Perception of People About NANO Car in Mumbai City Research & QuestioneerNEW

8/8/2019 Perception of People About NANO Car in Mumbai City Research & QuestioneerNEW

1/108

Perception of people about NANO car

The professional training is the internal part of an BMSA. program. It helps the

students understand practical aspects of Business IN BACHOLORS OF Management

STUDIES in a better way as a part of my BM.S. program. I was supposed to work

with the organization.

Marketing Research is the systematic and objective identification, collection,

analysis, dissemination, and use of information for the purpose of improving decision

making related to identification and solution of problems and opportunity

Perception is the process, by which an individual selects, organizes and interprets

information inputs to create a meaningful picture of the world around as

To be a Master of Business Administration student is a matter of pride because weare in a field, which helps us to develop from a normal human being into a disciplined,

and dedicated professional. One has to be a good learner to sharper knowledge in the

particular field to achieve and attain the desired goals and heights. I conducted to gain

an understanding of what goes in to mind of the customer about NANO. To find the

perception of people on NANO in the MUMBAI city, I used research questionnaires

as the research and data collection tools. The responses were collected from 300

respondents. from various areas of Mumbai.

I had learned lot during my Grand Project on perception of people on Tatas NANO,

and I hope this will be helpful to find out perception of people on NANO car in

Mumbai city.


2/108

The grand project study on a PERCEPTION OF PEOPLE ON NANO CAR basedon customer survey. The main objectives of the project are

To know the perception of people about NANO car in Mumbaicity.

To know about awareness of products.

To know about factors affecting purchase decision of NANO.

To know acceptance level of people in Mumbai City.

To know how purchase decision of NANO.varies from differentIncome group.

For this project customer research was carried out at various area of Mumbai City. Inthis customer research, I learnt about different types of customers perception aboutTATAs NANO in Mumbai City.

2


3/108

Sr.

NO.

CONTENTS PAGE

NO.1. INDUSTRY PROFILE 82. COMPANY PROFILE 163. THEORITICAL BACKGROUND 314. IDENTIFICATION OF THE STUDY 73

5.1 MARKETING RESEARCH PROBLEM 73

5.2 SCOPE OF THE STUDY 735.3 OBJECTIVE OF THE STUDY 735.4 LIMITATION OF THE STUDY 73

5. RESEARCH METHODOLOGY 746. INTERPRETATION AND ANALYSIS 777. INTERPRETATION OF RESULTS 998. CONCLUSION 1019 ANNEXURE 102

9.1 BIBLIOGRAPHY 1039.2 APPENDICES 104

LIST OF TABLES & GRAPHS

TABLE/ ASPECT

3


4/108

GRAPH NO.1. SHOWING GENDER CATEGORY

2. SOWING AGE GROUP OF RESPONDENTS.

3. SHOWING INCOME GROUP OF RESPONDENTS

4. SHOWING OCCUPATION LEVEL OF RESPONDENTS.

5. SHOWING NO OF RESPODENTS WHO ARE HAVINGVEHICLE OR WHO DO NOT HAVE IT.

6. SHOWING PREFERENCE FOR RS. 1 LAKH CAR

7. SHOWING NO. OF RESPONDENTS WHO ARE AWAREABOUT NANO

8. SHOWING PREFERENCE OF THE RESPONDENTS ABOUT

NANO9. SHOWING NO. OF RESPONDENTS WHO PLAN TO BUY

NANO WITHIN 1 TO 2 YEAR10. SHOWING THE NO. OF RESPONDENTS PREFERENCE

ABOUT MODEL OF THE NANO11. SHOWING OPINION FOR NANOS MILEAGE12. SHOWING ATTRIBUTES PREFERENCE GIVEN BY

RESPONDENTS WHILE PURCHASING NANO12.1 BRAND NAME12.2 AFFORDABILITY12.3 SHAP/DESIGN12.4 SAFETY12.5 COMFORT

13. SHOWING THE PREFERENCE OF THE RESPONDENTS ONNANO COMPARE TO SECOND HAND CAR

14. SHOWING HOW PURCHASE DECISION OF NANO WILLAFFECT TO RESPONDENTS STATUS

15. SHOWING NO. OF RESPONDENTS WHO BELIEVE NANOAS A DREAM CAR.

TATA GROUP PROFILE:

4


5/108

The Tata Group comprises 98 operating companies in seven business sectors:

information systems and communications; engineering; materials; services; energy;

consumer products; and chemicals. The Group was founded by Jamsetji Tata in the mid

19 th century, a period when India had just set out on the road to gaining independence

from British rule. Consequently, Jamsetji Tata and those who followed him aligned

business opportunities with the objective of nation building. This approach remains

enshrined in the Group's ethos to this day.

The Tata Group is one of India's largest and most respected business conglomerates,

with revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2

per cent of the country's GDP, and a market capitalization of $66.9 billion as on February

21, 2008. Tata companies together employ some 289,500 people. The Group's 27

publicly listed enterprises among them stand out names such as Tata Steel, Tata

Consultancy Services , Tata Motors and Tata Tea have a combined market capitalization

that is the highest among Indian business houses in the private sector, and a shareholder

base of over 2.9 million. The Tata Group has operations in more than 80 countries across

six continents, and its companies export products and services to 85 countries.

The Tata family of companies shares a set of five core values: integrity, understanding,

excellence, unity and responsibility. These values, which have been part of the Group's

beliefs and convictions from its earliest days, continue to guide and drive the business

decisions of Tata companies. The Group and its enterprises have been steadfast and

distinctive in their adherence to business ethics and their commitment to corporate social

responsibility. This is a legacy that has earned the Group the trust of many millions of

stakeholders in a measure few business houses anywhere in the world can match.

Values and purpose:

Leadership with trust Purpose

5
http://www.tata.com/0_about_us/history/pioneers/jamsetji_tata.htmhttp://www.tata.com/tata_steel/index.htmhttp://www.tata.com/tcs/index.htmhttp://www.tata.com/tcs/index.htmhttp://www.tata.com/tata_motors/index.htmhttp://www.tata.com/tata_tea/index.htmhttp://www.tata.com/0_about_us/history/pioneers/jamsetji_tata.htmhttp://www.tata.com/tata_steel/index.htmhttp://www.tata.com/tcs/index.htmhttp://www.tata.com/tcs/index.htmhttp://www.tata.com/tata_motors/index.htmhttp://www.tata.com/tata_tea/index.htm


6/108

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 formalisation 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 organisation. These values

continue to direct the Group's 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-to-day work and in the quality of the goods and services we provide.

6


7/108

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.

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.

A SAGA OF VISION, COMMITMENT AND FORTITUDE:

As much an institution as it is a business conglomerate, the Tata Group is unique in more

ways than one. Established by Jamsetji Tata in the second half of the 19th century, the

Group has grown into one of India's biggest and most respected business organisations,

thanks in no small part to its entrepreneurial vision, its commitment to ideals that put

people before profits, and its fortitude in the face of adversity.

Family pride

7


8/108

The Tata family of enterprises comprises 98 companies in seven business sectors. This

section lists all these companies under the sectors in which they operate, besides the two

promoter companies of the Group. Visitors can, by clicking on the relevant links, get a

profile of individual companies, their subsidiaries (if any), their products and services,contact details, etc.

The seven business sectors

ENGINEERING (AUTOMOTIVE) :

Tata Auto Comp Systems :

Subsidiaries / associates / joint ventures: International Automotive, Knorr Bremse

Systems for Commercial Vehicles , Tata Auto Comp GY Batteries , TACO Engineering,

TACO Faurecia Design Centre , TACO Hendrickson Suspension Systems , TACO Interiors

and Plastics Division , TacoKunststofftechnik , TACO MobiApps Telematics , TACO Supply

Chain Management , TACO Tooling , TACO Visteon Engineering Center , Tata Ficosa

Automotive Systems , Tata Johnson Controls Automotive , Tata Toyo Radiator , Tata

Yazaki Auto Comp, TC Springs , Technical Stampings Automotive

Tata Motors :

Subsidiaries / associates / joint ventures: Concorde Motors, HV Axels, HV

Transmissions, Nita Company, TAL Manufacturing Solutions , Tata Cummins , Tata

8
http://www.tata.com/tata_autocomp/index.htmhttp://www.tacogroup.com/businessunits/knorrbremse/index.htmhttp://www.tacogroup.com/businessunits/knorrbremse/index.htmhttp://www.tata.com/tata_batteries/index.htmhttp://www.tacogroup.com/businessunits/tacoengg/index.htmhttp://www.tacogroup.com/businessunits/tacofaurecia/index.htmhttp://www.tacogroup.com/businessunits/thsl/index.htmhttp://www.tacogroup.com/businessunits/taps/index.htmhttp://www.tacogroup.com/businessunits/taps/index.htmhttp://www.tacogroup.com/businessunits/tkt/index.htmhttp://www.tacogroup.com/businessunits/tacomobiapps/index.htmhttp://www.tacogroup.com/businessunits/tacoscm/index.htmhttp://www.tacogroup.com/businessunits/tacoscm/index.htmhttp://www.tacogroup.com/businessunits/tacotooling/index.htmhttp://www.tacogroup.com/businessunits/tvec/index.htmhttp://www.tacogroup.com/businessunits/tataficosa/index.htmhttp://www.tacogroup.com/businessunits/tataficosa/index.htmhttp://www.tacogroup.com/businessunits/tjcmfr/index.htmhttp://www.tacogroup.com/businessunits/tatatoyo/index.htmhttp://www.tacogroup.com/businessunits/tatayazaki/index.htmhttp://www.tacogroup.com/businessunits/tatayazaki/index.htmhttp://www.tacogroup.com/businessunits/tcsprings/index.htmhttp://www.tacogroup.com/businessunits/tsal/index.htmhttp://www.tata.com/tata_motors/index.htmhttp://www.tata.com/tal/index.htmhttp://www.tata.com/tata_cummins/index.htmhttp://www.tata.com/tata_autocomp/index.htmhttp://www.tacogroup.com/businessunits/knorrbremse/index.htmhttp://www.tacogroup.com/businessunits/knorrbremse/index.htmhttp://www.tata.com/tata_batteries/index.htmhttp://www.tacogroup.com/businessunits/tacoengg/index.htmhttp://www.tacogroup.com/businessunits/tacofaurecia/index.htmhttp://www.tacogroup.com/businessunits/thsl/index.htmhttp://www.tacogroup.com/businessunits/taps/index.htmhttp://www.tacogroup.com/businessunits/taps/index.htmhttp://www.tacogroup.com/businessunits/tkt/index.htmhttp://www.tacogroup.com/businessunits/tacomobiapps/index.htmhttp://www.tacogroup.com/businessunits/tacoscm/index.htmhttp://www.tacogroup.com/businessunits/tacoscm/index.htmhttp://www.tacogroup.com/businessunits/tacotooling/index.htmhttp://www.tacogroup.com/businessunits/tvec/index.htmhttp://www.tacogroup.com/businessunits/tataficosa/index.htmhttp://www.tacogroup.com/businessunits/tataficosa/index.htmhttp://www.tacogroup.com/businessunits/tjcmfr/index.htmhttp://www.tacogroup.com/businessunits/tatatoyo/index.htmhttp://www.tacogroup.com/businessunits/tatayazaki/index.htmhttp://www.tacogroup.com/businessunits/tatayazaki/index.htmhttp://www.tacogroup.com/businessunits/tcsprings/index.htmhttp://www.tacogroup.com/businessunits/tsal/index.htmhttp://www.tata.com/tata_motors/index.htmhttp://www.tata.com/tal/index.htmhttp://www.tata.com/tata_cummins/index.htm


9/108

Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision

Industries , Tata Technologies , Telco Construction Equipment

ENGINEERING SERVICESTata Projects , TCE Consulting Engineers , Voltas

ENGINEERING PRODUCTSTAL Manufacturing Solutions, Telco Construction Equipment Company , TRF

MATERIALS:

COMPOSITES

Tata Advanced Materials

METALS

Tata Steel :

Subsidiaries / associates / joint ventures: Hooghly Met Coke and Power Company ,

Jamshedpur Injection Powder (Jamipol) , Jamshedpur Utility and Service Company

Limited (JUSCO), Lanka Special Steel, mjunction services , NatSteel, Sila Eastern

Company, Tata Blue Scope Steel, Tata Metallic , Tata Pigments , Tata Refractories

Tata Ryerson , Tata Sponge Iron, Tata Steel (Thailand), Tata Steel KZN, Tayo Rolls , The

Dhamra Port Company, The Indian Steel and Wire Products, The Tinplate Company of

India , TM International Logistics , TRF

9
http://www.tata.com/tata_precision/index.htmhttp://www.tata.com/tata_precision/index.htmhttp://www.tata.com/tata_tech/index.htmhttp://www.tata.com/telco_constructions/index.htmhttp://www.tata.com/tata_projects/index.htmhttp://www.tata.com/tce_cons_engg/index.htmhttp://www.tata.com/voltas/index.htmhttp://www.tata.com/tal/index.htmhttp://www.tata.com/telco_constructions/index.htmhttp://www.tata.com/trf/index.htmhttp://www.tata.com/tata_admaterials/index.htmhttp://www.tata.com/tata_steel/index.htmhttp://www.tata.com/hooghly_metcoke/index.htmhttp://www.tata.com/jamipol/index.htmhttp://www.tata.com/metal_junction/index.htmhttp://www.tata.com/tata_metaliks/index.htmhttp://www.tata.com/tata_pigments/index.htmhttp://www.tata.com/tata_refractories/index.htmhttp://www.tata.com/tata_ryerson/index.htmhttp://www.tata.com/tata_sponge/index.htmhttp://www.tata.com/tayo_rolls/index.htmhttp://www.tata.com/tinplate/index.htmhttp://www.tata.com/tinplate/index.htmhttp://www.tata.com/tmil/index.htmhttp://www.tata.com/trf/index.htmhttp://www.tata.com/tata_precision/index.htmhttp://www.tata.com/tata_precision/index.htmhttp://www.tata.com/tata_tech/index.htmhttp://www.tata.com/telco_constructions/index.htmhttp://www.tata.com/tata_projects/index.htmhttp://www.tata.com/tce_cons_engg/index.htmhttp://www.tata.com/voltas/index.htmhttp://www.tata.com/tal/index.htmhttp://www.tata.com/telco_constructions/index.htmhttp://www.tata.com/trf/index.htmhttp://www.tata.com/tata_admaterials/index.htmhttp://www.tata.com/tata_steel/index.htmhttp://www.tata.com/hooghly_metcoke/index.htmhttp://www.tata.com/jamipol/index.htmhttp://www.tata.com/metal_junction/index.htmhttp://www.tata.com/tata_metaliks/index.htmhttp://www.tata.com/tata_pigments/index.htmhttp://www.tata.com/tata_refractories/index.htmhttp://www.tata.com/tata_ryerson/index.htmhttp://www.tata.com/tata_sponge/index.htmhttp://www.tata.com/tayo_rolls/index.htmhttp://www.tata.com/tinplate/index.htmhttp://www.tata.com/tinplate/index.htmhttp://www.tata.com/tmil/index.htmhttp://www.tata.com/trf/index.htm


10/108

ENERGY:

POWERTata BP Solar India

Tata Power

Subsidiaries / associates / joint ventures: Tata Ceramics, Tata Power Trading , NorthDelhi Power Limited

OIL AND GASTata Petrodyne

CHEMICALS:

Rallis India

Tata Chemicals

Tata Pigments

PHARMA

Advinus Therapeutics

10
http://www.tata.com/tata_bp_solar/index.htmhttp://www.tata.com/tata_power/index.htmhttp://www.tata.com/tata_ceramics/index.htmhttp://www.tata.com/tata_power_trading/index.htmhttp://www.tata.com/ndpl/index.htmhttp://www.tata.com/ndpl/index.htmhttp://www.tata.com/tata_petrodyne/index.htmhttp://www.tata.com/rallis_india/index.htmhttp://www.tata.com/tata_chemicals/index.htmhttp://www.tata.com/tata_pigments/index.htmhttp://www.tata.com/advinus/index.htmhttp://www.tata.com/tata_bp_solar/index.htmhttp://www.tata.com/tata_power/index.htmhttp://www.tata.com/tata_ceramics/index.htmhttp://www.tata.com/tata_power_trading/index.htmhttp://www.tata.com/ndpl/index.htmhttp://www.tata.com/ndpl/index.htmhttp://www.tata.com/tata_petrodyne/index.htmhttp://www.tata.com/rallis_india/index.htmhttp://www.tata.com/tata_chemicals/index.htmhttp://www.tata.com/tata_pigments/index.htmhttp://www.tata.com/advinus/index.htm


11/108

SERVICES:

HOTELS AND REALTY

Indian Hotels (Taj group)

Subsidiaries / associates / joint ventures: Taj Air , Roots Corporation (Ginger Hotels)

THDC

Tata Realty and Infrastructure

FINANCIAL SERVICES

Tata AIG General Insurance , Tata AIG Life Insurance , Tata Asset ManagementTata Capital , Tata Financial Services , Tata Investment Corporation

OTHER SERVICES

Tata Quality Management Services , Tata Services , Tata Strategic ManagementGroup

CONSUMER PRODUCTS:

Infiniti RetailTata Tea

Subsidiaries / associates / joint ventures: Tetley Group , Tata Coffee , Tata Tetley , Tata Tea IncTata CeramicsTata McGraw Hill Publishing CompanyTitan IndustriesTrent

11
http://www.tata.com/indian_hotels/index.htmhttp://www.tata.com/taj_air/index.htmhttp://www.tata.com/roots_corporation/index.htmhttp://www.tata.com/tata_hsgdevco/index.htmhttp://www.tata.com/tata_realty/index.htmhttp://www.tata.com/tata_aig_general/index.htmhttp://www.tata.com/tata_aig_life/index.htmhttp://www.tata.com/tata_assetmgt/index.htmhttp://www.tata.com/tata_capital/index.htmhttp://www.tata.com/tata_fin_ser/index.htmhttp://www.tata.com/tata_investment/index.htmhttp://www.tata.com/tqms/index.htmhttp://www.tata.com/tata_services/index.htmhttp://www.tata.com/tata_services/index.htmhttp://www.tata.com/tata_strategic/index.htmhttp://www.tata.com/tata_strategic/index.htmhttp://www.tata.com/infiniti_retail/index.htmhttp://www.tata.com/tata_tea/index.htmhttp://www.tata.com/tetley_group/index.htmhttp://www.tata.com/tata_coffee/index.htmhttp://www.tata.com/tata_tetley/index.htmhttp://www.tata.com/tata_tea_inc/index.htmhttp://www.tata.com/tata_ceramics/index.htmhttp://www.tata.com/tata_mcgraw/index.htmhttp://www.tata.com/titan/index.htmhttp://www.tata.com/trent/index.htmhttp://www.tata.com/indian_hotels/index.htmhttp://www.tata.com/taj_air/index.htmhttp://www.tata.com/roots_corporation/index.htmhttp://www.tata.com/tata_hsgdevco/index.htmhttp://www.tata.com/tata_realty/index.htmhttp://www.tata.com/tata_aig_general/index.htmhttp://www.tata.com/tata_aig_life/index.htmhttp://www.tata.com/tata_assetmgt/index.htmhttp://www.tata.com/tata_capital/index.htmhttp://www.tata.com/tata_fin_ser/index.htmhttp://www.tata.com/tata_investment/index.htmhttp://www.tata.com/tqms/index.htmhttp://www.tata.com/tata_services/index.htmhttp://www.tata.com/tata_strategic/index.htmhttp://www.tata.com/tata_strategic/index.htmhttp://www.tata.com/infiniti_retail/index.htmhttp://www.tata.com/tata_tea/index.htmhttp://www.tata.com/tetley_group/index.htmhttp://www.tata.com/tata_coffee/index.htmhttp://www.tata.com/tata_tetley/index.htmhttp://www.tata.com/tata_tea_inc/index.htmhttp://www.tata.com/tata_ceramics/index.htmhttp://www.tata.com/tata_mcgraw/index.htmhttp://www.tata.com/titan/index.htmhttp://www.tata.com/trent/index.htm


12/108


13/108

TATA MOTORS PROFILE:

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426

crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each

segment, and the second largest in the passenger vehicles market with winning

products in the compact, midsize car and utility vehicle segments. The company is the

world's fifth largest medium and heavy commercial vehicle manufacturer, and theworld's second largest medium and heavy bus manufacturer.

The company's 22,000 employees are guided by the vision to be "best in the

manner in which we operate best in the products we deliver and best in our value

system and ethics." Tata Motors helps its employees realize their potential through

innovative HR practices. The company's goal is to empower and provide employees

with dynamic career paths in congruence with corporate objectives. All-round potential

development and performance improvement is ensured by regular in-house andexternal training.

The company has won several awards recognising its training programs.

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 is spread across India - Jamshedpur

(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow

(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-

wide dealership, sales, services and spare parts network comprises over 2,000 touch

points. The company also has a strong auto finance operation, TML Financial Services

13


14/108

Limited, supporting customers to purchase Tata Motors vehicles.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. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's

second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles

Company has launched several new products in the Korean market, while also

exporting these products to several international markets. Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata

Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach

manufacturer, with an option to acquire the remaining stake as well. Hispano's

presence is being expanded in other markets.

In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global

leader in Body-building for buses and coaches to manufacture fully-built buses and

coaches for India and select international markets. Tata Motors also entered into a joint

venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to

manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata

Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in

Maharashtra, India) to produce both Fiat and Tata cars and Fiat power trains for the

Indian and overseas markets; Tata Motors already distributes and markets Fiat branded

cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata

license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles'

Plant at Cordoba, Argentina. The pick-up will be sold in South and Central America and

select European markets.

These linkages will further extend Tata Motors' international footprint, established

through exports since 1961. While currently about 18% of its revenues are from

international business, the company's objective is to expand its international business,

both through organic and inorganic growth routes. The company's commercial and

passenger vehicles are already being marketed in several countries in Europe, Africa,

the Middle East, Australia, South East Asia and South Asia. It has assembly operations

14


15/108

in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the

companys growth 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. The R&D establishment includes a team of 1400 scientists and engineers. The

company's Engineering Research Centre was established in 1966, and has facilities in

Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering technologies and

products. 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. The ERC in Pune, among whose

facilities are India's only certified crash-test facility and hemi-anechoic chamber for

testing of noise and vibration, has received several awards from the Government of

India. Some of the more prominent amongst them are the National Award for Research

and Development Efforts in Industry in the Mechanical Engineering Industries sector in

1999, the National Award for Successful Commercialization of Indigenous Technology

by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in

2004.

The company set up the Tata Motors European Technical Centre (TMETC) in

2005 in the UK. TMETC is engaged in design engineering and development of

products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle

Company and Hispano Carrocera also have R&D establishments at Gunsan in South

Korea and Zaragoza in Spain. The pace of new product development has quickened

through an organisation-wide structured New Product Introduction (NPI) process. The

process with its formal structure for introducing new vehicles in the market brings in

greater discipline in project execution.

The NPI process helped Tata Motors create a new segment, in 2005, by

launching the Tata Ace, Indias first indigenously developed mini-truck. 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 focusing on

environment-friendly technologies in emissions and alternative fuels.

15


16/108

Through its subsidiaries, the company is engaged in engineering and automotivesolutions, construction equipment manufacturing, automotive vehicle componentsmanufacturing and supply chain activities, machine tools and factory automationsolutions, high-precision tooling and plastic and electronic components for automotiveand computer applications, and automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter andspirit to Corporate Social Responsibility. It is a signatory to the United Nations GlobalCompact, and is engaged in community and social initiatives on labor and environmentstandards in compliance with the principles of the Global Compact. In accordance withthis, it plays an active role in community development, serving rural communitiesadjacent to its manufacturing locations.

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

16


17/108

Milestones since inception:

It has been a long and accelerated journey for Tata Motors, India's leading automobile

manufacturer. Some significant milestones in the company's journey towards excellence

and leadership1945 : Tata Engineering and Locomotive Co. Ltd. was

established to manufacture locomotives and other engineering products.

1948 : Steam road roller introduced in collaboration with

Marshall Sons (UK).

1954 : Collaboration with Daimler Benz AG, West Germany,

For manufacture of medium commercial vehicles. The

First vehicle rolled out within 6 months of the contract.

1959 : Research and Development Centre set up at Jamshedpur.

1961 : Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.

1966 : Setting up of the Engineering Research Centre at Pune to provide impetus to

automobile Research and Development.1971 : Introduction of DI engines.

1977 : First commercial vehicle manufactured in Pune.

1983 : Manufacture of Heavy Commercial Vehicle commences.

1985 : First hydraulic excavator produced with Hitachi collaboration.

1986 : Production of first light commercial vehicle, Tata 407, indigenously designed, followed

by Tata 608.

1989 : Introduction of the Tata mobile 206 - 3rd LCV model.

1991 : Launch of the 1st indigenous passenger car Tata Sierra.TAC 20 crane produced.

One millionth vehicle rolled out.

1992 : Launch of the Tata Estate.

1993 : Joint venture agreement signed with Cummins Engine Co. Inc. for the

manufacture of high horsepower and emission friendly diesel engines.

17


18/108

1994 : Launch of Tata Sumo - the multi utility vehicle.

Launch of LPT 709 - a full forward control, light commercial vehicle.

Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz

For manufacture of Mercedes Benz passenger cars in India.

Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing

turbochargers to be used on Cummins engines.

1995 : Mercedes Benz car E220 launched.

1996 : Tata Sumo deluxe launched.

1997 : Tata Sierra Turbo launched.

100,000th Tata Sumo rolled out.

1998 : Tata Safari - India's first sports utility vehicle launched.

2 millionth vehicles rolled out.

Indica, India's first fully indigenous passenger car launched.

1999 : 115,000 bookings for Indica registered against full payment within a week.

Commercial production of Indica commences in full swing.

2000 : First consignment of 160 Indicas shipped to Malta.

Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched. Utility vehicles with Bharat 2 (Euro II) compliant engine launched. Indica 2000 (Euro II) with multi point fuel injection petrol engine launched. Launch of CNG buses. Launch of 1109 vehicle - Intermediate commercial vehicle.

2001 : Indica V2 launched - 2nd generation Indica.

100,000th Indica wheeled out. Launch of CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's number one car in its segment.

18


19/108

2002 : Unveiling of the Tata Sedan at Auto Expo 2002. Petrol version of Indica V2 launched. Launch of the EX series in Commercial vehicles.

Launch of the Tata 207 DI. 2,00,000th Indica rolled out. 5,00,000th passenger vehicle rolled out. Launch of the Tata Sumo'+' Series Launch of the Tata Indigo.

Tata Engineering signed a product agreement with MG Rover of the UK.

2003 : Launch of the Tata Safari Limited Edition.

The Tata Indigo Station Wagon unveiled at the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors

Limited. 3 millionth vehicles produced. First City Rover rolled out 135 PS Tata Safari EXi Petrol launched

Tata SFC 407 EX Turbo launched

2004 : Tata Motors unveils new product range at Auto Expo '04. New Tata Indica V2 launched Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement Indigo Advent unveiled at Geneva Motor Show Tata Motors completes acquisition of Daewoo Commercial Vehicle Company Tata LPT 909 EX launched Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty truck

'NOVUS' , in Korea

Sumo Victa launched Indigo Marina launched. Tata Motors lists on the NYSE

2005 : Tata Motors rolls out the 500,000th Passenger Car from its Car Plant

Facility in Pune. The Tata Xover unveiled at the 75th Geneva Motor Show

19


20/108

Branded buses and coaches - Starbus and Globus - launched

Tata Motors acquires 21% stake in Hispano Carrocera SA. Tata Ace, India's first mini truck launched Tata Motors wins JRD QV award for business excellence. The power packed Safari Dicor is launched Introduction of Indigo SX series - luxury variant of Tata Indigo

Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced and sold Inauguration of new factory at Jamshedpur for Novus Tata TL 4X4 , India's first Sports Utility Truck(SUT) is launched Launch of Tata Novus

Launch of Novus range of medium trucks in Korea, by Tata Daewoo

Commercial Vehicle Co. (TDCV)

2006 : Tata Motors vehicle sales in India cross four million mark Tata Motors unveils new long wheel base premium Indigo & X-over concept at Auto

Expo 2006 Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built

buses & coaches for India & markets abroad Tata Motors first plant for small car to come up in West Bengal Tata Motors extends CNG options on its hatchback and estate range TDCV develops South Korea's first LNG-Powered Tractor- Trailer Tata Motors and Fiat Group announce three additional cooperation agreements

Tata Motors introduces a new Indigo range

2007 : Tata Motors launches the long wheel base Indigo XL, India's first stretch

limousine

Management:

20


21/108

Board of Directors:

Mr. Ratan N Tata (Chairman)Mr. N A Soonawala Dr. J J Irani

Mr. V R MehtaMr. R Gopalakrishnan Mr. Nusli N Wadia Mr. S M Palia Dr. R A Mashelkar Mr. Ravi Kant Mr. P M Telang

Senior Management:

Mr. Ravi Kant : Managing Director

Mr. P M Telang : Executive Director

Mr. Rajive Dube : President (Passenger Cars)

Mr. C Ramkrishnan : Chief Financial Officer

Mr. P Y Gurav : Vice President (Corporate Finance-Accounts and Taxation)

Dr. S J Tambe : Vice President (Human Resource)

Mr. Zackria Sait : Vice President (Technical Services)

Mr. A M Mankad : Head (Car Plant)

Mr. S B Borwankar : Head (Jamshedpur Plant)

Mr. S Krishnan : Vice President (Commercial-PCBU)

Mr. Ravi Pisharody : Vice President (Sales & Marketing)

Mr. H K Sethna : Company Secretary

Corporate CommunicationsMr. Debasis RayTel: 022 66657613 : Head - Corporate Communications

21


22/108

CHAIRMANS PROFILE

Mr. Ratan N Tata (Chairman)

Heading the Tata Group since 1991, Ratan N Tata is the Chairman of Tata Sons, holding

company of the Tata Group, and major Group companies including, Tata Motors, Tata

Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels,

Tata Teleservices and Tata Auto Comp. He is also Chairman of two of the largest private

sector promoted philanthropic trusts in India. During his tenure, the Group has further

expanded its global reach, with its revenues growing over six fold to Rs 97,000 crore

($21.9 billion).

Mr. Tata joined the Tata Group in December 1962. After serving in various companies, he

was appointed the Director-in-Charge of The National Radio & Heading the Tata Group

since 1991, Ratan N Tata is the Chairman of Tata Sons, holding company of the Tata

Group, and major Group companies including, Tata Motors, Tata Steel, Tata Consultancy

Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels, Tata Teleservices and

Tata Auto Comp. He is also Chairman of two of the largest private sector promoted

philanthropic trusts in India. During his tenure, the Group has further expanded its global

reach, with its revenues growing over six fold to Rs. 97,000 crore ($21.9 billion).

Mr. Tata joined the Tata Group in December 1962. After serving in various companies, he

was appointed the Director-in-Charge of the National Radio & Electronics Company

Limited (Nelco) in 1971. In 1981, he was named Chairman of Tata Industries, the Group's

22


23/108

other holding company, where he was responsible for transforming it into the Group's

strategy think-tank and a promoter of new ventures in high-technology businesses.

He is associated with various organizations in India and abroad in varying capacities,

some of which are: Chairman, government of India's Investment Commission Member, Prime Minister's Council on Trade and Industry Member, National Hydrogen Energy Board

Member, National Manufacturing Competitiveness Competitiveness Council Serving on the International Investment Council set up by the president of the

Republic of South Africa Serving the International Business Advisory Council of the British government to

advise the chancellor of the exchequer Member, International Advisory Council of Singapore's Economic Development

Board Member, Asia-Pacific Advisory Committee to the board of directors of the New

York Stock Exchange

Member, international advisory boards of the Mitsubishi Corporation, the American

International Group and JP Morgan Chase President, court of the Indian Institute of Science, Bangalore Chairman, council of management, Tata Institute of Fundamental Research,

Mumbai Member, board of trustees of the Rand Corporation, Cornell University and

University of Southern California, and the Foundation Board of the Ohio State

University Chair, advisory board of RAND's Center for Asia Pacific Policy Member, Global Business Council on HIV / AIDS and the programme board of the

Bill & Melinda Gates Foundation's India AIDS initiative

23


24/108

Mr. Tata received a Bachelor of Science degree in architecture from Cornell University in

1962. He worked briefly with Jones and Emmons in Los Angeles, California, before

returning to India in late 1962. He completed the Advanced Management Program at

Harvard Business School in 1975.

The government of India honored Mr. Tata with one of its highest civilian awards, the

Padma Bhushan, on Republic Day, January 26, 2000. He has also been conferred an

honorary doctorate in business administration by the Ohio State University, an honorary

doctorate in technology by the Asian Institute of Technology, Bangkok, and and honorary

doctorate in science by the University of Warwick.

24


25/108

Manufacturing:

Tata Motors owes its leading position in the Indian automobile industry to its strong focus

on indigenisation. This focus has driven the Company to set up world-class manufacturingunits with state-of-the-art technology. Every stage of product evolution-design,

development, manufacturing, assembly and quality control, is carried out meticulously.

Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and

Lucknow in the North.

Jamshedpur :

Established in1945, the Jamshedpur unit was the company's first unit and is spread over

an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab

& Cowl Factories, and the Novus. Engineering Division, which has one of the most

versatile tool making facilities in the Indian sub-continent.

Lucknow :

Tata Motors Lucknow is one of the youngest production facilities among all the Tata

Motors locations and was established in 1992 to meet the demand for Commercial

Vehicles in the Indian market.

Uttarakhand

The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand. The

plant will begin commercial production during the course of the year.

25
http://www.tatamotors.com/our_world/?ViewID=1http://www.tatamotors.com/our_world/?ViewID=3http://www.tatamotors.com/our_world/?ViewID=4http://www.tatamotors.com/our_world/?ViewID=1http://www.tatamotors.com/our_world/?ViewID=3http://www.tatamotors.com/our_world/?ViewID=4


26/108

Research:

Research & Development:

Research provides the much-needed inspiration for the birth of new ideas, which in turn

breathes new life into products. World-class automotive research and development arekey factors that contribute to the leadership of the Company.

Engineering Research Centre (ERC):

The Research Centre at Jamshedpur regularly upgrades components and aggregates. A

well-equipped torture track enables rigorous and exhaustive testing of modifications

before they are used as regular fitments.

Safety (CRASH TEST FACILITY) :

For Tata Motors, safety is of paramount importance. This avenue provides no room for the

slightest margin of error.

Tata Motors ERC is the only high-tech facility in India to evaluate the degree of passenger

safety in the event of any high-speed impact. Through a special crash test facility.

Different types of accidents are simulated; the results analyzed, and put to use in the

development of a vehicle that satisfies stringent international safety norms.

Special high-speed cameras record test crashes at the rate of 1000 frames per second.

An accident, for instance, at the speed of 50 kilometers per hour, lasts one eighth of a

second. Thus, 125 frames recorded by these cameras are available for study with the

completion of each individual test.

26


27/108

Minimizing Noise (ANECHOIC CHAMBER) :

Anechoic chamber is a highly sophisticated noise and vibration laboratory, the nerve

centre of which is a vast chamber lined with 88,000 cones projecting at various angles

from the walls and ceiling. It is one of its kinds in India and is developed completely within-house facilities.

Designing and Styling (CAD CENTRE) :

The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest

software. The CAD centre is a vital organ of ERC's Cab Design Section. CAD designinginvolves development of vehicle specifications, styling interiors and exteriors, reviewing

the styling from the engineering and aesthetic points of view, virtual prototyping to check

for design acceptability and feasibility of manufacture.

AWARDS:

PCBU bags Handa Golden Key Award

Tata Motors receives Uptime Champion Award 2007.Aggregates Business, CVBU, bags Best Supplier Award from ECEL.

'NDTV Profit' Business Leadership Award...

Tata Motors bags National Award for Excellence in Cost Management...

Tata Motors' TRAKIT bags silver award for 'Excellence in Design'...

Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality Aw...

Tata Motors was awarded four prestigious honors, at the 'CNBC TV18- Auto car.

Tata Motors chosen as India's Most Trusted Brand in Cars...Business today selects Mr. P.P. Kadle as India's Best CFO in 2005...

Pune Foundry Division bags prestigious Green Foundry Award...

Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...

ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards....

27
http://www.tatamotors.com/our_world/awards.php?getID=64&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=63&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=62&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=61&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=57&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=54&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=53&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=52&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=51&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=50&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=64&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=63&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=62&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=61&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=57&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=54&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=53&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=52&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=51&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=50&action=Pull&


28/108

Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence...

'Car Maker of the Year' Award for Tata Motors.

Tata Motors is 'Commercial Vehicle Manufacturer of the Year'

'CFO of the Year Award 2004' awarded to Mr. Praveen P Kadle, Executive Director Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility.

Tata Motors CVBU Pune wins National Energy Award.

Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'.

Tata Motors wins the first CSIR Diamond Jubilee Technology Award.

Tata Motors Jamshedpur & Lucknow win awards...

THE NEXT PEOPLE'S CAR:

28
http://www.tatamotors.com/our_world/awards.php?getID=48&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=46&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=45&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=41&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=38&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=37&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=35&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=48&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=46&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=45&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=41&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=38&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=37&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=35&action=Pull&


29/108

Tata Motors' plans would produce, in real terms, by far the cheapest car ever made.

An Indian car may soon earn a parking place in history alongside Ford's Model T,

Volkswagen's Beetle and the British Motor Corp.'s Mini, all of which put a set of wheels

within reach of millions of customers after they rolled onto the scene. Tata Motors is

developing a car it aims to sell for about $2,500 the cheapest, by far ever made.

# Source :(NYSE: TTM - news - people)

There is a lot riding on its small wheels. If the yet-to-be-named car is a success when it

goes on sale next year, it would herald the emergence of Tata Motors on the global auto

scene, mark the advent of India as a global center for small-car production and represent

a victory for those who advocate making cheap goods for potential customers at the"bottom of the pyramid" in emerging markets. Most of all, it would give millions of people

now relegated to lesser means of transportation the chance to drive cars.

It is a hugely ambitious project rivals have called it impossible for any company. But it is

audacious for one that hadnt even built cars a decade ago.

29


30/108

For decades Tata Motors has been India's largest commercial vehicle maker the Tata

logo appears on buses, dump trucks, ambulances and cement mixers. Sturdy as

elephants, they are a fixture of the Indian landscape. Owners inevitably paint the exteriors

in a cheerful riot of bright red, green, orange, blue and yellow and line the un-air-conditioned cabs with teakwood to keep them cooler in India's searing heat.

However ubiquitous, Tata's trucks faced a problem after the Indian government began

reforms that opened the Indian economy in 1991: the huge cyclical swings in demand

typical for commercial vehicles. To diversify, Tata would enter, at great expense, the less

volatile passenger car market.

Before the reforms Indian customers had so few choices that Tata was sheltered. When

demand tailed off it just worked down a waiting list, and there was never a need to

concern itself with customer desires. Sure enough, after the economy slumped in the late

1990s just when expenses for developing the passenger car hit home Tata truck and bus

sales plunged by 40% and Tata Motors lost $110 million in fiscal 2000. It was the first red

ink seen since 1945, when the company was founded to make locomotives. Executives

were stunned. "It was corporate India's biggest loss," says Ravi Kant, managing director

of Tata Motors. "The crisis changed us. We told ourselves, 'Never again.'"

But Tata Motors, part of India's largest conglomerate, first had to reset its ways. Like

many Indian companies protected for decades from foreign competition, Tata had gotten

to 2000 still fat and slow.

Change started with a spring 2000 meeting at the Lake house, a bungalow across the

street from the company's main factory in Pune, a three-hour drive east of Mumbai. Kant,

then in charge of the commercial vehicle division, needed fresh ideas instead of rigidresistance, so in an experiment, he called a meeting of 20 of his most promising young

Managers all under 35 years old.

"I have a problem," he said in his matter-of-fact tone. "The company is bleeding." He

asked for ideas on how to stop the gush of red ink. Okay, they told him, trim costs.

30


31/108

Girish Wagh was there, just 29 then. He remembers the shock of what came next. "Ravi

Kant said that 1% in cost cuts would be a rounding error. He asked for 10%!" says Wagh.

"Never had we thought of such a target." Every single year until then costs had gone up,

not down. Kant told them to present a basic plan that very afternoon, in front of him and

Alarmingly all their bosses.

They worked frantically. By the 3 p.m. meeting, their wildest ideas were on the table.

Taken together, they added up to 6.5%. "A breakthrough!" Kant remembers thinking. But

that's not what he said. "Please go back and think again," he told them. He needed 10%,

not 6.5%. "You've got three weeks." The young team took some measures even as it

scrounged for more. In came benchmarking, purchasing from Internet auctions, and

outsourcing parts to more efficient suppliers and boosting revenue by selling Tata-made

dies to other companies. Meanwhile, the Pune factory's veteran boss bought into the

project.

The transformation of Tata Motors had begun with the searing loss in 2000, but it

continued with a return to profit in the fiscal year ending March 2003. By then it was

producing two cars models and selling a bit abroad. Today, after buying or partnering, the

company has vehicle projects around the globe and exports 11% of output, mostly toSouth Africa.

Efficiency is way up: It now takes between 12 and 15 minutes to change a die on the

passenger car assembly line, down from two hours in 2000. The company's break-even

point for capacity utilization is one of the best in the industry worldwide. Between 2000

and 2006 nearly 6,000 workers left the company with early-retirement deals. Meanwhile,

the once radical e-sourcing idea has become routine for Tata, which ran 750 reverse

auctions on Ariba in the past year to bring down purchasing prices by an average of 7%

for everything from ball bearings to the milk served in the company cafeteria. Tata Motors

listed on the New York Stock Exchange in 2004. After thousands of changes, in the

quarter ending December 2006 Tata earned $116 million on revenue of $1.55 billion.

Annual revenue grew to $5.2 billion for the fiscal year ending in March 2006. Analysts

worry that high product development costs and rising commodities prices could lower

31


32/108

profit margins for the next few quarters.

The changes at Tata Motors are coming as India itself is transforming. With economic

growth charging along at 9% last year, more and more Indians can afford cars. But on the

highway from Mumbai to Pune, the new cars zoom past wooden carts filled withconstruction materials and pulled by ponies, camels, elephants or even people. Roadside

markets offer chickens and geese those chosen are slaughtered on the spot and usually

carried home on motor scooters. Outside the Tata Motors gates in Pune, a woman in a

flowing red sari balances a 3-foot-wide basket on her head. It holds snacks and drinks

and serves as a roving roadside shop.

Inside the company gates is a modern factory complex. In one building, just past a small

statue of the beloved Hindu elephant god Ganesha, robots pick up pieces of sheet metaland feed them into a series of 30-foot-tall stamping presses every ten seconds until the

left-side door of a Tata Safari suv is formed. In a building nearby, workers in navy-blue

uniforms use computer-aided designs from Tata engineers to create tools and dies used

to make those sheet-metal stampings. Tata Motors boosts its revenue by making dies for

Jaguar, Ford, General Motors and Toyota too, just as it does by allowing the made-in-

India Mercedes to be run

through its paint shop.

# Source : (NYSE: GM - news - people) & (NYSE: TM - news - people)

Workers at the Tata Motors factory have been trained in Japanese manufacturing

techniques that call for continuous improvement. A worker building Safaris noticed that

each day on average, one front grille was ruined when a worker leaned over to work on

the engine and accidentally scratched the grille with his belt buckle. Cost: about 2,500

rupees $57 a day, or $17,000 a year. Tata designed a simple protective cover for thegrilles, plus a slip-on fabric cover for belts and watches that is now used to cut down on

expensive waste at each of Tata Motors' factories. Cost: about 25 cents per vehicle.

That's the sort of thing that Girish Wagh, one of the breakfast-meeting whiz kids, was

working to foster when Kant called him in unexpectedly in December 2000. Kant needed

32


33/108

someone to take on a risky project to extend the truck line beyond the sturdy Tata

mainstays. Kant wanted one cheap enough to compete with three-wheeled, motorized

rickshaws and even considered building a small, three-wheeled truck.

Before starting the project, Wagh did something no one at Tata Motors ever had: He

talked to customers. The three-wheeler men inevitably insisted on a cheap, dependable

truck that could go from village to market carrying, say, 200 chickens, a ton of onions or

potatoes, or 2,000 eggs. One night, as sunset approached, Wagh stuck with one rickshaw

driver. "I kept asking the question. Why? Why? Why do you want a four-wheeler?" Wagh

remembered. Finally, he got the real answer. It turned out it wasn't really a problem of

chickens or eggs. "If I had a four-wheeler, I would have better marriage prospects in my

village," the young man said. Drivers of three-wheelers are looked down upon in India.

Wagh realized that four wheels had emotional, not just practical, appeal.

When Tata Motors brought out the bare-bones Ace truck in May 2005 for just $5,100, it

had a monster hit: The company sold 100,000 in 20 months. To try to keep up with

demand, it offers the truck only in white to save the time it takes to change colors in the

factory paint shop. Tata is building a new factory that will be able to turn out 250,000 a

year starting this month.

So when Tata Motors needed someone to take charge of the company's most ambitious

plan yet to build the world's cheapest car ever Ravi Kant, who by then had become the

company's managing director, again turned to Wagh. Wagh remembers what he learned

marketing the little truck. "People want to move from two-wheelers to four-wheelers," he

says. Today they cant afford it.

More and more can, but Indian car buyers today represent a tiny slice of a potentially

giant market India has just seven cars per 1,000 people. India's auto industry has grownan average of 12% for the past decade, but just 1.3 million passenger vehicles were sold

in India in the fiscal year ending March 2006. That means a billion Indians buy about the

same number of cars in a year as 300 million Americans buy in a month.

If four wheels cost as little as two wheels, that could change fast. About 7 million scooters

33


34/108

and motorcycles were sold in India last year, typically for prices between 30,000 rupees

and 70,000 rupees, about $675 to $1,600. Tata is targeting a price of 100,000 rupees one

lakh, in Indian terms of measurement or about $2,500 at current exchange rates, for its

small car. That sounds impossibly cheap in the West but remains three times higher than

India's annual per capita income.

Within a few years 2 million of those motorcycle owners may trade up to buy the Tata car,

Figures McKinsey and Co. partner Ramesh Mangaleshwaran in Mumbai.

Trying to build a car cheap enough for motorcycle buyers seems to make sense now but

seemed crazy several years ago when Ratan Tata, longtime chairman of Tata Motors and

scion of the nation's giant Tata Group conglomerate, first mentioned his dream of building

a one-lakh car in 2003. "They are still saying it can't be done," he says, insisting that it canand will. "Everybody is talking of small cars as $5,000 or $7,000. After we get done with it,

there will hopefully be a new definition of low-cost.

Many low-cost car producers have set up shop in India, and McKinsey believes it could

become a global hub for small-car production the way the U.S. is for pickups. Hyundai

and Suzuki (other-otc: SZKMF.PK - news - people ) build their small cars in India, and

Toyota is considering an India hub. Passenger vehicle exports grew by 13% last year to

192,000, according to J.D. Power and Associates, with Hyundai exporting more than110,000. A one-lakh car is unlikely to be sold in the U.S. But it wouldn't be aimed only at

India, either, Ratan Tata says. Bottom-of-the-pyramid markets would be the best fit:

places like Africa, Southeast Asia and maybe eastern Europe and Latin America,

Wherever income levels mirror Indias.

The cost target is tough, but there are plenty of other hurdles at home. India's inadequate

roads, for one. Roads and highways are being built nationwide, but if India goes car crazy,

maddeningly slow traffic is inevitable for several years. By far the biggest struggle in Indiais political. The People's Car factory is already caught in the crossfire, as politicians and

pressure groups squabble over forcing destitute farmers off their land for a project

expected to bring 10,000 jobs to industry-hungry West Bengal. The company signed the

final deal with the state last month and has begun the property's boundary walls, land

leveling, and road and building plans. "We've lost four months," says Ratan Tata. So far.

34


35/108

He is still personally driving the People's Car project. It is a rear-engined, four-door, four-

seat car that will get around on 33hp more pep than the Model T or the VW Beetle had

when they drove onto the scene. The cheapest versions won't have air-conditioning or

power steering, but Tata hopes its cute looks will make up for missing creature comforts

just as happened with the VW Beetle and the Mini long before it.

Tata Motors has not released a photo of its prototypes, but Ratan Tata, a trained architect

with a penchant for designing consumer goods, sketched its outlines for a reporter's eyes

only. He drew an egg-shaped car with a ceiling high enough to handle his tall frame. He

pointed proudly to the air intake scoop in front of the rear tires and the vertical taillights

similar to those found on the Tata Indica. Under the front hood it will have a small storage

space, "like an overhead bin" on an airplane, Tata says. "It is not as small as a Smart," he

says. "It is not a car with plastic curtains or no roof it's a real car."

TATA NANO - THE LITTLE CAR THAT MIGHTCHANGE THE WORLD

35


36/108

TECH SPECS:

Length : 3.1 mWidth : 1.5 mHeight : 1.6 mTo seat : 4Engine : 643cc, 2-cylinder, all-aluminumPower : 33 BHPPosition : Engine, battery at rear endBoot : In frontFuel : PetrolFuel injection : MPFIFuel consumption : 20 kmpl.AC : Only in deluxe versionPassenger side mirror : NoPower steering : NoPrice : $2500 at dealer + VAT + transport cost. Base version

approximate on-road price: $3000Tyres : Tubeless tyres.Body : All-steelSafety features : Crumple zones, intrusion-resistant doors, seat belts,

2 A-PillarsSuspension : Independent front and rear

Seldom do we see cars that rewrite the history books even before they are seen running

around on the roads. And hardly ever do we see cars that vow to put the nation on four

wheels. The Tata Nano is one such car a car that has been in the news for quite a few

years, for reasons good and evil. Nano is a car which has breathed into life due to one

36


37/108

man. Give credit to Mr. Ratan Tata for his determination to build a low cost family car that

has come true, finally! Took long it did, but the Nano came in a beautiful form. Touted as

worlds cheapest car by a far cry, Nano has been the talk of the town around the globe.

Head honchos of big organizations have been pouring in by numbers to have a look at

this engineering masterpiece. We bring you some interesting bits.

Looks:

Numbers first.

Length 3100mm

Width 1500mm

Height 1600mm

Wheelbase 2230mm.

Ground Clearance 180mm

You will be wondering why I am talking about the dimensions of the Nano, since all of you

know that it is a rather compact and tiny machine. It is because I have good reason to talk

about the dimensions. You see, the Nano is going to be faced with Maruti 800 as its main

rival. But you could throw in the Alto and Zen Estilo to mark out some design and

packaging aspects. Just to get things in perspective, Nano is over 230mm shorter than

800 in overall length but the wheelbase advantage of 155mm over the offering from Maruti

makes sure that the Nano is more accommodating than the 800. Tata has managed tosqueeze out a 60mm advantage in width and Maruti 800 falls short of about 100mm in

height. So in essence,

you get more legroom, better shoulder room and room more than enough for a turban, if

you wear one! But before you enter inside, you are bound to gape in admiration at the

beautifully crafted curves of this micro car. I personally feel that the front has a lot of Zen

Estilo written on it, but manages to look really funky and cool.

The mono-volume design establishes a sea of change from the two-box layout of the 800.

What it ensures the Nano with is extremely short overhangs and tight packaging. For a

car of this size and image, the Nano is an extremely sexy looking car with futuristic design

cues. The bonnet line is steep and unites together with the bumper in a seamless way.

Though there is no grille per se, the front has a smiling look which accentuates the

37


38/108

happy feeling. The fog lamps are incorporated in the bumper which has a distinct air dam

running across in between them. In profile, the Nano resembles Mitsubishis latest small

car i. The rear of the Nano is somewhat recognizable. The tail lamps are inspired from

elder sister, Indica. So this is a very compact hatchback, yes? No my friend, you are

massively wrong. Even I was dumbfounded when I discovered that the Nano cannot be

called a hatchback a word so true to the way the small cars are. The reason for this is

because it does not have a hatch! The tail gate cannot be opened owing to it being joined

together with the boot sill. This makes accessing the engine a pain in the bottom. But a

hatchback it will be called still. The back side of the Nano is made attractive by the mid

mounted exhaust pipe which peeps out of the aggressively designed bumper.

The ultra-secret people's car for India - the Tata Nano - is here. Howwill this car change the way India, and the developing countriesdrive?

It will help India's huge two wheeler popular upgrade to a four-wheeler Very affordable - priced a bit higher 2 125cc motorcycles in India

38


39/108

If popular, will clog roads in the cities Establish a huge volume market that cannot be ignored by any large car

manufacturer 40 patents by Tata Motors during development

Here are the pictures from the unveiling of the Tata Motors' small car to be sold at a price

of US $ 2500 approx. (Rs. 1 lakh.). The Tata Nano was unveiled at the 9th Auto Expo in

New Delhi, India.

The Nano is disruptive tech - make no mistake.

The world's car manufacturers have expressed all shades of opinion in the run-up to the

Tata Nano. Suzuki has said that it is impossible V W said it is not what they want to do.

DaimlerChrysler said they think it is an important market Tata is trying to tap.There was no way Tata could design a car the conventional way. So went at it on a clean

slate. And seems to have pulled it off. The rear engined car will have a small boot for

luggage storage in the front. In the process of developing the Nano, Tata Motors has

added 40 patents to its kitty.

This car, if it becomes a hit, will make every auto company change the way it works

and look at the volume market. Not only in India, but in entire Asia and every third world

country. Offering mobility for the masses is big business. The VW Beetle did that, and sodid Henry Ford.

Environmental ImpactIn India, a car like this can crowd the streets, forcing the government to improve

infrastructure - and as the evolution of the Western industrial society demonstrates,

affordable cars can be a major force for change. But till that happens, this is a car that can

seriously crowd the streets - and make life a bit tougher in the short-term.

39


40/108

The car will have a two-cylinder 624-cc petrol engine with 33 bhp of power.

It will also have a 30-litre fuel tank and four-speed manual gearshift. The car will come

with air conditioning in the deluxe version, but will have no power steering. I know, that's

pathetic power by American and Western standards. But Indian maximum legal speeds

are way lower than them - and Tata Motors anyway claims that the car is as fast as the

Maruti 800, India's original People's Car that changed things a couple decades back. And

there are a million or more of them on the streets of India already. The car will have front

disk and rear drum brakes. The company claims mileage of 22 kmpl in city and 26 kmpl

on highway.

The $ 2500 is the dealer price - the actual price on the road might be approx Rs. $3000.

The car would be commercially launched in the second half of 2008 and would be

produced at the Singur plant in West Bengal.

The car launched is being avidly watched by the auto industry around the world.

As attractive as the Nano is on the outside, the same cannot be said for the interior. The

plastics feel cheap and it is here that you begin to feel the concern towards the price that

Tata was aiming at. The rudimentary knobs and switches point towards the use of

materials which would be better off in tractors twenty years old! Dreary and uninspiring by

any measure, thats what one can say about the interior quality and looks. Whatimpressed me though was the layout. Spacious and functional, the dashboard has a

curved look which can prove beneficial when it comes to storing items. The Chevy Spark

started it for the small cars and the Nano continues on what seems to be the current

trend. The instrument binnacle is mid-mounted and the centre console has a swooping

form which houses all the important knobs and air con vents. Speakers for the audio

system have been incorporated on the rear bench just under the seat area.

The speedo is calibrated to a top whack of 120kmph though we shall reserve our

statements on that till we test the car thoroughly. Cash saving activity has gone a bit toofar with the sun visor, theres only one! Please Tata, please, have mercy on the people

who will sit on the passenger seat, only to find no sun visor to protect their skin from sun

or no vanity mirror for women (men too, going by the current fashion!) to put the make-up

on. The centre console, forming a crest in the middle of the dash, can be worrisome if you

happen to be as tall as Rajpal Yadav. The seats have integrated head restraints, like in

40


41/108

the hugely popular, Hyundai i10. Yes the Nano will be deprived of a lot of creature

comforts but to satisfy your salivating mouth, Tata will offer the top end version with air

con, power windows and power steering. This car is destined to be exported too, so

provision for ABS and airbags will also be there for sure. The floor mounted four-speed

gearbox wasnt smooth as silk but would give the 800 something to take inspiration from.

Roominess is what this compact car from Tata is all about. Four average sized Indians will

find themselves enjoying their ride .

SAFETY

Passes crash tests. Side impact test yet to be done, but Tata is confident about it. It has 2

A-pillars on one side to better meet safety norms. No airbags. Airbags are still not a

required feature in India. But you have crumple zones, intrusion-resistant doors, seatbelts

and anchorages.

A four wheeler is safe than a scooter. So to begin with, the huge two wheeler population

of India gains a safety benefit. But will it pass the safety requirements of a large car or

even a high technology compact? Unlikely. But that is not the objective - it is to improve

the safety of four-member families like this one that rides scooters and at risk every day.

And so here it is. If Tata Motors is right, we could be witnessing a serious disruptive force

and one that might kick-start India on to a high growth path. Successful mass market

mobility does that to a country.

MECHANICALS:

Everyone, and it does not discount the motoring journos, expected the One Lakh Car tohave a plastic body. But boy did Tata play it big there! Contrary to everyones belief, the

Nano is a metal-bodied car with four full-blown doors to ease the ingress and egress. This

is a uni-body construction but makes use of a sub-frame which adds to the strength in

addition to providing support for drive train and suspension units. The suspension has a

story of its own altogether! Well, Tata engineers said that since the rear-biased weight

41


42/108

distribution led to some scary moments while testing the car, they had to optimize the

suspension setup and add a fair amount of other eccentric but equally helpful technical

add-ons like fatter rear tyre while the battery box and fuel tank are placed right

underneath the arse of front occupants.

The engine is what has been the buzz word around the car. It is an all-aluminum two

cylinder engine displacing 624cc with two valves per cylinder driven by a single overhead

camshaft. The bore and stroke are nearly similar giving it a square form. Making the

Nano move will be the power of 33 horses which will peak out at 5500rpm while 48Nm of

turning force will be supplied at a meager 2500rpm which should help the drivability of the

car. The Nano will transmit its small amount of power via a 4-speed cable operated

gearbox with the fourth being an overdriven ratio. Tata is working on developing an

automatic gearbox as well but that will not be available when the car gets launched later

this year. In addition to the 624cc petrol engine, the Indian auto giant might also bring out

a common-rail diesel engine (700cc) which might be of the same architecture as the one

seen on Tata Ace.

As it was famous, Tatas One Lakh Car will not exactly be that. Not a one lakh rupee car it

will be. The base version, when it will come to a parking halt will see you shed close to

1.2lakh while the one which will sit in between with some necessary creature comforts will

be priced in the vicinity of 1.5lakh. The top end might retail for close to 2.0lakh, we

speculate.

Quick Specs:

Price : 1.2lakh onwards

Engine : 624cc, in-line, twin-cylinder

Power : 34PS@5500rpm

Torque : 48Nm@2500rpm

Gearbox : 4-speed manual, Cable operated

42


43/108

Top Speed : 95-100kmph (Speculated)

Fuel Efficiency : 20kmpl (claimed)

Length : 3100mm

Width : 1500mm

Height : 1600mm

Wheelbase : 2230mm

Ground Clearance : 180mm

Fuel Tank Capacity : 15lt.

Kerb Weight : 600kg.

LATEST NEWS

Tata Motors takes forward its initiative to support primary and secondary

education in Singur

Taking forward its initiative to support the cause of primary and secondary school

education in Singur, Tata Motors today helped a primary school in Joymollah upgrade its

43


44/108

infrastructure. The company provided desks, benches, chairs, tables, cupboards and

electrical fittings in addition to educational and sports material to the school, in the

presence of school authorities, officials from the panchayat and local administration, Tata

Motors' officials, school students and residents. Tata Motors had flagged off its education

initiative with a similar activity in a primary school in Ruidaspara, Beraberi recently.

As part of its initiative, Tata Motors recently set up a computer laboratory in a high school

in Beraberi, and has provided 5 computers, 5 CVTs (stabilizers) and 5 computer tables

and chairs to the school. The computer laboratory was inaugurated by Mr. Prosenjit

Chakraborty, Block Development Officer. The company has planned similar programmes

to upgrade school infrastructure in the project area.

This initiative is part of Tata Motors comprehensive community development programmefor Singur, in line with the companys practices in other locations. The three focus areas in

Singur are Health, Education and Livelihood. The programme includes: a) training,

according to an individuals educational qualifications and skill, to improve their

employability; b) training women for employability through facilitation of cooperative

societies to produce a diverse range of items, which could be used in the Tata Motors

plant or the vendor plants; and c) social development in the Singur area, through

community centers, and support for primary health, provision for drinking water,

primary/secondary education and adult education.

As part of its health initiative, Tata Motors has been regularly conducting health camps in

Beraberi and Joymolla, where patients receive treatment and medicines. Till date, over 54

health camps have been conducted, where over 10,170 villagers were treated.

Tata Motors recently inducted a batch of around 100 youth as apprentices at the Singur

plant. This batch comprises youth from Singur villages and from various ITIs of West

Bengal. 16 local youth, educated in state-run Industrial Training Institutes (ITI) have been

appointed as employees at the Singur plant from October 2007. 300 others are

undergoing training. On successful completion of the training programme, the trainees will

take the trade tests to qualify for trade certificates issued by the National Council for

44


45/108

Vocational Training (NCVT) and will become eligible for apprenticeship training at the

Singur plant and vendor facilities.

Tata to ride Nano to Geneva Motor Show

Tata Motors' Nano, easily the world's most talked-about car these days, will make its

international debut at the 78th Geneva Motor Show in the first week of March. The five-

door hatchback that costs just Rs 100,000 ($2,500), making it the world's cheapest, was

unveiled in January this year at the Auto Expo here. Nano would be among Tata Motors'

exhibits at the show, a company spokesperson said here.

Sales of Nano, nicknamed the people's car for its affordable pricing that will make four-

wheelers available to millions of middle-class people who hitherto rode two-wheelers, is

expected to start in the second half of this year.

Although the car has its share of critics, it has undeniably put India on the global

automotive map and has triggered a race among leading car makers to match the Nano

price-point. Already, car manufacturers Renault and Nissan are eyeing a $3000 car.

The Nano, which Tata Motors has said meets all safety and emission norms, will share

the limelight with top marques from around the world that are expected at the show. This

year's edition of the Geneva Motor Show will mark the 11th year of participation for Tata

Motors. Tata Motors' Nano, easily the world's most talked-about car these days, will make

its international debut at the 78th Geneva Motor Show in the first week of March. # Source :The Economic Times February 7th, 2008

What gave Nano a headstart ?

The Nano could potentially challenge the conventional wisdom within the auto industry

that wholly new concepts do not live long enough. New launches basically add a whistle

here and a bell there to the plethora of existing models. Indeed, in more than 70 car

launches worldwide, there have been not more than a handful of seminal shifts within this

45


46/108

industry.

But the Tata offering has come to topple all those casts by reordering the status-quo. The

whole story seems to strike two notes at once. The first one is true to the old adage

among businesses that the wise profit from giving that which profits their customers; thesecond dares to contrarily create and nurture a space that others overlooked or even

rejected.

Some known facts

Not too long ago, many pundits within the industry had held that small cars such as the

Maruti 800 have outlived their use and must, therefore, pack up. Yet, just into 2008, a

glowing Mr. Ratan Tata drove on to the stage in his Nano, that sports a far lower powered

engine and which may soon storm the Indian roads.Surprisingly, many of the same pundits who had bemoaned the twilight of Maruti 800 have

now begun to celebrate the business sense that the Nano exudes. It looks like, in any

case, the Tata Nano project has defied textbook constructs of successful venturing.

In fact, we knew for good reasons that there is much less money to be made in small

cars. We also knew that products conceived for specific markets have less possibility of

success than those visualized on a global basis.

And, admittedly, auto majors with a wider, deeper portfolio of cars are rightly believed to

be able to gain more profitably from a radical but relevant offering.

Such manufacturers, it is often acknowledged, are able to reap from the economies of

scale that can be got from sharing the costs of design, manufacture and retail, among

their entire product line-up.

Small-car concept

The Tata project bore none of the above usual stamps of success. Yet it is pretty hard toterm Nano anything but a success going by the reception it received. This perhaps

indicates that the real game is one of strategy.

Indeed, it is not so much about cars or of experience as about getting clear the underlying

concepts and attitudes. Ironically, Tata's capture of the "small car concept" is in itself

46


47/108

hardly path-breaking.

One recollects that when the Maruti 800 was introduced around the mid-1980s, it was,

even after adjusting for the then stronger rupee, an immensely affordable car (well below

a lakh of rupees). It was, in fact, India's first small, sweet car.

But, over time, the sweetness of Maruti 800 - rather than the real demand for small cars -

had diminished. That was primarily because of its price, which kept on surging.

What is certainly path-breaking is the price tag of the Nano. Even if we went all the way

back before all those price rises and income growth spread over the past two consecutive

decades, Nano's price would have still generated a landslide sales record in the mid-

1980s.

The price element

And, what is important is, where a pre-liberalised mid-1980s represented stunted buying

power, "today's India" that is to receive the Nano, represents greatly enlarged buying

power.

This, in effect, gives the Nano an exceptional welcome thrust. Besides the element of

price-point - where Tata Motors led the pack on a wide margin - almost every other major

car company in the world seems to have otherwise just as seriously investigated small

cars.

If anything, notwithstanding the environment dimension, the persistently high oil prices of

the present decade have, in fact, made all makers gravitate toward more fuel-efficient,

smaller cars.

The key question, then, is: With so many auto firms zeroing in on small cars, how did Tata

Motors achieve such astounding price levels? Indeed, when global industry majors were

talking about a small car with trendy, tiny engines, they were all, in effect, attempting to

scale down on what they were traditionally good at: Medium and big cars.

Two perspectives

Unlike Tata Motors, almost none of the global majors had paid due attention to the

47


48/108

thought of an all-new small car. There is, for sure, a big difference between scaling down

a big-sized car to a viable small size and creating one ab initio.

The gamut of idea

Date post:	09-Apr-2018
Category:	Documents
Upload:	darius-dsouza
View:	218 times
Download:	0 times

Perception of People About NANO Car in Mumbai City Research & QuestioneerNEW

Documents