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Consumer perception and future potential for TATAS CAR. Submitted To GUJRAT TECHNOLOGICAL UNIVERSITY AHMEDABAD
In partial fulfillment of the requirement for the award of degree of Master Of Business Administrator (MBA)
SUBMITTED BY:-
KRUPA KOTHARI MBA -3rd sem.(morning shift) Roll NO. 40 SESSION (2010-2012)MORNING SHIFT L.J INSTITUTE OF MANAGEMENT STUDIES
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CERTIFICATE
This is to certify that the project A study on consumer perception and future potential for TATA submitted to ANKIT SANGHVI in partial fulfilment of the requirement for the award of Master of Business Administration (MBA) is a bona fide work carried out by KRUPA KOTHARI II SEM, under my supervision and guidance. The project was carried during 2.6.2011 to 15.7.2011 in ASPI CARS PVT LTD.
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DECLARATION
I do hereby declare that the dissertation title CONSUMER PERCEPTION &FUTURE POTENTIAL
FOR TATA MOTORS LTD is work done by me under the supervision of Prof Mr. L.J College of
Management
Studies,
AHMEDABAD and
submitted
to GUJRAT
TECHNOLOGICAL
UNIVERSITY in partial fulfilment of the requirements for the award of degree Of master of business administration....
KRUPA KOTHARI
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ACKNOWLEDGEMENT
In order to make my project I acknowledge a special thanks to all those people without whose supports it would not be possible for me to complet e my project First of all I really tha nkful to my GUJRAT TECHNOLOGICAL UNVERSITY because of t hem I could achieve the target. I express my sincere thanks t o my project guide Prof. ANKIT SIR who had guide to me throughout my project. I would also thankful to the (T AT A MOTORS LTD) for giving me this opportunity t o work on project in AHMEDABAD. I convey my heart full tha nks to Mr. NAMRA PARIKH and GM, DGM & the all staff members of Aspi Car, with their help and corporation. Also I would like to express my inner feeling for a ll the people for co -operating and helping me t hroughout the project. Last but not the least I a m tha nkful to my parents and friends who have pr ovided me with their constant support thr oughout this project.
KRUPA KOTHARI
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PREFACE
The importance of the automobile in our society is without question. As a prime mover of people, the automobile contributes daily to our economic and social systems. This basic form of transportation gives people the freedom and choice to travel farther from their homes to pursue careers, indulge in leisure activities, and act as consumers of a wide variety of goods and services. Increased use of the automobile over the years has resulted in a continual evolution in design to achieve faster more efficient, cleaner, more economical, more reliable, and safer vehicles. This pattern of change continues and is accelerating. Each year innovations resulting from advancing technology and computers appear on new automobile models. The modern automobile is vastly different from the automobile of years ago. Significant changes continue to occur. Automobiles are now designed to produce fewer emissions and less pollution. efficiency. Today, electronic nd computer a
monitoring systems provide a means of checking and controlling emission, while still improving fuel In addition, automotive computers are now used to monitor and control engine
combustion, ignition timing and spark, braking systems, transmissions, suspension, and many other systems. Such monitoring in engine design and vehicle configuration has helped to improve fuel economy, ease of driving, vehicle safety, and control of the vehicle. The increasing sophistication of electronic an computer control systems has led to wider d applications in automobiles, resulting in more efficient and safer operation. The implementation of on-board computers to monitor and control performance and enhanced mechanical systems also results in improved reliability. Each New Year will bring further and more innovative changes in automobile design. Future developments in communications, electronics, materials, manufacturing processes, and energy will have significant effects on the automobile. It is because of that presence of TATA cars on roads and its advanced features, Uniqueness, performance and achievement. I have been attracted to study about CONSUMER PERCEPTION
&FUTURE POTENTIALTO ASPI CARS PVT LTD I find that we are now more aware of the problem,
positive points, achievements, consumer misperception and satisfaction ofTATA MOTERS because of our investigation in this matter. Magazines, books and personal interview etc. helped us in knowing our topic.
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My work stretches of six chapters in which I have analyzed the satisfaction level of consumer and their suggested modifications. I have studied the brief history and background of TATA MOTERS. In conclusion achievements, failures, desired modification and changes have been analysed. For the data and information contained in this project. I have conducted survey research with various consumers in ahmedabad. I made use of secondary data published in Advertising and Marketing Magazines and various other magazine and with help of statistical methods, I arrived at the necessary conclusion. Our is a world where people dont know what they actually want and what they lack and what features they have had with them and so we cannot say that our work is absolutely perfect. Hence, I have this to those who will pursue my work in future and form them I expect many suggestion and correction where necessary so that I may carry this work towards more perfections.
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CONTENTS
Sr. No
1.
Descriptions
Page No.
2.
CHAPTER II
OBJECTIVE OF STUDY SCOPE OF STUDY
5.
6.
7.
Bibliography
8.
Questionnaire
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CHAPTER I
Executive summary Introduction Company profile Core values of TATA Tata group companies Tata motors limited History of TATA motors Direct competitors of TATA motors Company position of TATA motors SWOT analysis of TATA motors ltd. PRICE LIST PEST ANALYSIS PORTERS FIVE FORCE MO
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EXECUTIVE SUMMARY
The project on Consumer perception &future potentia l TATA MOTORS LTD based on financial perfor ma nce a nd cust omer survey.
Tata Motors Limit ed is India's largest automobile company, with consolidat ed revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the t op three in passenger vehicles with winning products in the compact, midsize car a nd utility vehicle segments. The compa ny is the world's fourth largest truck ma nufacturer, and the world's second largest bus ma nufacturer. The company's 24,000 employees are guided by the vision t o be "best in the ma nner in which we operat e best in the products we deliver and best in our value system a nd ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and brea dt h of India. Over 5.9 million Tata vehicles ply on India n roa ds, since the first rolled out in 1954. The compa ny's ma nufacturing base in India is sprea d across Ja mshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pra desh), Pantna gar (Uttarakha nd) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has s t e up an industrial joint ventur e with Fiat Group Automobiles at Ranja ngaon (Maharashtra) to produce both Fiat and Tata cars a nd Fiat powertrains. The compa ny is establishing a new plant at Sa nand (Gujarat). The compa ny's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. The foundation of the compa ny's growth over t he last 50 years is a deep understanding of economic stimuli and cust omer needs, and the ability to translate them int o customer-desired offerings through lea ding edge R&D. With over 3,000 engineers and scientists, the compa ny's Engineering Research Centr e, established in 1966, has
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enabled pioneering technologies and products. The c ompany today has R&D centres in Pune, Ja mshedpur, Lucknow, Dharwa d in India, and in Sout h Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica beca me India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini- truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequentl y launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the r each of thousands of fa milies. The standard version has been priced at Rs.100, 000 (excluding VAT and transportation cost). Objective of project was to identify Marketing strategic in automobile industry, Market perfor ma nce & Market position of compa ny, Satisfaction a mongst the customers of Tata Mot ors. The methodology includes the overall research design, data collection met hod, the field survey and the analysis of data For my survey primar y . data have been used as a questionnair e to collect the data.The secondary data has been collected from the modes such as Maga zines, Books, Newspaper, Data through internet sources.Total sa mple size is 100. The following sa mple size according to area wise which includes 20 at Point of Purchase, 20 Vashi, 20 Gha nsoli, 20 Panvel & 20 Sea Woods A detailed analysis of the compa ny shows that the company has had a strong funda mental as well as a strong mar ket perfor mance over the years. Given the economic and the industry environment (improving outlook for the PC industry) TATA Motors would be a key beneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. On an average more t han 73% people feel that t he pr ices ar e affordable wher eas 12% do not a gr ee, 74% believe that attractive discounts are offered wher eas 26% are not satisfied with the discounts offered.
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Tata motor is one of the best cars manufacturing compa ny in India, customers are satisfied because of affordable price, but the maint enance problem and resale value is too low. These are the two main reasons of customer s dissatisfaction and other reason is not responding to customers complaints quickly especially said by nano customers, that mea ns all the comments ar e not fulfilled properly, and indigo customers says engine perfor ma nce are not good.
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INTRODUCTION
India is an emerging country with huge pot ential. T he domestic economy is now growing at around 9-10% per annum and Indias importance in global ter ms is being reinforced by rapidly rising exports and domestic c onsumption. At a time when numbers of a slowdown and overheating in the Indian economy ha ve started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figur e past t he trillion-dollar (42,00,000 cr or e) mark. The automotive industry is at the center of Indias new global dyna mic. T domestic he market expanding rapidly as incomes rise and consumer credit becomes more widel y available. Manufacturers product lines are being c ontinually expanded, as is the loca l aut omotive ma nufacturing base. Expectation are high t hat India can develop as a global hub for vehicle manufacturers and as an outsourcing cent er that offers the global automotive industry solution high up the automotive value chain. India eyes 25 million automotive jobs. India's GDP is set to double over the next decade In percentage ter ms, the automotive industry's contribution should also double. In dollar ter ms, the sector's contribution is set to quadruple to some $145bn. The automobile industry in India accounts for a business volume of $45 billion and has the potential to grow much faster both through Indian as well as internationa l ma nufacturers who ha ve established huge facilities in the country. With the worlds second largest and fast est-growing population, ther e is no denying Indias potential in bot h economic a nd population ter ms and the effect it will ha ve on the auto industry in the years to come. The country is already off t o a good start, with a well developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers. The implications, market drivers and scope of a future massive Indian vehicle market
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are covered in the India Strategic Market Profile, a brand-new forecast of India n aut omotive and relat ed activity to 2020. Based on Max Pembert o's unique relationa l long-ter m forecasting model, it forecasts car and CV sales, demographics, materials usage, aut o industry employment, and explains their int er- year of healthy growth i n aut o industry. INDUSTRY GROWTH:
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US based consultancy, keystone pr edicts that India will become worlds third largest aut omobile market by 2030. Overall size expected t o exceed 20 million with compounded a nnual growth rate of over 12%.
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COMPANY PROFILE
TATA GROUP
Tata is a rapidly growing business group based in India with significa nt international operations. Revenues in 2007-08 are estimat ed at $62.5 billion (around Rs251, 543 crore), of which 61 per cent is from business outside India. The Group employs around 350,000 people worldwide. The Tata na me has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of t he Tata Gr oup currently encompass seven business sectors: communications and infor mation t echnology, engineer ing, materials, services, ener gy, consumer products and chemicals. The Groups 27 publicly listed ent erprises have a combined mar ket capitalization of some $60 billion, a mong the highest a mong Indian business houses, and a shareholder base of 3.2 million. The major compa nies in the Group include Tata Steel, Tata Motors, Tata Consulta ncy S er vices (TCS), Tata Power, Tata Chemicals, Tata Tea, India n Hot els and Tata Communications The Groups major companies are beginning to be counted globally. Tata Steel beca me the sixth largest st eel maker in the world after it acquir ed Corus. Tata Motors is a mong the top five commercial vehicle manufacturers in the world and has recently acquire d Jaguar and Land Rover. TCS is a lea ding global software compa ny, with delivery centres in the US, UK, Hungary, Brazil, Urugua y and China, besides India. Tata Tea is the second largest branded tea company in the world, thr ough its UK -based subsidiary
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Tetley. Tata Chemicals is the worlds second largest ma nufactur er of soda ash. Tata Communications is one of the worlds largest wholesale voice carriers. In tandem wit h the increasing internationa l footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK-based consultancy fir m, recently valued the Tata brand at $11.4 billion and ranked it 57th a mongst t he Top 100 brands in t he world. Business week ranked the Group sixth amongst the Worlds Most Innovative Companies. And the Reputation Institute, USA, recently rated it as the Worlds Sixth Most Reputed Fir m. Founded by Ja msetji Tata in 1868, the Tata Groups early years were inspired by the spirit of nationalism. The Group pioneer ed several industries of national importance in India: steel, power, hospitality and airlines. In mor e recent times, the Tata Groups pioneering spirit has been showcased by compa nies like Tata Consultancy Services, Indias first softwar e company, which pioneer ed the international delivery model, and Tata Motors, which ma de Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, for commer cial launch by end of 2008. The Tata Group has always believed in returning wealth t o the societ y it serves. Two thirds of the equity of Tata Sons, the Tata Groups promot er company, is held by phila nthropic trusts which have creat ed national institutions in science a nd t echnology, medical research, social studies and the perfor ming arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around t heir industrial units. The combined development related expenditure of t he Trusts and the compa nies a mounts to around 4 per cent of the Groups net profits. Going forwar d, the Group is focusing on new t echnologies and innovation to drive its business in India and internationally. The Nano car is one exa mple, as is the Eka
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supercomputer (developed by another Tata company), which in 2008 is ranked the worlds fourth fast est. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its shareholders, its employees and wider society.
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Systems for commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering, TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics Division, Taco Kunstofft echnik, TACO MobiApps Telemaics, TACO Supply Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Yaza ki Auto Comp, TC Springs, Technical Sta mpings Automotive. Tata Motors: Subsidiaries /Associates/ Joint Ventures: Concorde Motors, HV Axels, HV
Transmissions, Nita Compa ny, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo Commercial Vehicles Compa ny, Tata Engineering S ervices, Tata Precision Industries, Tata Technologies, Telco construction Equipment. Engineering S ervices Tata Projects, TCE Consulting Engineers, Voltas
Engineering Products TAL Manufacturing S olutions, Telco Construction Equipment Compa ny, TRF
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METALS: TATA STEEL Subsidiaries /Associat es/ Joint Ventures: Hooghly Met Coke and Power Company, Ja mshedpur Injection Powder (Ja mipol), Ja mshedpur Utility and Service Compa ny Limited (JUSCO), Lanka Special Steel, Mjunction S er ves, NatSteel, Sila Eastern Company, Tata Blue Scope Steel, Tata Metallic, Tata Pigments, Tata Refractories, Tata Ryerson, Tata Sponge Iron, Tata steel (Thailand), Tata Steel KZN, Tayo Rolls, The Dha mra Port Compa ny, The India n Steel a nd Wire Products, The Tinplate Company of India, Tm International Logistics, TRF. ENERGY: POWER Tata BP Solar India Tata Power Subsidiaries /Associates/ Joint Ventur es: Tata Cera mics, Tata Power Trading, Nort h Delhi Power Limited OIL AND GAS Tata Petrodyne CHEMICALS: Rallis India Tata Pigments Tata Pigments PHARMA Advinus Therapeutics SERIVES: HOTELS AND REALTY
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Indian Hot els (Taj Group) Subsidiaries /Associates/ Joint Ventur es: Taj Air, Roots Corporation (Ginger Hotels) THDC Tata Realty and Infrastructure FINANCIAL SERVICES Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management, Tata Capital, Tata Fina ncial Services, Tata Investment Corporation OTHER SERVICES Tata Quality Management Services, Tata Services, Tata Strategic Management Group. CONSUMER PRODUCTS: Infiniti Retail Tata Tea Subsidiaries /Associates/ Joint Ventur es: Tata Coffee, Tata Tetley, Tata Tea Inc Tata Cera mics Tata McGraw Hill Publishing Compa ny Titan Industries Trent INFORMATION SYSTEMS AND COMMUNICATIONS: Nelito Systems Tata Consultancy Services Subsidiaries /Associates/ Joint Ventur es: APONLINE, Airline Fina ncial Support
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Services, Aviation Softwar e Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corpor ation, WTI Adva nce Technology. Tata Elxsi SerWizSol Tata Interactive Syst ems Tata Technologies COMMUNICATIONS Tata Sky Tata Teleservices Subsidiaries /Associates/ Joint Ventur es: Tata Teleservices (Maharashtra) Tata Communication Tata Net
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million shar es or 1.36% of Tata steel for RS. 486 crores to Tata Sons, the holding compa ny of whole Tata gr oup fir ms. "The Compa ny aims to monetize a part of its funds through a phased divest ment of certain invest ments preferably as int er-group sales wher ever possible at current market prices in the coming six t o eight months," the money that will be r eleased from these invest ments will become a part of the capital to be lifted for repayment of the bridging loa n taken for the Jaguar-Land Rover acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loa n of 3 billion in March from a consortium of ba nks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28th may its share value has fallen more tha n 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at 15, 049.86 points.
The Analysts say that, this is a strategic move taken by Tata Motors because ti is allowing the company to ma ke a lot of profit even when the mar ket is in the fina ncial pressur e allows Tata sons to raise its wager in group compa nies. If the compa ny will follow the above mentioned trends t hen possibly it can raise its finances in a low liquidity and high int er est rate set-up.
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INDUSTRY OUTLOOK The Indian Automobile Industry enjoys the a dvanta ge of low cost base, high skilled labour, strong ancillary network coupled wit h Gover nments support by wa y of concessional excise dut y of 16% for small cars, ban on overloa ding and also significant invest ments proposed for removing infrastructure bottlenecks. The CV industry is directly related to the economic growth and development. The growt h in dema nd for CVs is directly r elated to the IIP index and any upsurge in economic activities will call for mor e cargo movement in the economy. The domestic CV market grew at a CAGR of 26.7% during the last 6 years. In FY07, the CV segment registered a growth of 32.2% due t o Supreme Courts ban on over loading trucks. However, we believe that this is a one-time dema nd a nd the CV segment ma y not witness such kind of growt h repeatedly. Ther e is a regulation that restricts the movement of vehicles above certain age (15 years in National Capital Region and 8 years in Mumbai). Though the rule is not being followed strictly at pr esent, in futur e if this rule is implement ed strictly it will result in huge replacement dema nd. With the Indian economy expect ed to grow at 8.5% to 9% in coming years, we expect the dema nd for CVs t o be fairly decent except for t he fact that the industry is currently experiencing a corr ection due to sharp spurt in dema nd in the previous years. The CV industry witnessed a cha nge in dema nd dyna mics in last few years. The dema nd for LCVs in the <=3.5 tonnes segment is rising at the cost of dema nd in 5 to 7.5 tonnes cat egory, while dema nd in 7.5 to 12 tonnes segment and 16.2 to 25 tonnes segment is booming at the cost of dema nd in 12 to 16.2 tonnes segment. Dema nd for trailers of >35.2 tonnes is witnessing a surge while dema nd for semi trailers in 26.4 to 35.2 tonnes segment is suffering.
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This structural shift in dema nd dyna mics is due to t he evolution of Hub & Spoke model of distribution, which is now adopted by transportation players because of improved road infrastructur e and also the ban on trucks in ma ny cities by the authorities t o tackle the traffic congestion issues. According t o the Hub & Spoke model, HCVs plying over the highwa ys to transport goods to different states and districts.
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Tata Motors launches its first truck in collaboration with Mercedes-Benz. Tata Mot ors is a part of the Tata and Sons Group, founded by Ja mshedji Nussarwanji Tata and J. Baker. The compa ny was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercia l vehicle sector in 1954 after for ming a joint venture with Daimler-Benz AG of Ger many.
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2. TATA Indica
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3. TATA Brads DAEWOO ACQUISITIO Tata Novus is one of the best selling commercial trucks in South Kor ea. Wit h the success of Tata Indica, Tata Motors aimed to increa se its presence worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The r easons behind t he acquisition were: Companys global plans to reduce domestic exposur e. The domestic commercial vehicle mar ket is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposur e of ~94% in t he MHCV segment and ~84% in the light commer cial vehicle (LCV) segment. Since t he domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is incr easingly looking at the international markets. The compa ny plans t o diversify into various mar kets acr oss the world in both MHCV as well as LCV segments To expand the product portfolio Tata Motors recentl y introduced the 25MT GVW Tata Novus from Da ewoos (South Korea) (TDCV) platfor m. Tata plans to leverage on the strong pr esence of TDCV in the heavy -tonna ge range and introduce products in India at an appropriate time. This was mainly t o cater to the international market and also to cater to the domestic market where a major improvement in t he Roa d infrastructure was done thr ough the National Highwa y Development Project. Tata remains India's largest hea vy commercial vehicle ma nufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle ma nufacturer in South Korea. Tata Motors has jointly worked with Tata Da ewoo to develop trucks such as Novus and World Truck and buses na mely, GloBus a nd StarBus.
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HISPANO CARROCERA Hispano Divo at the 2008 FIAA in Madrid In 2005, sensing the huge opportunity in the fully built bus segment, Tata Mot ors beca me acquir ed 21% stake in Hispano Carrocera SA, Aragonese bus ma nufacturing company giving it controlling rights of the compa ny. JAGUAR CARS AND LAND ROVER After the acquisition of British Ja guar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchest er brand names Tata Motors beca me a major player in the int ernational aut omobile market. On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. The sale was complet ed on 2 June 2008 Tata has gained the rights to the Daimler, Lanchester, and Rover brand na mes. In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 pla nts in UK. The key acquisition would be of the int ellectual propert y rights relat ed to the technologies.
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JOINT VENTURES
Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport In 2005, sensing the huge opportunit y in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and introduced its high end int er-city buses in the country. Tata Mot ors has also for med a 51:49 joint venture with Marcopolo S.A., a Brazil based global lea der, lead by Brian Behrle, in bus body building. This joint venture is to ma nufacture and assemble fully-built buses and coac hes target ed at developing mass rapid transportation syst ems. The joint ventur e will absorb technology and expertise in chassis and aggregates from Tata Mot ors, and Marcopolo will provide know-how in processes a nd syst ems for bodybuilding and bus body design.
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IMPORTANT DEVELOPMENTS
In 2005 & 06 Tata Ace was India's first mini truck Tata Ace, India's first indigenously developed sub-one ton mini-truck was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace ha d cha nged the dyna mics of the light commercia l vehicle (LCV) mar ket in t he country by cr eating a new market segment ter med the small commercial veh icle (SCV) segment. Ace rapidly emer ged as the first choice for transporters and single truck owners for city a nd rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent t o 28,537 units due to the rising dema nd for Ace. The Ace was built with a loa d body produced by Auto line Industries. By 2005; Auto line was producing 300 loa d bodies per day for Tata Motors. Ace is still one of the number ma kers for TML; TML sold the 2,00,000th Ace in August 2008, within 4 years since its introduction.
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Tata Ace has also been exported to several Europea n, S outh America n and African countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division. In 2007 In 2007, Tata Mot ors launched several concept models and future designs of existing models. It also for med joint ventures wit h various local companies in several countries to assemble Tata cars. Tata Motors launched a re -designed version of Tata Xenon TL during Motor Show Bologna which would be assembled in Thailand and Argentina. A pick-up varia nt of Tata Sumo was also launched under the progra m 'Global Pick -Up'. The compa ny plans to launch the new pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegant e concept car during the Geneva Auto Show. Tata Motors also for med a joint venture with Fiat and gained access to Fiats diesel engine technology. Tata Motors is looking to ext end its relationship with Fiat and Iveco to other segments like t he 'Global Pick-Up' progra m. The launch of the 'Global PickUp' will mar k the entry of the company into developed markets like Europe and the Unit ed States. The project was initially collaboration bet ween Tata Motors an its d subsidiary Tata Daewoo Commercial Vehicles, but later Tata Mot ors decided to work with Iveco as Daewoos design was not in sync with the needs of sophisticated Europea n customers. The compa ny has for med a joint venture with Thailands Thonburi Compa ny, an independent auto assembler, in which Tata Motors will hold a 70% stake.
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Tata One CAT Motor Development International of Luxembour g has developed the world's first prototype of a compr essed air car, na med One CAT. In 2007, MDI owner Guy Negre was reported to have "the backing of Tata". It has air tanks that ca n be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compr essor, whic h would fill the tanks in 3 minut es. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town, but "the compressed air driving the pistons can be boosted by a fuel burner". One CAT is a five seat vehicle with a 200-litre (7. 1 cu ft) trunk. With full tanks it will run at 100 km/ h (62 mph) for 90 kilometr es (56 mi) range in urban cycle. It is actually a dual fuel car but it is more efficient than any present Hybrid cars.
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IN 2009 AND ONWARDS Electric vehicles Tata Mot ors unveiled the electric versions of passenger car Tata Indica and commercia l vehicle Tata Ace. Bot h run on lithium batteries. The compa ny has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing t he price. The vehicle would be launched in Norway in 2009. Tata Motors' UK subsidiary, Tata Motors Europea n Technical Centre, has bought a 50.3% holding in electric vehicle technology fir m Miljbil Grenland/Innovasjon of Norwa y for US$1.93 M, which specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in Europe next year.
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GLOBAL OPERATIONS
Tata Motors has been aggr essively acquiring for eign brands to incr ease its global presence. Tata Motors has operations in the UK, South Kor ea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising t he two iconic British brands that was acquired in 2008. Tata Motors has also acquir ed from Ford the rights to three other brand na mes: Dai mler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Compa ny, South Koreas second largest truck ma ker. The rechristened Tata Da ewoo Commercial Vehicles Company has launched several new products in the Kor ean market, while also exporting these products to several interna tional markets. Toda y two -thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquir ed a 21% stake in Hispano Carrocera, a reput ed Spanish bus and coach ma nufacturer, giving it controlling r ights of the company. Hispanos presence is being expa nded in ot her markets. On Tata's journey to ma ke an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models wer e jointly developed with its subsidiaries Tata Da ewoo and Hispano Carrocera. In Ma y, 2009 Tata unveiled the Tata Worl d Truck ra nge jointly developed with Tata Da ewoo. They will debut in S outh Kor ea, South Africa, the SAARCcountries and the Middle-East by the end of 2009. In 2006, it for med a joint ventur e with the, Brazil-based Marcopolo, a global lea der in body-building for buses and coaches t o ma nufacture fully-built buses and coaches for India and select international mar kets. Tata Motors has expanded its production and assembly operations to several ot her countries including S outh Korea, Thailand, South Africa and Argentina and is pla nning to set up plants in Turkey, Indonesia and East er n Europe. Tata also franchisee/joint ventur e assembly operations in Kenya, Bangla desh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries ac ross 4 continents. Though Tata is present in ma ny counties it has only ma naged to create a large consumer base in the India n Subcontinent na mely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Afr ica.
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The Gover nment of India a nnounced an aut omobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car fir ms to invest at least US$50 million in equity if they wished to set up ma nufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit t o a schedule for incr easing the share of locally ma de parts in their cars. Mer e car assembling operations wer e notwelcomed. An India n cabinet panel will soon consider a new automobile policy that aims to set fresh invest ment guidelines for foreign fir ms wishing t o ma nufacture vehicles in the country. Invest ments in ma king auto parts by a foreign vehicle maker will a lso be considered a part of the minimum foreign invest ment ma de by it in an auto -ma king subsidiary in India. The move is aimed at helping India emer ge as a hub for global ma nufacturing and sourcing for auto parts.The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies adopt ed by Gover nment will increase competition in domestic market, motivate ma ny for eign commercial vehicle ma nufactures to set up shops in India, whom will ma ke India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growt h negatively.
The purchase of Ja guar Cars is expected to help give Tata Motors a foothold in Europea n a nd American markets.
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With
the
unveiling
of
Tata Motor
Show, Tata Motors revealed its intention to ent er the seda n and sports car markets.
Tata Pri ma The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international seda n market. The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has and to expanded its production operations assembl y other
several
countries including South Korea, Thaila nd, South Africa and Argentina a nd is planning to set up pla nts in Turkey, Indonesia and Eastern Europe.
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MILESTONES 1945 Tata Engineering and Locomotive Co. Ltd. locomotives and other engineering products. 1948 Stea m road roller introduced in collaboration with Marshall Sons (UK). 1954 Collaboration with Daimler Benz AG, West Ger ma ny, for ma nufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract. 1959 Research and Development Centre set up at Ja mshedpur. 1977 First commercial vehicle manufactured in Pune. 1983 Manufacture of Hea vy Commercial Vehicle commences. 1985 First hydraulic exca vator produced with Hitachi collaboration. was established to ma nufactur e
1986 Production of first light commercial vehicle, Tata 407, indigenously designed, followed by Tata 608. 1991 Launch of the 1st indigenous passenger car Tata Sierra. One milliont h vehicle rolled out. 1994 Launch of Tata Sumo - the multi utility vehicle. 1995 Mercedes Benz car E220 launched.
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1996 Tata Sumo deluxe launched. 1997 Tata Sierra Turbo launched. 1998 Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicles rolled out. Indica, India's first fully indigenous passenger car launched.
2001 Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of the Tata Safari EX 2002 2,00,000th Indica rolled out. Launch of the Tata Sumo'+' Series Launch of the Tata Indigo. Tata Engineering signed a product agr eement with MG Rover of the UK. 2003 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. 3 millionth vehicles produced. First Cit y Rover rolled out
2004 Tata Motors and Da ewoo Commercial Vehicle Co. Lt d. sign invest ment agr eement and completes acquisition of Daewoo Commercial Vehicle Company
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Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy dut y truck NOVUS, in Kor ea Sumo Victa launched Indigo Marina launched Tata Motors lists on t he NYSE 2005 Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune The Tata Xover unveiled at the 75th Geneva Motor Show
Branded buses and coaches - Starbus and Globus - la unched Tata Ace, India's first mini truck launched The power packed Safari Dicor is launched Tata Motors launches Indica V2 Turbo Diesel. One milliont h passenger car produced and sold Inauguration of new factory at Ja mshedpur for Novus Launch of Tata Novus Launch of Novus range of medium trucks in Korea, by Tata Daewoo Commercia l Vehicle Co. (TDCV) 2006 Tata Motors vehicle sales in India cross four million mar k Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors first plant for small car to come up in West Bengal Tata Motors and Fiat Group announce three additiona l cooperation agreements
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2007 Construction of S mall Car pla nt at Singur, West Bengal, begins on Januar y 21 New 2007 Indica V2 range is launched Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), announce for mation of a joint ventur e compa ny in Thailand to manufacture, assemble and market pickup trucks. Roll out of 100,000th Ace Tata-Fiat pla nt at Ranjanga on inaugurated Launch of a new Upgra ded range of its entry level utility vehicle offering, the Tata Spacio. Launch of Magic, a comfortable, safe, four-wheeler public transportation mode, developed on the Ace platfor m Launch of Winger, Indias only maxi-va n Fiat Group and Tata Motors announce establishment of Joint Ventur e in India Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level utility vehicle, the Sumo Spacio Tata Motors launches Indica V2 Turbo with dual airbags and ABS Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Dir ect Injection Common Rail (DICOR) engine. Rollout of the one milliont h passenger car off the Indica platfor m. 2008 Latest common rail diesel offering- the Indica V2 DICOR, launched. Indigo CS (Compact Sedan), worlds first sub four-metre seda n, launched. Launch of the new Sumo -- Sumo Grande, which combines the looks of a n SUV with the comforts of a fa mily car.
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.Xenon, 1-tonne pick-up truck, launched in Thaila nd. Tata Motors signs definitive agreement with For d Motor Company to purchase Jaguar and Land Rover. Tata Motors complet es acquisition of Jaguar Land Rover. Tata Motors introduces new Super Milo ra nge of buses. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III Commonwealth Youth Ga mes Pune 2008. Indica Vista the second generation Indica, is launched. Tata Motors launches passenger cars and the new pic k-up in D.R. Congo. 2009 Tata Na no is launched. Tata indica vista is launched. Tata indigo manza is launched.
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POLE POSITION June09 June 10 Maruti Tata Motors Hyundai M&M* GM India Ford India Toyota Kirloskar Honda Siel Fiat India SkodaAuto India Total 61,773 17,039 23,016 18,154 4,492 1,982 4,367 5,048 2,474 1,145 139,490 72,812 27,811 27,366 17,573 9,539 7,269 6,180 4,595 2,137 1,638 176,920 Growth (%) 17.9 63.2 18.9 -3.2 112.0 267.0 42.0 -8.9 -13.6 43.0 26.8
Others are mor e sceptical of a Tata lead. While Na no numbers are the pr e sold orders and the compa ny is only accelerating the deliveries from its new plant, we need to wait and watch for at least a quarter to see if it is sustainable. Moreover, Tatas wil need l mor e products in the passenger car category to rema in ahead of Hyundai in the long run, said Rakesh Batra, national hea d (automotive practice), Ernst & Young. More, as Hyundai would be launching a small sub-Santro car, whose date of launch has not been disclosed. Buoyed by a spurt in dema nd, t he overall passenger vehicles market continued its steady growth, with sales up by 26.8 per cent in the mont h. As many as 176,920 units wer e sold by lea ding auto companies (see chart). Maruti Suzuki continu to be in the ed top spot, selling 72,812 units, much a head of the c ompetition, a gr owth of 17.9 per cent. The growt h in June is extremely high as you must remember the base was very
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high last year in June, said R C Bhargava, chair ma n of Maruti Suzuki. The
funda mentals of the economy are good and dema nd is picking up on the back of new models. The industry is expecting an annual growth of 12 per cent in 2010-11. Many of the new car models ha ve helped their compa nies to show good numbers. GM India saw its sales go up 112 per cent in June, tha nks to growing dema nd for its recently launched Beat, which sold 3,415 units. For d India has a thr ee -mont h waiting list for its small car, the Figo.
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With the Indigo getting rather long in the tooth in the face of more modern competition, Tata Motors has finally launched a replacement for the car. Despite a few facelifts post its 2002 launch, not to mention a garageful of variants over the years, Tata did need a new c ar desperately if it was to stay competitive in the already overcrowded C segment. Design: The Indigo Manza is based on the Indica Vista's platform. The sedan retains the Vista family look, however the crisp lines and the chrome inserts on the bumpers and chromeplating on the waistline adds to the look of the Manza. The more prominent hood strake, three-barrel headlamps and the new trapezium -shaped grille on the bumper add to the stance of the Manza. The Manza's silhouette is derived from the Vista along with stretched overhang at the rear for more boot space.The side indicators, like the Vista are placed in between the mirrors and the A-Pillar (known as the cheater panel); and the larger greenhouse shows modern styling. The rear end of the Manza is chunky and lacks appeal with the combination of the wedge-shaped tail lamps and chrome strip on the bumper and boot. Interiors:
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One may expect that the Manza will retain the Vista's interior styling and space, not to mention the plastic quality and noise insula tion. However, step into a Manza and your view will change. The Manza and Vista both had different design teams and the interiors of both cars are completely different. The Manza has ergonomically designed dual -tone interiors with ample room. The plastic quality is much better than older Tata vehicles and with no similarity to the Vista. The car sports a white-backlit four-dial instrument cluster, wherein the tachometer needle's backlit changes from white to red at higher revs; the steering wheel has audio controls; an integrated six-speaker 2DIN audio system that offers good sound quality and with features like USB and auxillary inputs, Bluetooth with a Number pad (which we found difficult to pair with our mobile phone) and digital driver information system . The driver's seat has height adjustment with lumbar support and a tilt -adjustable steering which makes fine-tuning your driving position easy. The car has good front visibility at its front due to slimmer A-pillars, however due to the higher bootlid and thicker C-pillar, visibility at the rear is reduced. The outside rear view mirrors are small and therefore visibility through them has reduced. The Manza has been engineered well for space and the engineers have utilized every bit of the space like the under-seat storage. Jump to the second row of seats and you will find ample space. The boot of the Manza has a storage volume of 460 litres, which Tata again claims is best in class. Engine, Transmission and Fuel Efficiency: The 1.4-litre SAFIRE (petrol) and 1.3-litre Quadrajet (diesel) powerplants are available as engine options for the Manza. The engines have been borrowed from Fiat's powerplant stable and the same engines are used to run the Fiat Linea. For the Manza, Tata has remapped the engine and redesigned the gear ratios. The 16-valve 1.3-litre DOHC Quadrajet engine churns out 90bhp (5bhp more than the Fiat Linea) and a torque of 200Nm in a range of 1750 -3000rpm. Slip in behind the wheel and you won't find much of a difference between the Linea m ultijet and the Quadrajet. The 1.4 litre double overhead cam SAFIRE produces 90bhp like the Linea's FIRE and similar torque of 116Nm@4750rpm. This Fiat engine has been designed for maximum efficiency. The Manza's throttle is controlled by Electronic Thrott le Control (ETC) on both its cars, which makes the accelerator pedal very light reducing driving fatigue. However, passionate drivers will like the pedal to be a little harder because the ultra -light throttle pedal feels dead and reduces the confidence to dive into a turn, however, the car handles well if once used to the right-most pedal. The Indigo Manza Quadrajet has a fairly well calculated gear ratios, with the first three lower gears being short and the fourth and the fifth being tall gears. In our te sts, the Indigo Manza Quadrajet clocked 6.4 seconds from 30-50kph in the third gear and clocked 50 70kph in 14.0 seconds. For fuel efficiency lovers, th
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The Indica was the first passenger car from Tata Motors. When first launched, the Indica prompted many complaints from early purchasers, who claimed that the vehicle did not deliver either the power or the mileage promised by the company. In response to the customer complaints, Tata Motors re-engineered the internals of the car and launched it as Indica V2 (version 2), which solved most of the complaints and emerged as one of the most sought after cars in the Indian automobile industry. The More car per car motto of the company did catch up after this. Interiors The interiors of the car are good, but the plastic used could need improvement. The fun part about the Indica is that it has ample space for the driver as well as the passenger. The seating is comfortable and though the car does not have steering adjustmen t at all, one doesnt feel the need for it. There is useful storage place inside, with a coin holder and also pockets on either side of the drivers seat. The same storage space though is not present at the passengers seat. For a car thats priced at 4.3 0 lakh it has all the facilities. Drivetrain The Indica pleads its cause for fuel efficiency by tossing 5PS of power overboard while pumping up the torque to 122Nm. More power may be on top of the wish list of many hot prods; but the best part of one bi llion folk would much rather nurse each rupee further down the road. On the move, the 5PS that's trotted off from under the hood is hardly missed, whether on the highway or city. While the dash from 30 -70 is a reasonable 8.8s, the roll -on figures from the higher gears seemed slow; the gearing now aimed at extracting better mileage figures. With the introduction of the Quadrajet under the Vista hood, Tatas have made a significant
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change in the way the car would ride. The petrol -driven models of Tata Indica Vista are powered by 1.2L CVCP Safire engine, which produces a maximum power of 65 bhp 5500 rpm and torque of 96 Nm @ 3000 rpm. The two diesel variants of Tata Indica Vista are 1.4L turbocharged inter-cooled TDI engine and 1.3L Quadrajet Common Rail diesel engine. With 71 bhp @ 4500 rpm of power, the TDI engine delivers a maximum torque of 135 Nm @ 2500 rpm. The Quadrajet engine delivers a higher torque, of 190 Nm @ 1750 rpm, and churns out a power of 75 bhp @ 4000 rpm. All the engines of Tata Indica Vista have fivespeed manual transmission. Handling & Safety In the city, there is no lack of poke. The Indica trundles through the traffic in third at 1500 rpm without a fuss. Downshifts are no longer a bother as the gearshift quality has been upped with each version of the Indica. The gearshift feels smooth, though some of the sogginess remains. Sudden overtaking manoeuvres can also be attempted and executed with gusto. However, the handling remains wishy -washy; the rear slides out at the hint of a slalom style manoeuvre and the steering does little to inspire confidence in pushing the car hard. The steering is well damped at low speeds, but lacks feedback and remains a little sluggish at high speeds. Tata Motors' attempted part remedy for the weak -kneed handling are lower profile 165/60 R13 Goodyear GPS2's. The low -profile tyres limit the car's rolling tendency by a certain degree. The Airbags and ABS are now available in the Aura + segment of cars. The only thing that the Indica misses dearly are the alloy wh eels. Overall Evaluation Aqua, Terra and Aura are the three variants of Tata Indica Vista. Each of these three variants is powered by a different engine - TDI, Safire, and Quadrajet. Tata Indica Vista is available in a variety of vibrant colors, includin g cavern grey, infinity Black, Noble Blue, Arctic Silver, Solar Orange, Marine Silver and Gala Red. The variants of the automobile are priced between Rs 3.49 lakhs and Rs. 4.88 lakhs. The car is roomy and is amazing to ride. The only thing that upsets its users is the kind of plastic used. The company has tried to do something about it and hopefully they will succeed in years to come.
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The Indica was the first passenger car from Tata Motors. When first launched, the Indica prompted many complaints from early purchasers, who claimed that the vehicle did not deliver either the power or the mileage promised by the company. In response to the customer complaints, Tata Motors re-engineered the internals of the car and launched it as Indica V2 (version 2), which solved most of the complaints and emerged as one of the most sought after cars in the Indian automobile industry. The More car per car motto of the company did catch up after this.
Interiors
The interiors of the car are good, but the plastic used could need improvement. The fun part about the Indica is that it has ample space for the driver as well as the passenger. The seating is comfortable and though the car does not have steering adjustment at all, one doesnt feel the need for it. There is useful storage place inside, with a coin holder and also pockets on either side of the drivers seat. The same storage space though is not present at the passengers seat. For a car thats priced at 4.30 lakh it has all the facilities.
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The Indica pleads its cause for fuel efficiency by tossing 5PS of power overboard while pumping up the torque to 122Nm. More power may be on top of the wish list of many hot-prods; but the best part of one billion folk would much rather nurse each rupee further down the road. On the move, the 5PS that's trotted off from under the hood is hardly missed, whether on the highway or city. While the dash from 30 -70 is a reasonable 8.8s, the roll-on figures from the higher gears seemed slow; the gearing now aimed at extracting better mileage figures.
With the introduction of the Quadrajet under the Vista hood, Tatas have made a significant change in the way the car would ride. The petrol -driven models of
TATA ARIA
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TATA NANO
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a30 Tonne Tractor Trailer; Fuel Efficient M&HCV Truck and Busses Powered by Companys Euro 1 Compliant 697 Engines; a Cost Effective 11 Tonnes Vehicle in both bus and truck version to meet the growing demand in this segment; and a Fur Tonnes LCV fitted with an internally developed Turbo charged Engine.
global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low -cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo 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 10%. Threats: Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of qualty and lean production. i Sustainability and environmentalism could mean extra costs for this low -cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this problem could be alleviated. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pu ne-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.
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A brief Information about the product : The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 78mpg on the highway and around 92 in the city. It was first presented at the 9th annualAuto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. Nano had a commercial launch on March 23, 2009 and, a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car will begin in July 2009, with a starting price of Rs 115,000 (rupees), which is approximately equal to UK1,467 or US$2,421 as of June 2009. This is cheaper than theMaruti 800, its main competitor and next cheapest Indian car priced at 184,641 Rupees. Tata had sought to produce the least expensive production car in the world aiming for a starting price of Rs.100,000 (approximately US$2,000 in June 2009).
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BARRIERS TO ENTRY
y Time and cost of entry Time is most essential thing while launching a product in any market. The launch of the NANO is quite viable as the demand of the small
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car is on the rise in the market. By the cost of the entry we mean the initial capital required to set up a new firm is very high, it makes the chances of the chances of new entrants are very less.
y Knowledge and Technology - Ideas and Knowledge that provides competitive advantage over others when patented, preventing others from using it and thus createsbarrier to entry. The TATA motors have great knowledge/ experience in the automobile industry and has renowned technological advantage because of the recent acquisition and mergers. y Product Differentiation and Cost Advantage The new product has to be different and attractive to be accepted by the customers. Attractiveness can be measured in the terms of the features , price etc. At this level the price of the NANO car was one thing that is attracting customers. And above all this the image , trust the name TATA carries with it. y Government Policy and Expected Retaliation - Although government's job is to preserve free competitive market, it restricts competition through regulations and restrictions. The government tried to promote the TATA Motors to start a plant by providing land and tax rebates. But the unexpected retaliation by the local people surface in the setting up of the plant which costed the company a lot. y Access to Distribution Channels When a new product a launched a well developed distribution is must for its success. The TATA motors had a advantage of well established distribution channel across the world.
BUYERS
y Switching Costs - If switching to another product is simple and cheap the customers does not think much before doing it. In case of NANO car the switching cost from bike to car is too high. Thus increasing the demand of the car many fold. y Number of customers/ Volume of sales - If there are few buyers then they are able to dictate the terms. They pull down the cost by Bargaining. The bargaining
power of buyer is high as there are lot of choice available to the buyer and the service do not vary from one manufacturer to the other. They force the manufactures to improve the quality. All this can be clearly seen in the case of NANO car the price tag at
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which it has been offered or the quality of the NANO car no compromises has been done at any front. y Brand Image - The brand image of the TATA and the segmentin which the NANO has been the most attractive thing in the entire package.
SUPPLIERS
y Number and Size of Suppliers A company to manufacture its products requires raw material, labor etc. If there are few suppliers providing material essential to make a product then they can set the price high to capture more profit.Powerful suppliers can squeeze industry profitability to great extend. In case of NANO the supplier are limited and the size of the suppliers are big enough to bring about the controlling power in the price of the car. The NANO car has more than 128 suppliers in all and the major porton i of the building cost of the car is the parts supplied by the suppliers. y Unique Service / Product - Suppliers products have few substitutes. Supplier industry is dominated by a few firms. The some parts of the NANO car are obtain from the supplier who them are big enough and limited substitutes are available against them. So the entire production line depends upon them only. y Ability to substitute - Suppliers products have high switching costs. In many case even when substitute are available its not that easy to opt for substitute as the next product in the assembly line depends upon it. If the change in the any part is brought about the long list of depended parts also have to be changed , which in most cases is not feasible to do.
SUBSTITUTES
y Price band - The threat that consumer will switch to a substitute product if there has been an increase in price of the product or there has been a decrease in price
of the substitute product. If the price of the NANO car will increase the main expected customers ie the one switching from bike to car will not move to car and will remain in the bike only. Thus the price is kept checked in this manner.
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y Substitutes performance - The performance of the substitute sector will also play a important role in the success of the NANO car. If the price of the Bike segment increases or the price band of the small segment fall , it will have effect on the quantity required in the market. Its just on the price but also the features and the other services associated or it may be the status symbol story. The success of the electric car segment with player like REVA can also effect the demand of the NANO. y Buyers willingness Products with improving price/performance tradeoffs relative to present industry products. It will determine the willingness of the buyer to but the NANO car. The willingness of the customers to go forward try the new product in the market ie NANO . They might be willing to go for the test products like Maruti 800 , Santro etc.
COMPETITIVE RIVALRY
y Number and Diversity of Competitor - This describes the competition between the existing firms in an industry. the current scenario, the small car market in India is very competitive with players like Maruti Suzuki, Tata Motors, Hyundai etc. which wa pretty s much dominated by Maruti. But with launch of Nano the 1 lakh car the whole momentum of the market has shifted. Now to be competitive in market other companies have to either slash rates of their existing model or have to go back to the drawing board and build again. y Price Competition - Advertising battles may increase total industry demand, but may be costly to smaller competitors. Products with similar function limit the prices firms can charge. Price competition often leaves the entire industry worse off. NANO is the only player so it has the price freedom but as the Maruti and Honda are also planning to launch the car in the same segment the price competition will start .
y Exit Barriers Even if the product fails in the market its not that easy for the company to exit the market just like that because of the heavy investment it has made in the initial stage. If the NANO fails or falls flat the TATA motors will not be in a state to slow done the product even when NANO production line can be used by the other products after few modification as for NANO only the new product line were setup and huge cost were incurred.
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y Product Quality - Increasing consumer warranties or service is very common these days. To maintain low cost, companies consistently has to make manufacturing improvements to keep the business competitive. This requires additional capital expenditure which tends to eat up company's earning. On the other hand if no one else can provide products/ services the way you do you have a monopoly. NANO enjoys the monopoly are there are no competitors in this segment.
The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production, knowledge exchange , logistics and its infrastructure. In the summer of 2008 Tata Motor's successfully purchased theLand Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and has undoubtedly off the company the chance to market vehicles in the luxury segments. NANO is the cheapest car in the World. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines.
y y
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The company's passenger car products are based upon3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands Tata has not got a foothold in the luxury car segment in its domestic, Indian market. The brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India. Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this problem could be alleviated.
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CHAPTER II
OBJECTIVE OF STUDY
SCOPE OF STUDY
LIMITATIONS OF STUDY
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Limitations:-
Taking the market conditions into consideration the surv which include a sample of ey, 100, was a relatively small Due to the scarcity of time and limited resources, this survey was restricted for a period of 6 weeks. The geographic region covered for the survey was limited to the boundaries of the Navi Mumbai city, which is a small part of survey to come for any concrete or absolute outcome. Improper response from customers and buyers, but it was minimal. Minimal possible bias in administrating the questions at the survey conducted area. The reaction and attitudes are subjected to changes according to their needs and time.
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CHAPTER III
Research Methodology
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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data.
STEP IN SAMPLING PLAN:Sampling Frame: The list of sampling units from which sample is taken is called sampling frame. ahmedabad City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result.
SAMPLING TECHNIQUE: CONVIENIENT SAMPLING SAMPLING SIZE: Total sample size is 100. The following sample size according to area wise is as follows: 20 at Point of Purchase 20naranpura 20 Gujrat college 20 narol 20 shivranjni
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SAMPLING PROCEDURE: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co -operative. It was a randomly area sampling method that attempts to obtain the sample of convenient. Source of data collection:Primary: For my survey primary data have been used as a questionnaire to collect the data. Secondary: The secondary data has been collected from the following modes: Magazines Newspaper Data through internet sources Data collected from organization.
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CHAPTER IV
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Sr. PARAMETERS No. 1 Knowledge Of Sales Person Employee Spent Enough Time with You Before Sales During Sales After Sales Display Of Merchandise is Attractive Availability of Product Variety Selection Of Product Vehicle in Good Condition Prices are Affordable Attractive Discounts Offered Decore of waiting area is pleasing Offered a test drive Post sales follow up are done Regularly Responds to complaints quickly Services at TATA SERVICE STATION Value for Money
Satisfied 88
Unsatisfied 9
2 3 4 5
90 90 70 83
10 10 27 9
0 0 3 8
6 7
65 73
15 23
20 4
96
9 10
73 34
12 38
15 28
11
23
55
22
12 13
63 68
34 25
3 7
14
76
26
15
86
16
16
57
25
18
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Satisfied
1
4 7
2
5 8
3
6 9
13
16
Unsatisfied
1
4
13
16
13
14
11 14
12 15
2
5
3
6
8
11
9
12
14
15
11
12
15
16
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Male 63 15 8
Female 9 4 1
Total 72 19 9
Gender Wise
120 100 80 60 40 20 0
Male Neither Satisfied or Unsatisfied (%) Female Total
8 15
63
1 4
9
9 19
72
Unsatisfied (%)
Satisfied (%)
INTERPRETATION On an average 63% male customers & 9% female customers are satisfied, That mean total 72% customers are get full level satisfied, and 15% male customers & 4% female customers are not satisfied, That is total no of unsatisfied customers 19%, and 8% male customers & 1% female customers are not decided.
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Age wise:
Age Wise Satisfied (%) Unsatisfied (%) Neither Satisfied or Unsatisfied (%) Below 18 0 0 0 18-25 2 0 1 26-35 18 5 2 36-50 36 8 6 50 Above 16 6 0 Total 72 19 9
Age Wise
80 70 60 50 0 30 20 10 0
Satisfied (%)
Unsatisfied (%)
Neither Satisfied or Unsatisfied (%)
INTERPRETATION On base of market research, 18-25 age customers satisfied is 2%, 26-35 age customers is satisfied 18%, 36-50 age customers is satisfied 36% & 50 above age customers is satisfied 16%, That is total no of satisfied customers is 72%, and unsatisfied customers is 5% (26 age), 36-50 unsatisfied -35 customers is 8%, and 50 above unsatisfied customers is 6% that is total no of unsatisfied customers is 19% and 18-25 age customers are not decided 1%, 26-35 age customers 2% are not decided, 36 -50 age customers are 6% are not decided , That is total 9% customers are not decided.
Below 18 0
18-25 2
26-35 18
36-50 36
50 Above 16
Total 72
0
0
0
1
5
2
8
6
6
0
19
9
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Occupation wise:
Occupation Wise Satisfied (%) Unsatisfied (%) Neither Satisfied or Unsatisfied (%) Serviceman Businessman Student Housewife 31 3 1 19 7 0 10 5 2 12 4 6 Total 72 19 9
Occ
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
ai
ie
Business man 0 7 19
Student
2
5 10
Housewif e 6 4 12
Total
9
19 72
Unsatisfied (%)
Satisfied (%)
3 31
INTERPRETATION On base of market research, i have find out serviceman customer are 31% satisfied & 3% unsatisfied, businessman are 19% satisfied & 7% unsatisfied, student are 10% satisfied & 5% students are unsatisfied, and 12% housewife are satisfied, 4% housewife are unsatisfied & 6% housewife are not decided for satisfaction.
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72 19 9
Facilities
120 100 80 60 40 20 0
Tata Finance 5
Auto Card 0
Genuine Accessories 2
Total 9
Unsatisfied (%)
Satisfied (%)
3
16
2
6
6
32
4
5
4
10
19
2
INTERPRETATION On base of research, about facilities provided by Tata Motors Ltd, i have find out Tata Motors Insurance providing facilities to satisfied 9% customer of Tata motors, and about extended warranty is satisfied 9% customers & 4% customer are not satisfied from extended warranty 2% customers , are satisfied to true value & 2% customers are not satisfied, otherwise Tata finance customers are 50% satisfied & 2% customers are not satisfied, 5% customers are not satisfied from Auto card and Genuine accessories customers are 2% satisfied & 6% customers are not satisfied, That mean all over 72% customers are satisfied, 19% customers are not satisfied otherwise 9% customers are not decided.
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CHAPTER V
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Findings: Tata Motors try to provide best service to customer when we compare Tata cars with other brands, Tata provide better facilities from other cars. Tata cars is successful in indian market & people want Tata car to change the models & name of car like (Tata Indica vista is totally change from Tata Indica but name is Indica). Tata NANO customers have problem with Tata NANO, Tata NANO is totally unsuccessful in
Indian market. NANO customers are unsatisfied. That is demerit of Tata Motors. Maruti Suzuki India has been subdued and moving probably selling pressure coming in it on high levels, Tata Motors seemingly to be highly volatile stock but lot of customers are coming in the lower end of that particular stock. Tata Motors would be the best among the autos if you want to go long on any of the auto pack. In spite of these conditions, Company has made a giant leap forward thanks to its advanced management philosophy, designed to ensure a better future for Company and its customers . Company is growing and the brand appreciated by its customers because it is continuously striving to achieve the single goal of making good quality products with an emphasis on the customer first principle across all management levels, including production, sales, and s ervice.
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CHAPTER VI
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that the post sales follow ups are done regularly, 26% strongly agre and 15%disagreed with this. ed 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this. 82% said that the service at TATA service station is excellent, 14% strongly agreed while only 4% disagreed with this. 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agreed that all the commitments were fulfilled and 6% agreed with this. 98% said yes th they are at aware about TATA insurance while only 2% said that they were not aware. People feel that Tata Cars are peoples car as it is satisfactory on all parameters they have knowledgeable sales persons , employees spent enough time before and during saes, display of l merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good.
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BIBLIOGRAPHY
Books: 1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition) Company Rajan Saxena (Third Editi
2. Marketing Management, the McGraw. Hill INTERNET: 1. Tata Motors' Official Website 2. Wiki - Tata Motors
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QUESTIONNAIRE
Being an esteem customer of TATA Motors Ltd. you are requested to take out a few minutes and fill the following QUESTIONNAIRE:
Name: .....................................
Q.1) How long have you been associated with TATA Motors?
___________________________________________________________________
___________________________________________________________________
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Q.2.) How would you rate TATA Motors on the following parameter?
Sr. No. 1 PARAMETERS Knowledgae Of Sales Person Employee Spent Enoguh Time with You Before Sales During Sales After Sales Display Of Merchandise is Attractive Availability of Product Variety Selection Of Product Vehicle in Good Condition Prices are Affordable Attractive Discounts Offered Decor of waiting area is pleasing Offered a test drive Post sales follow up are done Regularly Responds to complaints quickly Services at TATA SERVICE STATION Value for Money Satisfied Unsatisfied Neither Satisfied or Unsatisfied
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Q.3) Are you aware of the following facilities provided by Tata Motors? Satisfied FACILITIES i) ii) iii) iv) v) vi) Tata Motors insurance Extended warranty True value Tata finance Auto card Genuine accessories Unsatisfied
Neither Satisfied or Unsatisfied
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Very Bad 1
Bad
Good
Very Good
Very Unlikely 1
Unlikely 2
Likely 3
Very likely 4
Q.6) What is your opinion about Availability & Reliability of Spare parts of Tata Motors? Very Bad 1 2 Bad Neither Bad nor Good 3 4 Good Very Good 5
Date:
Signature
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