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Submitted By NEHA TAUFIQ SHAIKH ROLL NO- 237
Submitted to Smt. K. G. Mittal College of Arts & Commerce, Malad (W). Mumbai.
I would like to sincerely thank University of Mumbai for giving me the opportunity for taking up such a challenging project which has enhanced my knowledge about “TATA AUTOMOBILES”.
My deep gratitude goes out to my project report guide Dr. Ms. Navnita Meghnani for giving me direction and guidance, without whose help preparing this project would have been very difficult.
Also thanking a very special way our librarian for his timely and unconditional help in providing us with the required books and other materials with ease.
Last but not least, thanking H.O.D. Prof. N.N. Singhi for his support.
I NEHA TAUFIQ SHAIKH of MARWARI VIDYALAY SANCHALIT SMT. K.G. MITTAL COLLEGE OF ARTS & COMMERCE, MALAD (W) of T.Y.B.Com. HEREBY DECLARE THAT I HAVE COMPLETED THIS PROJECT ON “TATA AUTOMOBILES” DURING THE
ACADEMIC YEAR 2010-2011. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.
DATE: STUDENT PLACE: MUMBAI
I MS. NAVNITA MEGHNANI, HEREBY CERTIFY THAT NEHA TAUFIQ SHAIKH SMT. OF MARWARI MITTAL MALAD
(WEST) OF T,Y.B.COM HEREBY CERTIFY THAT HE HAS COMPLETED THIS PROJECT ON. “TATA
AUTOMOBILES” DURING THE ACADEMIC YEAR 2010-2011 THE INFORMATION SUBMITED IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.
SIGNATURE OF TEACHER GUIDE
SIGNATURE OF THE H.O.D. OF COMMERCE
CONTENT SR. NO. TITLE 1 Introduction 2 3 4 5 6 7 8 objectives Functions Policies PAGE NO 1 3 5 9 .
Tata Motors now ranks second in India’s passenger vehicle market. India’s first indigenous light commercial vehicle. It was the first Indian automobile company to list on the New York Stock Exchange. and the Nano.INTRODUCTION Tata group Established under the parent company in 1945. the world’s least expensive car. India’s first sports utility vehicle. This partnership has led Tata Motors to not only become India’s largest automobile company but also India’s largest commercial vehicle manufacturer. Tata Indica. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. India’s first indigenously manufactured passenger car. Tata Safari. Tata Motors Limited has become India’s largest automobile company. Tata has enjoyed the prestige of having developed Tata Ace. . the world’s top five manufactures of medium and heavy trucks and the world’s second largest medium and heavy bus manufacturer. Having just entered the passenger vehicles market segment in 1991.
. Mahindra & Mahindra. Fiat India Private Ltd. Maruti Udyog. The automobile industry comprises of heavy vehicles (trucks. Indian automobile industry has come a long way since the first car ran on the streets of Bombay in 1898. Directly and indirectly it employs more than 10 million people and if we add the number of people employed in auto component and auto ancillary industry then the nos..AUTOMOBILE IN INDIA (2) Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to carry on the momentum in the foreseeable future. Tata Motors etc.. automobile sector in India is one of the key sectors of the economy in terms of the employment. Eicher Motors. Today. Heavy vehicles section is dominated by tataTelco. and Bajaj. Ashok Leyland. & two-wheelers. General Motors India Pvt. Toyota Motors... Hyundai Motors India Ltd. and Skoda India Private Ltd. passenger cars. buses. tractors). Ltd. The major car manufacturers in India are Hindustan Motors. Ford India Ltd. goes even higher. tempos. Honda Siel General Motors Cars India Ltd. The dominant .
Indian automobile industry has matured In last few year offers differentiated products for different Segment of the society. Today. India is on every Major global automobile player's radar.. Ford and Mitsubishi have set up their manufacturing bases in India. Toyota.) Ltd. Honda.players in the two-wheeler sector are Hero Honda. . TVS Honda Motorcycle & Scooter India (Pvt. GM. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon. Indian automobile Industry is also fast becoming an outsourcing hub for autoMobile companies worldwide. It is currently making inroads into the Rural middle class market after its inroads into the urban Market and rural rich. as indicated by the zooming automobile exports from the country. In the recent years Indian automobile Sector has witnessed a slew of investments. Yamaha etc. Hyundai. Bajaj.
• Expected to become the world's third largest auto- • mobile market by 2030. behind only China & US. . • 11th largest passenger car market in the world. • Fourth largest commercial vehicle market in the world.FEATURE’s OF AUTOMOBILE (3) • Second largest two-wheeler market in the world.
Tata hispano has develop a new intercity coach the xerus and a new suburban bus .RESEARCH AND DEVELOPMENT (4) Tata Motors invests up to 1. the Intea and is working on developing a range of other buses.3 per cent of its annual turnover on research and development. the company has develop significant product profile rich and market expectation. The new range of buses have launch. The company has been implementing several environmentally sensitive technologies in manufacturing processes. PRODUCT DEVELOPMENT: Tata motors group continuously assesses customer need to develop new and innovative product which deliver better value to its customer. It has set up two in-house engineering research centers. TDC received the grand prize of 2009 Good design. . and uses some of the world's most advanced equipment for emission checking and control. In pursuance of its strategy. including India's only certified crash-test facility.
Increase thrust have being made to explore opportunities for launch of the tata indica vista had the indigo manza in various international market. iris and the motor truck. to suit specific need of the domestic and international market are being developed. The ace EX and the super ace have been launched and the company will introduce the multipurpose vehicle.In small commercial vehicles. the beginning of its response to environ-mental and C02 challenges with more compact and efficient vehicle. In july 2009 jaguar land rover launched to the world . venture. The new XJ launched early 2010-2011. feature’s the next generation jaguar aerospace inspired aluminium body IMPORTANT DEVELOPMENT: . Variant of the Nano. the ace platform is being exploited to introduce variants to address various market segment.
New Delhi. Tata Motors launched Tata Nano. 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. Gujarat and the first Nanos are to roll out summer 2009.Tata Nano: In January 2008.000 (US $3000). The city car was unveiled during the Auto expo 2008 exhibition in Pragati Maidan. Tata has faced controversy over developing the nano as some environmentalists are concerned that the launch of such a low priced car could lead to tata momoterization in India with adverse effects on pollution and global warming. Tata Ace: Tata Ace was India's first mini truck Tata Ace. India's first indigenously developed sub-one ton . A battery version is also planned. 120. the least expensive production car in the world at about Rs. Tata has set up a factory in Sanand. Kenya and countries in Asia and Africa by late 2009.
537 units due to the rising demand for Ace. In 2007. The Ace was built with a load body produced by Autoline Industries By 2005.mini-truck. In 2008 MDI planned to also . named One CAT. Compressed air car: Tata One CAT Motor development international of france has developed the world's first proto type of a compressed air car. was launched in May 2005. By October 2005. Autoline was producing 300 load bodies per day for Tata Motors. LCV sales of Tata Motors had grown by 36. It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. Tata Ace Apka Pyaara Chota Hathi. MDI owner Guy Negre was reported to have "the backing of Tata". Ace is still a top seller for TML with 5M units sold to date (June 2010).6 percent to 28.
With full tanks it is said to run at for range in urban cycle. TATA MOTORS LAUNCH NEW PRODUCT (9) . There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town. In December 2009 Tata's vice president of engineering systems confirmed that the limited range and low engine temperatures were causing difficulties. There are severe physical arguments pleading against those figures. OneCAT is a five seat vehicle with a trunk. but "the compressed air driving the pistons can be boosted by a fuel burner". which would fill the tanks in 3 minutes.design a gas station compressor.
799 vehicle in july 2010 as against 48.054 vehicle in the like period of 2009.599 unit solding the same time last year. .558 unit which includes both passenger and commercial vehicles a against the 45. two new passenger vehicle and a new range of heavy trucks.9 million unit in the fiscal year ending march Tata motors posted a 41 percent growth selling 67. tata motors chairman Ratan tata said. the company plan to launch a new cross-over vehicle. In the domestic market . China has emerged as the third-largest global market for land range rover and studies are underway to consider options increase market penetration in china. this include the company export project.5 percent to 1. In India total passenger car sales increased 24. In India. it logged a 39 per cent growth at 63. India and other marketing development.Multi-national tata motors is planning to introduce a new fuel efficient car and hybrid vehicle in emerging market and looking at way to raise sales of luxury brands jaguar and land rover in china and in India.
RESULT AND PROFITS (7) . “tata motor whose products include the worlds cheapest car.also announced that its holding firm tata sons director R. Nano had brought the Britain –based jaguar and land rover brands from ford in 2008. Gopalkrishna. will be stepping down from the board. China demand for cars has fuelled a rise in bottom lines of many a car maker. and vice chairman in tata chemical .The company also plan to revamp its entire range rover portfolio and promises “the new range rover ‘EVAQUE’ will have to be bold design evolution in sports utility vehicle (SUVs). among other important positions. Gopal Krishna was a director in group of companies like tata motors and tata power and also held the post of chairmanin tata auto comp system. the company in the annual report . as sales grew almost 48 percent in 2009. it include the company export project.
economies across the world (with a few expectation) showed signs of recovery and growth. The company turn-over . the automotive sector in India started the year steadily.7% (6. was Rs 38. gathered momentum in different of the second half of the year and ended the year with a record growth and performance. The profit before tax of Rs 2.240 crores also .After the economic downturn and difficult market condition in the automotive sector globally in 2008-2009. a growth of 34.364 crores .8% in 2008-09).2% in 2009-2010.3% over the previous year. during the year.830 crores and a profit after tax of Rs 2. The volume growth coupled with other action on pricing and cost reduction enabled the company to achieve significant improvement in EBEIDTA margin to 11.in this background and with a strong portfolio coupled with successful launch of new product and variants in commercial vehicle and passenger vehicle. The Indian economy bounced back quickly and strongly growing at 7.
The tata motor.2. FINANCIAL POSITION .1% and 123.3.7% respectively.2.571 crores (loss of Rs.grow significantly over the previous year by 179.129 crores in 2008-09) and consolidated profit for the year was Rs.505 crores in 2008-09).2.523 crores (loss of Rs. Consolidated profit before tax was Rs.567 crores a growth of 29% over previous year contributed mainly by market recovery. improved realization & successful launch of new product. The performance of the company and its subsidiaries is elaborated in the management discussion and analysis report which form a part of this annual report. group turnover was Rs 95.
354.(8) Tata Motors have increased its earnings over the year through their various acquisitions and joint ventures with truck manufacturers in Southeast Asia. from 4. Gross profit in the year 2006 was 1. After a large drop in revenues from 2004 to 2005 when the company first went on public the NYSE(stock prices.1 million in the year 2007. from May 1-22. Tata Motors income statement.160.5 million in 2007.0 in 2007.510.422. 2008 can be found in Appendix C).9 million and increased to 1.6 million to 405.0 million in 2005 to 7. Earnings after taxes also increased significantly between 2006 and 2007 increasing from 336. it has been increasing revenues greatly annually. CURRENT SITUATION . balance sheet and statement of cash flows along with other key stastistics can be found in Appendix D.
and buses. The motor group was established in 1945 as part of the larger Tata Group. tippers. automotive vehicle component manufacturing and supply chain activities.COMPANY OVERVIEW: Tata Motors has diversified in to a range of activities all related to the automobile industry. tractor trailers. the company is involved in engineering and automotive products. machine tools and factory automation products. construction equipment manufacturing. electronic components for automotive and computer applications. and automotive retailing and service operations. They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market. Both product lines of the Tata Motors group have seen . Currently. Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups. trucks. The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. high precision tooling. Through its subsidiaries.
Australia. but much of this has been built upon the more deeply established commercial vehicle product line. which allowed them to manufacture and market pickup trucks in Thailand.success. Tata Motors has expanded their business and market share around the world through a series of acquisition. Tata Motors commercial line has been established for several years in many market segments such as Europe. “We think it makes sense for Tata to expand through acquisition (as it did in tea and steel) than spend a decade to build the business”(Lehman Brothers). In 2004. Africa. & South Asia. The Middle East. This acquisition gave Tata Motors a significant presence in the Korean market. . they acquired Daewoo commercial vehicle Company in South Korea which was South Korea’s second largest truck manufacturer. Southeast Asia. They have also entered into joint ventures with companies such as Thonburi Automotive in 2006.
“Tata paid 2. the largest news being their acquisition of Jaguar and Land Rover from Ford. Tata will give us some space. USA Today).3 billion dollars to Ford for the two brands that cost Ford 5. This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time. managing director of Jaguar). .3 billion” (Carty. Tata. is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business. They want us to run our business. be a premium British car company” (Mike O’ Driscoll.Tata Motors have been making global headlines in the auto industry lately. This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future. like many new business it acquires.
TATA ASSOCIATE COMPANIES AS ON 31. THE COMPANY HAD THE FOLLOWING ASSOCIATE COMPANIES: Tata cumins limited (TCL) in which the company has a 50% share holding. is engaged in the manufacture and sales of high precision tooling and equipment for the computer and electronics industry. 2010. The share holding in TACO is 26%. Tata auto comp system limited (TACO) is holding a company for promoting domestic and foreign joint ventures in auto components and system. ltd. Nita co. in which the company has 49..99% share holding. . MARCH. Tata precision industries pre. Inc. Singapore. Bangladesh in which the company holds 40% equity. is engaged in the assembly of tata vehicle for bangladesh market. USA holding the balance . with cumins engine co.ltd.
ltd (telco) . was incorporation in 1980.in which the co. divested a further 20% stake during the year in favour of Hitachi is engaged in the business of development. manufacture and sale of construction.37% share holding. jointly with EDC limited. Auto-mobile corporation of goa ltd. Consequently is owned 60% by Hitachi and 40% by tata motors. (ACGL) a company in which tata motors ltd has a 42.Telco construction equipment co. .
automobile manufacturer. Areas of business: Tata Motors' product range covers passenger cars. Tata Motors. with an annual turnover of US$ 1. Established in 1945 as the Tata Engineering and Locomotive Company to manufacture locomotives and other engineering products. Seven out of 10 medium and heavy commercial vehicles in India bear the trusted Tata mark. the company Is today among the world's top 10 producers of commercial vehicles. multiutility vehicles and light. is one of the biggest and most prominent companie in the Tata Group. medium and heavy commercial vehicles for goods and passenger transport.PROFILE Tata Motors is India's foremost. and only fully integrated. previously known as Tata Engineering. .8 billion in 2001-02.
Tata Motors. Tata Motors followed this up with the launch in 2002 of the Indigo. the Middle East and Africa. automobile manufacturer. a sedan. standing testimony to the company's research and engineering expertise. Established in 1945 as the Tata Engineering and Locomotive Company to manufacture locomotives and other engineering products. Tata Motors is India's foremost. South East Asia. The company enjoys a significant demand in export markets such as Europe.The Indica V2 — India's first indigenously designed and manufactured passenger car — has been a phenomenal success. is one of the biggest and most prominent companies in the Tata Group. the company is today among the world's top 10 producers of commercial vehicles. vehicles in India bear the trusted Tata mark. previously known as Tata Engineering. . Australia. Tata Motors vehicles currently sell in over 70 countries. with an annual turnover of US$ 1. and only fully integrated.8 billion in 2001-02.
In 2004 Tata acquired the Daewoo Commercial Vehicle company at South Korea’s second largest truck maker The rebranded tata Daewoo commercial vehicle company has launched several New product in the Korean market. Through acquisition. In 2005. Thailand and Spain. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. a Spanish bus and coach manufacture. Tata Motors continued its market area expansion Through the Introduction of new products such as Trucks. Tata has operations in the UK. Tata Motors acquired a 21% controlling stake in Hispano Carrocera. while also exporting these products to several international markets.TATA’S GLOBAL OPERATION Tata Motors has been in the process of acquiring foreign brands to increase its global presence. jointly developed with subsidiary Tata . South Korea. Among these acquisitions is Jaguar Land Rover. (Novus. a business comprising two struggling iconic British brands that was acquired from the Ford Motor Company in 2008.
Bangladesh. namely India. Tata motors has expanded its production and assembly operation to several other countries including South Korea. Tata also has franchisee joint venture assembly Operatiion in Kenya. Thailand. Spain and South Africa. the SAARC countries and the Middle-East by the end Of the year 2009. Tata has dealerships in 26 countries across 4 continents. Bangladesh. Tata formed a joint venture with the Brazil based Marcopolo to manufacture fully-built buses and Coach for India and other international markets. In 2006. Sri Lanka and Nepal. 2009 Tata unveiled the Tata World Truck developed with Tata Daewoo Debuting in South Korea. Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent. and Indonesia plants up in and Eastern Europe. Tata has a growing consumer base in Italy. Russia & Senegal. Bhutan. south Africa.Daewoo on 1st May. Ukraine. South Africa and Argentina and is planning to set up plants in Turkey. .
One of the more important parts of this is the transparency of the company people have a right to know what the company is doing not only to ensure ethical practices.com). ethical. A full list of top management is visible in Appendix B. but for the insurance of their many shareholders whom have a right to know the inner workings of the company. and transparent governance practices” (tatacarsworldwide. Tata has created some models for employees to guide themselves through everyday business practices to ensure that corporate governance is continuously being . “Tata Group’s corporate governance is founded upon a rich legacy of fair.CORPORATE GOVERNANCE: Since Tata Motors is a part of a large conglomerate company it needs to have a strong corporate governance to ensure that its employees act ethically and the business continues to run smoothly especially during the ever changing and dynamic global economy.
upheld. Quality management is an inhouse group dedicated to helping the various Tata companies achieve their business objectives through specific processes. The two main processes that the quality management services employees focus on are business excellence and business ethics. . direction. These two objectives have helped build Tata into the strong. The Tata business excellence model is upheld by Tata quality management services.
car manufacturer. The Society of Indian Auto-mobile Manufacturers stated. is also a hugely attractive market for dozens of car companies and most of . Tata has higher bargaining power with suppliers because it is a local. This location has been and will continue to be vital to Tata’s success.ORGANIZATION LOCATION: Tata Motors is located in the developing country of India.4 million new cars are sold each year. not foreign. Tata can take advantage of the fact that manufacturing labour cost is only 8 to 9 percent of sales. In addition. where some 1. Tata Motors is able to leverage Indian automotive market because the current increase in demand due to the improvements in infrastructure and growth of population and disposable incomes in India. compared to 30 to 35 percent of sales in developed countries. “India. India is one of the world’s largest producers of automotive components which give Tata Motors direct access to many of these components. In India.
land assets.2 million units a year by 2010. the India govern ment has made protectionist polices and regulations that are extremely favorable to Tata. India’s car market is expected to touch 2. the Indian government put in place policies that require foreign car makers to invest at least 50 million dollars in equity to set up manufacturing operations in India. In December 1997. and overall investment practices without having to implement this 50 million dollar investment.them can’t risk ignoring what appears now be a potent competitive advantage for Tata Motors. Tata Motors largest competitive. . additionally. This means that Tata Motors is able to take advantage of the low cost of labor. Finally.
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