Saptadip Chandan Aniket Amruth Deepti Neha

GROUP - 4
Established in 1945, Tata Motors Limited is Indias largest automobile company,
with consolidated revenues of INR 2,32,834 crores (FY 2013-14)
Leader in commercial vehicle segment in India, among the top manufacturers of
passenger vehicles in the country and globally, the fifth largest truck manufacturer
and fourth largest bus manufacturer
Principal subsidiaries include the British premium car maker Jaguar Land Rover and
the South Korean commercial vehicle manufacturer Tata Daewoo
Launched the countrys first Light Commercial Vehicle (Tata 407, 1986), first SUV (Tata
Safari, 1991) and first fully indigenous passenger car (Tata Indica, 1998)
24% decline in total car sales by
the company in FY 2013-2014

Domestic sale volume dropped
by 25% in FY 2013-2014

Projected decline of 26% in
sales volume in FY 2014-2015
Indian automobile industry reported a decline in sale of passenger vehicles in 2013-
2014, owing to an economic slowdown. Total sales fell from 26.6 lac units in 2012-2013
to 25.03 lac units in 2013-2014, a drop of 6%.
Tata Motors have seen sharper plunge in sales than the industry average. A 24% decline
in the total sales by the company in the last financial year. Sale of passenger vehicles
have dropped by 48%
CEO Cyrus Mistry has attributed this fiasco to the brand image decline of Tata Motors post
the launch of Nano and perception of Tata cars as good commercial vehicles and taxis
Tata Motors have launched Tata Zest in August, 2014, a compact
sedan priced below 7 Lacs.

The diesel engine model with Automatic Manual Transmission
mode, that costs Rs. 7 Lacs, is the countrys cheapest compact
semi-automatic sedan with diesel engine.

Zest has received warm response, with more than 10,000
bookings after its launch
Tata Motors is slated to launch Tata Bolt in January, 2015, a diesel
engine powered hatchback with Automatic Manual Transmission.
With a price tag below Rs. 6.60 Lacs, the car is projected to be the
lowest priced diesel engine hatchback with AMT mode.

Semiautomatic and automatic cars have a 5% share in India, with
high price being a major deterrent. This figure is expected to rise
to 20% to 30% in the next 5 years. Tata Bolt expects to ride the
wave early.
Sale of diesel cars has seen steady increase from 2010-2011 to a peak of 58% market
share in 2012-2013


With government deregulation of diesel price and closing gap between petrol and diesel
prices, sale of diesel cars has been on decline


Perception of diesel engines as inferior to petrol variants. With price advantage slowly
eroding away, diesel engine sales is projected to further go down.


Primary Research Data
Only 5% of total cars in India comprise of automatic and semi-automatic transmission mode

Automatic and semi-automatic transmission cars expected to comprise 20% to 30% of the
market in next 5 years, as per expert forecast (Source: Economic Times)

Ease of driving and convenience major factors in acceptance of automatics and semi-
automatics, specially in congested urban areas

With price factor being addressed in the newly launched car, Tata Motors expect to ride the
automatic wave at the earliest


Primary research indicates growing
preference for cars with automatic and
semi-automatic transmission modes

High price is considered as major factor
against buying cars with automatic and
semi-automatic modes of transmission


Product positioning as the only premium hatchback diesel variant car with semi-automatic
mode of transmission in the price range


With cost advantage of diesel engine cars slowly on the decline, focus on diesel engines high
torque that provides better maneuverability, higher mileage of diesel engines, less frequent
maintenance and longevity


With three different modes of driving: Eco, Sport and City, the car can cater to the need of
different types of drivers who wants to choose between a mix of performance and fuel
efficiency


Reach out to buyers who wish to switch to semi-automatic transmission cars but have been
deterred by high price through advertisement campaigns
Frequent travellers who can leverage the cost advantage of higher mileage of diesel
engine cars


Customers in cities with high traffic congestion where semi-automatic cars provide
better fuel efficiency and comfortable driving experience


First time car buyers who seek maximum ease of driving and minimum maintenance
hassle


Customers who plan to switch to semi-automatic cars from manual cars


Customers who change cars frequently and seek better resale value. Diesel engines
provide higher resale value than petrol variants


The official website of Tata Motors: http://www.tatamotors.com

The official webpage of Tata Bolt: http://tatamotorsbolt.com

The website of Society Of Indian Automobile Manufacturers:
http://www.siamindia.com

The website of Economic Times: http://economictimes.indiatimes.com

The website of IndiaAutoReport (IAR), an Indian automobile industry analysis platform:
http://indiaautoreport.com

http://www.crisil.com/research/customised-research-industries-auto.html

http://www.dieselserviceandsupply.com/why_use_diesel.aspx

http://firstbiz.firstpost.com/corporate/mistry-admits-fy15-will-tough-bets-zest-bolt-
revive-tata-motors-fortunes-92466.html