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PROJECT REPORT
ON
AUTOMOTIVE INDUSTRY
MARUTI SUZUKI V/S TATA MOTORS
QUANTITATIVE TECHNIQUES BASED DECISION MAKING
GROUP NUMBER - 4
SUBMITTED BY: - SUBMITTED TO:-
PRIYANKA KUMARI (2011147) Dr. S. MAHESWARAN
ROHIT SRIVASTAVA (2011160)
SAVI AHUJA (2011172)
SHWETA MANOHAR (2011186)
PGDM (2011-13)
SECTION - D
V/s
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TABLE OF CONTENT
S. NO. CONTENT PAGE NO.
1. INTRODUCTION
INDUSTRY COMPANIES
2. OBJECTIVE OF THE STUDY
3. RESEARCH DESIGN
SOURCE OF DATA PERIOD TOOLS AND TECHNIQUES
4. ANALYSIS AND FINDINGS
5. IMPLICATION
6. FUTURE SCOPE OF THE STUDY
7. BIBLIOGRAPHY
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INTRODUCTION
ABOUT THE INDUSTRY:-
The automotive industry designs, develops, manufactures,
markets, and sells motor
vehicles, and is one of the world's most important economic
sectors by revenue.
The term automotive industry usually does not include industries
dedicated to automobiles
after delivery to the customer, such as repair shops and motor
fuel filling stations.
The Automotive industry in India is one of the largest in the
world and one of the fastest
growing globally. India manufactures over 17.5 million vehicles
(including 2 wheeled and 4
wheeled) and exports about 2.33 million every year. India's
passenger car and commercial
vehicle manufacturing industry is the seventh largest in the
world, with an annual production
of more than 3.7 million units in 2010.
As of 2010, India is home to 40 million passenger vehicles and
more than 3.7 million
automotive vehicles were produced in India in 2010 (an increase
of 33.9%). According to the
Society of Indian Automobile Manufacturers, annual car sales are
projected to increase up to
5 million vehicles by 2015 and more than 9 million by 2020. By
2050, the country is
expected to top the world in car volumes with approximately 611
million vehicles on
the nation's roads.
ABOUT THE COMPANIES:-
MARUTI SUZUKI INDIA
Market Share: Passenger Vehicles 46.07%
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor
Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the
domestic car market. The
company offers a complete range of cars from entry level
Maruti-800 and Alto, to stylish
hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans
DZire, SX4 and Sports Utility
vehicle Grand Vitara.
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It is the market leader in India and on 17 September 2007,
Maruti Udyog Limited was
renamed Maruti Suzuki India Limited. The company's headquarters
are located in New
Delhi
Tata Motors
Market Share: Commercial Vehicles 63.94%, Passenger Vehicles
16.45%
Tata Motors Limited is Indias largest automobile company, with
consolidated revenues of
USD 14 billion in 2008-09. It is the leader in commercial
vehicles and among the top three in
passenger vehicles. Tata Motors has winning products in the
compact, midsize car and utility
vehicle segments. The company is the world's fourth largest
truck manufacturer, and the
world's second largest bus manufacturer with over 24,000
employees. Since first rolled out in
1954, Tata Motors as has produced and sold over 4 million
vehicles in India.
A COMPARATIVE VIEW ON THE TWO COMPANIES:-Maruti Suzuki Tata
motors
Founded In 1981 (as Maruti Udyog Limited) 1945
Key Person(s) Mr. Shinzo Nakanishi, M.D and CEO JRD Tata
Headquarters New Delhi Mumbai
Revenue 37,522.4 crore 123,133 crore
Net Income 2,288.6 crore 9274 crore
Parent Suzuki Motor Corporation Tata Group
Objectives of Study:-
The main objectives of the study concerning the two major
companies are to provide with:
Determine the mean sales turnover of both the companies.
Determining of the measure of central tendency and variability of
the data of both
companies.
Testing of the Hypothesis stating that the means of both the
companiesare equal.2.
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Data of Maruti Suzuki Ltd. and Tata Motors:-
Year
Maruti Suzuki Ltd. Tata Motors
Sales Turnover
(in Rs. Cr.)
Earnings per
Share (in Rs.)
Sales
Turnover (in
Rs. Cr.)
Earnings per
Share (in Rs.)
2001-02 9231.3 78.91 8710.05 -1.98
2002-03 9203.8 5.07 10700.66 9.38
2003-04 11392.5 18.76 15298.47 22.96
2004-05 13458.2 29.55 20262.61 34.19
2005-06 14898.8 41.16 23490.55 39.94
2006-07 17358.4 54.07 31089.69 49.65
2007-08 21200.4 59.91 33123.54 52.63
2008-09 23381.5 42.18 28538.2 19.48
2009-10 32174.1 86.45 38364.1 39.26
2010-11 40590.5 79.21 52135.97 28.55
Calculations:-
Measures
Maruti Suzuki Ltd. Tata Motors
Earnings per
share
Sales
Turnover
Earnings per
share
Sales
Turnover
Mean 49.527 19288.95 29.406 26171.384
Variance 742.477 106933812.5 300.7842 178389811.2
Standard Deviation 27.24843 10340.88064 17.34313
13356.26487Coeff. Of Variation 55.01732789 53.61038648 58.97820408
51.03385005
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TEST OF HYPOTHESIS
Let N be the population sizes
be the population mean
Let a sample of size n is drawn from the population
Let xbe the sample mean.
Step 1:Null hypothesis: Ho : 1 = 2
i.e. mean sales turnover of Maruti Suzuki is equal to the mean
sales turnover of Tata Motors
Alternative hypothesis: H1 : 1 2
i.e. mean sales turnover of Maruti Suzuki is not equal to the
mean sales turnover of Tata
Motors
Step 2:Level of significance, =5%
Step 3:Test statistic
t x1- x2 )-(1 - 2 )]/(s12/n1 )+(s2
2/n2)] ~> t(n1+n2-2) degrees of freedom
Since 1=2, our test statistic becomes as under:
t x1- x2)/s2(1/n1 )+(1/n2)]
x1-x2=-6882.434
By assuming the population variance to be equal for both the
populations, the combined
variance can be estimated as:
s2=[(n1-1)s12+(n2-1)s2
2]/(n1+n2-2)
s2=142661811.8
s2(1/n1 )+(1/n2)]= 11944.11201t=-0.576219814
Step-4: The tabulated value is obtained from T-table at specific
level of significance
corresponding to the degrees of freedom and denoted as te.
te=2.101
Step 5: Inference
If |t|
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Analysis:-
Based upon the measures of Central Tendency and Variability.
The mean of the Earning per share of both the companies has
beencalculated and tabulated above which shows Maruti Suzuki giving
a
better earnings per share better than Tata Motors, but when
Standard
deviation and Coefficient of variation are taken into account,
we can
infer that the EPS of Maruti Suzuki varies more than Tata
Motors
implying Tata Motors shares to be more stable source of earning
for the
Shareholders, hence a better choice.
The mean Sales Turnoverof Maruti Suzuki is lower than the mean
SalesTurnover of Tata Motors but the data of Maruti has less
Coefficient of
Variation than that of Tata Motors, hence providing more
credibility to
the statistics of Maruti Suzuki and its Sales Turnover.
Based upon the Testing of Hypothesis.
We conducted a Two-Tail hypothesis testing with our Null
Hypothesisas the mean sales turnover of Maruti Suzuki equal to the
mean sales
turnover of Tata Motors.
According to the testing procedure we come to a conclusion
thataccording to the samples taken, the mean sales turnover of
Maruti
Suzuki does not equal to the Sales Turnover of Tata Motors.
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Future Prospects:-
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BIBLIOGRAPHY
BOOKS REFERRED:-
STATISTICS FOR BUSINESS AND ECONOMICSBY ANDERSON, SWEENEY,
WILLIAMS
STATISTICS FOR MANAGEMENTBY GERALD KELLER
WEB REFRENCES:-
Marutisuzuki.com Tatamotors.com Moneycontrol.com
Wikipedia.org
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