AUTOMOBILE INDUSTRY OF INDIA

A Nations economy is well known from its transport system. For instant and rapid
growth in economy, a well-developed and well-networked transportation system is
essential. As India's transport network is developing at a fast pace, Indian Automobile
Industry is growing too. Also, the Automobile industry has strong backward and forward
linkages and hence provides employment to a large section of the population. Thus the
role of Automobile Industry is very essential in Indian economy. Various types of
vehicles are manufactured by the Automobile Industry. Indian Automobile Industry
includes the manufacturing of trucks, buses, passenger cars, defense vehicles, two-
wheelers, etc. The industry can be broadly segmented into the Car manufacturing, two-
wheeler manufacturing and heavy vehicle manufacturing units. The major Car
manufacturer are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd
., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd. Hyundai Motors India Ltd.,
Skoda India Private Ltd., Toyota Kirloskar Motor Ltd.

The two-wheeler manufacturing is dominated by companies like TVS, Honda

Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The heavy
motors like buses, trucks, defense vehicles, auto rickshaws and other multi-utility
vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj,
Mahindra and Mahindra, etc.

The Indian Automobile Market growth is expected to grow at a CAGR of 9.5 percent
amounting to Rs. 13,008 million by 2010 which is a big in number. The Commercial
Vehicle Segment has been contributing to the automobile market to a great extent. So
as in passenger luxury cars now

Many foreign companies like Mercedes, Suzuki, Chevrolet, Honda, Mitsubishi, Toyota,
Hyundai etc. have been investing in the Indian Automobile Market in various ways such
as technology transfers, joint ventures, strategic alliances, exports, and financial
collaborations. like maruti joined hands with Suzuki in passenger cars, same as
Mahindra with Renault, hero joint ventures Honda in two wheeler segment, ashkoa with
Leyland in commercial vehicle segment. The auto market in India can boast of attractive
finance schemes, increasing purchasing power, and launch of the latest products.
Investments in the automobile industry by the foreign companies in india help in
strengthening the india`s economy.

India`s giant automotive manufacturer company TATA MOTORS has largest share in
commercial vehicle. and now they have acquired the jaguar and range rover globally,
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capturing international market too, also they are exporting their key products in the
international market.

Total sales of major car manufacturers in India registered a figure of 0.674 million units
at the end of March, 2007. The number of car exports in India was 39,295 units.
General Motors, Maruti, and Honda accounted for 60 percent of the market sales at the
end of April, 2007. As the increase in per capita income is observed in india, There has
been an increase in the purchase of motorcycles and cars both in the rural as well as
urban areas.{figures from reliable sources}

Some vital statistics regarding the automobile market in India has been mentioned
below:
• Two wheelers - 2nd largest in the world
• Commercial Vehicle - 4th largest in the world
• Passenger car- 11th largest in the world
The Indian automobile market consists of a wide variety of vehicles such as light,
medium, and heavy commercial vehicles, cars, scooters, mopeds, motor cycles, 3
wheelers, and multi-utility vehicles such as jeeps and small trucks.

The modern automobile market in India has been considering key issues in the process
of growth:
• Customer care, and not just 'service'
• Domestic as well as multinational investments
• Searing through cut-throat competition
• Road safety
• Anti-pollution norms
• Coordination with the government to enable advancement
• Used vehicle trade
The future of Indian Automobile market is bright as it looks forward to manufacturing
and implementing new innovations such as electric cars as provided by Reva,CNG
technology is used in new upcoming models of maruti and Honda has launched their
new hybrid car in the Indian market. alternate fuels like CNG and LPG, and probably
customized Internet automobile orders.

Segmentation of automobile industry

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Among the two-wheeler segment, motorcycles have major share in the market. Hero
Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in
scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of
the market share. Among the passenger transport, Bajaj is the leader by making 68% of
the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in
passenger cars and is a complete monopoly in multipurpose vehicles. In utility vehicles
Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share.
Tata Motors is also the world's fifth largest medium & heavy commercial vehicle
manufacturer.

E-BUSINESS OF AUTOMOTIVE INDUSTRY

The online vehicle market in India has been providing excellent services to online
vehicle sellers as well online vehicle buyers. The advantage of online vehicle buying is
that one can get an exhaustive list of cars and bikes and even make a purchase without
having to leave the comforts of one's house. Many websites like autoindia.com,
ebay.ca.in are there to promote online business of auto industry.

Sellers can make their vehicles available instantly through the Internet to millions of
buyers at the domestic level. Online vehicle selling sites advertise in daily newspapers
and magazines ensuring buyer as well as seller attention benefitting both.

Online Vehicle Market in India provides valuable information on vehicle overviews,

dealers, financing institutions, insurance companies, and also product comparisons. All
information is with regard to the region of the online vehicle purchaser. many customer
services are offered online. The online Indian automobile market is part of the growing
automobile industry in India.

The Online Vehicles market in India provides full security to its buyers and sellers.
Some of the security measures have been mentioned below:

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 • Good online companies do not keep a record of the transactions made nor are
they involved in the transacting process.
• No trustee or financial department services offered by the websites.
• Discouraging the practice of advance payment. Thus, avoiding the possibility of
fraud.
• Reliable websites like Cartradeindia.com, ebay.ca.in make sure that that their
customers are not victims of manipulated electronic paper work.
All these services are offered free for the customers and hence they facilitate the growth
of the online vehicles market in India. Some of the companies that offer their services in
this area are Cartradeindia.com, IndiaAutoMall.com, CarWale.com, AutoIndia.com,
Autotrader.com, eeautomaid.com, atozsupermarket.com, and IndiaAutimobile.com.

Online Vehicle Market in India has thus made vehicle purchase potentially easier for the
modern Indian automobile enthusiast and comes equipped with unparalleled market
research and valuable utility tools that make vehicle-buying a lot less complicated a
procedure than it used to be.

ENVIORNMENTAL ANALYSIS OF AUTOMOTIVE INDUSTRY

POLITICAL FACTORS

ARAI provides technical expertise in R&D, testing, certification, homologation and

framing of vehicle regulations. ARAI is a co-operative industrial research association
established by the automotive industry with the Ministry of Industries, Government of
India. It works in harmony and complete confidence with its members, customers and
the Government of India to offer the finest services, which earned for itself ISO 9001,
ISO 14001, OHSAS 18001 and NABL accreditations. ARAI is well-equipped with state-
of-the-art infra-structural facilities and highly qualified manpower.
The Indian Auto Industry is harmonizing both Safety & Emission regulations with
International Standards for sustained growth of the Industry for combating the
environment and become a global export hub.
India has a well established and Regulatory Framework under the Ministry of Shipping,
Road Transport and Highways in which SIAM (SOCIETY OF INDIAN AUTOMOBILE
MANUFACTURERS) plays a very important role. All the stake holders are part of the

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regulation formulation setup. The ministry issues the notifications under the Central
Motor Vehicle Rules and Motor Vehicles Act.
The Safety Regulations are being aligned with the ECE regulation and the Road Map
prepared by SIAM (SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS)
envisages alignment by 2010.
The In use Vehicle Emission norms have been tightened with effect from 1st October
2004 and computerization model has been developed by SIAM(SOCIETY OF INDIAN
AUTOMOBILE MANUFACTURERS, which is already in place in the Major Metro Cities
and would be extended throughout the country in a phased manner.

ECONOMICAL FACTORS

➢ India’s huge geographic spread- Mass transport system.

There is a very large transportation system in India for the public which helps the
economy to the large scale.

➢ Increasing road development

The new development of road system is contributing a lot towards the transportation
system of the country. Better and wide roads and the material used to build the roads is
very long lasting and environment friendly. With the better material used the life of the
roads is increased which is helping the economy of the country as less expenses will
occur.

➢ Higher GDP growth

With the better transportation system the material is moved to different places in short
time and easily which helps in increase of the GDP as more products can be made in
same time.

➢ Increasing Per Capita income

The per capita income of India is increasing due to which the buying power of the
consumers has also increased making people buy cars and bikes.

➢ Cheaper (decline interest rates) and easier finance scheme

The banking system in India is in a good shape. It provides people with easier and
cheaper finance schemes which help the consumers to buy vehicles easily. This helps
in the increase in sales of the automobile industry which also helps in the th increase of
country’s economy.

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 TECHNICAL FACTORS

➢ India is harmonizing its Emission Norms for Four Wheelers with the European
Regulation and has adopted Euro III, equivalent norms in 11 Metropolitan
Cities from Apr 1 2005. For Two Wheelers, which constitutes 70% of the
vehicle population unique Indian emission norms, which are one of the tightest
in the world have been adopted.
➢ The Fuel Quality plays a very important role in meeting the stringent emission
regulation. The fuel specifications of Gasoline and Diesel have been aligned
with the Corresponding European Fuel Specifications for meeting the Euro II,
Euro III and Euro IV emission norms.
➢ The use of alternative fuels has been promoted in India both for energy
security and emission reduction Delhi and Mumbai have more than 100,000
commercial vehicles running on CNG fuel. Delhi has the largest number of
CNG commercial vehicles running anywhere in the World. India is planning to
introduce Biodiesel; Ethanol Gasoline blends in a phased manner and has
drawn up a road map for the same.
➢ The Indian auto Industry is working with the authorities to facilitate for
introduction of the alternative fuels. India has also setup a task force for
preparing the Hydrogen road map. The use of LPG has also been introduced
as an auto fuel and the oil industry has drawn up plans for setting up of Auto
LPG dispensing station in major cities.
➢ The latest technology is being adopted by the companies and is being
launched in India as well. One of the latest technologies is the Hybrid Engines
which are launched by Honda motors in India.
➢ A lot of new safety measures are now taken into consideration before the car
or any other motor vehicle is launched to ensure its safety and reliability.

SOCIAL FACTORS

➢ The Automotive Research Association of India ( ARAI ) has been playing a

crucial role in assuring safe, less polluting and more efficient vehicles. Reducing
pollution helps creating a better and healthy environment for the society.

➢ 85% of the cars in India are financed. The banks are giving finance options easily
helping the people who cannot afford to buy themselves. Low interest rates
translating to low financing and acquisition costs hence greater affordability.
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 ➢ The new technology of Hybrid engines launched in India (Honda CIVIC) is very
much safe and helps the environment making it better for the social community.
This technology is coming worldwide and is also available in Canada now.

➢ New measures are being taken to make the automobiles less polluting. This well
help in reducing the exploitation of atmosphere. Better atmosphere gives better
life.

COMPETITIEVE FACTORS OF AUTOMOBILE INDUSTRY OF INDIA

The automotive sector is one of India’s largest and fastest growing manufacturing
sectors. It is ranked the 11th largest passenger car producer in the world. In the
category of motorcycles and scooters, India is ranked 1st and 2nd respectively. With
India increasingly liberalizing its market place, many new joint ventures evolved,
resulting in close to 24 global auto manufacturers setting up their shop in India.

Competition in India
As a result, competition in India’s automobile had been heating up in the recent years.
Many global players in the automobile have already set up presence in India. Most of
them are through tie-ups with dominant local players, while some are done entirely on
their own.

In the absence of strong competition in the past, the local car manufacturer Maruti
Udyog Ltd (MUL) has virtually dominated the Indian automotive market in the passenger
segments since the 1980s. As the automotive manufacturing sector rapidly evolved
through the dynamics of open market and deregulation, many new joint ventures (both
technical and financial) were formed between local players with leading global
manufacturers. In 1982, MUL, then a wholly government-owned company, signed up a
collaboration agreement with Suzuki of Japan to establish the volume production of
contemporary models. Subsequently, the licensing regime was scrapped in 1993 paving
way for 17 new ventures, of which 16 are now manufacturing cars

since then; there has also been an emergence of new competition for higher value
segments of the passenger car market. Hence, local players like MUL also began to
face competition from new foreign car makers. Ford entered the mid-range market with
the Ikon model in April 1998, a move which was followed by Honda, Mitsubishi,
Hyundai, and Daewoo. Other players, Hyundai and Daewoo, have since improved their
share of the passenger car market with new models

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For the 4-wheelers segment, MUL/Suzuki dominates the automotive landscape holding
a 33% share of the passenger car market in 2004/05. In the second place is Tata
Motors, a local company, commanding 26% share, while Hyundai Motor ranked third
with 15% share and the rest split amongst close to 2 dozen other manufacturers.

For the 2-wheelers segment, it remains quite a local dominant game but global players
also have obvious presence in the market. Major players in this segment include Bajaj
Auto, TVS Suzuki, LML Limited, Hero-Honda Motors, Yamaha Motor India, Kinetic
Engineering, Maharashtra Scooters Majestic Auto, Kinetic-Honda Motors, Royal Enfield
(India), Scooters (India), Greaves Ltd. Foreign manufacturers also have presence in
India through their 100% owned subsidiaries, e.g. Honda Motorcycle, Scooter India Pvt.
Ltd. M/s Honda Motor Co., Japan, Yamaha Motor, Japan. The largest player is Hero
Honda Motors, accounting for 40% of market share, followed by Bajaj Auto and TVS
Motor, which account for 27% and 18% respectively.

Competition in the International Market

Besides on the competition observed amongst all global players in the domestic Indian
market, India as an automotive manufacturing country is also pitting against other
competitors in the international market. In terms of exports of automobile, India is
ranked 29th, while China, the other huge automotive factory ranked 17th. For exports of
auto parts, India was 26th, while China came in 11th. The top country for exports of
automobile and auto parts was Germany.

Internal scan
PRODUCT- Tata Nano

The Tata Nano is BS-III* compliant and comes with an all-new 2-cylinder aluminum
MPFI 624 cc petrol engine mated to a four-speed gear box and will be available in three
variants. The Tata Nano is currently being manufactured at the company’s Pantnagar
plant in Uttarakhand in limited numbers. The new dedicated plant, at Sanand in Gujarat,
will be ready in 2010 with an annualized capacity of 350,000 cars

THE THREE VARIANTS

The Tata Nano offers an incredibly spacious passenger compartment which can
comfortably seat four adults. With a length of just 3.1 meters, width of 1.5 meters and
height of 1.6 meters, the Tata Nano has the smallest exterior footprint for a car in India
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but is 21% more spacious than the smallest car available today. A high seating position
makes ingress and egress easy. Its small size coupled with a turning radius of just 4
meters, makes it extremely maneuverable in the smallest of parking slots.

The three trim levels and their key features available at launch are:

Tata Nano Standard (BSII* and BSIII*): The standard version, in three color options,
single-tone seats, and fold-down rear seat;

Tata Nano CX (BSII* and BSIII*): In five color options, with heating and air-conditioning
(HVAC), two-tone seats, parcel shelf, booster-assisted brakes, fold-down rear seat with
nap rest;

Tata Nano LX (BSIII*): With the features of CX plus complete fabric seats, central
locking, front power windows, body colored exteriors in three premium colors, fog
lamps, electronic trip meter, cup holder in front console, mobile charger point, and rear
spoiler. Many of these features are not available on current entry-level small cars in the
country.

PERFORMANCE & SPECIFICATIONS

Performance: The 2-cylinder engine – delivering 35 PS @ 5250 rpm and a torque of 48

Nm @ 3000 rpm – enables the car to have a top speed of 105kmph and negotiate
inclines with a grade ability of 30%.

Fuel efficiency: 23.6 km/liter certified by the Automotive Research Association of India
(ARAI) under mandated test conditions, which is the highest for any petrol car in India.

Emission: The high fuel efficiency, coupled with a low kern weight of 600 kg, ensures
that the Tata Nano – at 101 gm / km – has the lowest CO2 emission amongst cars in
India. The Tata Nano is BS-III* compliant and is BS-IV* ready. It is also available in BS-
II* norms.

Safety: The Tata Nano’s safety performance exceeds current regulatory requirements –
it passes the roll-over test and offset impact, which are not regulated in India. It has an
all sheet-metal body, reinforced passenger compartment, crumple zones, intrusion-
resistant doors, besides mandatory seat belts and complies fully with existing Indian
safety standards. Tubeless tyres – among which the rear ones are wider endowing extra
stability – enhance safety.

Warranty: 18 months or 24,000 km, whichever is earlier

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 NANO FAST FACTS
➢ Designed with a family in mind, the Nano has a roomy passenger compartment
with generous leg space and head room.

➢ Can comfortably seat four persons. Four doors with high seating position make
ingress and egress easy.

➢ With a length of 3.1 meters, width of 1.5 meters and height of 1.6 meters, with
adequate ground clearance, it can effortlessly maneuvers on busy roads in cities
as well as in rural areas.

➢ Its mono-volume design, with wheels at the corners and the power train at the
rear, enables it to uniquely combine both space and maneuverability, which will
set a new benchmark among small cars.

➢ The Nano has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc, 33 PS,
multi point fuel injection petrol engine. This is the first time that a two-cylinder
gasoline engine is being used in a car with single balancer shaft.

➢ The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency.

➢ Performance is controlled by a specially designed electronic engine management

system.

➢ The Nano’s safety performance exceeds current regulatory requirements. With

an all sheet-metal body, it has a strong passenger compartment, with safety
features such as crumple zones, intrusion-resistant doors, seat belts, strong
seats and anchorages, and the rear tailgate glass bonded to the body.

➢ Tubeless tires further enhance safety.

➢ The Nano’s tailpipe emission performance exceeds regulatory requirements. In

terms of overall pollutants, it has a lower pollution level than two-wheelers being
manufactured in India today.

➢ The high fuel efficiency also ensures that the car has low carbon dioxide
emissions, thereby providing the twin benefits of an affordable transportation
solution with a low carbon footprint.

TATA NANO is offering many services such as

PREFERRED FINANCIERS
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Tata Motors has entered into agreements with 15 preferred banks/NBFCs for the Tata
Nano booking loan product. The preferred financial institutions are: State Bank of India,
Tata Motor Finance, State Bank of Patiala, ICICI Bank, State Bank of Travancore, State
Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State
Bank of Indore, Axis Bank, Punjab National Bank, Federal Bank, Corporation Bank,
Indian Bank, and the Central Bank of India. The updated list and details are available at
www.tatanano.com .

MERCHANDISE AND ACCESSORIES

The Tata Nano comes with an attractive range of accessories and merchandise. The
range of merchandise includes a Nano phone, Nano watch, T-Shirts, etc. and will be
made available online at www.tatanano.com as well at all Tata Motors Passenger Car
dealerships, Westside & Croma outlets. Tata Indicom will also market the Nano phone
and Titan the Nano watch.

Accessories include alloy wheels, body kits, decals etc., to customize the Tata Nano to
individual tastes. Details are available at www.tatanano.com .

Price
Tata initially targeted the vehicle as "the least expensive production car in the world" —
aiming for a starting price of 1,00,000 rupees or approximately US$2500

As of August 2008, material costs had risen from 13% to 23% over the car’s
development and Tata faced the choice of:

• introducing the car with an artificially low price through government subsidies and
tax-breaks]
• forgoing profit on the car
• using vertical-integration to artificially boost profits on cars at the expense of their
materials industries
• partially using inexpensive polymers or biodegradable plastics instead of a full
metal-body
• raising the price of the car
Model versions
At its launch the Nano was available in three trim level

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 • the basic Tata Nano Std priced at $2500 Rupees has no extras;
• the deluxe Tata Nano CX at $3400 Rupees has air conditioning;
• the deluxe Tata Nano TX at $3500 Rupees has air conditioning, Yellow Color Taxi
Version;
• the luxury Tata Nano LX at $4500 Rupees has air conditioning, power windows
and central locking
• the Nano Europa, European version of TATA NANO has all of the above plus a
larger body, bigger 3-cylinder engine, anti-lock braking system (ABS) and meets
European crash standards and emission norms

TATA has set its initial production target at 250,000 units per year, The new dedicated
plant, at Sanand in Gujarat, will be ready in 2010 with an annualized capacity of
350,000 cars, but it is an issue that in country like India with poor infrastructure is it
possible for nano to survive in the crowdie areas as its most populated and to get on a
narrow roads
weeks, this way they will be getting around 18 million dollars helping them covering their
cost and

PLACE

TATA NANO is launched in India recently, itslaunch was a tremendous success in india.
it was made in the singur, gujrat.it is the place in the northern part of India. Nano has
started booking and it will be available throughout the india in company’s owned and
maintained showrooms

PROMOTION

TATA NANO is promoted mostly in leading newspapers in india. also they are
advertising in magazines as well. when nano was first out locked in india, they advertise
on the first full page of newspaper just to raise and turn the people face turn around
towards their product. also they are advertising on hoardings on most viewable sites
around the cities in whole country mainly in the places like bus stands, railway stations,
main mall.

Also when someone made the online booking, they are giving merchandise to them
such as t-shirts, watches and phones.

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In internet sector, they are promoting it through social websites by forming communities
and groups on facebook, orkut and other social networking websites. They are also
conducting online contests in which they excite the people to participate in it and upon
winning they can drive away a nano.
TATA NANO has recently sponsored a reality show in india.nano was the key sponsor
for the program.

TATA NANO is also co-partner in the cricket series with new Zealand. They gave tata
nano to each man of the match in a tournament. Cricket is a famous sport in india ,and
they did well by promoting the nano through this sport.

NANO has started a new campaign in their show room. They are marketing nano in
such a way that they are convincing people to test drive a nano and fill a simple form
after the ride, and that form will go in a luck draw and if they won they can own a tata
nano.
MARKETING PLAN FOR TATA NANO

BUSINESS OVERVIEW AND EXECUTIVE SUMMARY

Established in 1945, Tata Motors is now one of the leading automakers in India. From
2001- 2006, Tata Motors flourished more and was listed in the list of top ten wealth
creators in India. About five years ago, Ratan Tata,chairman of the tata group and tata
motors first declared to introduce a car with a price level of Rs. 100,000. From then on,
the one lakh car was one of the most talking points in India’s auto market.

The introduction of the Nano received media attention due to its targeted low price. The
Financial Times reported: "If ever there were a symbol of India’s ambitions to become a
modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A
triumph of homegrown engineering, the $2,200 Nano encapsulates the dream of
millions of Indians groping for a shot at urban prosperity." The car is expected to boost
the Indian economy, create entrepreneurial-opportunities across India, as well as
expand the Indian car market by 65% [20]. The car was envisioned by Ratan Tata, who
has described it as an eco-friendly "people's car". Nano has been greatly appreciated by
many sources and the media for its low-cost and eco-friendly initiatives which include
using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected
to mass-manufacture the Nano, particularly the electric-version, and, besides selling
them in India, to also export them worldwide.

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The Nano was originally to have been manufactured at a new factory in Singur, West
Bengal, but increasingly violent protests forced Tata to pull out October 2008. (See
Singur factory pullout below.) Currently, Tata Motors is reportedly manufacturing Nano at
its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for
Sanand Gujarat. The company will bank on existing dealer network for Nano initially.
The new Nano Plant could have a capacity of 5,00,000 units, compared to 3,00,000 for
Singur. Gujarat has also agreed to match all the incentives offered by West Bengal
government

In the whole scenario discussed, I have mentioned environmental scan of the india
automobile industry, brief company overview and discussed their products variants, also
we have discussed about the target market and competition of in the automobile
industry. we have also given the description about internet market statistics with
communication strategy. Implementation of in internet marketing plan is also figured out.

COMPANY OVERVIEW

Tata Motors is India’s largest automobile company. Established in 1945, it is also among
the world’s top five manufacturers of medium and heavy trucks and the world's second
largest medium and heavy bus manufacturer. It entered the passenger vehicles
segment in 1991 and now ranks second in India's in this market.
The company, formerly known as Tata Engineering and Locomotive Company, began
manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with
Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous
light commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's
first indigenously manufactured passenger car, and the Nano, the world's cheapest car.
Tata Motors has over 1,400 engineers and scientists in six R&D centres in India, South
Korea, Spain and the UK. Its vehicles are exported to Europe, Africa, the Middle East,
South and Southeast Asia and South America.
Areas of business

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy
commercial vehicles.
• Passenger cars: The company launched the compact Tata Indica in 1998, the
sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata Motors
also distributes Fiat’s cars in India.
• Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in
1998.

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 • Commercial vehicles: The commercial vehicle range extends from the light two-
tonne truck to heavy dumpers and multi-axled vehicles in the above 40-tonne
segment.
• Passenger buses: The company also manufactures and sells passenger buses,
12-seaters to 60-seaters, in the light, medium and heavy segments.

Joint ventures, subsidiaries, associates

Tata Motors has joint ventures with Marcopolo, the Brazil-based maker of bus and
coach bodies, and with Fiat Auto (to build a commercial vehicle at Fiat's facilities in
Córdoba, Argentina).
Other associates include:
• Tata Daewoo Commercial Vehicle Company, a 100-per cent subsidiary of Tata
Motors in the business of heavy commercial vehicles (www.daewootruck.co.kr/).
• Tata Motors European Technical Centre is a UK-based, 100-per cent subsidiary
engaged in design engineering and development of products.
• Telco Construction Equipment Company makes construction equipment and
allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi
Construction Machinery Company, Japan (www.telcon.co.in/).
• Tata Technologies provides specialized engineering and design services,
product lifecycle management and product-centric information technology
services (www.tatatechnologies.com/).
• Tata Motors (Thailand) is a joint venture between Tata Motors (70 per cent) and
Thornberry Automotive Assembly Plant Co (30 per cent) to manufacture and
market the company’s pickup vehicles in Thailand (www.tatamotors.co.th/).
• Tata Cummins manufactures high horsepower engines used in the company’s
range of commercial vehicles (www.tatacummins.com/).
• HV Transmissions and HV Axles are 100-per cent subsidiaries that make
gearboxes and axles for heavy and medium commercial vehicles.
• TAL Manufacturing Solutions is a 100-per cent subsidiary that provides factory
automation solutions and designs and manufactures a wide range of machine
tools (www.tal.co.in/).
• Hispano Carrocera is a Spanish bus manufacturing company in which Tata More
has a 21-per cent stake (www.hispano-net.com/).
• Concorde Motors is a 100 per cent subsidiary retailing Tata Motors’ range of
passenger vehicles (www.concordemotors.com/).

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 • Tata Motors Finance is a 100 per cent subsidiary in the business of financing
customers and channel partners of Tata Motors (www.tatamotorfinance.com/).

Location

Tata Motors' plants are located at Jamshedpur (eastern India), Pune (west), and
Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a common
manufacturing facility at Ranjangaon, near Pune. The company is establishing a new
plant at Singur (eastern India

Future outlook
Tata is growing very strongly in the motor industry now. With the purchase of jaguar and
land rover TATA motors have stepped into the international market as well. Now this
brand in few years will also be giving competition in the luxury segment of car market.

With the launch of NANO which is the cheapest car in the world till today is going to be
a big sell in the Indian market which will also give the company a good growth
opportunity from the revenue generated by it.

Some of other projects in the future to be launched are

• Compressed Air Car
• Low cost low carbon vehicle
• Electric vehicles

Product and services Overview

Products

1. Passenger cars

Tata indica (Hash back)- The Tata Indica is a hatchback automobile range manufactured
by Tata Motors of India. The models are also exported to Europe, Africa and other
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countries from late 2004. It is the first passenger car vehicle from Tata Motors. Tata
Indica is also considered India's first indigenously developed passenger car.

In the UK a badge engineered version was imported by the MG Rover Group and sold
as the Rover CityRover. Other popular foreign markets include South Africa where the
Indica and the Indicab models (known as B Line) are sold.

Tata Indigo (Sedan) - In 2002, Tata introduced India's most competitive indigenous
sedan: the Indigo. Designed in-house, it is best thought of as a sedan version of the
Tata Indica, with which it shares a large number of parts. It is sometimes referred as the
working man's luxury car.

Indigo SX
In 2005, Tata Motors released the Indigo SX, an up market version of the Indigo sedan
with a leather-trimmed steering wheel and leather seats, among other features like
electrically operated outside rear view mirrors (ORVM), VCD player with LCD screens
behind headrests, apart from the standard features like power steering, power windows
and central locking. It competes with Honda City, Hyundai Accent and Maruti Suzuki
SX4 / Maruti Swift DZire.

Indigo XL
The Tata Indigo XL went on sale in January 2007. It is the long wheel base version of
the Indigo sedan. It features a 200 mm (7.9 in) stretched wheelbase and a 101 hp
engine. The Petrol model has MPFI 16 valve twin cam engine, whereas the diesel
variant features a DICOR engine.

Indigo CS
Tata launched the Tata Indigo CS at the 2008 Auto Expo in New Delhi. CS stands for
compact sedan and is the world's shortest sedan. The Indigo CS falls within the norms
which allow it to be subjected to lower excise duty which brings the cost of the car
down.

Indigo Marina
The station wagon version called the Indigo Marina (called the Indigo SW in export
markets) was unveiled at the New Delhi Auto Expo 2004.

Indigo Marina Advent

In 2004 Tata Motors unveiled the Tata Indigo Marina Advent which is a soft roader
similar to the Fiat Adventure. It is said to be a crossover vehicle exhibiting certain SUV
like characteristics

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Indigo XL
The Tata Indigo XL went on sale in January 2007. [1]. It is the long wheel base version of
the Indigo sedan. It features a 200 mm (7.9 in) stretched wheelbase and a 101 hp
engine. The Petrol model has MPFI 16 valve twin cam engine, whereas the diesel
variant features a DICOR engine.

Indigo CS
Tata launched the Tata Indigo CS at the 2008 Auto Expo in New Delhi. CS stands for
compact sedan and is the world's shortest sedan. The Indigo CS falls within the norms
which allow it to be subjected to lower excise duty which brings the cost of the car
down.

The Indigo family had a small facelift and prelaunch in September 2006

2. Utility Vehicles

Tata safari- he Tata Safari is an SUV produced by Tata Motors of India. It is the first SUV
to be designed, developed and manufactured entirely in India The Safari is said to
deliver almost the same power and torque as the Mitsubishi Pajero, but available at
60% of the Pajero's price (although this hasn't been thoroughly confirmed). It was
released in 1998 with a 1.9-litre Turbo Diesel engine.
Tata Sumo- tata Sumo is a multi-utility vehicle produced by India's Tata Motors. The
vehicle was released in 1997 and was one of the first passenger vehicles designed in
India. The Sumo received an extensive facelift in 2004 and was renamed the Sumo
Victa in face of competition from relatively modern competitors. A sports utility vehicle-
version of the automobile, named Sumo Grande, was released in 2008.

3. Passenger commercial carriers

• Buses
• Winger
• Magic

4. Commercial Trucks

• Tata novus- Tata Novus is the Tata Motors' first new offering from its
acquisition of Daewoo's truck manufacturing unit. Tata Novus is based on the
Daewoo Novus truck available in South Korea. It was launched in December
2005. Tata Motors became the first Indian manufacturer to introduce
300 horsepower (220 kW) heavy commercial vehicles.

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 Services

As Tata is going to provide this car with rupees one lakh only, so it may not give the
same service like it’s other vehicles. •But it’s post purchase services will be better than a
costlier bike. •Customers may get minimum three services from Tata in any of it’s
servicing center, all over the country. •We the future customers, can also hope for
additional services from

1. Various services provided are workshops for car and truck service and repairs.
2. They also have various spare part outlets to purchase original spare parts for
various products
3. Some other services provided by them are extended warranties. Extra hours of
work and mobile service vehicle which allows you to get your car serviced at your
door step.
4. You can also order parts online and get them delivered
5. Special accessories are available for the products

Sales – pricing and volume

Particulars Mar ' 08 Mar ' 07 Mar ' 06

Net Sales 35,413 32,067 206022
% age growth 10.4 35.8 18.27%
Net profit 2,127 2,127 15288.8
%age growth 3.4 21.5 23.6%
B/S as on. 261182.60 191640.50 163220.50
EPS (Rs.) 52.63 49.65 39.94

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 Goals and Objectives
The main goal of the company is to increase its annual sales of products which is
shown in the chart below this paragraph. Other objectives are
• Getting into the international marketing.
• To capture the maximum market share in India
• To get into the luxury car segment
• To make its service network the number one in India, which currently is maruti

Y/E March (Rs cr) FY2007 FY2008 FY2009E FY2010E

Net Sales 32,067 35,413 38,366 42,202
% chg 35.8 10.4 8.3 10.0
Net Profit 2,127 2,053 1,921 2,116
% chg 21.5 3.4 6.5 10.2
EPS (Rs) 38.3 40.0 34.3 44.9

Target market

• Executive two wheeler people – people that are working professionals but
can not afford to buy a three lakh car which is the average cost of a small car in
India

• Second hand car user – those people that can not afford to buy a new car.
Now they will be able to buy a new car cheaper then they buy a used car for.

• Auto rickshaw market – most of the Auto rickshaws also cost same as the
price of Nano. This may help the Nano to replace them as well

• Middle and lower income group people – these are the people that are
growing and are becoming a little richer which is making them afford a car.

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 Trend of automobile industry

(Number of
Automobile Domestic Sales Trends
Vehicles)
Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Passenger
509088 541491 696153 820179 882208 1076408
Cars
Utility
104253 113620 146388 176360 194502 220199
Vehicles
MPVs 61775 52087 59555 65033 66366 83091
Total
Passenger 675116 707198 902096 1061572 1143076 1379698
Vehicles
M&HCVs 89999 115711 161395 198506 207472 275600
LCVs 56672 74971 98719 119924 143569 192282
Total
Commercial 146671 190682 260114 318430 351041 467882
Vehicles
Three
200276 231529 284078 307862 359920 403909
Wheelers
Scooters 908268 825648 886295 922428 909051 940673
Motorcycles 2887194 3647493 4170445 4964753 5810599 6553664
Mopeds 408263 338985 307509 322584 332741 355870
Electrict Two
- - - - - 7341
Wheelers
Total Two
4203725 4812126 5364249 6209765 7052391 7857548
Wheelers
Grand Total 5225788 5941535 6810537 7897629 8906428 10109037

Competition

Brand Model Variant Engin CC power AC Price

e (Lakhs)

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 cylin
der

TATA NANO BASIC 2 623 35 NO 1.3

TATA INDICA XETA 4 1 65.3 YE 2.82
GLE 193 S
MARUTI 800 STANDA 3 796 37 NO 1.86
RD
MARUTI OMNI PETROL 3 796 47 NO 2.23
MARUTI ALTO STANDA 3 796 35 NO 2.26
RD
HYUNDAI SANTR GL 4 1 62 NO 2.21
O 086
CHEVROLE SPARK STANDA 4 995 63 YE 2.61
T RD S

These are the major competitors of Tata Nano. The closest one is the maruti 800. And
tata is giving them stiff competition.

Strengths against competitors

 Strong market position
 Strong revenue growth
 Research and Development
Weaknesses against competitors
 Dependent on vendors
 Overdependence on Indian market

Market share

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 Section – B

Internet marketing statistics

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 Countries of maximum visit of TataNano.com
• 84.0% India
• 3.4% United States
• 1.2% Germany
• 1.1% Saudi Arabia
• 0.8% Australia

Alexa traffic rank for tatanano.com:

Yesterday 33,443

7 day avg 30,854

1 month avg 47,737

3 month avg 112,351

3 month change
-2,096,153

Above stats show the current ranking and their past history ranking and progress of the
that a nano.com

User profile

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The main users of this site are those people that like tata motors. And moreover these
are those people that are looking for a cheap car to buy. People from other countries
also visit this site as almost everyone in the world is excited to see the cheapest car of
the world. People are curious to know about the car and its specification and features.

Communication strategy

Tata has innovate communicated with whole work about their new product called tata
nano in a effective way through
• Media
• Trade shows and auto shows
• Internet
• Mainly from word of mouth
• Pre launching the Tata nano

They have raised the curiosity all over world by just publishing that it is a 1 lakh
car and world’s cheapest car

Internet marketing program implementation

Internet Marketing is one of the most important aspects of an effective website. Internet
Marketing is the piece of the puzzle that joins your development efforts with actual
sales.

• Online buzz:-Nano has gone beyond the traditional methods of advertising and
promotion online.
• Social Media communities:-
○ Official Orkut community Members - 6,906.
○ Official Facebook Group Fans - 4,210
• Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I
began writing this post)
• No. of Blog Posts - 61,664
• TATA have a blog on the official website where they have been discussing quite
interesting topics and generally maintaining an active community.
• Advertising:- TV & other mass media will be less effective, thus too much money
will not be invested in this regard . Mainly word of mouth advertising will get more
emphasis.

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 Internet will be a major media for advertising.
• Tata motors have created a special website for tata nano car. There are several
listing in all the major car sites like autocar.com

SMS marketing – advertising through sending text message. Using the existing
database of targeted customer.

Trade shows - A trade fair (trade show or expo) is an exhibition organized so that
companies in a specific industry can showcase and demonstrate their latest products,
service such as auto expo and auto fair.

Program launch – special launching of nano was done in auto expo held in india last
year creating a hype was good medium

Conclusion
Internet marketing is the best way to approach maximum number of people or group of
peoples at the same time all around the world. Internet is the main key factor in
marketing the product. It is an inexpensive medium. This method is very popular these
days as people can get all the information sitting at their home or office rather than
visiting different places. As Tata Nano has launched recently and it’s not available in the
showrooms yet so people are dependent on the internet only to get the latest news
about the car.

Bibliography

http://business.mapsofindia.com/automobile/

http://business.mapsofindia.com/automobile/market/

http://business.mapsofindia.com/automobile/market/online-vehicle.html

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http://www.business-in-asia.com/countries/automotive_industry_india.html

http://www.siamindia.com/scripts/industrystatistics.aspx

http://www.siamindia.com/scripts/economicaffairs.aspx

http://www.siamindia.com/scripts/technicalregulations.aspx

http://www.adm.fukuoka-u.ac.jp/fu844/home2/Ronso/Shogaku/C49-
3+4/C4934_0291.pdf

http://www.ibscdc.org/Case_Studies/Strategy/Industry%20Analysis/INA0018.htm

http://www.fadaweb.com/ipc.htm

http://www.articlesbase.com/automotive-articles/competition-landscape-in-indias-
automotive-and-auto-parts-sector-229799.htm

http://www.thestar.com/Business/article/607199

http://www.torontosun.com/news/world/2009/03/23/8853001.html
http://www.tatamotors.com/products/
http://www.siamindia.com/scripts/industrystatistics.aspx
http://alexa.com/siteinfo/tatanano.com
http://en.wikipedia.org/wiki/Email_marketing
http://tatanano.inservices.tatamotors.com/tatamotors/index.php?option=com_content&t
ask=view&id=281&Itemid=207

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