ACKNOWLEDGEMENT

I the student of NAGINDAS KHANDWALA COLLEGE OF

COMMERCE, have a great pleasure in presenting my efforts of developing a

complete project in a very satisfactory and appreciable manner. My effort has

been a success due to the co-operation of the entire department without which

the project of this magnitude given restrictions of time could not have been

possible. I owe a depth of gratitude to my project guide PROF V.G SUCAHK

without his help, expert guidance and invaluable Co-operation; this project

would not have been possible. I am greatly thankful to my honorable Principle

and the management for providing the facilities to complete the project.

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TABLE OF CONTENT

Introduction.

History.

Objectives.

Summary

Values and purposes

List of major manufacturer.

strategies

Company profile.

Analysis.

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Introduction:

Established in 1945 by jamsheddji Tata .

In 1945 company began with manufacturing of locomotives.

Formally it was known as ‘TELCO’.

Now M.R Ratan Tata is chairman of tata Motors.

It is a multinational corporation, head quatered in Mumbai.

It is india’s largest company in automobile and commertial vehicle.

Tata motors ranked 19th largest automaker in world.

It ranked 2nd largest manufacturer of commercial vehicle.

It have 70% market share in domestic commercial vehicle.

It has auto manufacturing and assembling plants in Jamshedpur.

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Tata Motors Limited formerly TELCO, (NSE: TATAMOTORS, BSE:

500570, NYSE: TTM) is an Indian multinational automotive manufacturing

company headquartered in Mumbai, India and a subsidiary of the Tata Group.

Its products include passenger cars, trucks, vans and coaches. It is the world's

eighteenth-largest motor vehicle manufacturing company, fourth-largest truck

manufacturer and second-largest bus manufacturer by volume.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur,

Pantnagar, Lucknow, Sanand, Dharwad and Pune, India, as well as in

Argentina, South Africa, Thailand and the United Kingdom. Tata Motors has

produced and sold over 6.5 million vehicles in India since 1954

History:

Tata entered the commercial vehicle sector in 1954 after forming a joint venture

with Daimler-Benz of Germany. 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

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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 Indian passenger car.

Although initially criticised by auto-analysts, its excellent fuel economy,

powerful engine and an 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-favorite. Tata Motors also successfully exported

large quantities of the car to South Africa. The success of Indica played a key

role in the growth of Tata Motors.

In 2004 Tata Motors acquired Daewoo's South Korea-based truck

manufacturing unit, Daewoo Commercial Vehicles Company, later renamed

Tata Daewoo.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and

coach manufacturer Hispano Carrocera.[9] Tata Motors continued its market area

expansion through the introduction of new products such as buses

(Starbus&Globus, jointly developed with subsidiary Hispano Carrocera) and

trucks (Novus, jointly developed with subsidiary Tata Daewoo).

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

Marcopolo Bus, to manufacture fully built buses and coaches.

In 2008, Tata Motors acquired the British car maker Jaguar Land Rover,

manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from

Ford Motor Company.[11][12][13][14]

In May 2009 Tata unveiled the Tata World Truck range jointly developed with

Tata Daewoo. Debuting in South Korea, South Africa, the SAARC countries

and the Middle-East by the end of 2009.

Tata acquired full ownership of Hispano Carrocera in 2009

In 2010, Tata Motors acquired an 80% stake in the Italy-based design and

engineering company Trilix for a consideration of €1.85 million. The

acquisition formed part of the company's plan to enhance its styling and design

capabilities.

In 2012, Tata Motors announced it will invest around Rs 600 crore on

developing Futuristic Infantry Combat Vehicles in colloboration with DRDO

Objectives

Profit only...The Goal of Tata Motors is to provide good and efficient car with all people at

reasonable price...2 sold out theirs nano cars in alloverindia....Tata Motors, is a Company

that cares in 2004, Tata Motors is exploring possibilities for selling not only medium and

heavy trucks and buses but also passenger cars in Russia."Russia and Ukraine are a priority

goal for Tata Motors.

Tata Motors, a Company that cares about the future... True to the tradition of the Tata

Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility as

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well as economical interests of thiershare holders who have invested in Tata brand....to take

more share ofthemarket...struggling initially to project their aim and adheraing finally to

others views in taking decision.

EXECUTIVE SUMMARY

As India celebrates its 50 years of independence, the passenger car industry celebrated a

centenary of its existence in India in 1998. Despite this head start, the industry has never

quite matched up to the performance of its counterparts in other parts of the world. The all-

pervasive atmosphere created by the government's license raj was primarily responsible for

this situation. The various layers of Acts sheltered the industry from external competition and

smothered the development of the Indian automobile industry. Moreover, the industry was

considered low priority as cars were considered to be an "unaffordable luxury." Hence in the

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first part of the project I have taken up the strategic group analysis of TELCO as this is one

company whose indigenously manufactured cars like Tata mobile, Indica and Safari

haveperformed well on Indian Roads. In the second part of the project I conducted a study on

the consumer perception about small cars. Firstly, I took three brands of small cars; Zen,

Indica and Santro for a comparative study of small car segment.

Later I went through the process of filling the questionnaires, to know exactly what the

customer’s of small cars perceived about their cars. A sample size of sixty respondents was

taken. Sample unit was a customer who owned a small car. Secondary data from various

sources like magazines, journals etc was also collected. The findings showed that the

consumer’s who owned small cars basically wanted good, after sales service and a car at their

budget, a less expensive one.

All the cars taken for the sample showed that the consumers perceived them as almost same

in all the attributes like safety, comfort and luxury. Respondents liked Indica more for its

looks, whereas Marti’s after sales service was perceived to be good. But, at the end the

research was limited due to small sample size, small sample area and time constraints.

Values and purposes

PurposeAt the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for

leadership and global competitiveness in the business sectors in which we operate.

Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the

community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct

our business.

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Core valuesTata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five

core Tata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the

test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers

around the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the

quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the group and with our customers and partners around

the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in

which we work, always ensuring that what comes from the people goes back to the people many times o

AUTOMOBILE SECTOR IN INDIA

Following India's growing openness, the arrival of new and existing models, easy availability

of finance at relatively low rate of interest and price discounts offered by the dealers and

manufacturers all have stirred the demand for vehicles and a strong growth of the Indian

automobile industry. The data obtained from ministry of commerce and industry, shows

high growth obtained since 2005- 06 in automobile production continuing in the first three

quarters of the 2005-06. Annual growth was 16.0 per cent in April-December, 2006; the

growth rate in 2004-05 was 15.1 per cent

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The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent

between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the

automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-

component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in

2004-05, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2005-06.

AUTOMOBILE DEALERS NETWORK IN INDIA

In terms of Car dealer networks and authorized service stations, Maruti leads the pack with

Dealer networks and workshops across the country. The other leading automobile

manufactures are also trying to cope up and are opening their service stations and dealer

workshops in all the metros and major cities of the country. Dealers offer varying kind of

discount of finances who in tern pass it on to the customers in the form of reduced interest

rates.

MAJOR MANUFACTURERS IN AUTOMOBILE INDUSTRY

MarutiUdyog Ltd.

General Motors India

Ford India Ltd.

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

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Hindustan Motors

Hyundai Motor India Ltd.

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

Government has liberalized the norms for foreign investment and import of technology and

that appears to have benefited the automobile sector. The production of total vehicles

increased from 4.2 million in 1998- 99 to 7.3 million in 2005-06. It is likely that the

production of such vehicles will exceed 10 million in the next couple of years. The industry

has adopted the global standards and this was manifested in the increasing exports of the

sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust

growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and-

ahalftimes the export figure for 2001-02.

Operations

Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea,

Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia and

Eastern Europe.

Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata

Hispano.

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Tata Motors Cars

Main article:

The Tata Prima

Tata Motors is among the top tree in passenger vehicles in India with products in the

compact, midsize car and utility vehicle segments.] The company’s manufacturing base in

India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar

Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The company is establishing a

new plant at Sanand (Gujarat). Tata's dealership, sales, service and spare parts network

comprises over 3500 touch points.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,

Russia and Senegal.[20] Tata has dealerships in 26 countries across 4 continents. Though Tata

is present in many countries it has only managed to create a large consumer base in the Indian

Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing

consumer base in Italy, Spain and South Africa.

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4

Union Territories of India.] It has the 3rd largest Sales and Service Network after Maruti

Suzuki and Hyundai

Tata Technologies

Tata Technologies Limited (TTL) provides engineering and design services to the automotive

industry. Tata Motors holds 86.91% of TTL’s share capital. TTL is based in Pune

(Hinjawadi) and operates in the United States and Europe through its wholly owned

subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata

Technologies is a software service provider in the IT services and BPO space. Its global

client list includes Ford, General Motors, Toyota and Honda. TTL acquired the British

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engineering and design services company Incat International Plc for 4 billion in August

2005. Incat specializes in engineering and design services and product lifecycle management

in the international automotive, aerospace and engineering markets.

Tata businesses;

Tata companies operate in seven business sectors. This section details the companies and the

business sectors they belong to, the products and services they offer, an overall roster of all

Tata companies, and the mergers and acquisitions that Tata enterprises have been involved in

since 2000

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Business sector;

Tata companies operate in seven different business sectors: information systems and communications, engineering,

materials, services, energy, consumer products and chemicals

Information technology and communications

The Tata group has well-established enterprises in the fields of software and other information systems,

telecommunications and industrial automation.

Engineering products and services

The Tata group has a robust presence in engineering, with operations in automobiles and auto components and a

variety of other engineering products and services.

Tata commitments

The term corporate sustainability is of relatively recent vintage. Not so the philosophy

of social responsibility that underlines the Tata way of conducting its businesses. The

multitude of social development and environment initiatives Tata has nurtured from

its earliest days flows from a wellspring of voluntary, as opposed to obligatory,

commitment

Tata Council for Community Initiatives

The Tata Council for Community Initiatives (TCCI) is a unique initiative that lends structure to the Tata group's approach of

sustainable development while driving its community engagement and improvement programmes.

Company initiatives

The Tata tradition in community development has, since the earliest days of the group's history, been defined by its core

values. It never was charity for its own sake or, as group Founder Jamsetji Tata put it, "patchwork philanthropy"

Climate change;

The Tata group is facing up to the challenge of climate change and making it integral to its processes. Coordinating and

directing the climate change efforts of the group's companies are some of the senior-most Tata leaders

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COMPANY PROFILE

Tata motors one of India's largest private sector companies with a turnover of over Rs 80

billion, is the country's leading commercial vehicle manufacturer and has significant presence

in the multi-utility and passenger car segments. Tata motors were established on September

1, 1945, originally for the manufacture of Steam Locomotives at Jamshedpur. By 1954, the

company had diversified into the manufacture of commercial vehicles in collaboration with

Daimler Benz, Germany. By the time their collaboration ended in 1969, Tata motors had

become an independent producer of Medium Commercial Vehicles with a great degree of

indigenization. It had also developed the capability of designing, testing and manufacturing

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such vehicles. The widely successful Tata Indica, an Euro 2 compliant vehicle, is the

country’s first indigenously designed, developed and manufactured passenger car. Tata

Motors followed that up with the Tata Indigo, a sedan that was launched in December 2002.

The company also makes several other passengers vehicles, including the Safari, Sumo and

Sierra.The company’s products have received wide acceptance not only in India but also in

the Middle East, Asia, Africa, Australia, Latin America and Europe.

Strategies

1. HR strategy:

Caring,,show,respect,,,compassion and humanity for colleagues.

Work cohesively with colleagues across the group.

Encourage self sufficiency.

Hiring practices.

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Providing various offers to employees.

No salary cuts and increase in resources and development.

2. Operational strategy:

Reducing number of shifts.

Quality management- quality management is crucial to effective

operational management. Most recent advancement is quality, such

as bench marking and total quality management have resulted in

advancement to operations management as well.

Inventory management- innovative methods such as Just in time

inventory control, can save cost.

More products and more services can be offered to customer more

quickly.

3. Marketing strategy;

Advertising - advertising is the most common way to make public

aware of the new product.

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Besides, advertising also helps to create a brand image. Over the

years, tata motors have been successful in creating a brand image

for itself and also especially they select some famous stars a stheir

spokesperson.

Pricing – the price policy of tata motors is always appreciated by

the public.

Tata motors make use of strategies such as discount and special

promotions every now and then.

It gives discount based on the company’s profit or from dealers

profit at a certain ranges.

4. Distribution strategy;

Tata motors business has been extended to the overseas i.e

Europe,Africa, U.S, Australia. Hence it has no show rooms in india

and outside of india.

The exclusive shoe rooms are the best distribution channels for tata

itself.

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Sales promotion- tata motors have felt its presence across india and

abroad with its showrooms

Branding- in case of tata motors the branding strategy used is

corporate name assigned with individual product name and the

individual individualizers the new product.

Joint venture ;

Tata moters has formed 51:49 joint venture in bus body with MARCOPOLO

of brazil.

It has also formed a venture with Fiat and gained access to FIAT diesel

engine technology.

Joint venture with jaguar and Range Rover.

Present and future challenges :

Tata relies heavily on its sales in india.

.competitons has aggressive launches.

Joint ventures of competitors.

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VOLVO group and Eicher Motors joint venture.

Ashok leylands’s acquisition with Avia.

The joint venture between Ashok Leyland and NISSAN motors.

Areas of business

The company manufactures medium, heavy and light commercial vehicles, multi-utility

vehicles and passenger cars. In the year ending March 2001, the company’s revenues from its

four manufacturing plants at three locations in India were Rs. 81.64 billion (US $ 1.73

billion). In 2000, they were Rs. 89.61 billion. (US $ 1.9 billion) {The average exchange rate

has been taken as Rs 47.0 to one US dollar.}

In the year ended 31 March 2001, the company’s total exports were worth about Rs 7.22

billion (US $ 153.6 million), against about Rs 6.09 billion (US $ 129.5 million) in the

previous year.

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Locations

The company’s manufacturing plants in India are at Jamshedpur, Pimpri and Chinchwad near

Pune in Maharashtra, and Lucknow in Uttar Pradesh. Land has been acquired at

Dharwad(Karnataka) to build a fifth plant.

Collaborations

The company has technical tie-ups with:

The Institute of Development in Automotive Engineering (IDEA), S.P.A., Italy, for

assistance in small car body design and styling;

Le MoteurModerne, France, for the development of diesel and petrol engines for

passenger cars.

ANALYSIS

Tata Motors is highest selling car company in India and is the four wheeler manufacturer in the world. As the case is every company has it strengths and weaknesses and Tata Motors is no Exception: -

STRENGTHS

Market Leader in terms of sales and turnover

. A wide network of dealers across the nation

. A wide network of authorized service stations at different parts of the country

. A wide variety of product portfolio

. Very strong brand image of making fuel efficient and reliable cars

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High product and brand recall among the customers infect Tata is the

first choice among the majority customers.

Tata Motors has already established its brand in the automobile segment

in India and other International markets. It is now the leader in this

industry with majority of market share.

Tata Motors produces low cost, fuel efficient vehicles in India. It has

targeted normal middle class person who is feasible to buy a car for his

family. It has launched Tata Indica, a passenger car in 1998 which

became the largest selling car in the segment 2 years after its launch.

Tata Motors has spread widely across the country. With 3500 touch

points, the company has easy and fast access to its network of dealers,

sales, services and spare parts in almost every areas.

The human resource of Tata Motors is very strong with around 24000

employees.

Tata Motors has its own manufacturing plants in India.

WEAKNESS

Major weakness of Tata are

Not a strong player in the rural market

Very few models at the lineup stage

Resources and development of Tata Motors is weak

Not a Strong Player in the Premium Market

It’s a non player in scooter market which is huge even though that industry is going

through arough pace.

The rate of return on Tata Motors shares is low which in turn affects its

growth in financial terms amidst investors.

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Tata Motors is still behind the technology advancements despite having

large R&D

Department in the country. It is still producing vehicles in the old

generation platforms without any additional developments in the

engineering department. Customers expect new technologies which Tata

motors fail to meet. It also affects its competitive advantage over its

rivals.

While most of the other car manufacturers in the country has

concentrated on the luxury car segment, Tata Motors remain isolated

from luxury car market which is a disadvantage to the company.

Tata Motors fails to meet the safety and emission standard norms as

regulated by the Society of Indian Automobile Manufacturers (SIAM).

OPPORTUNITIES

It’s a growing market thus company has high growth potential in future

Premium segment is still not fully exploited with right product Tata Motors can do

wonders

Neighboring countries markets are not exploited fully

)Need to tap African and European market.

Since Tata Motors has bought one of the world's luxurious car brands

Jaguar and Landrover from Ford Motors officially in 2008 for a

whooping £2.3million(GBP), it has increased its possibility of gaining a

substantial amount of market share in the luxury car segments. These

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added acquisitions to Tata's portfolio will certainly gain competitive

advantage.

Tata Motors has launched a low cost car Nano which is targeted towards

the customers who have low purchasing power. It has also planned to

launch its Nano in other countries which is an opportunity to grow

globally.

Tata Motors can install additional safety features such as dual air bags to

increase its customer satisfaction levels.

It should focus strongly on the luxury car segments also.

Since Nano is doing well on the Indian roads and the demand is rising, the

production of Nano cars should be increased which reduces the long waitlists

for Nano

THREATS

Entry of new players

.New companies entering in the car market will pose a considerable threat

Competitors becoming aggressive with new product launches and high marketing

pitch

.AggressiveMaruti and Hyundai posses another threat

NO tie up with any other company can lead to losses

Since Tata Motors has bought one of the world's luxurious car brands

Jaguar and Landrover from Ford Motors officially in 2008 for a

whooping £2.3million(GBP), it has increased its possibility of gaining a

substantial amount of market share in the luxury car segments. These

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added acquisitions to Tata's portfolio will certainly gain competitive

advantage.

Tata Motors has launched a low cost car Nano which is targeted towards

the customers who have low purchasing power. It has also planned to

launch its Nano in other countries which is an opportunity to grow

globally.

Tata Motors can install additional safety features such as dual air bags to

increase its customer satisfaction levels.

It should focus strongly on the luxury car segments also.

Since Nano is doing well on the Indian roads and the demand is rising,

the production of Nano cars should be increased which reduces the long

waitlists for Nano.

TELCO currently has three products in its Passenger Car division namely,

15a. Tata Indica;

b. Tata Indigo

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c. Tata Safari

It is in the process of coming out with another member in the passenger car

family, the all-new Indica Sedan, set out to storm the Indian Mid-Size

Passenger car segment, which would be launched in the last quarter of 2002.

Confirming to International standards all these vehicles are available with

various features such as petrol & diesel versions, 2-wheel and 4-wheel drives

etc.

TELCO currently has three products in its Multi-Utility vehicle division namely,

a.Tata Sumo

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b.Telco Sport

c.Telco line Pickup Vans

All these vehicles come only in diesel-engine versions and are quite popular on the Indian

roads, especially on the highways and in the rural areas. They are known for their build

quality, reliability, ruggedness, and the various uses that they can be put.

They are used as people carriers, as emergency vans, goods carriers, pick-up vehicles and so

many more uses.mThe utility pick-up vans of Tata International are made for all kind of

terrains and are facilitated with features like 2 & 4 wheel drive, single & crew cabs etc.

TELCO is the undisputed leader as regards the Commercial Vehicle segment. It has a

largenumber of products in this segments classified as various types namely,

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a. Buses

- Small Buses (4 models)

- Big Buses (4 models)

b.Trucks- Light Trucks (5 models)- Medium/Heavy Trucks (9 models)

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c.Tippers (3 models)

d.Tractors (3 models)

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