CHAPTER I Introduction

India is an emerging country with huge potential. The domestic economy is now growing at around 9-10% per annum and India’s importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the center of India’s new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturer’s product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain.  India eyes 25 million automotive jobs.  India's GDP is set to double over the next decade  In percentage terms, the automotive industry's contribution double.  In dollar terms, the sector's contribution is set to quadruple to some $145bn With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a welldeveloped components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers. Historical back ground should also

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

the Indian passenger vehicle market is dominated by cars (79%).  Tata Motors dominates over 60% of the Indian commercial vehicle market. two-wheelers and heavy vehicles.  Within two-wheelers. motorcycles contribute 80% of the segment size  Unlike the USA. of India in recent years has made remarkable impacts on Indian Automobile Industry.  India is the largest three-wheeler market in the world.  Foreign players are adding to their investments in Indian auto industry. Indian auto industry. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars. General Motors and Ford.  India is the second largest tractor manufacturer in the world.was overlooked by the then Government and the policies were also not favorable. which is currently growing at the pace of around 18 % per annum. and India is no exception to it.  The number one global motorcycle manufacturer is in India.  India is the largest two-wheeler manufacturer in the world.  India is being recognized as potential emerging auto market.  India is the fourth largest car market in Asia . occupying an important place on the 'canvas' of Indian economy.recently crossed the 1 million mark. The liberalization policy and various tax reliefs by the Govt. has become a hot destination for global auto players like Volvo.  2/3rd of auto component production is consumed directly by OEMs. .  India is the fifth largest commercial vehicle manufacturer in the world. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed. A well developed transportation system plays a key role in the development of an economy.  The first automobile in India rolled in 1897 in Bombay.

The financial business of Tata motors was separated into a subsidiary company in sep. Lucknow. 340 every six shares expecting to net Rs.4%. listed on the New York Stock Exchange in 2004 has created Rs. Stock price: Rs. Headquarters in Mumbai. with manufacturing facilities in the towns of Jamshedpur. 1.90 Crores.960 Crores. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. 2006. 10. now Mumbai. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. India's largest passenger automobile and commercial vehicle manufacturing company. and Pune. TELCO (TATA Engineering and Locomotive Company)       Multinational Corporation. 525 million in 2008from Rs.654. 2.41cr. was formerly called TELCO (TATA Engineering and Locomotive Company). They are offering one ordinary share valued at Rs. 731 Million in 2003. the so called “A” share would have different voting and dividend rights. the profits of the company went up at a CAGR of 36.189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”. these proceed would be utilized for an early repayment of the short term funding of 2. where it recorded a strong financial performance during the last 5 year period. 150 crores. Established in 1945. Tata motor’s passenger cars still need to reach acceptable international requirements. to attain Rs. for every such 6 shares held at a face value of 305 would raise Rs. India. By floating two rights issues at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4.Company profile The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited. 347 . 320 billion wealth and was one of the top 10 wealth creators in India. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. World's 19th largest automaker. Sales: 19. 95. From year 2005-2009. has its headquarters in Bombay. 331.3 Billion $ (Rs.

developed and manufactured passenger car. Over the years Tata Motors have been successful in creating their brand image. Tata Motors provide many innovative features to attract car lover. With the launch of Tata nano. profit by company. Leading commercial vehicle manufacturer and has significant presence in the multi-utility and passenger car segments. One of these innovations is the Tata Safari 4X4 Dicor that has “Reverse Guide System”. innovations. Another more important way of advertising is to create an image or brand image. These factors are such as market condition (it can’t be too low or too high with the prices of same vehicle from competitors. dealer profit. it was introduced in 1996 and shortly the car has been used in the famous James Bond movie. With the Launch of Tata Indica. Giving discount every month and special promotion for certain type of vehicle also one of the strong . testing and manufacturing such vehicles. This is the cheapest car in India till date and with the announcement of its diesel variant it has made potential buyers to eagerly wait for it. It had also developed the capability of designing. The packaging.In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. Currents facts Today Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price. A weather-proof camera is fixed to the rear car to help the driver while reversing the car. Tata has penetrated the market to its extreme by making a car available for Rs. a Euro 2 compliant vehicle is the country’s first indigenously designed. 132000 only. There are various factors to determine a price of a car. and quality control. it has to be at par). Take BMW Z3 for example. cost incurred to build a car.

Tata Motors has also acquired from Ford the rights to three other brand names: Daimler. South Korea’s second largest truck maker. HCVs plying over the highways to transport goods to different states and districts. The distribution of vehicle must be in a very systematic way. from the plant to dealership and to end user. In 2004.4 to 35. Tata Motors acquired a 21% stake in Hispano Carrocera. it acquired the Daewoo Commercial Vehicles Company.2 tones is witnessing a surge while demand for semi-trailers in 26. Thailand and Spain. Place of dealership does play an important role.5 tonner vehicles GLOBAL OPERATIONS Tata Motors has been aggressively acquiring foreign brands to increase its global presence. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market.5 tones category. a reputed Spanish bus and coach manufacturer. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution.strategy use by Tata Motors.5 to 12 tones segment and 16. Discount can be made from Company’s profit or from dealer’s profit at certain range. The industry witnessed a change in demand dynamics in last few years. a business comprising the two iconic British brands that was acquired in 2008. giving it controlling rights of the company. which is now adopted by transportation players because of improved road infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic congestion issues. Among them is Jaguar Land Rover. South Korea. and dealership method of distribution and sales is generally adopted. In 2005. while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3. while demand in 7. Tata Motors has operations in the UK. This is not only in India itself but also to the world-wide dealership. Lanchester and Rover. while also exporting these products to several international markets.5 tones segment is rising at the cost of demand in 5 to 7.2 to 25 tones segment is booming at the cost of demand in 12 to 16. The demand for LCVs in the <=3.2 tones segment is suffering. According to the Hub & Spoke model. physical location. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. Hispano’s presence . The channel of distribution.2 tones segment. Demand for trailers of >35.

it formed a joint venture with the Brazil-based Marco polo. These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. Tata also franchisee/joint venture assembly operations in Kenya. The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. Ukraine. 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. 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. Bhutan. They will debut in South Korea. . a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. The Government of India announced an automobile policy in December 1997. In 2006. motivate many foreign commercial vehicle manufactures to set up shops in India. Thailand. Sri Lanka and Nepal and has a growing consumer base in Italy. Russia and Senegal. 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. it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). Tata Motors has expanded its production and assembly operations to several other countries including South Korea. 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 being expanded in other markets. Bangladesh. The policies adopted by Government will increase competition in domestic market. Spain and South Africa. Thus Tata Motors CV will have to face tough competition in near future. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. which might affect its growth negatively. Mere car assembling operations were not welcomed. Bangladesh. South Africa. Indonesia and Eastern Europe. In May. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India. the SAARC countries and the Middle-East by the end of 2009. South Africa and Argentina and is planning to set up plants in Turkey. On Tata's journey to make an international foot print. Tata has dealerships in 26 countries across 4 continents. whom will make India as a production hub and export to nearest market.

Problem identification:The buying process starts when the buyer recognizes a problem or need. The other additional decisions are: . some basic concepts are: First. Marketers need to identify the circumstances that trigger a Particular need. the consumer is trying to satisfy need. telephone directory. 2. Information Search:The consumer tries to collect information regarding various products/service. trade fair etc. Marketers can identify the most frequent stimuli that spark an interest in a product category. 3. Marketers should find out the source of information and their relative degree importance to the consumers. Choice of purchasing decision:From among the purchase of alternatives the consumer makes the solution. Evaluation of alternative:There is no single process used by all consumers by one consumer in all buying situations.CHAPTER II ANALYSIS I CONSUMER BUYING DECISION PROCESS There are following five stages in consumer buying decision Process. By gathering information from a number of consumers. commercial. They can then develop marketing strategies that trigger consumer interest. The need can be triggered by internal or external stimuli. the consumer processes. chamber of commerce. Through gathering information. It may be to buy or not to buy if the decision is to buy. 4. retailers. Second. The marketer must know which criteria the consumer will use in the purchase decision. family members. catalogues. the consumer learns about completing brands and their features. the consumer is looking for certain benefits from the product solutions. Information may be collected form magazines. friends. 1. There is several First. business association.

Which types of bike he must buy from whom to buy a bike? How the payment to be made? And so on. 5. post-purchase use and disposal. Characteristic of Buyer Behaviors The chief characteristics of the buyer’s behaviors are as Follow:- . Post Purchase Satisfaction:The buyer. S satisfaction is a function of closeness between the buyer. the greater the consumer dissatisfaction. S expectation and the products Perceiver performance. the product is probably not very satisfying. In the evaluation stage the consumer forms preferences among the brands in the choice set. The Marketer’s job not end when the product is buying must monitor post-purchase satisfaction. S satisfaction or dissatisfaction with the product influence subsequent behavior. the marketer needs to know how they dispose of it. If the consumer satisfied. If the consumer store the product in a close. post-purchase action. Post Purchase Behavior:After purchase the product. he or she will exhibit a higher probability of purchasing the product again. Post purchase Action:The Consumer. The marketer up to this stage has tried every means to influence the purchase behavior. Dissatisfaction consumer may abandon and return the product. Post-Purchase Use or Disposal:The marketer should also monitor new buyers use and dispose of the product. The larger the gap between expectation and performance. especially it can be hurt the environment. If the consumer throws the product away. the consumer will experience the same level of product. The consumer may also form an intention to but the most preferred brand. but the choice is properly consumers.

SCOPE OF STUDY (1)The main scope of the study is depend to consumer response (2) It also analysis the benefits accruing to the company as a result of those service. research is required to measure present consumer buying behavior at the purchase of TATA cars. (3) This study has been made to find the level of satisfaction the Customer has regarding the service provider by car place. and for whom to purchase the CAR. (4) The individuals specific behaviors in the market place is affected by internal factor. perceiving advertising material. And therefore. what. There are many companies manufacturing motorcycles into the market. (2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes. culture. So the researcher problem is to identify what are the criteria that prospective customer takes into consideration before buying the cars. Therefore. at the same time as there are many companies manufacturing motorcycles. how. perception. . such as need . as well as by external of environment influences such as the family social groups. economics and business influences. and learning to prefer particular brands. and attitudes. idea about thinking of customer on whether. motives. management need to adjust with the change otherwise market may be lot.(1) It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them. PROBLEM DEFINATION Consumer says something and does something. (3) Consumer behaviors are very complex and dynamic to constantly changing.

(2) To know consumer behavior for purchase of four wheeler. . (1) (2) According to the time limit of our project we can cover only the some area.Limitations of study When the buyers are busy we can’t get accurate data from them. OBJECTIVES OF STUDY (1) To know market position of Tata automobile in the market. (3) During survey some respondents may not give answer in proper manner.

Internet. Research Tools: The data was collected through “Survey Questionnaire Method”. Data Collection: Data was collected through the following:-  Primary sources: Questionnaire from General public  Secondary Sources: Magazines.Research methodology Research Methodology: The data for the project was collected from malls. Sample Size: Sample size of 60 was taken based on “convenient Simple Random Sampling”. newspapers. customers at showrooms. markets and from public also. .

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