Study of Variables Influencing Purchase of Tata Nano With Respect to Driving Schools in Bangalore...

8/6/2019 Study of Variables Influencing Purchase of Tata Nano With Respect to Driving Schools in Bangalore City

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Variables influencing purchase of Tata Nano w.r.t Driving schools

PESIT, Department of MBA Page 1

INDUSTRY PROFILE:

Hailed as the Industry of Industries by Peter Drucker, the founder father of study of

management, in 1946, the automobile industry has evolved continuously with the changing

times from craft production in 1890s to mass production in 1910s to lean production

techniques in the 1970s.

The history of automobile begins as early as 1769, with the creation of steam

engine automobiles capable of human transport. In 1806, the first cars powered by an internal

combustion running on fuel gas appeared, which led to the introduction in 1885 of the

ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered

by electric powe briefly appeared at the turn of the 20th century, but largely disappeared from

use until the turn of the 21st century. The need to reduce the amount of air

pollution generated by transportation has raised new interest in electric and hybrid vehicles.

The early history of the automobile can be divided into a number of eras, based on the

prevalent method of automotive propulsion during that time. Later periods were defined by

trends in exterior styling, and size and utility preferences.

The automobile sector is expected to grow at 12-15% over next 3-4 years. India becoming

small car export hub as automakers rushes to set up factories. industry has a strong multiplier

effect on the economy due to its deep forward and backward linkages with several key

segments of the economy. The automobile industry that was plagued by the economic

downturn amidst a credit crisis. It managed a growth of 0.7 % in 2008-09 with passenger car

sales registering 1.31 % growth while the commercial vehicle segment slumped 21.7

%.Indian automobile industry has come a long way from the era of the Ambassador car to

Maruti 800 to latest Nano. The industry is highly competitive with a number of global and

Indian companies present today. It is projected to be the third largest auto industry by 2030

and just behind US & China, according to report. The industry is estimated to be US $ 34

billion. Indian Automobile industry can be divided into three segments.ie 2 wheeler, 3

wheeler and 4 wheeler segments. The domestic 2 wheeler market is dominated by Indian as

well as foreign players such as Bajaj Auto, Honda Motors, TVS Motors and Suzuki etc.

Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country.

India is considered a strategic market by Suzuki, Yamaha etc. Commercial Vehicle market is


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Variabl i l i purchase of Tata Nano w.r.t Dri ing schools

PE I Depart entof MBA Page 2

catered by TATA Motors, Ashok Leyland, Vol o, Force Motors etc. The major players have

notleft any stone unturned to become global. Majority ofthe players have gotinto the merger

activity with foreign counterparts, like Maruti with Suzuki, TATA with Fiat, Mahindra with

Renault, Force Motors with Mann.

A DIAGRAMATTIC REPRESENTATION OF INDIAN AUTOMOBILE INDUSTRY:

y

India is the second largesttwo-wheeler marketin the world

y Fourth largest commercial vehicle marketin the world

y 11th largest passenger car marketin the world

y Expected to be the seventh largest by 2016

y Targetto be $145 billion by 2016

y

India attaches more importance to knowledge and technology innovation in thedevelopment ofthe new and high technology industry.

y India may this achieve better developmentin the next few years.


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y Making India more attractive to automakers is its domestic demand coming from a

large affluent population that is loosening its purse strings, unlike in mature market

where over investment has cushioned sales.

y The first automotive was rolled out in India in 1897 in Mumbai.

y India is being recognized as potential emerging auto market, being ninth largest in the

world.

y Foreign players other than Suzuki are added to their investments in Indian auto

industry after Y2K.

y Within 2 wheeler, motorcycles contribute 80% of market segment.

y

Unlike the US, the Indian passenger vehicle market is dominated by cars(79%)

y Tata Motors dominates over 60% of the Indian commercial vehicle market.

y India is the largest 3 wheeler market in the world.

y India is the largest 2 wheeler manufacturer in the world.

y India is second largest tractor manufacturer in the world.

y India is the 4th largest car manufacturer in Asia and Maruti Suzuki being the largest

manufacturer and would be producing over 1 million cars during Y10-11).

y India has emerged 5th largest commercial vehicle manufacturer in the world .Indian

automobile sales has grow at around 10% and will touch 13,008 million by 2010.To

tap this large opportunity ,the Indian Auto companies along with global giants have

announced huge expansion plans.


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COMPANY PROFILE

(A)General Introduction : Background and inception of the company

Tata companies operate in seven business sectors like communication, Materials, Services,

energy, Consumer Products and chemicals and engineering. They have significant

international operations. The total revenue of Tata group companies taken together, was

$70.8 billion (RS.325,334 Crs.) in 2008-2009 ,With more than 64%revenue coming from

business operations outside India ,and they employ around 3,57,000 people worldwide .TheTata name has been respected in India for more than 100 years because of its strong values

and business ethics.

Every Tata company operates independently .Each of these companies has its own directors

and shareholders, To whom it is answerable .There are 28 publicly listed Tata companies and

they have a combined market capitalization of some $60billion,And a share holder base of

3.5 million .The major Tata companies are Tata motors, Tata steel, Tata consultancy service ,

Tata Tea, Tata communications, Tata chemicals, Tata Power and Indian Hotels.

Tata steel became the fifth largest steel maker in the world after it acquired Corus . Tata

motors are among the top five commercial vehicle manufacturers in the world and recently it

acquired jaguar and land rover of Britain for $2billion. TCS is one of the leading global

software companies.

Tata tea is the second largest branded tea company in the world, through its U.K based

subsidiary Tetley. Tata chemicals are the worlds largest producer of soda ash and Tata

communications is one of the largest companies.

Tata companies have always believed in returning wealth to the society they serve. Two

thirds of the equity of Tata sons, is held by philanthropic trusts that have created national

institutions for science and technology, research, social studies and the performing arts. The

trust also provides aid to non government organizations working in the areas of education,


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Healthcare and livelihoods. Tata companies also extend social welfare activities to

communities around their industrial units. The combined related expenditure of trusts and the

companies amount to 4 percent of the profits earned by the group.

(B)NAT RE OF B INE CARRIE

Tata motors is the Indias largest automobile company, With consolidated revenues ofRS.92,

519 Crores (USD 20 billion) in 2009-10. It is the leading commercial vehicle in each segment

, and among top three in passengers vehicle 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 second largest bus manufacturer.

The company's 24,000 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), Luck now (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad

(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial jointventure with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and

Tata cars and Fiat power trains. The company established a new plant at Sanand (Gujarat).

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

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

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

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

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

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

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

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

rechristened Tata Daewoo Commercial Vehicles Company has launched several new

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


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

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

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

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

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

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

markets.

In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant

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

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

with the Xenon having been launched in Thailand in 2008.

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

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

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

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

Russia, Senegal and South Africa.

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

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

offerings through leading edge R&D. With over 3,000 engineers and scientists, the

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

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

Lucknow, 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


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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 minimize weight, which

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

The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby

providing the twin benefits of an affordable transportation solution with a low carbon

footprint.

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

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

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

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

life-cycle cost.

Tata Motors is equally focused 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


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

focused 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 health care. 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.

(C)PHILOSOPHY:

The current growth rate of our economy with which we face the world provide a compelling

context in which corporate need to engage with the disadvantaged sections of our society.

The central theme of the Tata group statement ,Our purpose in Tata is to improve the quality

of life in the communities we serve is a powerful guiding statement. In the coming years ,it

will increasingly be necessary for corporate to encourage and generate internal passion for

volunteering and community service.

VISION:

TMLs vision is to be the best in the manner in which we operate in the products we deliver

and best in our value system and ethics .TML has come to be known as an innovator in the

passenger car segment not just in manufacturing but along multiple areas along the value

chain.

The Tata Indica and Tata nano are prime examples of the companys innovation capabilities

and the strengths of companys R&D efforts.

MISSION:

To become world class automotive engineering & product development centre and enable

Tata Motors to become a world class automotive company.

QUALITY POLICY:

Tata Company shall be committed to supply goods and services of world class quality

standards, backed by after sales services consistent with the requirements of its customers,

while striving for their total satisfaction. The quality standards of the companys goods and

services shall not meet applicable national and international standards. A Tata company shall


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display adequate health and safety labels, caveats and other necessary information on its

product packaging.

(D)PRODUCT PROFILE:


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(1)Passenger Car: Nano

Indica

Manza

Indica Vista

Indigo Sw

Fiat Linea

Fiat Punto

(2)Utility vehicles: Safari Dicor

Sumo

Sumo Victa

Xenon

(3)Trucks : Medium and heavy commercial vehicles

ICV(Intermediate Commercial vehicles)

LCV (light commercial vehicles)

HCV(Heavy Commercial vehicles)

(4)Commercial passenger carriers: Cars, Winger, magic


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(E)AREA OF OPERATION:

Tata motors have subsidiary/associate companies outside of India as under:

y Tata Daewoo commercial vehicle Co. ltd. Korea

y Nita company ltd. Bangladesh.

y Tata Precision Industries Pvt. Ltd. , Singapore.

y Tata Technologies Limited, USA/UK.

y

Tata Motors European Technical Centre, UK

y Tata Motors (SA) proprietary limited ,South Africa

y Tata Motors (Thailand) Limited, Thailand

y Hispano Carrocera S.A.., Spain

Tata Group is more than 150 years old. In terms of market capitalization and revenues, Tata

Group is the largest private corporate group in India has been recognized as one of the most

respected groups in the world. It has interests in Steel, Automobiles, and Information

technology, Communication, Power, Tea and Hospitality. The Tata group has operations in

more than 85 countries across six continents and its companies export products and services

to 80 nations. In the past few years ,The Tata group has led the growing appetite among

Indian companies to acquire businesses overseas in Europe, U.S, Australia and Africa-some

even several times larger in a bid to consolidate operations and emerge as the new age

multinationals. The Tata group is the 11th most reputable company in the world according to

Forbes. At home in the world anchored in India and committed to its traditional values of

leadership with trust, The Tata group is spreading its footprint globally through excellence

and innovation. The Tata groups revenues for 2007-08 from its international operations were$38.3 billion, which international business as an integral element in an overall strategy,

depending on the competitive dynamics of the industry in which it operates. Exports from

India remain the corner stone of the Tata groups international business, but different Tata

companies are increasingly investing in assets overseas through green field projects (such as

in South Africa, Bangladesh and Iran),Joint ventures (South Africa, Morocco and China) and


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acquisitions .Acquisitions are a critical components of the global expansion of Tata

enterprises. Over the past eight years the group has made overseas acquisitions of $18billion.

Among the bigger deals on his front have been Tetley, Brunner Mood, Corus, Jaguar and

Land Rover in the UK ,Daewoo Commercial vehicles in South Korea ,Nat Steel in Singapore

and Tyco Global Network and General Chemical in the US. Tata group is focusing on a

clutch of priority countries, which are expected to be of strategic importance in the years

ahead. The regions are North America, UK, China, Netherlands, Germany and South Africa

members of gulf cooperation council, Brazil, Vietnam, Thailand and Sri Lanka.

(F)OWNERSHIP PATTERNS:

Tata sons and Tata industries are the two promoter companies of Tata group.

Tata sons

The promoter company was started by group founder jamsetji Tata in 1868.It is the promoter

of all key companies of Tata group and holds the large percentage of shares in the company.

Tata Industries:

Tata industries was set up by Tata sons in 1945 as a managing agency for business.In early

1980s,to promote the groups ventures into several sectors ,including control systems,

information technology, Financial Services, Auto Components, Advanced materials and

telecom sectors. Tata motors has joint ventures, Subsidiary and associate companies Fewor

them are:

Jaguar Land rover

Telco construction equipment Co.ltd

Tata Daewoo commercial vehicles company ltd.

Hispano Caracara S.A(HC)

Concorde Motors LTd.

Tata motors Insurance Broking &advisory Services ltd.

Tata motors Thailand

Tata motors Finance ltd.

Tata motors marcopolo motors ltd.


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Tata motors (SA)proprietary ltd (TMSA)

Tata motors European Technical centre plc.

TAL Manufacturing solutions Ltd.

HV axles ltd.

Tata motors ltd. Is a public ltd company listed on Bombay stock exchange and national stock

exchange of India limited in India. Companys depository receipt programme is listed on The

New York Stock exchange.

MANAGEMENT:

Ratan Tata Chairman

Ravi kant Vice chairman,Non executive

N.A Soonawala Director

Dr.J.J Irani Director

R.Gopalkrishnan Director

N.N. Wadia Director

S.M.Palia Director

R.A.Mashelkar Director

Naseer Munjee Director

Subodh Bhargava Director

V.K.Jairath Director

P.M.Telang M.D-India operations

C.Ramakrishnan C.F.O

Mr. Carl-PeterForsterChief Executive Officer & Managing

Director


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(G) Competitors Information:

The popular myth that TATA Motors has some distinct advantages in comparison to other

multi nationals competitors, namely a cost advantage(in terms of labor costs) are not true as

TATA Motors has 8-9 % sales which is comparative with most multi nationals companies.

Also employee productivity in TATA Motors is less than 1/3 rd(in $ million sales/employee)

that of Toyota. Another advantage is the increasing demand in its own backyard of India, due

to in fracture developments and rising GDP. India remains one of the few developing auto

markets where domestic brands have managed to maintain a large presence. TATA and

fellow compatriots account for more than 60% of the passenger vehicle sales and 95% of

commercial vehicle sales. There are also favorable government policies and regulations in

place in order to help boost the auto industry. However, TATA has not been able to capitalize

on its global presence. TATA relies heavily on its sales in India and has not yet managed to

create a foothold international market even though it has a number of well reputed

subsidiaries. However, TATA Nano hopes to boost its international presence, at least in

developing countries.

Though it has an advantage in India, thanks to low cost and government policies it soon faces

stiff competition from multinational competitors, who may be interested in a share of the ever

growing Indian auto sector. Previously, a policy required majority owned subsidiaries of

foreign car forms to invest at least US $ 50 million in equity if it wishes to set up

manufacturing projects in India and mere car assembling operations were not allowed. An

Indian cabinet panel has since announced a new automobile policy that sets fresh investment

guidelines for foreign firms wishing to manufacture vehicles in the country. Investment in

making auto parts by a foreign vehicle maker will also be considered a part of the minimum

foreign investment made by it in an auto making subsidiary in India. The move is aimed at

helping India emerge as a hub for global manufacturing and sourcing for auto parts. The

policies adopted by government will increase competition in domestic market, motivate many

foreign commercial vehicle manufacturers to set up shops in India, which will make India as


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a production hub and export to nearest market. Thus TATA Motors will have to face tough

competition in near future, which might affect its growth negatively.

Currently, the presence of Suzuki through its subsidiaries, Maruti Suzuki in the Indian market

may also be alarmed. Maruti has aggressively launched family cars to undermine the Tata

Models. Tata has continued to be strong in the MUV and SUV sector due to lack of

competition and correct pricing. However, Tata now faces stiff competition from fellow

competitor Mahindra Group as well as multinational brand like Toyota and Chevrolet. In

addition, the growing presence of fellow Indian competitors, Mahindra and Force Motors not

only in India but also in the global market may affect Tatas sales. Mahindra and Force haveformed joint ventures with Renault and MAN respectively. Mahindra has also formed a 51:49

JV called Mahindra Navistar with ITEC,USA(parent Navistar International), to manufacture

commercial vehicles and to boost its position in the CV business .Ashok Leyland, which is

the second largest commercial manufacture in India has remained Tatas biggest competitor

in Indian heavy commercial vehicle market and with its acquisition of the Czech republic

Aviva it may manage to increase its presence in the neighboring markets such as Sri Lanka

,Nepal where Tata Motors has a monopoly. To counter the growth of these various companies

Tata has come up with revised or new models like Tata Indica Vista, Tata Indigo Manza, Tata

Xenon, Tata World Truck and an aggressive marketing policy.

(H)INFRASTRUCTURAL FACILITIES:

Jamshedhpur:

Established in 1945, 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. The divestments in March 2000 hived off the Axle and Engine plants into

independent subsidiaries viz. HVAL &HVTL, respectively.

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


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Indian market. The state of art plant is strongly backed by an Engineering Research Centre

and Service set-up to support with latest technology and cater to the complexities of

automobile manufacturing. Fully Built Vehicle business, which is one of the fast growing

areas of our business, is also established in Lucknow. The Lucknow facility also specializes

in manufacturing HCBS (High capacity Bus System) buses.

Uttarakhand:

The company has set up a plant for its mini-truck Ace and the passenger carrier Magic

(based on the Ace platform) at Pantnagar in Uttarakhand. The plant began commercial

production in August 2007. This is the company's fourth plant, after Jamshedpur (commercialvehicles), Pune (commercial vehicles and passenger vehicles) and Lucknow (commercial

vehicles). The plant is spread over 953 acres, of which 337 acres is occupied by the vendor

park.

Pune:

The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad

(130 acres). It was established in 1966 and has a Production Engineering Division, which has

one of the most versatile tool making facilities in the Indian sub-continent. It houses a

Vehicle manufacturing complex which is one of the most integrated automotive

manufacturing centers in the country producing a large variety of individual items and

aggregates. It is engaged in the design and manufacture of sophisticated press tools, jigs,

fixtures, gauges, metal pattern and special tools, as well as models for the development of

new ranges of automobile products. Its capabilities have enabled Tata Motors to introduce

new products and improve existing ones without resorting to imports of dies or fixtures.

Gujarat: Tata Motors plant for the Tata Nano at Sanand, in Ahmedabad district of Gujarat.

The capacity of the plant, to begin with, will be 250,000 cars per year to be achieved in

phases, and with some balancing is expandable up to 350,000 cars per year. Provision for

further capacity expansion has also been incorporated in this location.


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(I)ACHIEVEMENTS AND AWARDS:

The Tata Nano has received the world's oldest and most coveted GOOD

DESIGNTM Award for 2010, which is conferred annually by The Chicago

Athenaeum: Museum of Architecture and Design together with The European Centre

for Architecture Art Design and Urban Studies.

Lucknow Plant wins Rajiv Gandhi National Award for 2009.

Mr. Ravi Kant receives the Golden Peacock Corporate Award for Business

Leadership 2010.

CNBC TV18 has conferred Mr. C. Ramakrishnan with the award of Indian industrys

Best CFO, in the CNBC TV18 CFO Awards 2010.

CVBU Pune has received the Excellent Energy Efficient Unit award in the CII 11th

National Awards for Excellence in Energy Management - 2010.

CVBU Lucknow bags Excellent Energy Efficient Unit-Award for the second time in a

row

CVBU Pune declared winner of the MPCB Vasundhara Awards 2010

Car Plant Pune won three awards at the 25th Annual Chapter Convention of Quality

Circles on the August 7, 2010.

Tata Motors IT team bagged an award in IT Services Management category for

remedy implementation at ICMG Architecture World held in Bengaluru. The

conclave included enterprise architecture awards

Tata Motors, CVBU was awarded the coveted Golden Peacock Award

Land Rover double header at the Auto Express 2010 new car awards

The President and CEO of TDCV, Dr. Kim Jong-Shik, has been honoured as a top

business leader of South Korea.

Golden Peacock Award for Occupational Health & Safety for the year 2010

CVBU Lucknow bags 11 National Suggestion Summit awards.


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(J)WORK FLOW MODEL:

Stamping:

The steel sheet is cut according to the size of the part and then is bent and cut in a

stamping machine to make parts such as car doors, roofs, and hoods. The stamped

parts are inspected and then transported to the welding process.

Welding:

The steel sheet is cut according to the size of the part and then is bent and cut in a

stamping machine to make parts such as car doors, roofs, and hoods. The stamped

parts are inspected and then transported to the welding process.

Painting:

The welded bodies are washed and painted four times with an primer, a surfacer, and

a top coat and then with a clearcoat for a beautiful shine. This gives the car a beautiful

color and prevents rust. Toyota uses environmentally-friendly water-borne paints.

Primer: To apply the primer, the car is passed through a pool of paint that has

electricity passing through it to prevent rusting.

Surfacer: A robot evenly sprays on a gray paint to help the topcoat keep its color and

to make the car surface smooth.

Top Coat: A robot sprays on the final vehicle color from different angles to make an

even finish.

Clear Coat: Paint is applied for a beautiful finish, so the body shines like a mirror.

Making The Engine:


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Casting: Heat is used to melt steel and aluminum, and the molten metal is poured into

molds to make engine parts.

Forging: Machines are used to process heated metal to make gears and other parts.

Machining and Installations: The parts made by casting and forging are trimmed

and polished by machines. These parts are then used to assemble the engine and

suspension. The engine alone has as many as 550 parts.

Suppliers:

One car has approximately 30,000 parts counting every part down to the small screws.

These parts are made by suppliers located around the world. Suppliers use their

specialized knowledge and expertise to develop and improve parts.

Assembly: In the assembly process, a conveyor moves at a certain speed and parts are

assembled on the moving assembly line. Parts are attached according to customer

different, there are cars of different colors and shapes and with different parts on the

conveyor.

Production Instruction sheet :

Each car on the conveyor has a piece of paper attached that is called a Production

Instructions Sheet. The information tells the workers what parts that car needs. Each

customer's order is different, and by checking the Production Instructions Sheet, parts

can be assembled without making any mistakes.

Ergonomic Seat:

The Ergonomic Seat is a special work seat at the end of a mechanical arm that allows

team members to perform assembly work inside cars while sitting down. This

eliminates stress on the back and helps workers to perform their work efficiently and

easily.


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Mobile lifts:

These lifts automatically adjust the height of the car on the assembly line. This makes

it easier to assemble parts that go on the lower part of the car such as the bumpers.

Wagon Dolly:

Screws, tools and other items needed for work are placed on these carts. The

necessary items move together with the movement of the conveyor, eliminating

wasteful movement when taking tools.

Door Removal: After painting, the doors are removed to make the work easier.

Interior parts: Team members install parts that go inside the car such as meters, air

conditioning and audio parts while sitting in a Ergonomic Seat. This innovation

makes it easier to perform the work.

Windows: Windows are handled using large suction cups. Two workers form a team

and carefully install the windshield and rear window. Robots accurately apply the

necessary amount of glue.

Engine and Bumpers: Engines are transported from the engine factory in the order

that the cars are placed on the assembly conveyor. The engines are heavy, so a

machine is used to lift them up for mounting.

Seats and Doors: Seats are transported from the seat factory in the order that the cars

are placed on the assembly conveyor. A machine is used to put the seat inside the car

and then a worker attaches it. Door parts are installed on the doors that were removed

in the beginning on a separate line. These doors are then transported back to theassembly line and re-attached to the cars after all other parts have been installed.

Final Inspections:

The final step is inspection of the completed cars. Each car undergoes rigorous

inspections of more than 1,000 different things to make sure the brakes, windshield


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wipers, lights, and other parts work. Only after the car passes all inspections is it

shipped to the customer.

Finished cars:

Finished cars are transported on special trucks known as car carriers to dealers all

over the country and then handed over to customers. Special ships are used to

transport cars to far parts of Japan and other countries. This ship can carry 4,000 to

5,000 cars at one time.

Sales:

Sale are made through company dealers to the customers. Finished goods are

transported to various warehouses from their its transported to dealership amd

ultimately its delivered to customers.

(K) FUTURE GROWTH AND PROSPECTS:

Important new technology development programs at JLRinclude the development of

a hybrid power train which will be introduced in future models of Jaguar and Land

Rover.JLR is also planning to have all its future cars considered with light weightaluminum bodies resulting in considerable savings in weight and reduction in CO2

emissions.

TATA Motors signed a turkey contract with Myanmar Automobile & Diesel

Industries Limited(MADI), an enterprise under the Government of Myanmars

Ministery of Industrie-2,for setting up a heavy truck plant, at Magwe,approximately

480 kms from Yangon, funded by a Line of Credit from the Government of India. The

facilities planned at the plant include a heavy flexible chassis & frame assembly line

along with a cab manufacturing, painting & trimming setup. The plant is expected to become operational by last quarter of 2010-11, with a capacity of 1000 vehicles per

year. The capacity can be expanded to 5000 units.

TATA Motors is also displayed at Geneva this year the TATA Xenon Double Cab

pickup vehicle and TATA Indica Vista. The Xenon Double Cab is available in Italy,

Spain, Poland, Thailand, the UAE, Saudi Arabia and several countries in Africa. The


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TATA indica Vista has already been launched in South Africa, and will be introduced

in the companys European market. The other new generation cars of the company on

display will also be launched in international markets in a phase manner.

TATA Motors has been short listed for South Africas Taxi Project in which the

government will provide an entirely new transport system in that country. A joint

venture project for the bus body building in Ukraine and serious due diligence into the

opportunities available in the Chinese market are also areas where TATA Motors is

looking to create new opportunities.

The company recently signed a MOU with Daewoo Commercial Vehicle

Company in Korea to acquire into truck plant. The synergies are significant- a

presence in the 250 to 400 HP range of truck is what the Korean company brings to

the table. This complements the existing product range of TATA Motors which

delivers vehicles up to 210HP.

The TATA Aris, to be launched in the second quarter of this year, blends the

functionality and comfort of a mid range MPV with the all terrain assurance and

premium of an SUV. Its unique design and construction makes it robust, elegant and

comfortable. The interiors, with tree rows of theatre style seating present a luxurious

world of premium features comprising 3D surrounding sound, dimming roof lamps, in

dash built in GPS, a state of art information system, multifunctional steering wheel,

dual air conditioning automatic climate control and cruise control. The TATA magic

Iris, launched is for public transport, offering safer and more comfortable mobility for

those who depend on three wheelers. Its spacious car like cabin can comfortably seat

four passengers, three at back and one in the front beside the driver.


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(3) MCKinseys 7s framework:

The 7S framework first appeared in the art of Japan management by Rechard Pascal and

Anthony Athos in 1981.They had been looking at now Japanese industry so successfully at

the same time that Tom Peters and Robert were exploring what made a company excellent.

The 7 s model was born at the meeting of the four in 1978.It went on to appear in the search

of expeller and water man was taken up as a basic tool by the global management

consultancy.

The 7 s model is the tool for management analysis and action that provide a structure with

which to consider a company as a whole, so that the organization problems may be diagnosed

and a strategy may be developed and implemented.


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The 3 S across the top of the model are described as HARD Ss.

Strategy: The direction and the scope of the company in the long run.

Tata Motors is currently in a growth stage as stated on the website The Tata Motors Ltd is in

a mega expansion mode. The investment would be in product development, capital

expenditure in capacity enhancement, domestic and international acquisitions and mergers.

Ratan Tata said One hundred years from now, I expect the Tata to be a much bigger than it

is now. More importantly, I hope the group comes to be regarded as being the best in India,

best in the manner in which we operate, best in the products we deliver and best in our values

systems and ethics. Have said that, I hope that a hundred years from now we will spread our

wings far beyond India.

Systems: Formal and informal procedure that govern everyday activity, covering everything

from management information system, through to the systems at the point of contact with the

custom(retail systems, call centre systems, online systems ,etc).

A few of emerging trends and systems that will help improve the Intermodal Freight and the

Fleet Management Operations in the future are covered in this presentation.

Intelligent Transportation Systems(ITS):It applies advanced and emerging technologies in

such fields as information processing, communications ,control and electronics to service

transportation needs.

Intermodal Container Technologies: It incorporates Standardization ,Modernization and

Modernization of the container design for achieving easy handling and increasing durability.

In addition to the wide range of vehicles manufactured, Tata Motors has launched a

Commercial Fleet Management Systems called TRACK it, for most of their range of

commercial vehicles. TRACKit is one of the stepping stone towards the implementation of

ITS in India.


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Structure: The basic organization of the company, its departments, reporting lines, areas

of expertise and responsibility(and how they are inter related)

The 4S across the bottom of the model are less tangible, more cultural in nature and termed

Soft Ss by McKinsey.

Skills: The capabilities and competence that exist within the company that does best.

Tata Motors is also very well placed on the technological availability. The company had set

up its Engineering Research Center as early as 1966.With 1400 scientists and engineers and

state of art development, testing and validation facilities, it is this technology capability

which has, allowed Tata Motors, over the decade, to offer indigenously developed products.

This strength has been accentuated, with the inclusion of TMETC, TDCV and Hispono

Carrocers in the R&D network, besides several other specialist external agencies. The

company no longer needs to develop every necessary part itself. Today it just has to manage


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the process of product creation, drawing upon already available R&D and skills from

different sources.

Shared Values: The values and beliefs of the company ultimately guides the employeestowards valued behavior.

Core Values:

Tata has always been values driven. These values continue to direct the growth and business

of Tata companies. The five core Tata Values underpinning the way the business is done 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 communities

we serve.

Excellence: We must consistently strive to achieve the highest possible standards in our

day to day work and in the quality of goods and service we provide.

Utility: 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.

Staff: The companys people resources and how they are developed, trained and motivated.

Employees are the driving force of our organization. The permanent employees strength of

the company as 2009-10, with 57 per cent of this coming from business outside India. Tata

companies employ around 395,000 people worldwide. Recruitments across all levels,

extensive training and skills enhancement activities are carried out especially at the new

locations, in line with the companys expansion and growth plans. Companys cordial


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industrial relations were maintained at all times and the company entered the third wage

settlement with its union. There has been consistent improvement in productivity across all

locations. The company was awarded Indias Best Management Company for 2007-2008 in

the automotive sector by the Business Today based on a study conducted by Earnest and

Young.

Style: The leadership approach of the top management and the companys overall operating

approach.

Tatas leadership development programs and training processes aims at grooming the

managers of today into the leaders of tomorrow. The Tata groups commitment to enhance

the knowledge and leadership quotient of its people has resulted in the establishment of

institutions such as the Tata Management Training Center and the running of programs such

as TAS.

TAS:

This management development program was conceived by JRD Tata, the late chairman of the

Tat Group, in the 1950s. The idea was to select and groom young managers, provide them

opportunities for professional growth and making them part of a talent pool that could be

tapped by companies across the Tata organization.

TMTC:

The Tata Management Training Centre ,set in a lush campus in Pune in the western India

helps gropu professionals add to their knowledge bank. Primarily an in house learning centre

for the group ,its goal is to provide training to high performers, act as a cradle of change and

develop leadership qualities.

TATA Business Leadership award:

Initiated in 2004,this annual business school event organized by the Tata group. It offers

students from select management institutes a unique opportunity to compete with the

brightest and display their business acumen.


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SWOT Analysis:

STRENGTHS:

y Tata Motors can go forward in acquiring technology. The Tata Motors have proper

distribution channel caross India, but it utilization was much below its capacity. Thus Tata

Motors also formed joint venture with Fiat and gained access to Fiats diesel engine

technology so as to mentain its security of raw material at different levels, Tata have

extensive backward and forward linkages and it is strongly interwoven with machine toolsand metals sectors.

y The international strategy so far has been to keep local managers in new acquisitions, and

only transplant a couple of senior managers from India into new market. The benefit is that

Tata has been able to exchange expertise. For example after the Daewoo acquisition the

Indian company leaned word discipline and how to get the final product right first time.

y Their ability to make the least expensive car in the market, the Nano which was retailed for

$2500,is by far beyond what any car dealership has created. This innovation has given Tata

Motors their main competitive advantage. Tat Motors makes everything from tractor trailer to

the worlds least expensive car. This product diversity grants them a competitive advantage

over their competitors because they can satisfy more market and customer needs.

y 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.

WEAKNESS:

y The companys passenger car products are based upon 3rd and 4th generation platforms,

which put Tata Motors Limited at a disadvantage with competing car manufacturers.

y 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


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and easier financing options, the outlook for growth of passenger car sales remain positive.

According to a recent study by a global consulting firm, the average annual real house hold

disposable income in India is set to grow at a compounded annual growth rate of 5.3% from

over INR3000 in 2005 to INR319,000 in 2025.

THREATS:

y 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.

y Sustainability and environmentalism could mean extra costs for this low-cost producer. This

could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys

into other brands this problem could be alleviated.

y 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.y Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple

of fronts. The price of steel and aluminum is increasing putting pressure on the costs of

production. Many of Tatas products run on Diesel fuel which is becoming expensive

globally and within its traditional home market.

y The domestic passenger vehicle demand could be impacted by the growth of road and rail

based transit system.


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(5)Balance Sheet ofTATA Motors ( in Crores.)

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Source of Fund

Total Share Capital 382.87 385.41 385.54 514.05 570.60

Equity Share Capital 382.87 385.41 385.54 514.05 570.60

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 5,127.81 6,458.39 7,428.45 11,855.15 14,394.87

Revaluation Reserves 26.39 25.95 25.51 25.07 0.00

Net worth 5,537.07 6,869.75 7,839.50 12,394.27 14,965.47

Secured Loans 822.76 2,022.04 2,461.99 5,251.65 7,742.60

Unsecured Loans 2,114.08 1,987.10 3,818.53 7,913.91 8,883.31

Total Debt 2,936.84 4,009.14 6,280.52 13,165.56 16,625.91

Total Liabilities 8,473.91 10,878.89 14,120.02 25,559.83 31,591.38

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Application of Funds

Gross Block 7,971.55 8,775.80 10,830.83 13,905.17 18,416.81

Less: Accumulated.

Depreciation4,401.51 4,894.54 5,443.52 6,259.90 7,212.92

Net Block 3,570.04 3,881.26 5,387.31 7,645.27 11,203.89

Capital Work in Progress 951.19 2,513.32 5,064.96 6,954.04 5,232.15

Investments 2,015.15 2,477.00 4,910.27 12,968.13 22,336.90

Inventories 2,012.24 2,500.95 2,421.83 2,229.81 2,935.59

Sundry Debtors 715.78 782.18 1,130.73 1,555.20 2,391.92

Cash and Bank Balance 327.66 535.78 750.14 638.17 1,753.26

Total Current Assets 3,055.68 3,818.91 4,302.70 4,423.18 7,080.77


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Loans and Advances 5,964.61 6,208.53 4,831.36 5,909.75 4,618.90

Fixed Deposits 791.77 290.98 1,647.17 503.65 0.00

Total CA, Loans &

Advances 9,812.06 10,318.42 10,781.23 10,836.58 11,699.67

Differed Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 6,673.61 6,956.88 10,040.37 10,968.95 16,117.80

Provisions 1,215.04 1,364.32 1,989.43 1,877.26 2,763.43

Total CL & Provisions 7,888.65 8,321.20 12,029.80 12,846.21 18,881.23

Net Current Assets 1,923.41 1,997.22 -1,248.57 -2,009.63 -7,181.56

Miscellaneous Expenses 14.12 10.09 6.05 2.02 0.00

Total Assets 8,473.91 10,878.89 14,120.02 25,559.83 31,591.38

Contingent Liabilities 2,185.63 5,196.07 5,590.83 5,433.07 3,447.50

Book Value (Rs) 143.94 177.59 202.70 240.64 262.30

ANALYSIS OF FINANCIAL STATEMENT

LIQUIDITY RATIO:

Current ratio:

It means the ability of the business to pay its short term liabilities. Traditionally these ratios

are used to highlight the business liquidity

Current Ratio = Current assets loans and advances

Current Liabilities and Provisions

Year 2010 2009 2008

Current Ratio 0.6196 0.8435 0.896


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Ideally the current ratio should be 2:1.As in this case, it is found to be lower than the ideal

one and has also decreased compared to 2008.The company has to concentrate to correct the

balance of its current assets and current liabilities.

QuickRatio:

It is the test of liquidity then the current ratio. The term liquidity refers to the ability of a firm

to pay it short term obligations as and when they become dude. Quick ratio may be defined as

the relationship between quick or liquid assets and Current liabilities. An asset is said to be

liquid if it is converted into cash within a short period without loss of value.

QuickRatio = Current assets -Inventory

Current Liabilities

Year 2010 2009 2008

Current Ratio 0.257 .199 0.187

The quick ratios in the year 2009 and 2010 are below the standard norms 1:1. If the quick

ratio is below the standard norms of 1:1 the conclusion is that the company is not liquid and

so it cannot pay off its short term liabilities out of its quick realization assets.

PROFITABILITY RATIO:

Gross Profit margin:

As the gross profit is found by deduction of cost of goods sold from the net sales, higher the

gross better the result. There are no standard norms for gross profit ratio. It is calculated to

know the trading profit of the year.

Gross Profit Margin = Gross profit X 100


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Net Sales

Year 2010 2009 2008

Gross Profit Ratio 8.84% 3.30% 8.26%

There has been a dip in 2009 due to recession.

Net Profit Margin: The net profit is calculated to know the actual profit of a concern during

the year.

Net Profit Margin = Net profit X 100

Net Sales

Year 2010 2009 2008

Net Profit Ratio 6.26% 3.77% 6.69%

RETURN ON TOTAL ASSET:

Return on total asset provides a strong incentive for optimal utilization of the assets of the

company. This encourages in obtaining assets that will provide a satisfactory return on asset

and getting an optimum return.

ROI = Net profit X 100

Total Asset

Year 2010 2009 2008

ROI 7.1% 3.92% 14.36%

There has been a dip and then there is an upward trend as resources have been used rightly to

generate optimum returns on investment.


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LEVERAGE RATIO:

Debt Equity Ratio:

The ratio indicates the relationship between loan fund and net worth of the company which is

known as gearing.If the proportion of debt to equity is low, a company is said to be low

geared and vice versa. Debt by equity ratio of 2:1 is the norm acceptable by financial

institutions for funding of projects.

Debt by Equity Ratio= Long Term Debt

ShareholderFund

Year 2010 2009 2008

Debt by Equity ratio 1.11 1.06 0.8

The company has a debt equity ratio of 0.53 times which shows that the company is using

0.53 times of debenture compared to equity.


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(6)LEARNING EXPERIENCE:

It was a great experience working in a real time environment under the guidance of the

experienced and well trained employees of Tata Motors in Bangalore Regional office .

Covered all across Bangalore city and visited around 83 driving schools and talking to

people and explaining them about features of Nano is a new experience.

Understanding what are expectations from the customers while purchasing a car .

Getting the feedback from the customers about the companys after sales service

about the products which were sold earlier.

Understanding what are tools which would help to improve the sales of nano.

Understanding what are the roles a dealership plays in getting the sales for the

company.

Understanding what are the requirements driving schools expects when the vehicle is

brought for service which is completely different from other types of customers.

Understanding what are the factors which influence the purchase of a particular car

with respect to driving schools.

Understanding the importance of marketing events which helps the company to

improve sales of the product.


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(1)INTRODUCTION OF THE STUDY:

Bangalore's Rs.52,346 crores (US$11.62 billion) economy (200607) makes it one of the

major economic centers in India, With the value of city's exports totaling RS.43,221 crores

(US$9.6 billion) in 200405. With an economic growth of 10.3%, Bangalore is the fastest

growing major metropolis in India, and is also the country's fourth largest fast moving

consumer goods (FMCG) market. With a per capita income of RS.74,709 (US$1,658.54) in

200607, The city is the third largest hub for high net worth individuals and is home to over

10,000 dollar millionaires and about 60,000 super-rich people who have an investable surplus

ofRs.4.5 crores (US$1 million) and Rs. 50 lakhs (US$ 111,000) respectively. No. of Motor

Vehicles (in millions) in Major Cities as per auto India is Delhi 4.8, Bangalore3.1,

Chennai3.0 , Kolkata1.8 Hyderabad1.8, Mumbai1.5.

An automobile, motor car or car is a wheeled motor vehicle used for transporting passengers,

which also carries its own engine or motor. Most definitions of the term specify that

automobiles are designed to run primarily on roads, to have seating for one to eight people, to

typically have four wheels, and to be constructed principally for the transport of people rather

than goods.

As per SIAM (Society of Indian Automobile Manufacturers):

The classification of segments are done as per length of the vehicle, (Passenger carsegment)

A1 - Mini - Upto 3400mm (M800, Nano)

A2 - Compact - 3401 to 4000mm (Alto, wagon r, Zen, i10, A-star, Swift,i20, palio, Indica) .


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A3 - Midsize - 4001 to 4500mm (City,Sx4,Dezire, Logan, Accent ,Fiesta ,Verna etc)

A4 - Executive - 4501 to 4700mm (Corolla, civic ,C class, Optra, Octavia, etc)

A5 - Premiun - 4701 to 5000mm (Camry, E class, ,Sonata, Laura, Superb, etc )

A6 - Luxury - Above 5000mm (S class,5 series etc)

Commonly called as The People's Car, The launch of this family car was like a dream come

true for Mr. Ratan Tata (Chairman of Tata Group) and all those car lovers across the country

who were really longing to have their own car. Tata Nano is sleek and classy in look. Besides of

its 624 cc, 2 cylinder, MPFI high performance engine and tubeless tyres, this magical car is

comprised of many other fabulous features. Above all, Nano is the cheapest car of the world.

Table A: Automobile production year wise trend

Category 2003-

04

2004-05 2005-06 2006-07 2007-08 2008-09 2010-11

Passenger

vehicle

989560 1209876 1309300 1545223 1777583 1838697 2394571

Commercial

vehicle

275040 353703 391083 519982 549006 417126 603089

Two

wheelers

356223 374445 434423 556126 500660 501030 653973


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PROBLEM STATEMENT:

The worlds cheapest and the most anticipated car Tata Nano was launched in 23rd March while

its booking started from the second week of April 2009. It was believed that The launch of Tata

Nano leads to growth in the Indian auto market. Tata Nano the smallest car ever in India an it is

available in market with its five variants. Its all variants are equipped with the same capacity

engine they differs only in terms of other standard features.

With an estimated population of 5.8 million in 2001, Bangalore is the third most populous city in

India and the 28th most populous city in the world. Bangalore was the fastest-growing Indian

metropolis after New Delhi between 19912001, with a growth rate of 38% during the decade.

Meanwhile when maruti 800 sales were stopped it was expected that the sales of nano woul

improve and It could also affect the two wheeler market. But because of fire occurring incident

and negative publicity in Media the sales of the Nano was not upto the company expectations.

So the company wanted to assess market potential for Nano .So The company asked me to asses

market potential for driving schools in Bangalore city has the number of registered and

unregistered driving schools accounts for 400.Where in the Driving schools the students cutting

across the segments would come to learn the driving, The total students in the driving schools

account for more than eight thousand students. The company main strategy was similar to

marutis strategy where the maruti used driving schools to promote the maruti 800 to the drivinschool students which helped it to attract large number of first time buyers. So,Tata motors also

tried to adapt similar strategy for improving the sales of Nano and by also tried to understand the

tools which would help in improving the sales of Nano.So the title of the Study is A study of

variables influencing the purchase of Tata Nano with Respect to Driving Schools In

Bangalore city


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Objective of the study:

y To assess the market potential in the driving school segment.

y To improve the sales by understanding the preferences of driving school owners and

learners.

y To attract more first time buyers including two wheeler segment and learners their by

increasing the sales.

y To identify the supporting tools required for nano sales with respect to motor drivin

schools.

y To understand what are the expectations of the first time buyers.

y To understand the customer perception.

y

Understanding the satisfactory level of the service provided by earlier products of thcompany.

Scope of the study:

Since the project time was for seventy days, The research was carried inonly Bangalore city and

the findings are only limited to Bangalore city and the findings are done only for Tata Nano and

not for other cars .

The following facts have been covered under the study:

y There are around 400 driving schools in Bangalore city.

y Out of 400 driving schools 250 are registered and 150 are unregistered schools.

y We have covered around 83 driving schools across Bangalore city and have receive

feedback.


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y They around 8000 to 10000 learners in these schools largely consists of females an

youngsters.

y To create awareness on the performance on Tata Nano.

y To know which car the learners normally prefers while learning.

METHODOLOGY OF DATA COLLECTION:

Customers are constantly getting product information either through broachers being either sent

by manufacturers, Dealers. Also mass media gives customers a varied range of information abou

a product within a short span of time. Our Main method of Data collection includes one to one

interview with driving school owners, principal, Managers and drivers. A questionnaire was

prepared and the respondents responses were collected accordingly.

RESEARCH DESIGN:

A research design is a master plan or model for conducting of formal investigation. It is a blue

print that is followed in completing the study. The research conducted by me is a descriptiv

research. This is descriptive in nature because study is focused on Fact investigation in a well

structured form and is a based on primary data.

Primary data collection:

Questionnaire is the main bases of the data collection which consists of 15 questions. The

primary data is mainly collected directly from driving school operators. It is mainly an attempt tounderstand the factors which influence the purchase of a new car. The enquiry from the students

for a particular vehicle influence a lot in purchase of a new Car.

y Primary data is collected through structured questionnaire.

y Observation method is used whenever it is considered necessary.


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Secondary data collection:

The study was also depended on secondary data. Secondary data was collected from the

companys website and various business magazines, journals, brochures etc

The company provides the necessary information for the purpose of study. The main source o

information of secondary data is collected from the following;

The internal sources of company.

Books of the company.

Internet sources.

Weekly and Bi-weekly magazines.

RESEARCH PLAN:

Because of wide spread population, wider geographical area and time limitation it was not

convenient for me to cover the entire population, So I have chosen sample study for the research.

A sample design is a definite plan for obtaining a sample from the population. It refers to the

technique or procedures that the researcher would adapt in selecting the items to be inched in th

sample i.e. size of the sample.

SAMPLING STUDY:

The list of sampling units from which sample is taken are called sampling frame.

The Banaglore city map was studied and samples were selected from the places where th

driving schools are located in a scattered manner in order to get effective results for the surve

conducted.


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I went to each school personally and met the driving school owners, Managers, Drivers in order

to get the feedback and opinion on Nano and to understand what are the tools which woul

influence the purchase of Nano to driving schools.

TOTAL SAMPLE SIZE : 83 respondents

AREAS COVERED IN BANGALORE AS UNDER:

Chickpet Basvangudi

N.R. colony Govindrajnagar

Mahadevpura Vijayanagar

Bhamshankari Rajajinagar

Giri nagar J.p.Nagar

Hanumanth

nagar Jayanagar

Kormanagala Shesadripuram

Frazer Town BTM

KRpuram Marathahalli

Kamaraj Road Puttenehalli

Bull temple

road Shivajinagar

H.S.R.Layout

Kanakpura

road

Padmanabnagar

LIMITATIONS OF STUDY:

Despite making all the efforts to make analysis more comprehensive and scientifically valid ,The

study has its only limitations :


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The following are some ofthe limitations ofthe study:

y The study is confined to Bangalore city only so the data may not be relevant to othe

places.y Time constraint was a problem so it was not possible to make a detail study.

y The study is subjected only to motor driving school customers and may not be relevant

to other class of customers.

y The analysis is based on the opinion ,attitude, perception ofthe respondents ,The result

at best are nearto truth.

Tabl 3.01: Age group

Age group Number of respondents Percentage18-35 13 16

35-50 51 61

50-60 12 14

60 and above 7 8

Total 83 100

Graph. 3.01 Shows Age group of dri i g school owners or operators

0%

10%

20%

30%

40%

50%

60%

70%

18-35 35-50 50-60 60 and above

16%

61%

14%

8%

Age Group

Age group


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Analysis:

The range shows in the table that the age group of Driving school operators and were divided

into four groups: a)18-35 b)35-5 c)50-60 d)60 and above.

Interpretation:

As per the survey , out of 83 respondents , 61% of the respondents were in the age group of 35-

50, 16% were of the age group 18-35 and 14% of the respondents were of the age group 50 to

60, 8% of the respondents 60 and above respectively.

Table 3.02: Income level Per Annum.

Income level Number of respondents Percentage

Less than 2.5 lakhs 19 23

2.5 lac to 3.5 lakhs 25 30

3.5 lakhs to 4.5 lakhs 26 31

More than 4.5 lakhs 4 5

No responses 9 11

Total 83 100

Graph no.3.2 Shows income level of the Driving schools owners p.a


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Analysis:

The Income Level ofthe driving school operators are classified as follows: a) less than 2.5

lakhs b) 2.5 lakhs to 3.5 lakhs C) 3.5 lakhs to 4.5 lakhs d) More than 4.5 lakhs e)no

Response.

Interpretation:

As per the survey 31% ofthe respondents were in the income group of 3.5to 4.5 lakhs

p.a and 30% ofthe respondents were in the income group of 2.5 lakhs to 3.5 lakhs p.a

.23% ofthe respondents were earning less than 2.5lakhs p.a . 5% ofthe respondents were

in the group of 4.5 lakhs and above and 11% of the respondents didnt expressed any

opinion.

0%

%

10%

1 %

20%

2 %

30%

3 %

less than 2.

lakh2. lakh -3. lakh

3.

to 4.

lakh4. lakh and above

No response

23%

30% 31%

%

11%

Income level


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Table 3.03: The Types of vehicles in Driving schools

Options No. of respondents Percentage

Both two wheeler and

four wheeler

28 34

Only four wheeler 55 66

Total 83 100

Graph no.3.03 shows types of vehicles in driving schools


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Analysis:

The types of vehicles in Driving school were classified based on the two groups:

a) Only four wheeler b) Both two wheeler and four wheeler .

Interpretation:

Majority of the Driving schools had the facility of only four wheeler in their Driving

schools. As per the survey it is clear only 66% of the respondents were having only four

wheeler in their driving schools .34% of the respondents were having both two wheeler

and four wheeler in their driving schools.

Table 3.04: The Minimum total distance travelled by one Vehicle in a day.

Options Number of

Respondents

Percentage

50 to 60kms 13 16

60 to 80 kms 22 27

80 to 100 kms 28 34

100 and above 20 24

34

66

y four whee er


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Total 83 100

Graph no. 3.04 Shows minimum distance travelled by one vehicle in a day.

Analysis:

The Minimum total distance travelled by One vehicle ofthe Driving school were classified

into four groups : a) 50 to 60 kms b) 60 to 80 kms c) 80 to 1000 kms d) 100& above

INTERPRETATION:

Taking the four distinct groups we come to conclusion that34% ofthe respondents said the

0%

10%

20%

0%

40%

0 to 60 k.m60 to 80 k.m

80 to 100 k.m100 kms& above

16%

27% 4%

24%

Distance Travelled


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minimum usage of vehicle were around 80 to 100 k.m per day. Around 27 % of the

respondents included who were travelling around 60 to 80 kms. Around 24% of the

respondents said the minimum usage of one vehicle is more than 100k.m a day and more

than 11% of the respondents said the minimum usage was less than 50 to 60 k.m.

Table 3.05: The Maintenance cost incurred on one vehicle per month.

Options Number ofRespondents Percentage3000 to 4000 9 16

4000 to 5000 32 27

5000 to 6000 27 34

6000 and above 15 24


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Total 83 100

Graph no 3.05 shows maintenance cost incurred on one vehicle

Analysis:

The maintenance cost of one vehicle incurred per month by driving schools were classified

into four groups :a)3000 to 4000 b)4000 to 5000 c)5000 to 6000 d)more than 6000.

Interpretation:

34% of respondents were spending Rs.5000 to 6000. 27% of respondents were spending Rs.

4000 to 5000 on maintenance cost. 24% of the respondents were spending more than 6000

and the respondents who were spending more than 6000 were usually those who were having

less than 4 vehicles. Most ofthe respondents who were having more than 12 vehicles were

spending less amount on maintenance cost16% respondents were spendingRs.3000 to 4000

on maintenance cost of each car per month.

Table 3.06: Number of Cars in Driving School.

Options Number of respondents Percentage

Around 4 37 45

5to 8 24 29

9 to 12 12 14

12 and above 10 12

0%

10%

20%

30%

40%

3000 to 4000

4000 to

000 000 to 6000

more than

6000

16%

27%34%

24%

maintenance costhe Minimum total distance travelled by your one Vehicle in a

particular day?


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Total 83 100

Graph No. 3.06 shows number of cars in driving school

Analysis:

The number of Cars operated by driving schools were classified into four groups :

a)Up to 4 vehicles b)5 to 8 vehicles c)9 to 12 vehicles d)12 vehicles and above

Interpretation:

From the survey we come to know more than 45% of the respondents were having up to 4

vehicles in their driving schools. More than 29% of the respondents were having around 5 to

8 vehicles in their driving schools, 14% of the respondents were having 9 to 12 vehicles in

their driving schools, Around 12 % of the respondents were having more than 12 vehicles in

their driving schools.

Table 3.07: Number of schools having Tata cars.

Options Number of

Respondents

Percentage

Yes 36 43

No 47 57

Upto 4 , 4

to 8, 29

9to

12, 14

12 & above, 12

Number of Vehicles

Upto 4

5 to 8

9to 12

12& abo

ve


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Total 83 100

Graph No. 3.07 Shows number of schools using Tata Cars

Analysis:

The Driving Schools were asked whether they are using any Tata Cars or not And their

responses were classified as follows : a)Yes b) no

Interpretation:

From the survey we come to conclusion that around 57% of the Driving Schools were not

having Tata cars in their respectively school. Around 43% of the Driving Schools were

having any Tata cars in their schools. The 43% of respondents who were having Tata cars in

their driving schools were from the localities where middle class people werestudents of

Driving schools in large numbers..

Table 3.08: Satisfactory level of service provided by Dealerships and service

centers.

Options Number of

Respondents

Percentage

Good 14 39

0%

10%

20%

0%

40%

50%

60%

Y

N

4 %

57%

Numb ! r " f # ch " " l # u # ing Tata

car #


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Satisfactory 10 27

Not Satisfactory 12 34

Date post:	08-Apr-2018
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Study of Variables Influencing Purchase of Tata Nano With Respect to Driving Schools in Bangalore...

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