A COMPARATIVE STUDY BETWEEN MARUTI AND TATA

INTRODUCTION

THE CAR MARKET OF INDIA

The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has been contributing to the automobile market to a great extent. Many foreign companies have been investing in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. Total sales of major car manufacturers in India registered a figure of 0.674 million units at the end of March, 2007. The number of car exports in India was 39,295 units. General Motors, Maruti, and TATA MOTORS accounted for 60 percent of the market sales at the end of April, 2007. There has been an increase in the purchase of motorcycles and cars both, in the rural as well as urban areas. Maruti Suzuki is Indias No. 1 customer satisfaction car company. Its sale is more than 50% of care of Indian car market. But now it is getting a good competition with other new car company and foreign companies and its sales is going down because other car companies are trying to present different types of new car in different segment. So in our study in we had tried to study Maruti Suzuki segmentation of cars and its sales trend and its effect on customer. This project is all about segmentation and sales trend study of Maruti Suzuki. Through our study we are trying to analyze the customer demand in different segments and advancement required in Marutis segmentation. We are also analyzing Maruti Suzuki sales trend. We had visited different dealers of Maruti Suzuki in pune and asked some question and based on that we are tying to analyze the data and sales trend of Maruti Suzuki. We had also collected some secondary data of different study done on Maruti Suzuki and based on that we are trying to present the sales trend analysis of Maruti Suzuki. 3

And if we talk about TATA detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the peoples car as it is satisfactory on all other parameters: knowledgeable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good. Indian Car Market attained a huge volume over the years with the increase in the opportunity for new investments in the manufacturing of cars in India. The increasing GDP rate, the rising per capita income, growing population and high ownership capacity led to the boom in the Indian Car Market. Causes for the boomFrom the last 15 years due to the liberalization of the Indian economy the entire market scenario have undergone a change with the rich growing richer with time. Moreover, the rise in the income level, change in the general lifestyle, increase in foreign traveling and the easy accessibility of car finance on the basis of affordable installments and interest rates have been the main driving forces behind the flourishing Indian Car Market.

Car Manufacturers In IndiaOnce the most popular car dominating the Indian Car Market was the Ambassador, till the Indian car maker Maruti in the collaboration with the Japanese car giant Suzuki brought a change in the Indian Car Market. However, today, there are numerous car companies with new models coming up everyday in the car market of India. Some of the leading brands are like, Hindustan Motors, Reva Electric Car Co., Daimler Chrysler India Private Ltd, Fiat India Private Ltd., Ford India Ltd., General Motors India, TATA MOTORS Siel Cars India Ltd., Hyundai Motors India Ltd.,Toyota Kirloskar Motor Ltd. and Skoda Auto India Private Ltd. Luxury and super luxury car marketIn the Indian Car Market demand for luxury and super luxury cars are increasing continuously. Their attractive designs and brand names are the main reasons for the growing need among many Indians who can afford these cars. Several luxury models are to be launched in India in the coming years. As a result Indian Car Market is no longer alien to the luxury car companies like Mercedes Benz, Ferrari, Aston Martin and RollsRoyce. Small car marketHowever, it is the small car segment which still rules the Indian Car Market. During 200607, over 7.5 lakh compact cars were sold, with total sales record being around 1.2 million. Taking into account the bustling business in the small car sector in the car market of India, TATA MOTORS Siel Cars has planned to introduce an entry level compact car, in competition with the small cars like Hyundai Santro, Maruti Wagon R, Zen Estilo and Chevrolet Spark. Another company, Skoda Auto India Private Ltd., announced the launching of their first new small car model Skodafabia, in the car market of India this year. Governmental strategies:

The Government of India have taken some initiatives like the liberalizing the foreign exchange and equity regulations, relaxing the tariffs on imports and redesigning the banking policies which have boosted the Indian Car Market to a great extent. Thus, the demand for all types of cars from luxurious models, SUVs to mini-cars have reached a height in the Indian Car Market. Future prospectsThe attractive prospects of the Indian Car Market have prepared the ground for a large number of multi-national automobile companies from Japan, U. S. A., and Europe to come here and work in collaboration with the Indian firms. It is expected that with this growth rate of the Indian Car Market, it will be the third largest automobile market of the world by 2030 after China and the US.

OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

The research project is mainly divided into two parts first one is study about segmentation of cars and its market and the second is comparision between Tata Motors and Maruti Suzuki. The subjects under these two parts are 1. General study about segmentation of cars and its market a. To study about car market of India. b. To study about segmentation of car on different basses c. To study about Tata Motors and Maruti Suzuki. 2. comparision between Tata Motors and Maruti Suzuki. a. Study of swot matrix of these comapnies. b. Study of marketing strategy of these company The study will end with a conclusion giving a reflection of whole project and recommendations on the basis of data findings.

PURPOSE OF THE STUDY

PURPOSE OF THE STUDY

This project will be very helpful to us to know The TATA MOTORS The MARUTI SUZUKI The marketing strategy of bothe the companies

This project will be an information guide to the company for understanding the marketing trends of Maruti and TATA.

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Vision

Jagdish Khattar (section In Maruti Udyog)

Jagdish Khattar is the former Managing Director of Maruti Udyog Limited .

Zen (disambiguation)

Zen Vision M , a portable media player developed by Creative ... Maruti Zen

Haryana

Gurgaon is home to Maruti Udyog Limited , India's largest automobile

Hyundai Motor Company

In the 2007 Strategic Vision Total Quality Awards, Hyundai Motor ...

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Mission

The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it

'To Munsiyari on a Maruti 800', Uttarakhand Himalayas

Maruti Suzuki plant in Manesar Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.

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Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. The company exports more than 50,000 cars annually and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 14 models, Maruti 800,

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Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.[citation needed] Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.

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EXECUTIVE SUMMERY
The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has been contributing to the automobile market to a great extent. Many foreign companies have been investing in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. Total sales of major car manufacturers in India registered a figure of 0.674 million units at the end of March, 2007. The number of car exports in India was 39,295 units. General Motors, Maruti, and TATA MOTORS accounted for 60 percent of the market sales at the end of April, 2007. There has been an increase in the purchase of motorcycles and cars both, in the rural as well as urban areas. Maruti Suzuki is Indias No. 1 customer satisfaction car company. Its sale is more than 50% of care of Indian car market. But now it is getting a good competition with other new car company and foreign companies and its sales is going down because other car companies are trying to present different types of new car in different segment. So in our study in we had tried to study Maruti Suzuki segmentation of cars and its sales trend and its effect on customer. This project is all about segmentation and sales trend study of Maruti Suzuki. Through our study we are trying to analyze the customer demand in different segments and advancement required in Marutis segmentation. We are also analyzing Maruti Suzuki sales trend. We had visited different dealers of Maruti Suzuki in pune and asked some question and based on that we are tying to analyze the data and sales trend of Maruti Suzuki. We had also collected some secondary data of different study done on Maruti Suzuki and based on that we are trying to present the sales trend analysis of Maruti Suzuki. 15

And if we talk about TATA detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the peoples car as it is satisfactory on all other parameters: knowledgeable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good.

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INTRODUCTION TO THE COMPANY

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INTRODUCTION TO THE COMPANY

TATA MOTORS Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of which 61 per cent is from business outside India. The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Groups 27 publicly listed enterprises have a combined market capitalization of some $60 billion, among the highest among Indian business houses, and a shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications. The Groups major companies are beginning to be counted globally. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the worlds second largest manufacturer of soda ash. Tata Communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK-based consultancy

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firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Businessweek ranked the Group sixth amongst the Worlds Most Innovative Companies. And the Reputation Institute, USA, recently rated it as the Worlds Sixth Most Reputed Firm. Founded by Jamsetji Tata in 1868, the Tata Groups early years were inspired by the spirit of nationalism. The Group pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Groups pioneering spirit has been showcased by companies like Tata Consultancy Services, Indias first software company, which pioneered the international delivery model, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, for commercial launch by end of 2008. The Tata Group has always believed in returning wealth to the society it serves. Twothirds of the equity of Tata Sons, the Tata Group.s promoter company, is held by philanthropic trusts which have created national institutions in science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined developmentrelated expenditure of the Trusts and the companies amounts to around 4 per cent of the Groups net profits. Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 is ranked the worlds fourth fastest. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its shareholders, its employees and wider society.

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CORE VALUES OF TATA At the Tata Group our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities. This requires us to grow aggressively in focused areas of business. Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from employees and companies. The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance Group synergy and becoming globally competitive is the route to sustained growth and long-term success. FIVE CORE VALUES The Tata Group has always sought to be a value-driven organization. These values continue to direct the Groups growth and businesses. The five core Tata values underpinning the way we do business are: Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve. Excellence: We must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide. Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

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Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over. TATA MOTORS LIMITED The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, With manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. Tata motors passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2003-2007, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called A share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle The Ford Motor Companys.

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It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units, they are Tata Daewoo commercial vehicle company, HV transmissions, Tata motors finance, Tata technologies and TELCO construction equipment, the sales of the stakes would possible conclude by June 2009, helping it to raise further funds for this acquisition, earlier in July it sold 24% stake in an Auto component unit to a group firm and booked a profit of Rs. 110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS. 486 crores to Tata Sons, the holding company of whole Tata group firms. "The Company aims to monetize a part of its funds through a phased divestment of certain investments preferably as inter-group sales wherever possible at current market prices in the coming six to eight months," the money that will be released from these investments will become a part of the capital to be lifted for repayment of the bridging loan taken for the Jaguar- Land Rover acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March from a consortium of banks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28th may its share value has fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at 15, 049.86 points. The Analysts say that, this is a strategic move taken by Tata Motors because it is allowing the company to make a lot of profit even when the market is in the financial pressure allows Tata sons to raise its wager in group companies. If the company will follow the above mentioned trends then possibly it can raise its finances in a low liquidity and high interest rate set-up.

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MARUTI SUZUKI Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India. On 17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries. The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.

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Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983. Maruti Suzuki offers 10 models, ranging from the peoples car, Maruti 800, for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand Vitara. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient.

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Maruti is clearly an employer of choice for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners. The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for seven years in a row in annual survey by J D Power Asia Pacific. Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to make a peoples car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Marutis mission to motorize India.

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SEGMENTATION OF CAR

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Car classification Car classification is subjective since many vehicles fall into multiple categories or do not fit well into any. Not all car types are common in all countries and names for the same vehicle can differ by region. Furthermore, some descriptions may be interpreted differently in different places. Broadly speaking, there are a set of classifications which are widely understood in North America, and another set which are somewhat understood in English-speaking contexts in Europe. Some terms borrowed from non-English languages may have different meanings when used in their native language. Classification systems The following are the most commonly used classifications. Where applicable, the equivalent Euro NCAP classifications are shown. Car rental companies often use the ACRISS Car Classification Code. The United States Environmental Protection Agency (US EPA) has another set of classification rules based on interior passenger and cargo volumes. A similar set of classes is used by the Canadian EPA. In Australia, the Federal Chamber of Automotive Industries publishes its own classifications. Car classification American English Microcar Subcompact car Compact car Mid-size car British English Segment Euro NCAP Examples Microcar, Bubble car City car Supermini Small car Large car Asegment Bsegment segment car family Dsegment car Supermini BMW Isetta, Smart Fortwo Daewoo Matiz, Renault Twingo, Toyota Aygo, VW Lupo Hyundai Accent, Ford Fiesta, Opel Corsa, Suzuki Swift Small family Ford Focus, Toyota Corolla, Opel Astra, VW Golf Toyota Avensis, VW Passat Large family Ford Mondeo, Opel Vectra,

family C-

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Entry-level luxury car Full-size car

Compact executive car

Audi A4, BMW 3 Series, Mercedes C-Class, Volvo S60 Ford Crown Victoria, Holden Commodore, Executive car Chrysler 300C Audi A6, BMW 5 Series, Jaguar XF, Mercedes E-Class Audi A8, BMW 7 Series, Jaguar XJ, Mercedes S-Class Chevrolet Corvette C6, Porsche 911 Jaguar XK, Maserati GranTurismo Bugatti Veyron, Ferrari Enzo, Lamborghini Gallardo Mercedes CLK, Volvo C70, VW Eos Audi TT, BMW Z4, Porsche Boxster, Lotus Elise Peugeot Roomster MSmall MPV Opel Meriva, Fiat Idea, Ford Fusion Mazda5, Opel Zafira, Renault Scnic, VW Touran Large MPV J-segment Small Ford Galaxy, Toyota Previa, Renault Espace Terios, Mitsubishi Pajero iO , Suzuki Jimny BMW X3, Ford Escape, TATA MOTORS CR-V, Subaru Forester, Toyota RAV4 Partner, koda Opel Omega,

Executive car Mid-size luxury car Full-size luxury car Sports car Grand tourer Supercar Convertible Roadster Compact minivan Minivan Mini SUV Luxury car Sports car Grand tourer Supercar Convertible Roadster Leisure activity vehicle Mini MPV

Esegment

Fsegment

Ssegment

Roadster sports

Compact MPV, segment Midi MPV Large MPV Mini 4x4

Off- Daihatsu

Road 4x4

Compact SUV Compact 4x4

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Mid-size SUV

Coup SUV

Isuzu VehiCROSS, SsangYong Actyon, BMW X6 Ford Explorer, BMW X5, Jeep Grand Cherokee, VW Touareg Cadillac Escalade, Chevrolet Suburban, Range Rover, Toyota Land Cruiser Ford F-150, Mitsubishi

Large 4x4 Full-size SUV

Large

Off-

Road 4x4

Pickup truck

Pick-up

Pick-up

Triton/L200, Nissan Navara

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods

RESEARCH DESIGN
A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

Types of research is: Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There

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is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut , there are some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such studies are done in live situations like communities, schools, factories, and organizations. Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such needs to be flexile in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then.

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TYPE OF DATA COLLECTED There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. (Source: Research Methodology, By C. R. Kothari) PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection. SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, competitors websites etc, newspaper articles etc.

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SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. SAMPLE SIZE The sample size for the survey conducted was 150 respondents. This sample size was taken on 95% confidence level and 6 significant level. SAMPLING TECHNIQUE Definite sampling technique was used in the survey conducted

Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey.

Pie chart:
This is very useful diagram to represent data , which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.

Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent. 35

Preparation of report:
The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

36

FIANCIAL ANALYSIS OF TATA MOTORS AND MARUTI SUZUKI

37

38

SWOT ANALYSIS

39

BALANCE SHEET OF MARUTI SUZUKI

Balance Sheet of Maruti Suzuki India ------------------- in Rs. Cr. ------------------Mar '11 Mar '10 Mar '09 Mar '08 12 mths 12 mths 12 mths 12 mths 144.50 144.50 0.00 0.00 13,723.00 0.00 13,867.50 31.20 278.10 309.30 14,176.80 Mar '11 12 mths 11,737.70 6,208.30 5,529.40 1,428.60 5,106.70 1,415.00 893.30 95.50 2,403.80 1,626.30 2,413.00 6,443.10 0.00 3,805.20 525.80 4,331.00 2,112.10 0.00 144.50 144.50 0.00 0.00 11,690.60 0.00 11,835.10 26.50 794.90 821.40 12,656.50 Mar '10 12 mths 10,406.70 5,382.00 5,024.70 387.60 7,176.60 1,208.80 809.90 98.20 2,116.90 1,739.10 0.00 3,856.00 0.00 3,160.00 628.40 3,788.40 67.60 0.00 144.50 144.50 0.00 0.00 9,200.40 0.00 9,344.90 0.10 698.80 698.90 10,043.80 Mar '09 12 mths 8,720.60 4,649.80 4,070.80 861.30 3,173.30 902.30 918.90 239.00 2,060.20 1,809.80 1,700.00 5,570.00 0.00 3,250.90 380.70 3,631.60 1,938.40 0.00 144.50 144.50 0.00 0.00 8,270.90 0.00 8,415.40 0.10 900.10 900.20 9,315.60 Mar '08 12 mths 7,285.30 3,988.80 3,296.50 736.30 5,180.70 1,038.00 655.50 324.00 2,017.50 1,173.00 0.00 3,190.50 0.00 2,718.90 369.50 3,088.40 102.10 0.00

M 12

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

1 1

6,7

6,8

5 6 7,4 M 12

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses

6,1 3,4 2,6 2 3,4 7 7 1 1,5 1,0 1,3 3,9

2,2 4 2,7 1,1

40

Total Assets Contingent Liabilities Book Value (Rs)

14,176.80 5,450.60 479.99

12,656.50 3,657.20 409.65

10,043.80 1,901.70 323.45

9,315.60 2,734.20 291.28

7,4 2,0 2

41

CASH FLOW STATEMENT Maruti Suzuki India Cash Flow Previous Years ------------------- in Rs. Cr. ------------------Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 3108.80 3050.30 73.40 -713.40 2410.30 98.20 2508.50 12 mths 3592.50 2887.40 -4783.30 55.10 -1840.80 1939.00 98.20 12 mths 1675.80 1193.30 951.40 -536.20 1608.50 330.50 1939.00 12 mths 2503.00 1830.40 -3061.50 132.30 -1098.80 1422.80 324.00 12 mths 2279.80 2028.00 -2436.80 430.00 21.20 1401.60 1422.80

42

PROFIT AND LOSS

Profit & Loss account

------------------- in Rs. Cr. ------------------Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

40,865.50 32,174.10 23,381.50 21,200.40 17,358.40 4,304.00 2,856.40 2,652.10 3,133.60 2,552.00 36,561.50 29,317.70 20,729.40 18,066.80 14,806.40 784.60 662.00 491.70 494.00 338.10 73.20 200.90 -356.60 336.30 -200.70 37,419.30 30,180.60 20,864.50 18,897.10 14,943.80 28,880.00 22,636.30 15,983.20 13,958.30 10,863.00 210.20 216.60 193.60 147.30 97.40 703.60 545.60 471.10 356.20 288.40 1,949.40 1,061.60 716.10 523.30 392.40

1,153.87 1,032.17 817.66 521.48 483.26 289.73 201.73 236.84 287.62 239.44 -25.70 0.00 -22.30 -19.80 -14.30 33,161.10 25,694.00 18,396.20 15,774.40 12,349.60 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 3,824.60 4,486.60 33.50 4,453.10 825.00 0.00 3,628.10 51.10 3,679.20 1,094.90 2,497.60 12 mths 1,976.60 2,468.30 51.00 2,417.30 706.50 0.00 1,710.80 37.90 1,748.70 457.10 1,218.70 12 mths 2,628.70 3,122.70 59.60 3,063.10 568.20 0.00 2,494.90 76.60 2,571.50 763.30 1,730.80 12 mths 2,256.10 2,594.20 37.60 2,556.60 271.40 0.00 2,285.20 33.40 2,318.60 705.30 1,562.00 3,473.60 4,258.20 24.40 4,233.80 1,013.50 0.00 3,220.30 18.90 3,239.20 820.20 2,288.60

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit

43

Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

4,281.10 0.00 216.70 35.10 2,889.10 79.21 150.00 479.99

3,057.70 0.00 173.30 28.80 2,889.10 86.45 120.00 409.65

2,413.00 0.00 101.10 17.20 2,889.10 42.18 70.00 323.45

1,816.10 0.00 144.50 24.80 2,889.10 59.91 100.00 291.28

1,486.60 0.00 130.00 21.90 2,889.10 54.07 90.00 237.23

44

Maruti Suzuki India Key Financial Ratios

Previous Years ------------------- in Rs. Cr. ------------------Mar '11 Mar '10 5.00 6.00 129.38 1,014.77 403.82 -12.74 9.73 9.93 10.78 10.78 8.34 8.34 27.89 21.10 20.29 409.65 409.65 28.80 Mar '09 5.00 3.50 65.89 717.50 318.45 -9.18 5.62 5.77 9.13 9.13 5.72 5.72 17.37 13.04 13.23 323.45 323.45 17.48 Mar '08 5.00 5.00 88.31 625.34 286.28 -14.12 10.70 10.97 11.79 11.79 9.34 9.34 26.18 20.56 19.20 291.28 291.28 27.35 Mar '07 5.00 4.50 76.30 512.49 231.89 -14.88 12.74 16.66 12.08 12.01 10.29 10.22 30.65 22.79 22.63 237.23 237.23 30.74

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%)

5.00 7.50 115.72 1,265.50 474.32 -9.14 6.24 6.37 8.69 8.69 6.13 6.13 21.69 16.50 16.08 479.99 479.99 21.74

45

Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio

1.47 1.14 0.02 0.02 126.04 0.02 167.58 136.33 33.33 42.93 33.33 3.13 2.59 3.13 10.01 4.56 20.80 78.99 11.99 2.62 9.56

0.91 0.68 0.07 0.04 105.39 0.07 130.02 100.18 30.47 33.92 30.47 2.82 2.32 2.82 10.66 5.35 0.83 77.21 12.89 3.12 15.49

1.51 1.26 0.07 0.07 34.21 0.07 48.06 38.75 30.46 26.33 30.46 2.38 2.06 2.38 13.21 3.17 33.66 77.10 11.70 3.56 7.24

0.91 0.66 0.11 0.06 40.93 0.11 50.46 39.57 22.93 25.76 22.93 2.48 1.94 2.48 9.33 12.49 2.03 77.25 10.84 3.10 4.10

1.40 1.13 0.09 0.09 61.01 0.09 68.23 49.76 21.27 21.12 28.76 6.32 1.98 2.41 12.36 6.52 28.61 73.36 12.62 3.37 3.90

11.00 7.62 88.72 92.24

8.09 6.08 91.59 93.74

9.70 6.14 90.44 93.92

9.78 7.36 89.53 92.25

9.72 8.28 90.21 91.67

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AdjustedCash Flow Times

0.10 Mar '11

0.25 Mar '10 86.45 409.65

0.36 Mar '09 42.18 323.45

0.41 Mar '08 59.91 291.28

0.35 Mar '07 54.07 237.23

Earnings Per Share Book Value

79.21 479.99

47

SWOT OF TATA MOTORS

STRENGTHS Tata Motors excels when it comes to innovation through intensive research and development. Their ability to make the least expensive car on the market, the Nano which will retail for $2,500, is far beyond what any other car dealership has created. This innovation gives Tata Motors their main competitive advantage. Tata Motors makes everything from tractor-trailers to the worlds least expensive car. This product diversity grants them a competitive advantage over their competitors because they can satisfy more markets and customer needs. Another strength that Tata Motors possesses is high corporate responsibility. They donate a portion of their profits from stock increases towards a specific charity. This highlights Tata Motors overall desire for community improvement while also emphasizing Tata Motors high morals and values which is something money can not buy. Tata Motors is also a very eco-friendly company. One of their goals is to produce an emission friendly car, and in 2000 Tata Motors launched the first compressed natural air bus. This air bus requires the owner to plug the car into a standard electric plug for four hours to fill the air tanks. This brought the concept of an air-car to reality and the name for this compressed natural air car is OneCAT. OneCAT has no gas costs or fossil fuel emissions which makes it a very attractive car for the more mature markets but also the upper classes in developing countries at this point. It is also a great car to have in highly populated

48

countries, such as China and India, because pollution with its adverse effects is a very large concern. OneCAT also is more efficient that any other present Hybrid car, so when inventors think they have the best product out on the market, they actually do not. There will always be something else to invent or improve on and Tata Motors is a prime example of that. Tata Motors is unique in a way in which when it buys a company. Tata Motors keeps the original management of that company intact. The company that Tata Motors purchases will look exactly the same in terms of management and organizational structure as if it was never purchased by Tata Motors. WEAKNESSES There are strings attached with every new invention and improvement on products. These strings are Tata Motors weaknesses and what other groups perceive as their weaknesses. One weakness that Tata Motors faces is its Although they have made the most

inability to meet safety standards.

inexpensive car out on the market, it has yet to pass all the safety standards which is a legal factor. Some consumers and pessimists inquire as to how Tata Motors can make such a cheap car and withstanding a car accident or not just falling apart after hitting something once. Pessimistic people also want to believe that car manufactures are already doing everything they can to keep costs low for the consumer, and if that is the case, then putting the cheapest car out on the market automatically questions if it is safe to drive. Tata Motors only have been making passenger cars for the approximately last ten years. This can be viewed as a weakness from a customer standpoint since a decade does not seem like a lot to consumers and therefore they will think 49

that Tata Motors is inexperienced car manufacturing. Consumers will wonder how a car manufacturer can be in the market for 10 years and produce the cheapest car out on the market. How can Tata Motors manufacture such a cheap car that

meets emission and safety standards being so young? This causes consumers to be skeptical. Another weakness that Tata Motors faces is within its domestic market. Car sales in India are less than 1 million annually. This draws a problem because Tata Motors may not get the sales that the company hopes for and how can they sell cars to people who are not buying cars? The new and innovative OneCAT still has some rough spots that need to be worked out and one of them is that it has pollutant emissions and greenhouse gas emissions from the generation of electricity used to compress the air. So although it is marketed as being emission free, it technically is not and this is another weakness. Also, OneCAT only goes 62 miles per hour for 56 miles in an urban cycle. This is not very far and Tata Motors will have to improve on this weakness as well as the emission weakness in order to draw more comsumers to this new automobile. OPPORTUNITIES Tata Motors has already opened the doors for many new and innovative ideas, but not only for their company, but their competitors as well which could turn into a threat. One of the major opportunities that Tata Motor faces is that as of right now 90 percent of China and Indias adult population do not own cars, partly because cars are costly and require more expenses after purchased. So the market for a low-priced car is huge which benefits Tata Motors perfectly since 50

they produce the lowest priced car on the market. This is a huge opportunity for Tata Motors because if they can get their feet into that market of people that do not have cars because they cannot afford them, then they will make large profits down the road. Chinas total car sales are estimated at over 8 million dollars annually and they were the worlds second largest car market in 2006. Chinas government forecasts that demand for cars will top 20 million by 2020. With Tata Motors in the market with the cheapest car, Chinas demand for cars will probably increase even more significantly which will in turn increase sales for Tata Motors. Japan, North America, and Europe automobile sales went up over the years because of demand for smaller cars increased. This demand for smaller cars is a great window of opportunity for Tata Motors because not only are their cars small, but they are cheap and environmentally friendly as well. Once people in these countries get Tata Motor automobiles then their automobile sales will continue to rise. As of March 2008 Tata Motors finalized a deal with Ford Motor Company to acquire the British businesses, Jaguar Cars and Land Rover. This is a huge opportunity for Tata Motors since they will acquire the large knowledge base and technologies for producing and marketing luxury vehicles. This acquisition helps them dive into the more mature markets in Japan, Europe and the U.S. The knowledge transfer from these two companies will greatly improve Tata Motors ability to continue to grow and flourish in both developing and developed market segments. THREATS

51

The obvious threat to Tata Motors is intellectual property rights. Tata invented the cheapest car on the market and every automobile manufacturer wants to know how Tata did it. Headhunters are soon going to find out this valuable information and make it available to their own company. This is a huge threat to Tata Motors because at first they had low competition, but once other car manufactures find out how they invented such a low cost car, and then these companies too will jump on board and design their own line of low cost automobiles. On one hand this can be a threat, but on the other it may not affect Tata Motors at all because people will still want to purchase their product since they were the pioneers of all the excitement. Other companies are starting to compete for some of this market share. In fact, the Pakistans Transmission Motor company has built a basic four-wheeler for only $2,100. This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile. This is going to be the beginning of new emerging car manufactures that will be producing low priced cars. Another obvious threat is that dealing with gas prices. Gas prices continue to rise and the Nano requires gas, but those who purchase the Nano probably do not have a lot of money and so if gas prices keep jumping up then that market of consumers will not be able to purchase the car. If OneCAT can be made as cheaply as the Nano then that will benefit the consumers even more because they will get a car that does not run on gas and it will be cheap to purchase. On the other hand, gas company will not want OneCAT to hit the market because there

52

will be no profits to be made off the vehicle. Gas companies have a lot of say over the automobile industry so this could be a big threat. Another main concern that Tata Motors faces is that cheap cars in India will have an adverse effect on pollution and global warming because most of the population will be able to afford the cars. With more people driving cars there will be more accidents and deaths, as well as higher fossil fuels leaked into the environment causing even more pollution then there already is. Tata Motors is family owned and this can potentially cause problems down the road because some family members can become greedy and money hungry. Once they really start to rapidly grow then there may be family feuds and people not pulling their part. Another threat is the whole point of their cars being made with cheap plastic. Are these cars durable? Will they hold together in a head-on collision? As off August 2007 there was no further information on this topic though.

53

SWOT OF MARUTI SUZUKI

Strengths Bigger name in the market Trust of people Established distribution and after sales service Understanding of Indian market Ability to Design product with differentiate features Brand image Experience in knowhow in technology Low maintenance cost of vehicle Weaknesses Lack of experience in foreign market Comparatively new in diesel car People Resistant to upper segment model Heavy import tariff on fully built imported model Exports are not good Global image is not big Opportunities Increased purchasing power of Indian middle class category Government subsidy Tax benefit Prospective buyers in two wheeler segment Great opportunities to grow with Swift and SX4 allover Introduction of more diesel models. The diesel car market is growing. Opportunities to grow by entering into bigger car markets

54

Already a market leader o great opportunity to be the king of the market in every stage of industry. Threats Foreign companies entering into market; so a bigger threat from MNCs. To the market share as many bigger names are coming Competition from second hand cars and Tata Nano Threat from Chinese Manufactures There is hardly any diesel model Rs 1 lakh to 1.5 lakh car

55

Application of porters five force model:

Porters five force analysis is a framework for the industry analysis and business strategy developed by Michael e .porter of Harvard business school in 1979.michael porter provided a framework that model an industry as being influenced by five force. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Porter has identified five competitive forces that shape every industry and every market. these force determine the intensity of competition and hence the profitability and attractiveness of an industry .the objective of the corporate strategy should to modify these competitive force in a way that improve the position of the organization .porters model support analysis of the driving forces of the industry. Based on the information from the competitors survey and 56

analyzing the market this model can help to determine how to influence and to exploit particular characteristics of their industry bargaining power of suppliersasome A Producing industry requires raw materials-labor, components, and other supplies. This requirement leads buyer supplier relationship between the industry and the firms that provide it the raw material used to create products suppliers, if powerful, can exert an influence on the industry, such as selling raw material at a high price to capture some of the industrys profile. Other automobile industries in the proximity of the suppliers may lead t shift of the business of the competitors. Solution Part standardization to avoid complexities in manufacture for the suppiers strong supplier relationships to ensure a smooth production more than one supplier for particular commodities Bargaining power of customer The power of buyers is the impact that customers have on producing industry similar to the bargaining power of sppliers, bargaining power of the customers determine how much pressure on margins and volumes Since the industry is filled with so many option that are price competitive as wellit is ultimately the customer who decides the fate of the company profits. Solution

Increasing customer relationship management and creating customer loyalty may help. Introducing various schemes and promotional schemes i Innovation and understanding the customers needs Significant buyer switching cost

57

Attractive advertising and effective brand management

Threat of new entrants The higher the competition in the industry, the easier it is for other companies to enter the industry. In such a situation the new entrants can change the major determinant of the market environment at any time Today we can see that the automobile market is on a high with Tata coming up with nano priced at rs 1 lakh and wheeler industry giants the bajaj coming into the four wheeler industry. Nissan also plans to enter India in the a segment category which will toughen the competition for other industries. Solution

Innovation to capture untapped markets Use Promotion and branding exercises Use focused marketing efforts.

Threat of substitute A threat from substitute exists if there is an alternative product with lower price or having better performance. This could potentially attract significant proportion of the market and hence reduce potential sales volume for existing players. Similarly to the threat to new entrants, the threat of substitute is determines by force like low brand loyalty of the customers With a good transportation system developing in the country and increasing fuel prices, people are switching to chapter mode of transportation. For example the start of metro railways is a threat to potential profits of the companies. With various companies coming up with cheaper substitute the company needs to be ready for challenges.

58

Solutions:

Conduct regular customer survey to under stand the changing needs of the market. Making cost effective products to meet the demands of the industry Effective market segmentation to ensure maximum profits. Promote the product (projects) more and increase visibility.

Competitive rivalry between existing player For most industries, this is the major determinant of the competitiveness of the industry. sometimes rivals compete aggressively and sometimes rival compete in non price dimensions such as innovation, marketing etc. The closest rivals of TATA MOTORS city where Toyota corolla altis, fiat linea in terms of style, ford. fiesta in terms of value for money and Hyundai verma may pose a serious competition to the TATA MOTORS city A part of fiat linea having low power of 90ps as compared to 118ps of TATA MOTORS city .it can become a tough challenger for the TATA MOTORS city because of its styling ,features, a strong network with help of the Tatas and competitive price. For TATA MOTORS I am sure it will enjoy this challenger and be the winner at the end. Solution

Create product differentiation: improving features, implementing innovation in the manufacturing process and in the product it self. Changing price:raising or lowering price to gain a temporary advantage. Creatively usinggg channel of distribution

59

The critical issue facing the Indian passenger car industry is the attainment of break-even volumes. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. The amount of investment in capacities by passenger car manufacturers in turn depends on the production Threat from the new players: Increasing Most of the major global players are present in the Indian market; few more are expected to enter. Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital. Access to distribution network is important. Lower tariffs in post WTO may expose Indian companies to threat of imports.

Market strength of suppliers: Low A large number of automotive components suppliers. Automotive players are rationalizing their vendor base to achieve consistency in quality.

Rivalry within the industry: High There is keen competition in select segments. (compact and mid size segments). New multinational players may enter the market.

Market strength of consumers: Increasing Increased awareness among consumers has increased expectations. Thus the ability to innovate is critical. Product differentiation via new features, improved performance and after-sales support is critical. Increased competitive intensity has limited the pricing power of manufacturers.

Threat from substitutes: Low to medium With consumer preferences changing, inter product substitution is taking place (Mini cars are being replaced by compact or mid sized cars). strategies of the car manufacturers. Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities for

60

semi knocked down kits or complete knocked down kits. In recent years, even though the ratio of sales to capacity (an important indicator of the ability to reach break-even volumes) of the domestic car manufacturers have improved, it is still low for quite a few car manufacturers in India. India is also likely to increasingly serve as the sourcing base for global automotive companies, and automotive exports are likely to gain increasing importance over the medium term. However, the growth rates are likely to vary across segments. Although the Mini segment is expected to sustain volumes, it is likely to continue losing market share; growth in the medium term is expected to be led largely by the Compact and Mid-range segments. Additionally, in terms of engine capacity, the Indian passenger car market is moving towards cars of higher capacity. This apart, competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Models similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.

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The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983. Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand

62

Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti is clearly an employer of choice for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners. The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for nine years in a row in annual survey by J D Power Asia Pacific. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Marutis mission to motorise India. Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered negligible.

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In the initial rounds of discussion the giants had their bosses present and in the later rounds related to the technical discussions executives of these automobile giants were present. Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds of discussion. Osamu in an article writes that it subtly massaged their (Indian delegation) egos and also convinced them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to ensure the government about its sincerity on the project. Suzuki in return received a lot of help from the government in such matters as import clearances for manufacturing equipment (against the wishes of the Indian machine tool industry then and its own socialistic ideology), land purchase at government prices for setting up the factory Gurgaon and reduced or removal of excise tariffs. This helped Suzuki conscientiously nurse Maruti through its infancy to become one of its flagship ventu

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FINDINGS AND CONCLUSION

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FINDINGS AND CONCLUSION

1. Indian car customers are not aware about the safety and power of car they are looking for look of the car and fuel efficiency. 2. The figure shows that Maruti Suzuki is the master of todays car market followed by Hyundai and TATA MOTORS Siel. 3. Generally the customers are satisfied with their own current car 4. Maruti is most popular brand in the India flowed by Hyundai, Tata , TATA MOTORS etc. 5. Maximum customer in India are looking for the car priced between 4 to 6 lacks. 6. This shows that most of the people are looking for city, civic and swift as there new car. 7. Customers are influenced by internet, dealer and friends for information about car. 8. Customers are influenced by family members for purchasing a new car 9. Petrol is most preferred fuel for a car. 10. Times of India and Hindustan times are most read news paper 11. Generally peoples are viewing the sports and news channel 12. In India the average annual income of the people are 2.5 to 5 lacks per annum.

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BIBLIOGRAPHY
Books
Marketing management: analysis, planning, implementation, and control by Philip Kotler - Business & Economics - 1988 Marketing Management by Philip Kotler, Kevin Keller - Business & Economics 2008 Research methodology: a step-by-step guide for beginners by Ranjit Kumar - Social Science - 2005 Research methodology by Douglas K. Detterman - Psychology - 1985

Web sources

1. www.managementparadise.com 2. www.wikipedia.org 3. www.google.co

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ANNEXURE
Questionnaire Dear/Respected Respondent, 1. The 3 most important features you look for in a car? A. ................................................................ B. ................................................................ C.

2. Which car do you use now? ..............................................

3. Your satisfaction level with your car.

5 Very much satisfies

1 Not At all satisfies

4. Name Top 4 mid segment Brands.(in your view)

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5. What is the price range you would consider for a new car? From [ ] to [ ] lacs

6. Is there a specific vehicle you are currently interested in? ......................................................................................... 7. Why do you like this vehicle? ......................................................................................... 8. For Buying a car you are more likely to get information from: Name one only Internet [ ] Television [ ] ] Auto magazine [ ] Dealers [ ] Friends [ ]

Any Other [

9. Who influence most in the family for buying car? You [ [ 10. ] You would prefer petrol/diesel/CNG ] Wife/Husband [ ] Children [ ] Parents [ ] Friends [ ] Any other

car? ....................................................................... 11. Which Newspaper do you read regularly? a) The Times of India [ d) The Economic Times [ ] b) The Hindustan Times [ ] e) Amar Ujala [ ] c) Business Standard [ ] ]

] f) Dainik Jagran [ ] g) Any other [

12. Which 3 TV Channel do you watch the most:

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a) .. b) c) . 13. What is the approximate annual income of your family (INR.) a) 1lacs to 2.5 lacs [ ] b) 2.5lacs to 5 lacs [ 10lacs [ ] e) 10lacs and above [ ] ] c) 5lacsto 7.5lacs [ ] d) 7.5lacs to

14. How important are the following features you consider for Buying a new Car On a Scale of 1 to 5 where, (5= Must have; 4= High Priority; 3= Worth Considering; 2= Dont Care; 1= Unwanted) Price/Value for money Prestige/Status/Brand Fuel Economy .. .. ..

Passenger Space and Comfort.. Safety Engine Power Service Centres Luxurious interior Contact Details: .. .. .. ..

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Name: - .. .

Gender:

Age: - . Contact no:-.. E mail address: - Current Occupation: other. Education: High School [ ] Intermediate [ ] Graduate [ ] Post Graduate [ ] Student [ ] Service [ ] Business [ ] Any

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