A

Seminar Report
On

AUTOMOBILE SECTOR
SESSION 2017-2018
Under Supervision of : Submitted by :
Dr. Manminder Kaur Deepti Dixit
Associate Professor MBA - 1st Sem.
MBA Deptt. Roll No. - 17025

GURU NANAK KHALSA INSTITUTE OF

TECHNOLOGY AND MANAGEMENT CAMPUS
YAMUNA NAGAR 135001
(Affiliated to Kurukshetra University, Kurukshetra)

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 ACKNOWLEDGEMENT

First and foremost let me sincerely thank ALMIGHTY for the great opportunity and blessings
that he has showered up on me for the successful and timely completion of my project work.

I extent my sincere gratitude to Dr. Amit Joshi , Director of Guru Nanak Khalsa Institute of
Technology and Management Technical Campus for his kind support and guidance for making
my project great success.

I very great fully wish to forward due respect and thanks to my internal faculty Dr. Manminder
Kaur, guide for the project, for the continuous, creative, valuable and informative support
extended to me, without which the project would not have been efficiently completed.

I thank my parents and all other family members for their valuable and inseparable support in
completion of this project.

Once again I take this opportunity to convey my sincere thanks to each and every person who
helped me directly and indirectly in the successful completion of this project.

Deepti Dixit

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 INTRODUCTION OF AUTOMOBILE INDUSTRY

Automobile industry in India an annual contribution of 4% to the GDP and

accounting for about 5% of the total industrial output, this segment clearly
stands out as a significant contributor to the economic growth. The industry has
grown at a CAGR of 16% p.a over the last 5 years.
With the potential to emerge as one of the largest in the world. Presently, India is
2nd largest two wheeler market in the world
4th largest commercial vehicle market in the world
11th largest passenger car in the world and is expected to be the 7th largest market
by 2016
The industry has emerged as a key contributor to the Indian
Economy
The automobile industry in India is the ninth largest in the world with an annual
production of over 2.3 million units in 2009.
In 2010, India emerged as Asia's fourth largest exporter of automobiles, behind
Japan, South Korea and Thailand.
Following economic liberalization in India in 1991, the Indian automotive industry
has demonstrated sustained growth as a result of increased competitiveness and
relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors,
Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and
international operations. India's robust economic growth led to the further
expansion of its domestic automobile market which attracted significant India-
specific investment by multinational automobile manufacturers.In February 2009,
monthly sales of passenger cars in India exceeded 100,000 units.

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Indian automobile industry has grown leaps and bounds since 1898, a time when a
car had touched the Indian streets for the first time. At present it holds a promising
tenth position in the entire world with being # 2 in two wheelers and # 4 in
commercial vehicles. Withstanding a growth rate of 18% per annum and an annual
production of more than 2 million units, it may not be an exaggeration to say that
this industry in the coming years will soon touch a figure of 10 million units per
year.

Reasons of Growth

Economic liberalization, increase in per capita income, various tax relief policies,
easy accessibility of finance, launch of new models and exciting discount offers
made by dealers all together have resulted in to a stupendous growth of India
automobile industry.

Market Share

The industry produced a total 14.25 million vehicles including PVs, commercial
vehicles (CVs), three wheelers (3W) and 2W in AprilOctober 2015, as against
13.83 in AprilOctober 2014, registering a marginal growth of 3.07 per cent, year-
to-year.

The sales of PVs grew by 8.51 per cent in AprilOctober 2015 over the same
period in the previous year. The overall CVs segment registered a growth of 8.02
per cent in AprilOctober 2015 as compared to same period last year. Medium and
Heavy Commercial Vehicles (M&HCVs) registered very strong growth of 32.3 per

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cent while sales of Light Commercial Vehicles (LCVs) declined by 5.24 per cent
during AprilOctober 2015, year-to-year.

In AprilOctober 2015, overall automobile exports grew by 5.78 per cent. PVs,
CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per
cent and 3.22 per cent, respectively, in AprilOctober 2015 over AprilOctober
2014

Automobile industry of India can be broadly classified under passenger vehicles,

commercial vehicles, three wheelers and two wheelers, with two wheelers having a
maximum market share of more than 75%. Automobile companies of India, Korea,
Europe and Japan have a significant hold on the Indian market share. Tata Motors
produces maximum numbers of mid and large size commercial vehicles, holding
more that 60% of the market share. Passenger vehicle section is majorly ruled by
the car manufacturers capturing over 82% of the total market share. Maruti since
long has been the biggest car manufacturer and holds more that 50% of the entire
market.
Global recession has impacted, the Indian automobile industry also and can be seen
clearly in the sales figures of the last financial year.

Even then this industry has high hopes in 2009-2010, as banks have reduced loan
interest rates and the major chuck of automobile customers belong to the middle
income group who are becoming economically stronger with every passing day.

Car Manufacturers
Two Wheelers Manufacturers
Car Insurance
Car Finance
Car Accessories

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 VEHICLE MANUFACTURESR IN INDIA

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 HISTORY OF AUTOMOBILE INDUSTRY IN INDIA

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports
only, and in small numbers.

An embryonic automotive industry emerged in India in the 1940s. Hindustan

Motors was launched in 1942, long-time competitor Premier in 1944,
building Chrysler, Dodge, and Fiat products respectively.[4] Mahindra &
Mahindra was established by two brothers in 1945, and began assembly of Jeep
CJ-3A utility vehicles. Following independence in 1947, the Government of India
and the private sector launched efforts to create an automotive-component
manufacturing industry to supply to the automobile industry. In 1953, an import
substitution programme was launched, and the import of fully built-up cars began
to be restricted.[4]

1947-1970

The 1949 Hindustan 10 built by Hindustan Motors under license from Morris
Motors, UK

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The Hindustan Ambassadordominated India's automotive market from the 1960s
until the mid-1980s and was manufactured till 2014

Fiat 1100D, built under license by Premier Automobiles later re-christened

'Premier Padmini' was the Ambassador's only true competitor

The 1952 Tariff Commission

In 1952, the government appointed the first Tariff Commission, one of whose
purposes was to come out with a feasibility plan for the indigenization of the

Indian automobile industry. In 1953, the commission submitted their report, which
recommended categorizing existing Indian car companies according to their
manufacturing infrastructure, with licensed capacity to manufacture a certain
number of vehicles, with capacity increases allowable, as per demands, in the
future. The Tariff Commission recommendations were implemented with new
policies that would eventually exclude companies that only imported parts for
assembly, as well as those with no Indian partner. In 1954, following the Tariff
Commission implementation, General Motors, Ford, and Rootes Group, which had
assembly-only plants in Mumbai, decided to move out of India.[5]

The Tariff commission policies, including similar restrictions that applied to other
industries, came to be known as the "license raj", which proved to be the greatest
undoing of the Indian automotive industry, where bureaucratic red tape ended up

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causing demand to outstrip supply, with month-long waiting periods for cars,
scooters, and motorcycles.

Passenger Cars

Hindustan Motors, Calcutta - technical collaboration with Morris Motors to

manufacture Morris Oxford models that would later become HM Ambassador.
Premier Automobiles, Bombay - technical collaboration with Chrysler to
manufacture Dodge, Plymouth and Desoto models and with Fiatto manufacture
the 1100D models which would later with Premier Padmini range.
Standard Motor Products of India, Madras - technical collaboration
from Standard-Triumph to manufacture Standard Vanguard, Standard 8, 10 and
later Standard Herald.

Utility and Light Commercial Vehicles

Vehicle Factory Jabalpur - started manufacturing Jonga Light Utility Vehicles

and Vahan 1 Ton (Nissan 4W73 Carriers) in India, under license
from Nissan of Japan. They were the main troop carriers of the Indian Armed
Forces and much powerful than any other vehicle of their class.
Mahindra & Mahindra, Bombay - technical collaboration with Willys to
manufacture CJ Series Jeep.
Bajaj Tempo, Poona now Force Motors - technical collaboration with Tempo
(company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking
and Hanomag, later known as Tempo Matador in India.
Standard Motor Products of India - technical collaboration from Standard has
licence to manufacture the Standard Atlas passenger van with panel van and
one-tonne one tonne pickup variants.

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Medium and Heavy Commercial Vehicles

Vehicle Factory Jabalpur - started manufacturing Shaktiman trucks with

technical assistance from MAN SE of Germany. The trucks were the main
logistics vehicle of the Indian Army with several specialist variants. VFJ still is
the sole supplier of B vehicles to the Indian Armed Forces.
Heavy Vehicles Factory - was established in 1965 in Avadi, near Chennai to
produce tanks in India. Since its inception, HVF has produced all the tanks of
India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for
the Indian Army. HVF is the only tank manufacturing facility of India.
Tata Motors, Poona, then known as TELCO - technical collaboration
with Mercedes Benz to manufacture medium to heavy commercial vehicles
both Bus and Trucks.
Ashok Motors, later Ashok Leyland, Madras - technical collaboration
with Leyland Motors to manufacture medium to heavy commercial vehicles
both Bus and Trucks. Ashok Motors also discontinued its Austin venture
formed in 1948 to sell Austin A40 and retooled the factory to make trucks and
buses.
Hindustan Motors - technical collaboration with General Motors to
manufacture the Bedford range of medium lorry and bus chassis.
Premier Automobiles - technical collaboration with Chrysler to manufacture
the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
Simpsons & Co, Madras - part of Amalgamations Group (TAFE Tractors)-
technical collaboration with Ford to manufacture medium lorry and bus chassis,
but did not utilise that option until the 1980s.

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Scooters, Mopeds and Motorcycles

The Vespa 150 Sprint

known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world

Many of the two-wheelers manufacturers were granted licenses in the early

1960s, well after the tariff commission was enabled.
Royal Enfield (India), Madras - technical collaboration with Royal Enfield, UK
to manufacture the Enfield Bullet range of motorcycles.
Bajaj Auto, Poona - technical collaboration with Piaggio, Italy to manufacture
their best selling Vespa range of scooters and three wheelers with commercial
option as well.
Automobile Products of India, Bombay (Better known for API Lambretta -
technical collaboration with Innocenti of Milan, Italy to manufacture
their Lambretta range of mopeds, scooters and three-wheelers. This company
was actually the Rootes Group car plant that was bought over by M. A.
Chidambaram family.
Mopeds India Limited, Tirupathi - technical collaboration with Motobcane,
France to manufacture their best selling Mobylette mopeds.
Escorts Group, New Delhi - technical collaboration with CEKOP of Poland to
manufacture the Rajdoot 175 motorcycle whose origin was DKW RT 125

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 Ideal Jawa, Mysore - in technical collaboration with CZ - Jawa of
Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to 1983

However, growth was relatively slow in the 1950s and 1960s, due to
nationalisation and the license raj, hampered the growth of Indian private sector.

The beginning of the 1970s saw some growth potential and most of the
collaboration license agreements came to an end but with option to continue
manufacturing with renewed branding. Cars were still meant for the elite and Jeeps
were largely used by government organizations and some rural belts. In
commercial vehicle segments some developments were made by the end of the
decade to cater improved goods movements. The two-wheeler segment remained
unchanged except for to increased sales in urban among middle class. But more
fillip was target towards farm tractors as India was embarking on a new Green
Revolution. More Russian and eastern bloc imports were done to increase the
demand.

But after 1970, with restrictions on the import of vehicles set, the automotive
industry started to grow; but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price
controls were finally lifted, inserting a competitive element into the automobile
market.[6] However, by the 1980s, the automobile market was still dominated
by Hindustan and Premier, who sold superannuated products in fairly limited
numbers.[7] During the eighties, a few competitors began to arrive on the scene.

The OPEC oil crisis saw increase need to installing or redesign some vehicle to fit
diesel engines on medium commercial vehicle. Until the early 1970s Mahindra
Jeeps were on Petrol and Premier commercial vehicles had Petrol model options.
The Defence sector too had most trucks on Pertol engines.

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1984 to 1992

First generation Maruti 800 launched in 1984

From the end of the 1970s to the beginning of the 1980s saw no new models but
the country continued with 2 decade old designs forcing government to encourage
and let more manufacturers into fray.

In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance
Factory Medak, near Hyderabad. It started manufacturing Infantry Combat
Vehicles christened as Sarath, the backbone of India's mechanised infantry. OFMK
is still the only manufacturing facility of ICVs in India. To manufacture the high-
power engines used in ICVs and main battle tanks, Engine Factory Avadi,
near Chennai was set in 1987. In 1986, to promote the auto industry, the
government established the Delhi Auto Expo. The 1986 Expo was a showcase for
how the Indian automotive industry was absorbing new technologies, promoting
indigenous research and development, and adapting these technologies for the
rugged conditions of India. The nine-day show was attended by then Prime
Minister Rajiv Gandhi.

Maruti Suzuki Swift Dzire and its hatchback version are the largest selling cars in
recent years in India

Eventually multinational automakers, such as, Suzuki and Toyota of Japan

and Hyundai of South Korea, were allowed to invest in the Indian market,

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furthering the establishment of an automotive industry in India. Maruti Suzuki was
the first, and the most successful of these new entries, and in part the result of
government policies to promote the automotive industry beginning in the
1980s.[7] As India began to liberalise its automobile market in 1991, a number of
foreign firms also initiated joint ventures with existing Indian companies. The
variety of options available to the consumer began to multiply in the nineties,
whereas before there had usually only been one option in each price class. By
2000, there were 12 large automotive companies in the Indian market, most of
them offshoots of global companies.[8]

Slow export growth

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets
and neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480
cars to Europe (Hungary). After some growth in the mid-nineties, exports once
again began to drop as the outmoded platforms provided to Indian manufacturers
by multinationals were not competitive.[9] This was not to last, and today India
manufactures low-priced cars for markets across the globe. As of 18 March 2013,
global brands such as Proton Holdings, PSA
Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving
plans for India due to the competitiveness of the market, as well as the global
economic crisis.[10]

Emission norms

In 2000, in line with international standards to reduce vehicular pollution, the

central government unveiled standards titled "India 2000", with later, upgraded
guidelines to be known as Bharat Stage emission standards. These standards are
quite similar to the stringent European emission standards and have been
implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so

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far, was implemented first, in April 2010, in 13 cities
Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pu
ne, Surat, Kanpur, Lucknow, Solapur, and Agraand then, as of April 2017, the
rest of the nation.

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 AUTOMOTIVE INDUSTRY IN INDIA CURRENTLY

The automotive industry in India is one of the largest in the world with an annual
production of 23.96 million vehicles in FY (fiscal year) 201516, following a
growth of 2.57 per cent over the last year. The automobile industry accounts for
7.1 per cent of the country's gross domestic product (GDP). The Two Wheelers
segment, with 81 per cent market share, is the leader of the Indian Automobile
market, owing to a growing middle class and a young population. Moreover, the
growing interest of companies in exploring the rural markets further aided the
growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent
market share.

India is also a prominent auto exporter and has strong export growth expectations
for the near future. In FY 201415, automobile exports grew by 15 per cent over
the last year. In addition, several initiatives by the Government of India and the
major automobile players in the Indian market are expected to make India a leader
in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.[

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 INVESTMENT

In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few months.
The industry has attracted foreign direct investment (FDI) worth US$13.48 billion
during the period April 2000 to June 2015, according to data released by
Department of Industrial Policy and Promotion (DIPP).

Some of the major investments and developments in the automobile sector in India
are as follows:

Global auto maker Ford plans to manufacture in India two families of engines
by 2017, a 2.2 litre diesel engine code-named Panther, and a 1.2 litre petrol
engine code-named Dragon, which are expected to power 270,000 Ford
vehicles globally.
The world's largest air bag suppliers Autoliv Inc, Takata Corp, TRW
Automotive Inc and Toyoda Gosei Co are setting up plants and increasing
capacity in India.
General Motors plans to invest US$1 billion in India by 2020, mainly to
increase the capacity at the Talegaon plant in Maharashtra from 130,000 units a
year to 220,000 by 2025.
US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525
million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
Mercedes Benz has decided to manufacture the GLA entry SUV in India. The
company has doubled its India assembly capacity to 20,000 units per annum.

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 Germany-based luxury car maker Bayerische Motoren Werke AG's (BMW)
local unit has announced to procure components from seven India-based auto
parts makers.
Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in
France-based Peugeot Motorcycles (PMTC)

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 GOVERNMENT INITIATIVE

The Government of India encourages foreign investment in the automobile sector

and allows 100 per cent FDI under the automatic route.

Some of the major initiatives taken by the Government of India are:

The Government of India aims to make automobile manufacturing the main

driver of "Make in India" initiative, as it expects the passenger vehicles market
to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan
(AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced plans to
provide credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is
expected to boost sales in the tractors segment.
The government plans to promote eco-friendly cars in the countryi.e. CNG-
based vehicles, hybrid vehicles, and electric vehiclesand also to make
mandatory 5 per cent ethanol blending in petrol.
The government has formulated a Scheme for Faster Adoption and
Manufacturing of Electric and Hybrid Vehicles in India, under the National
Electric Mobility Mission 2020, to encourage the progressive introduction of
reliable, affordable, and efficient electric and hybrid vehicles into the country.
The Automobile Mission Plan (AMP) for the period 20062016, designed by
the government is aimed at accelerating and sustaining growth in this sector.
Also, the well-established Regulatory Framework under the Ministry of
Shipping, Road Transport and Highways, plays a part in providing a boost to
this sector

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 MAIN AUTOMOBILES COMPETITORS IN INDIA

Mahindra & Mahindra Limited

Mahindra & Mahindra Limited is part of the Mahindra Group, an automotive,

farm equipment, financial services, trade and logistics, automotive components,
after-market, IT and infrastructure conglomerate The company was set up in 1945
as Mahindra & Mohammed. Later, after the partition of India, Ghulam
Muhammad returned to Pakistan and became that nation's first finance minister.
Hence, the name was changed from Mahindra & Mohammed to Mahindra &
Mahindra in 1948.

Initially set up to manufacture general-purpose utility vehicles, Mahindra &

Mahindra (M&M) was first known for assembly under licence of the iconic Willys
Jeep in India. The company later branched out into manufacture of light
commercial vehicles (LCVs) and agricultural tractors, rapidly growing from being a
manufacturer of army vehicles and tractors to an automobile major with a
growing global market. At present, M&M is the leader in the utility vehicle (UV)
segment in India with its flagship UV, the Scorpio (known as the Mahindra Goa in
Italy).

M&M is India's largest SUV maker.

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Business

Mahindra & Mahindra grew from being a maker of army vehicles to a major
automobile and tractor manufacturer. It has acquired plants in China and the
United Kingdom, and has three assembly plants in the USA. M&M has
partnerships with international companies like Renault SA, France and
International Truck and Engine Corporation, USA.

M&M has a global presence and its products are exported to several countries. Its
global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc.,
Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.

M&M is one of the leading tractor brands in the world. It is also the largest
manufacturer of tractors in India with sustained market leadership of over 25
years. It designs, develops, manufactures and markets tractors as well as farm
implements. Mahindra Tractors(China) Co. Ltd. manufactures tractors for the
growing Chinese market and is a hub for tractor exports to the USA and other
nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products
for the American market.

M&M made its entry into the passenger car segment with the Logan in April 2007
under the Mahindra Renault joint venture. M&M will make its maiden entry into
the heavy trucks segment with Mahndra Navistar, the joint venture with
International Truck, USA.

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M&M's automotive division makes a wide range of vehicles including MUVs, LCVs
and three wheelers. It offers over 20 models including new generation multi-
utility vehicles like the Scorpio and the Bolero.

At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing
an aggressive product expansion program that would see the launch of several
new platforms and vehicles over the next three years, including an entry-level
SUV designed to seat five passengers and powered by a small turbodiesel engine.
True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January
2009, and as of June 2009, the Xylo has sold over 15000 models.

Also in early 2008, Mahindra commenced its first overseas CKD operations with
the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian
Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles
assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and
double cab pick-up body styles as well as SUVs.

The US based Reputation Institute recently ranked Mahindra among the top 10
Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.

Mahindra is currently gearing up to sell the Scorpio SUV and pickup starting in the
Fall of 2009 in North America, through an independent distributor, Global
Vehicles USA, based in Alpharetta, Georgia. Mahindrahas announced it will import
pickup trucks from India in knockdown kit (CKD) form to circumvent the Chicken
tax. CKDs are complete vehicles that will be assembled in the U.S. from kits of
parts shipped in crates

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Product

Mahindra Bolero
Mahindra Bolero Camper
Mahindra Bolero Inspira
Mahindra Bolero Stinger Concept
Mahindra Scorpio
Mahindra Scorpio Getaway
Mahindra Scorpio First
Mahindra Xylo
Mahindra Legend
Mahindra MM550 XD

Mahindra Axe
Mahindra Major
Mahindra Souvenir Concept
Mahindra Commander
Mahindra Grand Vitara
Mahindra DI
Mahindra Cab Chassis

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Tata Motors

Tata Motors Limited (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM),

Tata Sons purchased the Tatanagar shops from the Government of India on 1st
June 1945 for Rs. 25.39 lakhs with the aim of immediately manufacturing steam
locomotive boilers. Later it planned to manufacture complete locomotives and
other engineering products. Tata Motors Ltd was incorporated in the year of 1945.
In world charisma the Tata Motors Ltd (Formerly known as Tata Engineering and
Locomotive Company Ltd) is the fifth-largest manufacturer of medium and heavy
commercial vehicle and the second largest medium and heavy bus manufacturer.
The company producing light, medium and heavy commercial vehicles and also
manufacturing passenger cars, utility vehicles, excavators and machine tools in

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manufacturing units located at Jamshedpur, Pune, Lucknow and Pant Nagar in
Uttarakhand. 1946 Tata Engineering was undertaken manufacture of 5000 'KC'
broad gauge open wagons for the Indian Railway. The Managing Agency Tata
Sons was transferred to Tata Industries on 1st July 1946. In the year 1948 the
company made a collaboration with Marshal Sons (UK) and introduced Steam
Road Roller and in 1950 Collaboration signed with M/s Krauss-Maffei, West
Germany for manufacture of steam locomotives. Collaboration with M/s Daimler-
Benz AG, West Germany was made in the year 1954 for the manufacture of
medium commercial vehicles at Jamshedpur.
In 1966 the company acquired Investa Machine Tool for setting up of Machine
Tools Division at Pune and in the next year it was executed, vehicle manufacture
facilities steadily built up at Pune.
As on 1977 the first commercial vehicle was successfully produced at Pune.
In 1985 First hydraulic excavator produced under Hitachi collaboration.
The First Light Commercial Vehicle - TATA 407 was produced by complete
indigenous design with minimal import content in the year 1986 followed by next
year Second model of completely indigenously designed LCV-TATA 608
produced and LPT 2416 a multi-axled vehicle introduced.
The company came to joint venture with Cummins Engineering Company and
incorporated Tata Cummins Private Limited in Jamshedpur, Bihar, on 0ctober 20,
1993 to manufacture high horse power and emission-friendly diesel engines for
medium and heavy commercial vehicles.
Tata Motors was adjudged the 'Commercial Vehicle Manufacturer of the Year for
2005' by Auto Monitor. The Mini-truck, Ace of Tata received the BBC-Top Gear
'Best Commercial Vehicle Design' award, the company received 'JRD QV' award

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for business excellence and the passenger car business unit received 'Active
Promotion' award during the year 2005-06
. Tata Motors chosen as India's 'Most Trusted Brand in Cars' in the Reader's
Digest-AC Nielsen consumer survey.
Tata Motors has been conferred with the Golden Peacock Global award for CSR in
'Large Business' category by the Institute of Directors, the International body of
company directors.
Tata Motors was awarded the sustainability award for 2006 from CII-ITC Centre
of Excellence for significant achievement on the journey towards Sustainable
Development. The company bagged the 'Bombay Natural History Society
(BNHS)- Green Governance Award- 2006' in the ' Conservation and Restoration of
Habitat' category, other than these company also got lot of credits from various
reputation.
Indian Space Research Organisation (ISRO) and Tata Motors are working to
develop a prototype of the hydrogen-powered automobile under in agreement for a
pilot project. As on December 2007 Tata launched seven medium and heavy trucks
in Pune, the company plans to launch 30 new models in the commercial vehicle
segment.

Joint venture between Fiat Group Automobiles SpA and Tata Motors, has rolled
out plans for expanding production capacity and backward integration in Pune with
an additional investment of Rs 2,341 crore comes under memorandum of
understanding in March 2008 and also Tata Motors has entered into a definitive
agreement with the Ford Motor Company for the purchase of Jaguar Land Rover,
comprising brands, plants and intellectual property rights.

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As on April 2008, the first test a small car namely 'Nanos' roll out from
Uttarakhand plant. The trail production of Nano will start in June-July from
Singur, West Bengal after the equipment test and commercial production of the
same will start around October.
Tata Motors is working on technology that will allow its diesel generators to also
use natural gas and in process of entering into a technology tie-up with the New
Energy & Industrial Technology Development Organisation (NEDO), a Japanese
Gvt agency. To convert its generator to ' Dual-Fuel System'. The company
concentrate on various initiatives which focused on cost reduction, right sizing the
organisation, volume / market share gains, product quality and the launch of new
products have enabled the company a turnaround one in the globe.

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Expansion
After years of dominating the commercial vehicle market in India, Tata Motors
entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi
utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station
wagon design based on the earlier 'Tata Mobile' (1989), a light commercial
vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility
vehicle).
Tata launched the Indica in 1998, the first fully indigenous passenger car of India.
Though the car was initially panned by auto-analysts, the car's excellent fuel
economy, powerful engine and aggressive marketing strategy made it one of the
best selling cars in the history of the Indian automobile industry.
A newer version of the car, named Indica V2, was a major improvement over the
previous version and quickly became a mass-favourite. A badge
engineered version of the car was sold in the United Kingdom as the Rover
CityRover. Tata Motors also successfully exported large quantities of the car to
South Africa.The success of Indica in many ways marked the rise of Tata Motors.

Deepti Dixit MBA PRev GNKITMTC

Important developments

Tata Nano
January 2008, Tata Motors launched Tata Nano, the least expensive production
car in the world at about Rs. 1,00,000 (US $2,500). The supermini car was
unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi

Tata has faced controversy over developing the Nano as some environmentalists
are concerned that the launch of such a low-priced car could lead tomass
motorization in India with adverse effects on pollution and global warming. Tata
has set up a factory in Sanand, Gujarat and the first Nanos are to roll out summer
2009.

Tata Nano Europa has been developed for sale in developed economies and is to
hit markets in 2010 while the normal Nano should hit markets in South Africa,
Kenya and countries in Asia and Africa by late 2009. A battery version is also
planned. Nano has put Tata on the world automobile map

PRODUCTS OF TATA MOTORS

Military Trucks Commercial vehicles

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 Tata Sierra (Discontinued) Tata Ace
Tata TL/Telcoline/207 DI
Tata Estate (Discontinued) Pickup Truck
Tata Sumo/Spacio Tata 407 Ex and Ex2
Tata Safari Tata 709 Ex
Tata Indica Tata 809 Ex and Ex2
Tata Indigo Tata 909 Ex and Ex2
Tata Indigo Marina Tata 1109 (Intermediate truck)
Tata Winger Tata 1510/1512 (Medium bus)
Tata Magic Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium
Tata Nano truck)
Tata 2515/2516 (Medium
Tata Xenon XT truck)
Tata Xover (2009) Tata Starbus (Medium Bus)
Tata Globus (Low Floor Bus)
Concept vehicles Military vehicles

Tata LSV (Light Specialist

2000 Aria Roadster Vehicle)
2001 Aria Coupe Tata 2 Stretcher Ambulance
2002 Tata Indiva
2004 Tata Indigo Advent Tata LPTA 713 TC (4x4)
2005 Tata Xover Tata LPT 709 E
2006 Tata Cliffrider Tata SD 1015 TC (4x4)

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 2007 Tata Elegante Tata LPTA 1615 TC (4x4)
2009 Tata Prima Tata LPTA 1621 TC (6x6)
Tata LPTA 1615 TC (4x2)
Tata Winger Passenger Mini
Bus

MARUTI SUZUKI

Maruti Suzuki India Limited ( ) is a publicly listed

automaker in India. It is a leading four-wheeler automobile manufacturer in South

Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It
was the first company in India to mass-produce and sell more than a million cars. It
is largely credited for having brought in an automobile revolution to India. It is the
market leader in India and on 17 September 2007, Maruti Udyog was renamed
Maruti Suzuki India Limited. The company headquarter is in gurgaon
Maruti Udyog Limited was established as a government company in February
1981 with following objectives:
Modernization of Indian Automobile Industry
Production of fuel efficient vehicles to conserve scarce resources
Production of large number of motor vehicles which was necessary for
economic growth.

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On 14th December 1983, on what would have been the 37th birthday of Sanjay
Gandhi, the first Maruti 800 rolled out of the factory in Gurgaon, Haryana. It has
been about fifteen years since then and Maruti Udyog Limited had continued the
idea that created it. By trying to make vehicles that the consumers require by
offering them what had only been privilege of the few who could afford imported
cars. A car even a middle-aged sub- urban housewife could drive easily and still
outperform any other Indian car built till then. More models followed. MUL in its
own small way created history and helped bring change to India.

Maruti Suzuki is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue
earned. Until recently, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan. The Indian government held an initial
public offering of 25% of the company in June 2003. As Maruti Suzuki India
Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of
the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and

Manesar south of New Delhi. Marutis Gurgaon facility has an installed
capacity of 350,000 units per annum. The Manesar facilities, launched in
February 2007 comprise a vehicle assembly plant with a capacity of 100,000
units per year and a Diesel Engine plant with an annual capacity of 100,000
engines and transmissions. Manesar and Gurgaon facilities have a
combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of

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 Maruti. The rest is owned by the public and financial institutions. It is listed
on the Bombay Stock Exchange and National Stock Exchange in India.

Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto,

Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and
Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar,
Grand Vitara is imported from Japan as a completely built unit (CBU),
remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzukis technical superiority lies in its ability to
pack power and performance into a compact, lightweight engine that is clean and
fuel efficient.

Maruti is clearly an employer of choice for automotive engineers and young

managers from across the country. Nearly 75,000 people are employed directly by
Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been
rated (by customers)first in customer satisfaction among all car makers in India
for ten years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner
to make a people's car for middle class India.

Over the years, the product range has widened, ownership has changed hands
and the customer has evolved. What remains unchanged, then and now, is
Marutis mission to motorise India.

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Pressure started mounting on Indira and Sanjay Gandhi to share the details of the
progress on the Maruti Project. Since country's resources were made available by
mother to her son's pet project. A delegation of Indian technocrats was assigned
to hunt a collaborator for the project. Suzuki Motor Corporation was at that time
a small player in the four wheeler automobile sector and had major share in the
two wheeler segment. Suzuki's bid was considered negligible.

In the initial rounds of discussion the giants had their bosses present and in the
later rounds related to the technical discussions executives of these automobile
giants were present. Osamu Suzuki, Chairman and CEO of the company ensured
that he was present in all the rounds of discussion. Osamu in an article writes that
it subtly massaged their (Indian delegation) egos and also convinced them about
the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to ensure the
government about its sincerity on the project. Suzuki in return received a lot of
help from the government in such matters as import clearances for
manufacturing equipment (against the wishes of the Indian machine tool industry
then and its own socialistic ideology), land purchase at government prices for
setting up the factory Gurgaon and reduced or removal of excise tariffs. This
helped Suzuki conscientiously nurse Maruti through its infancy to become one of
its flagship ventures.

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PRODUCTs of MARUTI SUZUKI

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