the market as the rural area has given thumps up to M&M during this year. Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so. 4. this is also very good opportunity for this sector. 3. it need to tap this section also. Audi.The CV segment is becoming highly competitive by new player like Volvo. The high ratio of debt equity ratio is also weakness of the company. MERC etc are trying to capture the high segment market it is one of the very effective threat to the company. Global crisis. 3.7.this really hurts the Indian growing industry and not only the auto but tyre industry went for toss.

x x Learned how to deal with the customers. Learning different things like how to coordinate with team members and management. presentation skill and how to behave in front of corporate executives. which I learned in college with practical experience. I also came to know the real meaning of the word marketing. It helped me in improving my communication skill. Learning how to maintain balance in personal and professional life. x x I can relate the theories. 40 . x x Learning many things regarding marketing strategies. some of which are : x Real experience of the corporate world which helped me a lot in understanding how really a corporate world functions. There are both positive and negative experiences of the training.4) LEARNING EXPERIENCE The training has helped me a lot in understanding the realities of the outside world.

and the company may have to pay heavy price in maintenance of the business . To determine the requirements and needs of the potential customers. it may be the determinant of an unsuccessful product.If the critical markets are not accorded adequate attention.PROBLEM AND RESEARCH METHODOLOGY STATEMENT OF THE PROBLEM In the event of a company does not adopt a fair measure of the potential market . x To determine the acceptable price of the product.It will have a direct impact on the sales of the product. x To understand the market potentiality for VISTA. PURPOSE OF THIS RESEARCH IN TO “ STUDY OF BUYING BEHAVIOUR OF CUSTOMERS FOR TATA INDICA VISTA” OBJECTIVE: The objective is to study those factors which can accelerate the marketability of the TATA VISTA compared to its competitors.30 AREA CONSIDERED FOR THIS STUDY ARE: x Automobile history x Industry investment x Industry growth x Vehicle production x Auto export x Auto companies 41 . x STUDY POPULATION: Sample size.

LIMITATIONS OF THE STUDY x Study is restricted to Allahabad and naini industrial areas only. METHODOLOGY OF THE STUDY Method of Analysis: An analytical research was carried out to gain insight and proper understanding of the market. This was done through the questionnaire and personal interaction with the 42 . x Availability of the respondents amidst their busy schedule did not permit detailed study. Continuous and reliable information was not available. x x x The time span of the survey was short and hence only major aspects were considered. x Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate. Some of the information was confidential so much information was not revealed.

Since product is new to the Allahabad market secondary data is not advised. 43 . x Interaction with industry experts in Allahabad. This was followed by comparative study analysis. Research Instruments: The research was based on the collection of primary data. Primary Data: x Primary data was collected through a structured questionnaire. x Personal interaction with the company managers and supervisors. Several graph and tables were prepared for better analysis of the market.managers and supervisors of industries.

according to their income.5. of people 5 17 6 2 44 .Analysis of data a) Sale according to survey VISTA AQUA VISTA AURA VISTA TERRA OTHERS 9 8 6 7 30 30% 26.67% 20% 23. Salary >1lakh 1lakh-3lakh 3-lakh-5lakh < 5lakh No.33% 100% TOTAL b) Sample of 30 customers.

c) Car customers No. of people First time user More than once 13 17 45 .

Customer satisfaction Satisfied Not satisfied 11 19 No.d) customer satisfacton from tata cars. of people 46 .

of people Yes No 7 23 47 .e) Tele media creates a brand appeal. T.V. ads appeal No.

OF PEOPLE 15 5 48 . Creating brand value. Brand value Yes No NO.f) Tata Passenger Cars.

of people 4 9 15 2 49 .g) Factors affecting buying of customers Features Power steering Mileage Price Others No.

6) FINDINGS & SUGESSTIONS FINDINGS 1) TATA MOTORS. people are highly convinced that TATA MOTORS will yield them better results 4) As the sales of Maruti grows as well as Hundai’s santro is still doing well in mid size and small size segment so the INDICA VISTA may be a good options for the company in this term for sustaining sales in long run as well as in the current situations. 1) Majority of the customers see TATA MOTORS with savings. 5) Product will have a gradual progress. about fuel efficient cars by TATA MOTORS 50 . Because most industries would wait for the response about the product from other Company. 2) Most of the customers spend large sum of money 3) Out of the samples. 6) Customers were educated by me. is number three in passenger car market after maruti-suzuki & hyundai.

51 . x The distribution channel should be more efficient to cater the demand during peak seasons like during dassraa. since most of the purchase decisions are based on it. diwali etc . the sales for mid size car can be enhanced in this scenario.SUGGESTIONS Based on the findings from the analysis the following suggestions could be made: Demo of the product should be made available to Customers. The Indica has remained a bestseller throughout in the industry figuring in the top 3 selling list of cars for most of the years. x x x The city like Allahabad is mostly dominated by the working class like people employed in high court. Technical details should be made available to the customers in the most accurate numerical form. AG office( accountant general office) and government school employees who this year are getting more pay due to the recommendations made by the sixth pay commission so .

but it is not claimed that the findings and suggestions in the report are perfect.” THE CUSTOMER BEHAVIOR in purchasing INDICA VISTA. Suggestions are provided based on customer requirements and market situation. 52 . The study was conducted on 30 Customers. Based on the questionnaire.7) CONCLUSION The study was conducted to measure. A questionnaire was designed to understand the market and create awareness about TATA MOTORS. data was collected and analyzed and it was found that the customers are willing to buy the Cars. However they are also skeptic about it. An earnest attempt has been made to make the study realistic and suggestive.



Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.