CHAPTER – 1

INTRODUCTION

1.1 Overview of industry as a whole

1.2 Profile of the company

1.3 Problems of the company/Industry

1.4 Competition Information

1.5 SWOT Analysis of the organization

TATA MOTORS LTD. 1

1.1 An Overview of the Indian Automobile Industry

Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898,

the Indian automobile industry has demonstrated a phenomenal growth to this day. Today,

the Indian automobile industry presents a galaxy of varieties and models meeting all possible

expectations and globally established industry standards. Some of the leading names echoing

in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and

Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of

others.

During the early stages of its development, Indian automobile industry heavily depended on

foreign technologies. However, over the years, the manufacturers in India have started using

their own technology evolved in the native soil. The thriving market place in the country has

attracted a number of automobile manufacturers including some of the reputed global leaders

to set their foot in the soil looking forward to enhance their profile and prospects to new

heights. Following a temporary setback on account of the global economic recession, the

Indian automobile market has once again picked up a remarkable momentum witnessing a

buoyant sale for the first time in its history in the month of September 2009.

The automobile sector of India is the seventh largest in the world. In a year, the country

manufactures about 2.6 million cars making up an identifiable chunk in the world’s annual

production of about 73 million cars in a year. The country is the largest manufacturer of

motorcycles and the fifth largest producer of commercial vehicles. Industry experts have

visualized an unbelievably huge increase in these figures over the immediate future. The

figures published by the Asia Economic Institute indicate that the Indian automobile sector is

set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth

largest exporter of automobiles following Japan, South Korea and Thailand. Experts state that

in the year 2050, India will top the car volumes of all the nations of the world with about 611

million cars running on its roads.

At present, about 75 percent of Indian automobile industry is made up by small cars, with the

figure ranking the nation on top of any other country on the globe. Over the next two or three

TATA MOTORS LTD. 2

years, the country is expecting the arrival of more than a dozen new brands making compact

car models.

Recently, the automotive giants of India including General Motors (GM), Volkswagen,

Honda, and Hyundai, have declared significant expansion plans. On account of its huge

market potential, a very low base of car ownership in the country estimated at about 25 per

1,000 people, and a rapidly surging economy, the nation is firmly set on its way to become an

outsourcing platform for a number of global auto companies.

History of the Automobile industry in India

The economic liberalization that dawned in India in the year 1991 has succeeded in bringing

about a sustained growth in the automotive production sector triggered by enhanced

competitiveness and relaxed restrictions prevailing in the Indian soil. A number of Indian

automobile manufacturers including Tata Motors, Maruti Suzuki and Mahindra and

Mahindra, have dramatically expanded both their domestic and international operations. The

country active economic growth has paved a solid road to the further expansion of its

domestic automobile market. This segment has in fact invited a huge amount of India-specific

investment by a number of multinational automobile manufacturers. As a significant

milestone in its progress, the monthly sales of passenger cars in India exceeded 100,000 units

in February 2009.

The beginnings of automotive industry in India can be traced during 1940s. After the nation

became independent in the year 1947, the Indian Government and the private sector launched

their efforts to establish an automotive component manufacturing industry to meet the needs

of the automobile industry. The growth of this segment was however not so encouraging in

the initial stage and through the 1950s and 1960s on account of nationalization combined

with the license raj that was hampering the private sector in the country. However, the period

that followed 1970s, witnessed a sizeable growth contributed by tractors, scooters and

commercial vehicles. Even till those days, cars were something of a sort of a major luxury.

Eventually, the country saw the entry of Japanese manufacturers establishing Maruti Udyog.

During the period that followed, several foreign based companies started joint ventures with

Indian companies.

TATA MOTORS LTD. 3

During 1980s, several Japanese manufacturers started joint-ventures for manufacturing

motorcycles and light commercial-vehicles. During this time, that the Indian government

selected Suzuki for a joint-venture to produce small cars. Following the economic

liberalization in 1991 and the weakening of the license raj, several Indian and multi-national

car companies launched their operations on the soil. After this, automotive component and

automobile manufacturing growth remarkably speeded up to meet the demands of domestic

and export needs.

Experts have an opinion that during the early stages the policies and the treatment by the

Indian government were not favorable to the development of the automobile industry.

However, the liberalization policy and various tax reliefs announced by the Indian

government over the recent past have pronounced a significantly encouraging impact on this

industry segment. Estimates reveal that owing to several boosting factors, Indian automobile

industry has been growing at a pace of about 18% per year. Therefore, global automobile

giants like Volvo, General Motors and Ford have started looking at India as a prospective hot

destination to establish and expand their operations.

Like many other nations India highly developed transportation system has played a very

important role in the development of the country economy over the past to this day. One can

say that the automobile industry in the country has occupied a solid space in the platform of

Indian economy. Empowered by its present growth, today the automobile industry in the

country can produce a diverse range of vehicles under three broad categories namely cars,

two-wheelers and heavy vehicles.

TATA MOTORS LTD. 4

1.2 COMPANY PROFILE

TATA MOTORS

Tata Motors Limitedटा�टा� मो�टार्स�

TypePublic BSE: 500570(NYSE: TTM)

Founded 1945

Founder(s) JRD Tata

Headquarters Mumbai,  India

Key people Ratan Tata, Chairman

Products Automobiles and Engines

Revenue ▲ USD $9.07 billion (2010)

Net income ▲ USD $474.0 million (2010)

Parent Tata Group

Subsidiaries

Jaguar CarsLand RoverTata Daewoo Commercial VehicleHispano CarroceraRoverDaimlerLanchester

Website TataMotors.com

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of

Rs.1, 23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in

each segment, and among the top three in passenger vehicles with 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 third largest bus manufacturer.

The company's 23,000 employees are guided by the vision to be "best in the manner in which

we operate, best in the products we deliver, and best in our value system and ethics."

TATA MOTORS LTD. 5

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.

Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The

company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).

Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with

Fiat Group Automobiles at Ranjan gaon (Maharashtra) to produce both Fiat and Tata cars and

Fiat power trains. The company is establishing a new plant at Sanand (Gujarat). The

company’s dealership, sales, services and spare parts network comprises over 3500 touch

points; Tata Motors also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New York

Stock Exchange (September 2004), has also emerged as an international automobile

company. Through subsidiaries and associate companies, Tata Motors has operations in the

UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business

comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the

Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The

rechristened Tata Daewoo Commercial Vehicles Company has launched several new

products in the Korean market, while also exporting these products to several international

markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from

Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed

Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well.

Hispano’s presence is being expanded in other markets. In 2006, it formed a joint venture

with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to

manufacture fully-built buses and coaches for India and select international markets. In 2006,

Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company

of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new

plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the

Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since

1961. The company's commercial and passenger vehicles are already being marketed in

several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South

TATA MOTORS LTD. 6

America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,

Russia and Senegal.

The foundation of the company's growth over the last 50 years is a deep understanding of

economic stimuli and customer needs, and the ability to translate them into customer-desired

offerings through leading edge R&D. With over 2,000 engineers and scientists, the

company’s Engineering Research Centre, established in 1966, has enabled pioneering

technologies and products. The company today has R&D centres in Pune, Jamshedpur,

Lucknow, in India, and in South 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 became 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 subsequently 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 reach of

thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT

and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg

space and head room. It can comfortably seat four persons. Its mono-volume design will set a

new benchmark among small cars. Its safety performance exceeds regulatory requirements in

India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of

overall pollutants, it has a lower pollution level than two-wheelers being manufactured in

India today. The lean design strategy has helped minimise weight, which helps maximise

performance per unit of energy consumed and delivers high fuel efficiency. The high fuel

efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the

twin benefits of an affordable transportation solution with a low carbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,

in keeping with its pioneering tradition, by unveiling its new range of world standard trucks.

In their power, speed, carrying capacity, operating economy and trims, they will introduce

TATA MOTORS LTD. 7

new benchmarks in India and match the best in the world in performance at a lower life-cycle

cost.

In June 2009, the exciting new range of premium luxury vehicles from Jaguar and Land

Rover were introduced for the Indian market. These include the Jaguar XF, XFR and XKR

and Land Rover Discovery 3, Range Rover Sport and Range Rover.

The years to come will see the introduction of several other innovative vehicles, all rooted in

emerging customer needs. Besides product development, R&D is also focussing on

environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive solutions,

construction equipment manufacturing, automotive vehicle components manufacturing and

supply chain activities, machine tools and factory automation solutions, high-precision

tooling and plastic and electronic components for automotive and computer applications, and

automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to

Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and

is engaged in community and social initiatives on labour and environment standards in

compliance with the principles of the Global Compact. In accordance with this, it plays an

active role in community development, serving rural communities adjacent to its

manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

History of the Company

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of

Rs.1, 23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in

each segment, and among the top three in passenger vehicles with 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 third largest bus manufacturer.

The Company's over 25,000 employees are guided by the vision to be "best in the manner in

which we operate, best in the products we deliver, and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.

Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The

Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

TATA MOTORS LTD. 8

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and

Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an

Industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to

produce both Fiat and Tata cars and Fiat power trains. The Company's dealership, sales,

services and spare parts network comprises over 3500 touch points; Tata Motors also

distributes and markets Fiat branded cars in India.

Tata Motors, the first Company from India's engineering sector to be listed in the New York

Stock Exchange (September 2004), has also emerged as an international automobile

company. Through subsidiaries and associate companies, Tata Motors has operations in the

UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business

comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the

Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The

rechristened Tata Daewoo Commercial Vehicles Company has launched several new

products in the Korean market, while also exporting these products to several international

markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from

Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed

Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.

Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint

venture with the Brazil-based Marcopolo, a global leader in body-building for buses and

coaches to manufacture fully-built buses and coaches for India and select international

markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive

Assembly Plant Company of Thailand to manufacture and market the Company's pickup

vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the

Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since

1961. The Company's commercial and passenger vehicles are already being marketed in

several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South

America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,

Russia, Senegal and South Africa.

The foundation of the Company's growth over the last 50 years is a deep understanding of

economic stimuli and customer needs, and the ability to translate them into customer-desired

offerings through leading edge R&D. With over 4,500 engineers and scientists, the

TATA MOTORS LTD. 9

Company's Engineering Research Centre, established in 1966, has enabled pioneering

technologies and products. The Company today has R&D centres in Pune, Jamshedpur,

Lucknow, Dharwad in India, and in South 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 became 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 subsequently 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 reach of

thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT

and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg

space and head room. It can comfortably seat four persons. Its mono-volume design will set a

new benchmark among small cars. Its safety performance exceeds regulatory requirements in

India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of

overall pollutants, it has a lower pollution level than two-wheelers being manufactured in

India today. The lean design strategy has helped minimise weight, which helps maximise

performance per unit of energy consumed and delivers high fuel efficiency. The high fuel

efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the

twin benefits of an affordable transportation solution with a low carbon footprint.

In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping

with its pioneering tradition, by unveiling its new range of world standard trucks called

Prima. In their power, speed, carrying capacity, operating economy and trims, they will

introduce new benchmarks in India and match the best in the world in performance at a lower

life-cycle cost.

Tata Motors is equally focussed on environment-friendly technologies in emissions and

alternative fuels. It has developed electric and hybrid vehicles both for personal and public

transportation. It has also been implementing several environment-friendly technologies in

manufacturing processes, significantly enhancing resource conservation.

TATA MOTORS LTD. 10

Through its subsidiaries, the Company is engaged in engineering and automotive solutions,

construction equipment manufacturing, automotive vehicle components manufacturing and

supply chain activities, machine tools and factory automation solutions, high-precision

tooling and plastic and electronic components for automotive and computer applications, and

automotive retailing and service operations.

Tata Motors is committed to improving the quality of life of communities by working on four

thrust areas – employability, education, health and environment. The activities touch the lives

of more than a million citizens. The Company's support on education and employability is

focussed on youth and women. They range from schools to technical education institutes to

actual facilitation of income generation. In health, our intervention is in both preventive and

curative healthcare. The goal of environment protection is achieved through tree plantation,

conserving water and creating new water bodies and, last but not the least, by introducing

appropriate technologies in our vehicles and operations for constantly enhancing environment

care. 

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

VISION AND MISSION Strong values are the base of any laudable mission and vision is vital to its realisation. Tata

Motors Power's fundamentals have always been very clear in this direction.

Vision

To be the most admired Integrated Power and Energy Company delivering sustainable

value to all stakeholders.

Mission

The Company will become the most admired Company delivering sustainable value by:

Being the supplier and partner of choice

Achieving excellence in safety, operations and project management

Focusing on the culture of sustainability

Ensuring growth and delivering value to the stakeholders

Caring for the community

Values

Integrity: Honesty, fairness and transparency in our conduct and transactions

TATA MOTORS LTD. 11

Trust: Faith and belief in each other

Care: Being concerned about the well being of all employees

Collaboration: Excellence through teamwork, within employees and partners

Agility: Speedy, responsive and proactive, achieved through empowering employees

Respect: Treat all stakeholders with respect and dignity

Excellence: Bettering standards continuously, with passion and pride

 “TATA (Company) Trust and Care”

Objective of the company

The TATA motor's Goal is:

“To enhance its leadership in India, and establish meaningful presence in selected

international markets."

1.3PROBLEMS FACED BY AUTOMOBILE INDUSTRY

Over the last few years the face of the Indian automobile industry has undergone a sea

change. The growth of the industry has surpassed all previous records. However there are

certain factors that stand as challenges before the Indian automobile industry.

The development of the industry has been attributed to a couple of factors. One of these was

the liberalization of the economy in the early 1990s and the rise in disposable income and

standard of living. Liberalization of the economy meant a decrease in import tariffs, equity

regulations, liberalization in banking norms and relaxation of the foreign exchange. Since

then there has been no looking back and the automobile industry has continued to grow at a

consistent rate of 25%. These positive steps led to globally renowned auto brands to invest in

the Indian market. Some of the leading automobile manufacturers from Europe and the

United States collaborated with Indian brands to create customized vehicles for each section

of the population. With each passing year, the number of automobile manufacturers willing to

take the plunge into the Indian market has risen considerably while most of the international

brands have entered into joint ventures; there are exceptions like Hyundai which is keen on

TATA MOTORS LTD. 12

setting up its own manufacturing units. However, there are numerous challenges before

Indian automobile industry. One of the major problems faced by this sector is the poor

Condition of the roads. The road infrastructure is not properly developed. The condition of

the highways is not up to the mark. A large number of the roads are single lane roads built

almost 50 years ago. They hardly match the rapid pace at which the automobile industry is

developing. Moreover, they are mostly used by bullock carts and two wheelers. It is believed

that the condition of the roads would worsen with the introduction of bigger and increasing

number of vehicles. Repair work is expected to incur expenses up to$30 billion. The

Privatization of the road infrastructure is not enough to solve the problem which has attained

large proportions. The Road Development Program and its progress is expected to be a key

factor in the growth of the auto industry in India.

Though numerous foreign companies have entered the Indian automobile market, the tariffs

on imported components and products and the frequent alterations in the currency exchange

rates have made localization an absolute necessity for these companies. Daewoo-DCM and

GM Astra have already begun the process of localization and plan to expand it. However, it

there is an obstacle in the path of localization with respect to the limited number of

component suppliers. The policies and programs of the government in power also play a

crucial role in the growth of this sector.

The major players in the Indian automobile industry include Maruti Udyog, Mahindra&

Mahindra, Hindustan Motors and Telco. They can be divided into four major sections namely

Multinational Assemblers, Indian Assemblers, Multinational Component Makers and Indian

Component Makers. While the Indian Assemblers boast of a proper distribution network, at

the same time they fall short in with respect to product development and a known brand. The

multinational assemblers, on the other hand, have a well developed production system and

financial resources but are not well acquainted with the intricacies of the Indian market.

Despite these challenges, the Indian automobile industry has managed to carve a niche for

itself in the global auto sector. It continues to grow in the face of some stiff competition from

other Asian auto markets.

Problems of Tata motors

Tata Motors is authorised to rise up to Rs 1,931.48 crore from the public through fixed

deposits. The money raised through this instrument is expected to be used towards repaying

the bridge loan taken to acquire Jaguar Land Rover, maturing mid-2009.

TATA MOTORS LTD. 13

Tata Motors has been faced with several challenges over the past year.

First, its commercial vehicles business was hit by a cyclical slowdown and stiff interest rates.

Falling demand due to non-availability of finance and the slowing of the economy has

resulted in production cuts in three of its plants last month. In the first seven months (April-

October), CV sales volume has fallen by 5.54 per cent compared to the previous year.

Passenger vehicles too have now joined the slowdown. This has been compounded by the

pull-out of the Nano project from West Bengal resulting in reinvestment costs, a delay in the

launch and a possible change in the original production schedule.

The $2.3-billion acquisition of the Jaguar and Land Rover (JLR) brands also poses

difficulties for Tata Motors. It happened when the US and European auto industry (which

accounts for about 50 per cent of JLR’s sales) is losing steam.

Although JLR operations have been profitable at the operating level for the first six months

(January-June), Tata Motors is in for the long haul, considering the additional investments it

may have to make towards working capital and R&D. The new emission norms likely to be

implemented in the EU from 2012 might also require further investments towards making

these vehicles compliant.

Besides, this deal was done when the credit crisis had just begun to unfurl. The company has

since been exploring several options – unlocking of investments in subsidiaries, a rights

issue, a preference share issue (later withdrawn), raising money in the international markets

and, now, fixed deposits – to fund it.

Given the deteriorating global economic environment and the falling investor confidence, the

company has had a tough time procuring the necessary funds. However, a three-year window

may also offer enough room for the company to tide over many of the above problems, which

are a function of the domestic slowdown and the ongoing credit crunch.

TATA MOTORS LTD. 14

1.4 Competition Information

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit

Total Assets

Tata Motors 765.80 48,612.04 47,807.41,811.8

235,912.05

Ashok Leyland 25.85 6,877.85 11,117.71 631.30 6,621.14

Eicher Motors 1,370.95 3,696.98 442.67 75.44 474.14

Tata Motors (D) 448.65 2,879.24 - - -

SML Isuzu 345.00 499.27 893.01 36.56 297.79

Comparison with CompetitorsBalance Sheet ------------------- in Rs. Cr. -------------------

Tata Motors Ashok Leyland Eicher Motors Force Motors

Mar '11 Mar '11 Dec '10 Mar '10

Sources Of Funds

Total Share Capital 634.65 133.03 26.94 13.18

Equity Share Capital 634.65 133.03 26.94 13.18

Share Application Money 3.06 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00

Reserves 19,375.59 2,523.65 429.73 270.14

Revaluation Reserves 0.00 1,306.28 0.00 0.00

Networth 20,013.30 3,962.96 456.67 283.32

Secured Loans 7,766.05 1,272.22 14.36 62.00

Unsecured Loans 8,132.70 1,385.97 3.11 85.83

Total Debt 15,898.75 2,658.19 17.47 147.83

Total Liabilities 35,912.05 6,621.15 474.14 431.15

Tata Motors Ashok Leyland Eicher Motors Force Motors

Mar '11 Mar '11 Dec '10 Mar '10

Application Of Funds

Gross Block 21,883.32 6,691.89 159.27 937.73

Less: Accum. Depreciation 8,466.25 2,058.10 87.52 653.42

Net Block 13,417.07 4,633.79 71.75 284.31

Capital Work in Progress 4,058.56 387.82 3.06 12.23

TATA MOTORS LTD. 15

Investments 22,624.21 1,230.00 463.98 56.74

Inventories 3,891.39 2,208.90 28.23 193.73

Sundry Debtors 2,602.88 1,185.21 3.64 150.23

Cash and Bank Balance 2,428.92 179.53 3.63 25.71

Total Current Assets 8,923.19 3,573.64 35.50 369.67

Loans and Advances 5,167.42 787.17 57.65 64.78

Fixed Deposits 0.00 0.00 7.47 0.00

Total CA, Loans & Advances 14,090.61 4,360.81 100.62 434.45

Deffered Credit 0.00 0.00 0.00 0.00

Current Liabilities 15,055.69 3,505.26 124.19 312.59

Provisions 3,222.71 490.33 41.08 43.99

Total CL & Provisions 18,278.40 3,995.59 165.27 356.58

Net Current Assets -4,187.79 365.22 -64.65 77.87

Miscellaneous Expenses 0.00 4.31 0.00 0.00

Total Assets 35,912.05 6,621.14 474.14 431.15

Contingent Liabilities 4,798.83 881.77 86.22 54.54

Book Value (Rs) 315.31 19.97 169.53 215.02

TATA MOTORS LTD. 16

1.5 SWOT Analysis - Tata Motors Limited

Tata Motors Limited is the largest car producer in India. It manufactures commercial and

passenger vehicles, and employs in excess of 23,000 people. This SWOT analysis is about

Tata Motors.

Strengths

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.'

The company has a strategy in place for the next stage of its expansion. Not only is it

focusing upon new products and acquisitions, but it also has a programme of

intensive management development in place in order to establish its leaders for

tomorrow.

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 and knowledge exchange. For example, the Fiat Palio Style was launched

by Tata in 2007, and the companies have an agreement to build a pick-up targeted at

Central and South America.

Weaknesses

The company's passenger car products are based upon 3rd and 4th generation

platforms, which put Tata Motors Limited at a disadvantage with competing car

manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has

not got a foothold in the luxury car segment in its domestic, Indian market. Is 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?

One weakness which is often not recognised is that in English the word 'tat' means

rubbish. Would the brand sensitive British consumer ever buy into such a brand?

TATA MOTORS LTD. 17

Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities

and strengths).

Opportunities

In the summer of 2008 Tata Motor's announced that it had successfully purchased the

Land 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 will

undoubtedly off the company the chance to market vehicles in the luxury segments.

Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004

for around USD $16 million.

Nano is the cheapest car in the World - retailing at little more than a motorbike.

Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano

the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar

models will cost up to 85 times more than a standard Nano!

The new 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 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.

TATA MOTORS LTD. 18

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 Pune-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.

TATA MOTORS LTD. 19

CHAPTER – 2

RESEARCH METHODOLOGY

2.1 Statement of the Problem

2.2 Objective & Scope of study

2.3 Managerial usefulness of study

2.4 Type of Research and Research Design

2.5 Data Collection Method

TATA MOTORS LTD. 20

STATEMENT OF THE PROBLEM

The challenge is mainly to find out the market potential of the utility vehicle in the Lucknow

city and to develop selling strategy for them as there are many players who are entering in the

market day by day as India is the largest market in the world and it has large scope, so it is

necessary to find out the market needs and mould accordingly with the consent of customers

and opting the best selling strategy which would be liked by them, also what they mostly

expect in their product should be considered.

2.1OBJECTIVE

The main objective of the research is to understand and study the market potential of utility

vehicle in Lucknow and to develop selling strategy for the utility vehicle.

To determine the reasons behind opting Tata utility vehicles.

To know the most preferred utility vehicle in the city i.e. Lucknow.

To find out whether company is opting the appropriate selling and promotion

techniques.

To determine the types of facility customer seek in the Tata’s utility vehicle.

SCOPE OF THE STUDY

A big boom has been witnessed in Automobile Industry in recent times. A large number of

new players have entered and are still entering in the market and are trying to gain market

share in this rapidly improving market. The study then goes on to evaluate and analyse the

findings so as to present a clear picture of trends in the Automobile sector that is what

strategies company should make so to keep itself ahead in the race.

2.2 MANAGERIAL USEFULLNESS OF THE STUDY:

The study would cater to the needs of the customer, company as well as the residents of the

society as to know the factors resulting in the success/ failure of the company in terms of the

accomplishment of the promises made to the customers, and in letting the general public of

society know whether the companies are performing on the standard established by them.

Thus with the help of this research company has come to know about market potential of the

TATA MOTORS LTD. 21

SUV segment and the various methods and techniques that they should opt for their

advertising.

2.3THE RESEARCH DESIGN

The research design used in the project is descriptive design. The investigation is carried

upon the customers in Lucknow city. The reason for choosing this design is to get responses

from the customers so that their perception about the products can be known and also to

know about the selling strategy of the utility vehicle in the Lucknow city.

THE DATA SOURCE The data has been taken from two sources-:

Primary data source

The primary data source has been collected through questionnaire by personally interviewing

each respondent on a number of queries structured in a questionnaire.

Secondary data source

Secondary data was collected from following sources:

Prior research reports

Websites

Newspaper

Personal consultation

THE AREA OF WORK

The field work is conducted in the Lucknow city in various show rooms situated in different

location all over the city. Some of them are in Indira Nagar, Aliganj, Chowk, Hussainganj

and Alambagh.

TATA MOTORS LTD. 22

2.4 DATA COLLECTION METHOD

The analytical tools used are mostly graphical in nature which include

Pie charts

Cylindrical charts

Column charts

Tables showing percentage

THE SAMPLE SIZE

The sample size consists of 100 units out of which the most logical and non biased response

are selected thus the sample size is taken out.

2.5 LIMITATION OF THE SURVEY

Though, best efforts have been made to make the study fair, transparent and error free. But

there might be some inevitable and inherent limitations. Though outright measure are

undertaken to make the report most accurate.

The Limitation of the Survey is narrated below:

The project is valid for Lucknow city only.

It was not possible to cover each and every showroom due to time constrains.

There may be some biased response form the respondents.

Some respondents did not provide the full data.

Unwillingness on the part of the customers to disclose the information as per the

questionnaire.

The decisiveness on the part of the customers regarding some question hence difficulty

faced in recording and analysing the data.

TATA MOTORS LTD. 23

CHAPTER – 3

CONCEPTUAL DISCUSSION

3.1 Review of Literature

3.2 Current Issues

3.3 New development of Company and Industry

TATA MOTORS LTD. 24

3.1 Review of Literature 

Alpert Mark,(2008, Vol. 297 Issue 4, p20-23, 2p) in his article looks at the potential

obstacles to creating Indian cars that are more fuel efficient. Traditionally, automakers

have reduced the size and weight of cars to make them fit the federal standards for

how many miles per gallon they should get. This has led to a big disparity that

becomes evident in car crashes between SUVs and compact cars. A suggestion has

been made that levels must be adjusted for each class of vehicle to allow the compact

cars to build in better driver protection.

Ted Gayer (No EERI_RP_2001_10, EERI Research Paper Series) in his paper

presents a model of vehicle choice and empirically examines the risk posed by sport-

utility vehicles to those that drive them and to other drivers, relative to the risk posed

by cars. In this research it was found that drivers of SUVs are comparatively safer if

the collision takes place with other cars. The reason was their huge size and strong

frame that they possess makes the vehicle (SUV) quite stronger as compared to cars.

Toy, Edmond L. etoy ( An International Journal; Aug2003, Vol. 23 Issue 4, p641-

650, 10p) in his study compares different vehicle types with respect to their

crashworthiness in which it was found that when the collision takes place SUVs prove

to be stronger. It was found that these vehicles (SUV) are found to be very stiff, and

has strong underlying structure which provides a sense of safety.

3.2 CURRENT ISSUES

Tata Nano begins international journey with Sri Lanka, as Tata Motors celebrates 50th year of its International Business

Sri Lanka has become the first international market for the Tata Nano, with the people's car

being commercially launched in the country today. The introduction of the Tata Nano in

international markets comes on the Golden Jubilee of Tata Motors' international business

which too began with Sri Lanka in 1961 in association with Diesel & Motor Engineering

PLC (DIMO), the company's distributor.

TATA MOTORS LTD. 25

In the 50th year of its presence in Sri Lanka and partnership with DIMO, Tata Motors is also

introducing in the country five new commercial vehicles - Tata Divo luxury coaches and semi

low-floor air-conditioned Tata Marcopolo buses for passenger transportation and, for cargo

movement, the Tata Prima 4928 tractor-trailor, Tata 1618 truck and the Tata Super Ace, a

high-end variant from the Tata Ace family. Tata Motors is already the market leader in

commercial vehicles in Sri Lanka.

In the last 50 years, Tata Motors has exported over 516,000 vehicles across the world from its

portfolio of trucks, buses, passenger cars and utility vehicles. In 2010-11, the company

exported 58,044 vehicles, the highest ever. Tata Motors' vehicles are exported to about 40

countries, in South Asia, South East Asia, West Asia, Africa, Europe and South America.

Besides, the Tata Motors Group's international business also includes Tata Daewoo

Commercial Vehicle Company in South Korea, Tata Motors (Thailand) Limited, Tata

Hispano Motors Carrocera SA in Spain and Tata Motors (SA) (Proprietary) in South Africa.

Tata Motors itself has franchisee/JV assembly operations in Ukraine, Russia, Bangladesh and

Senegal.

To Sri Lanka, Tata Motors has thus far exported over 69,000 commercial and passenger

vehicles. The company's portfolio of commercial vehicles in the country comprises the entire

range from sub 1-tonne small trucks to 49-tonne prime movers and from 14-seater buses to

luxury coaches, while the passenger vehicles portfolio, starting in 2004, already includes Tata

Indica Vista, Tata Indica Vista 90, Tata Indigo CS, Tata Indigo Manza and the Tata Safari. In

association with DIMO, Tata Motors has already established a Technical Training Institute in

Jaffna and begun work on a Driver Training School in Hambantota as part of community

development initiatives.

Tata Manza clocks an incredible mileage of 46.33 km per litre

TATA MOTORS LTD. 26

The Tata Manza (Quadrajet Aura ABS) has clocked an incredible mileage of 46.33 km per

litre. This feat has been achieved by Mr. Narayanan Menon, a resident of Coimbatore who

has zoomed into the Limca Book of Records.

Mr. Narayanan R Menon, Managing Director of Aromen Engineering Company and a proud

owner of the Tata Manza has been certified for the remarkable drive on the Coimbatore-

Avinashi by-pass on 25th of May 2010. Mr. Menon's Tata Manza covered a long stretch of

73.2 kilometer on road by consuming only 1.58 liters of diesel, which translates to an

incredible mileage of 46.33 km per litre.

A mechanical engineer, Mr. Menon himself does not credit an amazing mileage to a 'magic

foot' rather a combination of good driving and car maintenance.

For a country where fuel efficiency is a significant factor for automobile ownership and with

fuel prices increasing, the feat certainly bodes well for the mileage conscious customer.

TATA Motors received largest order of M&HCV

Tata Motors receives largest order ever of M&HCV trucks from a single fleet owner

Tata Motors has received its largest order ever of Medium & Heavy Commercial Vehicles

from s a single fleet owner. The order is from Siddhivinayak Logistics Ltd. (SVLL) to supply

1,111 M&HCV trucks, to be delivered during the year.

Based in Surat, SVLL is one of the largest fleet owners in the country, owning a fleet of

over 2000 commercial vehicles. The company operates across diverse segments like

steel, cement, tractors, chemicals, machinery and is a pioneer in new segments like

commercial vehicle chassis carriers. SVLL plans to start transporting farm fresh fruits

and vegetables through refrigerated containers on the Tata Prima.

Tata Motors M&HCV sales in May 2011 saw a growth of 12% over May 2010. The

company currently has 70% market share in M&HCV trucks.

Supreme Court protects rights of Tata Motors till Calcutta High Court

disposes of company's writ petitions on Singur Land Rehabilitation &

Development Act 2011

The Supreme Court today provided interim protection to the rights of Tata Motors till

disposal of the main matters pending before the Calcutta High Court on the land earmarked

for the Tata Motors' integrated project at Singur.

TATA MOTORS LTD. 27

The order was passed on a Special Leave Petition (SLP) by Tata Motors to stay distribution

of land till the Calcutta High Court has disposed of the main matters. Tata Motors appealed to

the Supreme Court that the position on the ground should not be irretrievably changed when

the main matters are pending before the Calcutta High Court.

Tata Motors had appealed on June 24 to the Advocate General of West Bengal that the

government should not proceed with any action on the Singur plot in view of the ongoing

hearing on the company's main matters on The Singur Land Rehabilitation & Development

Act 2011.

During the hearing on the main matters on June 24, the Tata Motors' counsel, in the light of

media reports of distribution of land, had requested the Advocate General to agree that status

quo as regards distribution of land be maintained in view of the ongoing hearing. In response,

the Advocate General had said while it was not possible for him to respond right away, he

would think it over the weekend and communicate during the next hearing.

One June 27 (Monday), however, the Advocate General informed the Calcutta High Court

that the state government was unable to accept the proposal of Tata Motors.

Besides, in keeping with the tradition of the Tata Group,Tata Motors began a comprehensive

community development programme in Singur in December 2006, even before the plant's

construction began, comprising development of employability / self-employment of the

community, health and education. Eventually, about 767 individuals were trained. About 102

health clinics were run treating over 17,000 patients till the activity was forcibly stopped.

Adjacent schools were supported with necessary infrastructure. Men and women in the area

were supported to acquire means of self-employment.

But the state government failed to ensure a safe and congenial environment which forced the

company to shift the project. Having failed to provide what was an essential condition for the

operation of the plant, the state government cannot charge the company with non-

commissioning and abandonment and take away its rights, as enshrined in the lease

agreement between the company and the West Bengal Industrial Development Corporation

(WBIDC).

Similarly, 13 vendors had constructed plant buildings, 17 others were at various stages of

construction and balance 24 vendors were at various stages of obtaining different approvals

before commencing construction. The Act completely ignores their losses.

The Act seeks to legalise force and taking advantage of the same, the State by a midnight

TATA MOTORS LTD. 28

operation using police force dispossessed the security guards from the plant site and

trespassed into it.

The Act appoints the District Judge of Hooghly as the adjudicator for determining the

compensation, without any guidelines or parameters, on the basis of which the compensation

would be decided. It gives an unguided delegation of powers to the District Judge Hooghly in

clear derogation of the Constitution of India.

NEW DEVELOPMENT OF COMPANY AND INDUSTRY

Change is the only constant in life. The automotive industry, like every other sphere of

business, is going through a period of significant transition. A number of changes are being

worked out with respect to customer expectations, regulations governing safety and

environmental protection, and continual competitiveness in terms of cost. These changes

cannot be brought to pass unless the company systematically drives its processes ahead

through a high level of product and process innovation

Most of these innovations have been, over the years,

incorporated into automobiles, ensuring driver and

passenger safety and convenience while driving.

The design of the Tata Indica, India’s first indigenous

car, is an accomplishment that has established the

country’s position in an elite group of countries that have

proved their capability in designing, developing and

manufacturing a world-class car. Tata Motors has made significant new investments in new

facilities to support its product-development needs. It has hired new talent and instituted new

methods such as computer-aided design, computer-aided manufacture and computer-aided

engineering to help it in its research endeavours.

Today, ERC takes pride in having in its service more than 900 scientists and engineers,

besides a host of unique facilities, including the only crash test facility and 'hemi-anechoic

noise and vibration test chamber in Asia, outside Japan or Korea. It also has to its credit other

technologies such as the advanced emission measurement

systems and a digital prototyping laboratory.

TATA MOTORS LTD. 29

Some of the other technologies that are part of Tata Motors’ arsenal are those that offer

improved electronic controls for engine systems, aimed at improving emission standards, and

other vehicle drive-train and chassis systems, besides fuel efficiency. 

The work on safety engineering also occupies a large part of the R&D focus. The company is

currently working on equipping the vehicles of the future with technologies for improved

communication, navigation and entertainment. The use of all these technologies will go a

long way towards ensuring the quality of all the vehicles that roll out of the company’s

plants.

Automobile companies everywhere now pride themselves on offering products that score

high on criteria like quality, reliability, and availability of features and specifications. The

only way in which companies can set themselves apart from the competition is by spending

more time and energy on innovative products. Consistent attention to research pays high

dividends to a company in the long run. 

In the absence of a strong and active R&D department, an automobile company aspiring to be

in the league of globally competitive companies will find itself is lagging far behind. Besides,

the growing number of regulations in the field of auto safety demands that a company invest

highly in research.

Tata Motors has achieved much progress in terms of accessing advanced systems and

technologies and using them to equip their products with various conveniences and features.

The resultant advances have enabled the company to meet the highly stringent performance

specifications that are expected from any world-class manufacturer of cars.

The design and development of so many new features and specifications requires the

company to protect its intellectual property rights. The road ahead will require Tata Motors to

take some crucial decisions. The company will have to learn a number of lessons from the

environment, the competition, the expectations of consumers, current and upcoming

regulations, and the evolution of technology. These lessons will then have to be ploughed into

research that will help design and improve the vehicle of the future. The company has shown

its willingness to take risks and to drive itself aggressively ahead. There is no doubt that Tata

Motors will be at the forefront of the changes that will be evident in the automobile industry

of the future.

TATA MOTORS LTD. 30

CHAPTER 4

Data Analysis

Methods and techniques of data analysis

Primary Data Analysis

Secondary Data Analysis

DATA ANALYSIS

TATA MOTORS LTD. 31

1.) What are your monthly earnings ?

Monthly Income No. of respondent Percentage

30000-50000 62 62%

51000-100000 24 24%

above 100000 14 14%

Monthly Income

INTERPRETATION

The chart shows the monthly income or earnings of the people. In Lucknow more people

belong to service class group that is why the 62% of the people fall under the income group

of Rs. 30000-50000 while rest 24% and 14% come under Rs 51000-100000 and above

100000 respectively. Hence, the target customers of the company are those who fall in the

income range of Rs51, 000 to 1, 00,000 and above.

2.) Which car do you own at present ?

TATA MOTORS LTD. 32

Car No. of Respondant

Percentage

Maruti 41 41%

Hyundai 18 18%

Ford 9 9%

Chevrolet 8 8%

Tata 21 21%

Skoda 3 3%

Own which car at present

INTERPRETATION

The chart reveals that in Lucknow city 41% of the people states that they prefer Maruti, that

is Maruti is still their first choice as it also suits their demand as well as pocket of most of the

people, 21% say that they own Tata vehicle while 18% of people have Hyundai. In last 10

years the drastic changes has been seen the automobile sector, compannies are giving a tough

cut throat competition to their competitiors by giving lucrative offers to the customers.

3.) What factors influence you to buy car?

TATA MOTORS LTD. 33

Factors No. of

RespondentsPercentage

Reliability of brand 14 14%Safety 17 17%Price 9 9%After Sales Services 26 26%Fuel Efficient 34 34%

Factors which influences to buy a car

INTERPRETATION

This chart focuses on the factors that infuences the respondents to buy a vehicle.

34% of respondents told that they would like to go for the fuel efficient vehicle,26 % of

people said that after sales service is very important 17% said that safety is also an important

aspect.Hence company should also give priority to such factors and work upon them so that

they can attract more number of customers.

4.) Do you plan to buy a SUV in future ?

TATA MOTORS LTD. 34

Respond No. of

respondentsPercentage

YES 68 68%

NO 32 32%

Planning to buy a SUV

INTERPRETATION

This chart represents the market potential. It shows that there are 68% of the respondents who

are planning to buy an SUV in near future. By this company can approximately estimate their

potential customers in the market. It was also seen that most of the people who want to buy

SUV mainly belongs from business class and political background.

5.) If yes, then which one ?

Vehicle No. of Respondents

Percentage

Mahindra Scorpio 35 35%

Tata Safari 52 52%

Toyota Fortuner 6 6%

Mitsubishi Pajero 3 3%

Ford Endeavour 4 4%

Among the following which one

TATA MOTORS LTD. 35

INTERPRETATION

This chart shows that 52% of the respondents prefer Safari due to following reason- :

The vehicle is relatively cheaper in its segment that is SUV. The range starts from

Rs.9,18,000 which is quite less as compared to to other vehicles in SUV segment.

The performance of the vehicle is quite good and it suits the rough and tough

conditions of the roads as well.

Many features are also there like vehicle is qiute spacious, Roof A C which is very

rarely found , G P S Navigation system, etc.

The looks of the vehicle are also qutie attractive.

All these features keep Safari ahead of other vehicles although Mahindra Scorpio gives

tough competition to it.Other SUVs like Fortuner, Pajero and Endeavour and they are still

behind.

6.) What percentage of your income would u like to spend on buying a SUV?

TATA MOTORS LTD. 36

Percentage of

Income

No. of

Respondents

Percentage

35%-45% 31 31%

45%-55% 49 49%

55%-65% 13 13%

65% and

Above

7 7%

Percentage of income planning to spend

INTERPRETATION

This graph represents the percentage of monthly income that respondents want to spend

while purchasing a SUV. 49% of the respondents said that they can afford to spend between

45% to 55% of in purchasing of the vehicle.31% said that they can spend between 35%to

45%.of their income. Respondents also showed their intrest in financing of a vehicle from the

company as they charge low rate of intrest as compared to private banks.

7.) Have you ever purchased a Tata vehicle before ?

Repond No. Of

Respondents

Percentage

YES 58 58%

NO 42 42%

TATA MOTORS LTD. 37

Already have Tata Vehicle

INTERPRETATION

This chart represents that 58% of the respondents are already using Tata vehicles while 42%

say that they use vehicles of other company.Thus it represents that there is good scope for the

company in the SUV segment as 58% of the respondents own a Tata vehicle.

8.) Are you satisfied with it ?

Respond NO. of

Respondents

Percentage

YES 81 81%

NO 19 19%

Satisfied with your vehicle

TATA MOTORS LTD. 38

INTERPRETATION

This chart shows the data of all those respondents who owns a Tata vehicle .81% of the

respondents say that they are satisfied with the vehicle on the various parameters like

mileage, maintenance cost, easy availability of spare parts and service of a vehicle.Hence

19% of respondents are not really happy with the performance, service after sales etc.

9.) According to you, which is the best source of advertisements of Tata Motors?

Source of Advertisement No. of Respondent Percentage

News paper 13 13%

T.V ad 18 18%

Trade show 4 4%

Internet 2 2%

Peer group 38 38%

Personal approach to dealer 25 25%

Source of advertisement you find best

TATA MOTORS LTD. 39

INTERPRETATION

This chart mainly shows the various sources of the advertisements which has been opted by

the company so that the company can know which is the best source of advertisement that

will benefit them the most. It was found that 38% of people for peer group that is the most

suitable one, in this people roughly of same age group, equal status share their thought in an

informal manner. Thus new customers are generally more motivated by the people who are

already using Tata vehicle. It was also found that only 2 % obtained knowledge from internet

due to lack of knowledge and some who used also did not find the information up to the mark

while 25% of the people are satisfied by the dealers in the city as they get relevant

information about the product.

10.) Under what sales promotion schemes would you like to buy a car?

Schemes No. of Respondents Percentage

Finance deals 24 24%

Free Gift Hampers 12 12%

Lucky Draws 6 6%

Discounted Prizes 8 8%

Product Demonstration 11 11%

Festive Season Offers 39 39%

TATA MOTORS LTD. 40

Promotional Scheme in which you prefer to buy a car

INTERPRETATION

This chart represents the promotional schemes, the main objective of this question is to know

that under what scheme respondents would like to buy a car, and hence it noticed that 39% of

the respondents say that they would like to buy a vehicle in festive season as many lucrative

offers and discounts are offered by the company. It is also seen that even at the time of

festivals the purchasing power of the customers is more hence by giving discounts and

schemes companies are able to get large number of customers.

11.) What according to you matter most while purchasing ‘any’ vehicle?

Features No. of Respondent Percentage

Looks 22 22%

Technology 9 9%

After sales service 21 21%

Engine performance 8 8%

Mileage 40 40%

TATA MOTORS LTD. 41

Feature that matter the most

INTERPRETATION

This chart shows that 40% of the respondents give priority to the mileage of a vehicle that is

mileage is an important feature for them. While 22% and 21% say that looks and after sales

service is important for them.

Thus India is a country where people are highly obsessed with mileage, hence they want

vehicle with good mileage and company should focus on it. Hence the motive of this question

was mainly to know that what mainly customer want and it was found that mileage play an

important role.

12.) Which all additional information you want in our advertisements?

Additional Information No. of Respondent Percentage

Performance 38 38%

Free accessories 4 4%

Resale Value 8 8%

Extended warranty 6 6%

Service 14 14%

TATA MOTORS LTD. 42

Insurance 10 10%

Test Drive 20 20%

Additional information you want to know from our Advertisements

INTERPRETATION

This chart gives a clear picture of some additional things which customer wants to know. By

this the company came to know that customer is also interested in knowing these following

things like 38% say that performance , 20% test drive 10% insurance etc. Performance

basically comprises of higher engine output (power), enhanced braking and suspension

systems, all these are the hallmarks of high-performance

13.) What all feature matter the most when you purchase SUV?

Attributes No. of Respondent Percentage

Resale Value 18 18%

Interior 23 23%

Comfort 17 17%

Safety 37 37%

Boot Space 5 5%

TATA MOTORS LTD. 43

Features you seek in a SUV

INTERPRETATION

This chart represents the main features that people seek in SUV. 37% of the respondents said

that safety is the one of the main and major thing that they look for, 17% said that vehicle

should be comfortable mainly in long routes.18% found that resale value is important

according to them.

14.) How effective you find the overall Tata utility vehicle?

Effective No. of Respondents Percentage

Fair 26 26%

Good 38 38%

Excellent 36 36%

Overall Rating of vehicle

TATA MOTORS LTD. 44

INTERPRETATION

The chart shows that 36% of the respondents found it excellent, 38% said that it was good

while 26 % found it fair. Most of the respondents who marked their choice as good said

that Tata should concentrate more on their finishing as vehicles are good but they lag in

finishing.

TATA MOTORS LTD. 45

CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS

TATA MOTORS LTD. 46

1. It has been found that Maruti Suzuki is still ahead in the market as 44% of respondents

have Maruti vehicle. Next comes Tata, as 21% respondents said that they own a Tata

vehicle while 18% respondents selected Hyundai as their present vehicle.

2. It has been found that Safari is the most preferred SUV in U.P as it suits the pocket of

many people and it’s best suitable too for the rough and tough surface area at an affordable

price.

3. It has been also observed that most of the respondents found the utility vehicles of Tata

motors up to the mark as they look forward to purchase it in near future.

4. Most the customers who are using Tata vehicle are satisfied with it.

5. Respondents like Safari more due to its price; mileage and comfort feature although

Mahindra Scorpio is a tough competitor in this segment.

6. People likes the look of the Tata followed by its after sale services and less people like

the technology and engine performance.

7. Respondents prefer purchasing of vehicle more in festive season as various discounts

and offers are there which they found quite beneficial.

8. Performance is the key factor that customers is interested in seeking in the product along

with this they want more information on test drive, insurance, resale value etc.

9. The feature that respondents seek most in their vehicle is the mileage followed by the

space and comfort as Tata vehicles has great comfort zone. There is also boot space

prevailing in their vehicles which customer really like but interior are not much preferred

by respondents and they want change in that category. Safety is also necessary aspect

which respondents are looking forward.

10. The overall feedback is really good of Tata’s vehicles by the respondents and many of

them even considered excellent in overall preference. They are all happy with Tata

vehicles as they considered it as value for money.

TATA MOTORS LTD. 47

CONCLUSION

The exhaustive research in the field of selling strategies UV segment threw up some

interesting trends which can be seen in the above analysis. A general impression that is

gathered during Data collection was the new innovative techniques and ideas that company

should generate regarding its advertisements and to keenly observe the points where they are

not up to the mark so that they can improve upon those parameters and provide best to their

customer.

Tata’s sports utility vehicle is found to be cheaper in their segment that’s why it is the

first choice of the customer.

It was also concluded that Tata Safari is the most preferred SUV in the city because of

its various features like looks, space, price, interior, mileage etc. although Mahindra

Scorpio is its tough competitor and both the vehicles are tough competitors of each

other.

The selling strategies and the market techniques are found to be up to the mark.

People are impressed by the marketing and advertising campaigns of Tata Motors. A

high penetration of print, radio and Television Ad campaigns over the years is

beginning to have its impact now on the customers.

Respondents want a SUV with good mileage that is they give priority to mileage. It is

one of the major things as the price of petrol and diesel are continuously increasing

thus it mileage of the vehicle play important role.

SUV’S of Tata are quite fuel efficient, spacious and comfortable and the price of the

vehicle is also affordable.

Customers are happy with the performance of the vehicle and the after sales service

although they found a maintenance bit high once they are through with free services.

New selling strategies can also be developed by the company like:

a) Presently social networking sites are playing major role thus company can target

huge number of people through it.

b) Secondly all the information about the various schemes and discounts should be

sent to customers via sms so that they can come to know about the various attractive

offers made by the company. It also a cheap and easy method to reach huge mass.

c) Presently company can also display their vehicles at shopping malls as huge

number of people visit there. Thus people can avail information from there also.

TATA MOTORS LTD. 48

d) Company should also take regular feedback from their customers about the various

aspects like performance, after sales service etc.

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RECOMMENDATIONS

This effort for the innovation in sales promotion of car will help the road shows, TV

Advertisement, Mouth publicity etc. And other thing is provide some offers like Discount,

Diwali offers, Free Gift like music system, Accessories etc. My project is a key to open the

door of greater comfort to the middle segment. In this age of automotive sector that is given

luxury car in low prices they will blow like sun and Tata motors prices luxury car.

The customers of Tata motors are brand loyal with only a small percent want to shift over

to other brands. Trying of other brands by customers is mainly because the customer

wants to try something new.

The performance of Tata motors good in comparison to other brands.

Mileage is the basic feature influencing brand loyalty.

The best selling product of luxury car is safari and least selling is Grande hence company

should do something about that.

The competition of Tata Safari is majorly with Mahindra Scorpio.

Due to high brand loyalty the customers of Safari recommend it product to others Like

Tata Motors.

The customers are satisfied with the product range of Tata motors.

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APPENDIX

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QUESTIONNAIRE

Name & Address of the customer

Occupation Other Vehicle Owned

Age

1. What are your monthly earnings?

Rs 30,000-50,000 Rs 51,000-1, 00,000 above Rs 1, 00,000

2. - Which car do you own at present ?

(1) Maruti (2) Hyundai (3) Ford (4) Tata (5) Chevrolet

(6) Skoda

3. - What factors influence you to buy car?

Factors Percentage(Tick)

Reliability of brandSafety PriceAfter Sales ServicesFuel Efficient

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4. - DO you plan to buy SUV in future?

(1) Yes (2) No

5. - If yes then which one?

(1) Mahindra Scorpio (2) Tata Safari (3) Toyota Fortuner

(4) Mitsubishi Pajero (3) Ford Endeavour

6. - What percentage of your income would u like to spend on buying a SUV?

Percentage Respondents

35%-45%

45%-55%

55%-65%

65% and

Above

7. - Have you ever purchased a Tata’s any car before ?

YES NO

8.- Are you satisfied with it ?

YES NO

9. - According to you, which is the best source of avertissements of Tata Motors?

(1) Newspaper (2) T.V ad (3) Trade Show (4) Internet

(5) Peer Group (6) Personal approach to dealer

10. - Under what sales promotion schemes would you like to buy a car?

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Finance deals

Free Gift Hampers

Lucky Draws

Discounted Prizes

Product Demonstration

Festive Season Offers

11. - What according to you matter most while purchasing ‘any’ vehicle?

Features No. of respondent

Looks

Technology

After sales service

Engine performance

Mileage

12. – Which all additional information you want in our advertisements?

No. of respondent

Performance

Free accessories

Resale Value

Extended warranty

Service

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Insurance

Test Drive

13. - What all feature matter the most when you purchase SUV?

Attributes No. of respondent

Resale Value

Interior

Comfort

Safety

Boot Space

14. - How effective you find the overall Tata’s vehicle?

Good Fair Excellent

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BIBLIOGRAPHY

WEBSITES REFERRED

o www.thehindubusinessline.com,15 June 2011

o www.valueresearch,26 may 2011

o www.Yahoofinance.com,11 July 2011

o Tata Motors' Official Website,25 may 2011

o http://www.capitaline.com   ,18 June 2011

o http://www.tatamotors.com/our_world/press_releases.php?

ID=458&action=Pull  

o http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow 

o htttp://www.moneycontrol/com/tata-group/tatamotors

o http://www.yahoofinance.com/tatamotors

o http://www.carwale.com/research/cars/tata

BOOKS REFERRED

o Philip Kotler, Kevin Keller (2009),Marketing Management (Thirteenth Edition)

o Marketing Management, the McGraw. Hill Company Rajan Saxena (Third Edition)

o Berman, Berry and Joel r Evans (Oct- 1997) Marketing Management: A

strategic approach 8th edition Englewood cliffs NJ printice hall

o Country analysis 1997 “ A framework to identify and evaluate the national business

environment” Harvard business review

MAGAZINE REFERRED

o Business World, Issue Dated 01-08-2011, Carl-Peter Forster, Managing Director &

Group CEO, Tata Motors (BW pic by Satheesh Nair)

o Business India, Rivals eat into Tata Motors, Maruti's sales in June, 2 Jul 2011 | 3:48

am

o Business Today, volume May 2011,dated:25 may 2011

o Motor India, volume october2011

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