Tata Motors Project Report

7/25/2019 Tata Motors Project Report

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Acknowledgement

The beauty of the destination is half veiled and the fragrance of the success half dull

until the traces of all those enlightening the path are left to fly with the wind spreading

word of thankfulness

Keeping this in view; it would be unfair on my part if I dont thank the

mentioned few I e!press my sincere gratitude to Mr. Piush Shankar "marketing

manager Tata #otors$ who gave me the opportunity to get training in such a recogni%edcompany &is guidance and knowledge helped me to learn professionalism in the real

sense

I would like to e!press my deep sense of gratitude to prof. chetan wakalkar' director

I(#(' pune for providing me such an environment to achieve the goals and to prosper in

the corporate world

I am also grateful to my pro)ect guide prof.AnandikarI(#(' *une +ho e!tended his

complete support to make me deliver my best

,


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Executive Summary

-ompany profile

Tata motors limited is Indias largest automobile company with revenues of .s /0',,,corers in /,,12,3' have grown significantly in past 3, years since its establishment in4501 The company is the leader by far in commercial vehiclesin each segment' and the second largest in the passenger vehicles market with winningproducts in the compact' midsi%e car and utility vehicle segment The company is worldsfifth largest medium and heavy commercial vehicle manufacture

*roduct profile

T6T6 #otors has launched a new version of its small car -hristened Indicia 7/ 8eta'the petrol2powered car with a 402litre engine is said to deliver a mileage of 40 kmplunder standard test conditions

(cope 9 ob)ective

The aim of the study made through this pro)ect is to know the consumer awareness aboutthe product Tata !eta with the corporate clients' in :okaro steel city and comparativeanalysis of the Tata2!eta and #aruti 6lto with their product features and market share

.esearch methodology

4 research design/ sampling plan instruments of collection of data0 data analysis and interpretation

4


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-onclusion

This pro)ect research is the analysis of consumer awareness towards the newly launched

car !eta by the branded company Tata motors *eople belonging to middle class generallypreferred the Tata2 !eta going on far its brand name its history goes with delivering valueThe customer of tata2!eta )ust had one problem and they said they are not by theperformance of the car in the sense of its mileage when compare to #aruti alto in thesame segment and price


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Introduction

The time has gone when people )ust wanted to have vehicles as a means of transportation

but nowadays they are more aware about the vehicle model' their price and various other

features which make them owner of a commodity which makes their neighbors feel envy

of their choice 6s India opened its gates for the foreign companies various automobiles

giants entered our country seeking it as their target market +e Indians also got a wide

variety of cars to choose from &yundai entered in India with a view to capture the small

market segment earlier captured mostly by two giant Indian companies2 Tata #otors and

#aruti Hdyog


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6 product to be successful in the market needs the prospective customers to be aware of

the product -onsumer awareness about their products is the companys one of the

primary ob)ective which makes the company to end up at advertising They invest a lot of

money in creating consumer awareness about their newly launched and e!isting products

O!ective

Its always better to start your search with a predefined ob)ective' rather than beating

around the bush 6n ob)ective will give you a direction to work upon and proceed your

further research Therefore' my pro)ect has in basic to ob)ective

To do comparative analysis of the Tata28eta and #aruti 6lto with their product

features and market share

To study the consumer awareness about the product Tata28eta with the corporate

clients' in :okaro (teel -ity

0


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"esearch Methodology

6ccording to Jreen and Tall 6 research design is the specification of the methods and

procedures for ac=uiring the information needed It is the overall operational pattern or

framework of the pro)ect that stipulates which information is to be collected' from where

it is to be collected and by what procedures

This research process based on primary data analysis and secondary data analysis will be

clearly defined to meet the ob)ectives of the study

I chose the primary sources to get the data 6 =uestionnaire was designed in

accordance with our mentor in Tata #otors I chose a sample of about 1

corporate customers around the :okaro (teel -ity from which I can get the instant

information of whose analysis will give me the desired outcome of my research

pro)ect

I collected some data from the secondary sources like published -ompany

documents' internet etc

"esearch #esign

6 research design is the arrangement of conditions for collections and analysis of data in

a manner that aims to combine relevance to the research purpose with economy in

procedures It is a descriptive cross sectional design It is the conceptual structure with

in which research is conducted; it constitutes the blueprint for the collection'

measurement and analysis of data

It is needed because it facilitates the smooth sailing of the various research operations'

thereby making research as efficient as possible yielding ma!imal information with

minimal e!penditure of effort' time and money

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In the preliminary stage' my research stage constituted of e!ploratory study by which it

is clear that the e!istence of the problem is obvious (o' I can directly head for the

conclusive research

Sampling Plan

(ampling plan is a distinct phase of research process In this stage I have to determine

who is to be sampled' how large should be the needed sample and how sampling unit is to

be selected

Population

In my research' I have defined my population as a complete set of customers of :okaro

(teel -ity

Sample Survey

6s compared to census study' a sample study has been conducted by us because of>

+ide range of population' it was impossible to cover the whole population

Time and money constraints

Sample $nitIn this survey I took the list of customers from the dealers of Tata #otors in :okaro (teel

-ity

Sampling %echni&ue

(ampling techni=ue implies the method of choosing the sample items' the two methods of

selecting sample are>

*robability method

Fon2probability method

*robability method is those in which every item of the universe has an e=ual chance of

the inclusion in the sample Fon2probability methods are those that do not provide

every item in the universe with known cause of being included in the sample The

selection process is partially sub)ective

@or my study' I employed the Fon2probability sampling techni=ue' in which I got the data

of the customers from the dealer of Tata #otors in :okaro (teel city

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Instrument of collection of data

I have used one set of =uestionnaire to collect data from the customers This

=uestionnaire is structured and highly ordered This includes both close ended and open

ended =uestions The close ended =uestions included both dichotomous and multiple

choice =uestions

#ata analysis and interpretations


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'ompany profile

%ata Motors (imited

Tata #otors


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Mivisions2 *assenger -ars' Htility 7ehicles and -ommercial 7ehicles In 4515' they set

up their first and largest .9M centre in OamshedpurIn 4534' e!ports had begun and the

first truck was shipped to (ri


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These ac=uisitions will further e!tend Tata #otorsL global footprint' established through

e!ports since 4534 The companyLs commercial and passenger vehicles are already being

marketed in several countries in Gurope' 6frica' the #iddle Gast' 6ustralia' (outh Gast

6sia and (outh 6sia It has assembly operations in #alaysia' Kenya' :angladesh' (pain'

Hkraine' .ussia and (enegal

The foundation of the companyLs growth over the last 1, years is a deep understanding of

economic stimuli and customer needs' and the ability to translate them into customer2

desired offerings through leading edge .9M

+ith 4'0,, engineers and scientists' the companyLs Gngineering .esearch -entre'established in 4533' has enabled pioneering technologies and products It was Tata

#otors' which developed the first indigenously developed


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(imultaneously' it also plays an active role in community development' serving rural

communities ad)acent to its manufacturing locations

+ith the foundation of its rich heritage' Tata #otors today is etching a refulgent future

It has been a long and accelerated )ourney for Tata #otors' IndiaLs leading automobile

manufacturer (ome significant milestones in the companyLs )ourney towards e!cellence

and leadership from the glorious year of 4501 till date it is working on it success road

In its senior management position #r .avi Kant is the #anaging Mirector of this

company

Manufacturing

Tata #otors owes its leading position in the Indian automobile industry to its strong focuson indigeni%ation This focus has driven the -ompany to set up world2class

manufacturing units with state2of2the2art technology Gvery stage of product evolution2

design' development' manufacturing' assembly and =uality control' is carried out

meticulously Pur manufacturing plants are situated at Oamshedpur in the Gast' *une in

the +est and


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*airs of moulds every hour The @oundry has its own melting shop' core shop and sand

plant

Pther advanced facilities include -hannel @urnaces' -omputeri%ed Testing G=uipment

etc In 455' the @oundry was I(P 5,,/ certified by the :ureau 7erities uality

International and later followed it up with the more stringent ( 5,,, certification from

the :7I in the year /,,,

The unit is also e=uipped with a semi2automated forging line' with 0,',,, mkg :ache

hammer and state2of2the art presses from Kurimoto of Oapan and is one of the most

modern forging set2ups in the country It produces critical forgings like crankshafts'

front a!le beams and steering parts for the automobile plant The new forging line'

installed on 6pril /,' 45E0' has the capability to forge front a!le beams at 5, sec per

piece and crankshafts at 4/, sec per piece #echanical presses help produce a variety of

heavy forgings The sophisticated @IMI6 Migit 431 -- graphite2milling machine links

shop floor machines to the design workstation The @orge has been certified as I(P

5,,/ and ( 5,,, by the :7I

Pune:

The *une unit is spread over / geographical regions2 *impri and -hinchwad and has a

combined area of around 14, acres It was established in 4533 and has a *roduction

Gngineering Mivision' which has one of the most versatile tool making facilities in the

Indian sub2continent It houses a 7ehicle manufacturing comple! which is one of the

most integrated automotive manufacturing centers in the country producing a large

variety of individual items and aggregates It is engaged in the design and manufacture of

sophisticated press tools' )igs' fi!tures' gauges' metal pattern and special tools' as well as

models for the development of new ranges of automobile products Its capabilities have

enabled Tata #otors to introduce new products and improve e!isting ones without

resorting to imports of dies or fi!tures

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Lucknow:

Gstablished in 4554 and covering an area of 3,, acres' the


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-ustomersLuote

"We are happy to inform you that the feedback received from our Japanese personnel(after their visit to your plant) is very positive and hence have decided to set the die

quality of Tata Motors, Jamshedpur dies as benchmark."

(TTI "Toyota$'

:angalore

#arch' /,,0

Tata #otors has proven e!cellence over the years through its technologically advanced

products' market e!pansion' customer satisfaction and increasing salesTata #otors

consistently strives to increase shareholder value' build stronger customer relations and

work with its business partners to provide the best value for money The company is also

involved in accelerating the countrys economic growth and protecting the environment

+ith the initial financial backing of the giant parent company'Tata Jroup' the division

has built a strong business over the past 3, years and continues to show strong financial

results The continual improvement and introduction of new products in the market have

allowed it to successfully enter as well as dominate the automobile industry in India Tata

#otors reported a record sale of 010'01 vehicles "including e!ports$ for the fiscal year

/,,12,3' its highest ever' and a growth of 4 per cent over the 55'133 vehicles sold in

/,,02,1 Total sales "including e!ports$ for the month of #arch /,,3 were 13'0,3 units'

the companys highest ever monthly sales and an increase of / per cent over the 00'0/

units sold in #arch /,,1

In case of e!ports'The -ompany e!ported 3'1,E vehicles in #arch /,,3 as compared to'530 vehicles in #arch last year' an increase of 30/ per cent The cumulative sales from

e!ports during the year at 1,'15 vehicles' a new peak' have recorded a strong 312per

cent growth over the ,'053 vehicles sold last yearTata #otors continues to make deep

inroads abroad with its strategy of focusing on select markets with relevant products from

its commercial vehicles and passenger vehicles range

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+ith increasing sales' employees' product offering' manufacturing facilities and

distribution centers along with e!pansion outside India' the company seems to have

promising future

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Product profile

%ata Indicia /eta

+ebsterLs Mictionary circa /,1, Indica> 6 successful Indian product of truly Indian

origins The word is derived from the first automobile to be designed' manufactured and

sold successfully by an Indian company (everal variants of its original hatchback design

were spawned and eventually over one million vehicles based on the platform were sold

The diesel2engine vehicle sold in large numbers across the nation and even has the

notable achievement of having been e!ported to several countries across the globe The

diesel2engine Indica received notable appreciation from all around' whereas the petrol2

fuelled versions played second fiddle on the sales graphs

T6T6 #otors has launched a new version of its small car -hristened Indica 7/

8eta' the petrol2powered car with a 402litre engine is said to deliver a mileage of 40kmpl under standard test conditions The 8etaLs engine' delivering , *(' is far more

powerful than the earlier version :esides common black and silver' the car is available in

three flashy hues The 8eta is touted be among the first few small cars to sport beige

interiors :esides these compelling features' the pricing is also attractive' at .s /50 lakh

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for the 6- model The 8eta range is priced between .s /35 to .s 31 lakh e!2

showroom Melhi -ustomers may avail themselves of loans of up to 5, per cent from

select financiers over a seven2year period with G#Is as low as .s 0'04

+e can have some inside view of this wonderful car>

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#esign and engineering

The design of the 8eta is e!actly the same as the Miesel version' no significant changes'

e!cept the upholstery and the beige dashboard 8eta carries with it all the virtues' likespace and comfort (eats are reasonably good and the 6ir con is also =uite good' but the

spread of the vents could really have been better

There are a few things about Tata build =uality that are =uite frankly annoying The door

a)ar warning switch has been placed right ne!t to the door hinge; this results in the cabin

lamp switching off' even when the door is in fact a)arR Tata has also used bolts to fit the

wheels to the hubs' which is unlike the Oapanese who normally use studs and nuts The

result is that it is =uite hard to replace a flat tire The Indica though' unlike its some of its

Oapanese competitors can easily accommodate 1 passengers with much space to spare'

and the best part about the interiors of the Indica are its / front seats that provide

e!cellent comfort and support The rear seats though lacking in comfort compared to the

ones in the front has great legroom for its passengers This can be a big boon on long

)ourneys helping reduce fatigue

Engine and transmission

The entire design effort of this new car is concentrated on the engine alone' the engine

although the same block as the diesel' displaces 40,1cc and has been detuned to now

pump ,ps and 40kgm of tor=ue The best part of this engine is not )ust that figure' it the

way itLs delivered The Indica petrol ceases to be a rampage' a fuel2gu%%ling monster; it is

now able to pump loads of tor=ue into those front wheels The Indica is now able to pull

from as low as E,,rpm

The cru! of the changes incorporated in the new Indica The Few Indica 8eta now sports

a slightly detuned 02cylinder in line' 40,1cc /bit microprocessor controlled fuel in)ected

petrol engine' which is able to pump out ,ps at 03,,rpm 40kgm at /3,,rpm Tata Fow

claims that this engine' thanks to the tor=ue it is able to generate will be able to churn out

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efficiency of around 40kpl -ustomers really impressed by the optimism' but when the

car floored the accelerator

"ide and 0andling

The Indica 8eta is a big car' as far as dimensions go' compared to the puny 6lto and

bigger compared to the (antro and +agon .when it comes to weight almost /,,kgs (o'the suspension does belong to big car categoryThe tread of the tire is wider by 4,mm to

the +agon .78i and the (antro by 4,mm' this helps the car grip a bit better' and

although we e!pected the slightly lower profile to play truant when in came to absorbing

bumps' the intrusive rear suspension really did work outThe handling though is a bit of

another story The Indica being heavy does mean more cornering forces' and the e!tra

weight also means a wee bit of e!tra roll' but the wide stance of the 8eta is able to cope

with the cornering with aplomb The steering though is )ust a bit heavy' which although is

very helpful at higher speeds can be a bit of a drawback around those city runs

1erdict

The 8eta now competes with tried and tested Oapanese cars like the #arutiLs +agon .'

Sen and 6lto and the Korean (antro 8ing -ompared to these cars' the 8GT6 is able to

provide far more space; thanks to its handling' it is able to hold the road much better also

absorbing the undulations of road surface better the handling though seems a bit front

heavy; the car' overall looks even heavier Tata build =uality is yet to really make its

impact on Oapanese car fans' but the fact that this 40,,cc ,ps engine with oodles of

tor=ue is able to churn out e!cellent fuel economy should

Pros 'ons

(ilent engine' comparatively more refined Tires have a tendency to lock up

Truck loads of space Jearbo!' bit too numb

G!cellent ride; especially at higher speeds The boot couldLve been much bigger

beige interiors and seats Gngine is not rev2happy

G!cellent tor=ue; especially low down Gngine doesnLt feel like a 40

boot space =uite good Tata is still in its learning curve

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%echnical 'omparison of %ata /eta and Maruti Alto

$nit

%ata Indica 12 /eta 3(S45S

III Maruti Alto (/i 4 5S III

Price +Ex4

Showroom

Mumai, .s /'55'0, /'55'4,/EMI6 .s '5 '5/

#ore Metails #ore Metails

7eatures

Tata Indica 7/ 8eta J


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8eight

7uel

Economy kg 551 0,

Mileage +0ighway,



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7uel System *etrol *etrol%ransmissio

n #*@I #*@I

%ransmission %ype



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Indian Automoile Industry

India is emerging as one of the most attractive automotive markets in the world' and is

poised to become a key sourcing base for auto components The table below captures the

highlights of the sector in India that illustrates its growing significance

Indian Automoile Industry


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districts$ in the north' Oamshedpur and Kolkata in the east and *ithampur in the central

region @ollowing global trends' the Indian automotive sector also has most auto

suppliers located close to the manufacturing locations of PG#s' forming regional

automotive clusters :roadly' the three main clusters are centered around -hennai' *une

and the F-.

Auto 'omponents sector is highly fragmented

The Indian automotive component industry is highly fragmented There2are nearly 3'0,,

players in the sector' of which only about 3 per cent are organi%ed and the remaining 50

per cent are small2scale' unorgani%ed players In terms of value added' however' the

organi%ed players account for nearly per cent of the output in the sector The sector

manufactures components across all key vehicle systems The break2up of the output

from the organi%ed sector' in value terms' across key vehicle systems' is shown in the

figure

%he automotive sector is growing strongly in oth domestic and exports markets

Indian automobile industry has been performing well both in the domestic and the

international markets6utomobiles 2 Momestic *erformanceThe production anddomestic

sales of the automobiles in India have been growing strongly +hile production increased

/0


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from 0E million units in /,,,24 to E1 million units in /,,02,1 "a -6J. of over 41 per

cent$' domestic sales during the same period have gone up from 03 million to 5 million

units "-6J. 40/ per cent$

6 positive trend in the domestic market is that the growth has not been driven by one or

two segments' but is consistent across all key segments Two wheelers' which constitute

the ma)ority of the industry volume' have been growing at a rate of 40 per cent' three

wheelers at a rate of 40 per cent and passenger vehicles at a rate of 44 per cent

-ommercial vehicles have been growing at a higher rate of nearly/1 per cent' although

from a lower base (ince nearly all macro2economic indicators W JM*' infrastructure'

population'demographics' interest rates' etc W are showing a favourable trend' the

domestic market for automobiles in India is e!pected to continue on its growth tra)ectory

/1


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'ommercial 1ehicles

The commercial vehicle production in India increased from 413',3 in /,,4 to 1,',

in /,,1

This segment can be divided into three categories W heavy commercial vehicles"&-7s$'

medium commercial vehicles "#M7s or #-7s$ and light commercial vehicles "


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Passenger 1ehicles

*assenger vehicles consist of passenger cars and utility vehiclesThis segment has been

growing at a -6J. of 44 per cent for the past four years6 key trend in this segment is

that with rising income levels and availability of better financing options' customers are

increasingly aspiring for higher2end models There has been a gradual shift from entry2

level models to higher2end models in each segment @or e!ample' in passenger cars' till

recently' the #aruti E,, used to define the entry level car' and had a predominant market

share Pver the last 20 years' higher2end models such as &yundai (antro' #aruti +agon

.' 6lto and Tata Indica have overtaken the #aruti E,,6nother development has been the

blurring of the dividing line between utility vehicles and passenger cars' with models like

#ahindra 9 #ahindras (corpio attracting customers from both segments Hpper end

sports utility vehicles "(H7s$ attract potential lu!ury car buyers by offering the same

level of comfort in the interiors' coupled with on2road performance capability

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Exports of automoiles from India are ooming

+hile the domestic sales of automobiles have been increasing at a significant rate'e!ports

have taken a =uantum leap in recent years The e!ports of automobiles from India have

been growing at a -6J. of 5 per cent for the past four years

G!ports growth has been spearheaded by the passenger vehicle segment' which has

grown at a rate of 10 per cent6s a result' the share of passenger vehicles in overall

vehicle e!ports has increased from 4E per cent in 455E255 to /3 per cent in /,,02,1

Gurope is the biggest importer of cars from the country while predominantly 6frican

nations import buses and trucksThe 6ssociation of (outh Gast 6sian Fations "6(G6F$

region is the prime destination for Indian two wheelers

#ost of the key auto component manufacturers in India are very positive about the

outlook for e!ports' and e!pect about 41 per cent of their revenue to come from e!ports

over the ne!t 21 years It has been estimated that e!ports of auto components from India

could be around H(N /,2/1 billion by /,41

/E


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A diagram illustrating the structure of Indian automoile Industry

/5


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'ompetitive Advantages

India has several competitive advantages in the automobile sector'which have been

analysed using the following framework6vailability of skilled manpower with

engineering and design capabilities India has a growing workforce that is Gnglish2

speaking' highly skilled and trained in designing and machining skills re=uired by

the automotive and engineering industries In a combined assessment of manpower

availability and capabilities' India ranks much ahead of other competing economies "see

figure$

#any Indian and global players are leveraging this advantage by increasingly

outsourcing activities like design and .9M to their Indian arms The (ociety of Indian

6utomobile manufacturers"(I6#$ estimates that automotive vehicle manufacturers are

e!pected to invest H(N 1 billion in the Indian market from /,,1 to /,4, Pf this' aboutH(N / billion will be on research and development and the rest probably on cape!

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The Indian automobile industry is highly competitive with a large number of players in

each industry segment #ost of the global ma)ors are present in the passenger vehicle and

two wheeler segments In the components industry too'global players such as 7isteon'

Melphi and :osch are well established'competing with domestic playersThe presence of

global competition has led to an overall increase in capabilities of the Indian auto sector

Increase in competition has led to a pressure on margins' and players have become

increasingly cost efficientuality levels have gone up' and there is an increasing focus

on compliance to T*#' T# and (i! (igma processes This has led to an increased

confidence among domestic players' who are now focusing on opportunities abroad Key

players in the components sector like :harat @orge and (undaram@asteners have become

key global suppliers in their categories

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%he outlook for Indias automotive sector appears right

The outlook for Indias automotive sector is highly promisingIn view of current growth

trends and prospect of continuous economic growth of over 1 per cent' all segments ofthe auto industry are likely to see continued growth


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+hile Momestic (ales have been growing strongly since /,,,2,4' G!ports have nearly

tripled in the last 1 years


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'ommercial 1ehicles

0


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Jrowth in the economy and infrastructure development isdriving growth in this segment

Passenger 1ehicles

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Market shares

3


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'ar Sale Surge in une 2;;B

The sale figures of several automobile companies for first =uarter of the current

financial year "/,,32,$ have been declared I' covered select companies' vi%' #aruti

Hdyog' Tata #otors' &yundai India and Jeneral #otors' having presence only in the

passenger vehicles "*7$ and commercial vehicles "-7$ segments

India s leading car marker #aruti Hdyog has reported a 41 per cent increase in

domestic sales at 00'3/3 units "in passenger cars' utility vehicles and multi purpose

vehicles$ during Oune /,,3 as compared with '551 units in Oune /,,1 Total sales "*79 -7$ have grown by 4 per cent to 0E'0/1 units in Oune /,,3 as against 04'5, units in

the previous year' including e!port of '55 units' up by 445 per cent from '51 units in

Oune /,,1 (ales of #aruti E,, have stood at '53 units' up by //4 per cent in Oune

/,,3 from 3'E units a year ago (ales in the domestic 6/ segment "comprising 6lto'

+agon.' Sen and (wift$ have grown by 4,/ per cent to /'//E units in Oune /,,3

compared with /0', units a year ago' while sales in the companys 6 segment ":aleno

and Gsteem$ have risen by // per cent to /'3E, units compared with /'454 units sold in

Oune /,,1

Tata #otors has reported a )ump of per cent in total sales' including e!ports' at

01'// vehicles in Oune /,,3 as against ',4E vehicles in Oune /,,1 Its domestic sales

of passenger cars have increased by /E per cent to 4E'03 units Its Indica group has

registered a growth of 04 per cent to 4/'/4 units over Oune /,,1 The Indigo family has

reported sales of /'EE1 units' a decline of 4 per cent in Oune /,,3 (umo and (afari

have accounted a rise of 41 per cent to ', units; the new (afari range launched in thelatter part of the month "Oune /,,3$ has recorded a sale of 4',44 units Pn the commercial

vehicles "-7$ front' the companys domestic sales in Oune /,,3 have augmented by E5

per cent to stand at /4'131 units compared with 41'1, units in the same month a year

ago (ales of medium and heavy commercial vehicles "#9&-7$ have stood at 44'E,E

units' a rise of / per cent over Oune /,,1'


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while that of light commercial vehicles "


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7our48heeler update

Maruti $dyog (td

#aruti Hdyog "#H


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0yundai Motors India (td

In Oune /,,0' &yundai #otor India


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growing 115Q yoy(umo and (afari registered a combined sale of /'0/ units in Oune'

and a cumulative sale of '30 units

'ommercial 1ehicles +'1,

Domestic Volumes 4-Jun 3-Jun yoy (%)

M#$V 9,355 6,465 447

&V 4,090 3,393 205

"otal 13,445 9,858 364

-umulative sales for -7s for the first three months of @C,1 stood at 5'EE units

increasing 05Q from /3'304 units for the same period last yearThe company is

planning to raise production capacity by 1,Q in @C,1' from about 41lac units currently

@or this it plans to invest over .sE',,,mn in @C,1 for this increase in capacity' product

development and marketing+ith the launch of the (umo 7icta' it has targeted a 4,241Q

e!pansion in sales of its #H7' (umo' in @C,1

Mahindra ) Mahindra (td

Volumes 4-Jun 3-Jun yoy (%)

'tility Veicles 7,861 6,405 227

&Vs 915 744 23

"ree-*eelers 1,279 1,239 32

"otal 10,055 8,388 199

"ractors 6,812 3,552 918

H7 sales in Oune included /'4, (corpio' a growth of 44Q from 4'E5 for the same

period last yearMue to good monsoons last year' the farm e=uipment segment recovered

and #9# sold nearly 1,',,, tractors in @C,0 The Oune /,,0 volumes' including

e!ports' have nearly doubled on a yoy basis

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It will spend around .s'1,,mn during @C,1 on account of capital e!penditure for

development of engines and transmissions' e!pansion of plant capacity and

moderni%ation and .9M

3eneral Motors India (td

In Oune /,,0' J# India sold /'04E cars registering a growth of 4/1Q from 4',E/ cars

for the same period last year It sold E,0 units of the -hevrolet Pptra' E,, units of the

-hevrolet Tavera "#H7$ and E3 units of the Ppel -orsa

The growth in sales of J# in India is primarily due to its -hevrolet Pptra and Ppel

-orsa models

:etween #arch and Oune /,,0' the company sold a total of '11 -hevrolet Pptras

6long with these' J# India also manufactures the -orsa (ail and (wing at its facility in

&alol' Ju)arat' -hevrolet @orester and the imported Ppel 7ectra The company sold

41',,, units in /,,

Aso+ &eyland &td

Volumes 4-Jun 3-Jun yoy (%) Apr04-Jun04 Apr03-Jun03 yoy (%)

MDV ,assenger

Domestic 673 990 -32 1,837 2,115 -131

!ports 200 86 1326 466 193 1415

MDV oods

Domestic 2,491 2,532 -16 7,830 5,662 383

!ports 508 104 3885 923 207 3459

&V oods

Domestic 25 33 -242 67 82 -183

!ports 1 30 -967 13 87 -851

"otal 3,898 3,775 33 11,136 8,346 334

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The domestic sales volumes declined 4,Q yoy in Oune /,,0 -ompared to this' e!ports

in the month of Oune nearly trebled at ,5 units against //, units in Oune /,, Total

sales including e!ports went up Q yoy in Oune /,,0 and sales in the first three months

of @C,1 increased 0Q yoy

Eicher Motors (td

Gicher #otors sold 4'1,3 commercial vehicles in Oune' registering a growth of 4/Q yoy

as compared to 4'00 units last year -umulative sales for the three months in @C,1 stood

at '31 units growing 451Q from ',15 units in the same period last year

#aruti Hdyog sold 5'E3 #*7s in 6pril and #ay /,,0 together whereas #9# sold 4/units for the same period 2 "G!cluding H7s shown above$

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A:A(CSIS

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Annual Income

6nnual income is always considered to be an important factor in selection of the target

markets for any company 6s Tata W8eta is the middle class segment' so the customers

earning less than .s 4'1,',,, is about /,Q' the customers lying between .s4'1,',,, to

.s /'1,',,, is about 1Q' those that in .s /'1,',,, to .s '1,',,, is /1Q and that above

.s '1,',,, is /, Q

:y this way we can conclude that at most the customers which are called to be the

essence of the middle class own Tata2 8eta

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1ehicle 5rand

Gvery company desires itself to be in the house of its target customersThe customers

whom I sampled where mostly owing one or two carsIn most of the middle class

segments there were about /,Q #aruti cars'/1Q &yundai cars ' where as 01Q was

constituted by Tata cars and #ahindra and other section cars had a share of 1Q each I

can here make a clear cut analysis that Tata28eta had the greates market share in the

middle class segmentIn this pro)ect where we are comparising with #aruti2 6lto ' I can

make a )udgment that Tata28eta is mostly owned by the customers rather than #aruti2

6lto

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Source of 9nowledge aout %ata4/eta

Purs is a country where customers are highly influenced by the electronic media 6ny

new product that is in the market has a uni=ue advertisement for itself' in order to attract

its target customers in its uni=ue way This was also shown in my research as the

electronic media had a total percentage of 01Q 'followed by Fewspaper by ,Q *eople

are not eager to get to know about nay new brand by their friends and relatives which is

shown by a total of )ust 41Q 'while the options others took away 4,Q

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"eason for attraction towards %ata4/eta

*eople in India had always go for the famous brands and are really brand conscious They

at least trust the famous Indian brands 'who are giving their services and products to their

high esteemed clients +hen I studied this aspect I also got to know the same as the brand

being the reason of attraction of the customers up to a ma!imum of Q followed by the

product =uality by /Q The product price is a aspect which attracts about )ust /Q of the

customers *urchasing a product )ust merely seeing a advertisement is not an Indians

mind Therefore it takes )ust about 4/Q of the total sample taken for study

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Media of advertisement for attraction

Indians are attracted by the T7 6dvertisement as they think watching T7 to be a famous

mode of entertainment There are also a number of commercial breaks between various

T7 shows -ompanies target and try to occupy these spaces to get closer to their

customers or rather make them ac=uainted of the product This was also studied in my

research as it occupied about EQ' followed by print media that is advertising through

various newspaper and maga%ines contributes about /EQ-ustomers are also attracted by

the hoardings which are put up by the company that amounts to a total of //Q 'where as

only 4/Q of the customers are attracted by various .oad shows

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#iscount or free gifts attraction

*eople of India are always attracted to the products which give them free gifts or

discounts on the purchase price -ompanies generally give such offers in case of any

festivals or any marriage season locally known as lagan *eople wait for this time to get

free gifts or coupons or being a part of any lucky draw scheme In my research also I

came a total of about Q of customers looking for such offers' but there where /Q of

the customers who does not gets really attracted by such offers and purchase car as whne

needed dont even desire to get such gifts

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7actors which influence the purchase decision

Feighbourss envy and owners pride is a common rule followed by various Indians for

which they go for looks The car should be having good outlook so that even though a

layman may also praise their choice This aspect therefore was shown in my research also

which contributed to about /3Q-ustomers are generally price conscious and when we

are targeting the middle class customers who do not make a heavy investment' they go

for the products which are within their budget limits They are always attracted to the

cars which are within their budget limits so that they can carry on with it in a well

manner 6bout /1QThe aspect brand took a total of /,Q share followed by comforts

provided by the car which is about 40Q (peed' after sales service and spare parts

availability took about EQ' 1Q and /Q respectively

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%ata4xeta eing well e&uipped with all the features of a small car

*eople in my sample units seemed to be satisfied by the performance of Tata28eta They

agreed to the various features provided by Tata2!eta being a small segment car6bout

E4Q of the total sample agreed to this' where as 45Q disagreed to it showing their high

e!pectations from the brand name which was not otherwise fulfilled They said they are

not satisfies by the performance of the car in the sense of its mileage when compared to

#aruti26lto in the same segment and the same price range

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#iffrences etween %ata4/eta and Maruti4 Alto

-ustomers when they purchase a car generally do a lot of field study'through which they

can easily differentiate between various cars +hen I consulted in terms of Tata2 8eta

and #aruti26lto they were various options coming upThe difference in mileage was the

most premium factor to be considered the mileage of Tata28eta and that of #aruti26lto

are 41km?lt and 4Ekm?lt It was pointed out by various customers there fore it

contributed about 3Q' followed by //Q about the =uality they feel that Tata2!eta is

having the more robust =uality in comparison with #aruti26lto(peed was also a factor

take into consideration with a total of 43Q' followed by looks by 4/Q*rice

differentiation took about EQ of the customers into consideration and comforts )ust took

3Q of the total share

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'onclusion

This pro)ect research is the analysis of customer orientation towards the newly launched

car 8eta by the branded company Tata #otors *eople belonging to the middle class

generally preferred the Tata28eta going on for its brand name as its history goes with

delivering the value This was also shown in my research as the electronic media was the

most attractive method of advertising Tata28eta The customers sampled thought the car

they had should have good e!terior

The customers of Tata28eta )ust had one problem with their car was the mileage given

by their car in comparison with #aruti26lto which is also a They said they are not

satisfies by the performance of the car in the sense of its mileage when compared to

#aruti26lto in the same segment and the same price range Thus ' the view prevalent in

my mind after this research was conducted that if Tata28eta would work on its mileage

concept then would definitely it would emerge as a winner in small car segment and also

will prove better than #aruti -ars

10


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"ecommendations

Tata #otors is a company which is maestro in its field' but there are some

recommendations which I will like to give to even perform it better

This pro)ect was about to study the customer orientation toward Tata28eta' many

of the customers complained about the mileage given by Tata28eta is =uite less

than that of #aruti 6lto The mileage given by that of Tata28eta is 41km?lt and

that of #ruti W6lto is 4E km?lt The customers who use this car for their

business purpose get effected by this shortcoming (o for this case they prefer

#aruti26lto belonging to the same price range as the price of petrol is also

shooting up

#any customers complained about the advertisement shown for Tata28eta' which

they called to be a confusing one The advertisement didnt showed clearly all the

features of the car' rather it showed what fun a group of girls can make with the

car It should rather be changed

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5iliography

http>??carsinindiacom?indica!eta4asp

http>??irtatamotorscom?*ush@ilephpA

filenameB?home?telcoindia?ir?pdf?/,,3?@C,3D.eviewD@inalpdf

http>??wwwma!aboutcom?automotive?autoDcars?companies?Tataasp!

http>??wwwmouthshutcom?product2reviews?IndicaD8eta25/1,104E1html

http>??wwwcarwalecom?.esearch?choose-ars@or-omparisonasp!

1
http://carsinindia.com/indicaxeta1.asphttp://ir.tatamotors.com/PushFile.php?filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdfhttp://ir.tatamotors.com/PushFile.php?filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdfhttp://www.maxabout.com/automotive/auto_cars/companies/Tata.aspxhttp://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.htmlhttp://carsinindia.com/indicaxeta1.asphttp://ir.tatamotors.com/PushFile.php?filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdfhttp://ir.tatamotors.com/PushFile.php?filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdfhttp://www.maxabout.com/automotive/auto_cars/companies/Tata.aspxhttp://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html


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Annexure

1E


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Documents

Tata Motors Project Report