“Comparative analysis of Tata motors and Maruti Suzuki Motors”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By

Tanvir Inayatulla Shaikh

Under the Guidance of

Dr. Sunil Bapu Kadam

N.G. Acharya & D.K Marathe College of arts science & commerce

N.G. Acharya Marg Chembur Mumbai 71

January 2021
 “Comparative analysis of Tata motors and Maruti Suzuki Motors”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By

Tanvir Inayatulla Shaikh

Under the Guidance of

Dr. Sunil Bapu Kadam

N.G. Acharya & D.K Marathe College of arts science & commerce

N.G. Acharya Marg Chembur Mumbai 71

January 2021
 INDEX

CHAPTER TITLE PAGE

NO NO

1 INTRODUCTION
1.1 HISTORY
1.2 MANUFACTURING PLANT
IN INDIA

1.3 CARS AND MILEAGE

RESALE VALUE, 1-32
PERFORMANCE,
1.4
MAINTENANCE ,
FINANCIAL SERVICE AND
AFTER SALES SERVICE

1.5, 1.6, 1.7 PRODUCTS, MARKET

STRATEGY
& SWOT ANALYSIS

RESEARCH
METHODOLOGY
2 33-48
OBJECTIVES

SAMPLE SIZE DATA

SOURCE

3 REVIEW OF LITERATURE 48-49

4 DATA ANALYSIS AND 50-60

INTERPRETATION

COMPARISON OF
PROFITIBILTY/LIQUIDITY
RATIO & PROFIT OF BOTH
COMPANIES

5 CONCLUSION 61

6 BIBLOGRAPHY 62-63
 N.G. Acharya & D.K Marathe College of Arts Science & Commerce

N.G. Acharya Marg Chembur Mumbai 71

Certificate of Project Work

This is to certify that Mr. Tanvir Inayatulla Shaikh has duly complete his project
work for the degree of Master in Commerce under the faculty of commerce in
the subject of Accountancy and his project is entitled duly completed the
Project Work titled

“Comparative analysis of Tata motors and Maruti Suzuki Motors”

Under my guidance and that no part of it has been submitted previously for any
Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and investigation

____________________________

Seal of the college Name and signature

Of guiding teacher
Date of submission: - 01/02/2021
 Declaration

I the undersigned Mr. Tanvir Inayatulla Shaikh here by

Declare that the work embodied in this project work titled
“Comparative analysis of Tata motors and Maruti Suzuki Motors “forms my
own contribution to the research work carried out under the guidance of

Dr. Sunil Bapu Kadam is a result of my own research work and has not been
previously submitted to any other University for any Degree/Diploma to this or
any other University.

Whenever reference has been made to previous works of others

It has been clearly indicated as such and included in the bibliography.

I hereby further declare that all the information of this document

Has been obtained and presented in accordance with academic rules
And ethical conduct.

Tanvir Inayatulla Shaikh

Certified By

_______________________

Dr. Sunil Bapu Kadam

 Acknowledgement

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal Dr. Vidyagauri lele for providing

The necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Ms. Akila Maheshwari for
her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide

Dr. Sunil Bapu Kadam who guidance and care made this project successful.

I would like to thank my College Library for having provided various

reference books and magazines related to my project.

Lastly I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.
Chapter 1. Introductions

Introduction of Tata motors

Tata Motors Limited founded in 1945 by Jehangir Ratanji Dadabhoy Tata

is an Indian multinational automotive manufacturing company headquartered in Mumbai

Maharashtra India. It is a part of Tata Group an Indian conglomerate. Its products include
passenger cars trucks vans coaches’ buses sports cars construction equipment and military
vehicles.

Formerly known as Tata Engineering and Locomotive Company (TELCO) Tata Motors is a
part of the Tata Group. Tata Motors has auto manufacturing and assembly plants in
Jamshedpur Pantnagar Lucknow Sanand Dharwad and Pune in India as well as in Argentina
South Africa Great Britain and Thailand. It has research and development centres in Pune
Jamshedpur Lucknow and Dharwad India and South Korea Great Britain and Spain. Tata
Motors' principal subsidiaries purchased the English premium car maker Jaguar Land Rover
(the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle
manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with
Marcopolo S.A. (Tata Marcopolo) a construction-equipment manufacturing joint venture
with Hitachi (Tata Hitachi Construction Machinery) and a joint venture with Fiat Chrysler
which manufactures automotive components and Fiat Chrysler and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives the company manufactured its first

commercial vehicle in 1954 in collaboration with Daimler-Benz AG which ended in 1969.

In 1998 Tata launched the first fully indigenous Indian passenger car the Indica and in 2008
launched the Tata Nano the world's cheapest car. Tata Motors acquired the South Korean
truck manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar
Land Rover from Ford in 2008.

Tata Motors is listed on the BSE (Bombay Stock Exchange) where it is a constituent of the
BSE SENSEX index the National Stock Exchange of India and the New York Stock
Exchange. The company is ranked 265th on the Fortune Global 500 list of the world's biggest
corporations as of 2019.

Introduction of Maruti Suzuki motors

Maruti Suzuki India Limited (Formally known as Maruti Udyog Ltd) was established in
1981 February 24th. It was organized as a legal corporation beneath the provision of the
Indian Companies ACT 1956 to converge the rising demand of personal transportation by the
lack of an efficient public transport system. It is the largest car manufacturing company in
India accruing over 50% domestic car market. Suzuki Motor Corporation is the largest
manufacture of mini passenger vehicles in Japan. According to Automotive Intelligence
Suzuki is eleventh largest vehicle manufacturing company in the world and fourth in Japan in
terms of worldwide sales. The company offered different range of cars from passenger cars to
sports cars. From 1982 Maruti Udyog was a subsidiary of Suzuki Motor Corporation of
Japan. They licensed and joint venture agreement had been made between two companies on
October 2 1982.

The first commercial car from the joint venture company was launched in 1983 called Maruti
800 which was very popular.

In 1984 they launched Maruti Omni which fits one full size family.

In 1985 they introduced Maruti Suzuki Gypsy.

In 1992 Suzuki Motor Corporation increased its share value to 50% in Maruti. Later year they
launched with Maruti Zen and in 1994 they introduced Maruti Esteem into the market. Maruti
has inaugurated its second plant in 1995

In 2002 Suzuki Motor Corporation increased the share in Maruti to 54.2%. By 2002 they
established 10 finance companies in which 8 of them were finance companies and two were
joint ventures. They started a new business strategy for its purchase sales and trade of old
cards is Maruti True Value. With the first worlds strategic model with the help of Suzuki
Motor Corporation they launched ‘the SWIFT’ in 2005

Maruti started working on new car plant and the diesel engine facility at Manesar plant
Haryana in 2006-07. They opened a new institute of Driving Training and Research (IDTR)
in 2006 is a mutual project with Delhi Government for better Research in the field of
automobile. They introduced diesel cars like Swift and SX4 luxury sedam in 2007. Maruti
launched Multi Utility Vehicle (MUV) called Grand Vitara stylish muscular and 5 setter car
in 2007.

1.1 History

History of Tata motors

Tata Motors was founded in 1945 as a locomotive manufacturer. Tata Group entered the
commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of
Germany. 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 sport utility
vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata Estate
(1992; a station wagon design based on the earlier Tata Mobile) the Tata Sumo (1994 a 5-
door SUV) and the Tata Safari (1998).

In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit
Daewoo Commercial Vehicles Company later renamed Tata Daewoo.

In 2006 Tata formed a joint venture with the Brazil-based Marcopolo Tata Marcopolo Bus to
manufacture fully built buses and coaches.

In 2008 Tata Motors acquired the English car maker Jaguar Land Rover manufacturer of the
Jaguar and Land Rover from Ford Motor Company.

In 2009 its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality
Award.

On 2 November 2015 Tata Motors announced Lionel Messi as global brand ambassador at
New Delhi to promote and endorse passenger vehicles globally.

On 27 December 2016 Tata Motors announced the Bollywood actor Akshay Kumar as brand
ambassador for its commercial vehicles range.

On 29 April 2019 Tata Motors announced a partnership with Nirma University in

Ahmedabad to provide a B.Tech. Degree programme for employees of its Sanand plant

History of Maruti suzuki motors

Maruti Udyog Limited was founded by the government of India on 24 February 1981 only to
merge with the Japanese automobile company Suzuki in October 1982. The first
manufacturing factory of Maruti was established in Gurugram Haryana in the same year.
Affiliation with Suzuki

In 1982 a license and joint venture agreement (JVA) was signed between Maruti Udyog Ltd.
and Suzuki of Japan. At first Maruti Suzuki was mainly an importer of cars. In India's closed
market Maruti received the right to import 40000 fully built-up Suzuki in the first two years
and even after that the early goal was to use only 33% indigenous parts. This upset the local
manufacturers considerably. There were also some concerns that the Indian market was too
small to absorb the comparatively large production planned by Maruti Suzuki with the
government even considering adjusting the petrol tax and lowering the excise duty in order to
boost sales.

Market liberalization

In 1989 the Maruti 1000 was introduced and the 970 cc three-box was India's first
contemporary sedan. By 1991 65 percent of the components for all vehicles produced were
indigenized. After liberalization of the Indian economy in 1991 Suzuki increased its stake in
Maruti to 50 percent making the company a 50-50 joint venture with the government of India
as the other stake holder. In 2000 Maruti became the first car company in India to launch a
call center for internal and customer services. The new Alto model was released.

In 2003 the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the Wagon R
were upgraded and redesigned. The four millionth Maruti vehicles were built and they
entered into a partnership with the State Bank of India. Maruti Udyog Ltd. was listed on BSE
and NSE after a public issue which was oversubscribed tenfold.
 1.2 Manufacturing plant in India

Tata manufacturing plant in India

The company has four major manufacturing bases in India. These are as follows:
1. Jamshedpur (Jharkhand): Established in1945, the Jamshedpur unit was the company's
first unit and is spread over an area of 822 acres. It consists of two major divisions - Truck
Factory & Engine Factory.

The Truck Division boasts of two assembly lines. The main assembly line, measuring 180m
in length has 20 work stations with a vehicle rolling out every 8 mins. The other line is
dedicated to special purpose vehicles and for meeting the requirements of the Indian Army.

2. Pune (Maharashtra): It was established in 1966 and has a Production Engineering

Division.
To cope with a diverse range of automobiles, four assembly lines have been established, one
each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars (Indica and
Indigo).

3. Lucknow (Uttar Pradesh): This plant was established in 1992 to meet the demand for
Commercial Vehicles in the Indian market. The state of art plant is strongly backed by an
Engineering Research Centre and Service set-up to support with latest technology and cater
to the complexities of automobile manufacturing.
This plant is specialized in the designing and manufacturing of a range of modern buses
which includes Low-floor, Ultra Low-floor & CNG Buses.

4. Pantnagar (Uttarakhand):

The plant began commercial production in August 2007. The plant is spread over 953 acres,
of which 337 acres is occupied by the vendor park.
Tata Motors plans to shift the entire production of its mini truck Ace and the passenger
carrier variant of the vehicle, Magic, to Uttarakhand.

The company is establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra).

Production capacity:
The segment wise production is as follows :
Location Type of vehicle manufactured Production Capacity (Lakh/PA)
Pune Passenger Cars (Indica, Indigo, Marina, Indica Vista) 2.7 L
Pune Commercial Vehicles (MCVs and HCVs, LCVs, Utility vehicles) 2.5 L
Jamshedpur Trucks & Special Purpose Vehicles 1.08 L
Lucknow Buses 0.6 L
Pantnagar (Uttarakhand): Mini Truck (Ace), Passenger Carrier (Magic) 2.25 L

Maruti Suzuki manufacturing plant in India

Maruti Suzuki has two manufacturing facilities in India. All manufacturing facilities have a
combined production capacity of 1,200,000 vehicles annually. The Gurgaon manufacturing
facility has three fully integrated manufacturing plants and is spread over 300 acres
(1.2 km2). The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The
Gurgaon facility manufactures the Alto 800, WagonR, Ertiga, XL6, S-Cross, Vitara Brezza,
Ignis and Eeco. The Gurgaon facility also assembles the Jimny starting from January 2021
solely for export markets. It was reported the Indian-assembled Jimny will be exported to
African markets and countries in the Middle East.

The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km) Initially it had a production capacity of 100,000 vehicles annually but this was
increased to 300,000 vehicles annually in October 2008. The production capacity was further
increased by 250,000 vehicles taking total production capacity to 800,000 vehicles annually.
The Manesar plant produces the Alto, Swift, Ciaz, Baleno and Celerio. On 25 June 2012,
Haryana State Industries and Infrastructure Development Corporation demanded Maruti
Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant
expansion. The agency reminded Maruti that failure to pay the amount would lead to further
proceedings and vacating the enhanced land acquisition.

In 2017, the new Suzuki Motor Gujarat facility was opened. This third facility is not owned
by Maruti Suzuki, but instead wholly owned by Suzuki Motor Corporation. Despite that, the
plant supplied vehicles to Maruti without any additional cost. Located in Hansalpur,
Ahmedabad, the plant has the total annual capacity of 500,000 units

1.3 PRICES

Price- There is no significant change in customers’ preference regarding the price between
Maruti and Tata Motors Cars. The Suzuki cars and Tata Motors have similar prices.

PRICES OF MARUTI SUZUKI CARS

Maruti Suzuki Alto 800 (2.46 - 3.72 lakh) Maruti Suzuki Omni (2.08 - 3.57 lakh )

Maruti Suzuki Eeco (3.80 - 4.25 lakh ) Maruti Suzuki Alto K10 (3.61 - 4.40 lakh)

Maruti Suzuki Celerio (4.41 - 5.68 lakh ) Maruti Suzuki Wagon R 1.0 ( 4.46 - 5.95 lakh )

Maruti Suzuki Ignis (4.83 – 7.22 lakh ) Maruti Suzuki Ritz (4.38 – 7.65 lakh )

Maruti Suzuki Swift( 5.19 – 8.02 lakh ) Maruti Suzuki Baleno (5.64 – 8.96 lakh )
Maruti Suzuki Swift Dzire ( 6.58 - 9.53 lakh ) Maruti Suzuki Ertiga (8.67 – 12.25 lakh )

Maruti Suzuki Gypsy ( 5.71 - 6.37 lakh ) Maruti Suzuki Vitara Brezza( 7.34 – 11.41 lakh )

Maruti Suzuki Ciaz ( 8.32 - 11.10 lakh ) Maruti Suzuki S-Cross ( 8.39 – 12.39 lakh )

PRICES OF TATA MOTORS CARS

Tata Nano GenX (2.47 - 3.43 lakh ) Tata Tiago (4.40 – 6.60 lakh ) Tata Tigor (5.39 – 7.49
lakh )

Tata Bolt (5.25 - 7.85 lakh ) Tata Indica eV2 (4.05 - 5.59 lakh ) Tata Zest (5.82 – 9.89 lakh )

Tata Indigo eCS (5.09 - 6.28 lakh) Tata Sumo Gold (5.26 - 8.93 lakh )

Tata Safari Storme (11.09 – 16.44 lakh ) Tata Xenon XT (9.96 - 10.99 lakh )

Tata Hexa (13.7 – 19.27 lakh ) Tata Nexon (6.99 – 12.70 lakh )

Mileage

Mileage of Tata Motors Cars

Tata Tiago (27 kmpl), Tata GenX Nano (25 kmpl), Tata Indigo eCS (25 kmpl),

Tata Indica eV2 (25 kmpl), Tata Bolt (22 kmpl), Tata Manza (21 kmpl),

Tata Vista (21 kmpl), Tata Aria (15 kmpl), Tata Movus (15 kmpl),

Tata Venture (15 kmpl), Tata Sumo Gold (14 kmpl), Tata Safari Storme (13 kmpl),
Tata Xenon XT(11 kmpl), Tata Safari Dicor (11 kmpl)

Mileage of Maruti Cars

Maruti Suzuki Ciaz (28 kmpl), Maruti Suzuki Baleno (27 kmpl),

Maruti Suzuki Celerio (27 kmpl), Maruti Suzuki Swift DZire (26 kmpl),

Maruti Suzuki Swift (25 kmpl), Maruti Suzuki Ertiga (24 kmpl),

Maruti Suzuki Alto K10 (24 kmpl), Maruti Suzuki Vitara Brezza (24 kmpl),

Maruti Suzuki Ritz (23 kmpl), Maruti Suzuki S-Cross (23 kmpl),

Maruti Suzuki ALTO 800 (22 kmpl), Maruti Suzuki Stingray (20 kmpl),

Maruti Suzuki WagonR (18 kmpl), Maruti Suzuki Omni (16 kmpl),

Maruti Suzuki Eeco (15 kmpl), Maruti Suzuki Gypsy (11 kmpl)

1.4 Resale Value

Though the following parameter depends upon criterion such as maintenance, wear and tear,
engine durability and brand perception, the study suggests that there is no significant change
in customer’s preference regarding resale value of Maruti or Tata Motors Cars.
Corresponding results can be validated by checking the prices from different dealers and
website sources.
Performance:- There is a significant change in customer’s preference regarding
performance of Maruti or Tata Motors Cars. Performance being a qualitative parameter also
holds true grounds for both the brands. In a very critical parameter, Tata Motors cars tend to
have a better performance when compared to Maruti Suzuki cars, which is reflected by the
relatively high mean score. This is one area where Maruti Suzuki can afford to lose.

Maintenance

There is a significant change in customer’s preference regarding maintenance of Maruti or

Tata Motors Cars. This result is justified by the fact the maintenance costs of Maruti Suzuki
in general is very less as compared to Tata Motors cars. The spare parts are not only easily
available but are very affordable also. Another advantage of Maruti Suzuki cars is the
adequacy of technical knowledge available in the unorganized service centres, spread across
the nation resulting in better maintenance.

Financial Services

Since easy financial services and facilities are provided by both the brands with almost same
offers and accessibility, hence there is no significant change in customer’s preference
regarding financial charges of Maruti and Tata Motors Cars.
After Sale Service

This point clearly indicates that customer believe that both Tata Motors and Maruti Suzuki
cars have similar after sale services from authorized company service centres and outlets.
Both the brands have adequate technical staff and machineries for the same. Hence there is no
significant change in customer’s preference between Maruti and Tata Motors Cars regarding
after sale service.

1.5 PROUCDTS OF TATA MOTORS & MARUTI SUZUKI MOTORS

TATA MOTORS

Current
Calendar
model
Model year
introduced
Introduction

Tiago 2016 2020

TIAGO
 Altroz 2020 2020

ALTROZ

Tigor 2017 2020

TIGOR

Nexon 2017 2020

NEXON

Harrier 2019 2020

HARRIER

Safari 1998 2021

SAFARI

Military vehicles
  Tata LSV (Light Specialist Vehicle)
 Tata Mine Protected Vehicle (4×4)
 Tata 2 Stretcher Ambulance
 Tata 407 Troop Carrier
 Tata LPTA 713 TC (4x4)
 Tata LPT 709 E
 Tata SD 1015 TC (4x4)
 Tata LPTA 1615 TC (4x4)
 Tata LPTA 1621 TC (6x6)
 Tata LPTA 1615 TC (4x2)
 Tata LPTA 5252 TC (12x12)
 Tata Sumo 4x4
 Tata Xenon
 Tata 207

Electric vehicles

 Tata Nexon EV
 Tata Tigor EV
 Tata Altroz EV

MARUTI SUZUKI MOTORS

Model Production Image

Wagon R 1999–present

Alto 2000–present
 Swift 2005–present

Ertiga 2012–present

Celerio 2014–present

Ciaz 2014–present

Baleno 2015–present

S-Cross 2015–present

Discontinued models

Model Released Discontinued Image

800 1983 2014

 Omni 1984 2019

Gypsy E 1985 2000

Gypsy King 1985 2017

1000 1990 2000

Zen 1993 2003

Esteem 1994 2010

Baleno 1999 2007

SX4 2007 2014

Swift Dzire 2008 2017

 1.6 Market strategy

Market strategy refers to business overall game plan for reaching prospective
consumers and turning them into customers of their products or services. A
marketing strategy contains the company value, proposition, key brand,
messaging, data on target customer, demographics and other high level elements.

Market strategy of Tata motors

Headquartered in Mumbai Tata Motors (formerly known as TELCO acronym form for TATA
Engineering and Locomotive Company) are an Indian multinational automotive
manufacturing company and a member of Tata group. Products offered by the company vary
from cars, trucks, vans, coaches, military vehicles, sports cars, buses and construction
equipment.

TATA Motors is ranked as 226th in the Fortune Global 500 list of world’s biggest
corporations as of 2016

Segmentation, targeting, positioning in the Marketing strategy of Tata

Motors

Tata Motors does not follow a single marketing approach or formula but it believes that all
members of the community should be served. Brand targets crowd from the rural part to the
metros with its offerings varying from NANO to Jaguar Land Rover segment.
It targets anyone above 4 Lakh p.a. salary, millennial employed as professionals, managers
and all those looking to switch from 2-wheeler to 4-wheeler. The age bracket for brand’s
offering varies from 21-65 years with all Middle class. Upper middle class, High class and
Affluent class in its target category.

Tata Motors offers products such as Tata ACE a mini truck mainly used for agriculture
transport purpose, Tata NANO for the middle class, Tata Indica and Indigo for commercial
purposes and Jaguar in the high-class segment thus creating the image that there’s something
for everyone in its huge line of offerings

Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy
their needs and wants.

Market strategy of Maruti Suzuki motors

Segmentation, targeting, positioning in the Marketing strategy of Maruti

Suzuki –

Having the wide range of models in almost every segment of the automobile market. Maruti
Suzuki offers 16 brands and 150 variants spanning across all segments consisting of Maruti
800, Maruti Zen EstiloMaruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A
Star, Maruti Wagon R, Maruti Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti
Ertiga, Maruti Grand Vitara. Thus serving the diverse range of customers. Brand product
strategy focuses on catering to the needs of almost all the segments from the middle class to
high class.

With cars in the economy segment, mid-range segment luxury and super premium segment
Target group for the brand includes anyone above 4 Lakh p.a. salary, people looking to
switch from 2-wheeler to 4-wheeler, millennials employed as professionals and managers.
The middle class, upper middle class, high class, and Affluent class the age bracket of 21-65
years comprises of its target group.

 Marketing Mix

What is Marketing Mix ??

Dictionary Definition: The marketing mix refers to the set of actions, or tactics, that a
company uses to promote its brand or product in the market. The 4Ps make up a typical
marketing mix – Price, Product, Promotion and Place.

The Marketing mix is a set of four decisions which needs to be taken before launching any
new product. These variables are also known as the 4 P’s of marketing. These four variables
help the firm in making strategic decisions necessary for the smooth running of any product /
organization.

Marketing Mix of TATA MOTORS

Tata motors is a leading automobile brand. It is most widely known for its commercial
vehicles such as buses and trucks. However, TATA motors has also started an excellent
expansion in passenger cars and it is rapidly gaining market share. The Marketing mix of
Tata Motors talks about the 4P of the brand which has helped the brand rise in the automobile
empire.

1. Product in the marketing mix of Tata Motors Tata has a very wide range of products it has
passenger cars, utility vehicles, Trucks, Commercial passenger Carriers and Defence
Vehicles

2. Price in the marketing mix of Tata Motors the prices of Tata motors are generally
affordable acceptable by the general public at large. Tata always have something for the
lower class people with Nano being their trump card. Giving discount every month and
special promotion for certain type of vehicle also one of the strong strategy use by Tata
Motors. Discount can be made from Company’s profit or from dealer’s profit at certain range.

3. Place in the marketing mix of Tata Motors – Tata Motors has an extensive dealer network
covering Indian and International markets. Wherever you are, there is a Tata Motors Sales
and Service dealership close to you. The channel of distribution, physical location, and
dealership method of distribution and sales is generally adopted. The distribution of vehicle
must be in a very systematic way, from the plant to dealership and to end user. This is not
only in India itself but also to the world-wide dealership.

4. Promotion in the marketing mix of Tata Motors – Tata motors promote their products via
Advetising and after sales services

5. People in the marketing mix of Tata Motors – Tata Motors owe our success to the highly
motivated and talented staff. Our recruitment division picks the crème-de-la-crème from
premier universities, management and engineering institutes in India. They put them through
rigorous training programmes to hone their entrepreneurial skills and impart comprehensive
product knowledge.

6. Processes in the marketing mix of Tata Motors – Tata motors follow Balanced Scorecard
Collaborative, Inc for achieving excellence in overall Company performance.

7. Physical Evidence in the marketing mix of Tata Motors – The management of the
company has managed to keep their hopes alive even in this recession and hopes that the
worse is behind Tata Motors recently launched the most awaited car of the year, Tata Nano
and the company has already received 203,000 booking that are fully paid and 70 percent of
the applicants are ready to wait till the end of 2010 for the car to be manufactured.
Marketing mix of Maruti Suzuki motors

Maruti Suzuki Price/Pricing Strategy:

One of the key drivers of volumes of sale for Maruti Suzuki has been its ‘value for money’
strategy this comes from its low cost learning from years of engineering in India. By
providing light weight yet safe cars, Maruti is able to cut down on costs and price its cars
competitively, in some cases undercutting the competition by 7-10 percent. Maruti’s low cost
of ownership, affordable spares, and long service intervals ensure that the pricing strategy of
Maruti is implemented not just at the time of sale but also after the car has been bought. This
gives Maruti an edge and makes it such a popular car company. Thus the pricing strategy in
the marketing mix of Maruti Suzuki is dependent upon the competitors, market dynamics and
the segment catered to.

Maruti Suzuki Place & Distribution Strategy:

Following is the distribution strategy of Maruti Suzuki:

Maruti ‘s service network spans most states of India and is spread across 1400+ cities
manufactured at 2 factories, Manesar and Gurgaon with an annual capacity exceeding 15 lakh
cars per annum. Maruti plans to set up another plant in Gujarat for which it has acquired 600
acres of land. Maruti has around 1800+ sales outlets in all the cities combined and has a
dealership which is wider than such competitors as Hyundai, Tata and Mahindra, even in the
rural landscape.

Maruti Suzuki Promotion & Advertising Strategy:

The promotional and advertising strategy in the Maruti Suzuki marketing strategy is as
follows:

Having decades of presence in India enables Maruti to leverage its barand value and brand
perception well. It also helps Maruti cut down on promotional costs. Maruti uses unique
advertising methods to promote its cars and often ropes in stars and celebrities as brand
ambassadors for various cars models. Maruti has utilized heavily the online promotion space
for the launch of its Brezza, Ignis and S Scross. Maruti also uses traditional advertising
spaces such as newspapers, television, radio, ATL etc. Maruti Suzuki also used pint of sale
and mobile promotions and the message across all the above platforms is focussed on fuel
efficiency, looks, comfort and space for its cars. Hence, a 360 branding approach is followed
in the promotional strategy of marketing mix of Maruti. The ad campaigns often highlight the
huge service network of the brand. Thus, this summarizes the marketing mix of Maruti
Suzuki.

1.7 SWOT Analysis

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person
or organization identify strengths, weaknesses, opportunities, and threats related to business
competition or project planning.

This technique, which operates by 'peeling back layers of the company is designed for use in
the preliminary stages of decision-making processes and can be used as a tool for evaluation
of the strategic position of organizations of many kinds (for-profit enterprises, local and
national governments, NGOs, etc.

It is intended to specify the objectives of the business venture or project and identify the
internal and external factors that are favorable and unfavorable to achieving those objectives.
Users of a SWOT analysis often ask and answer questions to generate meaningful
information for each category to make the tool useful and identify their competitive
advantage. SWOT has been described as the tried-and-true tool of strategic analysis, but has
also been criticized for its limitations

SWOT Analysis of Tata motors

Strengths in the SWOT Analysis of Tata Motors:

1. Tata Motors is one of the most established company in automobile sector in India
2. Tata Motors has a wide & extensive distribution and service network
3. Good market penetration in the taxi & rental segment
4. Expert service professionals available
5. Many associations like Jaguar Land Rover, Hispanso, Macropolo etc increases Tata
Motors' international presence
6. Dedicated engineering and R&D department
7. More than 70,000 employees are present with Tata Motors
8. Highly diversified product portfolio
9. Strong brand legacy owing to parent brand Tata

Weaknesses in the Tata Motors SWOT Analysis:

1. Limited international presence as compared to international car manufacturers

2. Controversies like Singur plant for Nano etc hurt Tata Motors

Opportunities in Tata Motors SWOT Analysis:

1. Expanding automobile market can be a boon for Tata Motors

2. Increasing per capita income and purchasing capability of potential customer base
3. Leveraging customer engagement experience to acquire new customers can be done
by Tata Motors
4. Leveraging mergers and acquisitions to acquire newer technology
5. Tata Motors can boost business by augmenting the distribution and service network in
various countries

Threats in the SWOT Analysis of Tata Motors:

1. Increasing fuel costs

2. Competition from other big automobile giants means reduced market share for Tata Motors
3. Competitive products offering same level features at a lesser price
4. Product innovations and frugal engineering by competitors

SWOT Analysis of Maruti Suzuki motors

Strengths in the SWOT Analysis of Maruti Suzuki:

1. Maruti Suzuki is the largest passenger car company in India, accounting for around 45%
market share
2. Over 12,000 people are employed with Maruti
3. Good advertising, product portfolio, self-competing brands
4. Largest distribution network of dealers and after sales service centres
5. Strong brand value and strong presence in the second hand car market
6. Having different revenue streams like Maruti finance, Maruti Insurance and Maruti driving
schools
7. Over 700,000 units sold in India annually including 50,000 exports
8. Maruti Suzuki launched NEXA showrooms to cater to its premium cars market
9. The company has been recognized by several awards in the automobile segment in India

Weaknesses in the Maruti Suzuki SWOT Analysis:

1. Inability to penetrate into the international market

2. Employee management, strikes, worker wage problems have affected Maruti's brand image
in the past

Opportunities in Maruti Suzuki SWOT Analysis:

1. Developing hybrid cars and fuel efficient cars for the future can be an opportunity
for Maruti Suzuki
2. Maruti can target tapping emerging markets across the world and building a global brand
3. Fast growing automobile market and increased purchasing power

Threats in the SWOT Analysis of Maruti Suzuki:

1. Government policies for the automobile sector across the world

2. Ever increasing fuel prices
3. Intense competition from global automobile brands and cheaper brands can hurt Maruti
Suzuki's business
4. Substitute modes of public transport like buses, metro trains etc

CHAPTER 2: RESEARCH METHODOLOGY

The research has been done to find out which motor company is better TATA Motors or
Maruti Suzuki Motors , the research has been conducted by reviewing some selected
objective . The study has been conducted to find the which motors company is making eco
friendly products, taking CSR initiative and earning more profit.

2.1 OBJECTIVES OF THE STUDY

- To find out which company motor is more eco friendly
- To find out which company do more corporate social responsibility (CSR)
- Comparing the profitability and liquidity ratio of both companies
- To compare the last 3 years profit and find out which company makes more profit
2.2 SAMPLE SIZE AND DATA SOURCES
Data Collection method is an important task in every research process. There are
two types of data which is being used:

 Primary Data:
The primary data for the study has been collected from salaried persons,
business profession with the help of Questionnaire. The questionnaire is
been collected from 30 respondents for the survey.

 Secondary Data:
The secondary data is collected from company manuals, websites, news
articles, books, web portals for the study. The information was also
collected from the past research survey with published sources, online
journals, newspapers, reference books etc.

Objectives

 TO FIND OUT WHICH COMPANY MOTOR IS MORE ECO

FRIENDLY

Eco friendly Initiatives of Tata motors & Maruti Suzuki motors

Tata Motors:
Making Eco-friendly Cars

Tata Nexon, a popular compact SUV car from the Tata Motors stable is going to be the first
Indian car to be part of the End-of-Live Vehicles (ELV) process on an International platform.

Planet Outlook Initiative - October 28, 2020

Tata Nexon, a popular compact SUV car from the Tata Motors stable is going to be the first
Indian car to be part of the End-of-Live Vehicles (ELV) process on an International platform.
Tata Motors has declared that all the data related to handling the components that might be
hazardous while dismantling of the car will be published to the International Dismantling
Information System (IDIS) database.

TATA MOTORS GO GREEN INITIATIVE

Tata Motors begins ‘Go Green’ initiative: To plant a tree for every vehicle sold & serviced

Tata Motors aims to systematically reduce its environmental impact by assessing its footprint
across the whole lifecycle and value chain of its products.

Tata motors along with its channel partners, has announced the launch of its ‘Go Green’
initiative under which, the company, in association with an NGO, will plant a sapling for the
sale of every new commercial vehicle and for every new customer who gets their vehicle
serviced at the company’s dealer workshop and Tata Authorised Service Station. The
company will take care of the sapling and the customer will be awarded a certificate and a
link with the geotagged location of the plantation, thereby allowing the customer to monitor
its status.

Tata Motors states that the initiative will enable the best health of these newly-planted
saplings, which will include a variety of diverse species of fruit-bearing, medicinal and native
trees. The plantation will be spread across various locations in over 10 states of the country,
thereby adding to the green cover of the country.

Tata Motors has announce the collaboration with SankalpTaru where it is actively engaging
with the large base of consumers that the company caters to, in tree plantation drives. The
company will continue to stay abreast of evolving needs in the best interest of future
generations, constantly devising unique, sustainable, and future-ready solutions to tackle
pressing problems,
The company says that the recently launched BS6 product range assures significantly reduced
tail-pipe emissions and it is also working towards a low-carbon strategy. As a signatory of the
RE100 initiative, Tata Motors aims to source 100% renewable electricity by 2030.

TML has planted 1,24,548 saplings (of indigenous varieties) across locations and ensured
their survival rate is significantly high (85%). At few locations, these places have turned into
microhabitats which host varied species of flora and fauna. Our environmental awareness
programmes aim to sensitise young children, and we have been able to reach to 91,025
persons, making these one of the dynamic green initiatives by corporates in India.

Vasundhara – Vruksharopan Abhiyan

Paucity of land for tree plantation got Manav Seva Sangh – our NGO partner in Sanand,
thinking for creative approach. They soon realised that many institutions including schools
have huge pieces of land with long fences, and decided ‘Why not add a bit of greenery along
these long fence boundaries?’ And this way, they started the sapling plantation along these
boundary lines. Water and upkeep were not much of a challenge as the institutions were well-
equipped. These fence gardens not only add to the aesthetics but also attracted butterflies that
were seen after ages.

MARUTI SUZUKI MOTORS GO GREEN INITIATIVE

Air pollution has become one of the largest concerns the world is dealing with, especially
India which happens to have some of the cities with the worst air pollution in the world. This
has led to the global automotive industry to scramble to develop vehicles that can run on
alternative fuel and improve the existing ICE (internal combustion engine) to produce lesser
emissions. India too is set to raise its standards when it comes to automobile emissions –
leaping from the existing BS-IV norms to BS-VI starting 1st April 2020.
Some of the largest car manufacturers are currently in the process of making a smooth
transition from BS-IV to VI, while some have already launched updated models. Maruti
Suzuki recently launched the BS-VI compliant models of Baleno and Alto. The manufacturer
shared with us its initiatives towards a greener future of mobility and the environment.

1. Launch of BS-VI compliant cars: Petrol BSVI vehicles emit 25% lower NOx – a major
contributor to air pollution. The manufacturer plans to progressively upgrade its entire
product range (excluding diesel) to BS-VI well in time.

2. National energy security and emission goals: Maruti Suzuki believes that aligning with
the government’s energy security and emission goals requires multiple technologies, fuels,
and powertrains. With this belief, Maruti has been working on offering customers a choice of
fuel options like CNG and Smart Hybrid vehicles. Maruti Suzuki was the first in India to
introduce factory-fitted CNG cars in 2010. Today it offers seven CNG models – Alto 800,
Alto K10, WagonR, Celerio, Dzire, Eeco, and Super Carry.

3. Lowering of greenhouse gases:

Maruti Suzuki has captive power plants at Manesar and Gurgaon Approximately 95% of the
total electricity consumed by the company is generated in-house through natural gas (cleaner
fuel) based captive power plants. Remaining 5% is from solar and power grid. Use of natural
gas for generation of electricity has helped in reducing the CO2 emission by almost 50%
compared to a thermal power plant where coal is used.
In the FY’19, the Company implemented several kaizens in its manufacturing facilities
leading to reduction of 4,932 tonnes of CO2. With respect to green area enhancement, the
Company planted more than 2,000 trees in Gurgaon, Manesar, and Rohtak.

The Company is gradually reducing its inventory of R-22 refrigerant, which is currently
contained in condensers, chillers and air-conditioning units and intends to procure equipment
with only non-ODS refrigerants. During FY 18-19, there was a reduction of 85 tons in total
ODS inventory as compared to the previous year.

4. Improvement in fuel efficiency key to lowering CO2 emissions: Maruti Suzuki cars are
amongst most fuel-efficient cars in the market today and hence, their emissions are the least
too. With focused efforts, Maruti Suzuki has been successful in bringing down the weighted
average CO2 emission by over 11.6% in the last five years.

5. Future Mobility: Maruti Suzuki is committed to launching Electric vehicle in India. The
Company is road testing 50 EV prototypes to suit the Indian driving conditions. 50 Electric
Vehicles prototypes have been developed exclusively by Suzuki Motor Corporation, Japan
and built at Maruti Suzuki, Gurugram facility, as our commitment to Make in India.

This extensive real-life usage of the vehicles in multiple terrains and climatic conditions will
help the company get valuable insights that will help in validation and successful launch of
Electric Vehicle technology in India.

Testing of these vehicles will also help Maruti Suzuki to gather critical inputs based on
customer perspectives and real-life usage. This will help to create a reliable and suitable
Electric Vehicle to delight Indian customers.

6. Green Logistics: The use of railways for transporting finished cars is another eco-friendly
initiative that makes us proud. In the last five years, around 5 lakh cars have been transported
all over the country through rail mode offsetting over 4000 tonnes of CO2 emissions. The
company is now using around 30 rakes for transportation of its cars, of which more than half
include flexi-deck auto-wagon rake, specially designed by the company.

How Maruti Suzuki is taking the eco-friendly road ??

Every time you send your car for a proper cleaning, you could be using 120 litres of water per
wash. That's how much the country's biggest car maker with the most market share (47%),
Maruti, claims to save per car when customers opt for dry-wash. Today, 488 service stations
across the country use dry-wash bio-degradable chemicals, 414 use mechanised wash, which
saves about 60 litres per car. To put this in perspective, Maruti has 3086 workshops across
1478 cities, serving 17 million customers and has reduced water consumption by around 500
crore litres per annum.

The maker of Baleno, Ciaz, Swift, Alto, and the iconic 800, among others — has also
aggressively promoted factory-fitted CNG car models. It is encouraging buyers to 'go gas'
despite the revolting thought of waiting in long queues in one of the handful of stations that
provide a top-up. Maruti, however, is hoping that with more stations, better product, resale
value and efficiency, more buyers will choose CNG over other gas guzzlers. Ranjit Singh,
general manager (CSR & Sustainability), Maruti Suzuki says, “minimising all environmental
impacts of our products, manufacturing (plants) and supply chain operations – in the entire
value chain” is what going green means to Maruti Suzuki.

However while customers want to go green, they don't necessarily want to pay more. In a
market obsessed with mileage, paying extra for a green sticker on the windscreen is too high.
Maruti knows this. It's, after all, the company that gave us the popular 'Kitna Deti Hai'
campaign. One program that eventually leads to better mileage and green-age is 'One Gram
One Component', an initiative for car weight and material consumption reduction. Every
year, Maruti employees share 3 to 4 lakh suggestions through the Employee Suggestion
Scheme; most of these fall into the product weight reduction category. Quite a few have been
implemented. Who's the biggest loser? The Alto K10 lost 10 kg and the Swift 40 kg resulting
in an increase of fuel efficiency by 3.15 kmpl and 1.84 kmpl, respectively. So, you see, there
are no losers when you go green.

Conclusion

Both Tata motors & Maruti Suzuki motors are taking the great initiative towards
reducing the pollution causes due to making pattern of the motors car , both companies
are now trying to make the motors cars which is more suitable for the environment &
which will cause less pollution or no pollution & due the modern era trend both
companies are planning & taking initiative to produce the electric cars which will give
opportunity to both companies to survive in this competitive markets of automobile
industry .

 CORPORATE SOCIAL RESPONSIBILITY (CSR) OF TATA

MOTORS AND MARUTI SUZUKI MOTORS

Tata Motors Corporate social responsibility (CSR) activity

Tata Motors – leading automobile brand, has released its Corporate Social Responsibility (CSR)
Report for FY 2019-20. Despite experiencing extraordinary business downturn over the past five year
and continuous losses, the company continued its commitment to serve the national interest by
allocating unprecedented funds for Corporate Social Responsibility.

The total social investment in FY 2019-20 was Rs. 25.19 crore of which 22.91 crore were toward
CSR Programmes & Projects, drinking water projects that are mainstreamed in CSR agenda and one
time investment towards disaster response.

In line with the Tata Group’s vision of promoting community well-being, Tata Motors has actively
implemented initiatives under its key thrust areas of Health (Aarogya), Education (Vidyadhanam),
Employability (Kaushalya) and Environment (Vasundhara) and the Rural Development. The scope
and the depth of the CSR programmes of the company have consistently increased and has positively
touched 8.3 lakh lives in FY19-20, out of which nearly 41% belong to the SC and ST communities.

In FY19-20, the programmes designed and implemented by Tata Motors positively impacted over 8.3
lakh lives. What is most encouraging is that these programmes recorded improved outcomes with
their outreach to the most deserving sections of the population, including over 40% from SC/ST.

Tata Motors Releases Its Annual CSR Report FY 2019-20

Tata Motors has released its FY 2019-20 Corporate Social Responsibility (CSR) Report. In
line with the Tata Group’s vision of promoting community well-being, Tata Motors has
actively implemented initiatives under its key thrust areas of Health (Aarogya), Education
(Vidyadhanam), Employability (Kaushalya) and Environment (Vasundhara) and the Rural
Development. The scope and the depth of the CSR programs of the company have
consistently increased and has positively touched 8.3 lakh lives in FY19-20, out of which
nearly 41% belong to the SC and ST communities.
Speaking on this occasion, Guenter Butschek, CEO & MD, Tata Motors said, “As we enter
the 75th year of Tata Motors, I share with immense pride that our collective CSR efforts over
the last decade have made a positive difference to the lives of 5 million people across India.
Our role has progressively grown from being just a resource provider to a facilitator and now
an enabler for driving positive change. This is a true testament to ‘innovating mobility
solutions with passion to enhance quality of life’ philosophy rooted in our mission statement.
We will continue our endeavor towards uplifting the unprivileged communities and improve
their quality of life by making them aware and self-reliant.”

Below is a snapshot of the company’s CSR initiatives across key pillars:

1. BUILDING AND STRENGTHENING HEALTHCARE FACILITIES

‘AROGYA’
In FY20, 3.9 lakh people benefitted from the health initiative ‘Aarogya’, which aims to curb
malnutrition through facilitation of clean drinking water to remote communities and by
provision of preventive/ curative health services. Over 74% of the acute undernourished
children treated by Tata Motors are now in a healthy status. Water security ensured for
around 21,666 individuals through company’s National Drinking Water Programme titled
‘Amrutdhara’.

2. AUGMENTING EDUCATION SYSTEM ‘VIDYADHANAM’

Over 1.5 lakh students were engaged through the education initiative ‘Vidyadhanam’, which
focuses on improving the academic performance of secondary/college going students through
targeted approach by instituting need-based financial support, special coaching classes, etc.
These initiatives have led to an improvement in pass percentage from 55% in 2015 to 80% in
FY20. More than 44% students scored above 60% in their 10th standard pre-board exams in
FY20.

3. ENHANCING PROGRAMMES ON EMPLOYABILITY

‘KAUSHALYA’
Over 1 lakh people were trained through under employability initiative ‘Kaushalya’, which
focuses on training unemployed youth in three segments viz. auto trades, non-auto trades and
agriculture & allied activities. 63% of the people have found employment (or are self-
employed) resulting in an annual increase in family income by ₹1 lakh.

The company also engages with community based groups of women and farmers and helps
them earn supplementary income through agriculture and allied programmes.

4. NURTURING SUSTAINABILITY THROUGH ENVIRONMENTAL

PROGRAMMES

‘VASUNDHARA’
Close to 1.2 lakh new saplings were planted across Tata Motors plant locations through and
ensured their survival rate remained significantly high (i.e. 71%) despite prolonged rains last
Monsoon. Through the environmental awareness programmes, over 91,000 people (mostly
young children) were sensitized about this cause. The company also encourage communities
to adopt alternate sources of energy.

Maruti Suzuki Motors Corporate social responsibility (CSR) activity

As a part of its CSR initiatives, Maruti Suzuki has taken significant steps in the areas of road
safety, skill development, community development and employee engagement programs.

True to being a pioneer in the Indian automobile sector, Maruti Suzuki was the first company
to promote safe driving and training in the country. Maruti Suzuki envisions road safety in its
flagship Corporate Social Responsibility arena.

In partnership with its dealers, Maruti Suzuki has created Maruti Driving Schools in urban
neighborhoods to enable middle class families to learn car driving. At the MDSs, Maruti
Suzuki has created a sustainable business model to impart high quality driving training at the
doorstep, made possible by localized simulators, professional management and monitoring.
To widen the impact of MDS, MSIL also sponsors training of underprivileged youth who
aspire to be drivers.

The company is also involved in community development services around the Manesar unit
and has taken responsibility for four villages in Manesar. One of the many initiatives the
company has undertaken is complete infrastructure upgradation of primary and middle
schools in these villages.

MSIL is also setting new benchmarks for volunteering efforts by its employees and expects to
be able to enlist their families and friends as well. Called e-Parivartan, the ‘e’ standing for
employee The e-Parivartan programme identified NGOs across the national capital region
where Maruti Suzuki employees could go and volunteer on Sunday mornings.

The programme offers a bouquet of volunteering options – mentoring, teaching, community

development, raising environmental awareness and organising health camps. Since its launch
in November last year, the programme has enabled Maruti Suzuki employees to put in over
3,200 hours of active volunteering.

Maruti Suzuki India Limited spent over Rs. 168.2 Crore (Rs. 1,682 million) on Corporate
Social Responsibility (CSR) projects in FY 2019-20, utilising the full budget for the purpose,
company’s annual report 2020 said.

Maruti Suzuki India Limited is developing a 100-bed hospital in Sitapur, Gujarat. The first
phase of the project with 50 beds is expected to be operational by April 2021. The facility is
being developed in the partnership with Ramanbhai Foundation, Ahmedabad.

Maruti Suzuki strives to be a people’s company, and for that, it needs to take care of
everyone. Not only is it completely dedicated to the customers, but also to the communities
around the facilities. As a part of the community development programme, Maruti Suzuki
identify their needs through formal surveys, one to one contact, and by engaging with the
leaders. Their CSR programmes tackle social issues at both local and national level in order
to develop scalable, impactful, and sustainable social programmes that leave a visible impact
for the future generations.

POLICY ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

Title and Applicability

1. Maruti Suzuki India Limited (‘Company’) has developed its Corporate Social
Responsibility Policy (‘Policy’) in accordance with section 135 of the Companies Law 2013
and the rules made there under.
2. The Policy shall apply to all CSR programmes of the Company.
CSR Approach and Priorities
CSR activities will primarily be in the areas of village development, road safety and skill
development.

To create a visible and lasting impact, the Company will focus on a few CSR programmes
rather than spread resources thin over several projects.

In the area of road safety, while the Company has set up several driving schools in
collaboration with its dealers, their number is far from sufficient considering the needs of
society and the low level of consciousness about road safety in India. The Company will
scale up the number of driving training schools, and take other initiatives to expand quality
driving training in the country.

The Company will encourage and recognise its employees for volunteering in the community
by serving and sharing their expertise and skill.

Conclusion

Both Motors companies are taking more and more CSR initiative work under them and
spending lots of money in conducting the CSR activity in India.

As per the financial report 19-20 of Top companies for CSR in India 2020

Tata Motors company spent 22.9 crores of rupees for CSR and Maruti Suzuki India
Ltd. Company spent about INR 168 crores in FY 2019-20.
As per the figure Maruti Suzuki Motors are doing more CSR work as compare to Tata
motors , however we cannot ignore that Tata motors has many different types of
business venture like Tata steel , Tata Chemicals & etc from which their figure amount
of CSR spending increases. But here the project is related to comparison of their
Motors companies, so here we can say that Maruti Suzuki motors has upper hand in
CSR activities in recent years.

CHAPTER 3: REVIEW OF LITERATURE

A literature review is something which presents the current knowledge about the information
of a particular topic. It has an objective to give the viewer updated information which
presents literature on a particular topic.The literature review also fills the gaps between
existing knowledge and the knowledge to explore. This chapter also deals with the earlier
studies relevant for the present topic of research.

Mathur Shivam & Agarwal Krati (2016) Ratio’s are an excellent and scientific way
to analyze the financial performance of any firm. The company has received
many awards and achievements due to its new innovations and technological
advancement. These indicators help the investors to invest the right company for
expected profits. The study shows that Maruti Suzuki limited is better than Tata
motors limited.

Agarwal, Nidhi (2015) the study focus on the comparative financial performance
of Maruti Suzuki and Tata motors ltd. The financial data and information required for
the study are drawn from the various annual reports of companies. The liquidity and
leverage analysis of both the firms are done. To analyze the leverage position four
ratios are considered namely, capital gearing, debt-equity, total debt and
proprietary ratio. The result shows that Tata motors ltd has to increase the portion of
proprietor’s fund in business to improve long term solvency position.

Kumar Sumesh & Kaur Gurbachan (2014) Automobile sector is the dominant
player in economy of world. After liberalization Indian automobile industry has
emerged as a major contributor to India’s GDP. The study identified that there is no
significant in the means score of various financial ratios of Maruti Suzuki and Tata
motors but in meeting their long term obligations and efficacy of utilizing the assets
show the significant difference in the efficiency of both the firms.

Daniel A. Moses Joshunar (2013) the study has been conducted to identify the financial
strength and weakness of the Tata motors Ltd. using past 5 year financial statements.
Trend analysis & ratio analysis used to comment of financial status of company. Financial
performance of company is satisfactory and also suggested to increase the loan levels of
company for the better performance.

Sharma Rashmi, Pande Neeraj & Singh Avinash (2013) for understanding how
social media monitoring can help diving the consumer decision & also study. The
functions of social media i.e. monitor, responses amplify and lead at maruti Suzuki
India ltd. The researcher had discussion with social media team median managers for
collecting data & also visited the official social media sites of MSIL.

Singh Amarjit & Gupta Vinod (2012) explored an overview of automobile industry.
Indian automobile industry itself as a manufacturing hub and many joint ventures
have been setup in India with foreign collaboration. SWOT analysis done there are
some challenges by the virtue of witch automobile industry faces lot of problems and
some innovative key features are keyless entry, electrically controlled mechanisms
enhanced driving control, soft feel interiors and also need to focus in future on like
fuel efficiency, emission reduction safety and durability
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

Data analysis involves scientific data which helps to record data, find patterns in the data and
the data interpretation involves explaining the data and trends in the market.The level of
satisfaction of professionals has been analyzed with the help of different statistical tools and
methods. The collection of data consist of both quantitative and qualitative measures.

 PROFITABILITY RATIO ANALYSIS OF TATA MOTORS &

MARUTI SUZUKI

What Are Profitability Ratios?

Profitability ratios are a class of financial metrics that are used to assess a business's ability to
generate earnings relative to its revenue, operating costs, balance sheet assets, or
shareholders' equity over time, using data from a specific point in time.

What Do Profitability Ratios tell us??

For most profitability ratios, having a higher value relative to a competitor's ratio or relative
to the same ratio from a previous period indicates that the company is doing well.
Profitability ratios are most useful when compared to similar companies, the company's own
history, or average ratios for the company's industry.

TATA Motors

PROFITABILITY 2020 2019 2018

RATIOS

Net Profit Margin (%) -16.59 2.91 -1.75

Return on Equity (%) -39.64 9.11 -5.13

Total Debt/Equity (X) 1.14 0.79 0.81

Asset Turnover Ratio (%) 70.18 113.61 99.35

 Maruti Suzuki Motors

PROFITABILITY 2020 2019 2018

RATIOS

Net Profit Margin (%) 7.47 8.71 9.68

Return on Equity (%) 11.66 16.25 18.49

Total Debt/Equity (X) 0.00 0.00 0.00

Asset Turnover Ratio (%) 120.87 136.68 134.34

 Net profit Margin

Net profit margin is the ratio of net profits to revenues for a company or business segment.
Net profit margin is typically expressed as a percentage but can also be represented in
decimal form. The net profit margin illustrates how much of each dollar in revenue collected
by a company translates into profit.

Formula

Net Profit Margin = (Net Profit ⁄ Total revenue) x 100

As we see above table we can see that the net profit margin of Tata motors is (-16.59) in year
2020, (2.91) in year 2019, (-1.75) in year 2018 & the net profit margin Maruti Suzuki motors
is (7.47) in year 2020, (8.71) in year 2019, (9.68) in year 2018, so we can say that Maruti
Suzuki motors has upper hand in year 2020, 2019 & 2018 as the net profit ratio is in positive
as compare to Tata motors ratio.
  Return on Equity
Return on equity (ROE) is a measure of financial performance calculated by dividing net
income by shareholders' equity. Because shareholders' equity is equal to a company's assets
minus its debt, ROE is considered the return on net assets.

Formula
=Net income/shareholders equity

ROE of tata motors is (-39.64) ,9.11, (-5.13) in the years 2020,2019 and 2018 respectively
and ROE of Maruti Suzuki motors is 11.66, 16.25, 18.29 respectively in the years 2020,2019
and 2018 .
So as per the ratio we can see that Maruti Suzuki motors ROE is greater than of tata motors
so suggestion is that people to invest in Maruti Suzuki motors.

 Total Debt/Equity

The debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s
financial statements.

The ratio is used to evaluate a company's financial leverage. The D/E ratio is an important
metric used in corporate finance. It is a measure of the degree to which a company is
financing its operations through debt versus wholly-owned funds. More specifically, it
reflects the ability of shareholder equity to cover all outstanding debts in the event of a
business downturn.

Debt to equity ratio

= Short term debt + long term debt + other fixed payment /shareholders equity

Tata motors debt to equity ratio is 1.14, 0.79 ,0.81 respectively in the years 2020 , 2019 and
2018 and debt to equity ratio of Maruti Suzuki motors is equal to 0 , so the Maruti Suzuki
motors is more relied on borrowing to run the finance operations and Tata motors has the
average debt to equity ratio , so here Tata motors doesn’t much relied on borrowing , so we
can say that Tata motors here is more stable than Maruti Suzuki motors in the case of Debt to
equity ration.

 Asset Turnover Ratio

The asset turnover ratio measures the value of a company's sales or revenues relative to the
value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with
which a company is using its assets to generate revenue.

The higher the asset turnover ratio, the more efficient a company is at generating revenue
from its assets. Conversely, if a company has a low asset turnover ratio, it indicates it is not
efficiently using its assets to generate sales.

Asset turnover ratio

=Net sales /average total assets

Tata motors ATR is 120.87 , 136.68 and 134.34 respectively and Maruti Suzuki motors ATR
is 70.18, 113.61 and 99.35 , so as per the ratio we can say that Tata motors has good asset
turnover ratio and good advantage of assets as compare to Maruti Suzuki motors.

Liquidity Ratio Analysis of Tata motors & Maruti Suzuki

Tata Motors

LIQUIDITY 2020 2019 2018

RATIOS
Current Ratio 0.53 0.58 0.62

Quick Ratio 0.38 0.37 0.38

Inventory Turnover Ratio 11.46 14.84 10.38

 Maruti Suzuki Motors

LIQUIDITY 2020 2019 2018

RATIOS
Current Ratio 0.75 0.87 0.51

Quick Ratio 0.46 0.64 0.31

Inventory Turnover Ratio 23.52 25.87 25.23

 Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current
debt and other payables. The current ratio is also called the working capital ratio.

Current Ratio= Current liabilities

Current assets

The current Ratio of Tata Motors is 0.53, 0.58 and 0.62 respectively in the year 2020,
2019 and 2018 and for Maruti Suzuki is 0.75, 0.87 and 0.51 respectively in the year 2020,
2019 and 2018 , from the above table we can say that Maruti Suzuki has good current
ratio in the year 2020 and 2019 because their ratio is close to 1 which is consider good
current ratio and Tata motors has upper hand in the year 2018.

 Quick Ratio
The quick ratio indicates a company’s capacity to pay its current liabilities without
needing to sell its inventory or get additional financing

The higher the ratio result, the better a company’s liquidity and financial health; the
lower ratio, the more likely the company will struggle with paying debts.

Quick Ratio = Current Assets – Inventory

Current Liabilities
 The quick ratio of Maruti Suzuki in the year 2020 & 2019 is 0.46 and 0.64
respectively which is better than the Tata motors quick ratio in the year 2020 & 2019
i.e. 0.38 and 0.37 and in the year 2018 Tata motors has a better Quick ratio i.e. 0.38
than Maruti Suzuki ratio 0.31 . So we can say that Maruti Suzuki has advantage in the
Quick ratio comparison of both companies.

 Inventory Turnover Ratio

Inventory turnover is a measure of the number of times inventory is sold or used in a
time period such as year. It is calculated to see if a business has an excessive
inventory in comparison to its sales level.

= Cost of goods sold

Average Inventory

The ITR of Maruti Suzuki in the year 2020, 2019 & 2018 is 23.52 , 25.87 & 25.23
respectively which is usually higher than the ITR of Tata motors i.e 11.46 , 14.84 &
10.38 respectively . Higher the company’s inventory turnover ratio in a given year,
the better it is for the company’s future. So the conclusion is Maruti Suzuki motors
here wins the race as their ITR is higher than the Tata Motors.
  Comparing the last 3 years profit of Tata motors and Maruti Suzuki
motors
Rs in Crores
Company Name Profit in Profit in Profit in
2020 2019 2018

TATA Motors 7298 2020 1034

Maruti Suzuki 5650 7500 7721

Motors

The above table consist net profit amount of Tata motors & Maruti Suzuki motors of the
financial year 2020 , 2019 & 2018 respectively

With the help of above table we can see that

In the year 2020 Tata motors profit amount was 7298 crores which is high as compare to
Maruti Suzuki motors profit amount 5650 crores , so the Tata motors was more profitable
than maruti Suzuki motors in year 2020 .

In the year 2019 Tata motors profit amount was 2020 crores an maruti Suzuki motors amount
was 7500 crores, which shows that maruti Suzuki motors was the profitable one in the year
2019

In the year 2018 Tata motors profit was 1034 crores & maruti Suzuki motors profit was 7721
crores, so by the above Data we can say that Maruti Suzuki motors was profitable one as
compare to Tata motors .

If we see the combine the Data of all 3 years than Tata motors total profit is 10622 crores an
Maruti Suzuki motors total profit is 20871 crores, so overall we can say that Maruti Suzuki
motors is the more profitable motors company.
  Public survey on Tata motors & Maruti Suzuki Motors

The survey was collected from 30 professionals from Mumbai. They were categorized
through age, gender, qualification etc. the demographic variables is of gender income and
various aspects which are considered in the survey

Question

 Age wise Classification

The survey age group consist 1 individual from 18-20 years age group, 27 peoples from 20-
30 years age group and 2 persons from 50 & above age group.
  Do you own car??

As per the survey out of 30 people’s 20 Individuals owns the car or anybody in his/her family
is owns the car, 10 Individuals were there which doesn’t have the cars .

 Which company car do you own??

As per the survey 8 peoples have Maruti Suzuki motors cars , 7 peoples owns Tata
motors cars and 6 individuals have cars of any other automobile company and 9
individuals are there who doesn’t own any car .
  Does the company’s past financial performance affect your final
decision??

As per the survey company financial past performance doesn’t matter to people too much
while buying the car, as we can see that 18 peoples Voted for not too much option & 6
peoples have Voted for not at all an significantly affect option respectively .

 Do you have faith in Indian car manufactures or o you prefer

multinationals car manufactures??

 It is good to see that people have chosen the Indian car manufacturers over the
international one , 17 peoples has Voted for indian car manufacturer & 6 for
multinational manufacturer & for remaining 7 peoples the car manufacturer company
doesn’t matters .

 According to you which company does more Corporate social

responsibility (CSR)

It is surprise to see 22 peoples have Voted for Tata motors and only 8 peoples have
Voted for maruti Suzuki motors , however in reality maruti Suzuki motors are doing
more CSR activity as compare to Tata motors , I think most people has Voted for Tata
motors because due to the social media influence & news about Tata group CSR
work.
 According to you which company product is more Eco friendly

Eco friendly product will be the key topic in the coming future for all the automobile
manufactures because it will show that company will survive in coming future or not
in this competitive market as most of the peoples nowadays choose eco friendly
products so it will be main topic , as per the above survey 21 peoples has Voted for
Tata motors & 9 peoples has Voted for Maruti Suzuki motors, however it a harsh
decision , both motors are taking great initiative to make the product more eco
friendly.
 Which kind of car you prefer??

Many types of cars are available in the automobile market , for example Petrol engine,
diesel engine , electric car & etc. 40% of people Voted for petrol engine car Though
the price of the petrol goes higher and higher still most of people goes for Petrol
engine car because petrol is easily available & people still doesn’t have alternative
option for that , however in coming future people will have alternative option which
will be the Electric car that’s why here 33.33% people Voted for electric car &
23.33% people Voted for diesel engine car and 1 person Voted for any other model.
 According to you which company earn more profit??

Profit is the main thing that every company wants to earn, profits shows the financial
position, stability & future of the company , profit is the key component for which
every company conduct its business ,in easy words “ if there is no profit there will be
no business” .

As per the survey result 63.3% peoples things that Tata motors is the company which
earn more profit & remaining 36.7% peoples thing it is a Maruti Suzuki motors which
earns more profit , however in reality as per my research by collecting the data of
profit of last 3 years of both the companies it is proven that Maruti Suzuki motors is
the one which earns more profit as compare to Tata motors .
CHAPTER 5: CONCLUSION
I would like to suggest that people should go for Maruti Suzuki motors because it is
more profitable than Tata motors , it has good resale value & they are taking great
initiative to produce Eco friendly product & also they are taking great steps to resolve
the social issue by their CSR activities in Urban area as well as in Rural areas , so I
would suggest to go Maruti Suzuki motors to enjoy in the present and future.

CHAPTER 6: BIBLIOGRAPHY
https://en.m.wikipedia.org/wiki/Tata_Motors

https://en.m.wikipedia.org/wiki/Maruti_Suzuki

https://www.slideshare.net/mobile/GANESHAWATADE/comparative-study-of-maruti-
suzuki-and-tata-motors-with-reference-to-after-sales-service

www.pimrindore.ac.in › vol4...PDF

A Comparative Study of Consumer Preference Between Tata Motors

www.equitymaster.com › compare

Compare Tata Motors with Maruti Suzuki - Equitymaster

tradebrains.in › case-study-tata-mot...

Case Study: Tata Motors Vs Maruti Suzuki -Trade Brains

www.moneycontrol.com › ratiosVI

Tata Motors Key Financial Ratios, Tata Motors Financial Statement

www.moneycontrol.com › ratiosVI

Tata Motors Key Financial Ratios, Tata Motors Financial Statement

www.moneycontrol.com › ratiosVI

Maruti Suzuki India Key Financial Ratios, Maruti ... - Moneycontrol

www.marutisuzuki.com › about-us

Sustainability - Maruti Suzuki India Limited

www.tatamotors.com › uploadsPDF

Annual CSR Report : 2019-20 - Tata Motors

www.marutisuzuki.com › about-us

Corporate social responsibility (CSR) - Maruti Suzuki

m.economictimes.com › articles...

Web results

How Maruti Suzuki is taking the eco-friendly road - The Economic ...

www.tatamotors.com › vasundhara