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AUTOMOBILE INDUSTRY IN INDIA

The automobile industry in India is the eleventh largest in the world with an annual production of approximately 2 million units. India is expected to overtake China as the world's fastest growing car market in terms of the number of units sold and the automotive industry is one of the fastest growing manufacturing sectors in India. Because of its large market, a low base of car ownership (7 per 1,000 people) and a surging economy, India has become a huge attraction for car manufacturers around the world. The automotive industry directly and indirectly employs 13 million individuals in India. The industry is valued at about US$ 35 billion contributing about 3.1% of India's GDP. India's cost-competitive auto components industry is the second largest in the world. In addition, India's motorcycle market is also the second largest in the world with annual sales of about 5 million units. Though several major foreign automakers have their manufacturing bases in India like Honda and Kawasaki, the Indian automobile market is dominated by domestic companies. Maruti Suzuki is the largest passenger vehicle company, Tata Motors is the largest commercial vehicle company while Hero Honda is the largest motorcycle company in India. Other major Indian automobile manufacturers include Mahindra & Mahindra, Ashok Leyland and Bajaj Auto.

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KEY FACTS
The Automotive Industry in India is one of the largest industries and a key sector of the economy. The Indian automotive industry started from 1991with the government’s delicensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Since then many large global companies have set up their facilities in India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006. At present, India is the world's
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Largest tractor and three-wheel vehicle producer. Second largest two-wheel vehicle producer. Fourth largest commercial vehicle producer. Eleventh largest passenger car producer.

Production: According to the Society of Indian Automobile Manufacturers, the Indian automobile industry has reached double-digit growth for the past three years in a row. In 2006, the industry produced 10.9 million vehicles, an increase of 16.22% over 2005. In 2005, production grew 14.5% over the previous year. The production of the automotive industry is expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-08. Exports: the cumulative annual growth rate of automotive exports during the period 2000-01 to 2005-06 was 32.92 per cent. Exports during 2006-2006 and 2007-2008 are expected to grow over 20 per cent. Imports: Europe is the biggest importer of cars from India, while African nations largely account for the import of buses and trucks. China is most recently making 2

inroads into this market. The South-East Asian region is the prime destination for Indian two wheelers. Sales:

Passenger Vehicles: Growth in sales of passenger vehicles was 18.45% in 2006. This was almost three times the growth witnessed in 2005. Sale of passenger cars expanded by 20.0%. Export of passenger vehicles increased by 12.9% Utility Vehicles: 12.4% Two-wheelers, commercial vehicles and three-wheelers: Export growth at a rate of 24%, 26% and 72% respectively.

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Investment: Among the car companies that are investing in India are US automakers General Motors and Ford, Germany's BMW and DaimlerChrysler AG, France's Renault, Japan's Suzuki, Toyota and Honda, and South Korea's Hyundai. There is also a boom in auto ancillary companies. India is an attractive outsourcing destination for global auto companies because of its strong engineering skills and low costs. Sourcing parts from India is 10-20% cheaper for US auto makers and about 50% cheaper for their European counterparts.

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WHY TO INVEST IN TATA MOTORS?

This is the probably the best time to invest in Tata Motors. The year 2008 promises to be a big year for Tata Motors. It plans several launches, including the long-awaited Rs 1 lakh car and the Alfa Romeo, Masserati and Ferrari. Tata Motors has big plans for next year. On the cards are a revamped Tata Indica, a smaller Indigo to compete with Maruti's Swift and a new Sumo. But that is not all. It will unveil its Rs 1 lakh car, as well as brands like the Alfa Romeo, Masserati and Ferrari, which Tata Motors and Fiat will jointly sell. About two years after Tata Motors and Fiat joined hands, Fiat's Grand Punto and Linea will roll out of Tata-Fiat's Ranjangoan facility. Besides, Tata Motors has several commercial vehicles waiting to hit the roads. And what could turn out to be the biggest achievement for Tata Motors would be Ford's iconic brands-Land Rover and Jaguar, that are up for sale.

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TATA MOTORS
INTRODUCTION
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. The company's 22,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics." Tata Motors helps its employees realize their potential through innovative HR practices. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. All-round potential development and performance improvement is ensured by regular in-house and external training. The company has won several awards recognizing its training programmes.

LOCATIONS
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a

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strong auto finance operation. In 2007. Korea's second largest truck maker. supporting customers to purchase Tata Motors vehicles. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets. Tata Motors already distributes and markets Fiat branded cars in India. In 2006. Argentina. In 2006. While currently about 18% of its revenues are from international business. it acquired the Daewoo Commercial Vehicles Company. In 2004. the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba. has also emerged as an international automobile company. a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. established through exports since 1961. Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra. it formed a joint venture with the Brazilbased Marcopolo. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2005. The pick-up will be sold in South and Central America and select European markets. These linkages will further extend Tata Motors' international footprint. while also exporting these products to several international markets. the company's objective is to expand its international 6 . Tata Motors acquired a 21% stake in Hispano Carrocera. Hispano's presence is being expanded in other markets. MAJOR ACHIEVEMENTS Tata Motors. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. TML Financial Services Limited. with an option to acquire the remaining stake as well. a reputed Spanish bus and coach manufacturer.

and the CSIR Diamond Jubilee Technology Award in 2004. The ERC in Pune. and the ability to translate them into customerdesired offerings through leading edge R&D. Bangladesh.business. The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. Australia. The R&D establishment includes a team of 1400 scientists and engineers. Africa. TMETC is engaged in design engineering and development of products. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain. among whose facilities are India's only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration. Tata Indica became India's largest selling car in its segment. It was Tata Motors. The company's commercial and passenger vehicles are already being marketed in several countries in Europe. The ERC has enabled pioneering technologies and products. Russia and Senegal. Jamshedpur and Lucknow. Kenya. OTHER ACHIEVEMENTS The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs. the Middle East. The company's Engineering Research Centre was established in 1966. Some of the more prominent amongst them are the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in 1999. 7 . Ukraine. the Tata Indica. and has facilities in Pune. India's first Sports Utility Vehicle and. both through organic and inorganic growth routes. India's first fully indigenous passenger car. in 1998. has received several awards from the Government of India. It has assembly operations in Malaysia. supporting Tata Motors' skill sets. which developed the first indigenously developed Light Commercial Vehicle. Within two years of launch. the National Award for Successful Commercialization of Indigenous Technology by an Industrial Concern in 2000. South East Asia and South Asia.

Tata Motors is committed in letter and spirit to Corporate Social Responsibility. it plays an active role in community development. and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. It is a signatory to the United Nations Global Compact. machine tools and factory automation solutions. serving rural communities adjacent to its manufacturing locations. In accordance with this. The years to come will see the introduction of several other innovative vehicles. the company is engaged in engineering and automotive solutions. Tata Motors today is etching a refulgent future. India’s first indigenously developed mini-truck. in 2005. automotive vehicle components manufacturing and supply chain activities. by launching the Tata Ace. With the foundation of its rich heritage. 8 . construction equipment manufacturing. Besides product development. R&D is also focussing on environment-friendly technologies in emissions and alternative fuels. and automotive retailing and service operations.The pace of new product development has quickened through an organizationwide structured New Product Introduction (NPI) process. brings in greater discipline in project execution. all rooted in emerging customer needs. Through its subsidiaries. True to the tradition of the Tata Group. high-precision tooling and plastic and electronic components for automotive and computer applications. The process with its formal structure for introducing new vehicles in the market. The NPI process helped Tata Motors create a new segment.

and the Novus.   Pune: The Pune unit is spread over 2 geographical regions. Jamshedpur: Established in1945. the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. The plant will begin commercial production during the course of the year. Every stage of product evolution-design. Cab & Cowl Factories.Pimpri (800 acres) and Chinchwad (130 acres). which has one of the most versatile tool making facilities in the Indian sub-continent. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Uttarakhand: The company has set up a plant for its mini-truck.MANUFACTURING UNITS IN INDIA Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenization. at Pant Nagar in Uttarakhand. It was established in 1966 and has a Production Engineering Division. assembly and quality control. It consists of 4 major divisions Truck Factory. development. Ace. Pune in the West and Lucknow in the North. is carried out meticulously.   9 . manufacturing. Engine Factory. Our manufacturing plants are situated at Jamshedpur in the East. Lucknow: Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market.

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The company’s main product lines in the passenger vehicle segment are: PASSENGER VEHICLE SEGMENT PASSENGER CARS UTILITY VEHICLES 11 .PRODUCTS TATA MOTORS major business segments are passenger vehicle segment and commercial vehicle segment.

Direct Injection Common Rail (DICOR) engine . a SmoothRide Suspension. INDICA V2 In 2001.000 in less than 18 months. It married the power and comfort of a large car with the easy maneouverability of a small one.4 litre. 70 PS.PASSENGER CARS: 1. Major improvements were also made to the air conditioning system and braking mechanisms. EasyShift Gears and WideTread Tyres. February 2001 saw the next stage in the evolution of the Indica V2. the Indica now comes equipped with the 1. the Indica V2 became the fastest-selling automobile in Indian history when it chalked sales of 100. BlockShock Absorbers. Year 2002 saw the Indica V2 complying with the first offset crash test. A car that embodied everything the Indica V2 had with several added features like a SuperDrive Engine. as well as the body reinforcements. The state-of-the-art technology combined the features of the Indica V2 Diesel with the smoothness of petrol. the Indica V2 Petrol was launched in September 2001. 2.the latest in diesel-engine technology that's empowering cars 12 . INDICA V2 DICOR As a car that has always lived up to the promise of delivering more. Taking off on the success of the Indica V2 diesel.

INDICA V2 XETA The new Indica Xeta. seats three people comfortably in the rear. the Indica now offers the widest range of diesel engines naturally aspirated. the engine delivers great performance. turbo charged intercooled and now common rail. high mileage and an exhilarating driving experience in the hatchback Indica. including a knock control sensor to reduce damage from adulterated fuel.worldwide. for a smoother and more responsive drive. With instant pick up and fewer gear changes in stop-start city traffic. Its extra efficiency Torque Advantage petrol engine delivers 12. Offered till recently on our premium vehicles. Making technology accessible across varying needs. with ample elbow room and generous leg room.4 kgm torque. In keeping with its leadership position as the best selling diesel car in the country. The luxurious beige interiors come as a standard feature. The result? Even more enjoyable long drives.the biggest in its class. 13 . and sports 12 sensors. with a frugal fuel consumption at 14 kmpl. The technologically superior MPFI engine comes with a 32-bit microprocessor. 3.Its spacious cabin .

There were however. 14 . Indigo very clearly stands for Comfort and Luxury. Discounts on brands ranged from between Rs. Within months. Owners of the Indigo were very impressed with its performance and build quality. INDIGO The Indigo became a success story right from the day of its launch. 5.000 sales milestone.70. In fact in a matter of two years. the Tata Indigo.000. Competition soon resorted to price-offs and offers to arrest falling market shares. The Indigo became the top seller in its segment continuously for the first two years and the fastest to cross the 50.4.000 Tata Indigos were on the road. So. a select group of people who wanted everything that came with the Indigo plus a little more space.00. 50.000 to Rs. we developed the Indigo Marina. INDIGO MARINA The Indigo Marina story started two years back with the launch of the luxury sedan from Tata Motors. it became the category leader. The objective was to build on the existing equity and strengthen the proposition. 1.

trimmer rear bumper. Clever and efficient design has made it possible to encapsulate this entire package within the four metre length. The Indigo CS sports a stylish new tail light cluster in the rear embedded in a smart new rear profile completed with a new. INDIGO CS The world's first sub four-metre sedan. the Tata Indigo CS is positioned as the first car for young professionals. It carries forward the cabin seating comfort and space package.6. The front of the car has also been visually differentiated with a new front grille and new headlamps. that is now closely associated with the Indigo range and a capacious 380 litre boot. making this car a complete package to address the combined demands of space and maneuverability in our congested cities. 15 .

It is spacious enough to accommodate your family and friends. 2. that takes care of the adrenaline surge. 16 . it glides over rugged roads and potholes with effortless ease. TATA SAFARI DICOR Slick city maneuvers or fast lane driving. Muscular yet stylish. And impeccable styling that takes of the wow factor.UTILITY VEHICLES 1. Tata Safari handles both with aplomb. Propelled by a powerful engine. TATA SUMO Think big. Not to mention extra luggage. Think Tata Sumo.

The company’s main product lines in the commercial vehicle segment are: COMMERCIAL VEHICLE SEGMENT TRUCKS BUSES TRUCKS: In this segment. Tata Motors manufactures variety of models which satisfies different needs and conditions. The different variety available is as follows:  Medium and Heavy Commercial Vehicles: This section includes Rigid Trucks. Tippers and Applications. Tractor Trailers. 17 .

 Light Commercial Vehicles: This section includes 10 different types of trucks. LPT 1109 Turbo Truck and LP 1109 Turbo Truck. 18 . Intermediate Commercial Vehicles: This section includes just two models.

air-suspension and superior braking systems. which is set to change the competitive landscape of the small commercial vehicle segment. From the ergonomically designed seats. 19 . BUSES: The Tata Globus range of luxury coaches The Tata Globus Coach has been designed to transport long-distance traveller in the very lap of luxury. big machine.the small. and personalized climate control vents to quieter engines. Tata Ace . Small Commercial Vehicles: A new revolution in transport. each and every facet of the Tata Globus Coach ensures revolutionary passenger comfort and safety. spacious leg room. special baggage space.

with seating capacities from 16 to 67 seats. Designed on the concept of optimum functionality and comfort.each with a customized set of features. Low Floor and School bus options . OTHER BUSES: 20 . The Starbus range includes Standard. these fully-built buses also offer unparalleled economy to the operators.The Tata Starbus Range The Tata Starbus is available in a comprehensive range of variants. Deluxe.

00 Metric Tonnes 8.05 Paints.211.10 21 .86 Finished Products ----------------.0 4 NA NA NA 1. CR.359.862 11. ------------------.000 98.658 42.70 Flaps Engines Numbers 84. Jeep.294.33 Lubricants Scrap (Steel Metric Tonnes 97.MAR 2008 Product Name Unit Quantity Value Other Not Reported NA 14.179.95 (Non Ferrous) Ferro Alloys Metric Tonnes 1.280.827 Lubricants Steel Tubes Metric Tonnes 112 0.Mar 2008 Product Installed Production Sales Sales Unit Name Capacity Quantity Quantity Value AutomobileLight. Tubes & Numbers 4.00 29.227.11 Melting) Metals & Alloys Metric Tonnes 2.96 Paints.00 580. Oils & 0. Medium & Heavy Commercial.76 Components Tyres.01 Steel Metric Tonnes 216. Passenger Car Spare Parts Numbers 96. Oils & Kilolitres 14.in Rs.PRODUCTION COMPONENTS Raw Materials------------------.652 1.220.IN RS. ----------------.472 1.610. Cr.608 147.083 661.769 218.

587.00 8.00 NA NA NA 0.00 NA NA NA 0.26 NA 8.0 0 0 NA 0.00 Metric Tonnes 3.00 NA NA NA 0.00 69.282.00 Power Generation Printed Circuit Motors Arc & Spot Welding Robots SG Castings (Semies) By Continous Casting Process Solid State KWH 192.625.14 111.89 NA NA NA 58.00 34.00 NA NA NA 0.407.For Vehicles Castings & Forgings Scrap Hire Purchase Engines Diesel For Industrial & Marine Applications Export Incentives Income from General Services Proximity Switches NA NA NA NA NA NA NA NA NA 284.00 22 .498.29 90.97 NA NA NA 44.600 NA NA 0.

Electr Weighing Inst.Controller For Machine Tools Spot Welding Guns Numerical Control Of Machine Tools Motor Vehicles For Transport Of Goods AutomobileCars Castings (S G Iron) Electrical Copy Machining Electronic Comparator.91 NA 0.00 NA NA NA 0.00 NA 444.00 0.00 NA NA 0. Crane Weighing Inst Hoists (250 kgs) Linear Position Encoder & Readout Manufactured Components For Sale Metric Tonnes NA NA NA 0.00 NA NA NA 0.00 NA NA NA 0.505.00 NA NA NA 0.00 NA 0.00 Numbers 586.559.000 NA 14.00 NA 12.000 486..00 23 .00 NA NA NA 0.

089.00 NA NA NA FINANCIAL ANALYSIS BALANCE SHEET FOR THE LAST 5 YEARS 24 .00 0.69 NA NA NA 0.Metal Cutting & Grinding Machine Truck & Bus Chassis Total 31.

26 25 .07 3853.79 3.185.888.81 822.260.055.157.77 942.997.277.00 10.06 7.852.55 4.005.00 3.77 3.20 1.37 2.22 10.10 628.28 830.135.PROFIT AND LOSS ACCOUNT FOR THE LAST 5 YEARS Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.454.835.023.022.83 2.15 9.852.196.41 6.82 Mar ' 06 361.200.80 -19.10 10.15 1.95 664.65 1.853.32 2.473.51 3.76 2.95 3.83 3.65 156.458.63 3828.236.10 2.749.08 8.41 14.037.024.81 6.74 Mar ' 08 26.54 3.853.543.450.17 -1.98 3.54 3.33 1. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) Income: Operating income Expenses Material consumed Manufacturing expenses 385.80 25.37 5.529.84 Mar ' 04 8.028.94 8.05 1.055.710.376.86 1.971.25 19.42 3197.447.08 5.55 26.480.11 929.611.268.088.778.09 3.95 4.89 1.127.114.04 1.860.94 2.65 951.67 538.78 5.28 3.84 2.16 6.401.323.956.93 1.117.45 3.45 Mar ' 05 353.42 8.39 22.81 2.39 2.912.52 Mar ' 06 17.07 3529.779.985.47 920.855.17 8.513.149.12 8.69 2.87 732.199.101.47 5.92 18.18 -538.550.88 7.00 2.563.87 5.775.65 317.52 1.961.60 489.76 896.056.812.720.447.40 3.63 14.28 270.52 7.318.71 286.32 420.32 3617.99 4.195.73 Mar ' 04 319.015.06 7.81 2.606.606.923.648.57 1.31 2.17 12.248.09 10.309.88 1.894.19 4.64 91.19 2.39 4.664.58 Mar ' 05 13.87 5.477.321.61 6.36 Mar ' 07 382.987.12 4.34 Mar ' 07 20.

18 -6.43 15.94 73.94 69.15 578.65 1.042.586.24 520.399.73 -156.085.95 Mar ' 05 810.76 1.38 -9.15 -0.648.367.488.886.11 26 .232.18 2.89 11.11 300.29 85.236.16 67.90 -144.73 482.62 489.39 155.07 1.41 415.47 1.75 911.199.07 98.40 144.19 63.10 300.23 1.31 227.56 758.58 308.23 3.34 598.91 4.09 312.83 0.300.39 2.913.88 2.52 -308.913.05 399.05 24.907.78 1.60 51.27 2.34 Mar ' 04 300.94 2.727.46 7.077.83 1.51 2.528.56 1.96 382.Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 1.73 -282.000.91 16.36 685.16 -577.143.02 2.601.13 759.84 1.58 524.74 2.02 810.62 519.526.88 Mar ' 06 1.80 720.50 1.37 1.64 1.686.831.013.194.68 660.05 282.12 2.34 934.21 452.54 497.69 1.094.346.93 225.473.039.49 455.049.54 350.11 36.37 409.14 615.11 127.361.690.55 820.54 1.60 882.75 586.146.93 1.42 1.54 1.46 Mar ' 07 1.85 17.74 455.30 450.99 234.81 CASH FLOW FOR THE LAST 5 YEARS Mar ' 08 Profit before tax 1.41 1.235.41 210.25 2.962.89 1.942.55 359.51 887.83 1.528.12 1.82 -3.068.04 -1.65 167.28 235.302.

39 1.209 11.233.118.119.20 525.04 2. activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year 2.76 -221.53 -2.62 245.92 771.82 -956.717.805.27 -1.49 1.311.43 1.27 326.208.12 2.210.077.79 1.40 -183.391 93.19 -149.15 826.Net cash flow-operating activity Net cash used in investing activity Net cash used in fin.03 -1.043.005.75 -81.196.14 245.249.35 770.362 Category DEC'08 DEC'07 DEC'06 M& HCV 14942 16.67 1.58 -291.10 303.161 27 .92 -1.13 -2.36 2.57 940.06 -855.35 TATA MOTORS FLASH FIGURES FOR DECEMBER 2007 PRODUCTION 2007200608 07 2005-06 12035 131.

558 Total 2006200507 06 13025 8 91212 10695 6 73056 32545 26030 13717 7 115892 40693 6 306190 Category M& HCV LCV* UTILITY CARS TOTAL 18622 17.511 7.122 40436 2 410464 310196 SALES A.654 10265 9 89.302 40263 38228 35205 200708 12279 5 12128 1 33207 12964 6 40692 9 28 .563 15.2006.350 24.821 30967 31.660 102.281 751 16782 18555 11861 10.110 1093 1.235 2240 1.953 5.622 11.920 12016 9 125.643 3.665 9.590 36666 6 368708 270985 Exports 2007.LCV* UTILITY CARS TOTAL 14570 3282 9900 42694 11.905 7.551 26.678 15435 13131 9298 3.201 116.274 11.307 299 124 205 3739 3974 3512 12.197 11722 13097 10927 44694 31767 4701 4063 3831 47678 48757 35598 Category DEC'08 M& HCV 15689 LCV* 12972 UTILITY 3440 CARS 10876 TOTAL 42977 B.321 74.006 29915 8 12276 8 109.305 85.620 2463 2.110 9477 11.730 846 432 1.658 32372 32. For the month Domestic Exports Total DEC'07 DEC'06 DEC'08 DEC'07 DEC'06 DEC'08 DEC'07 DEC'06 17.226 1.517 13.393 57.237 2.195 1.054 12886 4 137. For the year Domestic 20072006200508 07 06 11287 1 122.850 3.200508 07 06 9924 7.035 42509 9.

TATA MOTORS PASSENGER VEHICLE SEGMENT COMMERCIAL VEHICLE SEGMENT MARUTI SUZUKI ASHOK LEYLAND 29 . Maruti Suzuki is the major competitor whereas in commercial vehicle segment.TATA MOTORS COMPETITORS Tata Motors faces competition in both passenger vehicle segment as well as commercial vehicle segment from two major players in the market. In the passenger vehicle segment. Ashok Leyland is the major competitor.

The Group's principal activity is to manufacture. Maruti Omni: Launched 1984. PRODUCTS Some of their popular products are as follows:     Maruti 800: Launched 1983. Fleet Management and Car Financing. The Group has operations in over 312 cities with more than 500 outlets and also exports cars to other countries. purchase and sale of Motor Vehicles and Spare parts. maintenance management. Maruti Gypsy: Launched 1985. The Group also provides services like framing of customized car policies. until 2004. Currently the largest selling car in India Maruti Grand Vitara:Launched 2003 Maruti Versa: Launched 2003 Maruti Swift: Launched 2005 Maruti Zen Estilo: Launched in 2006        30 . Largest selling car in India. emergency assistance and accident management. registration and insurance management. economical leasing of cars. The other activities of the Group comprises of facilitation of Pre-Owned Car Sales.MARUTI SUZUKI Maruti Suzuki India Ltd formerly known as Maruti Udyog Limited.Production ended in 2007. The product range includes ten basic models with more than 50 variants. Esteem: Launched 1994. The Group is a subsidiary of Suzuki Motor Corporation.Will be shortly replaced by new Suzuki Swift Sedan Maruti Wagon-R: Launched 1999 Modified 2006 Suzuki SX4: Launched 2007 Maruti Alto: Launched 2000.

Manufacturing of commercial vehicles was started in 1955 with equity contribution from Leyland Motors. an England-based transnational conglomerate. Today the Company is the flagship of the Hinduja Group. The Company's principal activity is to manufacture commercial vehicles and spare parts. The Company also manufactures special vehicles and engines for industrial.city bus Viking BS-III -city bus Cheetah BS-I Cheetah BS-II Panther 12 M Stag Mini Stag CNG 222 CNG Lynx Double Decker Vestibule Airport Tarmac Coach 31 . with an aim to assemble Austin cars.city bus Viking BS-II . The company was established in 1948 as Ashok Motors. PRODUCTS               Viking BS-I .ASHOK LEYLAND Ashok Leyland is a commercial vehicle manufacturing company based in Chennai. The Company operates only in India. genset. India. marine requirements and automobile spare parts.

) 26.562.29 32 .000.00 20.913.70 TATA MOTORS MARUTI S UKI UZ AS HOK L L EY ND Profit 1.COMPARISON OF TATA MOTORS V/S MARUTI SUZUKI &ASHOK LEYLAND PARTICULARS TATA MARUTI ASHOK LEYLAND MOTORS SUZUKI Profit and loss (Rs .000.40 Sales 30.25 14.349.00 5.00 0.358.000.46 1.60 6.00 24.000.721.000.806.00 0.000.000.000.000.00 441.00 10.00 7.00 15. in CR.00 15.88 T A MO O S AT T R MAR I S UK UT UZ I AS O LE H K YLND Expenditure 25.00 20.664.00 25.000.000.00 10.427.00 5.42 12.

in CR.2.14 630.40 TATA MOTORS MARUTI S UK UZ I AS HOK L L EY AND Reserves 6.) 385.50 132.41 144.458.39 6.00 T A MO O S AT T R MAR I S UK UT UZ I AS O LE AN H K YL D Share capital 400 350 300 250 200 150 100 50 0 Balance sheet (Rs .709.39 T AMO O S AT TR MAR I S UK UT UZ I AS O LE AND H K YL Debts 5000 4000 3000 2000 1000 0 4.009.40 1.00 1.00 1.000.00 0.739.500.00 500.23 33 .80 640.000.

04 TATA MOTORS MARUTI S UKI UZ AS HOK L L EY AND Investment 3500 3000 2500 2000 1500 1000 500 0 2.881.70 1307.90 574.20 221.26 2659.477.72 34 .7000 6000 5000 4000 3000 2000 1000 0 T A MO O S AT TR MAR I S UK UT UZ I AS KLE HO YLAND Fixed Assets 4000 3500 3000 2500 2000 1500 1000 500 0 3.22 1176.00 3409.09 T A MOT S AT OR MAR T S Z K UI UU I AS OKLE H YLAND Working Capital 1997.

74 49.33:1 0.83:1 0.889.65 2.10 65.853.46 TATA MOTOR MARUTI S UKI UZ AS HOK L L EY AND 0 10 2 0 30 40 5 0 60 70 Divident Per Share 150.05% 0.57:1 33.00 90.13 13.85:1 31.05% Per share data (annualized) 3.00 150.02% 1.00 35 .46:1 34.70 3.2000 1500 1000 500 0 T A MO O S AT T R MAR I S UK UT UZ I AS KLE HO YLAN D Ratio Debt-Equity Ratio Current Ratio Return On Capital Employed Shares in issue (lakhs) Earning Per Share 5.238.15:1 0.

T A MO O AT TR MAR I S UK UT UZ I AS O LE H K YLAND 0 20 40 60 80 100 120 140 160 Price Earning Ratio 12.00 35.39 10.20 T AMO O AT T R MAR I S UK UT UZ I AS O LE H K YLAN D 0 2 4 6 8 10 12 14 16 Current Market Prcie 675.57 14.30 TATA MOTORS CHART OF SHARE PRICE 36 .00 937.

CUSTOMER RELATIONSHIP MANAGEMENT The company implemented Oracle's Siebel Automotive-a comprehensive CRM solution. Tata Motors began standardizing its 37 . To address competitive challenges.

customer-facing business processes companywide. In addition. The company also favored Siebel Automotive because the user-friendly interface simplified the process of training of Tata Motors' 10. Phased approach The company took a phased approach to the implementation.000 salespeople across India. which helped individual dealerships with everything from inventory management and credit reporting to calculating commissions. In tune with its reengineering effort. laying the foundation for stronger dealer relationships. focuses on capturing customer and vehicle data and automating routine tasks. Phase I.600 locations staffed with more than 10. By tightly integrating Siebel Automotive and its DMS. currently under way. as it involved working with 500 dealer organizations and more than 1. comprehensive sales and reporting functionality built into Siebel Automotive enabled Tata to distribute sales targets to its dealers and roll up sales numbers across the country. Pricing and tax calculations are adjusted for each dealer's requirements. fulfillment. and a better customer experience. Phase II will focus on leveraging data to improve customer interactions and streamlining product development and planning. This posed numerous challenges. with the goal of achieving success in each phase before moving forward. the company was able to streamline transactions and ensure that dealers capture customer data as a part of their normal operations. Phase III will focus on tuning the system and delivering additional value-added services to customers. Siebel Automotive has been closely integrated with a wide array of SAP backoffice applications. The platform consisted of an innovative DMS. Tata deployed a technology platform to improve the flow of information across the enterprise. including applications inventory management. improved operational efficiency and effectiveness. and Siebel Automotive.000-plus dealer 38 . and parts location.

EMPLOYEE RELATIONS The Tata Group's relationship with its employees has changed from the patriarchal to the practical. but which can be ordered directly from Tata Motors. We've overcome the challenges of relying on disparate sources of information. Covering a country with an area of 3. Overall.3 mn sq km also required an innovative communications solution. but this is a bond that continues to be nourished with compassion and care 39 . Today.sales force. our employees and dealers are much more responsive and can serve customers more efficiently and effectively-drawing upon real-time. as well as having inconsistent business processes. Siebel Automotive has transformed our organization and made it truly customer-centric. The solution helped dealers respond to customer queries regarding vehicles that aren't in a dealer's stock. centralized customer and vehicle data.

The richness of this relationship. To give but one example of how far ahead 40 ."What exercise is to the body. every other of a quick-growing variety. With some 289. bonus and gratuity — all of these and more were introduced by the group before any legal rules were framed on them. five years before a site for his proposed steel enterprise had been decided. the Tata Group touches and moulds the everyday lives of more people than any private-sector employer in the country.500 members in its diverse and widespread family. there's something positively distinctive. represents a workplace culture that goes way beyond work." It was but natural that the city built on this munificence came to be called Jamshedpur. Workers and their welfare were of utmost importance to group founder Jamsetji Tata. free medical aid. As any 'Tata person' will tell you. training institutes. The eight-hour working day. Be sure that there is plenty of space for lawns and gardens. writing to his son Dorab Tata in 1902. moving from the paternalistic philosophy of yore to bring the group in line with ever-evolving human-resource methodologies. provident fund. it is necessary to peep into the past. leave with pay. employment is to the mind and morals. grievance cells. Mohammedan mosques and Christian churches. To understand the dynamics of the present. maternity benefits. fashioned by a tradition of benevolence and empathy. who. Earmark areas for Hindu temples. Reserve large areas for football. accident compensation. This view continues to hold despite the changes that have altered the way the Tatas interact with their people. stated: "Be sure to lay wide streets planted with shady trees. The transition from then to now has not eroded what remains a central theme with the group: providing its employees more than mere jobs. hockey and parks. The Tatas pioneered a slew of employee benefits that would later be mandated through legislation in India and elsewhere in the world." said American writer and thinker Henry David Thoreau. about working for the group — the experience is cast in a hue quite different from the ordinary. welfare departments. something less than completely explainable.

not only to ourselves but also to our businesses. engaging employees and creating a wholesome environment for them. The third is the books. The second forum comprises the physical structures such as the Tata archives in Jamshedpur and Pune. magazines and other publications that detail the Tata heritage. the government regulation on this issue came into force in 1952. The realities 41 . and to realise their vocational potential.of the times the Tatas were. Mithapur. The volunteering and community work that have now become a ritual in Tata companies fulfils another employee objective. These workplace measures were complemented by what Tata companies created to enable their employees to live fuller lives away from their offices and factories." The specifics of the Tata engagement with its employees differ from factory floor to management enclave. our communities and our stakeholders. The Tata townships in Jamshedpur. Independent yardsticks bear out the truth that Tata companies are. Hosur and elsewhere are epitomes of communal existence. Babarala. while delivering succour to the poor and needy. But there are some commonalities. The management training programmes conducted by dedicated group institutions are devised to help employees give expression to their talent. The induction and training programmes give new employees an opportunity to understand the history and background of the Group. Satish Pradhan. executive vice-president (group human resources). Driving every one of the group's initiatives in the wide sphere of employee relations is a value system that. This is permeating value right across the group in a variety of ways in terms of accountability and responsibility. by and large. nowhere more so then on the vexed subject of voluntary retirement schemes (VRS). stresses the here-and-now of how the group has built on its legacy in employee relations. percolates to each person looking to craft a career in the Tatas. while its first provident fund scheme was started in 1920. slowly but surely.

Voltas. and the spread of geographies. from being public-sector entities to becoming members of the Tata family. Programmes such as the Tata Administrative Service and institutions like the Tata Management Training Centre have been revamped and reengineered to reflect the requirements of the present. to float and implement what would have been unthinkable for it in days gone by. like many others. Tata Chemicals. Rallis." Change management is another area where the Tata Group has invested plenty of effort. including the opportunity to progress within and across group companies. the range of activities. The thought and care that accompanies all Tata VRS initiatives finds an echo in the many volunteering programmes that group employees undertake. at the managerial level and above. 42 . It has group mobility processes that facilitate movement across functions and domains of knowledge. We see volunteerism as shaping the minds of our employees as well as giving back to the communities in which we operate.of modern business have forced the group. It has over the last three years consistently moved an average of 50 people a year. across companies. Tata Steel. bears testimony to the patience and skills the group has brought to the challenging task of reforming the mindsets and attitudes of employees coming into its fold from a different work environment. The prime consideration for the Tatas on this issue has been to minimise the inevitable suffering it brings to people who have served a group company for long. These and other measures enable achievers in the group to progress further and faster than was the case in years gone by. The smooth transition that companies such as VSNL and CMC have made. The numbers are staggering. Tata Consultancy Services. in terms of time invested. These range from helping underprivileged folks in big cities to uplifting rural communities in the Indian outback. Indian Hotels — all of them are deeply involved in volunteering work. The Tatas have progressed with the times and have endeavoured to offer more to their employees today.

“ THE PEOPLE’S CAR” The Nano will be launched in India later in 2008. The car will be available in both standard and deluxe versions. move them up faster. an American businessman. once said: "The only way I can compete … is to treat my employees better." TATA NANO . James R.If all of this suggests the Tatas are some kind of model employer. comfortable 43 . Stylish. give them more money and put mirrors in the bathrooms. Uffelman. Both versions will offer a wide range of body colours and other accessories so that the car can be customized to an individual's preferences.

With an all sheet-metal body. with wheels at the corners and the powertrain at the rear. Tubeless tyres further enhance safety. with safety features such as crumple zones.   Meets all safety requirements  The Nano's safety performance exceeds current regulatory requirements. With a length of 3. it can effortlessly maneuver on busy roads in cities as well as in rural areas. enables it to uniquely combine both space and maneuverability. 33 PS. which will set a new benchmark among small cars. Can comfortably seat four persons. strong seats and anchorages.    Fuel-efficient engine  The Nano has a rear-wheel drive. the Nano has a roomy passenger compartment with generous leg space and head room. Performance is controlled by a specially designed electronic engine management system. it has a strong passenger compartment.1 metres.5 metres and height of 1. intrusion-resistant doors. all-aluminum.  44 . which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. This is the first time that a twocylinder gasoline engine is being used in a car with single balancer shaft. 623 cc. Four doors with high seating position make ingress and egress easy. Designed with a family in mind. multi point fuel injection petrol engine. width of 1. with adequate ground clearance. The lean design strategy has helped minimize weight. seat belts. two-cylinder. and the rear tailgate glass bonded to the body.6 metres. Its mono-volume design.

In terms of overall pollutants. it has a lower pollution level than two-wheelers being manufactured in India today. WHY NANO? The name 'Nano' was chosen as it denotes high technology and small size. Tata Nano 45 .Environment-friendly  The Nano's tailpipe emission performance exceeds regulatory requirements.

Pantnagar & Pune None City car 4-door kei car RR layout 2 cylinder petrol Bosch multi-point fuel `injection (single injector) all aluminium 623 cc (38 cu in) Transmission(s) 4 speed synchromesh with overdrive in 4th Wheelbase Length 2.8 in) 3100 mm (122 in)[1] 46 .Manufacturer Tata Motors Parent company Tata Sons Also called Production Assembly Predecessor Class Body style(s) Layout Engine(s) The People's Car 2008 — present Singur.230 mm (87.

Justin Norek of Trilix.Width Height Kerb weight Fuel capacity Designer 1500 mm (59. Pierre Castinel[3] 47 .1 in)[1] 1600 mm (63 in)[1] 580 kg (1.300 lb)-600 kg (1.300 lb)[2] 15 L (4 US gal/3 imp gal)[2] Girish Wagh.

another technically innovative "people's car".This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise & vibration and can now ply on Indian roads.[27] The eventual new Mini was much larger and technically conservative. This makes Tata Nano the most fuel efficient car in India. 62 mpg (UK)) under city road conditions. Ratan Tata also said. the Nano complies with Bharat Stage-III and Euro-IV emission standards. also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production.85 L/100 km on highways (25. 61. and has a fuel economy of 4.[22][23] According to Tata. 'The car has passed the full-frontal crash and the side impact crash'. MG Rover Group later based their Rover CityRover on the Tata Indica. and now-defunct. 51. Tata Nano managed to score around 24 km per litre during its ‘homologation’ tests with ARAI. It is the first time a two-cylinder non-opposed petrol engine will be used in a car with a single balancer shaft. A concept vehicle similar in styling to the Nano. Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’s tests on its windshield.97 km/L.7 mpg (US). Tata Nano passed the required 'homologation’ tests with Pune-based Automotive Research Association of India (ARAI). The independent. with powertrain accounting for over half of them.3 mpg (UK)).97 km/L. the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive. and 3.55 L/100 km (21. 73. According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010. Side view of the Nano Rear mounted engine The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500.[22] The head of Tata Motors' Engineering Research Centre.[21] Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano.1 mpg (US). Girish Wagh has been credited with being one of the brains behind Nano's design.Technical specifications According to Tata Group's Chairman Ratan Tata. 48 .

alternator. starter. washer system Engine sealing Driveshafts Shifting elements Outside and inside door handles Bosch Caparo Continental Delphi Denso FAG Ficosa Freudenberg GKN INA ITW Deltar 49 . brake system Inner structural panels Gasoline fuel supply system.Tata is also reported to be contemplating offering a compressed air engine as an option Suppliers to the Tata Nano Supplier Product Gasoline injection system (diesel will follow). manual and CVT shifters. fuel level sensor Instrument cluster Windshield wiper system (single motor and arm) Rear-wheel bearing Rear-view mirrors. interior mirrors.

Johnson Controls Mahle Saint-Gobain TRW Ceekay Daikin/Valeo Vibracoustic Visteon ZF Friedrichshafen AG Behr Seating Camshafts. The Tata Motors website saw nearly 7. while the Tata Nano website saw 4 million hits in 30 hours. 50 . fuel filters and air cleaners Glazing Brake system Clutch sets Engine mounts Air induction system Chassis components. making these sites among the busiest in the world. including tie rods HVAC for the luxury version MOST EAGERLY WAITED CAR People world over were keen to see what Tata Motors' People's Car looked like. spin-on oil filters.9 million hits on January 10 (the day the Nano was unveiled).tatanano. and know more about it.5 months and with limited resources.com) was developed within a short timeframe of 1. The Nano website (www.

involving minimum investment. According to the report. TATA JAGUAR DEAL American car-maker Ford is expected to finalize the deal with Indian conglomerate Tata for the sale of luxury brands . The two sides. The high fuel efficiency also ensures that the car has low carbon dioxide emissions. thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. On January 3. it added. 51 .its online edition on Thursday. are expected to sign a deal worth up to two billion dollars (one billion pound) on 12th of March. next week after the American car-maker recently agreed to pump hundreds of millions of pounds into the pension fund to smooth the process. following the essence of the Nano .low cost. who believe that there is no immediate threat to British jobs or manufacturing. Ford had named Tata as the preferred bidder for Jaguar and Land Rover.The entire portal has been built on open source technologies.Jaguar and Land Rover by mid of March. The deal is expected to be welcomed by unions. which have been in exclusive talks since the beginning of the year. but high technology. Ford is expected to seal the sale of Jaguar and Land Rover to Tata.

Thus. to another state).03 km2) to Tata Motors. Activists near Kolkata. West Bengal. In New Delhi. where Tata's manufacturing unit is located. a group of six women protested wearing T-shirts bearing slogans that said.000 peasants and agricultural workers. 52 . "The Rs 1 lakh car has Singur people's blood on it. The affected farmers have fears that they will receive inadequate or no compensation and therefore lose their livelihoods... burnt the car effigy. there is now a race between other Indian States to become the new location for the Tata Nano project. where the state government of West Bengal had allocated 997 acres (4.e.Other Current Issues Singur car factory land dispute Singur car factory land dispute arose as Tata's planned manufacturing unit for the car in Singur. On 2 Sep 2008." The Trinamool Congress alleged that Tata motors usurped the agrarian land for the construction site and have threatened to stall the manufacture of the car. The construction of the car factory on that tract of land began in January 2007 on fertile agricultural land and the expropriation and eviction of approximately 15. With the Tata Nano project in jeapordy in West Bengal. Ratan Tata came through with his threats that he would rather pull out of Singur than expose his staff and machinery to attacks. with each state trying to entice the Tata Motors Group to their particular location. Tata Motors officialy announced that they were pulling the Tata Nano project out of Singur and " 'evaluating alternate options' and considering relocating the plant and machinery"(i.

A few days ago. 53 . and with the leader of the opposition also serving on it.” said a leading lawyer in Kolkata. working under the Central Information Commission. The opposition Trinamool Congress (TC) had been alleging for weeks that the “secret” portion of the contract contained a list of further benefits that had been promised by the state government to Tata Motors. was set up by the state government with a chairman and member nominated by the chief minister. tax breaks and subsidised land and electricity and had been promised refund of VAT and central sales tax on the car.” the leader alleged without substantiating on the calculation system used by the TC. the commission and the state government had released the basic part of the contract that had revealed that Tata Motors had received a Rs 200-crore loan at 1 per cent. “The information commissioner is a statutory authority under the RTI Act and is a quasi-judicial authority.Suicide A 65-year-old farmer committed suicide by swallowing pesticide in Singur in connection with Tata's Nano project. The real-cause is being investigated "Secret" agreement and Government subsidies Business Standard reported “ Tata Motors today moved Calcutta High Court against the State Information Commission to prevent it from releasing “secret” sections of the commercial agreement signed between the company and the West Bengal government to set up the Nano factory at Singur. The commission. ” While "secret" subsidies and tax breaks have been provided and some (including landloser or penniless farmers) may consider this unethical. 40 km from here. yet there's nothing illegal about it as this has been done through a proper legal-contract. “The Tata action in the Calcutta High Court supports our worst fears.” a TC leader told Business Standard. “The benefits promised under the portion of the contract already released prove that the state government was subsidising the Rs 1-lakh car to the extent of more than a quarter of its cost.

this subsidy. Nano might well come out of either: • • The Tata's plant at Pantnagar. Failure of talks "The talks between West Bengal Chief Minister Buddhadeb Bhattacharjee and Trinamool Congress chief Mamata Banerjee on Friday evening to settle the Singur imbroglio failed to bring out any positive results. Mr. though at the cost of the state-government and being a burden on the state-exchequer. which is good. It does not give us nightmares. it is sure to be a big part of all our futures. Lakshmi Mittal of ArcelorMittal said: "Whilst India has been a big part of my past. or more subsidies. in which one or more land-loser farmer(s) committed suicide even (including a 65-year-old farmer who committed suicide by swallowing pesticide).Moreover." Economic Times reported and others reported. if work is continued at the factory. or Out of nearby new-plants constructed in a SEZ in either Uttar Pradesh (Ghaziabad or Noida or others) or Uttarakhand (Pantnagar or Roorkee). It is expected that this self-imposed burden of subsidy. though jobs will be created for them in the private sector (which is good as it will force bureaucrats to do some "real" work) because "the plant will attract more industries and create more job opportunities for the local populace". this is better use of the state-funds as many of the so-called "state-funds" in India are embezzled before being spent for the good of the public due to the high-level of Corruption in India or spent on feeding excessive." Solutions It is widely believed that due to these increasing disputes. unneeded. and burdensome red-tape and bureaucracy. Reactions Whilst Indian business community is upset about the whole episode and has advised the Tatas to either relocate to Pantnagar or a nearby facility in Uttar Pradesh as requested by Amar Singh in 2006[49]. Ratan Tata might well take such land-marks steps to avoid the harm being caused to Tata's reputation and brand-image at Singur. Yet. will allow the West Bengal government in the near-future to shed some of its unneeded bureaucrat jobs (as it's very difficult to do this without any "cited reason" due to widespread opposition from the red-tape community). are good for the consumers as it will reduce the price of the Nano further. and Tata's recent stand. And we will not revisit our plan in India because of Singur episode. 54 .

000 people killed on the country’s roads every year. And while it is not a deathtrap – it has crumple zones. including an airbag system in its electric version. Introducing a million Nanos into the mix may bring more – and unwelcome – headlines. with more than 90. It's believed that Tata will offer a version of the Nano with these safety-features. Without these. ” Mass motorization and climate change As the Nano was conceived and designed around introducing the automobile to a sector of the population who are currently using eco-friendly bicycles and motorcycles. 55 . I had invited Tata Motors to set up the Nano factory there. seat belts and strong seat anchors – it is worth bearing in mind that total vehicle crash testing (rather than just frontal impact). which has the only crash-test facility in the country. which is why they have been omitted. said that the Nano “exceeds current regulatory requirements”. Tata.Uttar Pradesh Amar Singh. Adding them would double its price in India. "I admit that as chairman of the Uttar Pradesh development council. environmentalists are concerned that its extraordinarily low price might lead to mass motorization in countries like India and therefore possibly aggravate pollution and global warming as well as increase the demand for oil. then Chairman of the Uttar Pradesh state’s Industrial Development Council had even invited Tata in 2006 "offering to accommodate the small-car plant in Uttar Pradesh". airbags and antilock braking systems are not mandatory. the Nano would not even be considered for approval in Britain.” Amar told Safety-issues The Times says “ India has 8 per cent of the world’s vehicle fatalities and less than 1 per cent of its cars.

In the current policy and regulatory framework. as many Indians opt to wait for the Nano's release rather than buying used cars. Sales of new Maruti 800s have dropped by 20%. In crowded metropolitan cities like Mumbai. both two and three-wheeled. Centre for Science and Environment consider that the economy cars will be disastrous. Ratan Tata has conceived a scheme to only offer the Nano to those individuals who do not have an automobile already. Die Welt reports that the car conforms with environmental protection. The Nano will also replace many overloaded and worn-out two-stroke polluting vehicles. Tata is making the Nano compliant with export market regulations and plans to export such a car world-wide.Rajendra Pachauri. and 56 . an Indian and chairman of the Intergovernmental Panel on Climate Change. The ecology focused German newspaper die tageszeitung feels that such concerns are "inappropriate" as the Tata Nano has lower emissions compared to the average Volkswagen. which is considered as the Nano's nearest competitor. particularly to the UK and the rest of continental Europe. the US. both in terms of cost and technology. "World's cheapest electric-car" Tata is also believed to be making an electric version of the Nano (reportedly with attached or sideby solar panels as well) which might prove to be a boon for the society and the world. and Australia. as it might well turn out to be the "world's cheapest electric car" which is more eco-friendly and has many enthusiasts for its support. Solutions This can change if renewable energies are used. It's supposed to be as cheap as the conventional gasoline version. and will have the lowest emissions in India. Used Car Market Effects The Nano is alleged to have severely affected the used car market in India. such as the Maruti 800 (a rebadged Suzuki Alto). Steps which Tata Motors is already taking: Compressed-air fuel Tata Motors is working with a French firm on using compressed air as fuel which is eco-friendly and revolutionary in itself for a car of such large-scale. said he was "having nightmares" because of this car and added that the car represents bankruptcy of India's environmental policy. and that developing countries shouldn't be denied the right to motorized mobility when industrialized countries should be looking to reduce their emissions and usage of cars.

why they should pay. 57 . “People are asking themselves – and us . As one automotive journalist summarises. say. when they can wait and get a brand new Nano for less in a few months’ time.000 Rupees for a Maruti Alto. 250. a car that is actually bigger”.used ones by 30% following the unveiling of the Nano.

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