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Potential Market for TATA Nano

Potential Market for TATA Nano

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Potential Market for TATA Nano

INTRODUCTION
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a strong auto finance operation, TML Financial Services Limited, supporting customers to purchase Tata Motors vehicles. 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
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Potential Market for TATA Nano

tax reliefs by the Govt. of India in recent years have 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, twowheelers and heavy vehicles. Segment : Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 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.

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Potential Market for TATA Nano

INDIAN AUTOMOBILE HISTORY:
During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. In Brief: The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernization process since the first car was shipped to India. We will start automotive history from this point of time. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessors. The 1940s saw features
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Potential Market for TATA Nano

like automatic transmission, sealed-beam headlights, and tubeless tires.

STATEMENT OF THE PROBLEM:
Potential market for TATA Nano

OBJECTIVES OF STUDY:

1. To know potential market for TATA Nano 2. To know which income level people are willing to buy TATA Nano 3. To know whether TATA Nano is suitable for the business uses
4. To know the impact of the TATA Nano in local car market

NEED FOR THE STUDY:
This survey helps the researcher to understand the potential market for Tata Nano, as well as why the consumers are ready to buy and also helps the respondents to take the correct decision, choosing the appropriate place for their valuable money. The basic need of undertaking this survey is to submit a project report to the institute as the part of the academics.

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Potential Market for TATA Nano

METHODOLOGY:
From 2 sources data can be collected

⇒ External sources.

Internal sources.

This data can be classified into

 Primary data  Secondary data

Primary data have been collected directly with the help of questioners or by survey method. The secondary data have been collected from the internet and Maxine’s. Sample Size: 100 Respondents Sample Area: Hubli (Vidyanagar) Sampling Technique: Non- probability sampling – (Judgmental)

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Potential Market for TATA Nano

ANALYSIS OF DATA (TOOLS):

The data and information obtained from the respondents are put into spss form. Then the data is been organized in such a way that they would yield specific results to the objective of the study. The data is organized in the tally marks and various charts, graphs & pie charts that will help to have overview of the fact and figures. All the work is done under the data, which is collected, form the respondents. From the process data the research loudly speaks of its findings and implications that aid in arriving at a conclusion

LIMITATIONS:

All experienced things can’t put on the paper.

• It is conducted in open market, things tend to change rapidly. • Because of the busy schedule respondents may not have answered properly which may not hold true in case they would have been given lot of time to answer. • The research was conducted in Hubli city only, so analysis and recommendations may not be applicable to other cities. • Sample size was 100; I feel this small size cannot represent the whole consumer’s opinion.
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Potential Market for TATA Nano •

The time period was between July 10th 2009 to August 18th 2009, For 30 days

OVERVIEW OF AUTOMOBILE INDUSTRY 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. Industry Overview: 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
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Potential Market for TATA Nano

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

Snippets:
• • •

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. 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.

• • • • •

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Potential Market for TATA Nano

India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment: Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 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. Miscellaneous:
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Potential Market for TATA Nano

Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by citybased Prepay Engineers Syndicate in area of more than 35 acres. This 'Auto polis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches.

INDIAN AUTOMOBILE HISTORY During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. In Brief: The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernization process since the first car was shipped to India. We will start automotive history from this point of time. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first
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Potential Market for TATA Nano

wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created.

By 2010, India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore and Ford about Rs 350 crore. Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment.

• • •

Why India The economy of India is emerging. The following table shows the ranking of India in the past four years. Rank 1 2005 China 2004 China 2003 China 2002 China
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Potential Market for TATA Nano

2 3 4 5 6 7

India Thailand Vietnam USA Russia Korea

Thailand India Vietnam USA Russia Indonesia

Thailand USA Vietnam India Indonesia Korea

Thailand USA Indonesia Vietnam India Korea

Twin Advantages:
• •

Scaling costs Optimizing resources

Note: Excellent source for IT based engineering solutions - for products & process integration. Facts & Figures The automobile industry in India is on an investment overdrive. Be it passenger car or two-wheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000 crore of investment by 2010. Over the next one year, some 20 new cars will be seen on Indian roads. Take note of this, Maruti Udyog is coming up with new Zen and the diesel version of Swift during the next few months. Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will be launching a mini and may be a compact car.

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Potential Market for TATA Nano

Most of the companies have made their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing capacity of 2.5 lakh units per annum for an investment of Rs 6,500 crore (Rs 3,200 crore for diesel engines and Rs 2,718 crore for the car plant itself). Hyundai and Tata Motors have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 crore to India. Toyota announced modest expansion plans even as Honda Seal has earmarked Rs 3,000 crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. Some new entrants will also taste the water. They are the big names in passenger cars like Citroen, Volkswagen AG, Nissan (separately, apart from its tie-up with Suzuki), Alfa Romeo, Maserati, Land Rover and Aston Martin. Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each announced well over Rs 1,000 crore of investment. Mahindra & Mahindra's joint venture with International Trucks are expected In two-wheelers segment, Chinese bike major Lifar and the iconic US brand Harley-Davidson are expected to enter India soon. Hero Honda is about to establish its fourth manufacturing plant. Bajaj Auto and TVS Motors are moving to the excise-free zones of Himachal Pradesh and Uttaranchal for putting up new capacity.

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Potential Market for TATA Nano

INDIAN AUTOMOBILE INDUSTRY GROWTH: The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent. Current Scenario:

The Indian automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8, 82,094 units against 8, 20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70, 56,317 units against 62, 09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3, 50,683 units against 3, 18,430 units in 2004-05. India, sourcing base for global auto majors.

• •

Facts & Figures: India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is
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Potential Market for TATA Nano

likely to maintain the growth momentum picked up in 2002-03. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced. Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually. In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the twowheeler makers. The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent. Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89, 10,224 units as against 78, 97,629 units in 2004-05.

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Potential Market for TATA Nano

The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8, 82,094 units against 8, 20,179 units in 200405. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1, 70,193 units against 1, 60,670 units in 2004-05 The two-wheeler segment, the market grew by 13.6 per cent with 70, 56,317 units against 62, 09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58, 15,417 units against 49, 64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9, 08,159 units against 9, 22,428 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005. Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237 units against 1, 19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862 units in 2004-05.

• • •

Market Advantage:
• • • •

Fast paced urbanization to rise from 28% to 40% by 2020. Upward migration of household income levels. Middle class expanding by 30-40 million every year. Growing working population.
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Potential Market for TATA Nano

Vehicle Production in India: India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks Indian Market Analysts are jubilant over the fact that India has the fastest growing automobile industry (passenger cars segment) in the world today. This is seen as the result of rapid increase of middle-class population The findings of International Organization of Motor Vehicle Manufacturers revealed that in India the car production had grown to 30% in 2004, thus leading the table, Brazil came a distant second with the increase of 17%. Automobile Industry is the largest industry in India with an impressive growth in the last two decades. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalization of the sector. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans. Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors. Current Scenario:

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Potential Market for TATA Nano

The growth rate of Passenger Cars in 2004 was 30% in India where as the average growth rate of top 12 Passenger Cars producing countries were just 5.1%. In Heavy Trucks it was 32% and 14.6% respectively. Component industry's growth was only 9% between 1997-2000. But between 2000-2005, it has grown to 20%. It is projected 17% between 2005-2014. Largest industry in India.

Production of 4-Wheelers Types of Vehicle Passenger Vehicles Utility Vehicles Multipurpose Vehicles Total 2002-03 557400 114470 51450 723320 2003-04 782550 146330 60670 989550 2004-05 960480 182020 67370 129870 2005-06 1045880 196380 66665 1308925

PROFILE OF THE ORGANISATION
RATAN TATA: Under him the Tata Engineering and locomotive company was incorporated in the year 1945 in Jamshedpur for the manufacture of commercial vehicles. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car
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Potential Market for TATA Nano

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. The company's 22,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics." Tata Motors helps its employees realize their potential through innovative HR practices. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. All-round potential development and performance improvement is ensured by regular in-house and external training. The company has won several awards recognizing its training programmers. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a strong auto finance
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Potential Market for TATA Nano

operation, TML Financial Services Limited, supporting customers to purchase Tata Motors vehicles. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marco polo, 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 also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata cars and Fiat power trains for the Indian and overseas markets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group

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Potential Market for TATA Nano

Automobiles' Plant at Córdoba, Argentina. The pick-up will be sold in South and Central America and select European markets. These linkages will further extend Tata Motors' international footprint, established through exports since 1961. While currently about 18% of its revenues are from international business, the company's objective is to expand its international business, both through organic and inorganic growth routes. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. The R&D establishment includes a team of 1400 scientists and engineers. The company's Engineering Research Centre was established in 1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering technologies and products. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. The ERC in Pune, among whose facilities are India's only certified crash-test facility and hemianechoic chamber for testing of noise and vibration, has received several awards from the Government of India. Some of the more prominent amongst them are the National Award for Research and Development
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Potential Market for TATA Nano

Efforts in Industry in the Mechanical Engineering Industries sector in 1999, the National Award for Successful Commercialization of Indigenous Technology by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in 2004. The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. TMETC is engaged in design engineering and development of products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain. The pace of new product development has quickened through an organization-wide structured New Product Introduction (NPI) process. The process with its formal structure for introducing new vehicles in the market brings in greater discipline in project execution. The NPI process helped Tata Motors create a new segment, in 2005, by launching the Tata Ace, India’s first indigenously developed mini-truck. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.

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Potential Market for TATA Nano

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labor and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations. With the foundation of its rich heritage Tata Motors today is etching a refulgent future. Tata Motors (Previously known as Tata Engineering and Locomotive Co) is the youngest passenger car company in the world. It was established in the year 1945. Initially, they were into the manufacturing of trains. However, Tata motor is solely responsible for showcasing India's automotive industry to the rest of the world. It did so by designing and developing its own indigenous cars and thus placing India on the world automobile map. Tata Motors much like its parent company (Tata Group) has far fetched vision and always thrives for excellence. It was established with a vision of becoming a global car manufacturer from India. And today, it has indeed achieved its feat of becoming a global player in the automobile industry. It has a wide range of automobiles varying from commercial vehicles to passenger vehicles to multi-utility vehicle etc. Tata Motors is very committed to issues like Corporate Social Responsibility, Human Rights, Labor, and Environmental Standards. They are partners to the United Nations Global Compact.
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Potential Market for TATA Nano

Tata Motors is India's largest automobile company and the sixth biggest commercial vehicle manufacturer in the world. In the year 2004, it became the first Indian Engineering Company to be listed in the New York Stock Exchange. The company had earned revenue of Rs 24,000 crores for the financial year of 2005-06. Hence, making its' presence felt on the Indian roads on a regular basis. Since, 1954 (when the first Tata vehicle was launched) till today, over 3.5 million Tata vehicles ply on the Indian roads. Today, Tata is a global player having markets in Europe, Africa, South Asia, South East Asia, Middle East and Australia. This leap in the global market started from 1961. Once, the export division was established. Tata Motors initially started by manufacturing trucks by collaborating with Daimler Benz of Germany form 1954 till 1969. At that point of time, the trucks that were manufactured were known as Tata Mercedes-Benz Trucks. However, after the collaboration period was over, the trucks were then called Tata Trucks. But it was just the starting for them. Later, in the early 90's they entered the passenger vehicle segment by launching the Tata sierra, (India's first sports vehicle) and the Tata Estate. However, the biggest achievement came later in 1998, when Tata developed the first indigenously developed small car of India called the Tata Indica. And then Tata Indigo was launched in 2002. The name "Indica" came from the words "India's Car". And very soon Tata Indica became the most popular car in this segment. Then, later in 2005 they launched India's first indigenously developed Mini- Truck called the Tata Ace.
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Potential Market for TATA Nano

Recently, in order to fulfill its global dream, Tata Motors has acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck manufacturer, in the year 2004. In 2005, they acquired 21% stake in Hispano Carrocera, a Spanish bus and coach manufacturer. They have manufacturing plants in Jamshedpur, Pune and Lucknow. They also have assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal. The success story of Tata Motors can be based on the facts that they have excellent foresight, they understand the needs and the wants of their customers very well, they have a well organized and efficient R&D department and that they have high aims and standards which are fulfilled but not at the cost of quality and efficiency. AREAS OF BUSINESS: Tata Motors' product range covers passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles for goods and passenger transport. Passenger car; The Company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. The next car to be rolled out will be the Nano, unveiled in January 2008. Utility vehicles; The company entered the mini-truck segment in 2005 with Tata Ace. The commercial vehicle range extends from the light two-tone truck to heavy
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Potential Market for TATA Nano

dumpers and multi-ax led vehicles in the above 40-tonne segment. Through the Tata Daewoo Commercial Vehicle Company it offers high horsepower vehicles of 220 HP to 400 HP for dump trucks, tractor-trailers, mixers and cargo applications. Research and development: Tata Motors has over 1400 engineers and scientists in six R&D centers in India, South Korea, Spain and the UK. The company's R&D facilities include India's only certified crash-test facility and a hemi-anechoic chamber for testing of noise and vibration. Exports: Tata Motors' vehicles are exported to Europe, Africa, the Middle East, South and South East Asia and South America. The company has joint ventures and franchisee operations in Bangladesh, Ukraine, Kenya, Russia and Senegal. Associates: Tata Motors is pursuing growth internationally through exports and acquisitions. It has a joint venture with Marco polo, the Brazil-based maker of bus and coach bodies. It has also entered into a joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. Tata Motors and Fiat Auto have entered into an agreement for a Tata license to build a commercial vehicle at Fiat's facilities in Córdoba, Argentina.

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Potential Market for TATA Nano

The company has made substantial investments in building a network of associate and subsidiary companies and joint ventures that complement and support its business activities. These include:

Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of Tata Motors in the business of heavy commercial vehicles. It is South Korea's second largest truck maker and the largest exporter of heavy trucks. Telco Construction Equipment Company makes construction

equipment and offers allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction Machinery Company, Japan.

Tata Technologies provides specialized engineering and design services, product lifecycle management and product-centric information technology services. It has two operating companies, INCAT and Tata Technologies. Tata Motors European Technical Centre is a UK-based 100 per cent subsidiary engaged in design engineering and development of products.

Corporate social responsibility: Tata Motors is a signatory to the United Nations Global Compact. It focuses on health, education, water management, environment and employment generation issues in areas where it operates. These continuing initiatives have received national recognition: Tata Motors was conferred the 'CII-ITC Sustainability Award 2006 for Significant Achievement on the Journey

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Potential Market for TATA Nano

towards Sustainable Development' and the 'Golden Peacock Award for Corporate Social 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.

Manufacturing Units:
Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenization. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.

Jamshedpur: Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab & Cowl Factories, and the Novus.
28

Potential Market for TATA Nano

Pune: The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad (130 acres). It was established in 1966 and has a Production Engineering Division, which has one of the most versatile tool making Lucknow: Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. facilities in the Indian sub-continent.

instead of purchasing a bike will you prefer to go for Nano? Frequency Cant say 4 No 15 Yes 81 Total 100 Percent 4.0 15.0 81.0 100.0 Valid Percent 4.0 15.0 81.0 100.0 Cumulative Percent 4.0 19.0 100.0

Valid

29

Potential Market for TATA Nano
10 0

8 0

6 0

Frequency

4 0

2 0

0 C n sa at y N o Ys e

in te d o p rc a in a b e w y u p fe to g fo N n ? s a f u h s g ik ill o re r o r ao

INTERPRETATION:

81% of population agrees to purchase Nano instead

of going for bike where as 15% says no and 4 % of them say cant say. So most of the population would like to go for Tata Nano

Is cost inspires you to go for the nano? Frequency not at all important 3 not important 12 average 7 important 24 highly important 54 Total 100 Percent 3.0 12.0 7.0 24.0 54.0 100.0 Valid Percent 3.0 12.0 7.0 24.0 54.0 100.0 Cumulative Percent 3.0 15.0 22.0 46.0 100.0

Valid

30

Potential Market for TATA Nano

Is c s in p s y u to g fo th n n ? o t s ire o o r e ao
6 0 5 0 4 0

Frequency

3 0 2 0 1 0 0 n t a a im o n o t ll p rta t n t im o n o p rta t a ra e ve g im o n p rta t h h im o n ig ly p rta t

Is c s in p s y u to g fo th n n ? o t s ire o o r e ao

INTERPRETATION: 54% population agrees to satisfy the consumer’s cost comfortable highly important, where as 24% says important, 12% says not important, 7% average and 3% says not at all important. So many customers would like to attractive to buy the Nano car.

Is design inspires you to go for the nano? Frequency average 2 important 54 highly important 44 Total 100 Percent 2.0 54.0 44.0 100.0 Valid Percent 2.0 54.0 44.0 100.0 Cumulative Percent 2.0 56.0 100.0

Valid

31

Potential Market for TATA Nano

Isd s nin p e y utog fo n n ? e ig s ir s o o r ao
6 0 5 0 4 0 3 0 2 0 1 0 0 ae g v ra e im o n p rta t h h im o n ig ly p rta t

Frequency

Isd s nin p sy utog fo th n n ? e ig s ire o o r e ao

INTERPRETATION: 44% of customer Says it is highly important, 54% of the Nano customer says it is important & only 2% of the customer says it is Average.

32

Potential Market for TATA Nano

Is mileage inspires you to go for the nano? Frequency average 4 important 54 highly important 42 Total 100 Percent 4.0 54.0 42.0 100.0 Valid Percent 4.0 54.0 42.0 100.0 Cumulative Percent 4.0 58.0 100.0

Valid

Ism a ein p sy utog fo n n ? ile g s ire o o r ao
6 0 5 0 4 0 3 0 2 0 1 0 0 ae g v ra e im o n p rta t h h im o n ig ly p rta t

Frequency

Ism a ein p sy utog fo th n n ? ile g s ire o o r e ao

INTERPRETATION: 54% of the customers say the mileage is important, whereas 42% of the Nano Customers says it is highly important, & 4% of the Customer says the Mileage is Average.

33

Potential Market for TATA Nano

Is comfortab inspires you to go for the nano? Frequency not important 1 average 3 important 65 highly important 31 Total 100 Percent 1.0 3.0 65.0 31.0 100.0 Valid Percent 1.0 3.0 65.0 31.0 100.0 Cumulative Percent 1.0 4.0 69.0 100.0

Valid

7 0 6 0 5 0 4 0

Frequency

3 0 2 0 1 0 0 n t im o n o p rta t ae g v ra e im o n p rta t h h im o n ig ly p rta t

Is c m rta in p sy utog fo th n n ? o fo b s ire o o r e ao

INTERPRETATION: 65% of the customers are says they are comfortable, where as 31% of the customers say they are highly comfortable, 3% of the customers are not comfortable.

34

Potential Market for TATA Nano

Is engine capacity inspires you to go for TATANano Frequency average 3 important 59 highly important 38 Total 100 Percent 3.0 59.0 38.0 100.0 Valid Percent 3.0 59.0 38.0 100.0 Cumulative Percent 3.0 62.0 100.0

Valid

7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 ae g v ra e im o n p rta t h h im o n ig ly p rta t

Frequency

Is e g ec p c in p s y utog fo T T N n n in a a ity s ire o o r AA ao

INTERPRETATION: 59% of the customers are says they are Engine capacity, where as 38% of the customers say they are highly imp, 3% of the customers are average.

35

Potential Market for TATA Nano

Is Offers inspires you to go for the nano? Frequency not important 2 average 6 important 61 highly important 31 Total 100 Percent 2.0 6.0 61.0 31.0 100.0 Valid Percent 2.0 6.0 61.0 31.0 100.0 Cumulative Percent 2.0 8.0 69.0 100.0

Valid

Is O rs in p s y utog fo n n ? ffe s ire o o r ao
7 0 6 0 5 0 4 0

Frequency

3 0 2 0 1 0 0 n t im o n o p rta t ae g v ra e im o n p rta t h h im o n ig ly p rta t

Is O rsin p sy utog fo th n n ? ffe s ire o o r e ao

INTERPRETATION: 61% of the customers are says they are offer, where as 31% of the customers say they are highly comfortable, 2% of the average and 6% of the customers are not important.

36

Potential Market for TATA Nano

Is brand image inspires you to go for the nano? Frequency not important 1 average 1 important 58 highly important 40 Total 100 Percent 1.0 1.0 58.0 40.0 100.0 Valid Percent 1.0 1.0 58.0 40.0 100.0 Cumulative Percent 1.0 2.0 60.0 100.0

Valid

7 0 6 0 5 0 4 0

Frequency

3 0 2 0 1 0 0 n t im ota t o pr n a ea e vrg im ota t pr n h h im ota t ig ly p r n

37

Potential Market for TATA Nano

INTERPRETATION: 58% of the customers are says important they are brand image, where as 40% of the customers say they are highly imp, 1% of the customers are not imp and average 1%.

Is availability inspires you to go for the nano? Frequency not at all important 1 not important 2 average 3 important 70 highly important 24 Total 100 Percent 1.0 2.0 3.0 70.0 24.0 100.0 Valid Percent 1.0 2.0 3.0 70.0 24.0 100.0 Cumulative Percent 1.0 3.0 6.0 76.0 100.0

Valid

8 0

6 0

4 0

Frequency

2 0

0 n t a a im o n o t ll p rta t n t im o n o p rta t a ra e ve g im o n p rta t h h im o n ig ly p rta t

Is a a b in p s y utog fo th n n ? v ila ility s ire o o r e ao

38

Potential Market for TATA Nano

INTERPRETATION: 70% of the customers are says they are availability, where as 24% of the customers says they are highly available, 2% of the customers are not available, 1% of the not at all important and 3% of the average.

3.
do you like to give this car to your children Frequency 81 19 100 Percent 81.0 19.0 100.0 Valid Percent 81.0 19.0 100.0 Cumulative Percent 81.0 100.0

Valid

No Yes Total

39

Potential Market for TATA Nano
10 0

8 0

6 0

Frequency

4 0

2 0

0 N o Ys e

d y u lik to g th c r to y u c ild n o o e ive is a o r h re

INTERPRETATION: 19% of the customer says that they are going to give a car to there children, and 81 % of the customers says that there not ready to give a car to there children.

do you like to use this car for your family purpose Frequency 60 40 100 Percent 60.0 40.0 100.0 Valid Percent 60.0 40.0 100.0 Cumulative Percent 60.0 100.0

Valid

No Yes Total

40

Potential Market for TATA Nano

d y ulik tou e th c r fo y u fa ily p rp s o o e s is a r o r m u o e
7 0 6 0 5 0 4 0

Frequency

3 0 2 0 1 0 0 N o Ys e

d y u lik to u e th c r fo y u fa ily p rp s o o e s is a r o r m u o e

INTERPRETATION: 60% of the customers says that they are not ready to use the car for family purpose, where as 40 % of the customers says that they are ready to use the car for family purpose.

do you like to use this car for your business purpose Frequency 62 38 100 Percent 62.0 38.0 100.0 Valid Percent 62.0 38.0 100.0 Cumulative Percent 62.0 100.0

Valid

No Yes Total

41

Potential Market for TATA Nano

Yes

No

INTERPRETATION: 62% of the customers are not ready to use the car for business purpose; where as 38% of the customers are ready to use the car for business purpose

42

Potential Market for TATA Nano

Do you like to use this car for your depending on sitution Frequency 41 59 100 Percent 41.0 59.0 100.0 Valid Percent 41.0 59.0 100.0 Cumulative Percent 41.0 100.0

Valid

No Yes Total

N o

Yes

INTERPRETATION: 59 % of the customers say that they are ready to use the car in situation, where as 41% customers say that they are not ready.

43

Potential Market for TATA Nano

can low level people buy the Nano Frequency 91 9 100 Percent 91.0 9.0 100.0 Valid Percent 91.0 9.0 100.0 Cumulative Percent 91.0 100.0

Valid

No Yes Total

100

80

60

40

Frequency

20

0 No Yes

can low level people buy the Nano

INTERPRETATION: The Survey report shows that 9% of the people say low level people can buy the car, where as 91% of the people say they can not buy the car.

44

Potential Market for TATA Nano

can middle level people buy the Nano Frequency 9 91 100 Percent 9.0 91.0 100.0 Valid Percent 9.0 91.0 100.0 Cumulative Percent 9.0 100.0

Valid

No Yes Total

100

80

60

40

Frequency

20

0 No Yes

can middle level people buy the Nano

INTERPRETATION: The Survey report shows that 91% of the people say middle level people can buy the car, where as 9% of the people say they can not buy the car.

45

Potential Market for TATA Nano

can high level people buy the Nano Frequency 50 50 100 Percent 50.0 50.0 100.0 Valid Percent 50.0 50.0 100.0 Cumulative Percent 50.0 100.0

Valid

No Yes Total

60 50 40 30 20 10 0 No Yes

Frequency

can high level people buy the Nano

INTERPRETATION: The Survey report shows that 50% of the people say middle level people can buy the car, where as 50% of the people say they can not buy the car.

46

Potential Market for TATA Nano

would you like prefer maruti 800 to buy Frequency 59 41 100 Percent 59.0 41.0 100.0 Valid Percent 59.0 41.0 100.0 Cumulative Percent 59.0 100.0

Valid

No Yes Total

70 60 50 40 30 20 10 0 No Yes

Frequency

would you like prefer maruti 800 to buy

INTERPRETATION: 41% of the people says that they would like to prefer Tata Maruti800 car to buy, where as 41 % of the people says they wont prefer car to buy.

47

Potential Market for TATA Nano

would you like prefer Tatanano to buy Frequency 17 83 100 Percent 17.0 83.0 100.0 Valid Percent 17.0 83.0 100.0 Cumulative Percent 17.0 100.0

Valid

No Yes Total

100

80

60

40

Frequency

20

0 No Yes

would you like prefer Tatanano to buy

INTERPRETATION: 83% of the people says that they would like to prefer Tata Nano car to buy, where as 17 % of the people says they wont prefer car to buy.

48

Potential Market for TATA Nano

would you like prefer Indica to buy Frequency 89 11 100 Percent 89.0 11.0 100.0 Valid Percent 89.0 11.0 100.0 Cumulative Percent 89.0 100.0

Valid

No Yes Total

100

80

60

40

Frequency

20

0 No Yes

would you like prefer Indica to buy

INTERPRETATION: 11% of the people says that they would like to prefer Indica car to buy, where as 89 % of the people says they wont prefer car to buy.

49

Potential Market for TATA Nano

would you like prefer other cars to buy Frequency 98 2 100 Percent 98.0 2.0 100.0 Valid Percent 98.0 2.0 100.0 Cumulative Percent 98.0 100.0

Valid

No Yes Total

120 100 80 60 40

Frequency

20 0 No Yes

would you like prefer other cars to buy

INTERPRETATION: 2% of the people says that they would like to prefer others car to buy, where as 98 % of the people says they wont prefer car to buy.

50

Potential Market for TATA Nano

FINDINGS:  Promotional activities are not carried out  Major customers are professional and middle class people  There is more scope for TATA Nano car and about the TATA group  Tata is giving very good services for their customers

SUGGESTION: • Employees should be increased in number to concentrate more attentively towards customer. • Giving good service and quick respond towards the complaint is also increasing the sales and usage. • Finally I hope TATA service is very good better then the other car companies. • The Hubli-Dharwad market is very large in compare to the market as well as it is more challenging market.
51

Potential Market for TATA Nano

• It is necessary for all the car major companies to provide those products, which are easy to available and affordable to the consumers. It is right that the profit margin is very low in the Nano products, but at the same time the market size is much large in the Hubli-Dharwad cities, as well as in India the companies can improve their product by increases the costs on the advertising because the Hubli-Dharwad consumers need attractive colors and service. Application of 4A* is also a major task for the major companies in this area.

CONCLUSION: There is wide scope for TATA Nano car because now days the standard

of living style is increasing day by day and the car rate also very less compare to the other A’s segment cars so people are interested to buy the Nano car. As I analyzed the various data based on questionnaire, a fact has come into light that Tata’s products are the most known and popular. Cheaper cost, brand loyalty, good publicity and advertisement, the Hubli-Dharwad consumers generally prefers the products of Tata’s in all segments. Accept it people firstly prefer for good quality and comparatively low prices products.

52

Potential Market for TATA Nano

BIBLIOGRAPHY:
Reference Books: Marketing Management Websites: www.tatamotors.com www.Indianautomobiles.com www.carawle.com Philip Kotler, K.D.Basava

Others: News Paper & Magazines

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