66 A Project Study Report On Training Undertaken at TATA MOTERS Titled “COMPARATIVE STUDY OF OVERALL MARKET SHARE OF TATA MOTORS” Submitted in partial fulfillment for the Award of degree of Master of Business Administration Submitted By: - Submitted To:- Jaipal Tard Dr. Giriraj Kiradoo MBA III Semester Associate Professor
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66
AProject Study Report
OnTraining Undertaken at
TATA MOTERS
Titled
“COMPARATIVE STUDY OF OVERALL MARKET SHARE OF TATA MOTORS”
Submitted in partial fulfillment for theAward of degree of
Master of Business Administration
Submitted By: - Submitted To:-Jaipal Tard Dr. Giriraj KiradooMBA III Semester Associate Professor
Head :- MBA
2011-12
Engineering College, Bikaner (An Autonomous Institute of Govt. of Rajasthan)
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PREFACE
It is well evident that work experience is an indispensable part of every professional course. In the
same manner practical training management course. Without practical experience, one cannot
consider oneself as a qualified, potential & capable manager.
Hence to fulfill requirement the researcher undertook eight week training in Dunac Motors (Tata
Motors, Bikaner). Entering the organization is like stepping into an entirely new world. At first
everything seemed strange and unheard of but as time passed, the researcher understood the
concept and working of the organization there by developed a professional relationship.
The researcher sincerely believe that there is no better place to learn the practical side of
management studies then the industry itself.
Chapter one consist of introduction to the organization.
Chapter two comprises of project profile.
Chapter three includes facts and finding and analysis and interpretation.
Chapter four consists of SOWT analysis, complaints, suggestion and conclusion.
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Acknowledgement
I would like to take this opportunity to express my profound gratitude to all those who have been
concerned in preparation of this report.
I would like to thank Dr. Giriraj Kiradoo, Head, Department of Management & Technology,
Engineering College Bikaner.
I would like to thank my project guide Mr. Bhikharam Choudhary for their guidance and help.
I express special thanks to Mr. Rajesh Bishnoi (Area Sales Manager) Mr. Sanjay Bissa (Direct
Sales Manager) DUNAC MOTORS PVT. (TATA MOTORS) for giving me this opportunity to enrich
my knowledge in field of marketing.
I would like to thank Mr. Rajesh Bishnoi for helping me at every stage by providing information and
his valuable guidance.
I would like also like to thank my parents and all friends who have helped me to complete this
project successfully.
Jaipal Tard MBA III SEM
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EXECUTIVE SUMMARY
Tata motors pvt. Ltd. was established in 1945. Tata motors motto was complete satisfaction of
customer. In this organization many members are working. The main reason to open this
organization in Bikaner is that Bikaner is a developing area. Dunac motors pvt.ltd. Provide products
which are successful rural area. The project cost is 25.86 laces.
The organization provides better service for vehicle. Spare parts are also available in organization.
It also provides finance on every product.
The Dunac products are mostly goods carrying. Products are mostly hard and used by both
passengers & commercial users. Hardness and durability are the most important attribute for
purchasing the DUNAC products.
In this Research we find the overall share of Tata motors in Bikaner region as compare to Ashok
Leyland and Eicher.
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TABLE OF CONTENTS
Chapters Table of contents Page no.
Chapter-1 OVERVIEW 7
Introduction to the organization 7
Mission and awards 10
Chapter-2 STUDY PROFILE 13
Title of the study 14
Significance of the study 14
Objective of the study 14
Research methodology 18
limitations of the study 18
Chapter-3 FACTS AND FINDINGS 19
Human resource 20
Marketing 24
Feature of the products 26
Workshop and spare parts department 37
Market share of tata motors 41
Financial result 57
Chapter-4 ANALYSIS 60
SWOT analysis 60
Chapter-5 QUESTIONAIRE 61
Chapter-6 CONCLUSION 64
Chapter-7 RECOMMENDATIONS 65
Chapter-8 BIBLIOGRAPHY 66
CHAPTER-1
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OVERVIEW
1. Introduction to organization and vision2. Mission and awards
Introduction to the organization
Tata motors Limited- is India’s largest private automobile and commercial vehicle manufacturing
company. It is also the world’s 6th biggest commercial vehicle manufacture. It is part of the Tata
Group. Tata Motors is widely credited for putting India on the automotive map by designing and
developing its own range of car. Tata Motors was first back to 1945 when they stated making
Trains. Tata Motors was first listed on the NYSE in 2004. It has its manufacturing base in
Jamshedpur, Lucknow and pune. In 2004 it also bought Daewoo’s truck manufacturing unit in South
Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights
in the company. Tata Motors is a company of the Tata and Sons Group, founded by Jamsetji Tata.
It is currently headed by Ratan Tata.
Tata Motors range of passenger cars is still not comprehensive by international standards. In
commercial vehicle Tata Motors commands an imposing 65% market share in the domestic heavy
commercial market. The company is first trying to modernize its range of commercial vehicle.
Tata Motors has the unique distinction of giving India it’s first and only indigenously built passenger
car –The Tata indica and the premium feature sedan – The Tata indigo. The indigo, launched in
1998, reached the 2, 50,000 sales mark within 52 months of launch
Tata Motors is India’s only fully integrated automobile manufacture with a portfolio that trucks, buses
utility vehicle and passenger cars. It would be no exaggeration to say that Tata Motors provides the
wheels for India’s growth.
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Tata Motors is one of the largest companies in the Tata Group with a total income of US$ 2.35
billion. More than 3 billion Tata vehicles ply on Indian roads making Tata a dominant force in the
Indian automobile industry.
Tata Motors Limited is India’s largest automobile company, with revenues of Rs, 35651.48 corers
(USD 8.8 billion) in 2007-08. It is the leader in commercial vehicle in each segment, and among the
top three in passenger vehicle with winning products in the compact, midsize largest car and utility
vehicle segment. The company is the world’s fourth largest truck manufacturer, and the world’s
second largest bus manufacturer.
The company’s 23,000 employees are guided by the vision to be “best in the manner in which we
operate, best in the products we deliver, and best in our value system and ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the length and breadth of India.
Over 4 million Tata vehicle ply in Indian roads since the first rolled out in 1954. The company’s
manufacture base in India is spread across Jamshedpur (jharkhand), Pune (Maharashtra), Lucknow
(uttar Pradesh) and pantnafar (Uttarakhan. Following a strategic alliance with fiat in 2005. It has set
up an industrial joint venture with fiat group automobile at Ranjangon (Maharashtra) to produce both
fiat and Tata cars and fiat power trains. The company is establishing two new plant at dharwad
(Karnataka) and Sanand (Gujarat). The company’s dealership, sales, services and spare parts
network comprise over 3500 touch points; Tata Motors also distributors and markets fiat branded
cars in India.
Tata motors, the first company from India’s engineering sector to be listed in the New York stock
exchange (September 2004) has also emerged as an international automobile company. Through
subsidiaries and associate companies Tata motors has operation in the UK, South Korea, Thailand
and Spain. Among them is jaguar Land Rover, business comprising the two lconic British brands
that was acquired in 2008.In 2004 it acquired the Daewoo commercial Vehicle company, south
Korea’s second largest truck maker. The rechristened Tata Daewoo commercial vehicle company
has launched several new products in the Korean market, while also sporting these products to
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several international markets. Today two-thirds of heavy commercial vehicle export out of South
Korea is from Tata Daewoo. In 2005, Tata motors acquired a 21% stake in Hispano carrocera, a
reputed Spanish bus and couch manufacture, with an option to acquire the reaming stake as well.
Hispano’s presence is being expanded in the other market.
In 2006, it formed a joint venture with the Brazil-based Marco polo, a leader in body-building
for buses and coaches to manufacture fully built buses and coaches for India and select
international markets. IN 2006, Tata Motors entered into joint venture with Thonburi
Automotive Assembly Plant company if Thailand to manufacture and market the company’s
pickup vehicle in Thailand. The new plant of Tata motors (Thailand) has begun production of
the Xenon pickup truck, with Xenon having been launched in Thailand at the Bangkok Motor
show 2008.
Tata motors are also expanding its international footprint, established through export since 1961.
The company’s commercial and passenger vehicle are already being marketed in several countries
in Europe, Africa the Middle East, south East Asia and South America. It has franchisee/joint
venture assembly operation in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company’s growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them in to customer-desired
offering through leading edge R&D. With over 2,500 engineers and scientist, the company’s
Engineering Research Centers, established in 1966, has enable pioneering technologies and
products. The company today has R&D centers in Pune, Jamshedpur, and Lucknow, in India, and
in South Korea, Spain, and the UK. It was Tata motors, which developed the first indigenous
developed Light Commercial vehicle< India’s first sports Utility vehicle and in 1998 theTata Indica
India’s first fully indigenous passenger car. Within two years of launch Tata Indica became India’s
largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the
Tata ace, India’s first indigenously developed mini-truck.
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In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano which India and the world
have been looking forward to. A development which signifies a first for the global automobile
industry the Nano brings the comfort and safety of a car within the reach of thousands of families.
When launched in India later in 2008 the car will be available in both standard and deluxe versions.
The standard version has been priced at 100,000 (excluding VAT and transportation cost.
Designed with a family in mind, it has a roomy passenger compartment with generous leg space
and head room. It can comfortably seat four people. Its mono – volume design will set a new
benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its
tailpipe emission performance too exceeds requirement. In terms of overall polluter, it India today.
The lean design strategy has helped minimize weight, which helps maximize performance per unit
fuel efficiency also ensures that the car has low carbon dioxide emission, thereby providing the twin
benefits of an affordable transportation solution with a low carbon foot fits.
The years to come will see the introduction of several other innovative vehicle, all rooted in
emerging customer needs. Besides product development R&D is also focusing on environment-
friendly technologies in emission and alternative fuels.
Through its subsidiaries the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and supply
chain activities machine tools and factory automation solution, high-precision tooling and plastic and
electronic components or service operations.
True to the tradition of the Tata Group Tata Motors is committed in letter and spirit to corporate
Responsibility. It is a signatory to the United Nations Global compact, and is engaged in community
and social initiative on labor and environment standards in compliance with the principles of the
Global compact. In accordance with this, it plays an active role community development serving
gruel communities adjacent to its manufacturing locations.
With the foundation of its Rich Heritage Tata motors today is etching a refulgent future.
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Mission and Awards
Mission of Tata Motors is “Best in the manner in which we operate, best in the products us
and best in our value system and ethics”.
Awards received at TATAMOTORS are:
CII award for corporate sustainability reporting. It is a role model award excellent management I
India.
Hellen Keller award of CSR.
Golden peacock global award for corporate social responsibility.
Bombay natural history award for green governance.
Tata motors bags uptime champion award 2007.
NDTV profit business leadership award.
COMMERCIAL VEHICLES
India has 5th largest commercial vehicle market in the world.
The commercial vehicle production in India increased from 156,706 in 2001 to 350,033 in 2005.
This segment can be divided into three categories – heavy commercial vehicles (HCVs), medium
commercial vehicles (MDVs or MCVs) and light commercial vehicles (LCVs). Medium and heavy
commercial vehicles formed about 62 per cent of the total domestic sales of CVs in 2004. These
segments have also been driving growth, having grown at a CAGR of nearly 24.7 per cent over the
past five years. The key trends facilitating growth in this sector are the development of ports and
highways, increase in construction activities and agricultural output. With better roads and highway
corridors linking major cities, the demand for larger, multi-axle trucks is increasing in India.
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Light commercial vehicles
Production in Indian light commercial vehicle (LCV) segment witnessed a growth of more than 20
%. At present there are 7 manufacturers in Indian light commercial vehicle segment. With the
increasing demand of load carriers, a few manufacturers are expanding their capacity and some of
them are setting up new plants. Some of the manufacturers are also in the process of launching the
new models of LCV. In India Mahindra and Mahindra is the leader among the LCV manufacturers
with the production of 1.28 lakh LCV during the financial year 2005-2006 followed by Tata motors
and ashok Leyland.
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CHAPTER - 2
PROJECT PROFILE
2.1 Title of the study
2.2 Significance of the study
2.3 Objective of the study
2.4 Research methodology
2.5 Limitations of the study
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TITLE OF THE STUDY
“Comprehensive study of organization profile DUNAC MOTORS (TATA) in Bikaner & overall market
share of TATA MOTORS”.
Significance of the study
Today the demand of utility & goods carrying vehicles in increasing day by day. Mostly villagers and
framers are its target customer. So company wants to know the right picture of customer of its
different brands.
Objective of the study
The study was conducted with the following aims the researcher:
To get knowledge about the organization profile of DUNAC MOTORS in BIKANER
To find out overall market share of TATA MOTORS.
To see the competitor’s position
To groom my knowledge.
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DATA COLLECTION METHODS: -
PRIMARY DATA: -
TO COLLECT THE PRIMARY DATA WE HAD TWO WAYS THAT WERE:-
1. SAMPLING
2. RESEARCH INSTRUMENTS
Sampling: -
IT WAS A RANDOM SELECTION SAMPLING METHOD
As stated earlier there are two types of surveys:-
1. Consumer Behavior
2. Market Mapping
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Survey no. 1: -
For consumer behavior survey, we went to different areas and met with different vehicle
owners of passenger vehicles and loading vehicles.
All the surveys were conducted in questionnaire format.
Sampling Units: - sampling units for survey no. 1 were owners of both passenger vehicles and
loading vehicles.
Survey no. 2 : -
For market mapping survey. We took 9 talukas of Bikaner district.
We took 1-5 villages in the radius of 5-25 km of each taluka .
Sampling was based on the passenger up-down frequency of routes to different villages and
availability of mode of transportation.
Sampling units: -
Sampling units for survey no. 2 which was market mapping were the surpunch and other villagers of
the village.
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Research instruments: -
Research instruments that were used in the both of the surveys were questionnaire. And personal
interviews
Secondary data: -
Brauchers of the different companies
Google
TATA website
Maps of Bikaner
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Research methodology
Sample size : 50
Number of respondents : 45
Sampling unit : Existing customer like framers, people
engaged in Transportation business.
Data collection method : Observation, personal interview, simple random .
Data analysis method : Graphical analysis and percentage analysis technique
Limitations of the study
Limitations of personal face to face interview:
It is most costly method.
Some respondent does not show any interest toward survey.
Reliability of face to face interviewing depends on integrity and skill of interviewers.
We can not 100% predict that what we found out from our research is accurate
We cannot collect equal data from entire region.
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CHAPTER – 3
Human resources
Marketing
Features of the products
Workshop and spare parts departments
Financial result of TATA MOTORS
Overall Market share of Tata motors
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HUMAN RESOURCE
MEMBERS
Managing Director : Mr. Jagdish Dudi
Business manager : Mr. Rajesh Bishoni
Dealer sales manager : Mr. Manish bhatiya
: Mr Sanjay Bissa
Dealer sales executives : Mr. Yogendra bhadani
: Mr.Ravindra jajda
Workshop manager : Mr Kuldeep singh
Spare department manger : Mr Deepak Sharma
Accounting manager : Mr Kailash kumar
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HIERARCHY OF THE ORGANIZATION
WORK SHOP DEPARTMENT SALES DEPARTMENT SPAREPARTS
DEPARTMENTS
Work Shop manager
Helper
Supervisor
Assistant manager
Business manager Manager
Dealer Sales executive
Dealer sales manager
Supervisors-4
Assistant work shop manager
Helper
Mechanic
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APPOINTMENT- STEPS FOR APPOINTMENT & SELECTION
TRANING PROCEDURE
Advertisement in News Paper
Application Received by the Organization
Application in short listed on the basis of qualification and working experience
Call letters are sending to the candidates
Interview committee takes the Interviews
Mr. Jagdish Dudi of the organization selects the candidates
Then they are sending to Jaipur for training if required
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DUNAC MOTORS has two types of the training procedure for the employees. The training is
completed in Jaipur.
1. ON THE JOB TRINNING
2. OFF THE JOB TRAINING
1. ON THE JOB TRAINING:-
It includes the job rotation, apprenticeship, understudy assignments & formal mentoring
programmes. Basically Office works is included in this training.
2. OFF THE JOB TRAINING:-
Primary drawback of the on the job training is that they often disrupt the work place. So
organization invests in off the job training. In this the organization includes the curriculum,
operation enhancement, product management & interpersonal skills to sharpen the
managerial qualities of the trainee.
MOTIVATION:-
Motivation is one of the most important factors affecting human behavior. The success of an
organization depends on its motivation pattern.
The success of DUNAC MOTORS is also mainly dependent on its employees, as they are
highly motivated. The organization has obtained a simple motivation pattern the organization simply
uses their efforts, check there performance, promote/demote according to their performance &
finally helps to achieve their personal as well as organizational goals.
Mainly the things can be related to the Expectancy theory of motivation...
The organization also makes some relationship efforts...
1. Effort- performance relationship.
2. Performance-reward relationship.
3. Reward-personal goal relationships.
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MARKETING
In the sense of marketing, place means area of marketing. It includes basically production to sales
coverage.
PRODUCTION:-
Production is a place of TATA MOTORS is in Pune, uttrakhand , Jamesdpur.
Channels: - DUNAC at Bikaner has its Branch at Churu, Jhunjhunu, Shri ganganagar,
Hanumangarh, Sikar & Nagaur.
Promotion:-
Promotion means a concept through which the organization increases its sales.
DUNAC Motors uses demo presentation at crowded areas of Bikaner like Junagarh, Raliway
Station tour & travels Place and in rural areas.
They mainly used to go for various villages because the majore customer is farmers and
villagers so the main promotion held in villages.
Print media, advertisement, road shows & hoardings are also used as sales promotional
tools.
3-S is followed by the organization likely:-
S- Sales
S-Service
S-Spare Part Department.
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TATA LPT 2515 TURBO EX 6X2 BSII
Job Card
Service
Vehicle
Vehicles number
Cost estimate
Write works for service
Owner Name
Receptionist
Advice
Advisor
Bills
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Turbo Charged Inter Cooled
The most fuel efficient multi axel truck for rated loads.
We have collected data by taking personal interview as well as telephonic interviews.
For this we used random sampling method. To collect the contacts we took the help of our sales
manager, he thought us how to find new contacts how to approach them. Again we checked the
enquiry registers of the showroom, contacted old customers, collected data from RTO.
After collecting sufficient information we designed a questionnaire which include both open ended
and close ended question. The questions are simple so the respondents give feedback easily. The
analysis was done with the help of excel sheet. With the help of different data interpretation
techniques we have present data and result found.
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Q . WHAT OCCUPATION DO YOU HAVE?
a) Farmerb) Transport companyc) Drivers
Interpretation
70% of respondents are basically owner of the transport company they used more vehicleAs the compare of farmers(10%) and drivers(20%) because they mainly used their LCV, HCV for commercial purpose for both long and short route. While the drivers used only for short route(in city) and farmers used them for their personal use so the use ofLCV and HCV is less compare to other
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Q . WHAT TYPE OF CATOGERY OF VICHICLE YOU HAVE ?
a) LCV
b) HCV
Interpretation
As we see the previous graph the more users belongs to transport company so the need of
HCV(70%) is more than LCV(30%)
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Q . FOR WHAT PURPOSE YOU USE LCV OR HCV ?
a) SHORT ROUTE LOADING 30%
b) LONG ROUTE LOADING 65%
c) ANY OTHER PURPOSE 5%
Interpretation
As the demand of HCV is more and the HCV is mainly used in long route so the graph
present more share of long route(65%) rather than short route(30%)and any other
purpose(5%)
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Q . HOW WAS THE EXPERIENCE OF TATA VEHICLE ?
a) OUTSTANDING 70%
b) GOOD 20%
c) FAIR 8%
d) POOR 2%
Interpretation
As the TATA is the second name of trust so the customers are very happy with the products
TATA have wide range of products and the structure of the products are so good and durable
so the maximum customers are satisfied from the products that’s why the outstanding reach
(70%) more than any other.Customers have their own perception many of the are little
satisfied(8%) and many of them are not at all satisfied(2%)
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Q . HOW IS THE POWER AND PICK-UP IS UP TATA COMPARE TO THE OTHERS PRESENT IN MARKET ?
a) HIGHb) LOWc) SIMILAR
Interpretation
As the TATA have wide range of products TATA have products for every segments and their power and pickup of the products is so good this lead attraction of the customers towards the product they like power and pickup that’s why the graph of high shows55% which is higher than other. Which shows 10% and 35% respectivly
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Q . ARE YOU SATISFIED WITH THE TATA PRODUCTS ?
a) YES
b) NO
Interpretation
TATA provide wide range of products with wide range of pricing policy with high quality level which shows in pie chat 85% customers satisfied only 15% are not satisfied
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Q.WHAT PARAMETERS WHOULD YOU SEE WHILE PURCHASING LCV, HCV ?
Interpretation
Customers are so choosey they mainly go for market trends as in this segment the customers are mainly belong from rural area so they never bother about style that’s why the style graph shows less % only 2% while the others are more than style as the these vehicle mainly used for loading so the customers always looking for mileage and power but their mainly focus on price and market demand that’s why it shows high among other(45%)
Parameters %
Brand 13
Style 2
Mileage 25
Power and Pick-up 15
Price and market demand
45
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Q.WHAT IS YOUR PERCEPTION ABOUT PRICE OF TATA COMPARE TO ASHOK LEYLAND AND EICHER?( CONSIDERING FEATURE AND PERFORMANCE )
Very high 20
High 12
Similar 35
Low 33
Interpretation
As the competitor of TATA Ashok Leyland maintain the pricing policy according to the featurePerformance that’s why the more respondent go for similar which is more acceptable than others similar got the highest (35%) after that many of them consider TATA as the low price policy which get (33%) which is nearby similar but high than others.
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MARKET SHARE OF TATA MOTORS (TRUCKS) IN BIKANER
Interpretation
Dunac motors in Bikaner have captured the 75% market share because prakhar motors of ashok
Leyland and daraniya motors of eicher have negligible sales.
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MARKET SHARE OF TATA MOTORS IN RAJASTHAN (TRUCKS)
BRANDS %
TATA Motors 89
ASHOK LEYLAND 09
EICHER 02
Interpretation
The graph shows that tata motors (trucks) is leading by capturing 89% market share in Rajasthan
where as Ashok Leyland and Eicher has 8% and 2% market share respectively
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WAR ON THE HIGHWAY: ASHOK LEYLAND V/S TATA MOTERS
Brands %
TATA Motors 55
ASHOK LEYLAND 35
EICHER 10
TOTAL 100
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FINANCIAL RESULT OF TATA MOTORS
MUMBAI: TATA MOTORS HAS REPORTED CONSOLIDATED GROSS REVENUE OF RS. 40340
.79 CRORES IN 2007-2008, A GROTH OF COMPARED TO RS. 36922.61 CRORES IN 2006-07
While Tata motors new plant at pant nagar( in uttarakhand) for Ace and Magic range of vehicles
went on stream during 2008-09 construction activity is on at Singular ( in West Bengal ) FOR THE
Tata Nano and at Dharwad ( in Karnataka ) for buses to be manufactured by the Company ` is joint
venture, Tata Marcopolo Motors limited.
The existing plants at Pune, jamashedpur and lucknow are undergoing expansion and
modernization.
The automobile industry including Tata Motors is expected to face challenging times ahead due to
unprecedented increase in input prices and continuing adverse economic situation in India and
globally.
Consolidated financial results for the year ended March 31, 2008
The consolidated revenues (net of excise) at Rs. 35651. 48 cores posted a growth f 10.2% over Rs.
32361.20 crores in the previous year. The consolidated profit before Tax (PBT) for the year was Rs.
3086.29 crops compared to Rs. 3088.00 crores. A marginal decrease over Rs. 2169.9 cores in the
previous year.
Tata motors have reported Basic Earnings per Share (EPS) of Rs.56.24 for its consolidated
operation as against Rs.56.43 in 2006-07.
Tata motors stand-alone financial results financial year ended March31, 2008
Tata motors gross revenue for the financial year 2007-08 was Rs.33093.93 crores (3006-07 Rs.
31819.48 crores)
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The revenues (Net of excise) at Rs.28730.82 crores posted a growth of 4.6% over Rs. 27470.03
crores in the previous year. The PBT for the year is Rs. 2576.47 crores, an increase of 0.1% over
Rs. 2573.18 crores last year. The PAT for the year is Rs. 2028.92 crores, an increase of 6% over
Rs. 1913. 46 crores last year.
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
input prices. The Company has focused in cist recuction measures. There have been delays in the
introduction of two productions, which are expected to be launched in the very near future.
The total sales volume (including exports) for 2007-08 is 585,649 units, highest ever of the
Company, compared to 580,280 units in 2006-07. The Company maintained its leadership position
in commercial vehicles and was among the top three players in the passenger vehicles, although it
lost some market share. In the domestic market, commercial vehicles` sales increased by 4.8% to
312,935 units and passenger vehicles` sales at 218,055 units declined by 4.5%
This year was a historical year for the Company marked with path breaking events the unveiling of
the tata nano –the worlds` least expensive car and the signing of the definitive agreement with ford
motor company for purchase of the Jaguar and Land Rover businesses. A number of new products
were launched towards the end of the year. In passenger vehicles, new launched include the Indica
V2 with a common rail diesel ( DICOR) offering, the Indigo CS ( the worlds’ first sub 4- meter
sedan), the Indigo LS ( an entry level DICOR offering ) the Sumo Grande, and the safari DICOR 3.3
VTT range commercial vehicles introduction during 2007-08 included the new Magic and Winger
range for passenger transportation, state-of-the-art low-floor CNG- propelled buses and several
trunks tippers and tractor –trawlers from 9 tonnes to 49 tones. These product launches would help
the Company regain some of its market share.
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Dividend
The Board of directors has recommended a dividend of Rs. 15/- per share of Rs. 10/- each for the
financial year 2007-08 (2006-7: Rs. 15/-). The dividend is subject to approval of shareholders; tax
on the dividend will be borne by the Company.
FACTS
- The Tata GROUP is guided by the principle of trusteeship & the conviction that free
enterprise, in order to thrive, must serve the needs of the society. This is the comer stone of
our corporate sustainability initiatives. TATA MOTORS is committed in letters & spirit, to the
improvement in the quality of life of people.
- Company has developed INTEGRATED RURAL DEVELOPMENT WHICH BASIC NEEDS IN
5 BROAD AREAS-
. Health
. Education
. Water
. Environment & Livelihoods
- Tata Motors intents to open its service station at each 60 km. area
- In year 1985-2000 the sales percentage of TATA MOTORS in south & west was 10% -15%
but as time passed it increased from 25%-35% .
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CHAPTER -4
ANALYSIS
4.1 SWOT analysis
SWOT ANALYSIS
Strengths:
- Organization goal is total customer satisfaction
- Good leadership of area General Manager. Qualitative team of employees.
- Good distribution channels
- Good credit in the global market
- Monopoly outlets and counters
- Good quality production
- Effective business strategy & planning process
Weakness:
- Less sales in southern areas of India
- Number of production places are less
- Emphasis on passenger vehicles.
Opportunities:
- To cover the marker share in the different regions of the country.