SUMMER TRAINING PROJECT REPORT

ON
“MARKETING STRATEGY OF TATA MOTORS PVT. LTD.”

Submitted To:

Department of Management studies Institute of Management Studies,

Noida, Affiliated To: C.C.S. University, Meerut for the Partial Fulfillment

of the award of the Bachelor Degree of Business Administration

Submitted To: Submitted By:

Prof. Shalini Pathak Vaibhav Gupta

Assistant Professor ROLL NO-R1709191633

BBA-VIth Sem.

DECLARATION
1
I , Vaibhav gupta student of BBA here by declare that the project report titled

“marketing stratergy of TATA motors pvt. Ltd” is completed under the guidance of

Prof. Shalini Pathak (Assistant Professor) as part of Project Report is my original work

for the partial fulfillment of the requirement of Bachelor of Business Administration

Degree.

PLACE ………………. DATE……………

VAIBHAV GUPTA
Roll no.- 1709191633
BBA(2017-2020)

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 ACKNOWLEDGEMENT

I , Vaibhav Gupta , BBA Student in IMS, Noida,is highly grateful to all those who
guided me in completing this project.
My training at Tata Motor Ltd. was extremely enriching. I was given an opportunity to work
in close association with senior executive and was benefited tremendously with the
interaction I had with them during the course of our project.

During my training period I got insights into the motor sector and an opportunity to
understand the mechanics of how the work is done in a vehicle company. Study of the
distribution models employed in the industry was also extremely enlightening.

I would like to extend my heart-felt gratitude to Mr. Rohit Kumar ( sales Manager) & Prof.
Shalini Pathak(Assistant Professor) providing an opportunity to work in this organization.

Vaibhav Gupta
ENROLLMENT NO. 170991633
BBA(2017-2020)

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 EXECUTIVE SUMMARY

The main objective of the study was to examine the psychographies of small size car

customers and to know the factors which play important role before making purchase

decesion. The findings that came out were that the Respondents gave much worth to the

performance of the vehicle and their knowledge of cars was outstanding, they knew all the

cars available in a particular car segment like which car belongs to which segment.Our study

is limited to small car segment. Other most important finding was that the influence of the

family is very much on the purchase decision. Family affected the purchasing decision of the

customerthe most after that was the influence of friends and media.

In the end ,conclusion came out to be that the performance of the vehicle is most

important. Other factors like cost, style , brand name etc. were considered not very important.

Since most of the customers give importance to the performance the main aim of the

company should be to produce energy efficient vehicles and give more worth to the

customers. The customers will not fear to shell out some extra money if the vehicle has much

to offer than any other car in the same segment.

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 TABLE OF CONTENTS

1. Objective of the Study 5-6

2. Research Methodology 7-10

3. Introduction 11-20

4. Company Profile 21-64

5. Data Analysis & Findings 65-80

6. Recommendations & Suggestions 81-86

7. Limitations 87-88

8. conclusions 89-91

9. Bibliography 92-93

10. Annexure 94-97

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2.1 SIGNIFICANCE

The main significance of the study to analyze the strategies generally opted by
dealers and to focus on the Marketing mix of TATA Motors.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

This project is useful to know the buying behavior of car owners.

2.3 OBJECTIVES

1. Examine the psychographics of small size car customers.

2. To probe the buying behavior of car owners.
3. To find people expectations or satisfaction regarding the small cars.
4. To judge the awareness level of small cars.

2.4 SCOPE OF THE STUDY

The research aims at finding the attitude of people towards the different brands of

cars, a conclusive research was conducted. The data collection form was designed in

the form of a standard questionnaire because it is more reliable than unstructured

format.

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 A research design is the arrangement of condition for collection and analysis

of data in a manner that to, combine relevance to research purpose with

economy in procedure.Research Design is conceptual structure within

which research is conducted. It constitutes the blue print of collection,

measurement and analysis of date. Research Design is needed because it

facilitates the smooth sailing of various research operations, thereby

making research as efficient as possible yielding maximum information

with minimum time, effort and money. Research Design stands for

advance planning of methods to be used for collecting relevant data and

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techniques to be used in the analysis .The design helps researcher to

organize his ideas whereby it will be possible for him to look for flaws

and inadequacies.

Sources of Primary and Secondary data:

The major aim of the project was to analyze the Strategies of TELCO

and to study the consumer-buying behavior for small car customers.

For the first part secondary data was collected from various sources that

included website of TELCO and trade journal that were collected from

TELCO’s Delhi Office.

By reducing the chance or the sample to influence results through different

questions and through different judgment of answers and what to record, the

structured questionnaire produces more reliable results i.e. if the research

project is repeated in the same manner, similar results will be obtained.

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Most of the questions asked in the questionnaire were closed ended with

a few open-ended questions also, to know consumers general views.

Some questions are designed for the purpose of cross checking the

sample genuineness in filling the questionnaire.

For the purpose of analysis, ranking scale is used to rank the preferences

of attributes of the customers. (Semantic differential scale is used to

understand the images of brands of cars as perceived by the consumers.

This scale is used because it permits the development of descriptive

profiles that facilitates the comparison of competitive items.)

Universe: The universe is entire group of items the researchers wish to

study and about which they plan to generalize. For this, the universe
consists of people of Delhi who own small car. Selecting the sample for
this project, a probability sampling method is used. Probability sampling
method is those in which every item in the universe has a known chance

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of being chosen in the sample. Here the sample size consists of 157

residents of Delhi. The probability sampling is preferred because:

 It is the only sampling method that provides essentially unbiased

estimates having measurable precision. If the investigator requires

this level of objectivity, then some variant of probability sampling is

essential.

The probability sampling permits the researchers to evaluate in

quantitative terms, the relative efficiency of alternate sampling

techniques in a given situation. Usually this is not possible in non-

probability sampling. Probability sampling used is random cluster

sampling.

Data Collection : Data has been collected from the primary and the

secondary approaches.

Locale : Here the universe of the study is all the people working and

living in Delhi & NCR .It is restricted to Delhi only because of time and

resurce constrains.

Sample Size: the size of the sample was around 100 people considering

the time constrain.

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 1.1 OVERVIEW OF INDUSTRY AS A WHOLE
As India celebrates its 50 years of independence, the passenger car industry will

celebrated a centenary of its existence in India in 1998. Despite this head start, the

industry has never quite matched up to the performance of its counterparts in other

parts of the world. The all-pervasive atmosphere created by the government's

license raj was primarily responsible for this situation. The various layers of Acts

sheltered the industry from external competition and smothered the development of

the Indian automobile industry. Moreover, the industry was considered low priority

as cars were considered to be an "unaffordable luxury."

With the liberalization of the Indian economy, the passenger car industry was

finally deregulated in 1993 and many companies, both Indian and foreign,

announced their plans to enter the market. The last four years have seen companies

like Daewoo, Ford, GM, and Mercedes-Benz launches their cars in India. The

passenger car industry notched impressive growth rates between 26-30% during the

period FY 94-96 even though the economic slowdown has adversely affected the

industry in FY 98 with the growth rate tricking down to 1%. Nonetheless, times

have changed significantly - the days of the customer chasing the dealer to

purchase poor quality cars backed by inefficient service are history. Today, the

customer dictates the terms.

The segmentation of the passenger car market in India is vastly different from that

in the developed nations. In India, the economy segment accounts for the largest

share of the cars sold, as compared to mid-range segment in the mature markets.

The economy and the premium segment face the lowest competitive threats, while

the premium segment will witness intense competition due to lower volumes.

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1.2 PROFILE OF THE ORGANIZATION

Tata motors one of India's largest private sector companies  with a turnover of over Rs 80

billions, is the country's leading commercial vehicle manufacturer and has significant

presence in the multi-utility and passenger car segments.

Tata motors was established on September 1, 1945, originally for the manufacture of Steam

Locomotives at Jamshedpur. By 1954, the company had diversified into the manufacture of

commercial vehicles in collaboration with Daimler Benz, Germany. By the time their

collaboration ended in 1969, Tata motors had become an independent producer of Medium

Commercial Vehicles with a great degree of indigenization. It had also developed the

capability of designing, testing and manufacturing such vehicles.

The widely successful Tata Indica, a Euro 2 compliant vehicle, is the country’s first

indigenously designed, developed and manufactured passenger car. Tata Motors followed

that up with the Tata Indigo, a sedan that was launched in December 2002. The company also

makes several other passengers vehicles, including the Safari, Sumo and Sierra.

The company’s products have received wide acceptance not only in India but also in the

Middle East, Asia, Africa, Australia, Latin America and Europe.

Areas of business

The company manufactures medium, heavy and light commercial vehicles, multi-utility

vehicles and passenger cars. In the year ending March 2001, the company’s revenues from its

four manufacturing plants at three locations in India were Rs. 81.64 billion (US $ 1.73

billion). In 2000, they were Rs. 89.61 billion. (US $ 1.9 billion)

{The average exchange rate has been taken as Rs 47.0 to one US dollar.}

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In the year ended 31 March 2001, the company’s total exports were worth about Rs 7.22

billion (US $ 153.6 million), against about Rs 6.09 billion (US $ 129.5 million) in the

previous year.

Locations
The company’s manufacturing plants in India are at Jamshedpur, Pimpri and Chinchwad near
Pune in Maharashtra, and Lucknow in Uttar Pradesh. Land has been acquired at Dharwad
(Karnataka) to build a fifth plant.
Collaborations
The company has technical tie-ups with:

 The Institute of Development in Automotive Engineering (IDEA), S.P.A., Italy, for

assistance in small car body design and styling; and
 Le Moteur Moderne, France, for the development of diesel and petrol engines for
passenger cars.

Subsidiaries

 Tata Construction Equipment Company Ltd. (TELCON): Its principal business is

manufacture and sale of construction, material handling and earthmoving equipment.
 Tata Technologies Ltd.: It oversees the IT requirements of Tata Motors and provides
services for SAP implementation, CAD/CAM-based design, and e-commerce
facilities to customers in India and abroad.
 Minicar (India) Ltd.: Formerly known as Mazda Industrial Chemicals Ltd., this
company was incorporated on January 18, 1972 and is currently engaged in the
business of automobile sales and services.
 HV Transmissions Ltd.: It was incorporated on March 13, 2000 with the objective
of acquiring the Heavy-Duty Gear Box Division of Tata Motors at Jamshedpur as a
going concern. It supplies transmissions and their parts to Tata Motors against
purchase orders raised by Tata Motors on HVTL.

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  HV Axles Ltd.: It was incorporated on March 13, 2000 with the objective of
acquiring the Heavy-Duty Axle Division of Tata Motors at Jamshedpur as a going
concern. It supplies axles and their parts to Tata Motors against purchase orders raised
by Tata Motors on HVAL.
 Telco Automation Ltd.: It was incorporated on March 13, 2000 with the objective of
acquiring the Machine Tool and Growth Divisions of Tata Motors as a going concern.
As and when required, Tata Motors sources factory automation equipment from TAL.
 Tata Technologies, USA: It was incorporated on August22, 1994 and became a
wholly owned subsidiary of Tata Technologies Limited on December 22, 2000. The
company is engaged in the business of computer consultancy and related services.

Strategic alliances
Tata Motors has several joint ventures and alliances. These include:

 Tata Cummins Ltd., a joint-venture with Cummins Engine Company Inc., USA;
makes fuel-efficient, low emission, environment-friendly diesel engines;
 Tata Holset Ltd., a joint-venture with Holset Engineering Company, UK, makes
turbochargers for diesel engines manufactured by Tata Cummins Ltd. and other
OEMs;
 Tata Motors Services Ltd., Singapore, for the sale of spare parts for Tata vehicles;
and
 Nita Company Ltd., Bangladesh, for the assembly and sale of Tata commercial
vehicles.

1.3 PROBLEMS OF THE ORGANIZATION

Given the city conditions, the consumers needed a very good overall performance
of cars, small cars taking less space has no parking problems, easy derivability in
heavy traffic conditions, easy gear shifts and good fuel efficiency. The small car

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owners being mostly the professional class or the upper middle class were very
cost conscious and due to their busy life styles preferred low maintenance in their
cars.

Irrespective of these above aspects there is one more thing, which also needs attention is
customer satisfaction. Customer satisfaction is abroad term, which includes many things like
post sale service satisfaction, dealership locality towards customers, way of treatment at these
dealerships and service stations, solving the customers problems and concerns to their full
satisfaction and so on.
The occurrence of single problem is a source of dissatisfaction for customers. Problem
experience is not always something broken or loose. Many a times it is a function of
customers’ expectation of how a feature or a vehicle system should look or perform and any
performance short of this expectation is perceived as a problem.

1.4 COMPETITION INFORMATION

The main purpose of this section is to have an insight into TELCO’s external
environment. Here, we shall be briefly looking at the factors influencing its
external environment, its competitors and the kind of competition it faces.
Competition leads to improvement on all fronts. If healthy, it brings the best out
of an industry. Newer and better technology, innovative and much better
products and processes, user-friendly and economical products providing
maximum value to customers, and other such advantages, all arise out of
competition.

TELCO faces stiff competition in almost all its business segments but has
emerged as the winner when it comes to market success. Out of its three

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business segments namely, the Passenger Car division, Utility vehicle division
and the Commercial vehicle division, the Passenger Car division is the area,
which is seeing a lot of activity in the current period. And this activity is all set
to intensify with the launch of the all-new TATA Sedan in the later half of the
current year.

TELCO currently has two products in the passenger car segment- the Indica and the Safari.
It faces direct competition from almost all the major automobile players in the passenger
segment, namely Maruti Suzuki, Hyundai, Fiat, Daewoo and Toyota.

S.I.A.M. (Society of Indian Automobile Manufacturers) has classified the Passenger Car
segment in India into further sub segments on the basis of their length,

1. Small Car segment (B segment)

2. Entry-level Mid Size segment (lower C segment)
3. Premium Mid Size segment (upper C segment)
4. Luxury Segment (D segment)
TELCO currently has one offering in the Small Car segment- The Indica, and one offering in
the Sports Utility Vehicle segment - The Safari. The proposed offering, christened the TATA
Sedan shall compete in the entry-level Mid-Size Car segment.
TELCO also has plans to introduce another offering in the Luxury car segment code-named
‘Magna’. The Magna shall be launched some time during the later half of next year in 2003.
TELCO currently is tight-lipped about the Magna and has divulged no details regarding the
car but according to group Chairman Mr. Ratan Tata, the Magna shall be TELCO’s answer to

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the Luxury Segment in India, which shall force the competitors to revamp their strategies.
And if the success of the Indica and the Safari is to be believed, these words are sure to see
light in the near future.
The Indica comes in both diesel and petrol variants. TELCO has redefined the rules of the
game by launching the all-new Indica V2, which has met with huge success in the recent
months. It has earned a lot of respect among all the small car manufacturers because of its
quality and value delivered to the customer, truly fulfilling its promise of More Cars per Car.

TELCO, for the year 2002 had promised a product of great pedigree, and the Indica V2 has
just delivered that.

The Indica is directly pitted against the Zen, Alto and Wagon-R from Maruti Udyog, the
Santro from Hyundai, the Palio and Uno from Fiat, and the Matiz from Daewoo.

The segmentation of the passenger car market in India is vastly different from that
in the developed nations. In India, the economy segment accounts for the largest
share of the cars sold, as compared to mid-range segment in the mature markets.
The economy and the premium segment face the lowest competitive threats, while
the premium segment will witness intense competition due to lower volumes.

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Range Price ('000 Rs.) Models

Economy Maruti 800, Maruti Omni,

Premier, Ambassador, Hyundai Santro

Mid-range 350-450 Uno, Zen, Ford Ikon, Fiat Palio

Premium 450 - 1,000 Esteem, Opel Astra, Ford Escort,

Mitsubishi Lancer, Hyundai Accent

Luxury > 1,000 Opel Vectra, Rover Montego, Mercedes

benz

TABLE: 1.1

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.

Traditionally, disposable income was perceived as the one critical factor that drove
passenger car demand. However, household income is no longer the single most
important factor in determining the demand for vehicles. Other critical factors are
the mobility needs of people and the availability of cheap finance. The top three
income groups - middle, upper middle, and high - have grown from 10% in 1986 to
17% of the population and covers over 52 million families. The number of high-
income households is growing very rapidly, more so in the rural areas. These
findings have revolutionary implications for the passenger car market. The
development of the used car market will also play a major role, as the customers
will be encouraged to trade in their old cars. The key to the growth of future
markets is to make maintenance-free vehicles, to improve the road infrastructure,
and to reformulate fuels and lubricants so as to reduce vehicle-operating costs.

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 TATA MOTORS LTD. (TATAMOTORS) –
COMPANY HISTORY
Tata Motors Limited is a leading global automobile manufacturer of cars utility vehicles

buses trucks and defence vehicles. As India's largest automobile company and part of the

USD 100 billion Tata group Tata Motors has operations in the UK South Korea Thailand

South Africa and Indonesia through a strong global network of 76 subsidiary and associate

companies including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. In India

Tata Motors is a market leader in commercial vehicles and among the top passenger vehicles

manufacturers with 9 million vehicles on Indian roads. With design and R&D centres located

in India the UK Italy and Korea Tata Motors strives to pioneer new products that fire the

imagination of GenNext customers. Abroad Tata cars buses and trucks are being marketed in

Europe Africa the Middle East South Asia South East Asia South America Australia CIS and

Russia.Tata Motors has a portfolio of automotive products ranging from sub-1 ton to 49 ton

gross vehicle weight (GVW) trucks (including pickup trucks) and from small medium and

large buses and coaches to passenger cars. The company's segments include automotive and

others which include information technology (IT) services construction equipment

manufacturing machine tools and factory automation solutions high-precision tooling and

plastic and electronic components for certain applications and investment business.The

company's passenger cars include the Indica the Indica Vista the Indigo and the Indigo

Marina. Jaguar produces four car lines: XK XF XJ and X-Type. They manufacture a number

of utility vehicles (UV) including the Sumo and the sports utility vehicle (SUV) Tata Safari.

Also they manufacture a variety of light commercial vehicles (LCVs) including pickup trucks

trucks and buses with GVW of between 0.7 ton and 7.5 tons. This also includes the Ace a

mini-truck with a 0.7 ton payload the Magic a passenger variant for commercial

23
transportation and the Winger. They also manufacture a variety of medium and heavy

commercial vehicles (M&HCVs) which include trucks buses dumpers and multi-axled

vehicles with GVW of between 9 tons to 49 tons.The company's manufacturing plants are

situated at Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar

(Uttarakhand) Dharwad (Karnataka) and Sanand (Gujarat). Through their subsidiaries and

associate companies the company has operations in the UK South Korea Thailand and

Spain.Tata Motors Ltd was incorporated in the year 1945 with the name Tata Engineering

and Locomotive Co Ltd for manufacturing locomotives and other engineering products. In

the year 1948 the company introduced steam road roller in collaboration with Marshall Sons

(UK). In the year 1954 they made collaboration with Daimler Benz AG West Germany for

manufacturing medium commercial vehicles. In the year 1959 they set up a Research and

Development Centre at Jamshedpur. In the year 1961 they started to export their products and

the fist truck being shipped to Sri Lanka.In the year 1966 the company set up the Engineering

Research Centre at Pune to provide impetus to automobile Research and Development. In the

year 1977 they manufactured first commercial vehicle in Pune. In the year 1983 they

commenced manufacturing of Heavy Commercial Vehicle. In the year 1985 the company

produced first hydraulic excavator in collaboration with Hitachi. In the year 1986 they

produced the indigenously designed light commercial vehicle Tata 407 followed by 608. In

the year 1989 they introduced third LCV model Tatamobile 206. In the year 1991 the

company launched first indigenous passenger car Tata Sierra and in the next year they

launched Tata Estate. In the year 1993 the company signed a joint venture agreement with

Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly

diesel engines. In the year 1994 the company launched Tata Sumo and LPT 709. During the

year the company signed a joint venture agreement with Daimler - Benz / Mercedes - Benz

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for manufacture of Mercedes Benz passenger cars in India. Also they singed a joint venture

agreement with Tata Holset Ltd UK for manufacturing turbochargers to be used on Cummins

engines. In the year 1995 they launched Mercedes Benz car E220 and in the next year they

launched Tata Sumo deluxe.In the year 1997 the company launched Tata Sierra Turbo and in

the next year they launched Tata Safari and Indica in the market. In the year 2000 they

launched Indica 2000 and CNG buses. In the year 2001 they launched Indica V2 CNG Indica

and Tata Safari EX. In the year 2002 the company signed a product agreement with MG

Rover of the UK. Also they launched Petrol version of Indica V2 EX series in Commercial

vehicles Tata Sumo+ Series and Tata Indigo. In the year 2003 they launched Tata Safari

Limited Edition CityRover 135 PS Tata Safari EXi Petrol and Tata SFC 407 EX Turbo in the

market. In July 29 2003 the name of the company was changed from Tata Engineering Co

Ltd to Tata Motors Ltd.In the year 2004 the company acquired Daewoo Commercial Vehicle

Company and renamed it as Tata Daewoo Commercial Vehicle Co. Ltd. This company

launched the heavy duty truck 'NOVUS' in Korea. Also the company launched Tata Indica

V2 Tata LPT 909 EX Sumo Victa and Indigo Marina during the year. In the year 2005 the

company acquired 21% stake in Hispano Carrocera SA Spanish bus manufacturing Company.

The company launched branded buses and coaches namely Starbus and Globus in the market.

Also they launched Tata Ace Indigo SX series Indica V2 Turbo Diesel Tata TL 4X4 and Tata

Novus. During the year the company inaugurated a new factory at Jamshedpur for Novus.

Also they unveiled Tata Xover at the 75th Geneva Motor Show.In the year 2006 the company

made a joint venture with Marcopolo Brazil for manufacturing fully built buses & coaches for

India & markets abroad. They launched Indica V2 Xeta and new Indigo range. Also they

unveiled new long wheel base premium Indigo & X-over concept at Auto Expo 2006. In the

year 2007 the company and Thonburi Automotive Assembly Plant Co. (Thonburi) formed a

25
joint venture company in Thailand to manufacture assemble and market pickup trucks. They

inaugurated Tata-Fiat plant at Ranjangaon. They launched long wheel base Indigo XL Tata

Spacio Magic Winger Sumo Victa Turbo DI Indica V2 Turbo with dual airbags & ABS and

Safari DICOR 2.2 VTT range.During the year 2007-08 the company unveiled the TATA

Nano the world's least expensive car at the Auto Expo 2008 in New Delhi. Subsequently the

car was also unveiled at the Geneva Motor Show and received international acclaim. They

commenced production of TATA Ace from their manufacturing facility at Uttarakhand

during the year.During the year the company developed new products for the M&HCV

passenger carrier sub-segment and displayed in the Auto Expo 2008 a 28 seater bus and an air

conditioned low floor bus developed through their joint venture - Tata Marcopolo Motors

Ltd. In the LCV segment the company introduced two new products - Magic and

Winger.Further the company unveiled the 1 Ton and CNG variant of Ace Cargo Panel van

Xenon XT - a lifestyle pickup truck and Winger Executive office concept vehicle in the Auto

Expo 2008. They showcased their new range of tactical and armoured vehicles for military

and para-military forces in the Defence Expo 2008. These include Tata Light Specialist

Vehicle Light Armoured Troop Carrier Tata 8x8 HMV and the armoured Tata Safari.During

the year 2007-08 the company signed an agreement with Fiat Group automobiles SpA Italy

and Fiat India Automobiles Pvt Ltd (FIAPL) for establishment of joint venture to

manufacture passenger cars engines and transmissions at Ranjangaon in India. In March 2008

the Company introduced Tata Xenon- 1 Ton pickup truck in Thailand through its subsidiary

Tata Motors (Thailand) Ltd. On June 2 2008 the company acquired the businesses of Jaguar

Land Rover (a part of Premier Automotive Group of Ford Motor Co.) for USD 2.3 billion.

Jaguar Land Rover is in the business of development manufacture and sale of high end luxury

cars and SUVs. The acquisition includes the ownership of three major manufacturing plants

26
two advanced design centres in UK a worldwide sales network Intellectual Property Rights

(including perpetual royalty free licenses) and Brands and Trade marks.During the year 2008-

09 the company partially divested their stake in Tata AutoComp Systems Ltd an associate

company from 50% to 26%. Also they sold their investment in Tata Tele Services Ltd.

During the year the company launched 28 new commercial vehicles. Among the new

products launched during the year were LPT 3118 - a truck with lift axle CNG variants of the

Ace Magic and Xenon new range of LCV buses manufactured by Tata Marcopolo Motors

and the ICV 909 bus. The company also completed the execution of their first order of 650

low floor buses to Delhi Transport Corporation (DTC). They have also bagged a second order

of 1625 similar buses from DTC to be executed in financial year 2009-10 the total order

value of which is over Rs 2200 crore. In May 2009 they also unveiled the World Truck range

of their next generation heavy trucks.During the year 2009-10 the company acquired 79%

shares in Hispano Carrocera S A by way of exercise of the existing call option through

mutual agreement with the other share-holder Investalia S. A. Spain for a consideration of

Euro 2 million (Rs 1371 lakh). Consequently Hispano Carrocera S A has become a 100%

subsidiary of the company. Also the company sold 20% stake in Telco Construction

Equipment Company Ltd (Telcon) to Hitachi Construction Machinery Co Ltd. The company

now holds 39.75% stake in Telcon.During the year the company launched the new heavy

truck range Prima. Also they launched the new range of buses (based on the Prima platform

with bodies being made by Tata Marcopolo displayed at the Delhi Auto Expo in January

2010). In small commercial vehicles they launched the Ace EX and Super Ace. In June 2010

the company inaugurated the factory for the Nano mini car at Sanand in the western state of

Gujarat. The factory is having an initial capacity of producing 250000 cars per year.During

the year 2010-11 the company launched the Aria a premium crossover with high-end features

27
such as 4x4 Torque on Demand ESP six airbags. They launched BS IV compliant variants of

the Indica and the Indigo CS the Indica eV2 and Indigo eCS with segment leading fuel

efficiencies. These vehicles are powered by the company's 1.4L CRAIL engine. They

launched Venture a Multi Purpose Vehicle (MPV) on the Ace platform. The company

expanded the Prima range launched during the previous year with the introduction of the

Prima Construck range of tippers in the market. Also the company launched the all new

Jaguar XJ the new 4.4 V8 diesel Range Rover and the new 2.2 diesel Land Rover.In

September 2010 the company acquired 80% stake in Trilix Srl. Turin (Italy) a design and

engineering company. The company increased their shareholding in Tata Precision Industries

Pte. Ltd from 49.99% to 78.39% by subscribing to an additional 28.4% share of Tata

Precision Industries Pte Ltd Singapore on February 15 2011. Tata Precision Industries Pte Ltd

holds 100% shares of Tata Engineering Services Pte Ltd hence Tata Engineering Services Pte

Ltd also became a subsidiary.On 6 January 2011 Tata Motors announced the launch of Tata

Venture in Rajasthan. The Tata Venture is a multi-purpose vehicle (MPV) with the footprint

and maneuverability of a hatchback car but the interior space of a utility vehicle. On 27

January 2011 Tata Motors announced that its wholly owned subsidiary in Spain Tata Hispano

Motors Carrocera SA has won a prestigious order for supplying around 500 buses in the next

3 years to the Avanza Group one of the largest private passenger transportation groups in

Spain. On 10 February 2011 Tata Motors announced that it has won a prestigious order for

supplying around 250 Tata Prima trucks to LINFOX Logistics the largest privately owned

supply chain solutions company in the Asia Pacific region with over 50 years of experience

in this business. LINFOX will ply these trucks in India.On 23 February 2011 Jaguar Land

Rover announced that Jaguar will launch its most potent series production car ever the all-

new XKR-S at the Geneva motorshow on 1 March 2011. On 1 March 2011 Tata Motors

28
showcased the Tata Pixel a new city car concept for Europe at the 81st Geneva Motor Show

in Switzerland. On 10 March 2011 Tata Motors announced the launch of the Tata Indica eV2

hatchback built on the Tata Indica platform. On 14 March 2011 Tata Motors announced that

it has entered into an understanding with Muthoot Vehicle and Asset Finance Ltd (MVFL)

for financing its range of passenger vehicles. With this arrangement MVFL will be one of the

preferred retail financiers of Tata Motors in Kerala. On 18 March 2011 Tata Motors

announced increase in prices of Indica passenger car by Rs 7000 to Rs 9000 Vista and Indigo

CS passenger cars by Rs 8000 to Rs 11000 and Manza passenger car by Rs 10000 to Rs

15000 on account of steep rise in input costs. The company also announced increase in prices

of utility vehicles Sumo by Rs 13000 to Rs 15000 Grande by Rs 16000 to Rs 19000 Safari by

Rs 18000 to Rs 29000 Aria by Rs 30000 to Rs 36000 and Venture by Rs 9000 to Rs

12000.On 19 April 2011 Tata Motors announced that it has entered into an agreement with

State Bank of India (SBI) for providing channel financing facilities to the Tata Motors

dealers. The bank will provide financing for both the passenger vehicles and commercial

vehicles range.On 10 May 2011 Tata Motors announced the launch of the `Tata Magic IRIS'

a four-wheel 3-4 seater small passenger carrier a stylish safe and comfortable alternative for

commuters who depend on three-wheelers and the `Tata Ace Zip' a technologically superior

and smart micro truck with a payload of 600 kg for deep-penetration door-to-door goods

movement. On 17 May 2011 Tata Motors formally announced the launch of Tata Delight a

customer loyalty programme for owners of its commercial vehicles thereby becoming first

company in the commercial vehicles industry to launch this unique engagement initiative.On

27 May 2011 Jaguar Land Rover announced the official opening its first assembly plant in

India at Pune in the Maharashtra. The plant will assemble Land Rover Freelander 2 vehicles

supplied in Complete Knock Down (CKD) form from Jaguar Land Rover's Halewood

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manufacturing plant in Liverpool UK.Tata Motors (SA) (Proprietary) Ltd. Tata Motors' joint

venture with Tata Africa Holding (Pty) Ltd. formally opened its assembly plant in South

Africa at Rosslyn north of Pretoria in the Gauteng province of South Africa on 22 July 2011.

Established with an investment of R110 million the plant can assemble from semi knocked

down (SKD) kits light medium and heavy commercial vehicles ranging from 4 tonnes to 50

tonnes with an annualised capacity of 3650 vehicles. The capacity can be further expanded as

required. On 2 August 2011 Tata Motors announced the launch of the Tata Aria 4x2 a

luxurious creation with the finesse of a sedan and the muscle of an SUV all combined in one

car with 4x2 option at a starting price of Rs 11.61 lakh ex-showroom New Delhi. On 23

August 2011 Tata Motors announced the launch of a new version of its premium hatchback

the Tata Vista. On 4 November 2011 Tata Motors announced that new Range Rover Evoque

from the stable of Jaguar Land Rover will be launched in India at a starting price of Rs 44.75

lakh (ex-showroom price in Mumbai pre-Octroi). On 10 November 2011 Tata Motors

announced the launch of new Tata Sumo Gold sport utility vehicle at a starting price of Rs

5.23 lakh ex-showroom Pune.On 21 November 2011 Tata Motors announced the introduction

of a bouquet of features for the Tata Nano including new colours new interiors a more

powerful gasoline engine and greater fuel efficiency of 25.4 kmpl. On 20 December 2011

Tata Motors announced the launch of the Tata Divo a luxurious long distance inter-city travel

bus and the Tata Starbus Ultra a modern and practical bus for commuting within the city. On

27 December 2011 Tata Motors announced that the car maker is upgrading old Tata Nanos

produced up to mid-September 2011 with a new starter motor to enhance their performance.

This is in line with the company's practice of upgrading its vehicles.On 5 January 2012 Tata

Motors unveiled at the New Delhi Auto Expo 2012 the Tata Safari Storme the new

generation Safari SUV the Tata Ultra the company's new LCV & ICV range and the Tata

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LPT 3723 India's first 5-axle rigid truck.On 6 March 2012 Tata Motors presented at the 82nd

Geneva Motor Show the Tata Megapixel a new four-seater city-smart global range extended

electric vehicle (REEV) concept for the performance-seeking and environment-conscious

motorist anywhere in the world.On 23 April 2012 Tata Motors and DRB-HICOM Defence

Technologies Sdn Bhd (DEFTECH) a wholly-owned subsidiary of DRB-HICOM Berhad

Malaysia signed a cooperation agreement to enable both DEFTECH and Tata Motors to

develop promote and market Tata Motors' high mobility 4x4 trucks with payloads ranging

from 2.5 tonnes to 5 tonnes for the Armed forces of Malaysia.On 2 May 2012 Tata Motors

and Fiat agreed that in order to further develop the Fiat brand in India Tata Motors will hand

over the management control of Fiat's commercial and distribution activities in India to a

separate Fiat Group owned company. Development of the new Fiat dealer network for India

will start progressively and the 178 existing Fiat-franchised Tata dealers in 129 cities will be

encouraged to form the foundation of the future network.On 6 June 2012 Tata Motors

announced that its Dharwad Karnataka plant for small commercial vehicles has become

operational and has begun to produce the Tata ACE Zip and the Tata Magic IRIS. Established

with an investment of over Rs 900 crore the plant spans across an area of 405 acres. On 3

September 2012 Tata Motors announced the launch of the Tata Xenon pick-up offering both

single cab and dual cab versions. On 14 September 2012 Tata Motors announced the launch

of its new generation sedan the Tata Indigo Manza in the South African market. On 17

September 2012 Tata Motors announced the launch of 6 first-of-its-kind heavy trucks. On the

same day the company announced the launch of an intelligent vehicle and driver management

solution viz. Tata FleetMan Telematics Services. Targeted at commercial vehicle fleet

owners and large consigners of goods the service offers advanced Telematics solutions which

will help in increasing productivity and profitability.On 20 September 2012 Tata Motors

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announced that it has received its largest ever single order for commercial vehicles from

Siddhivinayak Logistics Ltd. (SVLL) to supply 1314 trucks to be delivered during the

financial year. The order coincided with the launch of an innovative scheme by SVLL meant

for the well-being of their drivers called `Chalak se Malak'.On 16 October 2012 Tata Motors

announced the launch of its next generation car the Tata Manza a Club Class sedan. On 17

October 2012 Tata Motors announced the launch of the new Tata Safari Storme sports utility

vehicle at a starting price of Rs 9.95 lakh ex-showroom New Delhi.On 18 October 2012 Tata

Motors announced the launch of its 1-tonne diesel mini-truck the Tata Super ACE in South

Africa.On 26 October 2012 Tata Motors announced the launch of `Tata Alert' a highway

assistance programme for medium and heavy commercial vehicles which will be available

across all national highways in India. On 27 November 2012 Tata Motors announced its

maiden entry in the Bangladesh new car market by introducing two sedans viz. the Tata

Indigo eCS the Tata Indigo Manza and the Tata Indica Vista hatchback.On 18 December

2012 Tata Motors announced the launch of new Tata Aria Pure LX a new variant of the Aria

car with a bouquet of features priced at Rs 9.95 lakh ex-showroom Bangalore. On 28 January

2013 Tata Motors announced the launch of its premium hatchback the all new Tata Vista D90

an advanced and dynamic car delivering 90PS of raw power offering first-in-class high-tech

features. On 13 February 2013 Tata Motors announced that it has bagged an order for the

company's fully indigenous Tata 6x6 multi-axle high mobility mobile platforms from Bharat

Electronics Limited (BEL) Bangalore to mount Radar applications meant for the Indian Air

Force. Tata Motors will supply 26 Tata 6x6 multi-axle vehicles to BEL Bangalore.On 15

February 2013 Tata Motors showcased two new MCV buses for intercity transportation and

staff transportation at the SIAM International Bus & Utility Vehicles Show at Greater

Noida.On 19 February 2013 Tata Motors announced the roll-out of the 2 millionth truck from

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its world-class manufacturing facility at Jamshedpur in Jharkhand. The plant manufactures

Tata Motors' entire range of medium and heavy commercial vehicles including the Tata

Prima both for civilian and defence applications. On 3 April 2013 Tata Motors announced the

launch of the Tata Prima range of commercial vehicles in Sri Lanka. On 18 May 2013 Tata

Motors announced that TML Holdings Pte. Ltd. a wholly owned subsidiary of Tata Motors

issued and allotted s$350 million in principal amount of 4.25% senior notes due 2018. The

net proceeds from the issue will be used for the redemption of preference shares issued to

Tata Motors and for general corporate purposes. On 19 June 2013 Tata Motors announced

HORIZONEXT an aggressive customer-focused strategy for its passenger vehicles business.

It also unveiled 8 newly upgraded and enhanced products across 5 brands.On 23 July 2013

Tata Motors announced its entry into Australia under a new independent distributor M/s

Fusion Automotive Pty Ltd. Australia. Through Fusion Automotive Pty Ltd. Tata Motors will

introduce a range of light commercial vehicles in Australia.5 August 2013 Tata Motors

announced that it has entered into an understanding with UCO Bank for financing its range of

commercial vehicles to provide an added facility of finance to its customers. Through this tie-

up UCO Bank will offer loans of upto 85% on a Tata Motors commercial vehicles on-road

pricing.On 9 September 2013 Tata Motors announced its partnership with DRB-HICOM

Malaysia's biggest conglomerate for the import distribution and assembly of Tata Motors

commercial vehicles in Malaysia. On 10 September 2013 Tata Motors' wholly owned

subsidiary in Indonesia PT Tata Motors Distribusi Indonesia (TMDI) launched three new

Tata passenger vehicles viz. the Tata Aria the Tata Vista and the Tata Safari Storme in

Indonesia. On 24 September 2013 Tata Hispano Motors Carrocera SA announced its decision

to cease production activities at Zaragoza Spain factory. The decision to cease the activity at

Tata Hispano Motors Carrocera was compelled due to economic and business factors as

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despite strong investments there was no positive result to reverse the challenging business

situation and losses for the plant. Tata Hispano Motors Carrocera SA is a Spanish company

based in Zaragoza. It is a wholly-owned subsidiary of Tata Motors. On 8 October 2013 Tata

Motors formally announced the launch of the CNG version of its small car Nano powered by

a fuel efficient state-of-the-art engine with CNG and petrol bi-fuel system options. On 29

October 2013 Tata Motors announced the launch of New Tata Sumo Gold sports utility

vehicle at a starting price of Rs 5.93 lakh ex-showroom New Delhi.On 22 November 2013

Tata Motors formally announced the launch of two new additions to its CNG portfolio - Tata

Indigo emax and Tata Indica emax. These two variants were introduced in 6 markets across

India viz. Delhi Maharashtra Gujarat Uttar Pradesh Andhra Pradesh and Tripura.On 13

January 2014 Tata Motors announced the launch of the new Nano Twist a new addition to the

Nano range priced at Rs 2.36 lakh ex-showroom Delhi. On 20 January 2014 Tata Motors

announced the launch of the REVOTRON Series the next generation petrol engine family

that will power its future models in the passenger vehicle market.On 21 January 2014 Tata

Motors announced the launch of the premium hatchback Vista VXTech at a starting price of

Rs 4.94 lakh ex-showroom Delhi for Vista LS model. On 5 February 2014 Tata Motors

showcased an extensive range of 18 stunning vehicles and concepts at the Auto Expo 2014.

Tata Motors and Samsung Electronics on 6 February 2014 announced a partnership to offer

innovative in-car connectivity applications in Tata Motors passenger vehicles. On 6 March

2014 Tata Motors announced the launch of six new heavy trucks in the haulage segment and

four in the construction segment from its Prima LX range.On 8 March 2014 Tata Motors

announced that it has entered into an understanding with Bharatiya Mahila Bank (BMB) for

financing its passenger vehicle customers. BMB will be facilitating eligible customers of Tata

cars and utility vehicles with vehicle financing at an attractive rate of 10.5% for women

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customers across all BMB branches in India. On 3 April 2014 Tata Motors announced its

entry into the Philippines market at the Manila International Auto Show (MIAS) 2014 held at

the World trade Centre. The company said at that time that it will commence its business in

Philippines with exports of the Manza the Vista the Indigo and the Indica from its passenger

vehicles portfolio and the Xenon the Ace and the Super Ace from its commercial vehicles

range. On 6 May 2014 Tata Motors announced the launch of a new utility vehicle Movus at a

starting price of Rs 6.99 lakh ex-showroom Delhi. On 14 May 2014 Tata Motors announced

that it has bagged an order for 2000 passenger vehicles to be supplied over a period of one

year from SVLL Connect Pvt. Ltd. a group company of Siddhi Vinayak Logistic Ltd. SVLL

Connect's order will comprise of Tata Motors luxury sedan the Manza the Indigo eCS with a

majority of the order placed for the new Aria utility vehicle. SVLL Connect will ply these

vehicles over inter-city routes.On 22 May 2014 Tata Motors announced the launch of the new

Intermediate and Light Commercial Vehicle (ILCV) range of trucks christened `ULTRA'

which offers superior technology and design that ensures lowest total cost of ownership

through higher uptime because of increased driver comfort superior aggregates and

customised requirements.On 12 August 2014 Tata Motors announced the commercial launch

of the Zest the all new sub-four metre compact sedan with a start price of Rs 4.64 lakh ex-

showroom New Delhi for the petrol Revotron 1.2T model and Rs 5.64 lakh ex-showroom

New Delhi for the diesel variant. On 27 August 2014 Tata Motors announced the launch of

its passenger vehicle range in Algeria. It includes Tata Indica and Tata Vista from the

hatchback range and the Tata Indigo and Tata Manza from the sedans.On 2 September 2014

Tata Motors announced that it had received an order from Karnataka State Road Transport

Corporation (KSRTC) to supply 487 buses and another order for 780 buses from Himachal

Road Transport Corporation for Tata Marcopolo built buses as per Urban Bus Specifications

35
under JNNURM - II scheme. These orders are part of the over 2700 orders for Tata Motors

`URBAN' buses received under JNNURM - II scheme.On 11 September 2014 Tata Motors

and Microlise one of Europe's leading Telematics and Fleet Management solutions providers

announced their partnership to bring in the latest global Fleet Telematics solutions to the

Indian market. The agreement signed for an initial period of 5 years envisages both partners

utilising their core strengths to deliver Fleet Management services of unprecedented quality

reliability and range to the Indian Transport Industry through the Tata Fleetman platform.

While Microlise will provide the technology and solutions Tata Motors will integrate them in

its commercial vehicles and utilise its vast experience and reach for service delivery. The

services will be marketed through OE fitment as well as through the aftermarket route.On 25

October 2014 Tata Motors announced the pricing of a dual-tranche USD 750 million senior

unsecured notes following strong demand aggregating USD 4.50 billion for the offering. The

proceeds from the issuance and sale of the notes will be used to refinance external

commercial borrowing of the company incur new additional capital expenditure and for

general corporate purposes.On 13 November 2014 Tata Motors showcased two new mini-

trucks on its popular Ace platform from its new municipal range of solutions at Municipalika

2014 in Gandhinagar Gujarat. Municipalika 2014 is a trade show focusing on Construction

Architecture Planning and Engineering to deliberate on sustainable built environment and

good urban governance.On 2 December 2014 Tata Motors announced that it has received an

order for 1542 Sumo Gold utility vehicles from various police and law enforcement agencies

across the country. On 22 January 2015 Tata Motors announced the commercial launch of its

much-awaited sporty hatchback Bolt at a starting price of Rs 4.44 lakh ex-showroom Delhi

for the Revotron (petrol) 1.2T variant and Rs 5.49 lakh ex-showroom Delhi for the diesel

variant.On 27 February 2015 Tata Motors announced new initiatives designed to enhance the

36
company's competitiveness. As a part of these initiatives the company announced a Voluntary

Retirement Scheme (VRS) for the workmen. On 3 March 2015 Tata Motors announced the

launch of a new small pick-up the Tata SuperAce Mint. The cargo carrier will meet

requirements of intra and intercity transport. The vehicle was launched at a starting price of

Rs 5.09 lakh ex-showroom Thane.On 20 April 2015 Tata Motors announced the launch of the

new Safari Storme sports utility vehicle with a starting price of Rs 9.99 lakh ex-showroom

New Delhi.On 7 May 2015 Tata Motors announced that its Rs 7500-crore rights issue was

oversubscribed 1.21 times. The rights issue of ordinary shares was oversubscribed by 1.17

times while the rights issue of `A' ordinary shares was oversubscribed by 1.51 times. The

proceeds from the share issue are intended to be used for funding expenditure towards plant

and machinery research and product development repayment in full or in part of certain long-

term and short-term borrowings and general corporate purposes.On 19 May 2015 Tata

Motors announced the launch of all-new GenX Nano range a new compact feature-rich

hatchback with advanced technological features and a starting price of Rs 1.99 lakh for the

XE variant. On 10 July 2015 Tata Motors announced that the company has bagged an order

to supply around 1200 high-mobility 6X6 multi-axle trucks from the Indian Army - the single

largest order awarded to an Indian private OEM (Original Equipment Manufacturers) in land

systems under the DPP by the Indian army. The order for 6X6 vehicles is for `Material

Handling Cranes' for the loading-unloading and transportation of ammunition pallets spares

and other operational equipment.On 27 August 2015 Tata Motors announced the launch of a

new smart pick-up truck Tata ACE Mega. On 10 September 2015 Tata Motors announced the

launch of special edition of its highly acclaimed compact sedan Tata Zest. On 22 September

2015 Tata Motors announced that it has achieved 3 lakh units sales mark for its last mile

passenger transport brand Tata Magic. Tata Magic was introduced in June 2007 as India's

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first small commercial four-wheeler in last mile public transport. On 8 December 2015 Tata

Motors announced the launch of a new variant of the Safari Storme VX sports utility vehicle

powered by a new 2.2L VARICOR 400 engine. On 6 January 2016 Tata Motors in

association with PETRONAS Lubricants International (PLI) launched co-branded range of

lubricants for Tata Motors' passenger vehicles range in the India market. On 3 February 2016

Tata Motors showcased its future range of passenger vehicles at the Auto Expo 2016. The

product line-up features the new sporty compact sedan (project code named KITE 5) the

production ready lifestyle SUV- HEXA in automatic and manual variants compact SUV -

NEXON and the personalized editions of the new passenger vehicles from Tata Motors. On 4

February 2016 Tata Motors announced the launch of its new SIGNA range of Medium &

Heavy Commercial Vehicles at the SIAM Auto Expo 2016. On 7 March 2016 Tata Motors

announced that it has signed a strategic agreement with Bharat Forge Limited and General

Dynamics Land Systems (GDLS) of the US for the Indian Ministry of Defence (MoD's)

prestigious Future Infantry Combat Vehicle (FICV) program. Tata Motors will lead the

consortium with Bharat Forge Limited as a partner while General Dynamics Land Systems

will bring in its much proven expertise in combat vehicle platforms.On 16 March 2016 Tata

Motors announced that it has won a contract to supply 25 hybrid buses from Mumbai

Metropolitan Region Development Authority (MMRDA) in the single largest order awarded

for Hybrid Electric vehicle technology. On 27 March 2016 Tata Motors announced that it has

bagged a follow-on contract for the supply of an additional 619 units of its high-mobility

(HMV) 6X6 multi-axle truck from the Indian Army. On 6 April 2016 Tata Motors announced

the commercial launch of its new hatchback TIAGO at a starting price of Rs 3.20 lakh ex-

showroom New Delhi for the Revotron 1.2L (petrol) variant and Rs 3.94 lakh ex-showroom

New Delhi for the Revotorq 1.05L (diesel) variant. On 6 September 2016 Tata Motors

38
announced having received orders of over 5000 buses from 25 State/City Transport

Undertakings across the country.On 26 September 2016 Tata Motors announced its foray into

the Bolivian commercial vehicle market through a distribution agreement with local partner

Bolivian Auto Motors part of the business group Salvatierra an important business

conglomerate engaged in the distribution of motor vehicles and motor cycles in Bolivia.

Through this partnership Tata Motors launched three commercial vehicles in the Bolivian

market.On 28 September 2016 Tata Motors and Hindustan Petroleum Corporation Limited

(HPCL) launched the high performance range of HP Tata Motors Genuine Oil (HP TMGO)

exclusively developed for Tata Motors passenger vehicles in the Indian market. The HP

TMGO range includes Engine Oils Gear Oils Steering and Transmission Fluids Coolants

Brake Fluids and Greases.On 3 November 2016 Tata Motors and PT Pindad Indonesia signed

a Memorandum of Understanding (MoU) for cooperation to effectively explore market

potential of Tata Armoured Vehicles in Indonesia and other agreed regions of ASEAN. The

MoU further includes a study to check the feasibility of locally assembling Tata Armoured

Vehicles at PT Pindad's facility in Bandung in West Java province of Indonesia. PT Pindad is

an Indonesian state-owned enterprise specializing in military and commercial products.On 8

November 2016 Tata Motors showcased the country's first LNG (liquefied natural gas)

powered bus in Kerala. Tata Motors first showcased LNG technology on the Tata PRIMA

Truck at Auto Expo 2014 in New Delhi. On 12 December 2016 Tata Motors announced price

hike ranging from Rs 5000 to Rs 25000 for its passenger vehicles with effect from 1 January

2017 to pass on increase in prices of raw material commodities like steel aluminium copper

and rubber. On 3 January 2017 Tata Motors announced the launch of Tata Xenon Yodha

range of pick-ups. The new Tata Xenon Yodha is an ideal solution for diverse commercial

usage transporting agri-produce (Fruits & Vegetable) poultry fish milk a cash van a service

39
support vehicle at construction sites etc.On 5 January 2017 Tata Motors and Castrol

announced the signing of a three-year strategic partnership agreement for supply of

Commercial Vehicle Oils to Tata Motors globally. The agreement will cover over 50 markets

including SAARC and ASEAN region Middle East Africa Russia and Latin America.On 18

January 2017 Tata Motors announced the commercial launch of its much awaited lifestyle

vehicle Hexa at a starting price of Rs 12.08 lakh ex-showroom Maharashtra for the manual

transmission variant and Rs 14.98 lakh ex-showroom Maharashtra for the automatic variant.

On 25 January 2017 Tata Motors launched new hybrid and electric buses at its Pune facility

thus reiterating the company's commitment towards smart and green technology and mobility

solutions.On 16 February 2017 Tata Motors and Microsoft India announced a strategic

agreement to redefine connected and personalized driving experiences for Indian customers.

Tata Motors will leverage Microsoft's connected vehicle technologies that bring together

artificial intelligence (AI) advanced machine learning and the Internet of Things (IoT)

capabilities on the global hyper-scale Azure cloud to traverse the digital and physical worlds

and create a highly personalized smart and safer driving experience across the digital life of a

vehicle owner. On 29 March 2017 Tata Motors announced the commercial launch of its new

compact sedan Tata TIGOR. The car will be available in 8 variants and six exciting colour

options.On 31 March 2017 Tata Motors announced the launch of JT Special Vehicles Pvt.

Ltd. a 50:50 joint venture with Jayem Automotives Pvt. Ltd. for the development of special

performance vehicles based on the latest series products. As part of the agreement both Tata

Motors and Jayem Automotives will work towards performance enhancement and appearance

of series vehicles to offer an exciting and innovative range of niche aspirational products for

the passenger car customers.On 19 April 2017 Tata Motors announced the launch of AMT

(Automated Manual Transmission) technology in its Starbus and Ultra brand of buses ranging

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from 9-12 meters at a starting price of Rs 21 lakh (ex-showroom New-Delhi). On 27 April

2017 Tata Motors announced that it has signed a contract for supply of 3192 units of the

Safari Storme under the newly formed GS800 category to the Indian Armed Forces.On 9

June 2017 Tata Motors announced that it has resolved the long-term wage settlement issue at

its Sanand Gujarat manufacturing facility. On 15 June 2017 the Tata Group announced that

an affiliate of Warburg Pincus a leading global private equity firm focused on growth

investing will purchase approximately 30% stake in Tata Technologies Limited from Tata

Motors and its subsidiary Sheba Properties Limited as well as the entire 13% stake held by

Tata Capital (8.7% from Alpha TC Holdings Pte Ltd and 4.3% from Tata Capital Growth

Fund I). Post the transaction Tata Motors and affiliates of the Tata Group will continue to

retain a significant minority interest of approximately 43% in Tata Technologies with the

remaining ownership held by the management team and other shareholders. Tata

Technologies is a global engineering services and product development IT company with

more than 8500 employees located in 23 countries.On 3 July 2017 Tata Motors announced

that its TIAGO hatchback has crossed the one lakh bookings milestone in the domestic

market. TIAGO was launched in April 2016. On 6 July 2017 Tata Motors announced a price

reduction in the range of 0.3% to 4.21% for cargo commercial vehicles and reduction of 0.6%

to 8.2% for commercial vehicles for passenger transportation following the introduction of a

nationwide Goods and Services Tax (GST) from 1 July 2017. On 5 July 2017 Tata Motors

announced a price reduction of upto 12% ranging between Rs 3300 and Rs 2.17 lakh per

vehicle on its passenger vehicles following the introduction of a nationwide Goods and

Services Tax (GST) from 1 July 2017. On 11 July 2017 Tata Motors announced the launch

new Tata Ace XL range of small commercial cargo vehicles. On 17 July 2017 Tata Motors

showcased India's first Bio-CNG (bio-methane) Bus at the Bio-energy programme called

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`Urja Utsav'. On 26 July 2017 Tata Motors announced the launch of a range of commercial

vehicles in Philippines. On 10 August 2017 Tata Motors announced that the company and

Skoda Auto have ceased discussions around a potential partnership between the two auto

makers. Based on intense and constructive discussions both the companies have jointly

concluded that the envisioned areas of partnership may not yield the desired synergies as

originally assessed. Nevertheless the two companies have decided to keep in touch for future

areas of collaborations.To mark the overwhelming success of TIAGO and usher in the festive

season Tata Motors on 12 September 2017 announced the launch of the limited-edition

TIAGO Wizz hatchback priced at Rs 4.52 lakh for the petrol version and Rs 5.30 lakh for the

diesel version (ex-showroom Delhi) inclusive of the accessory kit.On 21 September 2017

Tata Motors announced its entry into the growing compact SUV segment with the

commercial launch of its new Gen-next lifestyle SUV the Tata NEXON with an introductory

price of Rs 5.85 lakh ex-showroom Delhi for the petrol variant and Rs 6.85 lakh ex-

showroom Delhi for the diesel variant.On 4 October 2017 Tata Motors Limited showcased

the new safety technology - Electronic Stability Control (ESCsmart) for the range of PRIMA

and SIGNA trucks at an event in Chennai. Tata Motors said at that time that it is the first

OEM in India to deploy Electronic Stability Control (ESC) for Medium and Heavy

Commercial Vehicles. On 5 October 2017 Tata Motors announced that it has signed a

memorandum of understanding with Srei Equipment Finance Limited (Srei) a wholly owned

subsidiary of Srei Infrastructure Finance Limited to finance Tata Motors commercial vehicles

with a special focus on construction and mining tippers. The preferred financier agreement

(PFA) will allow both Tata Motors and Srei to explore enhanced growth prospects in the

heavy-duty tipper truck segment in the country.On 2 November 2017 Tata Motors announced

the addition of two AMT (Automated Manual Transmission) variants to the Tigor Styleback

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sedan range.On 14 November 2017 Tata Motors announced that it has signed a Memorandum

of Understanding (MoU) with Energy Efficiencies Services Limited (EESL) to achieve

energy saving and resource conservation by implementing various energy efficiency

initiatives across the company's manufacturing facilities in India. The energy efficiency

programme will be implemented in Tata Motors manufacturing plants located at Pantnagar

(Uttarakhand) Lucknow and Pune in the first phase and will be later extended to other

facilities. EESL will undertake the complete upfront investment for the energy efficiency

programme with zero investment from Tata Motors. The overall implementation period for

the programme will be two years.On 6 December 2017 Tata Motors rolled out the first batch

of the Tigor Electric Vehicle (EV) manufactured for the Indian government's prestigious

order of electric vehicles from the Energy Efficiency Services Ltd (EESL) an entity under the

Ministry of Power. Tata Motors had qualified as L1 bidder in the midst of stiff competition

and won the tender of 10000 electric cars floated by EESL in September 2017.On 11

December 2017 Tata Motors announced that the company will display six new construction

and mining commercial vehicles from its Construck range at EXCON 2017 South East Asia's

largest construction equipment exhibition. On the same day Tata Motors announced that the

company would be increasing prices of its entire passenger vehicles range by up to Rs 25000

starting January 2018 to pass on rising input costs.On 19 December 2017 Tata Motors

announced that its small commercial vehicle Tata Ace has crossed 20 lakh sales milestone.

The vehicle was launched by Tata Motors in 2005. On 3 January 2018 Tata Motors

announced the first-of-its-kind `Best-in-class Warranty' for 6 years for the entire range of

Tractor-trailers Multi-axel Trucks & Tippers of 16 tonnes and higher GVW (Gross Vehicle

Weight). Tata Motors is the first company in India to introduce a standard driveline warranty

of 6 years on the entire M&HCV range. On 15 January 2018 Tata Motors announced the

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launch of company branded `Tata Motors Genuine Oil' exclusively for Tata Motors

commercial vehicles range in the Indian market. The product range includes high performing

engine oils gear oils and rear axle oil for commercial vehicles range manufactured by Tata

Motors for both on road and off road applications segment.On 5 March 2018 Tata Motors

announced the launch of the ZEST Premio compact sedan - a special edition car with 13 new

features and at a starting price of Rs 7.53 lakh for the diesel version (ex-showroom Delhi).

44
 MANUFACTURING UNITS OF TELCO

Tata Motors owes its leading position in the Indian automobile industry to its strong focus on
indigenization. This focus has driven the company to set up world-class manufacturing units
with state-of-the-art technology. Every stage of product evolution - design, development,
manufacturing, assembly and quality control, is carried out meticulously. Its manufacturing
plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.
Jamshedpur:
This was the first unit of the company established in 1945 and is spread over a area of 822
acres. It consists of 3 divisions - Truck, Engine (including the Gear Box division) and Axle.
The divestments in March 2000 hived off the Axle and Engine plants into independent
subsidiaries. The Truck Division boasts of two assembly lines. The main assembly line,
measuring 180 metres in length, has 20 stations with a vehicle rolling out every 8 minutes
while the other line is dedicated to Special Purpose Vehicles (SPVs). State-of-the-art
facilities like a Centralized Paint and Press Shop with a set-up of a 5000 tonns Siempelkamp
press line and a cut-to-length line for strip preparation purchased from M/s. Kohler of
Germany makes it a fairly advanced production outfit.
Pune:
The Pune unit is spread over 2 geographical regions Pimpri and Chinchwad and has a
combined area of around 510 acres. It was established in 1966 and has a Production
Engineering Division, which has one of the most versatile tools making facilities in the
Indian sub-continent. It houses a Vehicle manufacturing complex which is one of the most
integrated automotive manufacturing centers in the country producing a large variety of
individual items and aggregates. It is engaged in the design and manufacture of sophisticated
press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for the
development of new ranges of automobile products. Its capabilities have enabled Tata Motors
to introduce new products and improve existing ones without resorting to imports of dies or
fixtures.

45
Over the years, this division has developed expertise in design and manufacture of automated
dies, fixtures and welding equipment. Its large design group is fully conversant with state-of-
the-art CAD facilities and manufacturing facilities comprising of light and heavy CNC
machine shops, jigs boring room, plastic template shop, wood pattern and model pattern
shop, five axis precision machine tools and laser control machines. To cope with such a
diverse range, four assembly lines have been established, one each for MCVs and HCVs,
LCVs, multi-utility vehicles and one for Passenger Cars (Indica).
Industry experts rate the fully automated Foundry at Chinchwad among the best, worldwide.
The Iron Foundry produces 16,000 tonnes of high precision castings per year with the help of
450 employees. These include Cylinder Blocks, Cylinder Heads, Gear Box Housing, etc. To
dispense with the need for outsourcing, an Aluminium Foundry with an annual capacity of
700 tonnes has also been established.
Lucknow:

Lucknow Plant is the latest in Tata Motors's manufacturing facilities. Established in 1991 and
covering an area of 600 acres, it was primarily started to assemble Medium Commercial
Vehicles (MCVs) to meet the demand in the Northern Indian market. However, in 1995, the
unit started manufacturing bus chassis of Light Commercial Vehicles (LCVs) and SUMO's.
The unit is equipped with facilities to manufacture spare parts. Subsequently, G-16 and G-18
Gear Parts were added in 1998. The plant started to assemble G -16 GearBoxes in 2000 to
meet the in-house requirement for SUMO vehicles.

46
 PASSENGER CARS SEGMENTATION
The segmentation of the passenger car market in India is vastly different from that
in the developed nations. In India, the economy segment accounts for the largest
share of the cars sold, as compared to mid-range segment in the mature markets.
The economy and the premium segment face the lowest competitive threats, while
the premium segment will witness intense competition due to lower volumes.

Car market segments and legal classifications



Euro Other
Euro Car US EPA
NCAP Clas common Examples
Segment[2] Size Class[3]
s segment terms
Bond Bug, Smart
Quadricycl Microcar
— — ForTwo, Isetta,
e Bubble car
Mega City, Renault Twizy
Chevrolet Spark, Fiat 500, Kia
A-segment City car
Minicompact Picanto,
mini cars Kei car (JP)
Suzuki Alto, Renault Twingo
Supermini Ford Fiesta, Kia Rio, Opel
B-segment Corsa,
Subcompact —
small cars Peugeot 208, Volkswagen
Polo
Honda Civic, Hyundai
Elantra, Ford Focus,
—
Toyota Corolla, Volkswagen
C-segment Golf
Small
medium Compact
family car Acura ILX, Audi A3, BMW 1
cars
Subcompact Series,
executive Lexus CT, Mercedes-Benz A-
Class
Ford Mondeo, Toyota
— Camry, Peugeot 508,
Mazda6, Volkswagen Passat
D-segment Large Compact
Mid-size Alfa Romeo Giulia, Audi
large cars family car executive (U.K.
A4, BMW 3 Series,
)
Lexus IS, Mercedes-Benz C-
Entry-level
Class
luxury (U.S.)

47
 Chevrolet Impala, Chrysler
Full-size 300, Ford Taurus,
car (U.S.) Holden Caprice, Toyota
E-segment Avalon
executive Executive
cars Audi A6, BMW 5
Mid-size Series, Cadillac CTS,
Large
luxury (U.S.) Mercedes-Benz E-Class, Tesla
Model S
Full-size luxury Audi A8, BMW 7
F-segment (U.S.) Series, Jaguar XJ,
—
luxury cars Luxury saloon Mercedes-Benz S-
(U.K.) Class, Porsche Panamera
Bugatti
Veyron, LaFerrari, Lamborghi
— — Supercar ni Aventador,
Pagani Zonda, Porsche 918
Spyder
S-segment Chevrolet Camaro, Mercedes
sports CLK,
— — Convertible
coupés Volvo C70, Volkswagen
Eos, Opel Cascada
BMW Z4, Lotus Elise, Mazda
Roadster Roadster MX-5,
Two-seater
sports Sports car Porsche Boxster, Mercedes-
Benz SLK
Citroën C3 Picasso, Kia
Mini MPV Venga, Ford B-Max,
Opel Meriva, Fiat 500L
Small MPV Chevrolet Orlando, Ford C-
M-segment
Max, Suzuki Ertiga,
multi Compact MPV
Minivan Renault Scénic, Volkswagen
purpose
Touran
cars
Chrysler Pacifica (RU), Kia
People mover Carnival, Renault Espace,
Large MPV
(AU) Toyota Sienna, Citroën C4
Grand Picasso
J-segment Small off- Small SUV Mini 4x4
Daihatsu Terios, Ford
sport utility road 4x4 (U.K.)
EcoSport, Jeep Renegade,
cars Mini SUV
Peugeot 2008, Suzuki Jimny
(U.S.)
Compact 4x4 Toyota RAV4, Ford
(U.K.) Escape, Honda CR-V,
Compact SUV Peugeot 3008, Kia Sportage
48
 Large 4x4 Ford Edge, Hyundai Santa
(U.K.) Fe, Jeep Grand Cherokee,
Mid-size SUV Volkswagen Touareg, Volvo
(U.S.) XC90
Large off- Standard SU
road 4x4 V Lincoln Navigator, Range
Full-size SUV
Rover, Chevrolet Suburban,
(U.S.)
Toyota Land
Large 4x4
Cruiser, Mercedes-Benz GLS-
(U.K.)
Class
TABLE: 3.8
Key Demand Drivers

Traditionally, disposable income was perceived as the one critical factor that drove
passenger car demand. However, household income is no longer the single most
important factor in determining the demand for vehicles. Other critical factors are
the mobility needs of people and the availability of cheap finance. The top three
income groups - middle, upper middle, and high - have grown from 10% in 1986 to
17% of the population and covers over 52 million families. The number of high-
income households is growing very rapidly, more so in the rural areas. These
findings have revolutionary implications for the passenger car market. The
development of the used car market will also play a major role, as the customers
will be encouraged to trade in their old cars. The key to the growth of future
markets is to make maintenance-free vehicles, to improve the road infrastructure,
and to reformulate fuels and lubricants so as to reduce vehicle-operating costs.

PRICING
In any business, nothing is more dangerous than using money as the magnet for attracting
customsers. It kills loyalty, mangles margins, and encourages defections. But it is the Unique
Selling Price the only road to success in the intensely competitive automobiles business?
Those in the race for winning over the Rs. 7,500-crore small cars market seem to believe so.
In the small car segment, the only ‘P’ that, suddenly, seemed to matter was the second in the
Product-Price-Promotion-Place marketing-mix.

49
However, not every company plays the price-card. Instead of cutting the price of Santro,
Hyundai Motors has launched an enhanced version with product features like power steering,
and product-plus features like better service and customer-care. Hyundai arrived at the
pricing strategy after a careful analysis. It does not believe in knee-jerk reactions to rival
moves. It also believes that when features are the USP, second P Marketing cannot help
reinforce that position. Strategic price marketing is a corporate weapon that must be applied
in the context of an entire portfolio of cars. Attempting to sell the lowest priced car in every
segment will not enable a company to survive.
Sure, the lower price will be an attraction to the first-time buyer who is, essentially, stretching
his budget to buy personal transportation. The less the stretch, the more is the likelihood of
actually buying a car instead of, say, a two-wheeler. So, even a drop of Rs.1000 in the small
cars segment could expand its size.
Go beyond the entry level – and the price-value equation will kick in immediately. Only if all
other things are perceived to be equal between competing brands will price be a decider.
Once incomes start rising again, there will emerge increasing numbers of upgrades as well as
first-time buyers who will not necessarily start at the lowest price-level. Thus, price will
become less important. Applied as a brand-level strategy, price may help the auto-marketers
win over only the entry-level customer.
However, only the lowest priced player will milk this segment. The rest of the low-price
aspirants will have to offer additional features as value to convince the budget-buyer to spend
more. As a corporate strategy, leading the charge through price may have a better pay-off. A
low –priced product will enable new entrants to gain entry into the consumer’s garage. The
threat, however, is that of a dangerous dilution of image.
Thus price can be a selling proposition for only one segment of customers. But a company
that seeks life-long customers, who progressively move up its product ladder, cannot rely on
price alone for success.

50
The main purpose of this section is to have an insight into TELCO’s external environment.
Here, we shall be briefly looking at the factors influencing its external environment, its
competitors and the kind of competition it faces.

51
 PRODCUT OF TATA MOTORS

Tata Motors are leaving no stone unturned for its flagship offering, the Harrier. The Indian

automobile manufacturer have been releasing a series of videos of the Harrier SUV that

showcases its different traits. Be it the land terrain response system that has been borrowed

from Land Rover, the all-new Kryotec 2.0L engine or the Omega ARC platform that again

shares its underpinnings with the Land Rovers SUVs. Tata Motors have officially started

taking bookings of the Harrier SUV that will hit dealerships in early 2019. And now the

ompany has released a teaser of the side profile that shows its production-spec guise.

The exterior design of the production car will follow Tata's Impact Design 2.0 showcased at

the 2018 Auto Expo. So, a slimmer front grille and lights, aggressively contoured side

profiles, steeply raked roofline and large wheel sizes can be expected. As for the interior, it

will have to be the best ever fitted to a Tata car and build on the kind of progress that the firm

has been making in this aspect.

52
 TATA NAXON

The Nexon made its debut as a prototype exhibited at the New Delhi Motor Show in 2014.

The final model was presented in 2016. It is Tata's first crossover SUV.

The Nexon is based on the revised Tata X1 platform debuted in 1998 with the Indica model

and adopted by other Indian brand cars. It uses independent MacPherson dual-path strut with

coil spring front suspensions and rear twist-beam with coil spring and shock absorber. The

wheelbase is measured at 2,498 mm (98.3 in). It is characterised by two-tone

paint, LED headlamps and large chrome bands along the side.

The engines are developed by Tata Motors and Austrian engineering company AVL:

the petrol engine is the 1.2 L Revotron three-cylinder turbo 12-valve that delivers 82 kW

(110 hp; 111 PS) and 170 N⋅m (125 lbf⋅ft) of maximum torque combined with a 6-

speed manual or automatic transmission; the diesel engine is a 1.5 L Revotorq four-

cylinder common rail 16-valve that delivers 82 kW (110 hp; 111 PS) and 260 N⋅m

53
(192 lbf⋅ft) of maximum torque, also paired with a 6-speed manual or automatic transmission.

Tata Nexon is available in seven variants – XE, XM, XMA, XT, XZ, XZ+, and XZA+. The

automatic versions have 3 different driving settings. In 2018, Tata added a panoramic sunroof

option.

Despite being presented in February 2016, production at the Fiat India Ranjangaon plant

started in July 2017 and sales in India started since September of the same year.  As of

December 2018, Tata Motors has not exported the car outside India. The company has not

confirmed if the car will be exported to Europe either. In August 2018 the 50.000 Nexon

rolled out of the factory.

A facelifted version of Nexon is expected in 2020 along with the BS6 compliant engines.

54
 TATA HEXA

The Tata Hexa is a mid-size (J-segment) SUV manufactured by Indian passenger and

commercial vehicles manufacturer Tata Motors. The SUV, which was originally unveiled in

the 2016 Geneva Motor Show, was launched into the Indian markets in January 2017.

The Tata Hexa is based on the company's previously used Aria platform, with a body-on-

frame chassis.

Hexa uses Tata's Impact design language, also used in Tata Tiago, Tata Tigor, Tata

Nexon and the Tata Harrier. The company uses its three design studios in India, the UK and

Italy for designing cars in this design framework.

The Tata Hexa is available in a number of variants, all of which are differentiated based on

cabin features, design aesthetics as well as engine.

Model Engine Displacement Transmission Power Torque

XE 2.2 L Varicor 320 4 2179cc 5-speed 110.32 kW (150 320

cylinder Diesel manual PS)@4000 rpm Nm@1500-
55
 engine (CRDi) 3000 rpm

6-speed
manual
2.2 L Varicor 400 4 400
114.73 kW (156
XM cylinder Diesel 2179cc Nm@1750-
PS)@4000 rpm
engine (CRDi) 2500 rpm
6-speed
automatic

6-speed
2179cc
manual
2.2 L Varicor 400 4 400
114.73 kW (156
XT cylinder Diesel Nm@1750-
PS)@4000 rpm
engine (CRDi) 2500 rpm
6-speed
automatic

2.2 L Varicor 400 4 400

XT 6-speed 114.73 kW (156
cylinder Diesel 2179cc Nm@1750-
4x4 manual PS)@4000 rpm
engine (CRDi) 2500 rpm

56
 TATA BOLT

The T ata

Bolt is a hatchback produced by Tata Motors. The car was revealed at Indian Auto Expo

2014 along with its sedan version, the Tata Zest and went on sale in January 2015. The new

car is based on existing Tata X1 platforms on which Vista and Manza are built. The

hatchback is made available in both the fuel trims with 4 variants in petrol and

diesel.Production of the Bolt ceased in April 2019.

Engine

The petrol version of the hatchback is powered by the 1.2-litre Revotron Turbocharged MPFi

engine which gives a power of 90 PS and torque of 140 Nm. It has three drive modes

namelyCity, Eco and Sport. The diesel model gets Fiat’s 1.3-litre Multijet diesel engine

dubbed as Quadrajet. The diesel mill churns a max power of 75 PS and torque of 190 Nm.

Both the engines are mated to five speed manual transmission.

57
 TATA TIAGO

The Tata Tiago was born as the successor of the previous Tata Bolt, which was nothing but a

heavy restyling of Tata Indica Vista. Like the Indica Vista, even the Bolt did not get the

desired success and Tata began designing a completely new vehicle (Kite project) of a city

car with 5-door body that could boost the sales of the brand in the Indian territory.

The base platform was always the Tata X1 chassis that also adopted the previous Indica and

Bolt but was heavily modified and shortened because with the new car Tata Motors wanted to

lower the list price as well as the production costs. Also the engines were all new and the

old Fiat 1.2 FIRE and 1.3 Multijet unit adopted by the previous models were abandoned.

With the Tiago, Tata brings to its debut the Revotron and Revotorq three-cylinders designed

58
together with Austria's AVL, a family of modular propellers designed to equip the entire

range of the Indian manufacturer.

The Tiago was 3.75 meters long, shorter than the old Tata Bolt, the body has 5 doors. From

the Tiago has also been developed a sedan variant called Tata Tigor.

The engines are the 1.2-liter Revotron three-cylinder 12V petrol that delivers 85 horsepower

and 114 Nm of maximum torque combined with a 5-speed manual transmission or 6-speed

automatic, the diesel is a 1.1-liter Revotorq three-cylinder common rail 12V 70 horsepower

delivering 140 Nm of maximum torque, combined with a 5-speed manual transmission. The

Tiago is produced only with right hand drive in Tata Motors Sanand plant and is not expected

to be imported in Europe.

In September 2018, Tata Motors launched the Tiago NRG in the Indian market, a crossover

like trim with a 10 mm raised, raw plastic guards for the bumpers and sills, two-tone alloy

wheels and a rear bumper shield. The Tiago NRG is sold with both 1.2 petrol and 1.05 diesel

engines.

59
 TATA TIGOR

The Tata Tigor was born directly from the same project that originated the Tata Tiago

(internally called Kite 5) as it represents the four-door sedan version with a third rear volume.

The Kite project was born in 2013 with the aim of developing two new compact cars, modern

and inexpensive to offer on the Indian market in place of the Tata Zest and Bolt models that

did not have the desired success as they were nothing but the profound restyling of the

previous Indica Vista and Indigo Manza. In particular, Tigor replaces the Tata Zest.

Compared to the Zest the Tata Tigor is slightly shorter than a few millimeters, and even the

pace measures only two millimeters less, the overall length is 3.994 meters as in India the

cars that fall within the 4 meters limit enjoy tax breaks. The defects that manifested the old

Zest were the rather small trunk with a capacity of only 370 liters and limited opening due to

the rear lamps too intrusive. The Tigor instead offers a 419 liters trunk and the size of the rear

lights have been reduced as well as being divided into two elements (on the Zest the headlight

was in one piece).

60
The official presentation of Tigor takes place at Auto Expo 2016 in pre-production version

with still the design name Kite 5, while only in 2017 is the official Tigor name announced for

the model and consequently the official production starts with sales instead of start in March

of the same year on the Indian market.

Like the Tata Tiago, also Tigor uses the Tata X1 platform, re-engineered respect to the old

platform version used by Indica and later by Bolt.[4] The wheelbase compared to the Tiago is

stretched by 5 centimeters to increase the rear habitability. The Tigor is front-wheel drive, the

suspension uses a very classic scheme: MacPherson front end with stabilizer bar, wheeled

rear axle with twist bridge. Front disc and rear drum brakes.

The engine range consists of the petrol 1.2-liter Revotron three-cylinder 12V that delivers 85

horsepower and 114 Nm of maximum torque with a 5-speed manual transmission or 5-speed

automatic and a diesel 1.1-liter Revotorq three-cylinder common rail 70 horsepower 12V

delivering 140 Nm of maximum torque, combined with a 5-speed manual transmission. Like

Tiago, Tigor is produced only with right-hand drive and is not expected to be imported into

Europe.

61
 STRATEGY IMPLEMENTATION
SEVEN S FRAMEWORK

The Boston Consultancy Group in the 1970s developed the ‘Seven S Framework’. It was
designed to build a cohesive strategy, and in turn integrate the 7S, these 7S are inter-related
and inter-dependent.
For the success of an organization the Seven S cannot work in isolation, they have to be
brought together.
For the Strategies to work at Telco, it is important that the company employs the framework.
To implement the framework the company should consider the following aspects-

STRATEGY
The strategies that the company needs to employ have been discussed in the previous section.
The strategies differ on the various levels, i.e. different for Corporate, Business, Operational
and International Levels. These strategies have to be aligned with the following elements.

STRUCTURE

When the company undertook the restructuring exercise, it was the first major restructuring
the Tata group had undertaken. The first phase of restructuring required some basic
foundation building. The group developed a common corporate identity for all group
companies leveraging the strengths of the Tata brand. The group companies were required to
sign an agreement to use the Tata brand, which entailed the compliance with the quality
standards and business ethics that we codified at that time. The company developed the Tata
Business Excellence Model to measure the quality and corporate performance of our
companies, and required them to achieve the specified level of performance in order to
continue the Tata Brand.
The company instituted the business review committees (BRCS), which constituted the
formal interface between the group and the holding company. The BRCS reviews the
strategic direction of each company, and the executive committee of each board reviews the
operations and the budget of the company.
62
To oversee the entire restructuring exercise, the group created a central group, which they
called the Group Executive Office (GEO). Its primary task was to look at the strategic
direction of each of our companies, in the process of which it set some tasks for our company
in terms of bottom-line and top-line growth based on historical growth trends, as industry
leadership in terms of being number one, two, or three. Ultimately, the GEO takes a view on
the figment of companies within our group.

Telco has also decided to restructure its operations by reducing its level of vertical
integration. Towards this, the company has decided to hive off three of its ancillary divisions
in Pune and Jamshedpur. The company is at present on the look out for suitable alliances with
international majors.
The company has set up an independent retailing network for cars and also for other utility
vehicles. The strength of dealership for these now stands at 118.

SYSTEMS
Systems are the procedures that make the organization follow for everything from top-level
decision making to board meetings, from employee training and hiring to transportation. All
the company’s activities should have a particular system particular to the company.
The GEO as mentioned above has put in place certain important hooks such as a central HR
and central financial coordination with a view to standardize the MIS systems of Telco for
financial reporting to the holding company. The net result of all these initiatives has been that
Telco now operates more as a group than what they did in the past, but what this really meant
was that each company had the stamp of its own CEO and went its own way, and if you
remove the name o the enterprise you could be looking at different companies with no
connection to the Tata’s.

STYLE
Every company has its own management style, style also consists of the way a company
operates its business.

63
As mentioned above the company instituted the business review committees (BRCS), which
constituted the formal interface between the group and the holding company. The BRCS
reviews the strategic direction of each company, and the executive committee of each board
reviews the operations and the budget of the company.

STAFF
This aspect concerns itself with the pool of people who need to be developed.
Telco takes a lot of efforts to ensure the best trainee level talent, through campus recruitment
from the top institutes of the country. It then gives them the proper training and development,
giving them the opportunity to grow and improve.

SUPER-ORDINATE GOALS
These are goals on which the other elements and other goals of the organization should
depend upon. These are reflected in the thinking of the organization.

These are Tata’s Diktat:

Globalize: With economies opening up, Tata companies are aiming for global benchmarks to
compete.
Be Skill – Intensive: With manufacturing ceasing to be India’ s advantage, the thrust is on
knowledge – based industries.
Build brands: Shift from selling commodities to marketing branded products and services that
not just differentiate but fetch a premium.
Leadership: To justify shareholder interest, Tata companies must be among the top three in
their industries.
Enhance Performance: Executives must pull their weight, and the best of them must get
opportunities across functions and group companies.

LEADERSHIP

64
Leadership is defined as “The art or the process of influencing people so that they will strive
willingly and enthusiastically towards achievement of the group’s mission”. Leadership is
something that greatly affects any company’s philosophy, culture, and in-turn the overall
health of the company. Telco always has had a tradition of great leadership. One of its
founders Jamshedji Tata has been a hallmark of leadership.
That surge of electricity – not unnoticed by merchant bankers, now crawling all over Bombay
House, the group headquarters – is in fact the spark that the group is looking for to rocket
itself into a new orbit of growth. In 1991, when a shy and reclusive Ratan Tata took over the
chairmanship of the group from uncle J.R.D Tata, his priority was not new businesses or even
growth. It was something much more immediate – and arduous. It was to turn a loose
confederation of companies, controlled powerfully by powerful satraps, into a group that
thought and acted like one. The challenge however wasn’t merely of ousting powerful
chieftains like Russi- Mody of Tatasteel, Ajit Kerkar (Indian Hotels) or Darbari Seth (Tata
Chemicals).
Over the last the 10 years, Ratan Tata has quietly entered 15 new businesses, exited 11, and
herded the rebellious Tata companies into a cohesive group. Tata now wants to double
revenues every four years, and profits, every three. His secret weapon: branded products and
services. He wants to justify shareholder interest and wants Tata companies to be among the
top three in their industries.

65
66
Q1. Which of the following best describes your line of work?

Cumulative
Frequency Percent Valid Percent Percent

Valid services 36 22.9 22.9 22.9

business 66 42.0 42.0 65.0

student 27 17.2 17.2 82.2

Taxi services 28 17.8 17.8 100.0

Total 157 100.0 100.0

From this we interpret that most of the customers in that area are business people followed by
service class. The housewives do not come to the showroom for the service or purchase of
cars.

67
Q2. payment procedure preference

Cumulative
Frequency Percent Valid Percent Percent

Valid cash 30 19.1 19.1 19.1

cheque 27 17.2 17.2 36.3

finance 100 63.7 63.7 100.0

Total 157 100.0 100.0

Most of the customers prefer purchasing a car by the method of finance. So the company
should have links with various finance companies at their respective dealership showroom for
the convenience of customers. The easy the method of financing, more

68
Q3. Which company's car do you possess * Spare parts availability
Crosstabulation
Count

Spare parts availability

2 3 4 5 Total

Which company's car do Tata 3 15 76 10 104

you possess Fiat 12 24 8 9 53
Total 15 39 84 19 157

Customers of Tata have given higher rating to the availability of the spare parts than that of
FIAT. The spare parts of FIAT were not available at all times.

69
Q4. Income group (in lacs) * payment procedure preference
Crosstabulation
Count

payment procedure preference

cash cheque finance Total

Income group (in below 3 0 0 30 30

lacs) 3-6 0 3 25 28

6-9 21 6 36 63

9-12 9 10 8 27

Above 12 0 9 0 9
Total 30 28 99 157

Customers below the income of 3 lacs finance their vehicles. From 3-6 lacs also customers go
for financing scheme. In the group 6-9 lacs financing is still the majority but a great deal of
rise in cash mode of payment is seen. In 9-12 lacs cash and cheque mode of payment is seen.

70
Customers above the income group of 12 lacs prefer making the payment by cheque and do
not prefer financing their vehicles.

Q5. payment procedure preference

Cumulative
Frequency Percent Valid Percent Percent

Valid cash 30 19.1 19.1 19.1

cheque 27 17.2 17.2 36.3

finance 100 63.7 63.7 100.0

Total 157 100.0 100.0

Most of the customers prefer purchasing a car by the method of finance. So the company
should have links with various finance companies at their respective dealership showroom for

71
the convenience of customers. The easy the method of financing, more customers are
attracted to the company than their competitors. It gives the company an edge over its
competitors.

72
Q6. Gender * What parameters do you seek in a car before buying
Crosstabulation
Count

What parameters do you seek in a car before

buying

brand
popularity performance looks & style Total

Gender Male 19 66 60 145

Female 0 3 9 12
Total 19 69 69 157

73
Males look for performance as a parameter in their decision making to purchase cars where
as female prefer looks and style of the car as a parameter before purchasing.
Q7. Which of the following best describes your line of work? * What parameter
important for rebuying Crosstabulation
Count

What parameter important for rebuying

post sales maintenance

service mileage cost Total

Which of the following services 6 18 12 36

best describes your line business 25 28 13 66
of work?
student 9 3 15 27

Taxi services 3 19 6 28
Total 43 68 46 157

Customers of service class give more importance to mileage than maintenance cost followed
by post sales service.
Customers from business class have an almost equal weightage for mileage and post sales
service but mileage has an upper hand. The least important parameter as maintenance cost.

74
In case of students, maintenance cost is the prime parameter followed by post sales service
and mileage.
In case of taxi, mileage plays an important role followed by maintenance cost.

75
Q8. Age * What parameters do you seek in a car before buying
Crosstabulation
Count

What parameters do you seek in a car before

buying

brand
popularity performance looks & style Total

Age 18-25 0 6 30 36

26-35 7 33 27 67

36-50 12 27 9 48

Above 51 0 3 3 6
Total 19 69 69 157

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Customers from the age group 18-25 goes for looks & style of the car for buying it.
From the age group 26 and above, they give more importance to performance of the car.

Q9. Age * What parameter important for rebuying Crosstabulation

Count

What parameter important for rebuying

post sales service mileage maintenance cost Total

Age 18-25 12 3 21 36

26-35 13 41 13 67

36-50 15 21 12 48

Above 51 3 3 0 6
Total 43 68 46 157

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In making their re-purchase decision, customers from age group 18-25 give importance to
maintenance cost than post sales service and lastly to mileage.
Where as all the customers from other age groups give preference to mileage in rebuying.
Q10. Which of the following best describes your line of work? * payment
procedure preference Crosstabulation
Count

payment procedure preference

cash cheque finance Total

Which of the following services 6 0 30 36

best describes your line business 24 27 15 66
of work?
student 0 0 27 27

Taxi services 0 0 28 28
Total 30 27 100 157

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Customers from service sector, students and taxi service providers prefer finance as a mode
of payment for the purchase of cars. Where as business class prefer payment to be made
either by cash or cheque.

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SWOT ANALYSIS

Strength

 Technology and manufacturing know-how that lets Tata Motors make cars more
profitably than most other carmakers.

 Flexible manufacturing system gives it an advantage over most of the carmakers.

 It requires smaller number of platforms but multiple assembly lines for production
that provides better, cheaper, more oriented management and production.

 Research- Its R&D budget now exceeds that of Japan's No. 2, Nissan. Tata Motors
spends 5% of revenues on R&D.

 Tata Motors possesses Goodwill and Credibility in the Indian automobile market

Weaknesses-

 It is a new concept to be launched in the market where majority of the consumers go

for family cars. Also it has not been tested in the market, therefore there is risk
involved with the launch.

 It can't afford a wrong move on big-volume models. Tata Motors relies on Civic and
Accord sedans for 55% of sales.

 Tata Motors is unable to spread its fixed costs for engineering, technology, and
marketing over a huge volume of vehicles.

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Opportunity

 It is first sports car to be launched in the Indian market; therefore it has no real
competitor.

 According to the facts India has emerged as one of the largest automobile market in
the global community.
Threat

 A new competitor in Indian market.

 Price wars with competitors.

 A competitor like Toyota has a new, innovative product or service.

 Competitors may have superior access to channels of distribution.

 Taxation is introduced on your product or service.

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82
STRATEGIES

To improve its market position, the company has a number of strategies at various levels.

These are-

1. Corporate Strategies

2. Business Strategies

3. Operational Strategies

4. International Strategies

CORPORATE STRATEGIES

Corporate Strategies are strategies that the company employs at the top level, these are not

concerned with areas of operation, but are concerned with achieving the strategies of the

company as a whole. These help in achieving the Strategic Objectives that the company has.

Globalize: With economies opening up, Tata companies are aiming for global benchmarks to

compete.

Be Skill – Intensive: With manufacturing ceasing to be India’ s advantage, the thrust is on

knowledge – based industries.

Build brands: Shift from selling commodities to marketing branded products and services

that not just differentiate but fetch a premium.

Leadership: To justify shareholder interest, Tata companies must be among the top three in

their industries.

Enhance Performance: Executives must pull their weight, and the best of them must get

opportunities across functions and group companies.

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BUSINESS STRATEGIES

Business Strategies are the strategies that Telco uses in the various areas of business that the

company operates in. These strategies can be studied separately for all the segments:

As we know that Telco is the leader in the commercial vehicle segment with 54% market

share in Light Commercial Vehicle (LCV) and 63% market share in Medium & Heavy

Commercial (M & HCV). Telco has a market share of 22% in utility vehicle segment. The

company has also garnered a 9% market share in the passenger car industry in a very short

span. The decision of the government to ban diesel buses and give licenses to CNG buses has

been a boon for TELCO as it is the major supplier of buses to all State Transport

Corporations. Though only few state governments are stern in implementing this order but

TELCO will remain one of the major suppliers of buses and hence can plan expansion.

Telco will use GOI policy towards its benefits as depreciation norms and excise duty etc will

have a bearing demand for MUV’s and CV’s. The implementation of infrastructure projects

will have a positive impact on demand of CV’s and MUV’s as they are extensively used in

transportation of material and people requirement of projects. The freight rates determine the

revenue component of fleet owners. The improvement in freight rates consistently over this

period will add to business of TELCO. Though oil prices have gone up but the shift in the oil

sector companies towards a positive pricing strategy will not affect Telco’s business plans &

performance.

Though the metropolitans have become over-crowded and but Telco’s Indica V2 sales have

picked up. The Company vigorously pursued a programme of product innovation in

commercial vehicles with a view to regaining and improving its market share. The company

had already added to its range Euro 1 Compliant Cummins Engine Powered Vehicle with a

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view to regaining and improving its market share. Major innovation in the current year

include

 A 25 Tonnes Truck and a 30 Tonne Tractor Trailer

 Fuel Efficient M&HCV Truck and Busses Powered by Company’s Euro 1 Compliant 697

Engines

 A Cost Effective 11 Tonnes Vehicle in both bus and truck version to meet the growing

demand in this segment

 A Fur Tonnes LCV fitted with an internally developed Turbo charged Engine.

OPERATIONAL STRATEGIES

These strategies are employed at the operational level, it deals with the working of the

organization once the Corporate Strategies have been decided.

1. QUALITY CONTROL- the company has adopted a new philosophy of Total Quality

Management. In the future it can extend this philosophy more to the suppliers and

stockiest. It should also train the employees towards TQM, and adopt various policies to

improve quality.

2. HR POLICIES- the company operates in a number of areas where HR is the main

resource, and it should indulge into more team building exercising to improve the

efficiency of its employees.

3. IMPROVE HR BASE- just recently the company has been unable to attract fresh talent

to its new initiatives. The company should find attempt to lure fresh talent through

initiatives such as Factory gate recruitment, more autonomy, better pay packages etc to

lure fresh talent.

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INTERNATIONAL STRATEGIES
1. INVEST HEAVILY IN R&D- the main area where Telco can improve in its efforts to

make an impact in the global marketplace is by improving its R&D base and bringing it

up to world standards. Also Telco can get into strategic alliance with a international car

manufacturer for R&D support.

2. STRATEGIC TIE-UPS- the company should attempt to tie up with some Strategic

Partners, to help it gain entry into foreign markets. These partners should have

competencies in the area of cost management or R&D, or these companies might be

suppliers who provide inputs in the projects taken up by the company

Consumers of small cars are seeking a very good overall performance in a car than any other

attributes. Most of the consumers prefer Small cars and mid sized cars for their good mileage,

good acceleration, easy derivability, requiring small rooms for parking. Good looks

hardly count for the buyers of small cars.

Again a good after sales service and low maintenance in a vehicle is a garnish on

customer’s delight. Safety and credit facilities are almost ignored factors in purchasing a

small car.

Family wields the highest influencing power in making a purchase decision for an Indian

consumer. Friends and media also have a good impact on decision-making. A very few

consumers take a self-purchase decision.Usually consumers get detailed information

through friends, magazines, other car owners and dealers whereas, they get the product

information from the other sources like television, hoardings etc.The dream cars of the

consumers are high luxury cars like Mercedes S-class, BMW, Ferrari, Pajero, Rolls

Royce, Jaguar, Porsche, the cars with a class apart when it comes to their brands images,

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cars which flaunt status, style, wealth and attitude of the people owning them, cars which

are considered to the best on the globe.

LEARNING

Learning is defined as “The gaining of knowledge or skill”. The environment around us is

constantly evolving, it is important for anyone to constantly evolve and improve. This is no

different for a company, who keeps on evolving, and attempting to learn faster than its

competitors.

The learning-based route forward believes that route to success is adopting a flexible,

emergent strategy that monitors events in the environment and reacts to them in the best

possible way.

Telco has adopted a learning route forward, it has showed that it reacts well to market

changes and various events; its strategy has always evolved according to these changes.

Seeing the opening up of the market, and the growth of the infrastructure, the company

decided to look for alliance partners, to come up to world-standards.

In the future Telco should continue to learn and evolve into a world-class company, and make

changes that will help it achieve its goals in the best possible way.

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88
1. The time for which the project was conducted was very short. Hence the
sample size was restricted to 60 only.
2. The scope of study was also restricted to the study of awareness about the
consumer preferences. It could be widened to cover various others aspects of
product demand.
3. As there are many competitors of Tata motors in the pvt.sector. Only 3 of its
competitor’s products were analyzed in detail. A detailed study of all the
competitors of Tata motors would have given more reliable and accurate
results.
4. The area from where the sample population was selected was Delhi only.
Other cities and moreover rural area was not covered under the study.
5. The primary data was collected form present and potential customers of
products to evaluate their preferences. But the preferences of marketing agents
were not considered which would have helped to evaluate the preferable
commission sale which helps to boost product sale.

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90
In the end, I can conclude that most of the respondents who were questioned

gave importance to performance of the car. Other factors like safety, brand

name, style, performane cost were not given much importance.Hereby I can say

that performance matters the most.Other features are not important for the

customers. Tata motors give much importance to the performance of the car

and conducts surveys to know the changing needs of the customers .

My project is based on Marketing strategy process followed in Tata Motor’s

Pvt Limited.
I have gained practical knowledge on Marketing strategies through Job portals.
Basically I worked on Naukri.com to fetch various strategies for Engineering
Department. Working on Job Portals was a good experience and it made me
clear about the concepts of Digital Marketing. I have studied various Marketing
Department and their functioning.

Also I studied the cultural shift in the company. I observed that at Tata Motors
Private Limited the management has a transparent approach and flat
organization structure is being adopted. There is more emphasis being given on
communication among all levels. A number of meetings, journals and programs
are being conducted to ensure continuous communication. Family connect is
given high priority and various events like parivar Milan, family day, plant
visits, sports, vishkarma pooja, etc are being organized. Then welfare activities
such as employee children counseling, scholarships, etc. are being organized

.
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Also the contractual labor is taken good care of and they are also offered good
facilities like uniform, shoes, canteen, etc. A healthy working environment is
encouraged in all the departments and Kaizen is being practiced to ensure a
state of continuous improvement in some part of the plant or the other.
Effective Marketing Strategy is the initial step and the most important key point
to run any organization. The success or failure of an organization is largely
dependent on the caliber of the people working therein. Without positive and
creative contributions from people, organization cannot progress and prosper. In
order to achieve the goals or perform the activities of an organization, therefore,
we need to recruit people with requisite skills, qualifications and experience.

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Reference books:
Mowen c. John Consumer Behavior Macmillian publication 6 th edition
Tull & Hawkins Market Research Pearson publication 7 th edition
Internet:
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 http://www.tata.com/0_careers/our_people/20020214_suman1.htm
http://www.tata.com/0_b_sectors/index.htm
http://www.cybersteering.com/auto_makers/telco/tata.html
http://www.tata.com/tata_engg/index.htm
http://www.tatainternational.com/automob_products.asp
http://www.tata.com/tata_engg/articles/index.htm
http://www.telcoindia.com/home.htm
http://www.tata.com/tata_engg/media/20020228.htm
http://www.tata.com/tata_engg/articles/2000106051indica2.htm
http://www.tata.com/tcs/articles/20011110_auto_engg_service(1).htm
www.marutiudyog.com
www.hyudaimotorindia.com
www.autoweb.com

Magazines
Business today

News Papers
Economic Times
Business line

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Q1. Which of the following best describes your line of work?

 Valid Services
 Business
 Student
 Taxi Services

Q2. Payment procedure preference

 Valid Cash
 Cheque
 Finance

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Q3. Which company's car do you possess * Spare parts availability Crosstabulation
 Which Company card do Tata
 You Process

Q4. Income group (in lacs) * payment procedure preference Crosstabulation

 Income Group (Below 3 Lacs)
 3-6
 6-9
 9-12
 Above 12

Q5. Payment procedure preference

 Valid Cash
 Cheque
 Finance

Q6. Gender * What parameters do you seek in a car before buying Crosstabulation

 Male
 Female

Q7. Which of the following best describes your line of work? * What parameter
important for rebuying Crosstabulation

 Service
 Business

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  Student
 Taxi Services

Q8. Age * What parameters do you seek in a car before buying Crosstabulation

 Age 18-25
 26-35
 36-50
 Above 51

Q9. Age * What parameter important for rebuying Crosstabulation

 Age 18-25
 26-35
 36-50
 Above 51

Q10. Which of the following best describes your line of work? * payment procedure
preference Crosstabulation

 Services
 Student
 Taxi Service
 Business

Q11. Give any comment.

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