5USTOMER SATISFACTION SURVEY TATA Motors Ltd.

SUBMITTED TO:- SUBMITTED BY:-

LOVELY PROFESSIONAL UNIVERSITY ARUN GULERIA arun_guleria@ymail.com

LOVELY INSTITUTE OF MANAGEMENT (LIM)

DECLARATION I ARUN KUMAR GULERIAhere by declare that the project reportentitled“COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY &

CUSTOMER SATISFACTION SURVEY” under guidance of Miss.

SukhwinderArora submitted for the requirement of a degree

programme of LOVELY PROFESSIONAL UNIVERSITY is my

original work.Any literature, data or works done by others and cited within

this dissertation has been given due acknowledgement and listed in the reference section.Signature : Date : Place : Jalandhar ARUN GULERIA arun_guleria@ymail.com

PROJECT REPORT ON COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY TATA Motors Ltd. SUBMITTED TO:- SUBMITTED BY:- LOVELY PROFESSIONAL UNIVERSITY ARUN GULERIA arun_guleria@ymail.com 100 LOVELY INSTITUTE OF MANAGEMENT (LIM) DECLARATION I ARUN KUMAR GULERIA here by declare that the project report entitled “COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY” under guidance of LOVELY PROFESSIONAL UNIVERSITY is my original work. Miss. Sukhwinder Arora submitted for the requirement of a degree programme of Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section. Signature Date Place : : : Jalandhar ARUN GULERIA arun_guleria@ymail.com 100

ACKNOWLEDGEMENT

In order to make my project I acknowledge a special thanks to all those people without whose supports it would not be possible for me to complete for me to complete my report. First of all I really thankful to my Lovely Professional University because of them I could achieve the target. I express my sincere thanks to my project guide Miss. Sukhwinder Arora who had guide to me throughout my project. I would also thankful to the Satluj Motors (TATA MOTORS Dealership) for giving me this opportunity to work on project in Mandi (H.P). I convey my heart full thanks to the Mr. Bhopal Singh Jamwal (Admin. Manager) and the staff members of Satluj Motors, with their help and corporation. Also I would like to express my inner feeling for all the people for co-operating and helping me throughout the project. Last but not the least I am thankful to my parents and friends who have provided me with their constant support throughout this project. Arun Kumar Guleria ARUN GULERIA arun_guleria@ymail.com 100

PREFACE

The professional training is the internal part of a M.B.A program. It helps the student understand practical aspects of Business Management in a better way as a part of my M.B.A. program at Lovely Professional University, Jalandhar. I was supposed to work the organization. ‘Finance Management 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 we are in a field, which help 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 analysis the financial position of TATA Motors and conducted a financial analysis of two of its competitors – Mahindra & Mahindra and Maruti Udyog. To compare the standing TATA Motors vis-á-vis the industry. I used Balance Sheet, Profit & Loss Account, Cash Flow and Fund Flow Statement, and Ratio Analysis. And I also conducted Customer Satisfaction Survey of TATA Motors in the Mandi District of Himachal Pradesh. I used research questionnaires as the research and data collection tools. The responses were collected from 100 respondents from various areas of Mandi. I had learned lot during my project on compare the standing TATA Motors vis-á-vis the industry & customer satisfaction survey of TATA Motors; I hope this will be helpful to find out financial standing of TATA Motors in automobile industry and satisfaction of consumer in Mandi city. ARUN GULERIA arun_guleria@ymail.com 100

INDEX

ARUN GULERIA arun_guleria@ymail.com 100 S.No. 1. 2. 3. 4. 5. 6. PARTICULAR Page No. (i) (ii) (iii) 7 10 14 15 Declaration Acknowledgement Preface Executive Summary Introduction Literature Review: 6.1 Tata Motors July Sales At 48,054 Nos. 6.2 First Quarter Stand-Alone Net Revenue Rs.6405 Crores, Pat Grows 58% To Rs.514 Crores 6.3 Delivers First Tata Nano In The Country In Mumbai 6.4 June 2009 Domestic Sales At 43,244 Nos 6.5 First Jaguar Land Rover Showroom Opens In India 6.6 Tata Motors To Introduce Air Car 6.7 Consolidated Revenue In 2008-09 Rs. 70938.85 Crores, Loss After Tax Rs. 2505.25 Crores 6.8 Effect Of Inflation On Car Market Profile Of Tata Group: 7. 7.1 TATA Group Companies Profile Of Tata Motors Limited: 8. 8.1 Industry Overview 8.2 History Of Tata Motors 8.3 Important Developments 8.4 Global Operations 8.5 Future Challenges 8.6 Milestones 8.7 Awards Products Of Tata Motors: 9. 9.1 Passenger cars and utility vehicles 9.2 Concept vehicles 9.3 Commercial vehicles Marketing Strategies: 10. 10.1 Launch Of Tata Nano 10.2 Modification In Tata Sumo 10.3 New Version Of Indigo ,Indigo Dicor 10.4 Tapping Of Rural Markets SWOT Analysis - Tata Motors Limited 11. Financial Analysis: 12. 12.1 Financial Overview 12.2 Capital Structure 12.3 Weighted Average Cost Of Capital ARUN GULERIA 12.4 Balance arun_guleria@ymail.com Analysis 12.5 Financial Analysis Of Tata100 Motors Global Automobile Industry 13. 16 17 18 19 20 21 24 27 32 35 37 39 39 48 51 52 57 58 58 59 60 62 62 69 71 72 73 76 77 78 79 81 84 87

EXECUTIVE SUMMARy

The project on COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY based on financial performance and on customer survey. The main objectives of the project are: Market Market performance Financial performance in automobile industry Cost saving initiatives Economic and the industry environment position. Overall oAwareness regarding the facilities provided by Tata Motors. pinion Satisfaction amongst the customers of Tata Motors For thisabout Tata Motors. project Financial Statements was analysis and customer research was carried out at various area of Mandi District of Himachal Pradesh. I learnt analysis financial statement in to find

different aspects for compare the standing vis-á-vis industry and customer’s perception about TATA Motors.

THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS:

1. Company Overview:

This part describes the company profile. This part recognizes the achievements and rewards the company has achieved, it also gives little insights into what company offers to the Corporate and the Consumers. This section also describes the kind of technology used.

2. Company Profile:

ARUN GULERIA arun_guleria@ymail.com 100 This section gives the information about the company. It includes the company history which depicts the company from the period of foundation. This section also products of the company producing by the company.

3. Analysis of Financial: Financial statements of the company over last few years are analysis in this section and financial performance is output.

4. Competitors of company: The company’s competitors are finding and study the business during the financial years. 5. Comparison of company’s financial statements with competitors: Comparison of company’s Balance Sheet, Profit & Loss Account and Fund and Cash Flow Statement with their competitor to find the standing of company in automobile industry.

FINDINGS:

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

INTRODUCTION

India is an emerging country with huge potential. The domestic economy is now growing at around 9-10% per annum and India’s importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the center of India’s new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturer’s product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain. • India eyes 25 million automotive jobs. • • India's GDP is set to double over the next decade In percentage terms, the automotive industry's contribution should also double. In dollar terms, the sector's contribution is set to quadruple to some $145bn The automobile industry in India accounts for a business volume of $45 billion and has • the potential to grow much faster both through Indian as well as international manufacturers who have established huge facilities in the country With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-whelers.

implications, market drivers and scope of a future massive Indian vehicle market are covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and related activity to 2020. Based on Max Pemberton's unique relational long-term forecasting model, it forecasts car and CV sales, demographics, materials usage, auto industry employment, and explains their inter- year of healthy growth in auto industry. INDUSTRY GROWTH: Future of the Automobile in the Economy: US based consultancy, keystone predicts that India will become world’s third largest automobile market by 2030. Overall size expected to exceed 20 million with compounded annual growth rate of over 12%. INDIA THEN & NOW 1983 • • Number of brands Number of models 2 2 2008 • • Number of brands Number of models 30 70

LITERATURE REVIEW

Released on: 3rd August, 2009 Tata Motors July sales at 48,054 nos., growth of 18% M&HCV sales record year-on-year growth after almost a year - Ashish Garg Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. The company’s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599 nos., a 23% growth over 37,033 nos. sold in July last year. Cumulative sales (including exports) for the company for the fiscal at 171,168 nos., was lower by 1%, compared to 172,462 nos. sold last year. Commercial Vehicles The company’s sales of commercial vehicles in July 2009 in the domestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in July last year. LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658 nos. turning positive after almost a year with a growth of 6% over July last year and the highest since September 2008 Cumulative sales of commercial vehicles in the domestic market for the fiscal were

100,464 nos., a growth of 7% over last year. Cumulative LCV sales were 63,180 nos., a growth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% over last year. Passenger Vehicles The passenger vehicle business reported a total sale and distribution offtake of 19,881 nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32% increase compared to 15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by 21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were 2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July last year. The Indigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV range of Sumo/Safari accounted for sales of 2,638 nos., flat compared to July last year. The company began the sale and deliveries of the Jaguar and Land Rover range through the brands’ flagship store in Mumbai. The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813 Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica range at 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422 nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%. Exports The Company’s sales from exports at 2,455 vehicles in July 2009 were lower by 34% compared to 3,696 vehicles in July last year. The cumulative sales from exports for the fiscal at 7,676 nos. were lower by 40% over 12,855 nos. in the same period last year. 100 Released on: 27th July, 2009 Tata Motors First Quarter Stand-alone net revenue Rs.6405 Crores, PAT grows 58% to Rs.514 crores - R. S. Sardha Tata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a standalone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared to Rs.6928.44 crores in the corresponding quarter previous year. The company’s continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating profits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of the previous year. Profit before Tax for the quarter grew by 58.8% to Rs.548.04 crores (Q1 2008-09: Rs.345.09 crores) and Profit after Tax was Rs.513.76 crores (Q1 2008-09: Rs.326.11 crores), an increase of 57.5%. The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6% due to increased debt taken by the company during the previous year to support its product programmes, investments and working capital requirements and depreciation at Rs.229.12 crores was higher by 26.7% reflecting the increased investments in new products and supporting capabilities. For the quarter ended June 30, 2009, there was an exceptional notional foreign exchange valuation loss of Rs.5.54 crores (previous year loss of Rs.161.59 crores).

Improvement in liquidity, increased reach across the country and introduction of new products and variants improved the company’s sales, except in the case of the heavy truck segment. The heavy truck segment is recovering, albeit slowly, in response to infrastructure development, Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives. The company’s domestic sales volume at 122,120 vehicles recorded a marginal decrease of 1.4% over the corresponding quarter of the previous year, whilst the exports at 5220 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment

resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared to the corresponding quarter of the previous year. The company gained market share in commercial vehicles to 67.4% during the quarter compared with 61% in the corresponding quarter of previous year on the back of a marginal 1.1% growth in domestic sales to 72,216 units. Tata passenger vehicles declined by 10% in the domestic market to 45,846 units but have been growing sequentially every month of the quarter breaking into positive growth in June. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, the company has a joint market share of 12.3% 100 in the industry. In passenger vehicles, the company has completed the process of allotment of Tata Nanos, following the car’s launch in March 2009. Deliveries to the allottees have since begun. The company also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with the Fiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the Fiat Grande Punto in June 2009. The audited stand-alone financial results for the quarter ended June 30, 2009, are enclosed. The consolidated financial results for the 1st quarter of Financial Year would be voluntarily disclosed separately in due course. The company continues to upgrade its resources to leverage emerging opportunities. In commercial vehicles, the company unveiled its new range of world standard trucks in May 2009, comprising multi-axle trucks, tractor-trailers, tippers, mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time. An all-new Starbus range of buses has also been introduced. A new mileage enhancing automatic stop-start technology, developed in-house, has been introduced in the Ace mini truck. Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM.

Released on: 17th July, 2009 TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI - Rojar R. Karm Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano. Mr. Vichare received his choice, the Tata Nano LX (Lunar Silver), at the hands of the Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, at the company’s dealership, Concorde Motors, today. Speaking on the occasion, Mr. Tata said, “I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern, contemporary,

emission-friendly city car.” Along with Mr. Vichare, two other customers, Mr. Ashish Balakrishnan (Tata Nano LX – Sunshine Yellow) and Kores India Limited (Tata Nano LX – Lunar Silver), also received their cars today. As planned, Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country. Dispatches to dealerships have begun from the Pantnagar plant, where the car is being produced, in accordance with schedules informed to customers. 100 Released on: 1st July, 2009 TATA Motors’s June 2009 DOMESTIC SALES at 43,244 nos. G. Lata Sure Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The company’s domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43,244 nos., a 1% decline over 43,814 nos. sold in June last year. Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declined by 7%, compared to 131,733 nos. sold last year. Commercial Vehicles The Company’s sales of commercial vehicles in June 2009 in the domestic market were 26,205 nos., a 2% decline compared to

26,797 vehicles sold in June last year. LCV sales were 16,256 nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but an increase of 15% over May 2009. Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626 nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growth of 27% over last year. Passenger Vehicles The passenger vehicle business reported a ARUN GULERIA arun_guleria@ymail.com total sale and distribution offtake of 19,513 nos. (17,039 Tata + 2,474 Fiat) in the domestic market in June 2009, an 11% increase compared to 17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive month at sales of 10,210 nos. -- a growth of 19% over June 2008. The Indigo family recorded sales of 3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009. The Sumo/Safari range accounted for sales of 3,307 nos., a decline of 11% compared to June 2008, but a growth of 29.7% over 2,550 nos. of May 2009. The company launched the Jaguar and Land Rover range in the last week of June in Mumbai. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50,691 nos. (45,837 Tata + 4,854 Fiat), against 52,495 nos. (51,094 Tata + 1,401 Fiat) in the same period last year. Cumulative sales of the Indica range at 28,849 nos., reported a growth of 12%. Cumulative sales of the Indigo family were 8,923 nos., a 32% decline over the same period last year. Cumulative sales of the Sumo/Safari range were 8,065 nos., a decline of 35%. Exports The Company’s sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to 3,431 vehicles in June 2008. 100 The cumulative sales from exports for the fiscal at 5,220 nos. declined by 43% over 9,159 nos. in the same period last year. Released on: 28th June, 2009 FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA Jaguar Land Rover's official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors. Jaguar and Land Rover's award-winning vehicles are well known around the world. Jaguar has become one of the world's leading producers of beautiful fast cars. Land Rover produces the world’s most versatile all-terrain vehicles, combining refined luxury with a true breadth of capability. The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover. Further details, including specifications, are available on the new Jaguar India website (www.jaguar.in) and Land Rover India website (www.landrover.in). Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar and Land Rover vehicles, with a dedicated showroom section for each brand. It aims to establish a benchmark experience in luxury car sales in India, with plans to develop the dealer network throughout 2009 and 2010. Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands, accompanied by a parts and service network. We hope that they will delight customers in India just as they have done in markets the world over." Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India. It is an exciting time to be entering the Indian market, a country with increasing affluence and an economy which is still growing. We believe ARUN GULERIA arun_guleria@ymail.com 100 that the Indian market holds significant growth potential in the long term,

and we hope to tap the demand for premium vehicles from discerning customers." Released on: July 7, 2009 TATA MOTORS TO INTRODUCE AIR CAR – Ben MaGreow Tata Motors is taking giant strides and making history for itself. First the Landrover-Jaguar deal, then the world's cheapest car and now it is also set to introduce the car that runs on air, compressed air to be specific. With fuel prices touching nearly $150 per barrel, it is about time we heard some breakthrough! India's largest automaker Tata Motors is set to start producing the world's first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre for Luxembourg-based MDI, uses compressed air, as opposed to the gasand-oxygen explosions of internalcombustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009. The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would have a range of around 300 km between refuels. The cost of a refill would be about Rs. 85 ($ 2). Tata motors also plans to launch the world's cheapest car, Tata Nano priced famously at One lakh rupees(£1200) by October. ARUN GULERIA arun_guleria@ymail.com The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are no keys - just an access card which can be read by the car from your pocket. According to the designers, it costs less than 50 rupees per 100Km (about a tenth that of a petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving), a factor which makes a perfect choice in cities where the 80% of motorists drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-300 kilometers. As a viable alternative, the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours. Due to the absence of combustion and, consequently, of residues, changing the oil (1 litre of vegetable oil) is necessary only every 50,000Km.] The temperature of the clean air expelled by the 100 exhaust pipe is between 0-15 degrees below zero, which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power. Released on: 26th June, 2009 Consolidated Revenue in 2008-09 Rs. 70938.85 crores, Loss after Tax Rs. 2505.25 crores Tata Motors today reported consolidated gross revenue of Rs.74151.21 crores in 2008-09. The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008. In 2007-08, the consolidated gross revenue was Rs.40340.79 crores. The consolidated revenues (net of excise) in 2008-09 amounted to Rs.70938.85 Crores (2007-08: Rs. 35660.07 crores). On a consolidated basis, the company reported a Loss after Tax in 2008-09 of Rs. 2505.25 crores; in 2007-08, the company had reported a Profit after Tax of Rs. 2167.70 crores. Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.(56.88) (200708: Profit of Rs. 56.24) for its consolidated operations. Tata Motors has already reported on May 29, 2009, that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs.25660.79 crores, and Profit after Tax for the year was Rs.1001.26 crores. Business Highlights: 100 Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008. However, the global meltdown, especially after July 2008 with vehicle financing and demands drying up, impacted the auto industry worldwide, including Jaguar Land Rover. In 2008 therefore, Land Rover sales fell considerably. However, Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan. The company

has actively responded to this changed situation by taking a number of urgent and long term measures. These include cutting costs drastically and working on a plan of substantial cost reduction, aligning production with demand and tight control over cash flows. In addition, the company has introduced successfully new variants on both Jaguar and Land Rover brands, and is to unveil the all new XJ sedan shortly. TDCV: While market illiquidity and high interest rates in South Korea impacted the company’s domestic performance, it strongly grew exports. The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments, as also product development initiatives. Telcon: The company has launched several new products, but was impacted by the credit squeeze in the third quarter of the year. It expects demand revival supported by infrastructure spend in the country. HVAL & HVTL: Though impacted by lower volumes on the back of decline in medium and heavy trucks, the two companies significantly reduced variable costs to counter the slowdown. Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad. TMFL: In line with Tata Motors’ sales in 2008-09, there was a decline in disbursals. It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage. Tata Technologies: The company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects, and has expanded presence in aerospace design and aero structures. While the year ahead is challenging, it has developed appropriate business structures and processes to strengthen relationship with strategic clients. ARUN GULERIA arun_guleria@ymail.com 100 Released on: 29th May, 2009 Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores, and Net Profit lower at Rs.1001.26 crores, due to market upheaval Tata Motors today reported gross revenue (stand-alone) of Rs.28599.27 crores (200708: Rs.33093.93 crores) in 2008-09, a year marked by severe demand contraction in the automobile industry. Revenues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%. The Profit before Tax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax for the year was Rs.1001.26 crores compared to Rs.2028.92 crores, a decline of 50.7%. The demand contraction was triggered by high interest rates and unavailability of finance throughout the year; particularly in the October-December quarter post the global financial market upheavals. The impact on heavy commercial vehicles was more severe, abetted by reduction in freight movement in different segments and customer concerns on economic conditions. Small commercial vehicles, like the Ace and the Tata Magic, have continued to improve penetration. Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales, as in the automobile industry, but growth is yet to revive to earlier levels. The fall in volumes combined with peak input prices and high interest rates brought margins under pressure. The company accelerated cost reduction measures and proactively managed working capital to contain the impact as best as it could. The total 2008-09 sales volume (including exports) is 506,421 units, compared to 585,649 units in the previous year. The company retained its domestic leadership position in commercial vehicles, and continued to be amongst the top three in passenger vehicles. Domestic commercial vehicles sales amounted to 265,373 units (2007-08: 312,935 units). The company increased market share in commercial vehicles to 63.8% (2007-08: 62.2%), aided by its wide product offering. Domestic 100 passenger vehicles sales amounted to 207,512 units (2007-08: 218,055 units).The launch of the second

generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 13.1% for the year (2007-08: 14%) and a March exit share of 14.5%. Tata Motors’ exports were 33,536 numbers (2007-08: 54,659 numbers), impacted by the worldwide downturn in the industry. The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea, both of which have been received well. In commercial vehicles too, new products, introduced during the year or the previous year, offering benefits like higher fuel efficiency, grew at a faster rate and helped enhance market share. The landmark events of the year were the acquisition of Jaguar Land Rover on June 2, 2008, and the launch of the Tata Nano on March 23, 2009. Over 2.03 lakh fully paid bookings were received for the Tata Nano, the deliveries of which will begin from July 2009. The Pantnagar plant began producing the Tata Nano during the year, while the Sanand plant is rapidly progressing towards completion. DIVIDEND The Board of Directors has recommended a dividend of Rs.6/- per Ordinary share and Rs.6.50 per ‘A’ Ordinary share of Rs.10/each for the financial year 2008-09 (200708: Rs.15/- for Ordinary share). The dividend is subject to approval of shareholders; tax on the dividend will be borne by the Company. The Audited Financial Results for the financial year ended March 31, 2009, are enclosed. __________________________________________________________

EFFECT OF INFLATION ON CAR MARKET –

Hindustan Times The growth in the car market has shown declining results as a result of the inflation. The effect on inflation has affected every sector which is related to car manufacturing and production. The increase in the price of fuel and the steel has led to a slower growth rate of the car industry in India. The production of Indian cars has been brought to a noticeable halt for inflation. It has also been noticed that leading car manufacturer in India like the Tata Motors, Maruti, Hyndai and Honda are trying hard to boost their production and sales of the cars ARUN GULERIA arun_guleria@ymail.com in a scenario where the stock market is on a slow rise. Due to inflation it has also been noticed that the sales of car are being motivated by the discount offers that the automobile companies are offering to the buyers. Some car manufactures have gone to the extent of giving exchange offers to the consumers and some have introduced a competitive finance rates. The effect of inflation has taken the rise in the price rate of the cars by 3-4%, which in turn suffices the need to meet the rise in price of the raw materials to build a car. 100 The effect of inflation has affected not only the production and sales of Indian cars but also has significantly affected the car dealer, officials and car financers. Research and observations have led to the conclusion that in the year 2008, the car market and the car industry is expected to witness 8-9% fall. The effect of inflation on the car manufacturers have in turn affected the dealers in a way where they are being pressurized to push the sales graph higher and keep a high profit margin. The financers in the cycle are pressurized by both car manufacturers and dealers to pay the consumers a cent percent financial assistance by reducing on the loan interest rate. Overall it has been noticed that the automobile market in India and specially the car market in India have experienced a downtrend with the inflation affecting almost every industry to which the car market is essentially related. ARUN GULERIA arun_guleria@ymail.com 100 THEORETICAL RELEVANCE OF TATA MOTORS’S LONG TERM FINANCIAL BEHAVIOR - Financial Institute “As per the Trade off theory, the marginal cost and benefit of debt in determining the best financial structure of a company is considered, at most considerate liability

percentage, a companies market value is brought up and the companies whose liability percentage diverge from the best possible can increase their price by bringing their liability percentage towards the target”. (European Journal of Economics) “The pecking order theory is based on the idea of asymmetric information between managers and investors. A company increases its debits by issuing new equities to finance new projects because if not done the same way then and new investors are brought into consideration then the new Investors will make most of the profit which is ”the net present value (NPV)” of that particular project which will cause lose to the present share holders. To avoid this most of the firms tend to finance their new projects using a security that is not undervalued in the market, which can be internal funds or some other less dangerous debt securities. Therefore, this is what affects the choice between internal and external financing. (European Journal of Economics). “The M&M theory is a theory of capital structure which explains that a company’s market price is definite by its earning power and by the basic risk of its resources, the three most important ways of funding, they are issuing shares, borrowing and retaining profits “As opposed to dispersing them to shareholders in dividends” (Modigliani-Miller Theorem M&M) This theory also says that if there are no taxes, bankruptcy costs, and asymmetric information, in an efficient market then a company’s value becomes solid for finance by its sources. It makes no difference how the company’s funds are increased either by issuing stock or by selling debt and neither matters the dividend policy of the company”. (Modigliani-Miller Theorem - M&M) Therefore, According to the above composed data the Tata motors raised funds from NYSE in 2004, and then from Bombay stock Exchange, Private Equity Funds, Sale of Stakes, Inter-Group Sales and Bridge loans, so, this is in accordance to “the pecking order theory which says that a company increases its debits by issuing new equities to finance new projects because if not done the same way then and new investors are brought into consideration then the new Investors will make most of the profit which is ”the net present value (NPV)” of that particular project which will cause lose to the present share holders. To keep away from this situation most of the firms tend to finance their new projects using a security that is not undervalued in the market, which can be internal funds or some other less dangerous debt securities. Therefore, this is what affects the choice between internal and external financing”. Hence, the pecking order theory explains the need of the firms to rely on the internal sources of the company for finances and also explains why the companies prefer debt to equity if external financing is required.

COMPANY PROFILE TATA GROUP Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of which 61 per cent is from business outside India. The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Group’s 27 publicly listed enterprises have a combined market capitalization of some $60 billion, among the highest among Indian business houses, and a shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications. The Group’s major companies are beginning to be counted globally. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle

manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the world’s second largest manufacturer of soda ash. Tata Communications is one of the world’s largest wholesale voice carriers. In tandem with the increasing international footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Businessweek ranked the Group sixth amongst the World’s Most Innovative Companies. And the Reputation Institute, USA, recently rated it as the World’s Sixth Most Reputed Firm. Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired by the spirit of nationalism. The Group pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Group’s pioneering spirit has been showcased by companies like Tata Consultancy Services, India’s first software company, which pioneered the international delivery model, and Tata Motors, which made India’s first indigenously developed car, the Indica, in 1998 and recently unveiled the world’s lowest-cost car, the Tata Nano, for commercial launch by end of 2008. The Tata Group has always believed in returning wealth to the society it serves. Twothirds of the equity of Tata Sons, the Tata Group.s promoter company, is held by philanthropic trusts which have created national institutions in science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined developmentrelated expenditure of the Trusts and the companies amounts to around 4 per cent of the Group’s net profits. Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 is ranked the world’s fourth fastest. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its shareholders, its employees and wider society. CORE VALUES OF TATA At the Tata Group our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities. This requires us to grow aggressively in focused areas of business. Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from employees and companies. The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance Group synergy and becoming globally competitive is the route to sustained growth and FIVE CORE VALUES The Tata Group has always sought to be along-term success. value-driven organization. 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: the We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for benefit of the communities we serve. Excellence: We must constantly strive to achieve the highest possible standards in our day-today

work and in the quality of the goods and services we provide. Unity: based on We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships tolerance, understanding and mutual cooperation. Responsibility: that over. We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring what comes from the people goes back to the people many times TATA Group Companies Family pride 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. The Seven Business Sectors are: 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, Taco Kunstofftechnik, TACO MobiApps Telemaics, 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 Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata Technologies, Telco construction Equipment. Engineering Services Tata Projects, TCE Consulting Engineers, Voltas Engineering Products TAL Manufacturing Solutions, Telco Construction Equipment Company, TRF • • • 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 Serves, 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. ENERGY: • POWER • Tata BP Solar India • Tata Power Subsidiaries /Associates/ Joint Ventures: Tata Ceramics, Tata Power Trading, North Delhi Power Limited OIL AND GAS • Tata Petrodyne • CHEMICALS: • • • • Rallis India Tata Pigments Tata Pigments PHARMA • Advinus Therapeutics SERIVES: • 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 Management, Tata Capital, Tata Financial Services, Tata Investment Corporation OTHER SERVICES • Tata Quality Management Services, Tata Services, Tata Strategic Management Group • • • CONSUMER PRODUCTS: • • • • • • Infiniti Retail Tata Tea Subsidiaries /Associates/ Joint Ventures: Tata Coffee, Tata Tetley, Tata Tea Inc Tata Ceramics Tata McGraw Hill Publishing Company Titan Industries Trent INFORMATION SYSTEMS AND COMMUNICATIONS: • • Nelito Systems Tata Consultancy Services Subsidiaries /Associates/ Joint Ventures: APONLINE, Airline Financial Support Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corporation, WTI Advance Technology. Tata Elxsi SerWizSol Tata Interactive Systems Tata Technologies • • • • COMMUNICATIONS • • • • Tata Sky Tata Teleservices Subsidiaries /Associates/ Joint Ventures: Tata Teleservices (Maharashtra) Tata Communication Tata Net INDUSTRIAL AUTOMATION • Nelco Subsidiaries /Associates/ Joint Ventures: Tatanet TATA MOTORS LIMITED The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO

(TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, With manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. Tata motor’s passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2003-2007, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called “A” share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”. It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units, they are Tata Daewoo commercial vehicle company, HV transmissions, Tata motors finance, Tata technologies and TELCO construction equipment, the sales of the stakes would possible conclude by June 2009, helping it to raise further funds for this acquisition, earlier in July it sold 24% stake in an Auto component unit to a group firm and booked a profit of Rs. 110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS. 486 crores to Tata Sons, the holding company of whole Tata group firms. "The Company aims to monetize a part of its funds through a phased divestment of certain investments preferably as inter-group sales wherever possible at current market prices in the coming six to eight months," the money that will be released from these investments will become a part of the capital to be lifted for repayment of the bridging loan taken for the JaguarLand Rover acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March from a consortium of banks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28th may its share value has fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at 15, 049.86 points. The Analysts say that, this is a strategic move taken by Tata Motors because it is allowing the company to make a lot of profit even when the market is in the financial pressure allows Tata sons to raise its wager in group companies. If the company will follow the above mentioned trends then possibly it can raise its finances in a low liquidity and high interest rate set-up. INDUSTRY OUTLOOK The Indian Automobile Industry enjoys the advantage of low cost base, high skilled labour, strong ancillary network coupled with Government’s support by way of concessional excise duty of 16% for small cars, ban on overloading and also significant investments proposed for removing infrastructure bottlenecks. The CV industry is directly related to the economic growth and development. The growth in demand for CVs is directly related to the IIP index and any upsurge in economic activities will call for more cargo movement in the economy. The domestic CV market grew at a CAGR of 26.7% during the last 6 years. In FY07, the CV segment registered a growth of 32.2% due to Supreme Court’s ban on over loading trucks. However, we believe that this is a one-time

demand and the CV segment may not witness such kind of growth repeatedly. There is a regulation that restricts the movement of vehicles above certain age (15 years in National Capital Region and 8 years in Mumbai). Though the rule is not being followed strictly at present, in future if this rule is implemented strictly it will result in huge replacement demand. With the Indian economy expected to grow at 8.5% to 9% in coming years, we expect the demand for CVs to be fairly decent except for the fact that the industry is currently experiencing a correction due to sharp spurt in demand in the previous years. The CV industry witnessed a change in demand dynamics in last few years. The demand for LCVs in the <=3.5 tonnes segment is rising at the cost of demand in 5 to 7.5 tonnes category, while demand in 7.5 to 12 tonnes segment and 16.2 to 25 tonnes segment is booming at the cost of demand in 12 to 16.2 tonnes segment. Demand for trailers of >35.2 tonnes is witnessing a surge while demand for semi-trailers in 26.4 to 35.2 tonnes segment is suffering. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution, which is now adopted by transportation players because of improved road infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic congestion issues. According to the Hub & Spoke model, HCVs plying over the highways to transport goods to different states and districts, while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3.5 tonner vehicles. History History of TATA Motors 1. Tata Motors launches its first truck in collaboration with Mercedes-Benz. Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and J. Baker. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. 2. TATA Indica The first generation Tata Indica After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favourite. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata Motors also successfully exported large quantities of the car to South Africa.The success of Indica in many ways marked the rise of Tata Motors. 3. TATA Brads DAEWOO ACQUISITION Tata Novus is one of the best selling commercial trucks in South Korea. With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition Company’s global plans to reduce domestic exposure. The domesticwere: commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in To expand the product portfolio Tata Motorsboth MHCV as well as LCV segments. recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in

the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done Tata remains India's largestthrough the National Highway Development Project heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus. HISPANO CARROCERA Hispano Divo at the 2008 FIAA in Madrid In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors became acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it controlling rights of the company. JAGUAR CARS AND LAND ROVER After the acquisition of British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names Tata Motors became a major player in the international automobile market. Jaguar XF Land Rover's Range Rover On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. The sale was completed on 2 June 2008 Tata has gained the rights to the Daimler, Lanchester, and Rover brand names. In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies. JOINT VENTURES Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport • In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and introduced its highend inter-city buses in the country. • Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. • The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. IMPORTANT DEVELOPMENTS In 2005 & 06 Tata Ace was India's first mini truck Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.By 2005; Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the number makers for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its introduction. Tata Ace has also been exported to several European, South American and African countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division. In 2007 In 2007, Tata Motors launched several concept models and future designs of existing models. It also formed joint ventures with various local companies in several countries to assemble Tata cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show. Tata Motors also formed a joint venture

with Fiat and gained access to Fiat’s diesel engine technology. Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. The project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers. The company has formed a joint venture with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will hold a 70% stake. In 2008 COMPRESSED AIR CAR Tata OneCAT Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to have "the backing of Tata". It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3 minutes. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town, but "the compressed air driving the pistons can be boosted by a fuel burner". OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. It is actually a dual fuel car but it is more efficient than any present Hybrid cars. IN 2009 AND ONWARDS Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009. Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1.93 M, which specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in Europe next year. GLOBAL OPERATIONS Tata Motors has been aggressively acquiring foreign brands to increase its global presence. 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. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, giving it controlling rights of the company. Hispano’s presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. 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 has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also

franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa. The Government of India announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments 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 policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively. The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets. With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its intention to enter the sedan and sports car markets. Tata Indica assembled in Thailand and Argentina. Tata Prima The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. FUTURE CHALLENGES • Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar International), to manufacture commercial vehicles and to bolster its position in the CV business. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport, cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09. • Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007. • Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into technology agreements with

Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates. • Suzuki: Suzuki through its subsidiary, Maruti Suzuki in the Indian market may also be alarming. Maruti has aggressively launched family cars to undermine the Tata models. MILESTONES 1945 • Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products. 1948 1954 • • Steam road roller introduced in collaboration with Marshall Sons (UK). 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 1977 1983 1985 1986 • • • • • Research and Development Centre set up at Jamshedpur. First commercial vehicle manufactured in Pune. Manufacture of Heavy Commercial Vehicle commences. First hydraulic excavator produced with Hitachi collaboration. Production of first light commercial vehicle, Tata 407, indigenously designed, followed by Tata 608. 1991 • • Launch of the 1st indigenous passenger car Tata Sierra. One millionth vehicle rolled out. Launch of Tata Sumo - the multi utility vehicle. Mercedes Benz car E220 launched. Tata Sumo deluxe launched. Tata Sierra Turbo launched. Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicles rolled out. Indica, India's first fully indigenous passenger car launched. 1994 1995 1996 1997 1998 • • • • • • • 2001 • • • Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of the Tata Safari EX 2002 • • • • 2,00,000th Indica 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. On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out 2003 • • • 2004 • Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement and completes acquisition of Daewoo Commercial Vehicle Company 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 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 Branded buses and coaches - Starbus and Globus - launched Tata Ace, India's first mini truck launched The power packed Safari Dicor is launched Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced and sold Inauguration of new factory at Jamshedpur for Novus Launch of Tata Novus • • • • 2005 • • • • • • • • • • 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 Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors first plant for small car to come up in West Bengal Tata Motors and Fiat Group announce three additional cooperation agreements Construction of Small Car plant at Singur, West Bengal, begins on January 21 New 2007 Indica V2 range is launched Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), announce formation of a joint venture company in Thailand to manufacture, assemble and market pickup trucks. 2007 • • • • • • Roll out of 100,000th Ace Tata-Fiat plant at Ranjangaon inaugurated Launch of a new Upgraded range of its entry level utility vehicle offering, the Tata Spacio. Launch of Magic, a comfortable, safe, four-wheeler public transportation mode, developed on the Ace platform Launch of Winger, India’s only maxi-van Fiat Group and Tata Motors announce establishment of Joint Venture in India Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level utility vehicle, the Sumo Spacio Tata Motors launches Indica V2 Turbo with dual airbags and ABS Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct Injection Common Rail (DICOR) engine. Rollout of the one millionth passenger car off the Indica platform. Latest common rail diesel

offering- the Indica V2 DICOR, launched. Indigo CS (Compact Sedan), world’s first sub four-metre sedan, launched. Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV • • • • • • • 2008 • • • with the comforts of a family car. • • • Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo. Xenon, 1-tonne pick-up truck, launched in Thailand. Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover. Tata Motors completes acquisition of Jaguar Land Rover. Tata Motors introduces new Super Milo range of buses. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III Commonwealth Youth Games Pune 2008. Indica Vista – the second generation Indica, is launched. Tata Motors launches passenger cars and the new pick-up in D.R. Congo. Tata Nano is launched. • • • • • 2009 • MANAGEMENT Board of Directors: Mr. Ratan N Tata (Chaiman) Mr. N. A. Soonawala Dr. J.J. Irani Mr. V.R. Mehta Mr. Nusli N Wadia Mr. S. M Palia Dr. R. A. Mashelkar Mr. Ravi Kant Mr. P. M. Telang Senior Management Mr. Ravi Kant Mr. P. M Telang Mr. Rajive Dube Mr. C Ramkrishnan Mr. P.Y. Gurv Dr. S. J. Tambe Mr. Zackria Sait Mr. A. M Mankad : : : : : : : : Executive Director Executive Director President (Passenger Cars) Chief Financial Officer Vice President (Corporate Finance- Accounts and Taxation) Vice President (Human Resource) Vice President (Technical Services) Head (Car Plant) Head (Jamshedpur Plant) Vice President (Commercial-PCBU) Vice President (Sales & Marketing) Company Secretary Mr. S. B. Borwankar : Mr. S. Krishnan Mr. PCBU bags Handa Golden KeyRavi Pisharody Mr. H. K. Sethna : : : AWARDS Aggregates Tata Motors receives Uptime Champion Award 2007. Award…. ‘NDTV Profit’ BusinessBusiness, CVBU, bags ’Best Supplier Award’ from ECEL. Tata Motors bags National Award for Excellence in CostLeadership Award. Tata Motors’ TRAKIT bags silver award for Excellence in CostManagement… Tata Motors Pune – CVBU has bagged the “Golden Peacock NationalManagement… Tata Motors was awarded four prestigious honors, at the ‘CNBCQuality Award. Tata Motors chosen as India’s Most Trusted Brand in Cars… TV18-Auto Car’. Pune FoundryBusiness Today selects Mr. P.P Kadle as India’s Best CFO in 2005… Tata Motors is ‘CommercialDivision bags prestigious Green Foundry Award… ACE bags ‘Best Commercial Vehicle Design’Vehicle Manufacturer of the Year’… Tata Motors bags the prestigious ‘CII –EXIM Bankat the BBC-Top Gear Awards… ‘Car Maker of the year’ Award for Tata Motors…award’ for business excellence… ‘CFO of the Tata Motors is ‘Commercial Vehicle Manufacturer of the year’. TataYear Award 2004’ awarded to Mr. Praveen P Kadle, Executive Director. TataMotors wins ‘Golden Peacock Award’ for Corporate Social Responsibility. Tata Motors wins theMotors – Jamshedpur wins ‘Energy Efficient Unit Award’. Tata Motors Jamshedpurfirst CSIR Diamond Jubilee Technology Award. & Lucknow win awards… Products of TATA Motors [1] Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista • • • • • • • • • • Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover [2] Concept vehicles • • • • 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva • • • • • 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima [3] Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES • • • Tata Ace Tata TL/ Telcoline /207 DI Pickup Truck Tata 407 Ex and Ex2 • • • • • • • • • • • • • • • Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo) [4] Military vehicles • • • • • • • • • Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher

Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6) Tata LPTA 1615 T MARKETING STRATEGIES 1. LAUNCH OF TATA nano TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it “The People’s Car”. It’s a sweet looking small car, just enough to take four people around the city. 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked. Following TATA Nano car specs in comparison with Maruti 800: • • • • • • • • Overall Length of Nano is 3100 MM which is 7% shorter than Maruti 800 Overall Breadth of Nano is 1500MM which is 4% Wider than Maruti 800 Overall Height of Nano is 1600MM which is 14% Taller than Maruti 800 Overall inside Space of Nano is 21% Bigger than Maruti 800 Engine Capacity 623CC 2 Cylinders, Maruthi 800’s got 3 Cylinders Power 33BHP, less than Maruthi 800 Top Speed: 120 Kmph Top Speed Lower Than Maruti 800 Fuel efficiency is 20 Kmpl just as Maruti 800 TATA Nano will hit the roads and as it is a definite threat to Maruti 800. TATA stated that the initial production of this car will be of 250,000 a year. After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now. The introduction of the Nano received media attention due to its targeted low price. The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to massmanufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide. Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year), and have also criticised the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasolinemodel. The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal government. The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the highway and around 22.00km/l in the city. It was first presented at the 9th annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch on March 23, 2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car begin in July 2009, with a starting price of Rs 115,000 (rupees). This is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 184,641Rupees. DESIGN Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production car in 2003, inspired by the number of Indian families with two-wheeled rather than fourwheeled vehicles. The Nano's development has been tempered by the company's success in producing the low cost 4 wheeled Ace truck in May 2005. Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times of India reported the vehicle is "a

properly designed and built car". The Chairman is reported to have said, "It is not a car with plastic curtains or no roof — it's a real car." To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers. The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes, such as the elimination of one of two windscreen wipers. Some components of the Nano are made in Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other technologies. The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an 8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in three versions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have air conditioning, power windows, and central locking. Tata has set its initial production target at 250,000 units per year. COST CUTTING FEATURES • The Nano's trunk does not open. Instead, the rear seats can be folded down to access the trunk space. It has a single windscreen wiper instead of the usual pair. It has no power steering. Its door opening lever was simplified. It has three nuts on the wheels instead of the customary four. It only has one side view mirror. • • • • • PRICE Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming for a starting price of 100,000 rupees or approximately, despite rapidly rising material prices at the time. As of August 2009, material costs had risen from 19% to 29% over the car’s development, and Tata faced the choice of: • introducing the car with an artificially low price through government subsidies and taxbreaks forgoing profit on the car using vertical-integration to artificially boost profits on cars at the expense of their materials industries partially using inexpensive polymers or biodegradable plastics instead of a full metalbody • • • • raising the price of the car Nano is available in three trim levels: • • • The basic Tata Nano Std priced at 123,000 Rupees has no extras; The deluxe Tata Nano CX at 151,000 Rupees has air conditioning; The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and central locking The Nano Europa, European version of the Tata Nano has all of the above plus a larger body, bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards and emission norms. • The base model will have fixed seats, except for the driver's, which will be adjustable, while the deluxe and luxury models will get air conditioning and body coloured bumpers. Technical specifications According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways ( 25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-cylinder nonopposed petrol engine will be used in a car with a single balance shaft. Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano, with powertrain accounting for over half of them. The project head, Girish Wagh has been credited with being one of the brains behind Nano's design. Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or represents earth-shaking technology. He said most relate to rather mundane items such as the two-cylinder engine’s balance shaft, and how the gears were cut in the transmission. Though the car has been appreciated by many sources, including Reuters due to "the way it has tweaked existing technologies to target an as-yet untapped segment of the market", yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology", just low in price. Moreover, technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version, technologies on which Tata is

reportedly already working, though no official incorporation-date for these technologies in the new car has been released. According to Tata, the Nano complies with Bharat Stage-III and Euro-IV emission standards. Ratan Tata also said, 'The car has passed the full-frontal crash and the side impact crash'. Tata Nano passed the required 'homologation’ tests with Pune-based Automotive Research Association of India (ARAI).This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise & vibration and can now ply on Indian roads. Tata Nano managed to score around 24 km per litre during its ‘homologation’ tests with ARAI. This makes Tata Nano the most fuel efficient car in India. Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’s tests on its windshield. According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010. REAR MOUNTED ENGINE The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500, another technically innovative "people's car". A concept vehicle similar in styling to the Nano, also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production. The eventual new Mini was much larger and technically conservative. The independent, and now-defunct, MG Rover Group later based their Rover CityRover on the Tata Indica. Tata is also reported to be contemplating offering a compressed air engine as an option. nano’s TECHNICAL SPECIFICATIONS Engine: 2 cylinder petrol with Bosch multi-point fuel injection (single injector) all aluminium 33 horsepower (25 kW) 624 cc (38 cu in) Value Motronic engine management platform from Bosch 2 valves per cylinder overhead camshaft Compression ratio: 9.5:1 bore × stroke: 73.5 mm (2.9 in) × 73.5 mm (2.9 in) Power: 33 PS (33 hp/24 kW) @ 5500 rpm Torque: 48 N·m (35 ft·lbf) @ 2500 rpm Layout and Transmission: Steering: Performance: Rear wheel drive 4-speed manual transmission mechanical rack and pinion Turning radius: 4 metres Acceleration: 0-70 km/h (43 mph): 14 seconds Maximum speed: 120 km/h (75 mph) Fuel efficiency (overall): 20 kilometres per litre (5 litres per 100 kilometres (56 mpg-imp; 47 mpg-US)) Body and dimensions: Seat belt: 4 Trunk capacity: 150 L (5.3 cu ft) Suspension, Tires & Brakes: Front brake: drum Rear brake: drum Front track: 1,325 mm (52.2 in) Rear track: 1,315 mm (51.8 in) Ground clearance: 180 mm (7.1 in) Front suspension: McPherson strut with lower A arm Rear suspension: Independent coil spring 12-inch wheels 2. Modification in TATA Sumo The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of changes in terms of refinement in this decade. It has been the favorite choice for cab owners, as it is rugged and affordable. The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a carryover of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa variants: CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX 10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a 2litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp. The Victa DI variants get a 3-litre turbocharged diesel engine. Refinement, both internal and external, is evident across the variants. Tata's latest three variants under the 'Sumo Grande' category are LX, EX and GX available in 2-seater, 7- seater and 8-seater configurations. Sumo Grande boasts of a powerful 2.2-L Direct Injection Common Rail (DICOR) engine SUMO SPACIO A no-frills version called the Tata Spacio is also available. It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407. The prominent visual difference was the presence of round headlamps instead of the rectangular lamps. A soft top version of the Spacio

called the Spacio ST was also introduced for the rural markets. After the facelift, the Spacio inherited the styling elements of the older Tata Sumo. In 2007, the Victa became available with the Spacio's 3000 cc engine. And in terms of styling, the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle. This model comes in 8 and 10 seater variants and is very much popular with private transporters & contract taxi vendors because of its lower cost. SUMO VICTA The new Sumo Victa released in 2004 featured power windows, power steering, dual AC, central locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti glare ORVMS with electronic control, remote keyless entry, tachometers, LCD monitors, voice warnings, multiple trip odometers are all either standard or available options. New TATA Sumo (SUMO GRANDE) Tata launched the Sumo Grande on January 10, 2008 powered with a new generation 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most up market version of the Sumo available and features completely different body work. It lies below the Tata Safari in Tata's product portfolio. SUMO GRANDE Specifications Top speed 0 to 100 km/h (62 mph) Engine Type Displacement (Capacity) Transmission Power Torque Valve Mechanism Cylinder Configuration Fuel Type Fuel Tank Capacity (Ltrs.) Minimum Turning Radius Wheel size Tyres Ground Clearance Steering Colours 148 km/h (92 mph) 17.6 s 2.2L DICOR, 32 Bit ECU and Variable Geometry Turbocharger 2179 cc 5-speed manual 120 PS (118 hp/88 kW) @ 4000 rpm 250 Nm (184 lb·ft) @1500 rpm DOHC Inline 4 Diesel 65 5.25 meters 16 inch 235/70 R 16 (tubeless) 205 mm / 8.07 inches Power Steering, Tiltable & Collapsible Zephyr Green, Marine Blue, Sunset Orange, Mineral Red, Arctic White, Arctic Silver, Quartz Black. (7 Colours) TATA SUMO GRANDE (More than meets the eye) 3. NEW VERSION OF INDIGO ,INDIGO DICOR Dicor Variants The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver & co Anti-submarine front seats passengers oriented positive attributes such as: Rear Seat with doubleNew electronic instrument cluster with engine RPM meter Video player with MP3: with headrest mounted LCD screens folding backrest 1.4-litre as rail diesel engine Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window, black dials with chrome rings & star check as the new pattern for its console & AC fascia. Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz silver as the new pattern for console & AC fascia. It has no mounted LCD screens. Mileage (City) Mileage (Highways) : 14.75 kmpl : 18.35 kmpl ENGINES Petrol Diesel Dicor 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. Power - 85 PS @5500 rpm Max. Torque - 12 Kgm @ 3500 rpm Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power -70 PS @ 4500 rpm Max. Torque - 13.5 Kgm @ 2500 rpm 32-bit microprocessor based 1396 cc DICOR (Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger (VGT) Max. Power-70 PS@4000 rpm Max. Torque - 140Nm@1800-3000 rpm 4. TAPPING OF RURAL MARKETS According to the National Council for Applied Economic Research, or NCAER, rural India accounts for 70% of India’s population, 56% of the national income, 64% of the total expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets pale before the huge potential they offer a company. Of the total sales (of consumer goods), around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income

will be about two-thirds of the rural economy by 2012-13. Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of which runs on cash. Tata motors ltd. is working on strategies to make inroads into these markets. SWOT Analysis - Tata Motors Limited SWOT – Strengths, Weaknesses, Opportunities, Threat STRENGTHS • The internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' • The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. • The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America. WEAKNESSES The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. • Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? • One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover. OPPORTUNITIES • In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. • Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. • Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! • The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. • The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. THREATS • Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. • Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated. • Since the company has focused upon the commercial and small vehicle

segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Punebased 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 Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others. • Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. FINANCIAL ANALYSIS FINANCIAL OVERVIEW Year Equity Paid Up Network Capital Employed Gross Block Net Working Capital (Incl Def. Tax) 200803 385.54 7813.99 14094.51 10805.32 -1248.57 10781.23 12029.80 26118.26 32885.03 28529.40 972.93 28488.92 24611.49 1179.48 3654.39 3228.78 3002.08 2576.47 2028.92 2681.23 2844.12 1695.58 0 1314.31 202.68 24037.11 67.44 50.52 150 29.7 2007-03 385.41 6843.8 10852.94 8749.85 1997.22 10688.65 8691.43 19534.28 31611.21 27185.77 547.11 27535.45 23290.95 1068.56 3527.98 3159.47 2941.69 2573.18 1913.46 2499.75 2714.68 1504.74 0 472.76 177.57 28048.94 62.31 47.10 150.00 31.85 2006-03 382.87 5510.68 8447.52 7945.16 1923.41 9638.56 7715.15 16148.55 23673.43 20293.30 693.92 20550.21 17447.80 756.54 2867.81 2574.32 2346.87 2053.38 1528.88 2049.82 2384.81 1132.9 0 264.88 143.93 3507.39 51.19 37.59 130 34.6 200503 361.79 4111.39 6606.81 6611.95 -19.92 7188.72 7208.64 13797.29 20152.03 17088.59 560.29 17232.59 14614.45 581.41 2319.87 2102.06 1869.71 1651.90 1236.95 1687.11 1497.85 671.40 0 226.84 113.64 14976.30 44.88 32.44 125.00 38.66 2004-03 353 3589.77 4849.54 5985.4 -1477.22 3830.76 5307.98 10135.33 15165.85 12895.55 427.79 12753.57 10511.53 455.56 1877.42 1674.94 1494.82 1292.34 810.34 1192.94 1016.64 354.38 0 43.22 101.69 17331.23 32.77 21.93 80.00 36.44 Current Assets (Incl Def. Tax) Current Liabilities and Provision (Incl Def. Tax) Total Assets/ Liabilities Gross Sales Net Sales Other Incomes Value of Output Cost of Production Selling Cost PBIDT PBDT PBIT PBT PAT CP Revenue earnings in forex Revenue expenses in forex Capital earnings in forex Capital expenses in forex Book Value (Unit Curr) Market Capitalisation CEPS (annualised), (Unit Curr.) EPS (annualised), (Unit Curr.) Dividend (annualized %) Payout (%) Year 2003-04 2004-05 2005-06 2006-07 Dividend Per Share(DPS) in Rs. 8.00 12.50 13.00 15.00 2007-08 15.00 FORMULAE AT GLANCE Cost of Equity, Ke = Dividend Per Yield Growth rate (G) ROE Equity Shareholder Funds = Dividend Per Share / Book Value = Retention Ratio x ROE = (1- Payout Ratio) x ROE = (PAT – Preference Dividend) / Equity Shareholder Funds = Equity Share Capital + Reserves – P& L A/C (Dr. Balance) Cost of Debt Kd = ROI = CAPITAL STRUCTURE (Rs in Cr.) Year DPS(Rs) Book Value(Rs.) Payout (%) Retention Ratio PBT Tax PAT Preference Dividend Equity Reserves P & L Account(Dr Balance) Equity Shareholder Fund ROE Growth Rate (%) Cost of Equity (%) Interest Total Debt 008 2 007 2 20 06 13 143.93 34.6 0.654 2053.38 363.35 1690.03 19.94 382.87 5154.2 0 5537.07 0.30 19.73 28.76 293.49 2936.84 2 005 12.5 113.64 38.66 0.6134 1651.9 363.82 1288.08 0 361.79 3749.6 0 4111.39 0.31 19.22 30.22 217.81 2495.42 20 04 8 101.69 36.44 0.6356 1292.34 96 1196.34 0 353 3236.77 0 3589.77 0.33 21.18 29.05 202.48 1259.77 15 202.68 29.7 0.703 2576.47 139.01 2437.46 0 385.54 7453.96 0 7839.5 0.31 21.86 29.26 425.61 6280.52 15 177.57 31.85 0.6815 2573.18 476 2097.18 0 385.41 6484.34 0 6869.75 0.31 20.80 29.25 368.51 4009.14 Cost of Debt (%) PBIT Capital Employed ROI (%) Year 6.78 3002.08 14094.51 21.30 2008 9.19 2941.69 10852.94 27.11 9.99 2346.87 8447.52 27.78 8.73 1869.71 6606.81 28.30 16.07 1494.82 4849.54 30.82 WEIGHTED AVERAGE COST OF CAPITAL Proportion (%) 6.14 94.22 100.36 Source Equity Debt Year Amount 385.54

6280.52 6666.06 2007 Cost (%) 29.26 6.78 Weighted Cost (%) 1.80 6.38 8.18 Source Equity Debt Year Amount 385.41 4009.14 4394.55 2006 Proporti on (%) 9.61 91.23 100.84 5 Cost (%) 29.2 Weighted Cost (%) 2.81 9.1 9 8.39 11.20 Source Equity Debt Year Amount 382.87 2936.84 3319.71 2005 Proporti on (%) 13.04 88.47 101.50 Cost (%) 28.76 9.99 Weighted Cost (%) 3.75 8.84 12.59 Source Equity Debt Year Amount 361.79 2495.42 2857.21 2004 Proporti on (%) 14.50 87.34 101.84 Cost (%) 30.22 8.73 Weighted Cost (%) 4.38 7.62 12.00 Source Amount Proporti on (%) Cost (%) Weighted Cost (%) Equity Debt 353.00 1259.77 1612.77 28.02 78.11 106.13 29.05 16.07 8.14 12.55 20.69 WEIGHTED AVERAGE COST OF CAPITAL (WACC) Vs ROI Year 2008 2007 2006 2005 2004 WACC (%) 8.18 11.20 12.59 12.00 20.69 ROI (%) 21.30 27.11 27.78 28.30 30.82 Difference 13.12 15.91 15.19 16.30 10.13 REASONS Fiscal 2008-09, the second year of 11th Five Year Plan saw a marginal fall in GDP growth rate of 9%. • • • • • • • The slowdown in economy. Increase in inflation. Poor credit availability. Hardening of interest rate Rise in price of input material Proposed increase in fuel price and volatility in foreign exchange rates. Manufacturing expenses, employee cost increase. • Net raw material consumption inclusive of processing charges increased, with pressure on volumes and margins. BALANCE SHEET ANALYSIS From the above statement it is seems that the company has become highly geared year after year. To substantiate this, the net current asset which is a representation of their long term debit is on the increase (Rs. 27,203.30 million In 2006, Rs. 40,235.10 million in 2007, and Rs. 58,792.80 million In 2008) this forms a lower percentage of the total debit (when short term debit and capital cases are added) the company is perhaps aware of the results that may effect the interest on the total equity and rather have a preference for short term loans as the environment dictate, hence, increasing the total equity year by year. During the year, the Company recorded its highest ever sale of 5, 85,649 vehicles and grew its turnover to Rs. 33,094 crores to remain as India's largest automobile company by revenue. The Company's margins were under pressure during the year due to rising interest rates, constraints in availability of vehicle financing from outside sources and unprecedented increase in prices of raw materials. For long term financial plan and expansion of the new product (Nano) Tata has decided to raise funds from the stock market rather than going for a loan option (GEARING). This is because in the past heavy amounts were gained as interest on loans which have a negative effect on the profit and returns to the stake holders. To support my analysis in financial year 2006, Rs. 36,641 million loans was taken, and in the year 2007, Rs. 79,137 million loan was taken, And also the companies net profit margins have gone down abruptly from 6.8% in 2005 to 5.6% in 2007, most probably because of the rising cost of the raw material used by the 5 company, but still the profits of the Tata Motors remain highest than the other auto manufacturers. The rate of interest on vehicles in India is running very high, because of which the sales growth have gone a little down. Even then Tata Motors have increased there profits to 6.2% year after year. And are still financing most of their sales, up to 31% in 2007 from 24% in 2006. Hence, gross accounts receivable are greater than before by 35% every year and they also had to make up the shortage of cash by borrowing. When combined with the other expenses to the growth of fuel, it has augmented its short as well as it’s the long-term debt extensively. The EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin at 10.8% was lower than last year as increase in input costs could only be partially absorbed by the market. Note: Amortization = non-cash expense of writing off intangible assets over their useful lives. The Profit Before-Tax at Rs.2, 576 crores was 0.1 % higher than last year, The Profit after Tax at Rs.2, 029 crores, was 6.1 % higher than last year. FINANCIAL PERFORMANCE With significant increase in the Company's capital expenditure program’s

and the growing business requirement, the overall borrowings of the Company stood at Rs.6, 280.52 crores at a Debt: Equity ratio of 0.80:1. The Indian economy remained in high growth phase but witnessed moderation in GDP growth to 90/ in FY 07-08 as compared to over 9% growth achieved in the previous two years. The commercial vehicle industry which grew by over 33% in FY 06-07 was impacted by moderation in economic growth as wet as substantial reduction in vehicle financing and posted a 8.1% growth this fiscal. The passenger vehicle industry also witnessed a slowdown but managed to grow by 11.1 % by increasing discounts on mature products, launching new models and due to reduction in excise duty announced by the government in Budget during February'08. Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the previous year. Amidst moderation in economic growth, a high interest rate regime and tightening of the liquidity position, the domestic passenger vehicle industry was able to grow by 11.3% to an all time high of over 1.5 million vehicles, albeit at a lower growth rate than 21% of the last fiscal. The Industry's growth rate in fact fell to single digit in the last four months of the fiscal. Growth was primarily driven by new launches and discounts on existing volume models. Along with two wheelers, entry level cars (price point below Rs 3 lacs) declined by 2%.The luxury segment however doubled in size to over 5,000 vehicles and were immune to the slowing market conditions. Of over 90 models in the industry the top 10 constitute 65% of the industry sales. After six years of consecutive growth, the Company's passenger vehicle sales decreased marginally by 4.5% to 2, 18,055 vehicles (including 3,297 Fiat branded vehicles) and the Company had a 14.2% share in the passenger vehicle market between TATA and Fiat branded vehicles. Fiscal 2008-09, the second year of 11th Five Year Plan saw a marginal fall in GDP growth rate of 9%. In view of the slow down in economy, increase in inflation, poor credit availability, hardening of interest rates, rise in prices of input materials, proposed increase in fuel prices and volatility in foreign exchange rates, the commercial and passenger vehicle industry has a challenging year ahead, with pressure on volumes and margins. “Fiscal Total short-term debt (Excluding current portion of long-term debt) Long-term debt net of current portion Total Debt 2006 7,973 27,203 36,641 2007 (Millions of Rupees) 33,145 40,235 79,137” FINANCIAL ANALYSIS OF TATA MOTORS • • • On the back of a 3.9% volume growth, the company registered 14.4% y-o-y growth in net revenue to Rs.60.57 bn during 1QFY09 due to vehicle price increases and favorable mix Significant cost increases were witnessed in raw material consumption and employee cost which witnessed y-o-y growth of 18.2% and 13.9% respectively. Excluding the impact of foreign exchange valuation related losses, the Company’s EBITDA stood at Rs.5,304.7 mn, compared to Rs.5,463.0 mn the year ago quarter. EBITDA margin, excluding foreign exchange losses was 7.7% in 1QFY09, compared to 9.0% 1QFY08. • In a rising cost scenario, pressure on margins was visible as the company’s raw material cost as percentage of net revenues of the Company rose by 240 bps to 72.0% in 1QFY09; from 69.7% in 1QFY08. • • Cost reduction in 1Q FY09 stood at 294 mn. Net interest expense increased 37.7% y-o-y to Rs.1123.3 mn in Q1 FY09, compared to Rs.815.6 mn due to rising interest rates and higher debt. However, the interest expense as a % of net sales increased marginally from 1.3% in Q1 FY08 to 1.6% in Q1 FY09. • Tax rate for first quarter declined substantially and stood at 5.5% as compared to 21.2% for same period last year, on account of large dividends received by Company on its Investments/Subsidiaries which are not taxable in the hands of the Company and weighted deductions available on R&D expenditure. • As on 30th June’08, the balance sheet size of the Company was Rs. 183.98 bn as compared to Rs 150.96 bn as on 31st March’08. Net of vehicle financing loans and receivables the Company’s capital employed was Rs 178.33 bn as on 30th June’08 against Rs.135.76 bn

as on 31st March’08. • • As on 30th June’08, 385.62 mn shares (Face value Rs.10) were outstanding on the balance sheet of Tata Motors. The Gross total debt (inc. FCCNs) stood Rs 94.97 bn as on 30th June’08 as compared to Rs. 62.8 bn as on 31st March’08. The Company’s Net Debt (Net of the surplus investible funds) stood at Rs 89.3 bn as on 30th June’08. As on 30th June’08, the Company’s net debt to equity ratio stood at 1.12:1. • Up to June 30th, 2008, 99.94% of the 1% convertible Notes (due 2008) and 97.09% of the Zero coupon Convertible Notes (due 2009) have been converted into Ordinary Shares / ADSs. There have been no conversions of the other FCCNs issued by the Company. • The Company’s Balance Sheet includes Receivables and loans of Rs. 27.94 bn FINANCIAL PERFORMANCE AS OPERATIONAL PERFORMANCE: • A MEASURE OF In a challenging environment, the Company has been able to marginally grow its revenues and profits. Whilst the Company's profit after tax improved to Rs.2,028.92 crores from Rs.1,913.46crores in the previous year, the margins were under pressure mainly due to the rising input costs and lower volume growth. • Turnover, net of excise duties increased by 4.6% to another record high of Rs. 28,730.82 crores from Rs.27, 470.03 crores in FY 2006-07.The total number of vehicles sold during the year increased by 0.9% to 585,649 units from 580,280 units in FY 2006-07.The domestic volumes increased by 0.8% to 530,990 units from 526,806 units in FY 2006-07, while export volumes increased by 2.22% to 54,659 units in FY 2007-08 from 53,474 units in FY 2006-07. • Net Raw Material consumption inclusive of processing charges increased by 6.2%to Rs.21, 082.10 crores in FY 2007-08, from Rs.19,849.04 crores in FY 2006-07. Material Cost as a % of net turnover has increased to 73.4% from 72.3% for the last year. This was largely a result of increase in prices of steel, aluminum, nickel, copper and natural rubber. However, the Company managed to lower the impact through its on going cost reduction program with initiatives like global sourcing, vendor rationalization and value engineering. • Employee Cost increased by 12.9% during the year to Rs. 1,544.57 crores from Rs. 1,368.09 crores registered in the previous year mainly inline with trends in industry and economy. The manpower increased marginally to 23,230 from 22,349 with increases also in flexible manpower. • Manufacturing and Other Expenses increased by 2.4% to Rs. 3,011.83 crores in FY 200708 from Rs.2,940.53 crores in FY 2006-07.These were 10.5% of net turnover for the year as compared to 10.7% for the previous year. • Profit before depreciation, interest and tax increased by 0.5% to Rs.3,575.50 crores from Rs.3,557.56 crores in FY 2006-07.The margin decreased to 12.4% from 13% in FY 200607. • Depreciation (including product development expenditure) for 2007-08 increased by 6.8% to Rs. 716.66 crores from Rs.671.31 crores in FY 2006-07 on account of increase in fixed assets. It represents 2.5% of net turnover as compared to 2.4% for FY 2006-07. • Net interest cost decreased to Rs. 282.37 crores in FY 2007-08 from Rs.313.07 crores in FY 2006-07. Despite increase in interest rates and increase in capital expenditure, the reduction was mainly on account of significant reduction in the Company's vehicle financing portfolio (on account of securitization), better working capital management, interest earnings and larger capitalization of interest in line with the increase in capital expenditure. • • Profit before Tax (PBT) of the Company increased by 0.13% to Rs. 2,576.47 crores from Rs. 2,573.18 crores in FY 2006-07. Profit after Tax (PAT) increased by 6.03% to Rs. 2,028.92 crores from Rs.1, 913.46 crores in FY 2006-07. This was mainly on account of a lower tax provision owing to the increase in spends on Research and Development and income from capital gains, which is subject to a lower tax rate. Basic Earning Per Share (EPS) increased by 5.79% to Rs.52.64 as compared to Rs.49.76 last year. • • Investments increased to Rs.4, 910.27 crores in FY 2007-08 from Rs.2, 477.00 crores in FY 2006-07. The Profit Before –Tax at Rs. 2,576 crores was 0.1% higher than last year. The Profit after Tax at Rs. 2,029 crores, was 6.1% higher

than last year. Financial performance of a company is satisfactory and attaining good return’s of the capital employed even in peak stage as WACC is less than about 13.12% • GLOBAL AUTOMOBILE INDUSTRY EXPECTED GROWTH by 2015-16 • Expected to grow at 13% p.a over the next decade to reach around USD $ 120 - 159 bn by 2016. INDIAN AUTOMOTIVE PLAYERS: OVERVIEW OF THE PLAYERS IN THE INDIAN INDUSTRY The Indian auto industry is highly competitive with a number of global and Indian auto companies present. Hence, we have conducted an Inter company analysis of Tata with Mahindra and Mahindra and Maruti Udyog, to get an idea of the company’s position (operation and profitability) vis a vis its competitors. INTER COMPANY ANALYSIS: Key Players in the Indian auto industry – Passenger Cars And CVs The largest Player in the Indian industry. Plans to launch new and exciting products in the Indian markets, including the ‘100,000’ cars. TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010. The third largest passenger car manufacture in India and one of the largest exporters of vehicles. Has establishes India as one of its manufacturing bases in the world, is planning to invest heavily to boost exports from India. Maruti Suzuki’s JV in India and the largest passenger car manufacturer in India. One of the leading players in the Indian premium cars segment. One of the largest players in the UV/ MUV segment One of the leading players in the Indian premium cars segment. Plans to enter the small car segment by re-launching the matiz. The 2nd largest CV manufacturer in India. Other global players who are in India have plans for India includes – VOLVO, DAIMLER CHRYSLER, BMW and NISSAN MOTORS. Market Financial performance in automobile industry Project involves: Introduction about TATA Motors Cost saving initiatives performance Procedure followed by TATA Motors for catering to the needs and queries of the Awareness regarding the facilities provided Quantitative research customers Overall opinion about TATA Motors. Scope of the Study: • • • •by TATA Motors. • To find the Market position. For Economic and the industry environment. This study would be useful for companies to know what people perceive and thinking about Tata Motors and its products. This study would be useful to other students as a secondary data. This study would be useful to form strategies. Research Methodology: The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data. Objective of the Study: • • • To know the consumer satisfaction. Financial performance in automobile industry. Market performance. • • • • • • Market position. Economic and the industry environment. Cost saving initiatives. To find out the satisfaction level of people. To find out the awareness level of customer. To find the satisfaction amongst the customers of TATA Motors. Sources of Data Collection: Primary: For my survey primary data have been used as a questionnaire to collect the data. SECONDARY: The secondary data has been collected from the following modes: • Magazines • • • Books Newspaper Data through internet sources RESEARCH DESIGN: Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data. RESEARCH PLAN • Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study. Sampling Plan: A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure

that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected. STEPS IN SAMPLING PLAN : Sampling Frame: The list of sampling units from which sample is taken is called sampling frame. Mandi City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result. SAMPLING SIZE: Total sample size is 100. The following sample size according to area wise 10 20 NER CHOWK 20 CHALCHOWK 10 JAIL ROAD 20 LUNAPANI is as follows: 10 PANDO SAMPLING PROCEDURE: The selection of 10 SUNDER NAGAR REWALSER respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtain the sample of convenient. Analysis: The important factors and data’s collected were sequentially analyzed and graphed. Limitation of the study: • • • • • I will have to rely upon the information get from secondary sources (Balance sheet, Profit & Loss Account and Cash Flow ) and given by respondents, which may not be fully true. This study will be limited to only some areas of Mandi District of Himachal Pradesh. It is only for short period of time. Lack of professional approach since researcher is a student The sample size is only 100 so the sample may not be truly representative of the Delhi population. FIELD WORK: I have collected the data through medium called questionnaire collecting the responses from 100 people in all. I had done my field work in the following area. LUNAPANI, JAIL ROAD, CHALCHOWK, NER CHOWK, REWALSER, SUNDER NAGAR, PANDO I started my project very first educating the respondents about my entire project, and ask them to co–operate with me. Mostly all the respondent were aware of this type of surveys. So I didn’t face any type of difficulty during my project in the process of explaining and taking there responses on the questionnaire. Comparison of THE STANDING TATA MOTORS visá-vis THE INDUSTRY TO COMPARE THE STANDING TATA MOTORS vis - á - vis THE INDUSTRY. I CONDUCTED A FINANCIAL ANALYSIS OF TWO OF ITS COMPETITORS – MAHINDRA & MAHINDRA AND MARUTI UDYOG. The comparison is based on the detailed analysis of the financial statement on the lines of Liquidity, Solvency, Profitability and efficiency. LIQUIDITY POSITION: Purpose of the Liquidity Ratios: The liquidity ratios help to determine a company’s ability to meet its short-term liabilities. It can be in the form of the current ratio, liquid ratio, absolute ratio or the operating cycles. While the current ratio, liquid ratio and absolute cash ratio provide information about the company’s ability to payoff the shot-term obligations, the operating cycle provides qualitative information about how quickly the company can convert its stock into cash. Company Analysis: • Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity position, however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets and cash i.e. the most liquid asset, the least. • Further, it has a negative operation cycle, which is primarily due to the high credit period provided to its creditors. While both TATA and M&M have similar inventory days M&M has an even lower operating cycle due to an even higher credit period. Maruti on the other hand has an operating cycle of 7 days, which is much higher as compared to the other two. LIQUIDITY POSITION GRAPHICAL: Liquidity R tio - Liquid R tio a a 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1.04 1.08 1.27 o i t a R Maruti Mahindra TATA Yea 2008-09 r Inferences Drawn: We can, therefore conclude that TATA Motors has a favorable liquidity position which is neither too high nor too low, as an extremely high liquidity position would mean that the company is not using its funds well while a low liquidity position would imply that it would have difficulty in meeting its short term obligations. SOLVENCY POSITION: Purpose of the Solvency Ratios: The solvency ratios are used to measure a company’s ability to meet its long term obligation. The commonly used ratios to

ascertain the solvency position of a company are Debt Equity Ratio and Interest Coverage Ratio. Debt/Equity Ratio: The ratio gives the proportion of debt and equity in the total capital structure. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. Maruti on the other hand has a low Debt Equity Ratio only 9% i.e the company primarily uses its profits and reserves to find its assets. Interest Coverage Ratio: A ratio used to determine how easily a company can pay interest on outstanding debt. The ratio is calculated by dividing a company’s earning before interest and taxes (PBIT) of one period by the company’s interest expenses of the same period. PBIT/Sale: The lower the ratio, the more the company is burdened by debt expense. When a company’s interest coverage ratio is 1.5 or lower, its ability to meet interest expenses may be questionable. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses. TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations. However, its ICR is much less as compared to its competitors. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Maruti Udyog. Consequently its debt obligation is also higher than the other tow. SOLVENCY RATIO GRAPHICAL ANALYSIS: PROFIT MARGIN RATIO: This ratio measure how much out of every rupee of sales a company keeps as earnings. The two PBIT It is interesting to Operating Profit determinants of profit margin are note here that while TATA Motors has a higher operating profit margin of 12% as compared to M&M’s 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%. This implies that a large portion of TATA’s profit are from its operations while M&M has a considerable amount of non operating income. Maruti has the highest profitability among the three companies indicating that it has been most successful in controlling its costs. Rate of ROTA: ROTA is an indicator of how profitable a company isReturn Ratios relative to its total assets. ROTA given an idea as to how efficient management ROCE: It indicated the efficiencyis at using its assets to generate earnings. and profitability of a company’s capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders’ earnings PROFITABILITY RATIO GRAPHICAL ANALYSIS: Inferences about the companies: ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. It implies that there is potential in the industry that is not being fully exploited by TATA Motors. There is still considerable scope for the company to increase its profits by effectively utilization its assets. MARKET POSITION: PE ratio and MV/BV is lowest among the three companies for TATA Motors, despite the fact that its earnings and book value is higher than M&M. The reason as to why these ratios are low is clearly its low market value as competitors. The MV/BV Ratio for M&M is 5.2 which is much higher than TATA’s 3.73 despite the fact that M&M’s BV per share is Rs. 148.11 which is lower than TATA Motors’s BV of Rs. 198.66 per share. RESULT/ CONCLUSION: A detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity position, however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations. However, its

ICR is much less as compared to its competitors. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Maruti Udyog TATA Motors has a higher operating profit margin of 12% as compared to M&M’s 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%. ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. It implies that there is potential in the industry that is not being fully exploited by TATA Motors. Customer Satisfaction Survey of TATA Motors ROLE OF THE SALES PERSON • • • • • • • • • • • He should be neatly dressed He should have knowledge about various product’s Features Variants Colors Prices Sales promotion campaigns Competitor products, their features, prices, etc. Latest service and warranty policies Current availability Carry copy of ready reckoner “Do not leave the customer unattended for more than 3 minutes” CUSTOMER CARE TEAM: Role of the Customer Care Manager: Customer Care Manager is the leader of the customer care team. He is accountable for the sales satisfaction index of the dealership. The customer care manager ensures that every customer is properly followed up and feedback is recorded. Also the customer complaints are recorded and resolved as soon as possible to the level of satisfaction. The customer care executives report to the customer care manager. Customer Care Executive:Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at the showroom Post sales follow up. • • PSF’s are done in order to get the first hand feedback from the customer about the experience that they had during the sales and delivery process. The first PSF is done within the 72 hours of delivery and the voice or exact wordings of the customer are recorded. The next PSF call is made after 15 days after the vehicle is delivered. The feedback form system is a very important tool to obtain customer’s feedback on the experience that the customer had during the purchase of his/her car. Steps to be followed after receiving customer complaint: • • • • • • Firstly customer acre manager gives a control number to all complaints received and records the same in the customer complaints control register. Then customer acre manager gets in touch with the customer over the phone and expresses regret on the inconvenience faced by the customer Immediate action is taken to ensure that the customer complaint is resolved and writes a letter of apology The customer care manager along with the concerned DSE, then visits the customer, hands over the letter and takes satisfaction note from the customer Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd. And also files a copy of the same in the customer complaints register/file. Then the CCM discusses the customer complaints in the weekly meeting with the general manager on SSI with the entire showroom staff. Necessary counter measures are taken to ensure that such complaints are not repeated in future. All sales staff and managers review customer care activities on daily, weekly and monthly basis. The SSI review meet is conducted regularly. According to TATA Motors “A customer is the most important visitor on our premises He is not dependent on us, We are dependent on him, He is not an interruption on our work, He is the purpose of it. He is not an outsider on our business, He is part of it. We are not doing him a favor serving him, He is doing us a favor by giving us the Opportunity to do so” How Your body language 7% 35% 58% Your voice Your words you communicate? Moments of truth Expectation---------------satisfaction---------------------reality If you get what you expected Expectation---------------dissatisfaction----------------reality If you get less than you expected Expectation---------------delight--------------------------reality If you get more than you expected When customers don’t complain they go somewhere else………. Customers don’t complain. They pass on their dissatisfaction to their colleagues, family, greengrocer, suppliers, consultants, managers, sports club,

grandparents, neighbors, director, to you……. QUESTIONNAIRE ANALYSIS Q1. How long have you been associated with Tata Motors From 1 year From 1 – 3 years From 3 – 5 years From 5 – 10 years Above 7 years No. of Respondents 0 0 0 80 20 Percentage 0% 0% 0% 80% 20% Q2. (i) Knowledgeable Salesperson Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 90 80 70 60 50 40 30 20 10 0 No. of Respondents Percentage No. of Respondents 0 0 0 86 14 Percentage 0% 0% 0% 86% 14% Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. Q2 (ii). Employees spent enough time with you before sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 0 64 36 Percentage 0% 0% 0% 64% 36% Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 80 60 40 20 0 No. of Respondents 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. Q2 (ii). Employees spent enough time with you during sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 70 60 50 40 30 20 10 0 No. of Respondents Strongly Agree Neither Disagree Nor Agree Agree Strongly Disagree Disagree No. of Respondents 0 4 0 62 34 Percentage 0% 4% 0% 62% 34% 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this. Q2 (ii). Employees spent enough time with you after sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 22 0 54 26 Percentage 0% 22% 0% 54% 26% 60 50 40 30 20 10 0 No. of Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. Q2 (iii). Display of Merchandize Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 0 94 6 Percentage 0% 0% 0% 94% 6% 100 80 60 40 20 0 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. Q2 (iv). Availability of the Product Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 100 80 60 40 20 0 No. of Respondents Neither Disagree Nor Agree Agree Strongly Agree No. Of Respondents 0 4 0 91 5 Percentage 0% 4% 0% 91% 5% Strongly Disagree Disagree 91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this. Q2 (v). Variety/Selection of Merchandize Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 6 0 87 7 Percentage 0% 6% 0% 87% 7% 90 80 70 60 50 40 30 20 10 0 No. of Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. Q.2 (vi) Vehicle in Good Condition Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 90 80 70 60 50 40 30 20 10 0 No. of Respondents No. of Respondents 0 2 0 82 16 Percentage 0% 2% 0% 82% 16% Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this. Q2 (vii). Prices Are Affordable Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 12 15 21 52 Percentage 0% 12% 15% 21% 52% 60 50 40 30 20 10 0 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 64% strongly

agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this. Q2 (viii). Attractive Discounts Offered Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 60 50 40 30 20 10 0 No. of Respondents Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 26 0 47 27 Percentage 0% 26% 0% 47% 27% Strongly Disagree 55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive. Q2 (ix). Décor Of The Waiting Area Is Pleasing Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 0 80 20 Percentage 0% 0% 0% 80% 20% 80 60 40 20 0 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing Q2 (x). Offered A Test Drive Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 20 0 74 6 Percentage 0% 20% 0% 74% 6% 80 70 60 50 40 30 20 10 0 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 74%agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. Q2 (xi). Post Sales Follow Up Done Regularly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 15 0 59 26 Percentage 0% 15% 0% 59% 26% 60 50 40 30 20 10 0 No. of Percentage Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 59%agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this. Q2 (xii). Responds To complaints Quickly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 9 12 61 18 Percentage 0% 9% 12% 61% 18% 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this. 70 60 50 40 30 20 10 0 No. of Respondents Neither Disagree Nor Agree Agree Strongly Agree Strongly Disagree Disagree Q2 (xiii). Service At TATA Service Station Is Excellent Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 100 80 60 40 20 0 No. of Respondents Percentage Strongly Agree Strongly Disagree Disagree Neither Disagree Nor Agree Agree No. of Respondents 0 4 0 82 14 Percentage 0% 4% 0% 82% 14% 82% said that the service at TATA service station is excellent, 14% strongly agreed while only 4% disagreed with this. Q2 (xiv). Careful With Personal Information Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 8 85 7 Percentage 0% 0% 8% 85% 7% 90 80 70 60 50 40 30 20 10 0 No. of Percentage Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. Q2 (xv). All The Commitments Are Fulfilled Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 7 0 6 87 Percentage 0% 7% 0% 6% 87% 100 80 60 40 20 0 No. of Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 94% strongly agreed that all the commitments were fulfilled and 6% agreed with this. Q2 (xvi). Value For Money Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 100 80 60 40 20 0 No. of Respondents Percentage Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 0 2 98 Percentage 0% 0% 0% 2% 98% Strongly Disagree 98% strongly agreed that TATA provides value for money while 2% agreed with this. Q3 (i). Are you aware of the following facilities provided by TATA? TATA insurance Yes No No. of Respondents 98 2 Percentage 98% 2% 98% said yes that they are aware about TATA insurance while only 2% said that they were not aware. Q3 (ii). Extended warranty

Yes No No. of Respondents 97 3 Percentage 97% 3% 97% said they were aware about extended warranty and 3% said that they did not know about this. Q3 (iii). True value Yes No No. of Respondents 98 2 Percentage 98% 2% 98% said they were aware about true value and 2% said they were not aware. Q3 (iv). TATA Motors finance Yes No No. of Respondents 75 25 Percentage 75% 25% 75% said that they were aware about TATA Motors finance and 25% said that they were not aware of it. Q3 (v). Autocard Yes No No. of Respondents 84 16 Percentage 84% 16% 84% said that they were aware about autocard and 16% said that they were not aware of it. Q3 (vi). Genuine Accessories Yes No No. of Respondents 85 15 Percentage 85% 15% 85% said that they were aware of genuine accessories available and 15% said they were not aware. Q4. What is your overall opinion about TATA? Choice Very bad Bad Neither bad nor good Good Very good No. of Respondents 0 0 0 4 96 Percentage 0% 0% 0% 4% 96% 100 80 60 40 20 0 No. of Respondents Very bad Bad Neither bad nor good Good Very good 96% said that there overall opinion about TATA was that it is very good while 4% said that it is good. Q 5. How likely would you recommend TATA? Recommend Very Unlikely Unlikely Neither Unlikely nor likely Likely Very Likely No. of Respondents 0 0 0 10 90 Percentage 0% 0% 0% 10% 90% 90% people said they would very likely recommend TATA to other people and 10% said they would likely recommend TATA to others. CONCLUSION On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the people’s car as it is satisfactory on all other parameters: knowledgeable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, décor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good. 86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this. 60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. 91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this. 87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. 82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this. 64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this. 55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive. 80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing 74% agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. 59%

agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this. 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this. 82% said that the service at TATA service station is excellent, 14% strongly agreed while only 4% disagreed with this. 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agreed that all the commitments were fulfilled and 6% agreed with this. 98% said yes that they are aware about TATA insurance while only 2% said that they were Increase the profit margin during the continuousnot aware. SUGGESTIONS Analysis the business Improving the marketing Strategies. financial years. Making the decision to capture the rural market. strategies of competitors. Should be more particular about Post SalesMore test drives should be offered. Should putFollow Up as it shows the concern of the company with the customer. in more efforts to promote Tata Motor Finance, Autocard and Accessories. Questionnaire Being an esteem customer of TATA Motors Ltd. you are requested to take out a few minutes and fill the following QUESTIONNAIRE: Name: …………………………………………………………… Address: _______________________________________________________________ _______________________________________________________________ ___________________________________________ Pin Code____________ Gender: Male Age: Below18 18-25 26-35 36-50 51 and above Female Occupation: Service Business Student Housewife Q.1) How long have you been associated with TATA Motors? _______________________________________________________________________ Q.2.) How would you rate TATA Motors on the following parameter? Strongly Disagree disagree i) ii) Knowledgeable sales person Employees spent enough time with you: before sales During sales After sales Display of merchandise is attractive Availability of the product Variety/selection of merchandise Vehicle in good condition Prices are affordable Neither agree Nor disagree agree Strongly agree iii) iv) v) vi) vii) viii ) ix) Attractive discounts offered Décor of the waiting area is pleasing x) Offered a test drive xi) Post sales follow ups are done regularly xii) Responds to complaints quickly xii) Service at Maruti service station is excellent xvi) Careful with personal information xv) All the commitments are fulfilled xvi) Value for money Q.3) Are you aware of the following facilities provided by Tata Motors? i) ii) iii) iv) v) vi) FACILITIES Tata Motors insurance Extended warranty True value Tata finance Autocard Genuine accessories Yes No Q.4) What is your overall opinion about Tata Motors? Very Bad 1 Bad 2 Neither Bad nor Good 3 Good 4 Very Good 5 Q.5) How likely would you recommend Tata Motors? Very Unlikely 1 Very Likely 5 2 3 4 Date Sign. ANNEXURE Summarized Balance Sheet In Millions of INR (except for per share items) Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable - Trade, Net Receivables - Other Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total Gross Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Total Assets Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock, Total Preferred Stock - Non Redeemable, Net Common Stock, Total Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Treasury Stock - Common Other Equity, Total Total Equity Total Liabilities & Shareholders' Equity Shares Outs - Common Stock Primary Issue Total Common Shares Outstanding As of 2009-03-31 52.00 786.00 12,180.60 52,422.20 52,422.20 34,340.20 1,137.20

24,440.40 124,520.60 150,721.20 6,968.50 3,114.10 50,390.00 32,459.80 369,279.30 55,061.30 14,595.00 95,462.30 14,970.70 3,909.30 183,998.60 58,792.80 58,792.80 169,225.80 6,119.90 5,634.80 9,469.10 264,015.20 3,855.40 39,778.60 43,718.70 17,911.40 105,264.10 369,279.30 385.49 As of 2008-03-31 65.30 2,762.80 10,415.30 47,692.10 47,692.10 33,923.10 862.50 21,040.80 113,933.80 109,262.50 7,239.10 2,990.00 22,358.90 5,638.40 271,015.40 45,474.00 8,323.70 57,752.60 5,757.50 3,470.70 120,778.50 40,235.10 40,235.10 103,745.20 5,983.60 4,054.10 8,595.20 179,646.50 3,854.10 39,711.00 36,326.80 11,477.00 91,368.90 271,015.40 385.36 As of 2007-03-31 76.50 8,067.80 14,383.70 34,709.60 34,709.60 26,303.60 467.70 14,223.30 90,087.90 86,228.30 7,034.10 2,355.10 24,133.60 4,442.20 202,158.20 30,316.30 7,437.50 37,475.10 1,465.30 4,198.80 80,893.00 27,203.30 27,203.30 66,143.70 6,135.20 3,303.80 3,607.10 121,142.40 3,828.70 38,773.60 23,897.00 14,516.50 81,015.80 202,158.20 382.82 As of 2006-03-31 4,873.30 26,982.80 31,856.10 18,359.40 18,359.40 21,353.60 391.90 11,618.70 83,579.70 74,415.30 289.90 606.40 21,103.80 1,364.00 159,245.40 24,659.90 7,115.80 30,697.50 1,108.50 4,105.70 67,687.40 25,632.70 25,632.70 57,438.70 5,390.90 2,330.90 1,794.30 102,836.20 3,617.90 28,143.30 14,033.90 10,614.10 56,409.20 159,245.40 361.74 Profit And Loss Account (Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalized Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr Mar 08(12) 32,885. 03 4,355.6 3 28,529. 40 972.93 -40.48 29,461 .85 20,190. 19 325.19 1,534.4 1 1,847.4 3 1,442.9 1 1,598.7 3 1,131.4 0 25,807. 46 3,654.3 9 425.61 3,228.7 8 652.31 2,576.4 7 139.01 401.54 2,028.9 2 149.49 1,879.4 3 0 1,013.8 3 0 1,659.6 8 1,383.0 7 578.43 0 150 50.52 202.68 Mar 07(12) 31,611. 21 4,425.4 4 27,185. 77 574.11 349.68 28,109 .56 19,374. 93 327.41 1,361.2 0 1,618.6 8 1,322.8 8 1,153.5 3 577.05 24,581. 58 3,527.9 8 368.51 3,159.4 7 586.29 2,573.1 8 476 177.22 1,913.4 6 37.4 1,876.0 6 0 776.76 0 1,676.3 9 1,013.8 3 578.07 0 150 47.1 177.57 Mar 06(12) 23,673. 43 3,380.1 3 20,293. 30 693.92 256.91 21,244 .13 14,263. 86 258.51 1,141.4 8 1,251.0 2 985.74 784.56 308.85 18,376. 32 2,867.8 1 293.49 2,574.3 2 520.94 2,053.3 8 363.35 142.15 1,528.8 8 145.42 1,383.4 6 0 585.6 0 1,337.7 2 776.76 497.94 19.94 130 37.59 143.93 Mar 05(12) 20,152. 03 3,063.4 4 17,088. 59 560.29 144 17,792 .88 11,929. 48 237.81 1,037.9 3 1,017.1 1 795.03 673.78 218.13 15,473. 01 2,319.8 7 217.81 2,102.0 6 450.16 1,651.9 0 363.82 51.13 1,236.9 5 24.77 1,212.1 8 0 365.8 0 1,017.1 5 585.6 452.19 0 125 32.44 113.64 Mar 04(12) 15,165. 85 2,270.3 0 12,895. 55 427.79 -141.98 13,181 .36 8,341.3 9 214.52 879.49 722.95 645.73 644.75 144.89 11,303. 94 1,877.4 2 202.48 1,674.9 4 382.6 1,292.3 4 96 386 810.34 -29.95 840.29 0 123.71 0 568.25 365.8 282.11 0 80 21.93 101.69 Mar 03(12) 10,585. 43 1,743.7 9 8,841.6 4 323.65 119.74 9,285. 03 5,699.5 8 193.51 720.37 510.39 606.25 529.6 156.46 8,103.2 4 1,181.7 9 309.29 872.5 362.13 510.37 19.71 190.55 300.11 4.94 295.17 0 0 0 176.4 123.71 127.91 0 40 8.87 81.2 Cash Flow of Tata Motors ------------ in Rs. Cr. -------- Mar '05 Mar '06 12 mths 12 mths Mar '07 12 mths Mar '08 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increas e In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 1236. 95 1249. 82 -956.5 7 940.6 7 1233. 92 771.1 2 2005. 04 1528.88 -221.03 -1.06 1913.46

2210.13 -2805.10 2028.92 6174.50 -5721.86 -855.27 -1077.36 303.58 -291.39 1132.46 1585.10 2196.79 1119.43 1118.15 826.76 806.21 2391.31 BIBLIOGRAPHY BIBLIOGRAPHY Books: 1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition) 2. Marketing Management, The McGraw.Hill Company Rajan Saxena (Third Edition) 3. Berman, Berry and Joel r Evans (Oct- 1997) Retail Management: A strategic approach 8th edition Englewood cliffs NJ printcehall 4. Country analysis 1997 “ A framework to identify and evaluate the national business environment” Hardward business review. MAGAZINES: A) OUTLOOK BUSINESS (FEB, 2009) B) BUSINESS STANDARD (April-July 2009) C) 4P’S OF BUSINESS AND MARKETING (June 2009) D) BUSINESS TODAY - Pick and Choose E) BUSINESS TODAY - Tata Motors to bring Jaguar, Land Rover to India INTERNET: 1. Tata Motors' Official Website 2. Wiki - Tata Motors Ltd 3. http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car 4. http://www.capitaline.com 5. http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull 6. http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull 7. http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow 8. htttp://www.moneycontrol/com/tata

ACKNOWLEDGEMENT

In order to make my project I acknowledge a special thanks to all those people without whose supports it would not be possible for me to complete for me to complete my report. First of all I really thankful to my Lovely Professional University because of them I could achieve the target. I express my sincere thanks to my project guide Miss. SukhwinderArora who had guide to me throughout my project.I would also thankful to theSatluj Motors (TATA MOTORS Dealership) for giving me this opportunity to work on project inMandi (H.P). I convey my heart full thanks to the Mr. Bhopal Singh Jamwal (Admin. Manager)and the staff members of Satluj Motors, withtheir help and corporation. Also I would like to express my inner feeling for all the people for co-operating and

helping me throughout the project. Last but not the least I am thankful to my parents and friends who have provided me with their constant support throughout this project.

Arun KumarGuleriaARUN GULERIA

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