INTRODUCTION

1. Introduction to the Industry

The Indian automobile sector is growing at a rate of about 16% per annum and is now going to be a
second fastest growing automobile market in the world.
In the Indian automobile industry, SUs today account for only 1! per cent of the total market unlike
western countries where it is almost "# per cent.
Small car segment which contributes to more than 6#% of the total car sales will remain a key
segment in the Indian car market. $s of %#1#, small cars made up more than two&thirds of India's
passenger car market. (urrently India is the second largest manufacturer of small car, second only to
)apan.
* India ranks 1%th in the list of the world's top 1! automakers.
* +ntry of more international players.
* (oncentrated in regions.
* ,arket si-e estimated to be of .s.%%! Thousand crores / 01! 2illion3
* (ontributes !% to the 456.
* 6roduction of four wheelers in India has increased from 7.8 lakh units in %##%& #8 to %9 lakh units
in %#11&%#1%.
* Targeted to be of 0 11! 2illion by %#16.
* +:ports increased from "1,### units in %##%&#8 to 81#,### units in %#11&1%.
1
SHARES OF INDIA IN GLOBAL AUTOOBILE INDUSTR!


2
The time has gone when people ;ust wanted to ha<e <ehicles as a means of transportation but
nowadays they are more aware about the <ehicle model, their price and <arious other features which
make them owner of a commodity which makes their neighbors feel en<y of their choice. $s India
opened its gates for the foreign companies <arious automobiles giants entered our country seeking it
as their target market. =e Indians also got a wide <ariety of cars to choose from. >yundai entered in
India with a <iew to capture the small market segment earlier captured mostly by two giant Indian
companies& Tata ,otors and ,aruti Udyog ?imited.
Tata is one of the company in which the Indians trust like anything. It has di<ersified itself in a
number of sectors gaining the trust and pro<ing its competence in e<ery such field. Tata when come
up with a small car segments it was welcomed by people in the same way as it welcomed all its
products. It had a wide choice of four wheelers to satisfy the <aried Indian choices. In the other hand
,aruti also is said to capture the pulse of Indian middle class by gi<ing them their ,aruti "##.To its
wing it added many other cars to competition to Tata motors.
@ow these two companies e<en ha<e to fight for their e:istence in this automobile sector and had to
produce in conte:t of gi<ing tough competition to the <arious foreign companies. If we think about
;ust these two companies they are also tough competitor of each other since ages. They had always
tried to gi<e their customers the products to cherish upon. There are products which are liked by the
customers in India and worldwide.
In this conte:t we are here to compare two premier models of these two auto companies, which
will gi<e us the ultimate result of what the customer genre thinks about these two companies. This
pro;ect also thus deals with a comparati<e study of these companies with respect to their own
products in the small car segment.
$s both the companies are eager to capture the small car segment of India which is mostly owned by
the middle class society of India.
India is an emerging country with huge potential. The
domestic economy is now growing at around "#1$% per annum and IndiaAs importance in global
terms is being reinforced by rapidly rising e:ports and domestic consumption. $t a time when
numbers of a slowdown and o<erheating in the Indian economy ha<e started gaining momentum, the
Indian rupee sprang a surprise by pushing the 456 figure past the trillion&dollar /1%,##,### crore3
mark. The automoti<e industry is at the center of IndiaAs new global dynamic. The domestic market
e:panding rapidly as incomes rise and consumer credit becomes more widely a<ailable.
,anufacturerAs product lines are being continually e:panded, as is the local automoti<e
manufacturing base. +:pectation are high that India can de<elop as a global hub for <ehicle
manufacturers and as an outsourcing center that offers the global automoti<e industry solution high
up the automoti<e <alue chain.
3
India eyes %! million automoti<e ;obs.
India's 456 is set to double o<er the ne:t decade
In percentage terms, the automoti<e industry's contribution should also double.
In dollar terms, the sector's contribution is set to Buadruple to some 011!bn
The automobile industry in India accounts for a business <olume of 01! billion and has the potential
to grow much faster both through Indian as well as international manufacturers who ha<e established
huge facilities in the country =ith the worldAs second largest and fastest&growing population, there is
no denying IndiaAs potential in both economic and population terms and the effect it will ha<e on the
auto industry in the years to come. The country is already off to a good start, with a well&de<eloped
components industry and a production le<el of 1 million four&wheeled <ehicles a year, plus a further
! million two& and three&wheelers.
The implications, market dri<ers and scope of a future massi<e Indian <ehicle market
are co<ered in the India Strategic ,arket 6rofile, a brand&new forecast of Indian automoti<e and
related acti<ity to %#%#. 2ased on ,a: 6emberton's uniBue relational long&term forecasting model, it
forecasts car and ( sales, demographics, materials usage, auto industry employment, and e:plains
their inter& year of healthy growth in auto industry. US based consultancy, keystone predicts that
India will become worldAs third largest automobile market by %#8#. C<erall si-e e:pected to e:ceed
%# million with compounded annual growth rate of o<er 1%%.

INTRODUCTION TO THE ORGANISATION
&. Introduction To The Or'(ni)(tion
4
&.1 Co*+(ny ,ro-i.e
TATA GROU,
Tata is a rapidly growing business group based in India with significant international operations.
.e<enues in %##9&#" are estimated at 06%.! billion /around .s%!1,!18 crore3, of which 61 per cent is
from business outside India. The 4roup employs around 8!#,### people worldwide. The Tata name
has been respected in India for 11# years for its adherence to strong <alues and business ethics. The
business operations of the Tata 4roup currently encompass se<en business sectorsD communications
and information technology, engineering, materials, ser<ices, energy, consumer products and
chemicals.
The 4roupAs %9 publicly listed enterprises ha<e a combined market capitali-ation of some 06#
billion, among the highest among Indian business houses, and a shareholder base of 8.% million. The
ma;or companies in the 4roup include Tata Steel, Tata ,otors, Tata (onsultancy Ser<ices /T(S3,
Tata 6ower, Tata (hemicals, Tata Tea, Indian >otels and Tata (ommunications. The 4roupAs ma;or
companies are beginning to be counted globally. Tata Steel became the si:th largest steel maker in
the world after it acBuired (orus. Tata ,otors is among the top fi<e commercial <ehicle
manufacturers in the world and has recently acBuired )aguar and ?and .o<er. T(S is a leading
global software company, with deli<ery centres in the US, UE, >ungary, 2ra-il, Uruguay and (hina,
besides India. Tata Tea is the second largest branded tea company in the world, through its UE&based
subsidiary Tetley. Tata (hemicals is the worldAs second largest manufacturer of soda ash. Tata
(ommunications is one of the worldAs largest wholesale <oice carriers. In tandem with the increasing
international footprint of its companies, the 4roup is also gaining international recognition. 2rand
Finance, a UE&based consultancy firm, recently <alued the Tata brand at 011.1 billion and ranked it
!9th amongst the Top 1## brands in the world. Businessweek ranked the 4roup si:th amongst the
=orldAs ,ost Inno<ati<e (ompanies. $nd the .eputation Institute, US$, recently rated it as the
=orldAs Si:th ,ost .eputed Firm.Founded by )amset;i Tata in 1"6", the Tata 4roupAs early years
were inspired by the spirit of nationalism. The 4roup pioneered se<eral industries of national
importance in IndiaD steel, power, hospitality and airlines. In more recent times, the Tata 4roupAs
pioneering spirit has been showcased by companies like Tata (onsultancy Ser<ices, IndiaAs first
software company, which pioneered the international deli<ery model, and Tata ,otors, which made
IndiaAs first indigenously de<eloped car, the Indica, in 177" and recently un<eiled the worldAs
lowest&cost car, the Tata @ano, for commercial launch by end of %##". The Tata 4roup has always
belie<ed in returning wealth to the society it ser<es.
5
Two thirds of the eBuity of Tata Sons, the Tata 4roups promoter company, is held by philanthropic
trusts which ha<e created national institutions in science and technology, medical research, social
studies and the performing arts. The trusts also pro<ide aid and assistance to @4Cs in the areas of
education, healthcare and li<elihoods. Tata companies also e:tend social welfare acti<ities to
communities around their industrial units. The combined de<elopment related e:penditure of the
Trusts and the companies amounts to around 1 per cent of the 4roupAs net profits. 4oing forward,
the 4roup is focusing on new technologies and inno<ation to dri<e its business in India and
internationally. The @ano car is one e:ample, as is the +ka supercomputer /de<eloped by another
Tata company3, which in %##" is ranked the worldAs fourth fastest. The 4roup aims to build a series
of world class, world scale businesses in select sectors. $nchored in India and wedded to its
traditional <alues and strong ethics, the 4roup is building a multinational business which will
achie<e growth through e:cellence and inno<ation, while balancing the interests of its shareholders,
its employees and wider society.
&.& CORE /ALUES OF TATA
$t the Tata 4roup our purpose is to impro<e the Buality of life of the communities we
ser<e. =e do this through leadership in sectors of national economic significance, to which the
4roup brings a uniBue set of capabilities. This reBuires us to grow aggressi<ely in focused areas of
business. Cur heritage of returning to society what we earn e<okes trust among consumers,
employees, shareholders and the community. This heritage is being continuously enriched by the
formali-ation of the high standards of beha<ior e:pected from employees and companies. The Tata
name is a uniBue asset representing leadership with trust. ?e<eraging this asset to enhance 4roup
synergy and becoming globally competiti<e is the route to sustained growth and long&term success.
FI/E CORE /ALUES
The Tata 4roup has always sought to be a <alue&dri<en organi-ation. These <alues continue to direct
the 4roupAs growth and businesses. The fi<e core Tata <alues underpinning the way we do business
areD
Inte'rity0 =e must conduct our business fairly, with honesty and transparency. +<erything we do
must stand the test of public scrutiny.
Underst(ndin'0 =e must be caring, show respect, compassion and humanity for our
6
colleagues and customers around the world, and always work for the benefit of the communities we
ser<e.
E1ce..ence0 =e must constantly stri<e to achie<e the highest possible standards in our day&today
work and in the Buality of the goods and ser<ices we pro<ide.
Unity0 =e must work cohesi<ely with our colleagues across the 4roup and with our
customers and partners around the world, building strong relationships based on tolerance,
understanding and mutual cooperation.
Res+onsi2i.ity0 =e must continue to be responsible, sensiti<e to the countries,
communities and en<ironments in which we work, always ensuring that what comes from the people
goes back to the people many times o<er.
&.3 TATA Grou+ Co*+(nies
F(*i.y +ride
The T$T$ family of enterprises comprises 7" companies in se<en business sectors. This section lists
all these companies under the sectors in which they operate, besides the two promoter companies of
the 4roup.
The Se4en Business Sectors (re0
ENGINEERING 5AUTOOTI/E60
T(t( Auto co*+ syste*s0
SubsidiariesG$ssociatesG)oint enturesD International $utomoti<e, Enorr 2remse Systems for
commercial ehicles, Tata $uto (omp 4H 2atteries, T$(C +ngineering, T$(C Faurecia 5esign
(entre, T$(C >endrickson Suspension Systems, T$(C Interiors and 6lastics 5i<ision, Taco
Eunstofftechnik, T$(C ,obi$pps Telemaics, T$(C Supply (hain ,anagement, T$(C Tooling,
T$(C isteon +ngineering (enter, Tata Ficosa $utomoti<e Systems, Tata )ohnson (ontrols
$utomoti<e, Tata Toyo .adiator, Tata Ha-aki $uto (omp, T( Springs, Technical Stampings
$utomoti<e.
T(t( otors0
Subsidiaries G$ssociatesG )oint enturesD (oncorde ,otors, > $:els, > Transmissions, @ita
(ompany, T$? ,anufacturing Solutions, Tata (ummins, Tata
5aewoo (ommercial ehicles (ompany, Tata +ngineering Ser<ices, Tata 6recision
7
Industries, Tata Technologies, Telco construction +Buipment.
En'ineerin' Ser4ices
Tata 6ro;ects, T(+ (onsulting +ngineers, oltas
En'ineerin' ,roducts
T$? ,anufacturing Solutions, Telco (onstruction +Buipment (ompany, T.F
ETALS0
TATA Stee.
Subsidiaries /Associates/ Joint Ventures: >ooghly ,et (oke and 6ower (ompany,
)amshedpur In;ection 6owder /)amipol3, )amshedpur Utility and Ser<ice (ompany
?imited /)US(C3, ?anka Special Steel, ,;unction Ser<es, @atSteel, Sila +astern (ompany, Tata
2lue Scope Steel, Tata ,etallic, Tata 6igments, Tata .efractories, Tata
.yerson, Tata Sponge Iron, Tata steel /Thailand3, Tata Steel EI@, Tayo .olls, The
5hamra 6ort (ompany, The Indian Steel and =ire 6roducts, The Tinplate (ompany of
India, Tm International ?ogistics, T.F.
ENERG!0
,o7er
Tata 26 Solar India
Tata 6ower
Cil J 4as
Tata 6etrodyne
CHEICALS0
.allis India
Tata 6igments
Tata 6igments
6harma
$d<inus Therapeutics
8
SER/ICES0
HOTELS AND REALT!
Indian >otels /Ta; 4roup3 Subsidiaries G$ssociatesG )oint enturesD Ta; $ir, .oots (orporation
/4inger >otels3
THDC
Tata .ealty and Infrastructure
FINANCIAL SER/ICES
Tata $I4 4eneral Insurance, Tata $I4 ?ife Insurance, Tata $sset ,anagement, Tata (apital, Tata
Financial Ser<ices, Tata In<estment (orporation

OTHER SER/ICES
Tata Kuality ,anagement Ser<ices, Tata Ser<ices, Tata Strategic ,anagement 4roup
CONSUER ,RODUCTS0
Infiniti .etail
Tata Tea Subsidiaries /Associates/ Joint Ventures: Tata (offee, Tata Tetley, Tata Tea
Inc
Tata (eramics
Tata ,c4raw >ill 6ublishing (ompany
Titan Industries
Trent
INFORATION S!STES AND COUNICATIONS0
Ne.ito Syste*s
T(t( Consu.t(ncy Ser4ices.
T(t( E.1si
Ser8i)So.
T(t( Inter(cti4e Syste*s
T(t( Techno.o'ies
COUNICATIONS
T(t( S9y
9
T(t( Te.eser4ices
Subsidiaries /Associates/ Joint Ventures: Tata Teleser<ices
/,aharashtra3
T(t( Co**unic(tion
T(t( Net
INDUSTRIAL AUTOATION
Ne.co

TATA OTORS LIITED
The largest passenger automobile and commercial <ehicle manufacturing company of India Tata
,otors ?imited, was formerly called T+?(C /T$T$ +ngineering and ?ocomoti<e (ompany3, has
its headBuarters in 2ombay, now ,umbai, India. +std in 171!, listed on the @ew Hork Stock
+:change in %##1 has created .s. 8%# billion wealth and was one of the top 1# wealth creators in
India, =ith manufacturing facilities in the towns of )amshedpur, ?ucknow, and 6une. This company
was founded by )amshet;i Tata and is run by .atan Tata under the flagship company known as Tata
and sons group. >e commands %%### employees working in three plants as well as other regional
and -onal offices across the length and breadth of India.
Tata motorAs passenger cars still need to reach acceptable international
reBuirements. The company commands an imposing 6!% share of the domestic commercial <ehicle
market and is trying to moderni-e this segment. The financial business of Tata motors was separated
into a subsidiary company in sep. %##6, where it recorded a strong financial performance during the
last ! year period. From year %##8&%##9, the profits of the company went up at a ($4. of 86.1%, to
attain .s. 881, !%! million in %##9 from .s. 7!, 981 ,illion in %##8. 2y floating two rights issues at
the end of Sep %##" Tata ,otors ?td e:pected to raise .s 1, 1!# crores. They are offering one
ordinary share <alued at .s. 81# e<ery si: shares e:pecting to net .s. %.7# (rores, the so called L$M
share would ha<e different <oting and di<idend rights, for e<ery such 6 shares held at a face <alue of
8#! would raise .s. 1.76# (rores, these proceed would be utili-ed for an early repayment of the
short term funding of %.8 2illion 0 /.s. 1#,1"7 (rores3 2orrowed for $cBuisition of ;aguar and ?and
.o<er from their principle LThe Ford ,otor (ompanyAsM. It is also in talks with pri<ate eBuity funds
to offload %!% of stake in each of the following 6 unlisted group units, they are Tata 5aewoo
commercial <ehicle company, > transmissions, Tata motors finance, Tata technologies and
T+?(C construction eBuipment, the sales of the stakes would possible conclude by )une %##7,
helping it to raise further funds for this acBuisition, earlier in )uly it sold %1% stake in an $uto
component unit to a group firm and booked a profit of .s. 11# crores, it also sold 1# million shares
10
or 1.86% of Tata steel for .s 1"6 crores to Tata Sons, the holding company of whole Tata group
firms.
NThe (ompany aims to moneti-e a part of its funds through a phased di<estment of
certain in<estments preferably as inter&group sales where<er possible at current market prices in the
coming si: to eight months,N the money that will be released from these in<estments will become a
part of the capital to be lifted for repayment of the bridging loan taken for the )aguar& ?and .o<er
acBuisition. Taken in ,arch %##"N /Tata ,otors 6rofile3
It took a 1! month bridge loan of 8 billion in ,arch from a consortium of banks to
finance the )?. accusation and its e:pansion plans Since the rights issue was announced on %"th may
its share <alue has fallen more than 8#% and fell by 1."%% to .s. 1%7."! on 2S+, e<en though the
bench mark inde: gained 8."% to end at 1!, #17."6 points. The $nalysts say that, this is a strategic
mo<e taken by Tata ,otors because it is allowing the company to make a lot of profit e<en when the
market is in the financial pressure allows Tata sons to raise its wager in group companies. If the
company will follow the abo<e mentioned trends then possibly it can raise its finances in a low
liBuidity and high interest rate set&up.
INDUSTR! OUTLOO:
The Indian $utomobile Industry en;oys the ad<antage of low cost base, high skilled
labour, strong ancillary network coupled with 4o<ernmentAs support by way of concessional e:cise
duty of 16% for small cars, ban on o<erloading and also significant in<estments proposed for
remo<ing infrastructure bottlenecks. The ( industry is directly related to the economic growth and
de<elopment. The growth in demand for (s is directly related to the II6 inde: and any upsurge in
economic acti<ities will call for more cargo mo<ement in the economy.
The domestic ( market grew at a ($4. of %6.9% during the last 6 years. In FH#7, the (
segment registered a growth of 8%.%% due to Supreme (ourtAs ban on o<er loading trucks. >owe<er,
we belie<e that this is a one&time demand and the ( segment may not witness such kind of growth
repeatedly. There is a regulation that restricts the mo<ement of <ehicles abo<e certain age /1! years
in @ational (apital .egion and " years in ,umbai3. Though the rule is not being followed strictly at
present, in future if this rule is implemented strictly it will result in huge replacement demand.
=ith the Indian economy e:pected to grow at ".!% to 7% in coming years, we e:pect
the demand for (s to be fairly decent e:cept for the fact that the industry is currently e:periencing
a correction due to sharp spurt in demand in the pre<ious years.
11
The ( industry witnessed a change in demand dynamics in last few years. The demand
for ?(s in the OP8.! tonnes segment is rising at the cost of demand in ! to 9.! tonnes category,
while demand in 9.! to 1% tonnes segment and 16.% to %! tonnes segment is booming at the cost of
demand in 1% to 16.% tonnes segment. 5emand for trailers of Q8!.% tonnes is witnessing a surge
while demand for semi&trailers in %6.1 to 8!.% tonnes segment is suffering. This structural shift in
demand dynamics is due to the e<olution of >ub J Spoke model of distribution, which is now
adopted by transportation players because of impro<ed road infrastructure and also the ban on trucks
in many cities by the authorities to tackle the traffic congestion issues. $ccording to the >ub J
Spoke model, >(s plying o<er the highways to transport goods to different states and districts,
while ,(s are used in distributing goods to different cities and the last leg of distribution in intra
city is done by using OP8.! tonner <ehicles.
History o- TATA otors
1.T(t( otors .(unches its -irst truc9 in co..(2or(tion 7ith ercedes#Ben).
Tata ,otors is a part of the Tata and Sons 4roup, founded by )amshed;i @ussarwan;i Tata and ).
2aker. The company was established in 171! as a locomoti<e manufacturing unit and later e:panded
its operations to commercial <ehicle sector in 17!1 after forming a ;oint <enture with 5aimler&2en-
$4 of 4ermany.
2. TATA Indic(
The first generation Tata Indica $fter years of dominating the commercial <ehicle market in India,
Tata ,otors entered the passenger <ehicle market in 1771 by launching the Tata Sierra, a multi
utility <ehicle. $fter the launch of three more <ehicles, Tata +state /177%, a stationwagon design
based on the earlier 'Tata,obile' /17"73, a light commercial <ehicle3, Tata Sumo /?(, 17713 and
Tata Safari /177", India's first sports utility <ehicle3. Tata launched the Indica in 177", the first fully
indigenous passenger car of India. Though the car was initially panned by auto&analysts, the car's
e:cellent fuel economy, powerful engine and aggressi<e marketing strategy made it one of the best
selling cars in the history of the Indian automobile industry. $ newer <ersion of the car, named
Indica %, was a ma;or impro<ement o<er the pre<ious <ersion and Buickly became a mass&
fa<ourite. $ badge engineered <ersion of the car was sold in the United Eingdom as the .o<er
(ity.o<er. Tata ,otors also successfully e:ported large Buantities of the car to South $frica.The
success of Indica in many ways marked the rise of Tata ,otors.
3. TATA Br(ds
DAE8OO AC;UISITION
Tata @o<us is one of the best selling commercial trucks in South Eorea.
12
=ith the success of Tata Indica, Tata ,otors aimed to increase its presence worldwide. In %##1, it
acBuired the 5aewoo (ommercial ehicle (ompany of South Eorea. The reasons behind the
acBuisition wereD (ompanyAs global plans to reduce domestic e:posure. The domestic commercial
<ehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata
,otors has a high domestic e:posure of R71% in the ,>( segment and R"1% in the light
commercial <ehicle /?(3 segment. Since the domestic commercial <ehicle sales of the company
are at the mercy of the structural economic factors, it is increasingly looking at the international
markets. The company plans to di<ersify into <arious markets across the world in both ,>( as
well as ?( segments. To e:pand the product portfolio Tata ,otors recently introduced the %!,T
4= Tata @o<us from 5aewooAs /South Eorea3 /T5(3 platform. Tata plans to le<erage on the
strong presence of T5( in the hea<y&tonnage range and introduce products in India at an
appropriate time. This was mainly to cater to the international market and also to cater to the
domestic market where a ma;or impro<ement in the .oad infrastructure was done through the
@ational >ighway 5e<elopment 6ro;ect Tata remains India's largest hea<y commercial <ehicle
manufacturer and Tata 5aewoo is the %nd largest hea<y commercial <ehicle manufacturer in South
Eorea. Tata ,otors has ;ointly worked with Tata 5aewoo to de<elop trucks such as @o<us and
=orld Truck and buses namely, 4lo2us and Star2us.
HIS,ANO CARROCERA
>ispano 5i<o at the %##" FI$$ in ,adrid in %##!, sensing the huge opportunity in the fully built bus
segment, Tata ,otors became acBuired %1% stake in >ispano (arrocera S$, $ragonese bus
manufacturing company gi<ing it controlling rights of the company.
<AGUAR CARS AND LAND RO/ER
$fter the acBuisition of 2ritish )aguar ?and .o<er /)?.3 business, which also includes the .o<er,
5aimler and ?anchester brand names Tata ,otors became a ma;or player in the international
automobile market. )aguar SF ?and .o<er's .ange .o<er Cn %9 ,arch %##", Tata ,otors reached
an agreement with Ford to purchase their )aguar and ?and .o<er operations for US0% billion. The
sale was completed on % )une %##" Tata has gained the rights to the 5aimler, ?anchester, and .o<er
brand names. In addition to the brands, Tata ,otors has also gained access to % design centers and 8
plants in UE. The key acBuisition would be of the intellectual property rights related to the
technologies.
13
<OINT /ENTURES
Tata ,arco6olo released this low&floor bus in India and now it is widely used as public transport
TIn %##!, sensing the huge opportunity in the fully built bus segment, Tata ,otors acBuired %1% stake
in >ispano (arrocera S$, $ragonese bus manufacturing company
and introduced its highend inter&city buses in the country.
TTata ,otors has also formed a !1D17 ;oint <enture with ,arcopolo S.$., a 2ra-il&based global
leader, lead by 2rian 2ehrle, in bus body building. This ;oint <enture is to manufacture and assemble
fully&built buses and coaches targeted at de<eloping mass
rapid transportation systems.
TThe ;oint <enture will absorb technology and e:pertise in chassis and aggregates from
Tata ,otors, and ,arcopolo will pro<ide know&how in processes and systems for bodybuilding and
bus body design.
I,ORTANT DE/ELO,ENTS
In &$$= > $?
14
Tata $ce was India's first mini truck Tata $ce, India's first indigenously de<eloped sub&one ton mini&
truck, was launched in ,ay %##!. The mini&truck was a huge success in India with auto&analysts
claiming that $ce had changed the dynamics of the light commercial <ehicle /?(3 market in the
country by creating a new market segment termed the small commercial <ehicle /S(3 segment. $ce
rapidly emerged as the first choice for transporters and single truck owners for city and rural
transport. 2y Cctober %##!, ?( sales of Tata ,otors had grown by 86.6 percent to %",!89 units
due to the rising demand for $ce. The $ce was built with a load body produced by $utoline
Industries. 2y %##!U $utoline was producing 8## load bodies per day for Tata ,otors. $ce is still
one of the number makers for T,?, T,? sold the %,##,###th $ce in $ugust %##", within 1 years
since its introduction. Tata $ce has also been e:ported to se<eral +uropean, South $merican and
$frican countries. +lectric&<ersions of Tata $ce are sold through (hrysler's 4lobal +lectric
,otorcars di<ision.
In &$$@
In %##9, Tata ,otors launched se<eral concept models and future designs of e:isting models. It also
formed ;oint <entures with <arious local companies in se<eral countries to assemble Tata cars. Tata
,otors launched a re&designed <ersion of Tata Senon T? during ,otor Show 2ologna which would
be assembled in Thailand and $rgentina. $ pick&up <ariant of Tata Sumo was also launched under
the program '4lobal 6ick&Up'. The company plans to launch the new pick&up model in India,
Southeast $sia, +urope, South $frica, Turkey and Saudi $rabia. Tata ,otors also un<eiled newer
model of Tata Indigo and Tata +legante concept&car during the 4ene<a $uto Show. Tata ,otors also
formed a ;oint <enture with Fiat and gained access to FiatAs diesel engine technology. Tata ,otors is
looking to e:tend its relationship with Fiat and I<eco to other segments like the '4lobal 6ick&Up'
program. The launch of the '4lobal 6ick&Up' will mark the entry of the company into de<eloped
markets like +urope and the United States. The pro;ect was initially collaboration between Tata
,otors and its subsidiary Tata 5aewoo (ommercial ehicles, but later Tata ,otors decided to work
with I<eco as 5aewooAs design was not in sync with the needs of sophisticated +uropean customers.
The company has formed a ;oint <enture with ThailandAs Thonburi (ompany, an independent auto
assembler, in which Tata ,otors will hold a 9#% stake.
In &$$A
CO,RESSED AIR CAR
Tata Cne($T ,otor 5e<elopment International of ?u:embourg has de<eloped the world's first prototype of a
compressed air car, named Cne($T. In %##9, ,5I owner 4uy @egre was reported to ha<e Nthe backing of
15
TataN. It has air tanks that can be filled in 1 hours by plugging the car into a standard electrical plug.
In %##" ,5I planned to also design a gas station compressor, which would fill the tanks in 8
minutes. There are no gasoline costs and no fossil fuel emissions from the <ehicle when run in town,
but Nthe compressed air dri<ing the pistons can be boosted by a fuel burnerN. Cne($T is a fi<e seat
<ehicle with a %##&litre /9.1 cu ft3 trunk. =ith full tanks it will run at 1## kmGh /6% mph3 for 7#
kilometers /!6 mi3 range in urban cycle. It is actually a dual fuel car but it is more efficient than any
present >ybrid cars.
IN &$$" AND ON8ARDS
E.ectric 4ehic.es
Tata ,otors un<eiled the electric <ersions of passenger car Tata Indica and commercial <ehicle Tata
$ce. 2oth run on lithium batteries. The company has indicated that the electric indica would be
launched locally in India in %#1%, without disclosing the price. The <ehicle would be launched in
@orway in %#11. Tata ,otors' UE subsidiary, Tata ,otors +uropean Technical (entre, has bought a
!#.8% holding in electric <ehicle technology firm ,il;ol 4reenlandGInno<as;on of @orway for
US01.78 ,, which speciali-es in the de<elopment of inno<ati<e solutions for electric <ehicles, and
plans to launch the electric Indica hatchback in +urope ne:t year. Tata motors launched e:ecuti<e
class sedan Tata ,an-a in %#1#.Tata Indigo e&(S and Tata $ria/sports utility <ehicle3 is also
launched few months ago. Tata Indigo e&(S has an effecti<e fuel efficiency of %8kmpl.

GLOBAL O,ERATIONS
Tata ,otors has been aggressi<ely acBuiring foreign brands to increase its global presence. Tata
,otors has operations in the UE, South Eorea, Thailand and Spain. $mong them is )aguar ?and
.o<er, a business comprising the two iconic 2ritish brands that was acBuired in %##". Tata ,otors
has also acBuired from Ford the rights to three other brand namesD 5aimler, ?anchester and .o<er. In
%##1, it acBuired the 5aewoo (ommercial ehicles (ompany, South EoreaAs second largest truck
maker. The rechristened Tata 5aewoo (ommercial ehicles (ompany has launched se<eral new
products in the Eorean market, while also e:porting these products to se<eral international markets.
Today two&thirds of hea<y commercial <ehicle e:ports out of South Eorea are from Tata 5aewoo.
In %##!, Tata ,otors acBuired a %1% stake in >ispano (arrocera, a reputed Spanish bus and
coach manufacturer, gi<ing it controlling rights of the company. >ispanoAs presence is being
16
e:panded in other markets. Cn Tata's ;ourney to make an international foot print, it continued its
e:pansion through the introduction of new products into the market range of buses /Starbus J
4lobus3 as well as trucks /@o<us3. These models were ;ointly de<eloped with its subsidiaries Tata
5aewoo and >ispano (arrocera. In ,ay, %##7 Tata un<eiled the Tata =orld Truck range ;ointly
de<eloped with Tata 5aewoo. They will debut in South Eorea, South $frica, the S$$.( countries
and the ,iddle&+ast by the end of %##7. In %##6, it formed a ;oint <enture with the 2ra-il&based
,arcopolo, a global leader in body&building for buses and coaches to manufacture fully&built buses
and coaches for India and select international markets. Tata ,otors has e:panded its production and
assembly operations to se<eral other countries including South Eorea, Thailand, South $frica and
$rgentina and is planning to set up plants in Turkey, Indonesia and +astern +urope. Tata also
franchiseeG;oint <enture assembly operations in Eenya, 2angladesh, Ukraine, .ussia and Senegal.
Tata has dealerships in %6 countries across 1 continents. Though Tata is present in many counties it
has only managed to create a large consumer base in the Indian Subcontinent namely India,
2angladesh, 2hutan, Sri ?anka and @epal and has a growing consumer base in Italy, Spain and
South $frica.
The 4o<ernment of India announced an automobile policy in 5ecember 1779. The policy
reBuired ma;ority&owned subsidiaries of foreign car firms to in<est at least US0!# million in eBuity if
they wished to set up manufacturing pro;ects in India. It also forced them to take on e:port
obligations to fund their auto part imports and reBuired them to submit to a schedule for increasing
the share of locally made parts in their cars. ,ere car assembling operations were not welcomed.
$n Indian cabinet panel will soon consider a new automobile policy that aims to set fresh
in<estment guidelines for foreign firms wishing to manufacture <ehicles in the country. In<estments
in making auto parts by a foreign <ehicle maker will also be considered a part of the minimum
foreign in<estment made by it in an auto&making subsidiary in India. The mo<e is aimed at helping
India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an e:port
target of 01 billion by %##! and US0%.9 billion by %#11.
The policies adopted by 4o<ernment will increase competition in domestic market, moti<ate
many foreign commercial <ehicle manufactures to set up shops in India, whom will make India as a
production hub and e:port to nearest market. Thus Tata ,otors ( will ha<e to face tough
competition in near future, which might affect its growth negati<ely. The purchase of )aguar (ars is
e:pected to help gi<e Tata ,otors a foothold in +uropean and $merican markets. =ith the un<eiling
of Tata +legante during 4ene<a ,otor Show, Tata ,otors re<ealed its intention to enter the sedan
and sports car markets. Tata Indica assembled in Thailand and $rgentina. Tata 6rima The ?u:ury
Sedan was designed by 6ininfrina and has marked the entry of Tata into the international sedan
market. The car is to be sold in India by %#18 and around the world by %#1! Tata ,otors has
17
e:panded its production and assembly operations to se<eral other countries including South Eorea,
Thailand, South $frica and $rgentina and is planning to set up plants in Turkey, Indonesia and
+astern +urope.
FUTURE CHALLENGES
(hindr( (nd (hindr(0 ) with IT+(, @orth $merican leader in hea<y trucks. ,J, has
formed a !1D17 ) called ,ahindra International with IT+(, US$ /parent @a<istar International3, to
manufacture commercial <ehicles and to bolster its position in the ( business. IT+( is the leader in
medium and hea<y trucks and buses in @orth $merica, and is the world's largest manufacturer of
medium&duty diesel engines.
,ahindra International aims to ha<e a presence across the
( market /6&8! tonnes 4=3 with <ariants of passenger transport, cargo and specialised load
applications and has started producing mediumGhea<y commercial <ehicles from FH#7.
Force otors Ltd0 ) with AN for manufacturing high&tonnage <ehicles Force ,otors has
paired up with ,$@ in a 9#D8# ) to manufacture high&tonnage and specialty <ehicles, such as long&
haul trucks, tippers, tractor trailers and multi&a:le <ehicles in the 16&8% tonne range at its 6ithampur
plant, with an initial capacity of %1,### units per annum and at an in<estment of .s9bn. The ) plans
to sell nearly half of its production in the domestic market, while the rest is to be e:ported to the
,iddle +ast, Turkey, .ussia, $sia and $frica. Further, the two companies ha<e formed another ) to
manufacture buses in India from end&%##9.
Asho9 Ley.(nd0 $cBuisition of (-ech .epublic&based $<ia. $shok ?eyland /$??3 recently
acBuired the truck unit of (-ech .epublic&based $<ia for US08!m. $<ia manufactures 6&7 tonne
?(s and has a capacity of %#,### units per annum. The acBuisition has gi<en $?? direct access to
an entire range of $<ia trucks, $<iaAs press shop with dies and tools, welding lines, state&of&the&art
paint shop and .J5 facilities. $?? has also entered into technology agreements with >ino ,otors
of )apan and IF of 4ermany to complement its in&house .J5 efforts and de<eloping
complementary components and aggregates.
Su)u9i0 Su-uki through its subsidiary, ,aruti Su-uki in the Indian market may also be alarming.
,aruti has aggressi<ely launched family cars to undermine the Tata models.
18
ILESTONES
1"B= TTata +ngineering and ?ocomoti<e (o. ?td. was established to manufacture
locomoti<es and other engineering products.
1"BA TSteam road roller introduced in collaboration with ,arshall Sons /UE3.
1"=B T(ollaboration with 5aimler 2en- $4, =est 4ermany, for manufacture of medium commercial
<ehicles. The first <ehicle rolled out within 6 months of the contract.
1"=" V.esearch and 5e<elopment (entre set up at )amshedpur.
1"@@ VFirst commercial <ehicle manufactured in 6une.
1"A3 V,anufacture of >ea<y (ommercial ehicle commences.
1"A= VFirst hydraulic e:ca<ator produced with >itachi collaboration.
1"A? V6roduction of first light commercial <ehicle, Tata 1#9, indigenously designed,
followed by Tata 6#".
1""1 T?aunch of the 1st indigenous passenger car Tata Sierra. Cne millionth <ehicle rolled out.
1""B V?aunch of Tata Sumo & the multi utility <ehicle.
1""= T,ercedes 2en- car +%%# launched.
1""? TTata Sumo delu:e launched.
1""@ TTata Sierra Turbo launched.
1""A TTata Safari & India's first sports utility <ehicle launched.
T% millionth <ehicles rolled out.
TIndica, India's first fully indigenous passenger car launched.
&$$1 VIndica % launched & %nd generation Indica.
V1##,###th Indica wheeled out.
T?aunch of the Tata Safari +S
&$$& V%,##,###th Indica rolled out.
V?aunch of the Tata Sumo'W' Series
T?aunch of the Tata Indigo.
TTata +ngineering signed a product agreement with ,4 .o<er of the UE.
&$$3 VCn %7th )uly, ). .. 5. Tata's birth anni<ersary, Tata +ngineering becomes Tata
,otors ?imited.
T8 millionth <ehicle produced.
TFirst (ity.o<er rolled out
&$$B VTata ,otors and 5aewoo (ommercial ehicle (o. ?td. sign in<estment
agreement and completes acBuisition of 5aewoo (ommercial ehicle (ompany
19
TTata 5aewoo (ommercial ehicle (o. ?td. /T5(3 launches the hea<y duty
truck '@CUS' , in Eorea
TSumo icta launched
TIndigo ,arina launched
TTata ,otors lists on the @HS+
&$$= TTata ,otors rolls out the !##,###th 6assenger (ar from its (ar 6lant Facility in
6une
VThe Tata So<er un<eiled at the 9!th 4ene<a ,otor Show
T2randed buses and coaches & Starbus and 4lobus & launched
TTata $ce, India's first mini truck launched
TThe power packed Safari 5icor is launched
TTata ,otors launches Indica % Turbo 5iesel.
TCne millionth passenger car produced and sold
TInauguration of new factory at )amshedpur for @o<us
T?aunch of Tata @o<us
T?aunch of @o<us range of medium trucks in Eorea, by Tata 5aewoo (ommercial
ehicle (o. /T5(3
&$$? TTata ,otors <ehicle sales in India cross four million mark
VIndica % Seta launched
T6assenger ehicle sales in India cross one&million mark
TTata ,otors first plant for small car to come up in =est 2engal
TTata ,otors and Fiat 4roup announce three additional cooperation agreements
&$$@ T(onstruction of Small (ar plant at Singur, =est 2engal, begins on )anuary %1
V@ew %##9 Indica % range is launched
TTata ,otors and Thonburi $utomoti<e $ssembly 6lant (o. /Thonburi3, announce
formation of a ;oint <enture company in Thailand to manufacture, assemble and
market pickup trucks.
T.oll out of 1##,###th $ce
TTata&Fiat plant at .an;angaon inaugurated
T?aunch of a new Upgraded range of its entry le<el utility <ehicle offering, the
Tata Spacio.
T?aunch of ,agic, a comfortable, safe, four&wheeler public transportation mode,
de<eloped on the $ce platform
T?aunch of =inger, IndiaAs only ma:i&<an
TFiat 4roup and Tata ,otors announce establishment of )oint enture in India
20
T?aunch of the Sumo icta Turbo 5I, the new upgraded range of its entry&le<el
utility <ehicle, the Sumo Spacio
TTata ,otors launches Indica % Turbo with dual airbags and $2S
T?aunch of new Safari 5I(C. %.% TT range, powered by a new %.% ? 5irect
In;ection (ommon .ail /5I(C.3 engine.
T.ollout of the one millionth passenger car off the Indica platform.
&$$A T?atest common rail diesel offering& the Indica % 5I(C., launched.
TIndigo (S /(ompact Sedan3, worldAs first sub four&metre sedan, launched.
T?aunch of the new Sumo && Sumo 4rande, which combines the looks of an SU
with the comforts of a family car.
TTata ,otors un<eils its 6eople's (ar, @ano, at the ninth $uto +:po.
TSenon, 1&tonne pick&up truck, launched in Thailand.
TTata ,otors signs definiti<e agreement with Ford ,otor (ompany to purchase
)aguar and ?and .o<er.
TTata ,otors completes acBuisition of )aguar ?and .o<er.
TTata ,otors introduces new Super ,ilo range of buses.
TTata ,otors is Cfficial ehicle 6ro<ider to Houth 2aton .elay for The III
(ommonwealth Houth 4ames 6une %##".
TIndica ista X the second generation Indica, is launched.
TTata ,otors launches passenger cars and the new pick&up in 5... (ongo.
&$$"T Tata @ano is launched.
&$1$T Tata ,an-a /e:ecuti<e class sedan3,Tata Indigo e&(S and Tata $ria are launched .
ANAGEENT
Bo(rd o- Directors0
r. Cyrus ,. istry 5Ch(ir*(n6
,r. @. $. Soonawala
5r. ).). Irani
,r. ... ,ehta
,r. @usli @ =adia
,r. S. , 6alia
5r. .. $. ,ashelkar
,r. .a<i Eant
,r. 6. ,. Telang
Senior (n('e*ent
21
,r. .a<i Eant D +:ecuti<e 5irector
,r. 6. , Telang D +:ecuti<e 5irector
,r. .a;i<e 5ube D 6resident /6assenger (ars3
,r. ( .amkrishnan D (hief Financial Cfficer
,r. 6.H. 4ur< D ice 6resident /(orporate Finance& $ccounts and Ta:ation3
5r. S. ). Tambe D ice 6resident />uman .esource3
,r. Iackria Sait D ice 6resident /Technical Ser<ices3
,r. $. , ,ankad D >ead /(ar 6lant3
,r. S. 2. 2orwankar D >ead /)amshedpur 6lant3
,r. S. Erishnan D ice 6resident /(ommercial&6(2U3
,r. .a<i 6isharody D ice 6resident /Sales J ,arketing3
,r. >. E. Sethna D (ompany Secretary
A8ARDS
V 6(2U bags >anda 4olden Eey $wardY.
V Tata ,otors recei<es Uptime (hampion $ward %##9.
V $ggregates 2usiness, (2U, bags A2est Supplier $wardA from +(+?.
V Z@5T 6rofitA 2usiness ?eadership $ward.
V Tata ,otors bags @ational $ward for +:cellence in (ost ,anagementY
V Tata ,otorsA T.$EIT bags sil<er award for +:cellence in (ost ,anagementY
V Tata ,otors 6une X (2U has bagged the L4olden 6eacock @ational Kuality $ward.
V Tata ,otors was awarded four prestigious honors, at the Z(@2( T1"&$uto (arA.
V Tata ,otors chosen as IndiaAs ,ost Trusted 2rand in (arsY
V 2usiness Today selects ,r. 6.6 Eadle as IndiaAs 2est (FC in %##!Y
V 6une Foundry 5i<ision bags prestigious 4reen Foundry $wardY
V Tata ,otors is Z(ommercial ehicle ,anufacturer of the HearAY
V $(+ bags Z2est (ommercial ehicle 5esignA at the 22(&Top 4ear $wardsY
V Tata ,otors bags the prestigious Z(II X+SI, 2ank awardA for business e:cellenceY
V Z(ar ,aker of the yearA $ward for Tata ,otorsY
V Tata ,otors is Z(ommercial ehicle ,anufacturer of the yearA.
V Z(FC of the Hear $ward %##1A awarded to ,r. 6ra<een 6 Eadle, +:ecuti<e 5irector.
V Tata ,otors wins Z4olden 6eacock $wardA for (orporate Social .esponsibility.
V Tata ,otors X )amshedpur wins Z+nergy +fficient Unit $wardA.
V Tata ,otors wins the first (SI. 5iamond )ubilee Technology $ward.
V Tata ,otors )amshedpur J ?ucknow win awardsY
22
,roducts o- TATA otors
C1D ,(ssen'er c(rs (nd uti.ity 4ehic.es
T$T$
SU,C 4.$@5+
T$T$ S$F$.I
Indica ista
VTTata Sierra
VTTata +state
VTTata SumoG Spacio
VTTata Indica
VTTata Indigo
VTTata Indigo e&(S
VTTata Indigo ,arina
VTTata Indigo ,an-a
VTTata =inger
VTTata @ano
VTTata Senon ST
VTTata So<er
VTTata $ria
C&D Conce+t 4ehic.es
VT%### $ria .oadster
VT%##1 $ria (oupe
VT%##% Tata Indica
VT%##% Tata Indi<a
VT%##1 Tata Indigo $d<ent
VT%##! Tata So<er
VT%##6 Tata (liffrider
VT%##9 Tata +legante
VT%##7 Tata 6rima
C3D Co**erci(. 4ehic.es
23
T$T$ 1616 ST$.2US
T$T$ ,$.(C6C?C 2US+S
VTTata $ce
VTTata T?G Telcoline G%#9 5I 6ickup Truck
VTTata 1#9 +: and +:%
VTTata 9#7 +:
VTTata "#7 +: and +:%
VTTata 7#7 +: and +:%
VTTata 11#7 /Intermediate truck3
VTTata 1!1#G1!1% /,edium bus3
VTTata 161#G1616 />ea<y bus3
VTTata 1618G161! /,edium truck3
VTTata %!1!G%!16 /,edium truck3
VTTata 4lobus /?ow Floor 2us3
VTTata ,arcopolo 2us /?ow Floor 2us3
VTTata 8#1! />ea<y truck3
VTTata 811" />ea<y truck3 /"S%3
VTTata 8!16 />ea<y truck3
VTTata 17%8 /Ultra&>ea<y truck3 /6S13
VTTata @o<us />ea<y truck designed by Tata 5aewoo3
CBD i.it(ry 4ehic.es
VTTata ?S /?ight Specialist ehicle3
VTTata % Stretcher $mbulance
VTTata 1#9 Troop (arrier, a<ailable in hard top, soft top, 1:1, and 1:% <ersions
VTTata ?6T$ 918 T( /1:13
VTTata ?6T 9#7 +
VTTata S5 1#1! T( /1:13
VTTata ?6T$ 161! T( /1:13
VTTata ?6T$ 16%1 T( /6:63
VTTata ?6T$ 161! T
AR:ETING STRATEGIES
24
T$T$ un<eiled its long awaited 1 ?akh rupee car /actually a little o<er 1 lakh after ta:3 for the
masses and they call it EThe ,eo+.eFs C(rG. ItAs a sweet looking small car, ;ust enough to take four
people around the city. 1 ?akh rupees roughly translate to %!## rupees monthly installment and
because of this reason T$T$ is e:pect to sell record breaking numbers and lea<e Indian roads
blocked.
T$T$ @ano will hit the roads and as it is a definite threat to ,aruti "##. T$T$ stated that the initial
production of this car will be of &=$H$$$ a year. $fter about four years of hard efforts
T$T$ @ano /1 lakh rupee car3 was on road now. The introduction of the @ano recei<ed media
attention due to its targeted low price. The car is e:pected to boost the Indian economy, create
entrepreneurial&opportunities across India, as well as e:pand the Indian car market by 6!%. The car
was en<isioned by .atan Tata, (hairman of the Tata 4roup and Tata ,otors, who has described it as
an eco&friendly Npeople's carN. @ano has been greatly appreciated by many sources and the media for
its low&cost and eco&friendly initiati<es which include using compressed&air as fuel and an electric&
<ersion /+&@ano3. Tata 4roup is e:pected to massmanufacture the @ano, particularly the electric&
<ersion, and, besides selling them in India, to also e:port them worldwide.
(ritics of the car ha<e Buestioned its safety in India /where reportedly 7#,### people are killed in
road&accidents e<ery year3, and ha<e also criticised the pollution that it would cause /including
criticism by @obel 6eace 6ri-e winner .a;endra 6achauri3. >owe<er, Tata ,otors has promised that
it would definitely release @ano's eco&friendly models alongside the gasoline model. The @ano was
originally to ha<e been manufactured at a new factory in Singur, =est 2engal, but increasingly
<iolent protests forced Tata to pull out Cctober %##". (urrently, Tata ,otors is reportedly
manufacturing @ano at its e:isting 6antnagar /Uttarakhand3 plant and a mother plant has been
established in Sanand 4u;arat. The company will bank on e:isting dealer network for @ano initially.
The new @ano 6lant ha<e a capacity of !##,### units, compared to 8##,### for Singur. 4u;arat has
also agreed to match all the incenti<es offered by =est 2engal go<ernment. The T(t( N(no is a
rear&engined, four&passenger city car built by Tata ,otors, aimed primarily at the Indian market. The
car is <ery fuel efficient, achie<ing around %6.##kmGl on the highway and around %%.##kmGl in the
city. It was first presented at the 7th annual $uto +:po on )anuary 1#, %##", at 6ragati ,aidan in
@ew 5elhi. @ano had a commercial launch on ,arch %8, %##7 and a booking period from $pril 7 to
$pril %!, generating more than %##,### bookings for the car. The sales of the car begin in )uly %##7,
with a starting price of .s 11!,### /rupees3. This is cheaper than the ,aruti "##, its main competitor
and ne:t cheapest Indian car priced at 1"1,611.upees.
.atan Tata, the (hairman of Tata ,otors, began de<elopment of the world's cheapest production car
in %##8, inspired by the number of Indian families with two&wheeled rather than fourwheeled
25
<ehicles. The @ano's de<elopment has been tempered by the company's success in producing the low
cost 1 wheeled $ce truck in ,ay %##!.
(ontrary to speculation that the car might be a simple four&wheeled auto rickshaw, The Times of
India reported the <ehicle is Na properly designed and built carN. The (hairman is reported to ha<e
said, NIt is not a car with plastic curtains or no roof [ it's a real car.N
To achie<e its design goals, Tata refined the manufacturing process, emphasi-ed inno<ation and
sought new design approaches from suppliers. The car was designed at Italy's Institute of
5e<elopment in $utomoti<e +ngineering [ with .atan Tata reBuesting certain changes, such as the
elimination of one of two windscreen wipers. Some components of the @ano are made in 4ermany
by 2osch, such as Fuel In;ection, brake system, alue ,otronic +(U, $2S and other technologies.
The @ano has %1% more interior space /albeit mostly as headroom, due to its tall stance3 and an "%
smaller e:terior compared to its closest ri<al, the ,aruti "##. Tata offered the car in three <ersionsD
the basic Tata @ano StdU the (:U and the ?:. The (: and ?: <ersions each ha<e air conditioning,
power windows, and central locking. Tata has set its initial production target at %!#,### units per
year.
COST CUTTING FEATURES
VTThe @ano's trunk does not open. Instead, the rear seats can be folded down to access the trunk
space.
VTIt has a single windscreen wiper instead of the usual pair.
VTIt has no power steering.
VTIts door opening le<er was simplified.
VTIt has three nuts on the wheels instead of the customary four.
VTIt only has one side <iew mirror.
,RICE
Tata initially targeted the <ehicle as Nthe least e:pensi<e production car in the worldN[ aiming for a
starting price of 1##,### rupees or appro:imately, despite rapidly rising material prices at the time.
$s of $ugust %##7, material costs had risen from 17% to %7% o<er the carAs de<elopment, and Tata
faced the choice ofD
VTintroducing the car with an artificially low price through go<ernment subsidies and ta:breaks
VTforgoing profit on the car
26
VTusing <ertical&integration to artificially boost profits on cars at the e:pense of their
materials industries
VTpartially using ine:pensi<e polymers or biodegradable plastics instead of a full metalbody
VTraising the price of the car
N(no is (4(i.(2.e in three tri* .e4e.s0
VTThe basic Tata @ano Std priced at 1%8,### .upees has no e:trasU
VTThe delu:e Tata @ano (S at 1!1,### .upees has air conditioningU
VTThe lu:ury Tata @ano ?S at 19%,### .upees has air conditioning, power windows and central
locking
VTThe @ano +uropa, +uropean <ersion of the Tata @ano has all of the abo<e plus a larger body,
bigger 8&cylinder engine, anti&lock braking system /$2S3 and meets +uropean crash standards and
emission norms.
The base model will ha<e fi:ed seats, e:cept for the dri<er's, which will be ad;ustable, while the
delu:e and lu:ury models will get air conditioning and body coloured bumpers.
Technic(. s+eci-ic(tions
$ccording to Tata 4roup's (hairman .atan Tata, the @ano is a 88 6S /88 hpG%1 k=3 car with a 6%8
cc rear engine and rear wheel dri<e, and has a fuel economy of 1.!! ?G1## km\ /%1.79 kmG?, !1.9
mpg /US3, 6% mpg /UE33 under city road conditions, and 8."! ?G1## km on highways / %!.791 kmG?,
61.1 mpg /US3, 98.8 mpg /UE33. It is the first time a two&cylinder nonopposed petrol engine will be
used in a car with a single balance shaft. Tata ,otors has reportedly filed 81 patents related to the
inno<ations in the design of @ano, with powertrain accounting for o<er half of them. The pro;ect
head, 4irish =agh has been credited with being one of the brains behind @ano's design.
,uch has been made of Tata's patents pending for the @ano. 5uring a news conference at the @ew
5elhi $uto +:po, .atan Tata pointed out none of these is re<olutionary or represents earth&shaking
technology. >e said most relate to rather mundane items such as the two&cylinder engineAs balance
shaft, and how the gears were cut in the transmission. Though the car has been appreciated by many
sources, including .euters due to Nthe way it has tweaked e:isting technologies to target an as&yet
untapped segment of the marketN, yet it has been stated by the same sources that @ano is not Buite
Nre<olutionary in its technologyN, ;ust low in price. ,oreo<er, technologies which are e:pected of
the new and yet&to&be&released car include a re<olutionary compressed&air fuel system and an eco&
friendly electric&<ersion, technologies on which Tata is reportedly already working, though no
official incorporation&date for these technologies in the new car has been released. $ccording to
Tata, the @ano complies with 2harat Stage&III and +uro&I emission standards. .atan Tata also said,
'The car has passed the full&frontal crash and the side impact crash'. Tata @ano passed the reBuired
27
'homologationA tests with 6une&based $utomoti<e .esearch $ssociation of India /$.$I3.This means
that the car has met all the specified criteria for roadworthiness laid out by the go<ernment including
emissions or noise J <ibration and can now ply on Indian roads. Tata @ano managed to score around
%1 km per litre during its ZhomologationA tests with $.$I. This makes Tata @ano the most fuel
efficient car in India. @ano will be the first car in India to display the actual fuel mileage figures it
recorded at $.$IAs tests on its windshield. $ccording to $.$I it conforms to +uro I emission
standards which come into effect in India in %#1#.
REAR OUNTED ENGINE
The use of a rear mounted engine to help ma:imi-e interior space makes the @ano similar to the
original Fiat !##, another technically inno<ati<e Npeople's carN. $ concept <ehicle similar in styling
to the @ano, also with rear engined layout was proposed by the UE .o<er 4roup in the 177#s to
succeed the original ,ini but was not put into production. The e<entual new ,ini was much larger
and technically conser<ati<e. The independent, and now&defunct, ,4 .o<er 4roup later based their
.o<er (ity.o<er on the Tata Indica. Tata is also reported to be contemplating offering a compressed
air engine as an option.
nanoFs TECHNICAL S,ECIFICATIONS
En'ine0 % cylinder petrol with 2osch multi&point fuel in;ection /single in;ector3 all
aluminium 88 horsepower /%! k=3 6%1 cc /8" cu in 3
alue ,otronic engine management platform from 2osch
% <al<es per cylinder o<erhead camshaft
(ompression ratioD 7.!D1
bore ] strokeD 98.! mm /%.7 in3 ] 98.! mm /%.7 in3
6owerD 88 6S /88 hpG%1 k=3 ^ !!## rpm
TorBueD 1" @_m /8! ft_lbf3 ^ %!## rpm
L(yout (nd
Tr(ns*ission0
.ear wheel dri<e
1&speed manual transmission
Steerin'0 mechanical rack and pinion
Turning radiusD 1 metres
,er-or*(nce0 $ccelerationD #&9# kmGh /18 mph3D 11 seconds
28
,a:imum speedD 1%# kmGh /9! mph3
Fuel efficiency /o<erall3D %# kilometres per litre /! litres per 1## kilometres
/!6 mpg&impU 19 mpg&US33
Body (nd di*ensions0 Seat beltD 1
Trunk capacityD 1!# ? /!.8 cu ft3
Sus+ensionH Tires >
Br(9es0
Front brakeD drum
.ear brakeD drum
Front trackD 1,8%! mm /!%.% in3
.ear trackD 1,81! mm /!1." in3
4round clearanceD 1"# mm /9.1 in3
Front suspensionD ,c6herson strut with lower $ arm
.ear suspensionD Independent coil spring
1%&inch wheels
odi-ic(tion in TATA Su*o
The Toyota Kualis and now competes with (he<rolet Ta<era. The discontinuation ofKualis to launch
the Toyota Inno<a pro<ed ad<antageous to Tata Sumo. The Sumo has seen a series of changes in
terms of refinement in this decade. It has been the fa<orite choice for cab owners, as it is rugged and
affordable. The Tata Sumo has been en;oying its position in the ,U market since 1771. It had stiff
competition with new Sumo icta has been portrayed as a family lifestyle <ehicle, but in fact is a
carryo<er of the old Sumo, with some cosmetic changes. The Sumo comes in nine icta <ariantsD
(S 1#G9 Str, 5I (S 9G7G1# Str, 5I +S 9G7 Str, 5I 4S 9G7 Str, 5I ?S 9G7 Str, +S 1#G9Str, 4S 9 Str,
4S T( 9 Str, and ?S 1#G9 Str. $ll <ariants, e:cept the icta 5I <ariants, are powered by a %& litre
Inline&1 diesel engine. The 4S and 4S T( <ariants get a %&litre turbocharged diesel engine that
generates "7 bhp. The icta 5I <ariants get a 8&litre turbocharged diesel engine. .efinement, both
internal and e:ternal, is e<ident across the <ariants. Tata's latest three <ariants under the 'Sumo
4rande' category are ?S, +S and 4S a<ailable in %&seater, 9& seater and "&seater configurations.
Sumo 4rande boasts of a powerful %.%&? 5irect In;ection (ommon .ail /5I(C.3 engine
SUO S,ACIO
$ no&frills <ersion called the Tata Spacio is also a<ailable. It is eBuipped with a 8### cc
29
5I diesel engine sourced from the popular ?( Tata 1#9. The prominent <isual difference was the
presence of round headlamps instead of the rectangular lamps. $ soft top <ersion of the Spacio called
the Spacio ST was also introduced for the rural markets. $fter the facelift, the Spacio inherited the
styling elements of the older Tata Sumo. In %##9, the icta became a<ailable with the Spacio's 8###
cc engine. $nd in terms of styling, the positioning of the spare wheel was changed from the rear
tailgate to the underbody of the <ehicle. This model comes in " and 1# seater <ariants and is <ery
much popular with pri<ate transporters J contract ta:i <endors because of its lower cost.
SUO /ICTA
The new Sumo icta released in %##1 featured power windows, power steering, dual $(,central
locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti glare C.,S with
electronic control, remote keyless entry, tachometers, ?(5 monitors, <oice warnings, multiple trip
odometers are all either standard or a<ailable options.
Ne7 TATA Su*o 5SUO GRANDE6
Tata launched the Su*o Gr(nde on )anuary 1#, %##" powered with a new generation,
%%## cc 1%# bhp /"7 k=U 1%% 6S3 5I(C. /Direct In;ection Common Rail3 engine. It is the most up
market <ersion of the Sumo a<ailable and features completely different body work. It lies below the
Tata Safari in Tata's product portfolio.
SUO GRANDE S+eci-ic(tions
To+ s+eed 11" kmGh /7% mph3
$ to 1$$ 9*Ih 5?& *+h6 19.6 s
En'ine Ty+e %.%? 5I(C., 8% 2it +(U and ariable 4eometry Turbocharger
Dis+.(ce*ent 5C(+(city6 %197 cc
Tr(ns*ission !&speed manual
,o7er 1%# 6S /11" hpG"" k=3 ^ 1### rpm
TorJue %!# @m /1"1 lb_ft3 ^1!## rpm
/(.4e ech(nis* 5C>(
Cy.inder Con-i'ur(tion Inline 1
Fue. Ty+e 5iesel
Fue. T(n9 C(+(city
5Ltrs.6
6!
ini*u* Turnin' R(dius !.%! meters
8hee. si)e 16 inch
Tyres %8!G9# . 16 /tubeless3
Ground C.e(r(nce %#! mm G ".#9 inches
30
Steerin' 6ower Steering, Tiltable J (ollapsible
Co.ours Iephyr 4reen, ,arine 2lue, Sunset Crange, ,ineral .ed, $rctic
=hite, $rctic Sil<er, Kuart- 2lack. 5@ Co.ours6
Dicor /(ri(nts
The 5I(C. /common rail diesel3 <ersion of Tata Indigo is a<ailable in two <ariants which has
already hit the bull's eyes. The beefy J bony structured sedan has the capacity to deli<er ma:imum
torBue of 11#@m ^ 1"## & 8### rpm. The Indigo 5icor from Tata ,otors has been made apt for
Indian roads especially with its dri<er J co passengers oriented positi<e attributes such asD
V $nti&submarine front seats
V @ew electronic instrument cluster with engine .6, meter
V .ear Seat with double folding backrest
V ideo player with ,68D with headrest mounted ?(5 screens
V 1.1&litre as rail diesel engine
Indi'o LK Dicor
Tata Indigo ?S 5icor on the other hand features manually operated with chrome strip outer rear
<iew window, black dials with chrome rings J star check as the new pattern for its console J $(
fascia.
Indi'o LS Dicor
Tata Indigo ?S 5icor features manually operated outer rear <iew mirror, black dials, J 2en- sil<er
as the new pattern for console J $( fascia. It has no mounted ?(5 screens.
i.e('e 5City6 0 11.9! kmpl
i.e('e 5Hi'h7(ys6 0 1".8! kmpl
ENGINES
,etro. 1876 cc ,6FI 6etrol +ngine with 8%&2it ,icroprocessor
,a:. 6ower & "! 6S ^!!## rpm
,a:. TorBue & 1% Egm ^ 8!## rpm
Diese. Turbo&charged 11#! cc Indirect In;ection +ngine with Intercooler
,a:. 6ower &9# 6S ^ 1!## rpm
,a:. TorBue & 18.! Egm ^ %!## rpm
Dicor 8%&bit microprocessor based 1876 cc 5I(C. /5irect In;ection (ommon
.ail3 16&<al<e engine with 5ual C<er >ead (amshafts and a ariable
31
4eometry Turbocharger /4T3
,a:. 6ower&9# 6S^1### rpm
,a:. TorBue & 11#@m^1"##&8### rpm
A,,ING OF RURAL AR:ETS
$ccording to the @ational (ouncil for $pplied +conomic .esearch, or @($+., rural India accounts
for 9#% of IndiaAs population, !6% of the national income, 61% of the total e:penditure and one&
third of the total sa<ings. So, the difficulties faced in cracking these markets pale before the huge
potential they offer a company. Cf the total sales /of consumer goods3, around !!% come from rural
India, and going ahead, the contribution is likely to grow. @($+. data suggests that in real terms, at
1777 prices, the si-e of the rural economy will be about .s16 trillion in %#1%&18 compared with
.s1% trillion in %##9&#". The share of non&farm income will be about two&thirds of the rural
economy by %#1%&18. @oticing this huge potential Tata motors now plans to tap the rural market, 6#
per cent of which runs on cash. Tata motors ltd. is working on strategies to make inroads into these
markets.
FINANCIAL ANAL!SIS
FINANCIAL O/ER/IE8
Fiscal %##"&#7, the second year of 11th Fi<e Hear 6lan saw a marginal fall in 456 growth rate of 7%.
VTThe slowdown in economy.
VTIncrease in inflation.
VT6oor credit a<ailability.
VT>ardening of interest rate
VT.ise in price of input material
VT6roposed increase in fuel price and <olatility in foreign e:change rates.
VT,anufacturing e:penses, employee cost increase.
VT@et raw material consumption inclusi<e of processing charges increased, with pressure on <olumes
and margins.
BALANCE SHEET ANAL!SIS
From the abo<e statement it is seems that the company has become highly geared year
32
after year. To substantiate this, the net current asset which is a representation of their long term debit
is on the increase /.s. %9,%#8.8# million In %##6, .s. 1#,%8!.1# million in %##9, and .s. !",97%."#
million In %##"3 this forms a lower percentage of the total debit /when short term debit and capital
cases are added3 the company is perhaps aware of the results that may effect the interest on the total
eBuity and rather ha<e a preference for short term loans as the en<ironment dictate, hence, increasing
the total eBuity year by year. 5uring the year, the (ompany recorded its highest e<er sale of !,
"!,617 <ehicles and grew its turno<er to .s. 88,#71 crores to remain as India's largest automobile
company by re<enue.
The (ompany's margins were under pressure during the year due to rising interest rates, constraints
in a<ailability of <ehicle financing from outside sources and unprecedented increase in prices of raw
materials. For long term financial plan and e:pansion of the new product /@ano3 Tata has decided to
raise funds from the stock market rather than going for a loan option /4+$.I@43. This is because in
the past hea<y amounts were gained as interest on loans which ha<e a negati<e effect on the profit
and returns to the stake holders. To support my analysis in financial year %##6, .s. 86,611 million
loans was taken, and in the year %##9, .s. 97,189 million loan was taken, $nd also the companies
net profit margins ha<e gone down abruptly from 6."% in %##! to !.6% in %##9, most probably
because of the rising cost of the raw material used by the ! company, but still the profits of the Tata
,otors remain highest than the other auto manufacturers. The rate of interest on <ehicles in India is
running <ery high, because of which the sales growth ha<e gone a little down. +<en then Tata
,otors ha<e increased there profits to 6.%% year after year. $nd are still financing most of their
sales, up to 81% in %##9 from %1% in %##6. >ence, gross accounts recei<able are greater than before
by 8!% e<ery year and they also had to make up the shortage of cash by borrowing. =hen combined
with the other e:penses to the growth of fuel, it has augmented its short as well as itAs the long&term
debt e:tensi<ely. The +2I5T$ /earnings before interest, ta:es, depreciation, and amorti-ation3
margin at 1#."%
was lower than last year as increase in input costs could only be partially absorbed by the market.
@oteD $morti-ation P non&cash e:pense of writing off intangible assets o<er their useful li<es. The
6rofit 2efore&Ta: at .s.%, !96 crores was #.1 % higher than last year, The 6rofit after Ta: at .s.%,
#%7 crores, was 6.1 % higher than last year.
FINANCIAL ,ERFORANCE
=ith significant increase in the (ompany's capital e:penditure programAs and the growing business
reBuirement, the o<erall borrowings of the (ompany stood at .s.6, %"#.!% crores at a 5ebtD +Buity
ratio of #."#D1. The Indian economy remained in high growth phase but witnessed moderation in
33
456 growth to 7#G in FH #"&#7 as compared to o<er 7% growth achie<ed in the pre<ious two years.
The commercial <ehicle industry which grew by o<er 88% in FH #9&#" was impacted by moderation
in economic growth as wet as substantial reduction in <ehicle financing and posted a ".1% growth
this fiscal. The passenger <ehicle industry also witnessed a slowdown but managed to grow by 11.1
% by increasing discounts on mature products, launching new models and due to reduction in e:cise
duty announced by the go<ernment in 2udget during February'#7 ehicle e:ports also grew, albeit at
a slightly lower rate of 11.7% as compared to 11."% witnessed in the pre<ious year. $midst
moderation in economic growth, a high interest rate regime and tightening of the liBuidity position,
the domestic passenger <ehicle industry was able to grow by 11.8% to an all time high of o<er 1.!
million <ehicles, albeit at a lower growth rate than %1% of the last fiscal. The Industry's growth rate
in fact fell to single digit in the last four months of the fiscal. 4rowth was primarily dri<en by new
launches and discounts on e:isting <olume models. $long with two wheelers, entry le<el cars /price
point below .s 8 lacs3 declined by %%.The lu:ury segment howe<er doubled in si-e to o<er !,###
<ehicles and were immune to the slowing market conditions. Cf o<er 7# models in the industry the
top 1# constitute 6!% of the industry sales. $fter si: years of consecuti<e growth, the (ompany's
passenger <ehicle sales decreased marginally by 1.!% to %, 1",#!! <ehicles /including 8,%79 Fiat
branded <ehicles3 and the (ompany had a 11.%% share in the passenger <ehicle market between
T$T$ and Fiat branded <ehicles. Fiscal %##"&#7, the second year of 11th Fi<e Hear 6lan saw a
marginal fall in 456 growth rate of 7%. In <iew of the slow down in economy, increase in inflation,
poor credit a<ailability, hardening of interest rates, rise in prices of input materials, proposed
increase in fuel prices and <olatility in foreign e:change rates, the commercial and passenger <ehicle
industry has a challenging year ahead, with pressure on <olumes and margins.
LFisc(. &$$" &$1$ /,illions of .upees3
Total short&term debt 9,798 88,11!
/+:cluding current portion of long&term debt3
?ong&term debt net of current portion %9,%#8 1#,%8!
Tot(. De2t 86,611 97,189M
FINANCIAL ANAL!SIS OF TATA OTORS
TCn the back of a 8.7% <olume growth, the company registered 11.1% y&o&y growth in net re<enue to
.s.6#.!9 bn during 1KFH#7 due to <ehicle price increases and fa<orable mi:
TSignificant cost increases were witnessed in raw material consumption and employee cost which
witnessed y&o&y growth of 1".%% and 18.7% respecti<ely.
T+:cluding the impact of foreign e:change <aluation related losses, the (ompanyAs
34
+2IT5$ stood at .s.!,8#1.9 mn, compared to .s.!,168.# mn the year ago Buarter.
+2IT5$ margin, e:cluding foreign e:change losses was 9.9% in 1KFH#7, compared to 7.#%
1KFH#7.
TIn a rising cost scenario, pressure on margins was <isible as the companyAs raw material cost as
percentage of net re<enues of the (ompany rose by %1# bps to 9%.#% in 1KFH#7U from 67.9% in
1KFH#".
V(ost reduction in 1K FH#7 stood at %71 mn.
T@et interest e:pense increased 89.9% y&o&y to .s.11%8.8 mn in K1 FH#7, compared to .s."1!.6 mn
due to rising interest rates and higher debt. >owe<er, the interest e:pense as a % of net sales
increased marginally from 1.8% in K1 FH#" to 1.6% in K1 FH#7.
TTa: rate for first Buarter declined substantially and stood at !.!% as compared to %1.%% for same
period last year, on account of large di<idends recei<ed by (ompany on its In<estmentsGSubsidiaries
which are not ta:able in the hands of the (ompany and
weighted deductions a<ailable on .J5 e:penditure.
T$s on 8#th )uneA#", the balance sheet si-e of the (ompany was .s. 1"8.7" bn as
compared to .s 1!#.76 bn as on 81st ,archA#". @et of <ehicle financing loans and
recei<ables the (ompanyAs capital employed was .s 19".88 bn as on 8#th )uneA#"
against .s.18!.96 bn as on 81st ,archA#".
T$s on 8#th )uneA#7, 8"!.6% mn shares /Face <alue .s.1#3 were outstanding on the
balance sheet of Tata ,otors.
TThe 4ross total debt /inc. F((@s3 stood .s 71.79 bn as on 8#th )uneA1# as compared to .s. 6%." bn
as on 81st ,archA1#. The (ompanyAs @et 5ebt /@et of the surplus in<estible funds3 stood at .s "7.8
bn as on 8#th )uneA1#. $s on 8#th )uneA1#, the (ompanyAs net debt to eBuity ratio stood at 1.1%D1.
TUp to )une 8#th, %#1#, 77.71% of the 1% con<ertible @otes /due %#1#3 and 79.#7% of
the Iero coupon (on<ertible @otes /due %##73 ha<e been con<erted into Crdinary SharesG $5Ss.
There ha<e been no con<ersions of the other F((@s issued by the (ompany.
TThe (ompanyAs 2alance Sheet includes .ecei<ables and loans of .s. %9.71 bn
FINANCIAL ,ERFORANCE AS A EASURE
TIn a challenging en<ironment, the (ompany has been able to marginally grow its
re<enues and profits. =hilst the (ompany's profit after ta: impro<ed to .s.%,#%".7%
crores from .s.1,718.16crores in the pre<ious year, the margins were under pressure
mainly due to the rising input costs and lower <olume growth.
35
TTurno<er, net of e:cise duties increased by 1.6% to another record high of .s. %",98#."% crores from
.s.%9, 19#.#8 crores in FH %##"&#7.The total number of <ehicles sold during the year increased by
#.7% to !"!,617 units from !"#,%"# units in FH %##"&#7.The domestic <olumes increased by #."%
to !8#,77# units from !%6,"#6 units in FH %##"&#7, while e:port <olumes increased by %.%%% to
!1,6!7 units in FH %##"&#7 from !8,191 units in FH %##"&#7.
V@et .aw ,aterial consumption inclusi<e of processing charges increased by 6.%%to
.s.%1, #"%.1# crores in FH %##"&#7, from .s.17,"17.#1 crores in FH %##9&#". ,aterial
(ost as a % of net turno<er has increased to 98.1% from 9%.8% for the last year. This was largely a
result of increase in prices of steel, aluminum, nickel, copper and natural rubber. >owe<er, the
(ompany managed to lower the impact through its on going cost reduction program with initiati<es
like global sourcing, <endor rationali-ation and <alue
engineering.
T+mployee (ost increased by 1%.7% during the year to .s. 1,!11.!9 crores from .s.
1,86".#7 crores registered in the pre<ious year mainly inline with trends in industry and
economy. The manpower increased marginally to %8,%8# from %%,817 with increases also in fle:ible
manpower.
T,anufacturing and Cther +:penses increased by %.1% to .s. 8,#11."8 crores in FH %##7& 1#from
.s.%,71#.!8 crores in FH %##9&#".These were 1#.!% of net turno<er for the year as compared to
1#.9% for the pre<ious year.
VT6rofit before depreciation, interest and ta: increased by #.!% to .s.8,!9!.!# crores from
.s.8,!!9.!6 crores in FH %##9&#".The margin decreased to 1%.1% from 18% in FH %##"&#7.
V5epreciation /including product de<elopment e:penditure3 for %##"&#7 increased by
6."% to .s. 916.66 crores from .s.691.81 crores in FH %##7&1# on account of increase in fi:ed
assets. It represents %.!% of net turno<er as compared to %.1% for FH %##"&#7.
V@et interest cost decreased to .s. %"%.89 crores in FH %##"&#7 from .s.818.#9 crores in FH %##9&
#". 5espite increase in interest rates and increase in capital e:penditure, the reduction was mainly on
account of significant reduction in the (ompany's <ehicle financing portfolio /on account of
securiti-ation3, better working capital management, interest earnings and larger capitali-ation of
interest in line with the increase in capital e:penditure.
V6rofit before Ta: /62T3 of the (ompany increased by #.18% to .s. %,!96.19 crores from .s.
%,!98.1" crores in FH %##9&#".
T6rofit after Ta: /6$T3 increased by 6.#8% to .s. %,#%".7% crores from .s.1, 718.16crores in FH
%##"&#7. This was mainly on account of a lower ta: pro<ision owing to the increase in spends on
.esearch and 5e<elopment and income from capital gains, which is sub;ect to a lower ta: rate. 2asic
+arning 6er Share /+6S3 increased by !.97% to .s.!%.61 as compared to .s.17.96 last year.
36
TIn<estments increased to .s.1, 71#.%9 crores in FH %##9&#" from .s.%, 199.## crores in FH %##"&#7.
TThe 6rofit 2efore XTa: at .s. %,!96 crores was #.1% higher than last year. The 6rofit
after Ta: at .s. %,#%7 crores, was 6.1% higher than last year.
TFinancial performance of a company is satisfactory and attaining good returnAs of the
capital employed e<en in peak stage as =$(( is less than about 18.1%%
GLOBAL AUTOOBILE INDUSTR!
EK,ECTED GRO8TH 2y &$1=#1?
TE1+ected to 'ro7 (t 13% +.( o4er the ne1t dec(de to re(ch (round
USD L 1&$ # 1=" 2n 2y &$1?.
INDIAN AUTOOTI/E ,LA!ERS0 O/ER/IE8 OF THE
,LA!ERS IN THE INDIAN INDUSTR!
The Indian auto industry is highly competiti<e with a number of global and Indian auto companies
present. >ence, we ha<e conducted an Inter company analysis of Tata with ,ahindra and ,ahindra
and ,aruti Udyog, to get an idea of the companyAs position /operation and profitability3 <is a <is its
competitors.
INTER CO,AN! ANAL!SIS0
Eey 6layers in the Indian auto industry X 6assenger (ars $nd (s The largest 6layer in the Indian
industry. 6lans to launch new and e:citing products in the Indian markets, including the Z1##,###A
cars. TCHCT$ has <ision of capturing 1%% share of Indian passenger car market by %#11. The third
largest passenger car manufacture in India and one of the largest e:porters of <ehicles. >as
establishes India as one of its manufacturing bases in the world, is planning to in<est hea<ily to boost
e:ports from India. ,aruti Su-ukiAs ) in India and the largest passenger car manufacturer in India.
Cne of the leading players in the Indian premium cars segment.
Cne of the largest players in the UG ,U segment Cne of the leading players in the Indian
premium cars segment. 6lans to enter the small car segment by re&launching the mati-.
The %nd largest ( manufacturer in India. Cther global players who are in India ha<e plans for
India includes X /OL/OH DAILER CHR!SLERH B8 and NISSAN OTORS.
37
RESEARCH ETHODOLOD!
3.Rese(rch ethodo.o'y0
The purpose of methodology is to describe the process in<ol<ed in research work. This
includes the o<erall research design, data collection method, the field sur<ey and the analysis of data.
3.1 Tit.e o- the study0
Title of the study is LCo*+(re the St(ndin' TATA otors 4is#M#4is the Industry > Custo*er
S(tis-(ction Sur4eyG
3.& Dur(tion o- the +roNect0
5uration of the pro;ect was 1! days.
3.3 O2Necti4e o- the Study0
Financial performance in automobile industry
,arket performance
6rocedure followed by T$T$ ,otors for catering to the needs and Bueries of the
customers
Kuantitati<e research
$wareness regarding the facilities pro<ided by T$T$ ,otors.
C<erall opinion about T$T$ ,otors
To know the consumer satisfaction.
38
Financial performance in automobile industry.
+conomic and the industry en<ironment.
(ost sa<ing initiati<es.
To find out the awareness le<el of customer.
To find the satisfaction amongst the customers of T$T$ ,otors.
3.B Ty+e o- rese(rch0
This research is descripti<e in nature. 5escripti<e research includes sur<eys and fact X finding
inBuiries of different kind. The ma;or purpose of descripti<e research is description of the state of
affairs as it e:ists at present. The main characteristic of this method is that the researcher has no
control o<er the <ariables.
The data collected here may relate to the demography or the beha<ioral <ariables of the respondents
under study
3.= S(*+.e si)e (nd *ethod o- se.ectin' s(*+.e0
Total sample si-e is 1##.
RESEARCH DESIGN0
.esearch 5esign is the arrangement for conditioned for data collection J analysis of data in a
manner that aims to combined rele<ance to research purpose with economy in procedure. $ research
design is a master plan or model for the conduct of formal in<estigation. It is blue print that is
followed in completing study. The research conducted by me is a descripti<e research. This is
descripti<e in nature because study is focused on fact in<estigation in a well structured from and is
based on primary data.
RESEARCH ,LAN
Ty+e o- study0 For completing my study I ha<e gone for sample study because looking at the si-e of
population J the time limitation it was not con<enient for me to co<er entire population. >ence, I
ha<e gone for sample study rather than census study.
39
S(*+.in' ,.(n0
$ sample design is a definite plan for obtaining a sample from a gi<en population. It refers to the
techniBue or the procedure that researcher would adopt in selecting items to be inched in the sample
i.e. the si-e of sample. Sampling plan is determined before data are collected.
STE,S IN SA,LING ,LAN
S(*+.in' Fr(*e0
The list of sampling units from which sample is taken is called sampling frame. .ohtak (ity map
was studied thoroughly and samples were selected from the place in a scattered manner to get
effecti<e result.
SA,LING ,ROCEDURE0
The selection of respondents were accordingly to be in a right place at a right time and so the
sampling were Buite easy to measure, e<aluate and co&operati<e. It was a randomly area sampling
method that attempts to obtain the sample of con<enient.
Sources o- D(t( Co..ection0
,RIAR!0
For my sur<ey primary data ha<e been used as a Buestionnaire to collect the data.
SECONDAR!0
The secondary data has been collected from the following modesD
T,aga-ines
T2ooks
T@ewspaper
T5ata through internet sources
An(.ysis0
The important factors and dataAs collected were seBuentially analy-ed and graphed.
40
3.? Sco+e o- study0
To find the ,arket position.
For +conomic and the industry en<ironment.
This study would be useful for companies to know what people percei<e and thinking
about Tata ,otors and its products.
This study would be useful to other students as a secondary data.
This study would be useful to form strategies.
3.@ Li*it(tion o- the study0
I will ha<e to rely upon the information get from secondary sources /2alance sheet, 6rofitJ
?oss $ccount and (ash Flow 3 and gi<en by respondents, which may not be fully true.
This study will be limited to only some areas of .ohtak 5istrict of >aryana.
It is only for short period of time.
?ack of professional approach since researcher is a student
The sample si-e is only 1## so the sample may not be truly representati<e of the 6opulation.
I started my pro;ect <ery first educating the respondents about my entire pro;ect, and ask
them to coXoperate with me. ,ostly all the respondent were aware of this type of sur<eys. So I didnAt
face any type of difficulty during my pro;ect in the process of e:plaining and taking there responses
on the Buestionnaire.
41
FACTS > FINDINGS
B. F(ct (nd Findin's
$ detailed analysis of the company shows that the company has had a strong fundamental as well as
a strong market performance o<er the years. 4i<en the economic and the industry en<ironment
/impro<ing outlook for the ( industry3 T$T$ ,otors would be a key beneficiary. =hile a pick&up
in its ( <olumes is e<ident, operating le<erage and cost sa<ing initiati<es will impro<e margins. Cn
an a<erage more than 98% people feel that the prices are affordable whereas 1%% do not agree, 91%
belie<e that attracti<e discounts are offered whereas %6% are not satisfied with the discounts offered.
%#% said that the test dri<es are not offered and 1!% said that post sales follow ups are not done
regularly whereas "!% said that they were done regularly but people feel that it is the peopleAs car as
it is satisfactory on all other parametersD knowledgeable sales persons, employees spent enough time
before and during sales, display of merchandise is attracti<e, a<ailability of product, <ariety of
merchandi-e, <ehicle in good condition, prices are affordable, attracti<e discounts are offered, d`cor
of the waiting area is pleasing, responds to complaints Buickly, ser<ice at T$T$ ,otors ser<ice
station is e:cellent, careful with personal information and is <alue for money . The o<erall opinion
about T$T$ ,otors is <ery good.
42
ANAL!SIS > INTER,RETATION
= An(.ysis (nd inter+ret(tion0
$ detailed analysis of the company shows that the company has had a strong fundamental as well as
a strong market performance o<er the years. 4i<en the economic and the industry en<ironment
/impro<ing outlook for the ( industry3 T$T$ ,otors would be a key beneficiary. =hile a pick&up
in its ( <olumes is e<ident, operating le<erage and cost sa<ing initiati<es will impro<e margins.
(urrent .atio for T$T$ ,otors is greater, which implies that it has comfortable liBuidity position,
howe<er as compared to its competitors it is least liBuid since in<entories form a considerable
portion of its current assets. T$T$ ,otors has a debt eBuity ratio of about !%% which means that
one&third of its total assets are financed through debt. T$T$ ,otors has an I(. of 7.%% which
implies that it can easily ser<ice its debt obligations. >owe<er, its I(. is much less as compared to
its competitors. This is primarily because it the proportion of debt financing employed by T$T$
,otors is much higher as compared to ,J, or ,aruti Udyog
T$T$ ,otors has a higher operating profit margin of 1%% as compared to ,J,As
7%,its @et 6rofit ,argin /62ITGSales3 of 1#% is much lower than ,J,As 1!%..CT$ and .C(+
for T$T$ ,otors is the least among the three companies. =hile T$T$ has an .C(+ of %!%
,arutiAs .C(+ is nearly 8#%. It implies that there is potential in the industry that is not being fully
e:ploited by T$T$ ,otors.
TC (C,6$.+ T>+ ST$@5I@4 T$T$ ,CTC.S <is & a X <is T>+ I@5UST.H. I
(C@5U(T+5 $ FI@$@(I$? $@$?HSIS CF T=C CF ITS (C,6+TITC.S X ,$>I@5.$ J
,$>I@5.$ $@5 ,$.UTI U5HC4.
43
The comparison is based on the detailed analysis of the financial statement on the lines of ?iBuidity,
Sol<ency, 6rofitability and efficiency.
LI;UIDIT! ,OSITION0
6urpose of the ?iBuidity .atiosD The liBuidity ratios help to determine a companyAs ability to meet its
short&term liabilities. It can be in the form of the current ratio, liBuid ratio, absolute ratio or the
operating cycles. =hile the current ratio, liBuid ratio and absolute cash ratio pro<ide information
about the companyAs ability to payoff the shot&term obligations, the operating cycle pro<ides
Bualitati<e information about how Buickly the company can con<ert its stock into cash.
Co*+(ny An(.ysis0
T(urrent .atio for T$T$ ,otors is greater, which implies that it has comfortable liBuidity position,
howe<er as compared to its competitors it is least liBuid since in<entories form a considerable
portion of its current assets and cash i.e. the most liBuid asset, the least.
VFurther, it has a negati<e operation cycle, which is primarily due to the high credit period pro<ided
to its creditors. =hile both T$T$ and ,J, ha<e similar in<entory days ,J, has an e<en lower
operating cycle due to an e<en higher credit period. ,aruti on the other hand has an operating cycle
of 9 days, which is much higher as compared to the other two.
In-erences Dr(7n0 =e can, therefore conclude that T$T$ ,otors has a fa<orable liBuidity position
which is neither too high nor too low, as an e:tremely high liBuidity position would mean that the
company is not using its funds well while a low liBuidity position would imply that it would ha<e
difficulty in meeting its short term obligations.
SOL/ENC! ,OSITION0
,ur+ose o- the So.4ency R(tios0 The sol<ency ratios are used to measure a companyAs ability to
meet its long term obligation. The commonly used ratios to ascertain the sol<ency position of a
company are 5ebt +Buity .atio and Interest (o<erage .atio. 5ebtG+Buity .atioD The ratio gi<es the
proportion of debt and eBuity in the total capital structure. T$T$ ,otors has a debt eBuity ratio of
about !%% which means that one&third of its total assets are financed through debt. ,aruti on the
other hand has a low 5ebt +Buity .atio only 7% i.e the company primarily uses its profits and
reser<es to find its assets. Interest (o<erage .atioD $ ratio used to determine how easily a company
can pay interest on outstanding debt. The ratio is calculated by di<iding a companyAs earning before
44
interest and ta:es /62IT3 of one period by the companyAs interest e:penses of the same period.
62ITGSaleD The lower the ratio, the more the company is burdened by debt e:pense. =hen a
companyAs interest co<erage ratio is 1.! or lower, its ability to meet interest e:penses may be
Buestionable. $n interest co<erage ratio below 1 indicates the company is not generating sufficient
re<enues to satisfy interest e:penses. T$T$ ,otors has an I(. of 7.%% which implies that it can
easily ser<ice its debt obligations. >owe<er, its I(. is much less as compared to its competitors.
This is primarily because it the proportion of debt financing employed by T$T$ ,otors is much
higher as compared to ,J, or ,aruti Udyog. (onseBuently its debt obligation is also higher than
the other two.
SOL/ENC! RATIO GRA,HICAL0
This ratio measure how much out of e<ery rupee of sales a company keeps as earnings. The two
determinants of profit margin are
V Cperating 6rofit
V 62IT
It is interesting to note here that while T$T$ ,otors has a higher operating profit margin of 1%% as
compared to ,J,As 7%, its @et 6rofit ,argin /62ITGSales3 of 1#% is much lower than ,J,As
1!%. This implies that a large portion of T$T$As profit are from its operations while ,J, has a
considerable amount of non operating income. ,aruti has the highest profitability among the three
companies indicating that it has been most successful in controlling its costs.
R(te o- Return R(tios
V .CT$D .CT$ is an indicator of how profitable a company is relati<e to its total assets. .CT$
gi<en an idea as to how efficient management is at using its assets to generate earnings.
V .C(+D It indicated the efficiency and profitability of a companyAs capital in<estments.
.C(+ should always be higher than the rate at which the company borrowsU otherwise
any increase in borrowing will reduce shareholdersA earnings
,ROFITABILIT! RATIO Inferences about the companiesD .CT$ and .C(+ for T$T$ ,otors
is the least among the three companies. =hile T$T$ has an .C(+ of %!% ,arutiAs .C(+ is nearly
8#%. It implies that there is potential in the industry that is not being fully e:ploited by T$T$
,otors. There is still considerable scope for the company to increase its profits by effecti<ely
utili-ation is affected.
45
6+ ratio and ,G2 is lowest among the three companies for T$T$ ,otors, despite the fact that its
earnings and book <alue is higher than ,J,. The reason as to why these ratios are low is clearly its
low market <alue as competitors. The ,G2 .atio for ,J, is !.% which is much higher than
T$T$As 8.98 despite the fact that ,J,As 2 per share is .s. 11".11 which is lower than T$T$
,otorsAs 2 of .s. 17".66 per share.
Custo*er S(tis-(ction Sur4ey o- TATA otors
ROLE OF THE SALES ,ERSON
>e should be neatly dressed
>e should ha<e knowledge about <arious productAs
Features
ariants
(olors
6rices
Sales promotion campaigns
(ompetitor products, their features, prices, etc.
?atest ser<ice and warranty policies
(urrent a<ailability
(arry copy of ready reckoner

EDo not .e(4e the custo*er un(ttended -or *ore th(n 3 *inutesG
CUSTOER CARE TEA0
Ro.e o- the Custo*er C(re (n('er0
(ustomer (are ,anager is the leader of the customer care team. >e is accountable for the sales
satisfaction inde: of the dealership. The customer care manager ensures that e<ery customer is
properly followed up and feedback is recorded. $lso the customer complaints are recorded and
resol<ed as soon as possible to the le<el of satisfaction. The customer care e:ecuti<es report to the
customer care manager.
46
Custo*er C(re E1ecuti4eD&
Initially does the 6ost Sales Follow up /6SF3 and monitors the feedback forms at the showroom 6ost
sales follow up.
6SFAs are done in order to get the first hand feedback from the customer about the e:perience
that they had during the sales and deli<ery process.
The first 6SF is done within the 9% hours of deli<ery and the <oice or e:act wordings of the
customer are recorded. The ne:t 6SF call is made after 1! days after the <ehicle is deli<ered.
The feedback form system is a <ery important tool to obtain customerAs feedback on the
e:perience that the customer had during the purchase of hisGher car.
Firstly customer acre manager gi<es a control number to all complaints recei<ed and records
the same in the customer complaints control register.
Then customer acre manager gets in touch with the customer o<er the phone and e:presses
regret on the incon<enience faced by the customer
Immediate action is taken to ensure that the customer complaint is resol<ed and writes a letter
of apology
The customer care manager along with the concerned 5S+, then <isits the customer hands
o<er the letter and takes satisfaction note from the customer
Then he sends a copy of the letter and the satisfaction note to ,aruti Udyog ?td. $nd also
files a copy of the same in the customer complaints registerGfile.
Then the ((, discusses the customer complaints in the weekly meeting with the general
manager on SSI with the entire showroom staff. @ecessary counter measures are taken to
ensure that such complaints are not repeated in future.
$ll sales staff and managers re<iew customer care acti<ities on daily, weekly and monthly basis. The
SSI re<iew meet is conducted regularly.

47
KU+STIC@@$I.+ $@$?HSIS
;1. Ho7 .on' h(4e you 2een (ssoci(ted 7ith T(t( otors
,ercent('e
From 1 year !%
From 1 X 8 years 8%
From 8 X ! years 19%
From ! X 1# years 6#%
$bo<e 9 years 1!%
0
10
20
30
40
50
60
70
from 1 year from 1-3
years
from 3-5
year
from 5-10
years
above 7
years
Series1
;&. 5i6 :no7.ed'e(2.e S(.es+erson
,ercent('e
Strongly 5isagree #%
5isagree #%
@either 5isagree @or $gree #%
$gree "6%
48
Strongly $gree 11%
"6% people agreed that the sales persons are knowledgeable and 11% strongly disagreed that the
sales persons are knowledgeable.
0
10
20
30
40
50
60
70
80
90
100
agree strongly agree
Series1
;& 5ii6.E*+.oyees s+ent enou'h ti*e 7ith you 2e-ore s(.es
,ercent('e
Strongly 5isagree #%
5isagree #%
@either 5isagree @or $gree #%
$gree 61%
Strongly $gree 86%
61% people agreed that the sales persons spent enough time with them before the sales and 86%
strongly agreed with this.
49
0
10
20
30
40
50
60
70
agree strongly agree
Series1
;& 5iii6. Dis+.(y o- erch(ndi)e
,ercent('e
Strongly 5isagree #%
5isagree #%
@either 5isagree @or $gree #%
$gree 71%
Strongly $gree 6%
71% agreed that the display of merchandi-e was attracti<e and 6% strongly agreed that the display of
merchandi-e was attracti<e.
0
10
20
30
40
50
60
70
80
90
100
agree strongly agree
Series1
;& 5i46. A4(i.(2i.ity o- the ,roduct
50
,ercent('e
Strongly 5isagree #%
5isagree 1%
@either 5isagree @or $gree #%
$gree 71%
Strongly $gree !%
71% agreed that the a<ailability of the product was there, !% strongly agreed that the
a<ailability was there while only 1% said they disagreed with this.
0
10
20
30
40
50
60
70
80
90
100
agree strongly agree disagree
Series1
;& 546. /(rietyISe.ection o- erch(ndi)e
,ercent('e
Strongly 5isagree #%
5isagree 6%
@either 5isagree @or $gree #%
$gree "9%
Strongly $gree 9%
"9% agreed that there was <arietyGselection of merchandi-e whereas 9% strongly agreed that enough
<ariety was there and 6% disagreed with this.
51
0
10
20
30
40
50
60
70
80
90
100
agree strongly agree disagree
Series1
;.& 54i6 /ehic.e in Good Condition
,ercent('e
Strongly 5isagree #%
5isagree %%
@either 5isagree @or $gree #%
$gree "%%
Strongly $gree 16%
"%% agreed that the <ehicle was in good condition when deli<ered, 16% strongly agreed with this
whereas only %% disagreed with this.
0
10
20
30
40
50
60
70
80
90
agree strongly agree disagree
Series1
;& 54ii6.,rices Are A--ord(2.e
52
,ercent('e
Strongly 5isagree 1%
5isagree 11%
@either 5isagree @or $gree 1!%
$gree %1%
Strongly $gree !%%
!%% strongly agreed that the prices are affordable, %1% agreed that the prices are affordable whereas
only 1!% said that they neither disagreed nor agreed with this.
0
10
20
30
40
50
60
Strongly
Disagree
Disagree Neiter
Disagree
Nor !gree
!gree Strongly
!gree
Series1
;& 54iii6.Attr(cti4e Discounts O--ered
,ercent('e
Strongly 5isagree #%
5isagree %6%
@either 5isagree @or $gree #%
$gree 19%
Strongly $gree %9%
19% agreed that the discounts offered are attracti<e, %9% strongly agreed with this while %6%
disagreed and said that the discounts offered were not attracti<e.
53
0
5
10
15
20
25
30
35
40
45
50
agree strongly agree disagree
Series1
;& 5i16. DOcor O- The 8(itin' Are( Is ,.e(sin'
,ercent('e
Strongly 5isagree #%
5isagree %%
@either 5isagree @or $gree #%
$gree 9"%
Strongly $gree %#%
9"%agreed that the d`cor of the waiting area was pleasing while %#% strongly agreed that the d`cor
of the waiting area was pleasing
0
10
20
30
40
50
60
70
80
90
agree strongly agree disagree
Series1
54
;& 516.O--ered A Test Dri4e
,ercent('e
Strongly 5isagree #%
5isagree %#%
@either 5isagree @or $gree #%
$gree 91%
Strongly $gree 6%
91%agreed that the test dri<e was offered to them, 6% strongly agreed that the test dri<e was offered
while %#% disagreed with this.
0
10
20
30
40
50
60
70
80
agree strongly agree disagree
Series1
;& 51i6. ,ost S(.es Fo..o7 U+ Done Re'u.(r.y
,ercent('e
Strongly 5isagree #%
5isagree 1!%
@either 5isagree @or $gree #%
$gree !7%
Strongly $gree %6%
!7%agreed that the post sales follow ups are done regularly, %6% strongly agreed and
1!%disagreed with this.
55
0
10
20
30
40
50
60
70
agree strongly agree disagree
Series1
;& 51ii6.Res+onds To co*+.(ints ;uic9.y
,ercent('e
Strongly 5isagree 1%
5isagree 7%
@either 5isagree @or $gree 1%%
$gree 6#%
Strongly $gree 1"%
6#% agreed that the response to complaints is Buick, 1"% strongly agreed, 1%% neither agreed nor
disagreed and 7% disagreed with this.
0
10
20
30
40
50
60
70
Strongly
Disagree
Disagree Neiter
Disagree
Nor !gree
!gree Strongly
!gree
Series1
;& 51iii6. Ser4ice At TATA Ser4ice St(tion Is E1ce..ent
56
,ercent('e
Strongly 5isagree #%
5isagree 1%
@either 5isagree @or $gree #%
$gree "%%
Strongly $gree 11%
"%% said that the ser<ice at T$T$ ser<ice station is e:cellent, 11% strongly agreed while only 1%
disagreed with this.
0
10
20
30
40
50
60
70
80
90
agree strongly agree disagree
Series1
;& 51i46. C(re-u. 8ith ,erson(. In-or*(tion
,ercent('e
Strongly 5isagree #%
5isagree #%
@either 5isagree @or $gree "%
$gree "!%
Strongly $gree 9%
"!% agreed that yes they were careful with personal information, strongly agreed with this and "%
neither agreed nor disagreed.
57
0
10
20
30
40
50
60
70
80
90
agree strongly agree neiter disagree nor
agree
Series1
;& 5146. A.. The Co**it*ents Are Fu.-i..ed
,ercent('e
Strongly 5isagree #%
5isagree 9%
@either 5isagree @or $gree #%
$gree 6%
Strongly $gree "9%
"9% strongly agreed that all the commitments were fulfilled and 9% disagreed with this.
0
10
20
30
40
50
60
70
80
90
100
agree strongly agree disagree
Series1
;& 514i6./(.ue For oney
,ercent('e
58
Strongly 5isagree #%
5isagree "%
@either 5isagree @or $gree #%
$gree 1%
Strongly $gree ""%
""% strongly agreed that T$T$ pro<ides <alue for money while "% disagreed with this.
0
10
20
30
40
50
60
70
80
90
100
agree strongly agree disagree
Series1
;3 5i6.Are you (7(re o- the -o..o7in' -(ci.ities +ro4ided 2y TATAP
TATA insur(nce
,ercent('e
Hes 7"%
@o %%
7"% said yes that they are aware about T$T$ insurance while only %% said that they were not
aware.
;3 5ii6. E1tended 7(rr(nty
,ercent('e
Hes 79%
@o 8%
79% said they were aware about e:tended warranty and 8% said that they did not know about this.
;3 5iii6.True 4(.ue
59
,ercent('e
Hes 7"%
@o %%
7"% said they were aware about true <alue and %% said they were not aware.
;3 5i46.TATA otors -in(nce
,ercent('e
Hes 9!%
@o %!%
9!% said that they were aware about T$T$ ,otors finance and %!% said that they were not aware
of it.
;3 546. Autoc(rd
,ercent('e
Hes "1%
@o 16%
"1% said that they were aware about autocard and 16% said that they were not aware of it.
;3 54i6. Genuine Accessories
,ercent('e
Hes "!%
@o 1!%
"!% said that they were aware of genuine accessories a<ailable and 1!% said they were not aware.
;B. 8h(t is your o4er(.. o+inion (2out TATAP
Choice
,ercent('e
ery bad #%
2ad #%
@either bad nor good #%
4ood 1%
60
ery good 76%
76% said that there o<erall opinion about T$T$ was that it is <ery good while 1% said that it is
good.
; =. Ho7 .i9e.y 7ou.d you reco**end TATAP
Reco**end
,ercent('e
ery Unlikely #%
Unlikely #%
@either Unlikely nor likely #%
?ikely 1#%
ery ?ikely 7#%
7#% people said they would <ery likely recommend T$T$ to other people and 1#% said they would
likely recommend T$T$ to others.
61
S8OT ANAL!SIS
?. S8OT An(.ysis 5T(t( otors Li*ited6
?.1 STRENGTHS
The internationali-ation strategy so far has been to keep local managers in new acBuisitions,
and to only transplant a couple of senior managers from India into the new market. The
benefit is that Tata has been able to e:change e:pertise. For e:ample after the 5aewoo
acBuisition the Indian company leaned work discipline and how to get the final product 'right
first time.'
The company has a strategy in place for the ne:t stage of its e:pansion. @ot only is it
focusing upon new products and acBuisitions, but it also has a programme of intensi<e
management de<elopment in place in order to establish its leaders for tomorrow.
The company has had a successful alliance with Italian mass producer Fiat since %##6. This
has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge
e:change. For e:ample, the Fiat 6alio Style was launched by Tata in %##9, and the companies
ha<e an agreement to build a pick&up targeted at (entral and South $merica.
?.& 8EA:NESSES
The company's passenger car products are based upon 8rd and 1th generation platforms, which put
Tata ,otors ?imited at a disad<antage with competing car manufacturers.
5espite buying the )aguar and ?and .o<er brands /see opportunities below3U Tat
has not got a foothold in the lu:ury car segment in its domestic, Indian market. Is the brand
associated with commercial <ehicles and low&cost passenger cars to the e:tent that it has
isolated itself from lucrati<e segments in a more aspiring Indiab
Cne weakness which is often not recognised is that in +nglish the word 'tat' means rubbish.
=ould the brand sensiti<e 2ritish consumer e<er buy into such a brandb ,aybe not, but they
would buy into Fiat, )aguar and ?and .o<er.
62
?.3 O,,ORTUNITIES
In the summer of %##" Tata ,otor's announced that it had successfully purchased the ?and
.o<er and )aguar brands from Ford ,otors for UE c%.8 million. Two of the =orld's lu:ury
car brand ha<e been added to its portfolio of brands, and will undoubtedly off the company
the chance to market <ehicles in the lu:ury segments.
Tata ,otors ?imited acBuired 5aewoo ,otor's (ommercial <ehicle business in %##1 for
around US5 016 million.
@ano is the cheapest car in the =orld & retailing at little more than a motorbike. =hilst the
=orld is getting ready for greener alternati<es to gas&gu--lers, is the @ano the answer in
terms of concept or brandb Incidentally, the new ?and .o<er and )aguar models will cost up
to "! times more than a standard @anod
The new global track platform is about to be launched from its Eorean /pre<iously 5aewoo3
plant. $gain, at a time when the =orld is looking for en<ironmentally friendly transport
alternati<es, is now the right time to mo<e into this segmentb The answer to this Buestion
/and the one abo<e3 is that new and emerging industrial nations such as India, South Eorea
and (hina will ha<e a thirst for low&cost passenger and commercial <ehicles. These are the
opportunities. >owe<er the company has put in place a <ery proacti<e (orporate Social
.esponsibility /(S.3 committee to address potential strategies that will make is operations
more sustainable.
?.B THREATS
The range of Super ,ilo fuel efficient buses are powered by super&efficient, eco&friendly
engines. The bus has optional organic clutch with booster assist and better air intakes that will
reduce fuel consumption by up to 1#%.
Cther competing car manufacturers ha<e been in the passenger car business for 1#, !# more
years. Therefore Tata ,otors ?imited has to catch up in terms of Buality and lean production.
Sustainability and en<ironmentalism could mean e:tra costs for this low&cost producer. This
could impact its underpinning competiti<e ad<antage. Cb<iously, as Tata globali-es and buys
into other brands this problem could be alle<iated.
63
Since the company has focused upon the commercial and small <ehicle segments, it has left
itself open to competition from o<erseas companies for the emerging Indian lu:ury segments.
For e:ample I(I(I bank and 5aimler(hrysler ha<e in<ested in a new 6une based plant which
will build !### new ,ercedes&2en- per annum. Cther players de<eloping lu:ury cars
targeted at the Indian market include Ford, >onda and Toyota. Infact the entire Indian market
has become a target for other global competitors including ,ahindra and ,ahindra, ,aruti
Udyog, 4eneral ,otors, Ford and others.
.ising prices in the global economy could pose a threat to Tata ,otors ?imited on a couple
of fronts. The price of steel and aluminium is increasing putting pressure on the costs of
production. ,any of Tata's products run on 5iesel fuel which is becoming e:pensi<e globally
and within its traditional home market.
64
CONCLUSION
@. CONCLUSION
Cn an a<erage more than 98% people feel that the prices are affordable whereas 1%% do not agree,
91% belie<e that attracti<e discounts are offered whereas %6% are not satisfied with the discounts
offered. %#% said that the test dri<es are not offered and 1!% said that post sales follow ups are not
done regularly whereas "!% said that they were done regularly but people feel that it is the peopleAs
car as it is satisfactory on all other parametersD knowledgeable sales persons, employees spent
enough time before and during sales, display of merchandise is attracti<e, a<ailability of product,
<ariety of merchandi-e, <ehicle in good condition, prices are affordable, attracti<e discounts are
offered, d`cor of the waiting area is pleasing, responds to complaints Buickly, ser<ice at T$T$
,otors ser<ice station is e:cellent, careful with personal information and is <alue for money . The
o<erall opinion about T$T$ ,otors is <ery good. "6% people agreed that the sales persons are
knowledgeable and 11% strongly disagreed that the sales persons are knowledgeable. 61% people
agreed that the sales persons spent enough
time with them before the sales and 86% strongly agreed with this. 6%% agreed that sales persons
spent enough time with them during the sales, while 81% strongly agreed that the sales persons spent
enough time with them during sales and only 1% disagreed with this. 6#% agreed that the sales
persons spent enough time with them after sales, %6% strongly agreed with this and 11% disagreed
that the sales persons spent enough time with them after sales. 71% agreed that the display of
merchandi-e was attracti<e and 6% strongly agreed that the display of merchandi-e was attracti<e.
71% agreed that the a<ailability of the product was there, !% strongly agreed that the a<ailability
was there while only 1% said they disagreed with this. "9% agreed that there was <arietyGselection of
merchandi-e whereas 9% strongly agreed that enough <ariety was there and 6% disagreed with this.
"%% agreed that the <ehicle was in good condition when deli<ered, 16% strongly agreed with this
whereas only %% disagreed with this. 61% strongly agreed that the prices are affordable, %1% agreed
that the prices are affordable whereas only 1!% said that they neither disagreed nor agreed with this.
!!% agreed that the discounts offered are attracti<e, 81% strongly agreed with this while 11%
disagreed and said that the discounts offered were not attracti<e. "#%agreed that the d`cor of the
65
waiting area was pleasing while %#% strongly agreed that the d`cor of the waiting area was pleasing
91% agreed that the test dri<e was offered to them, 6% strongly agreed that the test dri<e was offered
while %#% disagreed with this. !7% agreed that the post sales follow ups are done regularly, %6%
strongly agreed and 1!%disagreed with this. 1% agreed that the response to complaints is Buick,
1"% strongly agreed, 1%% neither agreed nor disagreed and 6% disagreed with this.
"%% said that the ser<ice at T$T$ ser<ice station is e:cellent, 11% strongly agreed while only 1%
disagreed with this. "!% agreed that yes they were careful with personal information, strongly
agreed with this and "% neither agreed nor disagreed. 71% strongly agreed that all the commitments
were fulfilled and 6% agreed with this. 7"% said yes that they are aware about T$T$ insurance
while only %% said that they were not aware.
66
RECOEDATION > SUGGESTIONS
A. RECOEDATION > SUGGESTIONS
Increase the profit margin during the continuous financial years.
Impro<ing the marketing Strategies.
$nalysis the business strategies of competitors.
,aking the decision to capture the rural market.
,ore test dri<es should be offered.
Should be more particular about 6ost Sales Follow Up as it shows the concern of the
company with the customer.
Should put in more efforts to promote Tata ,otor Finance, $utocard and $ccessories.
6rice of partAs should be reasonable. $nd a<ailable e<ery where.
To increase its <isibility so that different segments of the customer will notice the products of
Tata motors in <aried ways.
67
A,,ENDIK
". A++endi10
;uestionn(ire

Bein' (n estee* custo*er o- TATA otors Ltd. you (re reJuested to t(9e out (
-e7 *inutes (nd -i.. the -o..o7in' ;UESTIONNAIRE0
N(*e0 YYYYYYYYYYYYYYYYYYYYYYY
Address0 QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ 6in (odeeeeeeeeeeeee
Gender0
ale Female
A'e0
2elow1" 1"&%! %6&8! 86&!# !1 and abo<e
Occu+(tion0
Ser<ice 2usiness Student >ousewife
;.16 >ow long ha<e you been associated with T$T$ ,otorsb
eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
;.&.6 >ow would you rate T$T$ ,otors on the following parameterb
(6Stron'.y dis('ree
26Dis('ree
c6Neither ('ree Nor dis('ree
d6('ree
e6Stron'.y ('ree
i6 Enowledgeable sales person
ii6 +mployees spent enough time
with youD
68
before sales
5uring sales
$fter sales
iii6 5isplay of merchandise is
attracti<e
i46 $<ailability of the product
46 arietyGselection of merchandise
4i6 ehicle in good condition
4ii6 6rices are affordable
4iii6$ttracti<e discounts offered
i16 5`cor of the waiting area is
pleasing
16 Cffered a test dri<e
1i6 6ost sales follow ups are done
regularly
1ii6 .esponds to complaints Buickly
1ii6 Ser<ice at ,aruti ser<ice station is
e:cellent
14i6 (areful with personal information
146 $ll the commitments are fulfilled
14i6 alue for money

;.36 $re you aware of the following facilities pro<ided by Tata ,otorsb
FACILITIES !es No
i6 Tata ,otors insurance
ii6 +:tended warranty
iii6 True <alue
i46 Tata finance
46 $utocard
4i6 4enuine accessories
;.B6 =hat is your o<erall opinion about Tata ,otorsb
i6 ery 2ad
ii6 @either 2ad nor 4ood
69
iii6 4ood
i46 ery 4ood
;.=6 >ow likely would you recommend Tata ,otorsb
i6 @ot likely
ii6 @either 2ad nor 4ood
iii6 ery likely
i46 Unlikely
D(te Si'n.

BIBLIOGRA,H!
70
1$. BIBLIOGRA,H!0
Boo9s0
1. Eotler 6hilip, Eeller Ee<in /%##73, ,arketing ,anagement /Thirteenth +dition3
%. Sa:ena .a;an, ,arketing ,anagement, The ,c4raw.>ill (ompany /Third +dition3
8. 2erman, 2erry and )oel r +<ans /Cct& 17793 .etail ,anagementD $ strategic approach "th edition,
+nglewood cliffs @) printcehall
1. (ountry analysis 1779 L $ framework to identify and e<aluate the national business
en<ironmentM >ardward business re<iew.
AGARINES0
$3 CUT?CCE 2USI@+SS /5+(, %##73
23 2USI@+SS ST$@5$.5 /$pril&)uly %#1#3
(3 16AS CF 2USI@+SS $@5 ,$.E+TI@4 /)une %#1#3
53 2USI@+SS TC5$H & 6ick and (hoose
+3 2USI@+SS TC5$H & Tata ,otors to bring )aguar, ?and .o<er to India
INTERNET0
1. Tata ,otors' Cfficial =ebsite
%. =iki & Tata ,otors ?td
8. httpDGGwww.docasi.comGdocG1%%1""##G4rand&6ro;ect&on&@$@C&(ar
1. httpDGGwww.capitaline.com
!. httpDGGwww.tatamotors.comGoureworldGpressereleases.phpbI5P1!"JactionP6ull
6. httpDGGwww.tatamotors.comGoureworldGpressereleases.phpbI5P!##JactionP6ull
9. httpDGGmoney.rediff.comGcompaniesGtata&motors&ltdG1#!1###"Gcash&flow
". htttpDGGwww.moneycontrolGcomGtata&groupGtatamotors
7. httpDGGwww.carwale.comGresearchGcarsGtata
71