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“Effect of Declining Market on TATA Motors”
NILESH R. MANGHWANI AM 26
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH
Writing is a solitary task. However turning of millions of bytes of information requires an army of talented folks . I have been fortunate enough to be assisted by many talented and caring people. And I wish to express my appreciation all those help has been most valuable.
To all these truly outstanding people , and many others too , my warm personal regard .
I am indeed grateful to my Director Mr. Sunil Kumar and Guardian Mr. Vishal Bhole and class co-ordinator Mrs. Manisha Landefor providing me the necessary guidance and facility required for completion of this project and for being an effective source of inspiration. I am thankful to the library for providing the necessary magazines and journals without which the completion of this project would not be possible
Your’s Faithfuly Nilesh .R. Manghwani
C E RT I FI CAT E
This is to certify that the Project title Effect of Declining Market on TATA Motors is a bonafide work carried out by NILESH R. MANGHWANI student of P.G.D.M (MRKT) of Sinhgad Institute of Business Administration and Research, Pune for fulfillment of a project report . He has worked under our guidance and direction. His work is found to be satisfactory and complete in all respect.
Director Mr. Sunil Kumar
Project Guide Mr. Vishal Bhole
Place: SIBAR, PUNE
TABEL OF CONTENTS
1. Global Economic Downturn…………………………………………… 1 2. Impact of US Recession in India………………………………………. 1 3. Impact of Recession on Automobile Industry…………………………. 2 4. The Indian Automobile Industry Today……………………………….. 4 5. TATA Motor ltd Overview…………………………………………….. 5 6. Various Products of TATA Motors…………………………………….. 17 7. Other TATA Services……………………………………………………21 8. Share Holding Pattern of TATA Motors………………………………...22 9. Snapshot Analysis of Company : SWOT………………………………..22 10.Recent Business Decisions………………………………………………23 11.Marketing Strategies……………………………………………………..25 12.Human Resource Strategies……………………………………………...31 13.Operation Strategies……………………………………………………..34 14.Indian Automotive Players(Financial strategies)………………………..36 15.Conclusion………………………………………………………………46 16.Bibliography…………………………………………………………….47
This leads to a decreased demand for goods and services. which in turn leads to a decrease in production. The India economy is likely to lose between 1 . lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment. A recession is also preceded by several quarters of slowing down. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less.GLOBAL ECONOMIC DOWNTURN Definition: A recession is a decline in a country's gross domestic product (GDP) growth for two or more consecutive quarters of a year. Causes: An economy which grows over a period of time tends to slow down the growth as a part of the normal economic cycle. Impact of a US recession on India: Indian companies have major outsourcing deals from the US. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. India's exports to the US have also grown substantially over the years.
U. GM is struggling to stay alive and claims that the company has just enough cash to continue its operations. Even the merger talks of GM and Chrysler have been officially brought to a halt because of the liquidity crunch. Indian companies with big tickets deals in the US would see their profit margins shrinking. India is a strong and growing economy but the hit of recession has put red marks on the entire balance sheet of the Indian economy. Ford of 30% and Chrysler down by 35%. All the three major car manufacturers have reported declined growth after the hit of recession. Asia is yet to totally decouple itself (or be independent) from the rest of the world. The worries for exporters will grow as rupee strengthens further against the dollar. A weak dollar could bring more foreign money to Indian markets. The whole of Asia would be hit by a recession as it depends on the US economy. Impact of Recession in the Automobile Industry Global recession has devastated the global auto industry with pinching effects on the Indian auto industry.S sales have fallen down by 32% which has directly affected the Indian car industry where GM has recorded a fall of 45%. Then again the market went in the negative terrain swayed by the wind of recession. After the industry experienced a heavy fall in the month of August due to inflation.to 2 percentage points in GDP growth in the next fiscal year. Among the leading car manufacturers. this year it proved to be a curse for the Indian auto industry. At one end of . But experts note that the long-term prospects for India are stable. Unfortunately. General Motors and Ford were the first one to file for bankruptcy. September proved to be a promising month with things setting out at the right place. October usually is considered to be the best month for car sales because of the festive season.
India is blessed with a middle class. However. Auto industry in India has been hit hard by ongoing global financial recession. and Maruti Suzuki are investing huge amounts to establish new production plants and line up launch of car models. Hyundai. Ford. Sales figures of India automobile industry for December 2008 have shown devastating after effects of global financial slowdown.5% to 9. Mahindra.5%. GM. Renault. This initiative taken by SIAM further forced few car manufacturers like Tata Motors and Maruti Suzuki to cut down their production which further took away the job of almost 300 workers. It is also said that the recent Mumbai terror attack and the cyclonic rain in South India have added to the woes of Indian car manufacturers. This class is being touted as potential consumers for India auto industry in years to come. the severe liquidity crunch in the U. car manufacturers like Tata Motors. which has eventually put a negative impact on the auto component industry. which is getting economically stronger with every passing day. Mahindra & Mahindra recorded a fall of about 40%.05% over October 2007 and the car production fell down to about 12. The Indian Auto Industry Today In 2009 estimated rate of growth of India auto industry is going to be 9 percent. In addition. Infact.S market has also forced many of the car buyers to cut upgrades to bigger cars and many are pushed back from buying new cars.the spectrum. At the other end of the spectrum. overall car sales declined to about 9. there is still hope for automobile industry of India in 2009 as there are certain factors working in its favor. Further to that even the month of November was not successful in bringing some charm to the industry.32%. even production has gone down to a great extent. . In October. SIAM has cut down the growth forecast of automotive sales from 12. and Tata Motors showed 12% decline in the car sales. With deteriorating car sales. Maruti Suzuki recorded a fall of 27%. Even Mahindra-Renault reduced the number of production units of their Logan. November recorded the steepest fall in car sales in the past five years.
has put in large sums of money in India automobile market. As per its estimates. Shinzo Nakanishi. Leading members of India auto industry have forecast a difficult path in 2009. There are some other automobile companies of world who have shown interest in India auto market. there are hopes of an economic revival. Even though its rate of growth has slowed down considerably. managing director of Maruti Suzuki.Indian economy has been. Work force of auto industry of India is relatively well trained. Skoda Auto and Mercedes-Benz. These companies have major plans lined up for India auto industry and are likely to invest a huge amount of money in India automobile market India domestic auto industry has been passing through a tough phase in 2008 and such a trend is supposed to continue in 2009 as well. more or less. Major names among these are General Motors. has said that 2009 would present them with a number of challenges. able to withstand tremors of global financial meltdown. All these factors indicate that there could be a decent future for India auto industry in days Hyundai. Tata Motors Limited Overview . a major automobile establishment of South Korea. India auto industry could become a major center for small car manufacturing organizations in future.
it bought Daewoo's truck manufacturing unit. which ended in 1969 Tata Motors was listed on the NYSE in 2004. noted for its Rs 100. which also includes the Rover. based on figures for 2006. The OICA ranked it as the world's 20th largest automaker. Tata Motors was established in 1945. acquired a 21% stake in Hispano Carrocera SA.000 price-tag. formerly known as TELCO (TATA Engineering and Locomotive Company). Lucknow. in South Korea. India. Part of the Tata Group. Ahmedabad and Pune. It is India's largest passenger automobile and commercial vehicle manufacturing company. The company manufactured its first commercial vehicle in 1954 in a collaboration with DaimlerBenz AG. in January 2008. In March 2008. It also. Pantnagar.The purchase was completed on 2 June 2008 Tata Motors has its manufacturing base in Jamshedpur. and one of the world's largest manufacturers of commercial vehicles. now known as Tata Daewoo Commercial Vehicle. it finalised a deal with Ford Motor Company to acquire their British Jaguar Land Rover (JLR) business. 1. Daimler and Lanchester brand names. when the company began manufacturing locomotives. is a multinational corporation headquartered in Mumbai. History Tata Motors launches its first truck in collaboration with Mercedes-Benz . Tata Motors launched the Tata Nano. giving it controlling rights in the company. and in 2005 it was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. In 2004.Tata Motors Limited.
Though the car was initially panned by auto-analysts. the first fully indigenous passenger car of India. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover. founded by Jamshedji Nussarwanji Tata and J. namely. a multi utility vehicle. Tata Motors entered the passenger vehicle market in 1992 by launching the Tata Sierra. 3. The success of Indica in many ways marked the rise of Tata Motors. the car's excellent fuel economy. In 1998 Tata launched the Indica. A newer version of the car. Note: In 1996-97 Tata launched the Tata Sumo Deluxe and the Tata Sierra Turbo variants respectively. powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. was a major improvement over the previous version and quickly became a mass-favorite.Cars Tata Indica After years of dominating the commercial vehicle market in India.Daewoo acquisition Main article: Tata Daewoo Commercial Vehicle . Tata Sumo (LCV. Tata Motors also successfully exported large quantities of the car to South Africa. Baker. named Indica V2. 1994) and Tata Safari (1998. a stationwagon design based on the earlier 'TataMobile'  a light commercial vehicle which some people may still think of as Tata's first passenger car). 2. After the launch of three more vehicles.Tata Motors is a part of the Tata and Sons Group. India's first sports utility vehicle). Tata Estate (1992.
Tata Motors aimed to increase its presence worldwide.Tata Novus is one of the best selling commercial trucks in South Korea. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. . it acquired the Daewoo Commercial Vehicle Company of South Korea. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus). it is increasingly looking at the international markets. • To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. In 2004. With the success of Tata Indica. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project On its journey to make an international foot print. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors. The reasons behind the acquisition were: • Company’s global plans to reduce domestic exposure.
sensing the huge opportunity in the fully built bus segment. Tata Ace Tata Ace was India's first mini truck Main article: Tata Ace Tata Ace. Mumbai and Delhi alike In 2005.A.4.. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a . and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors. was launched in May 2005. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. Joint ventures Tata MarcoPolo NON-AC City Bus in Delhi. Aragonese bus manufacturing company and introduced its highend inter-city buses in the country. a Brazil-based global leader. 5. Tata Motors has also formed a 51:49 joint venture with Marcopolo S. India's first indigenously developed sub-one ton mini-truck.The NON-AC version is only used in Delhi while AC versions are used in Bangalore. Tata Motors acquired 21% stake in Hispano Carrocera SA . lead by Brian Behrle. in bus body building.
South Africa. The company plans to launch the new pick-up model in India. . Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna which would be assembled in Thailand and Argentina.537 units due to the rising demand for Ace. Tata Ace has also been exported to several European. unveiled in 2007. In 2007.00. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show. 2007 Tata Pick Up. South American and African countries. In 2007.884. Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the number maker for TML. within 4 years since its introduction. Tata Motors generated revenues of Rs 31.By 2005. is expected to enter European and American market by 2009. TML sold the 2.69 crore. 6. LCV sales of Tata Motors had grown by 36. Southeast Asia. Turkey and Saudi Arabia. It also formed joint ventures with various local companies in several countries to assemble Tata cars. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005.new market segment termed the small commercial vehicle (SCV) segment. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division. Tata Motors launched several concept models and future designs of existing models. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'.6 percent to 28. The Ace was built with a load body produced by Autoline Industries. Europe.000th Ace in August 2008.
Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. 7. 9. With full tanks it will run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. The company has formed a joint venture with Thailand’s Thonburi Company. but "the compressed air driving the pistons can be boosted by a fuel burner". MDI owner Guy Negre was reported to have "the backing of Tata" It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compressor. which would fill the tanks in 3 minutes. an independent auto assembler.Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. OneCAT is a five seat vehicle with a 200-litre (7. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers.1 cu ft) trunk. named OneCAT. in which Tata Motors will hold a 70% stake. It is actually a dual fuel car but it is more efficient than any present Hybrid cars.There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town. Tata Nano Tata Nano . Compressed air car Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car. The project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles.2008 onwards 8.In 2007.
The key acquisition would be of the intellectual property rights related to the technologies. Both run on lithium batteries . named Tata Nano. NowTata Motors Limited plan to set up the Nano factory in Sanand. There was also strong opposition to the compulsory acquisition of land for the proposed car factory in Singur West Bengal. that aims to sell in 2008. In addition to the brands. Some environmentalists are concerned that the launch of such a low-price car could lead to mass motorization in India with adverse effects on pollution and global warming. Bajaj Auto and Mahindra-Renault have[when?] plans to launch cars in this price range. 1. The company has indicated that the electric Indica would be launched locally in India in about 2010.Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace.000 (USD $2. without disclosing the price. Tata is goingto produce the E-Nano.93 M. . Jaguar Cars and Land Rover Main articles: Jaguar Cars and Land Rover As of 27 March 2008. Tata has faced controversy over developing the Nano. New Delhi. Gujarat. Tata Motors' UK subsidiary. 11.000)The company unveiled the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan. an electric version. which specialises in the development of innovative solutions for electric vehicles. The sale is expected to be completed by the end of the second quarter of 2008Tata will also gain the rights to the Daimler. Tata Motors reached agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. To solve this. The vehicle would be launched in Norway in 2009. and Rover brand names.Tata has developed a car. Tata Motors has also gained access to 2 design centers and 3 plants in UK. and plans to launch the electric Indica hatchback in Europe next year. because of the problems faced in West Bengal. Tata Motors European Technical Centre.00. in partnership with Miljøbil Grenland AS 10.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1. It is the least expensive production car in the world: the price is about Rs. Lanchester. has bought a 50.
Thailand. Indica and Xenon TL will be assembled in Thailand and Argentina. Global operations The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets. Tata Motors revealed its intention to enter the sedan and sports car markets. With the unveiling of Tata Elegante during Geneva Motor Show.12. Tata Indica during an auto exhibition in Bangkok. .
General Motors and Renault-Nissan as a possible suitor for the rapidly declining Chrysler. The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. which is currently owned by Cerberus Capital Management 14. In 2004. Tata Group's strong expertise in the IT based engineering solution for products and process integration has helped Tata Motors. In March 2005. it was rumoured in 2008 that Tata was in negotiations along with Fiat. The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has expanded its production and assembly operations to several other countries including South Korea. it acquired a 21% stake in Hispano Carrocera SA.3bn (£1.Tata Prima was unveiled during the Geneva Motor Show in 2009. now known as Tata Daewoo Commercial Vehicle. giving it controlling rights in the company. 13. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. in South Korea. Thailand. Present global challenge Tata Motors have some distinct advantages in comparison to other multi-national competitors.15bn)Tata Motors has also acquired from Ford the rights to three other brand names: Daimler. Tata Motors bought Daewoo's truck manufacturing unit. Lanchester and Rover. South Africa and Argentina and is planning to set up plants in Turkey. On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford Motor in a deal worth $2. Indonesia and Eastern Europe. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to .Global brands Tata Motors has been aggressively acquiring foreign brands to increase its global presence. India has a large auto component industry noted for its world class capabilities.
It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. 15. whom will make India as a production hub and export to nearest market.Future challenges .7 billion by 2010.A. There are favorable Government polices and regulations to boost the auto industry. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. motivate many foreign commercial vehicle manufactures to set up shops in India. and environmental care. build. and technological advancements that are the flag bearers in their production activities in India. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. Volvo entered India in 1998 to focus on production of its fully built buses.leverage its knowledge of Indian market. It is still operating in the niche market of high end buses where the Tata compete through its Hispano Carrocera and Marcopolo S. it has focused on providing economical transport solutions in consonance with its values of safety. some major automakers have moved their operations to India to cut costs. The policy sets an export target of $1 billion by 2005 and US$2. Tata's trucks have long been reputed for their unmatched performance. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. which might affect its growth negatively. In India. JV buses. Thus Tata Motors CV will have to face tough competition in near future. quality. The Government of India announced an automobile policy in December 1997. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. Its competitive advantage is its high technology which makes the vehicle a very comfortable option to travel through. Mere car assembling operations were not welcomed. The policies adopted by Government will increase competition in domestic market. However.
Avia manufactures 6-9 tonne LCVs and has a capacity of 20. North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC. USA (parent Navistar International). state-of-the-art paint shop and R&D facilities. • Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles. Turkey. while the rest is to be exported to the Middle East.000 units per annum and at an investment of Rs7bn.000 units per annum. • Mahindra and Mahindra: JV with ITEC. Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. The acquisition has given ALL direct access to an entire range of Avia trucks. tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant. Asia and Africa. tippers. Avia’s press shop with dies and tools. Russia. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport. Further. welding lines. and is the world's largest manufacturer of medium-duty diesel engines. with an initial capacity of 24. . the two companies have formed another JV to manufacture buses in India from end-2007. to manufacture commercial vehicles and to bolster its position in the CV business.Tata Xover Plastic Car Production. cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09.Tata plans on producing a car that is made of nearly 100% plastic. ITEC is the leader in medium and heavy trucks and buses in North America. The JV plans to sell nearly half of its production in the domestic market. such as long-haul trucks. • Ashok Leyland: Acquisition of Czech Republic-based Avia.
Various Products of TATA Motors  Passenger cars and utility vehicles Tata Indigo SW • • • • • • • • • • • Tata Sierra Tata Estate Tata Sumo/Spacio Tata Safari Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano (3RD March 2009) Tata Xenon XT Tata Xover (2009) .ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates.
 Concept vehicles Tata Cliffrider • • • • • • • • • 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima  Commercial vehicles .
Pune. Mumbai. Tata Low Floor Buses are also used by administrations in Delhi. Maharashtra.Tata 1616 Starbus Tata Marcopolo Buses in the Delhi BRT. Udaipur and Indore • • • • • • • Tata Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) . Tata StarBus in Nagpur.
2) Tata motor finance: . available in hard top.• • • • • • • • • • • • • • • • • • • • • Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Medium Bus) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo)  Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier. soft top. Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. Inc. 4x4. (AIG). and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6) Tata LPTA 1615 T Other Tata services: 1) Tata Insurance: Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited (collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group.
today boasts of 109 branches in 22 Indian states. used vehicle finance. .Tata Motorfinance (TMF) is the automobile financing wing of Tata Motors. The company has grown in a big way in recent years and has embarked on expansion and acquisition programs. Some of the terms associated with the Tata Motor finance are as follows: • • • • Car financing/loan options available for customers belonging to different categories The repayment period varies to the tune of 36 months-84 months The interest paid on the loans are on the lower end Finance on passenger and commercial vehicles on all Tata vehicles and Fiat models Palio and Adventure include top up loans. utility and commercial vehicles along with construction equipments. loan takeover and refinancing • The paperwork is limited and the financing company's representative can be called even at home to complete the formalities. As part of it.Tata Motors is the largest automobile company in this part of Asia. including calculating the likely Equated Monthly Installment (EMI) that the customer might have to pay. Tata Motors has also strengthened and expanded on its finance wing Tata Motor Finance that provides for loan and financing options to the customers buying Tata Motors automobiles. It was launched in June 2003 and provides for loans on various segments of company automobiles like passenger cars. The company that has grown into most of the Indian cities along with a significant presence in some of the foreign markets too.
Marketing Strategies .
Tata Motors is reportedly manufacturing Nano at its existing Pantnagar .) Currently.000 people are killed in road-accidents every year).490. besides selling them in India." The car is expected to boost the Indian economy. who has described it as an eco-friendly "people's car". £1. Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano Tata Group is expected to mass-manufacture the Nano. A triumph of homegrown engineering. to also export them worldwide Critics of the car have questioned its safety in India (where reportedly 90. and have also criticised the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). West Bengal. Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasoline-model The Nano was originally to have been manufactured at a new factory in Singur. The Financial Times reported[: "If ever there were a symbol of India’s ambitions to become a modern nation. but increasingly violent protests forced Tata to pull out October 2008. particularly the electric-version. and.186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity. create entrepreneurial-opportunities across India as well as expand the Indian car market by 65% The car was envisioned by Ratan Tata. the tiny car with the even tinier price-tag. the $2. Chairman of the Tata Group and Tata Motors. it would surely be the Nano.a) Introduction of the new Tata nano The introduction of the Nano received media attention due to its targeted low price. (See Singur factory pullout below. However.200 (€1.
000 rupees or approximately US$2000 (using exchange rate as of March 22. material costs had risen from 13% to 23% over the car’s development.000 Rupees has no extras. Cost Cutting features • • • • • • Price Tata initially targeted the vehicle as "the least expensive production car in the world"aiming for a starting price of 100. rather than welded. despite rapidly rising material prices at the time As of August 2008.000 for Singur. 2009)6 years ago.000 Rupees has air conditioning. and Tata faced the choice of: • • • • introducing the car with an artificially low price through government subsidies and taxbreaks forgoing profit on the car using vertical-integration to artificially boost profits on cars at the expense of their materials industries partially using inexpensive polymers or biodegradable plastics instead of a full metalbody raising the price of the car option.]The company will bank on existing dealer network for Nano initially. compared to 300. It only has 1 side view mirror . It has no power steering. It has 3 nuts on the wheels instead of the statutory 4 nuts. instead the rear seats can be folded down to access the boot space It has a single windscreen wiper instead of the usual Some exterior parts of it are glued together. Model versions At its launch the Nano was available in three trim levels: • • the basic Tata Nano Std priced at 123. Gujarat has also agreed to match all the incentives offered by West Bengal government. the deluxe Tata Nano CX at 151.(Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. Its door opening lever was simplified. The new Nano Plant could have a capacity of 500. The Nano's boot does not open.000 units.
It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle. The Tata Sumo has been enjoying its position in the MUV market since 1994. Yellow Colour Taxi Version. the luxury Tata Nano LX at 172. It has been the favourite choice for cab owners.000 Rupees has air conditioning. which will be adjustable. anti-lock braking system (ABS) and meets European crash standards and emission. but in fact is a . The Sumo has seen a series of changes in terms of refinement in this decade. power windows and central locking the Nano Europa.• • the deluxe Tata Nano TX at 135. bigger 3-cylinder engine.000 Rupees has air conditioning. while the deluxe and luxury models will get air conditioning and body coloured bumpers. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. as it is rugged and affordable. b)Modification in tata sumo New Tata Sumo The Toyota Qualis and now competes with Chevrolet Tavera. European version of the Tata Nano has all of the above plus a larger body. except for the driver's. The base model will have fixed seats.
0L Inline-4.carry over of the old Sumo. 69 bhp diesel 2. 89 bhp turbo diesel 3.2L DiCOR In-line 4. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 . The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp. with some cosmetic changes. Tata's latest three variants under the 'Sumo Grande' category are LX. Quick Take * Fuel Economy Available Engines 9/14 kmpl (city/highway) 2. Refinement. both internal and external. and LX 10/7 Str. The Indigo Dicor from Tata Motors has been . The Sumo comes in nine Victa variants: CX 10/7 Str.2-L direct injection common rail (DICOR) engine. 118 bhp diesel Available Transmissions 5-speed Manual Transmission (MT) c) New version of indigo. EX 10/7Str. Sumo Grande boasts of a powerful 2. except the Victa DI variants. is evident across the variants. 7seater and 8-seater configurations.0L Inline-4. GX TC 7 Str. 67 bhp diesel 2.0L Inline-4. All variants.indigo Dicor Dicor Variants The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The Victa DI variants get a 3-litre turbocharged diesel engine. DI EX 7/9 Str. GX 7 Str. EX and GX available in 2-seater. DI GX 7/9 Str. are powered by a 2-litre Inline-4 diesel engine.3000 rpm. DI CX 7/9/10 Str. DI LX 7/9 Str.
5 kgm @ 2500 rpm Dicor 32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger(VGT) Max.made apt for Indian roads especially with its driver & co passengers oriented positive attributes such as : • • • • • Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3: with headrest mounted LCD screens 1. power .12 Kgm @ 3500 rpm Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. torque .4-litre as rail diesel engine Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window. Power 70 PS @ 4500 rpm Max. Torque . & Benz silver as the new pattern for console & AC fascia. It has no mounted LCD screens. black dials. black dials with chrome rings & star check as the new pattern for its console&ACfascia.85 PS @ 5500 rpm Max.torque .140Nm@1800-3000 rpm . ENGINES Petrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max.13.power-70 PS@4000 rpm Max. Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror.
the difficulties faced in cracking these markets pale before the huge potential they offer a company. or NCAER.e) Tapping of Rural Markets According to the National Council for Applied Economic Research. rural India accounts for 70% of India’s population. NCAER data suggests that in real terms. 56% of the national income. and going ahead. Tata motors ltd. The share of non-farm income will be about two-thirds of the rural economy by 2012-13. the contribution is likely to grow. . are working on strategies to make inroads into these markets. 60 per cent of which runs on cash. So. Noticing this huge potential Tata motors now plans to tap the rural market. Of the total sales (of consumer goods). the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. at 1999 prices. around 55% come from rural India. 64% of the total expenditure and one-third of the total savings.
sharing the vision of the company and transmitting a sense of passion in the company to the prospective employee will go a long way in attracting the right talent. . The challenge facing many firms is to hire with retention. hiring from the public sector as well as experienced people looking for second careers. Over the past few years HR is witnessing a dramatic increase in lateral hiring of professionals with some years of experience. the supply is already dwindling.Human Resource Strategies a) Hiring Practices Hiring the right talent is the greatest challenge in business environment and new and innovative hiring strategies are the need of the hour if Indian companies have to succeed in the changing global scenario. A smart and sophisticated workforce will be the most important corporate resource over the next 20 The demand for this resource is sure to go up. however. the compensation being offered. Some of the innovative hiring strategies could include hiring teams and not just individuals and offering education and placement packages. With Indian companies entering the phase of global mergers and acquisitions. already there is a shift in standard hiring practices.
3.so company should provide different offers and gifts. No salary cuts and increase in Resource and Development .: At the time of recession its important task of hr personal to reorganize the structure of the company. Of employees. 4. It is very important from company point of view to survive in recession.as already due to recession he will get equal amount of service by paying the less price..for ex-If marketing manager used to get incentives for hotelling accommodations 2000 per day. For achievements of certain targets so as to maintain the moral of working in the company. 5.: Human resourse manger should cut incentives of individuals.it should be cut down to 1200 per day.Re-organizing the organizational structure of co.so as to avoid extra man force and duplication of work..providing various offers to employee so to maintain the moral to work hard.2.Reducing in the incentives given to employees.
They have reduced delayes in work. More recent advancements in quality.They have not cut salaries of employees. . particularly continuous improvement. b) Quality Management Quality management is crucial to effective operations management. which means the work which is to be done in two hours it has to be completed in two hours. of shifts : Tata motors has reduced its number of shifts frm 3 to 2 in a day and so as to control reduce cost of production. Operations Strategies a) Reducing no. have resulted in advancements to operation s management as well. But they have reduced the extra working hours. And started making production according to the sales required. such as benchmarking and Total Quality Management.
can save costs and move products and services to customers more quickly. . Innovative methods. such as Just-in-Time inventory control.c)Inventory Management Costs can be substantial to store and move inventory.
Conclusion Over the period of time. fear of a slowdown in the United States of America have increased. The impact of the subprime crisis along with a slowdown in mortgages has led to a significant .
reduction in costs and delivery of value-added services to sustain profit margins. be minimal as the factors driving growth here are more local in nature. Further. India is a strong domestic demand story. however. so any slowing in the US is likely to have a more muted impact on India.lowering of growth estimates. Corporate India is also learning to master the art of efficient capital management. interest rates are expected to be stable primarily due to control over inflation and proactive measures undertaken by the RBI . Unlike the rest of Asia. it could mean a further appreciation in the rupee vis--vis the US dollar and a darkening of business outlook for sectors dependent on US companies. No sector has a dominant influence on earnings growth and risks to our estimate are limited. any slowdown there would have an impact on most of the global economic variables. Strong growth in domestic consumption and significant spending on infrastructure are the two pillars of Indias growth story. The overall impact of a US slowdown on India would. For India. Since the United States dominates the global economy.
co.utoronto.com/corporate/company/india.com . Marketing Management (Twelth Edition)  Marketing Management. Kevin Keller.institut.com  http://iegd.aspx  http://www.BIBLIOGRAPHY  Philip Kotler.utube. Rajan Saxena (Third Edition)  www.genmills.wikipedia.com  http://www.rotman.Hill company.in/pkotler  http://www.com www. The McGraw.pearsoned.