CHAPTER 1

INTRODUCTION
1.1 1.2 1.3 1.4 1.5

Overview of industry as a whole Profile of the company Problems of the company/Industry Competition Information SWOT Analysis of the organization

TATA MOTORS LTD.

1.1An 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 worlds 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.

TATA MOTORS LTD.

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

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.

TATA MOTORS LTD.

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

1.2 COMPANY PROFILE TATA MOTORS

Tata Motors Limited Public BSE: (NYSE: TTM) 1945 JRD Tata Ratan Tata, Chairman Automobiles and Engines USD $9.07 billion (2010) USD $474.0 million (2010) Tata Group Jaguar Cars Land Rover Tata Daewoo Commercial Vehicle Hispano Carrocera Rover Daimler Lanchester 500570

Type Founded Founder(s) Key people Products Revenue Net income Parent

Headquarters Mumbai, India

Subsidiaries

Website TataMotors.com Tata Motors Limited is Indias 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. TATA MOTORS LTD. 5

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."

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 companys 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. Hispanos 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 LTD.

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 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 companys 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, Indias 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, Indias 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

TATA MOTORS LTD.

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 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 Indias 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.

TATA MOTORS LTD.

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 (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 TATA MOTORS LTD. 9

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 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

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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. 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 TATA MOTORS LTD. 11

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 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 TATA MOTORS LTD. 12

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 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.

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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 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 (AprilOctober), 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 JLRs 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.

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1.4 Competition Information

Name Tata Motors Ashok Leyland Eicher Motors Tata Motors (D) SML Isuzu Last Price 765.80 25.85 1,370.95 448.65 345.00 Market Cap.
(Rs. cr.)

Sales Turnover 47,807.4 11,117.71 442.67 893.01

Net Profit 1,811.8 2 631.30 75.44 36.56

Total Assets 35,912.05 6,621.14 474.14 297.79

48,612.04 6,877.85 3,696.98 2,879.24 499.27

Comparison with Competitors

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Balance Sheet Tata Motors Mar '11 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 634.65 634.65 3.06 0.00 19,375.59 0.00 20,013.30 7,766.05 8,132.70 15,898.75 35,912.05 Tata Motors Mar '11 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 Total Assets 21,883.32 8,466.25 13,417.07 4,058.56 22,624.21 3,891.39 2,602.88 2,428.92 8,923.19 5,167.42 0.00 14,090.61 0.00 15,055.69 3,222.71 18,278.40 -4,187.79 0.00 35,912.05

------------------- in Rs. Cr. ------------------Ashok Leyland Mar '11 Eicher Motors Dec '10 Force Motors Mar '10

133.03 133.03 0.00 0.00 2,523.65 1,306.28 3,962.96 1,272.22 1,385.97 2,658.19 6,621.15 Ashok Leyland Mar '11

26.94 26.94 0.00 0.00 429.73 0.00 456.67 14.36 3.11 17.47 474.14

13.18 13.18 0.00 0.00 270.14 0.00 283.32 62.00 85.83 147.83 431.15

Eicher Motors Force Motors Dec '10 Mar '10

6,691.89 2,058.10 4,633.79 387.82 1,230.00 2,208.90 1,185.21 179.53 3,573.64 787.17 0.00 4,360.81 0.00 3,505.26 490.33 3,995.59 365.22 4.31 6,621.14

159.27 87.52 71.75 3.06 463.98 28.23 3.64 3.63 35.50 57.65 7.47 100.62 0.00 124.19 41.08 165.27 -64.65 0.00 474.14

937.73 653.42 284.31 12.23 56.74 193.73 150.23 25.71 369.67 64.78 0.00 434.45 0.00 312.59 43.99 356.58 77.87 0.00 431.15

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Contingent Liabilities Book Value (Rs)

4,798.83 315.31

881.77 19.97

86.22 169.53

54.54 215.02

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.' TATA MOTORS LTD. 17

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? 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!

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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, ecofriendly 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. 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.

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CHAPTER 2

RESEARCH METHODOLOGY
2.1 Statement of the Problem

2.2

Objective & Scope of study

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2.3

Managerial usefulness of study

2.4

Type of Research and Research Design

2.5

Data Collection Method

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. TATA MOTORS LTD. 21

To find out whether company is opting the appropriate selling and promotion techniques. To determine the types of facility customer seek in the Tatas 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

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

TATA MOTORS LTD. 22

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.

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

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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.

CHAPTER 3 CONCEPTUAL DISCUSSION

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3.1

Review of Literature

3.2

Current Issues

3.3

New development of Company and Industry

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 sportutility vehicles to those that drive them and to other drivers, relative to the risk posed TATA MOTORS LTD. 25

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, p641650, 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. 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.

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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

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 CoimbatoreAvinashi 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 TATA MOTORS LTD. 27

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.

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.

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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 noncommissioning 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

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

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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, Indias first indigenous car, is an accomplishment that has established the countrys 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 productdevelopment needs. It has hired new talent and instituted new methods such as computeraided 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.

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 companys 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, TATA MOTORS LTD. 30

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.

CHAPTER 4 Data Analysis Methods and techniques of data analysis Primary Data Analysis Secondary Data Analysis
TATA MOTORS LTD. 31

DATA ANALYSIS

1.) What are your monthly earnings ?

Monthly Income 30000-50000 51000-100000 above 100000

No. of respondent

Percentage

62 24 14

62% 24% 14%

Monthly Income

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14%

24% 62%

30,000-50,000 51,000-1,00,000 Above 1,00,000

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 ? Car Maruti Hyundai Ford Chevrolet Tata Skoda No. of Respondant 41 18 9 8 21 3 Percentage 41% 18% 9% 8% 21% 3% Own which car at present

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21% 8% 9%

3% Maruti Hyundai Ford 41% Chevrolet Tata

18%

Skoda

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? Factors Reliability of brand Safety Price After Sales Services Fuel Efficient No. of Respondent s 14 17 9 26 34 Percentage 14% 17% 9% 26% 34%

Factors which influences to buy a car

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

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 ? Respond YES NO No. of respondents 68 32 Percentage 68% 32% Planning to buy a SUV

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32%

YES 68% NO

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 Mahindra Scorpio Tata Safari Toyota Fortuner Mitsubishi Pajero Ford Endeavour No. of Respondents 35 52 6 3 4 Percentage 35% 52% 6% 3% 4%

Among the following which one

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6%

3%

4% 35% Mahindra Scorpio Tata Safari Toyota Foutuner Mitisubishi Pajero Ford Endeavour

52%

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?

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Percentage of Income 35%-45% 45%-55% 55%-65% 65% and Above

No. of Respondent s 31 49 13 7

Percentage

31% 49% 13% 7%

Percentage of income planning to spend

7% 13% 31% 35% -45% 45% -55% 55% -65% 49% 65%and above

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 Respondent YES NO s 58 42 58% 42% Percentage

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Already have Tata Vehicle

42% 58%

YES NO

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 Respondent s 81 19

Percentage

YES NO

81% 19%

Satisfied with your vehicle

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19%

YES NO 81%

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 News paper T.V ad Trade show Internet Peer group Personal approach to dealer No. of Respondent 13 18 4 2 38 25 Percentage 13% 18% 4% 2% 38% 25%

Source of advertisement you find best

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25%

13% Newspaper 18% T.V ad Trade Show 38% 4% 2% Internet Peer Group

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 Finance deals Free Gift Hampers Lucky Draws Discounted Prizes Product Demonstration Festive Season Offers No. of Respondents 24 12 6 8 11 39 Percentage 24% 12% 6% 8% 11% 39%

Promotional Scheme in which you prefer to buy a car

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24% 39% 12% 11% 8% 6%

Financial Deals Free Gift Ham pers Lucky Draws Discounted Prizes Product Dem onstration Festive Season Offer

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 Looks Technology After sales service Engine performance Mileage

No. of Respondent 22 9 21 8 40

Percentage 22% 9% 21% 8% 40%

Feature that matter the most

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22% 40% 9% Looks Technology After sales service 8% 21% Engine Performance Mileage

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 Performance Free accessories Resale Value Extended warranty Service Insurance Test Drive No. of Respondent 38 4 8 6 14 10 20 Percentage 38% 4% 8% 6% 14% 10% 20%

Additional information you want to know from our Advertisements

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20% 38% 10%

Perform ance Free Accessories Resale Value Extended Warranty Service

14% 6% 8%

4%

Insurance TestDrive

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 Resale Value Interior Comfort Safety Boot Space No. of Respondent 18 23 17 37 5 Percentage 18% 23% 17% 37% 5%

Features you seek in a SUV

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5%

18% Resale Value Interior 23% Com fort Safety 17% Boot Space

37%

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 Fair Good Excellent

No. of Respondents
26 38 36

Percentage
26% 38% 36%

Overall Rating of vehicle

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25% 37% Fair Good Excellent 38%

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.

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CHAPTER 5 FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS
TATA MOTORS LTD. 47

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 its 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 Tatas 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.

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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. Tatas sports utility vehicle is found to be cheaper in their segment thats 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.

SUVS 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. TATA MOTORS LTD. 49

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. 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) TATA MOTORS LTD. 53

Reliability of brand Safety Price After Sales Services Fuel Efficient

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

(1) Yes

(2) No

5. - If yes then which one?

(1) Mahindra Scorpio (4) Mitsubishi Pajero

(2) Tata Safari (3) Ford Endeavour

(3) Toyota Fortuner

6. - What percentage of your income would u like to spend on buying a SUV? Percentage 35%-45% 45%-55% 55%-65% 65% and Above Respondents

7. - Have you ever purchased a Tatas 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?

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(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? 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 Looks Technology After sales service Engine performance Mileage

No. of respondent

12. Which all additional information you want in our advertisements? No. of respondent Performance Free accessories Resale Value Extended warranty Service Insurance Test Drive 13. - What all feature matter the most when you purchase SUV? TATA MOTORS LTD. 55

Attributes Resale Value Interior Comfort Safety Boot Space

No. of respondent

14. - How effective you find the overall Tatas vehicle? Good Fair Excellent

BIBLIOGRAPHY

WEBSITES REFERRED
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www.thehindubusinessline.com,15 June 2011 www.valueresearch,26 may 2011 www.Yahoofinance.com,11 July 2011 Tata Motors' Official Website,25 may 2011 http://www.capitaline.com ,18 June 2011 TATA MOTORS LTD. 56

http://www.tatamotors.com/our_world/press_releases.php? ID=458&action=Pull http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow htttp://www.moneycontrol/com/tata-group/tatamotors http://www.yahoofinance.com/tatamotors http://www.carwale.com/research/cars/tata

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BOOKS REFERRED Philip Kotler, Kevin Keller (2009),Marketing Management (Thirteenth Edition) Marketing Management, the McGraw. Hill Company Rajan Saxena (Third Edition) Berman, Berry and Joel r Evans (Oct- 1997) Marketing Management: A strategic approach 8th edition Englewood cliffs NJ printice hall
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Country analysis 1997 A framework to identify and evaluate the national business environment Harvard business review

MAGAZINE REFERRED
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Business World, Issue Dated 01-08-2011, Carl-Peter Forster, Managing Director &
Group CEO, Tata Motors (BW pic by Satheesh Nair)

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

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Business Today, volume May 2011,dated:25 may 2011 Motor India, volume october2011

TATA MOTORS LTD.

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