Potential Market for TATA Nano

Potential Market for TATA Nano

INTRODUCTION

Tata Motors Limited is India's largest automobile company, with revenues of

Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in

commercial vehicles in each segment, and the second largest in the

passenger vehicles market with winning products in the compact, midsize

car and utility vehicle segments. The company is the world's fifth largest

medium and heavy commercial vehicle manufacturer, and the world's second

largest medium and heavy bus manufacturer.

Established in 1945, Tata Motors' presence indeed cuts across the length and

breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the

first rolled out in 1954. The company's manufacturing base is spread across

India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west,

and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand).

The nation-wide dealership, sales, services and spare parts network

comprises over 2,000 touch points. The company also has a strong auto

finance operation, TML Financial Services Limited, supporting customers to

purchase Tata Motors vehicles.

In India there are 100 people per vehicle, while this figure is 82 in China. It

is expected that Indian automobile industry will achieve mass motorization

status by 2014.

Since the first car rolled out on the streets of Mumbai (then Bombay) in

1898, the Automobile Industry of India has come a long way. During its

early stages the auto industry was overlooked by the then Government and

the policies were also not favorable. The liberalization policy and various

1


tax reliefs by the Govt. of India in recent years have made remarkable

impacts on Indian Automobile Industry. Indian auto industry, which is

currently growing at the pace of around 18 % per annum, has become a hot

destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development

of an economy, and India is no exception to it. With the growth of

transportation system the Automotive Industry of India is also growing at

rapid speed, occupying an important place on the 'canvas' of Indian

economy.

Today Indian automotive industry is fully capable of producing various

kinds of vehicles and can be divided into 03 broad categories: Cars, two-

wheelers and heavy vehicles.

Segment :

Among the two-wheeler segment, motorcycles have major share in the

market. Hero Honda contributes 50% motorcycles to the market. In it Honda

holds 46% share in scooter and TVS makes 82% of the mopeds in the

country.

In commercial vehicle, Tata Motors dominates the market with more than

60% share. Tata Motors is also the world's fifth largest medium & heavy

commercial vehicle manufacturer.

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INDIAN AUTOMOBILE HISTORY:

During the 1920s, cars exhibited design refinements such as balloon tires,

pressed-steel wheels, and four-wheel brakes.

In Brief:

The origin of automobile is not certain. In this section of automobile history,

we will only discuss about the phases of automobile in the development and

modernization process since the first car was shipped to India. We will start

automotive history from this point of time.

The automobile industry has changed the way people live and work. The

earliest of modern cars was manufactured in the year 1895. Shortly the first

appearance of the car followed in India. As the century turned, three cars

were imported in Mumbai (India). Within decade there were total of 1025

cars in the city. The dawn of automobile actually goes back to 4000 years

when the first wheel was used for transportation in India. In the beginning of

15th century Portuguese arrived in China and the interaction of the two

cultures led to a variety of new technologies, including the creation of a

wheel that turned under its own power. By 1600s small steam-powered

engine models was developed, but it took another century before a full-sized

engine-powered vehicle was created.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back

door that suited more to the needs of families. In 1930s, vehicles were less

boxy and more streamlined than their predecessors. The 1940s saw features

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like automatic transmission, sealed-beam headlights, and tubeless tires.

STATEMENT OF THE PROBLEM :

Potential market for TATA Nano

OBJECTIVES OF STUDY:

1. To know potential market for TATA Nano 2. To know which income level people are willing to buy TATA Nano

3. To know whether TATA Nano is suitable for the business uses

4. To know the impact of the TATA Nano in local car market

NEED FOR THE STUDY :

This survey helps the researcher to understand the potential market for Tata

Nano, as well as why the consumers are ready to buy and also helps the

respondents to take the correct decision, choosing the appropriate place for

their valuable money. The basic need of undertaking this survey is to submit

a project report to the institute as the part of the academics.

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METHODOLOGY:

From 2 sources data can be collected

External sources.

Internal sources.

This data can be classified into

Primary data

Secondary data

Primary data have been collected directly with the help of questioners or

by survey method.

The secondary data have been collected from the internet and Maxine’s.

Sample Size: 100 Respondents

Sample Area: Hubli (Vidyanagar)

Sampling Technique: Non- probability sampling – (Judgmental)

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ANALYSIS OF DATA (TOOLS):

The data and information obtained from the respondents are put into spss

form. Then the data is been organized in such a way that they would yield

specific results to the objective of the study. The data is organized in the

tally marks and various charts, graphs & pie charts that will help to have

overview of the fact and figures. All the work is done under the data, which

is collected, form the respondents. From the process data the research loudly

speaks of its findings and implications that aid in arriving at a conclusion

LIMITATIONS:

All experienced things can’t put on the paper.

It is conducted in open market, things tend to change rapidly.

Because of the busy schedule respondents may not have answered

properly which may not hold true in case they would have been given

lot of time to answer.

The research was conducted in Hubli city only, so analysis and

recommendations may not be applicable to other cities.

Sample size was 100; I feel this small size cannot represent the whole

consumer’s opinion.

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The time period was between July 10th 2009 to August 18th 2009, For

30 days

OVERVIEW OF AUTOMOBILE INDUSTRY

In India there are 100 people per vehicle, while this figure is 82 in China. It

is expected that Indian automobile industry will achieve mass motorization

status by 2014.

Industry Overview:

Since the first car rolled out on the streets of Mumbai (then Bombay) in

1898, the Automobile Industry of India has come a long way. During its

early stages the auto industry was overlooked by the then Government and

the policies were also not favorable. The liberalization policy and various

tax reliefs by the Govt. of India in recent years has made remarkable impacts

on Indian Automobile Industry. Indian auto industry, which is currently

growing at the pace of around 18 % per annum, has become a hot destination

for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development

of an economy, and India is no exception to it. With the growth of

transportation system the Automotive Industry of India is also growing at

rapid speed, occupying an important place on the 'canvas' of Indian

7


economy.

Today Indian automotive industry is fully capable of producing various

kinds of vehicles and can be divided into 03 broad categories: Cars, two-

wheelers and heavy vehicles.

Snippets:

The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto

industry.

Within two-wheelers, motorcycles contribute 80% of the segment

size.

Unlike the USA, the Indian passenger vehicle market is dominated by

cars (79%).

Tata Motors dominates over 60% of the Indian commercial vehicle

market.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world.

India is the largest two-wheeler manufacturer in the world.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the

world.

The number one global motorcycle manufacturer is in India.

India is the fourth largest car market in Asia - recently crossed the 1

million mark.

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Segment:

Among the two-wheeler segment, motorcycles have major share in the

market. Hero Honda contributes 50% motorcycles to the market. In it Honda

holds 46% share in scooter and TVS makes 82% of the mopeds in the

country.

40% of the three-wheelers are used as goods transport purpose. Piaggio

holds 40% of the market share. Among the passenger transport, Bajaj is the

leader by making 68% of the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has

52% share in passenger cars and is a complete monopoly in multi purpose

vehicles. In utility vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than

60% share. Tata Motors is also the world's fifth largest medium & heavy

commercial vehicle manufacturer.

Miscellaneous:

Hyderabad, the Hi-Tech City, is going to come up with the first automobile

mall of the country by the second half of 2008. It would be set up by city-

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based Prepay Engineers Syndicate in area of more than 35 acres. This 'Auto

polis' would have facilities for automobile financing institutions and

insurance services to create a complete range of services required for both

auto companies and customers. It will also have a multi-purpose convention

centre for auto fairs and product launches.

INDIAN AUTOMOBILE HISTORY

During the 1920s, cars exhibited design refinements such as balloon tires,

pressed-steel wheels, and four-wheel brakes.

In Brief:

The origin of automobile is not certain. In this section of automobile history,

we will only discuss about the phases of automobile in the development and

modernization process since the first car was shipped to India. We will start

automotive history from this point of time.

The automobile industry has changed the way people live and work. The

earliest of modern cars was manufactured in the year 1895. Shortly the first

appearance of the car followed in India. As the century turned, three cars

were imported in Mumbai (India). Within decade there were total of 1025

cars in the city.

The dawn of automobile actually goes back to 4000 years when the first

wheel was used for transportation in India. In the beginning of 15th century

Portuguese arrived in China and the interaction of the two cultures led to a

variety of new technologies, including the creation of a wheel that turned

10


http://www.surfindia.com/automobile/auto-companies.html


under its own power. By 1600s small steam-powered engine models was

developed, but it took another century before a full-sized engine-powered

vehicle was created.

By 2010, India is expected to witness over Rs 30,000 crore of

investment.

Maruti Udyog has set up the second car with an investment of Rs

6,500 crore.

Hyundai will bring in more than Rs 3,800 crore to India.

Tata Motors will be investing Rs 2,000 crore in its small car project.

General Motors will be investing Rs 100 crore and Ford about Rs 350

crore.

Ashok Leyland and Tata Motors have each announced over Rs 1,000

crore of investment.

Why India

The economy of India is emerging. The following table shows the ranking of India in the

past four years.

Rank 2005 2004 2003 2002

1 China China China China

2 India Thailand Thailand Thailand

3 Thailand India USA USA

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4 Vietnam Vietnam Vietnam Indonesia

5 USA USA India Vietnam

6 Russia Russia Indonesia India

7 Korea Indonesia Korea Korea

Twin Advantages:

Scaling costs

Optimizing resources

Note: Excellent source for IT based engineering solutions - for products &

process integration.

Facts & Figures

The automobile industry in India is on an investment overdrive. Be it

passenger car or two-wheeler manufacturers, commercial vehicle makers or

three-wheeler companies - everyone appears to be in a scramble to hike

production capacities. The country is expected to witness over Rs 30,000

crore of investment by 2010.

Over the next one year, some 20 new cars will be seen on Indian roads. Take

note of this, Maruti Udyog is coming up with new Zen and the diesel version

of Swift during the next few months. Hyundai will also be unmasking the

Verna and a brand new diesel car. General Motors will be launching a mini

and may be a compact car.

Most of the companies have made their intentions clear. Maruti Udyog has

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set up the second car plant with a manufacturing capacity of 2.5 lakh units

per annum for an investment of Rs 6,500 crore (Rs 3,200 crore for diesel

engines and Rs 2,718 crore for the car plant itself). Hyundai and Tata Motors

have announced plans for investing a similar amount over the next 3 years.

Hyundai will bring in more than Rs 3,800 crore to India.

Toyota announced modest expansion plans even as Honda Seal has

earmarked Rs 3,000 crore over the next decade for India - a sizeable chunk

of this should come by 2010 since the company is also looking to enter the

lucrative small car segment.

Some new entrants will also taste the water. They are the big names in

passenger cars like Citroen, Volkswagen AG, Nissan (separately, apart from

its tie-up with Suzuki), Alfa Romeo, Maserati, Land Rover and Aston

Martin.

Talking about the commercial vehicle segment, Ashok Leyland and Tata

Motors have each announced well over Rs 1,000 crore of investment.

Mahindra & Mahindra's joint venture with International Trucks are expected

In two-wheelers segment, Chinese bike major Lifar and the iconic US brand

Harley-Davidson are expected to enter India soon. Hero Honda is about to

establish its fourth manufacturing plant. Bajaj Auto and TVS Motors are

moving to the excise-free zones of Himachal Pradesh and Uttaranchal for

putting up new capacity.

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INDIAN AUTOMOBILE INDUSTRY GROWTH:

The passenger car and motorcycle segment in Indian auto Industry is

growing by 8-9 per cent.

Current Scenario:

The Indian automobile industry crossed a landmark with total vehicle

production of 10 million units.

Car sales was 8, 82,094 units against 8, 20,179 units in 2004-05.

The two-wheeler market grew by 13.6 per cent with 70, 56,317 units

against 62, 09,765 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3, 50,683

units against 3, 18,430 units in 2004-05.

India, sourcing base for global auto majors.

Facts & Figures:

India, in auto sector, is turning to be a sourcing base for the global auto

majors. The passenger car and the motorcycle segment is set to grow by 8-9

per cent in coming couple of years, says the ICRA report. The industry is

likely to maintain the growth momentum picked up in 2002-03.

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The ICRA's analysis points on the auto sector that the passenger car market

in the country was inching towards cars with higher displacements. The

sports-utility-vehicle (SUV) that was getting crowded everyday, would

witness intense competition as many SUVs had been competitively priced.

Honda, Suzuki, General Motors and Hyundai, the global automakers had

already launched their premium SUVs in the market to broaden their

portfolio and create product excitement in the segment estimated at about

10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would

clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and

mopeds. Scooters sales would decelerate and mopeds would also see the

same. Overseas market would present huge opportunities for the two-

wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent.

Heavy commercial vehicles market would rise at 5.5 per cent and sales of

light buses and trucks would achieve 4.7 per cent growth. For the tractors,

the report predicts a growth at 4.6 per cent.

Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89,

10,224 units as against 78, 97,629 units in 2004-05.

The automotive industry crossed a landmark with total vehicle

production of 10 million units.

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According to the Society of Indian Automobile Manufacturers

(SIAM), car sales was 8, 82,094 units against 8, 20,179 units in 2004-

05.

The growth of domestic passenger car market was 7.5 per cent

Car exports stood at 1, 70,193 units against 1, 60,670 units in 2004-05

The two-wheeler segment, the market grew by 13.6 per cent with 70,

56,317 units against 62, 09,765 units in 2004-05.

Motorcycles had the upward march, 17.1 per cent in domestic market

touching 58, 15,417 units against 49, 64,753 units in 2004-05.

Scooter segment grew by 1.5 per cent, fall at 9, 08,159 units against 9,

22,428 units in 2004-05.

Medium and heavy commercial vehicles managed a growth of 4.5 per

cent against 23 per cent growth in the year ended March 31, 2005.

Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237

units against 1, 19,924 units in 2004-05.

Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3,

07,862 units in 2004-05.

Market Advantage:

Fast paced urbanization to rise from 28% to 40% by 2020.

Upward migration of household income levels.

Middle class expanding by 30-40 million every year.

Growing working population.

Vehicle Production in India:

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India is the 11th largest Passenger Cars producing countries in the world and

4th largest in Heavy Trucks

Indian Market Analysts are jubilant over the fact that India has the fastest

growing automobile industry (passenger cars segment) in the world today.

This is seen as the result of rapid increase of middle-class population

The findings of International Organization of Motor Vehicle Manufacturers

revealed that in India the car production had grown to 30% in 2004, thus

leading the table, Brazil came a distant second with the increase of 17%.

Automobile Industry is the largest industry in India with an impressive

growth in the last two decades. The reason behind the growth was abolition

of licensing in 1991 and permitting automatic approval and successive

liberalization of the sector.

According to estimation the compound annual growth rate (CAGR) of

Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008

million by 2010. The figure for FY05 was 8.45 million units. To tap this

large opportunity, the Indian Auto Companies along with the global giants

have announced huge expansion plans.

Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed

by Tata Motors. Hyundai did well but the difference was nearly half of Tata

Motors.

Current Scenario:

The growth rate of Passenger Cars in 2004 was 30% in India where as

the average growth rate of top 12 Passenger Cars producing countries

were just 5.1%. In Heavy Trucks it was 32% and 14.6% respectively.

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Component industry's growth was only 9% between 1997-2000. But

between 2000-2005, it has grown to 20%. It is projected 17% between

2005-2014.

Largest industry in India.

Production of 4-Wheelers

Types of Vehicle 2002-03 2003-04 2004-05 2005-06

Passenger Vehicles 557400 782550 960480 1045880

Utility Vehicles 114470 146330 182020 196380

Multipurpose Vehicles 51450 60670 67370 66665

Total 723320 989550 129870 1308925

PROFILE OF THE ORGANISATION

RATAN TATA :

Under him the Tata Engineering and locomotive company was incorporated

in the year 1945 in Jamshedpur for the manufacture of commercial vehicles.

The company's manufacturing base is spread across India - Jamshedpur

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

Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being

set up in Singur (close to Kolkata in West Bengal) to manufacture the

company's small car

Tata Motors Limited is India's largest automobile company, with revenues

of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in

18


commercial vehicles in each segment, and the second largest in the

passenger vehicles market with winning products in the compact, midsize

car and utility vehicle segments. The company is the world's fifth largest

medium and heavy commercial vehicle manufacturer, and the world's

second largest medium and heavy bus manufacturer.

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

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

our value system and ethics." Tata Motors helps its employees realize their

potential through innovative HR practices. The company's goal is to

empower and provide employees with dynamic career paths in congruence

with corporate objectives. All-round potential development and

performance improvement is ensured by regular in-house and external

training. The company has won several awards recognizing its training

programmers.

Established in 1945, Tata Motors' presence indeed cuts across the length

and breadth of India. Over 4 million Tata vehicles ply on Indian roads,

since the first rolled out in 1954. The company's manufacturing base is

spread across India - Jamshedpur (Jharkhand) in the east, Pune

(Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and

Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to

Kolkata in West Bengal) to manufacture the company's small car. The

nation-wide dealership, sales, services and spare parts network comprises

over 2,000 touch points. The company also has a strong auto finance

operation, TML Financial Services Limited, supporting customers to

purchase Tata Motors vehicles.

19


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

in the New York Stock Exchange (September 2004), has also emerged as

an international automobile company. In 2004, it acquired the Daewoo

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

rechristened Tata Daewoo Commercial Vehicles Company has launched

several new products in the Korean market, while also exporting these

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

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

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

Spanish bus and coach manufacturer, with an option to acquire the

remaining stake as well. Hispano's presence is being expanded in other

markets. In 2006, it formed a joint venture with the Brazil-based Marco

polo, a global leader in body-building for buses and coaches to

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

markets. Tata Motors also entered into a joint venture in 2006 with

Thonburi Automotive Assembly Plant Company of Thailand to

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

2006, Tata Motors and Fiat Auto formed an industrial joint venture at

Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and

Tata cars and Fiat power trains for the Indian and overseas markets; Tata

Motors already distributes and markets Fiat branded cars in India. In 2007,

Tata Motors and Fiat Auto entered into an agreement for a Tata license to

build a pick-up vehicle bearing the Fiat nameplate at Fiat Group

Automobiles' Plant at Córdoba, Argentina. The pick-up will be sold in

South and Central America and select European markets.

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These linkages will further extend Tata Motors' international footprint,

established through exports since 1961. While currently about 18% of its

revenues are from international business, the company's objective is to

expand its international business, both through organic and inorganic

growth routes. The company's commercial and passenger vehicles are

already being marketed in several countries in Europe, Africa, the Middle

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

in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.

The foundation of the company’s growth is a deep understanding of

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

customer-desired offerings through leading edge R&D. The R&D

establishment includes a team of 1400 scientists and engineers. The

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

facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled

pioneering technologies and products. It was Tata Motors, which

developed the first indigenously developed Light Commercial Vehicle,

India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first

fully indigenous passenger car. Within two years of launch, Tata Indica

became India's largest selling car in its segment. The ERC in Pune, among

whose facilities are India's only certified crash-test facility and hemi-

anechoic chamber for testing of noise and vibration, has received several

awards from the Government of India. Some of the more prominent

amongst them are the National Award for Research and Development

Efforts in Industry in the Mechanical Engineering Industries sector in 1999,

the National Award for Successful Commercialization of Indigenous

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

Jubilee Technology Award in 2004.

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

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

development of products, supporting Tata Motors' skill sets. Tata Daewoo

Commercial Vehicle Company and Hispano Carrocera also have R&D

establishments at Gunsan in South Korea and Zaragoza in Spain.

The pace of new product development has quickened through an

organization-wide structured New Product Introduction (NPI) process. The

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

brings in greater discipline in project execution. The NPI process helped

Tata Motors create a new segment, in 2005, by launching the Tata Ace,

India’s first indigenously developed mini-truck. The years to come will see

the introduction of several other innovative vehicles, all rooted in emerging

customer needs. Besides product development, R&D is also focusing on

environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and

automotive solutions, construction equipment manufacturing, automotive

vehicle components manufacturing and supply chain activities, machine

tools and factory automation solutions, high-precision tooling and plastic

and electronic components for automotive and computer applications, and

automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter

and spirit to Corporate Social Responsibility. It is a signatory to the United

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Nations Global Compact, and is engaged in community and social

initiatives on labor and environment standards in compliance with the

principles of the Global Compact. In accordance with this, it plays an

active role in community development, serving rural communities adjacent

to its manufacturing locations.

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

refulgent future.

Tata Motors (Previously known as Tata Engineering and Locomotive Co) is

the youngest passenger car company in the world. It was established in the

year 1945. Initially, they were into the manufacturing of trains. However,

Tata motor is solely responsible for showcasing India's automotive industry

to the rest of the world. It did so by designing and developing its own

indigenous cars and thus placing India on the world automobile map. Tata

Motors much like its parent company (Tata Group) has far fetched vision

and always thrives for excellence.

It was established with a vision of becoming a global car manufacturer from

India. And today, it has indeed achieved its feat of becoming a global player

in the automobile industry. It has a wide range of automobiles varying from

commercial vehicles to passenger vehicles to multi-utility vehicle etc. Tata

Motors is very committed to issues like Corporate Social Responsibility,

Human Rights, Labor, and Environmental Standards. They are partners to

the United Nations Global Compact.

Tata Motors is India's largest automobile company and the sixth biggest

commercial vehicle manufacturer in the world. In the year 2004, it became

23


the first Indian Engineering Company to be listed in the New York Stock

Exchange. The company had earned revenue of Rs 24,000 crores for the

financial year of 2005-06. Hence, making its' presence felt on the Indian

roads on a regular basis. Since, 1954 (when the first Tata vehicle was

launched) till today, over 3.5 million Tata vehicles ply on the Indian roads.

Today, Tata is a global player having markets in Europe, Africa, South Asia,

South East Asia, Middle East and Australia. This leap in the global market

started from 1961. Once, the export division was established.

Tata Motors initially started by manufacturing trucks by collaborating with

Daimler Benz of Germany form 1954 till 1969. At that point of time, the

trucks that were manufactured were known as Tata Mercedes-Benz Trucks.

However, after the collaboration period was over, the trucks were then called

Tata Trucks.

But it was just the starting for them. Later, in the early 90's they entered the

passenger vehicle segment by launching the Tata sierra, (India's first sports

vehicle) and the Tata Estate. However, the biggest achievement came later in

1998, when Tata developed the first indigenously developed small car of

India called the Tata Indica. And then Tata Indigo was launched in 2002.

The name "Indica" came from the words "India's Car". And very soon Tata

Indica became the most popular car in this segment. Then, later in 2005 they

launched India's first indigenously developed Mini- Truck called the Tata

Ace.

Recently, in order to fulfill its global dream, Tata Motors has acquired the

Daewoo Commercial Vehicles Company, Korea's second largest truck

manufacturer, in the year 2004. In 2005, they acquired 21% stake in Hispano

24


Carrocera, a Spanish bus and coach manufacturer. They have manufacturing

plants in Jamshedpur, Pune and Lucknow. They also have assembly

operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and

Senegal.

The success story of Tata Motors can be based on the facts that they have

excellent foresight, they understand the needs and the wants of their

customers very well, they have a well organized and efficient R&D

department and that they have high aims and standards which are fulfilled

but not at the cost of quality and efficiency.

AREAS OF BUSINESS:

Tata Motors' product range covers passenger cars, multi-utility vehicles and

light, medium and heavy commercial vehicles for goods and passenger

transport.

Passenger car;

The Company launched the compact Tata Indica in 1998, the sedan Indigo in

2002 and the station wagon Indigo Marina in 2004. The next car to be rolled

out will be the Nano, unveiled in January 2008.

Utility vehicles;

The company entered the mini-truck segment in 2005 with Tata Ace. The

commercial vehicle range extends from the light two-tone truck to heavy

dumpers and multi-ax led vehicles in the above 40-tonne segment. Through

the Tata Daewoo Commercial Vehicle Company it offers high horsepower

vehicles of 220 HP to 400 HP for dump trucks, tractor-trailers, mixers and

25


cargo applications.

Research and development:

Tata Motors has over 1400 engineers and scientists in six R&D centers in

India, South Korea, Spain and the UK. The company's R&D facilities

include India's only certified crash-test facility and a hemi-anechoic chamber

for testing of noise and vibration.

Exports:

Tata Motors' vehicles are exported to Europe, Africa, the Middle East, South

and South East Asia and South America. The company has joint ventures

and franchisee operations in Bangladesh, Ukraine, Kenya, Russia and

Senegal.

Associates:

Tata Motors is pursuing growth internationally through exports and

acquisitions. It has a joint venture with Marco polo, the Brazil-based maker

of bus and coach bodies. It has also entered into a joint venture with

Thonburi Automotive Assembly Plant Company of Thailand to manufacture

and market the company's pickup vehicles in Thailand. Tata Motors and Fiat

Auto have entered into an agreement for a Tata license to build a

commercial vehicle at Fiat's facilities in Córdoba, Argentina.

The company has made substantial investments in building a network of

associate and subsidiary companies and joint ventures that complement and

support its business activities. These include:

26


Tata Daewoo Commercial Vehicle Company is a 100 per cent

subsidiary of Tata Motors in the business of heavy commercial

vehicles. It is South Korea's second largest truck maker and the largest

exporter of heavy trucks.

Telco Construction Equipment Company makes construction

equipment and offers allied services. Tata Motors has a 60 per cent

holding; the rest is held by Hitachi Construction Machinery Company,

Japan.

Tata Technologies provides specialized engineering and design

services, product lifecycle management and product-centric

information technology services. It has two operating companies,

INCAT and Tata Technologies.

Tata Motors European Technical Centre is a UK-based 100 per cent

subsidiary engaged in design engineering and development of

products.

Corporate social responsibility :

Tata Motors is a signatory to the United Nations Global Compact. It focuses

on health, education, water management, environment and employment

generation issues in areas where it operates. These continuing initiatives

have received national recognition: Tata Motors was conferred the 'CII-ITC

Sustainability Award 2006 for Significant Achievement on the Journey

towards Sustainable Development' and the 'Golden Peacock Award for

Corporate Social Responsibility'.

Tata Motors has led the Indian automobile industry's anti-pollution efforts

through a series of initiatives in effluent and emission control. The company

27

http://www.tata.com/tata_tech/index.htm

http://www.tata.com/tce_cons_engg/index.htm


introduced emission control engines in its vehicles in India before the norm

was made statutory.

Manufacturing Units:

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

its strong focus on indigenization. This focus has driven the Company to set

up world-class manufacturing units with state-of-the-art technology. Every

stage of product evolution-design, development, manufacturing, assembly

and quality control, is carried out meticulously. Our manufacturing plants

are situated at Jamshedpur in the East, Pune in the West and Lucknow in the

North.

Jamshedpur:

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

spread over an area of 822 acres. It consists of 4 major divisions - Truck

Factory, Engine Factory, Cab & Cowl Factories, and the Novus.

Pune:

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

and Chinchwad (130 acres). It was established in 1966 and has a

Production Engineering Division, which has one of the most versatile tool

28

http://www.tatamotors.com/our_world/?ViewID=2



making facilities in the Indian sub-continent.

Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among

all the Tata Motors locations and was established in 1992 to meet the

demand for Commercial Vehicles in the Indian market.

instead of purchasing a bike will you prefer to go for Nano?

4 4.0 4.0 4.0

15 15.0 15.0 19.0

81 81.0 81.0 100.0

100 100.0 100.0

Cant say

No

Yes

Total

ValidFrequency Percent Valid Percent

CumulativePercent

instead of purchasing a bike will you prefer to go for Nano?

YesNoCant say

Fre

quency

100

80

60

40

20

0

29



INTERPRETATION: 81% of population agrees to purchase Nano instead

of going for bike where as 15% says no and 4 % of them say cant say. So

most of the population would like to go for Tata Nano

Is cost inspires you to go for the nano?

3 3.0 3.0 3.0

12 12.0 12.0 15.0

7 7.0 7.0 22.0

24 24.0 24.0 46.0

54 54.0 54.0 100.0

100 100.0 100.0

not at all important

not important

average

important

highly important

Total


CumulativePercent



highly important

important

average

not important


Fre

quency

60

50

40

30

20

10

0

30


INTERPRETATION: 54% population agrees to satisfy the consumer’s cost

comfortable highly important, where as 24% says important, 12% says not

important, 7% average and 3% says not at all important. So many customers

would like to attractive to buy the Nano car.

Is design inspires you to go for the nano?

2 2.0 2.0 2.0

54 54.0 54.0 56.0

44 44.0 44.0 100.0

100 100.0 100.0

average

important

highly important

Total


CumulativePercent

Is design inspires you to go for nano?

Is design inspires you to go for the nano?

highly importantimportantaverage

Frequency

60

50

40

30

20

10

0

31


INTERPRETATION: 44% of customer Says it is highly important, 54% of

the Nano customer says it is important & only 2% of the customer says it is

Average.

Is mileage inspires you to go for the nano?

4 4.0 4.0 4.0

54 54.0 54.0 58.0

42 42.0 42.0 100.0

100 100.0 100.0

average

important

highly important

Total


CumulativePercent

Is mileage inspires you to go for nano?

Is mileage inspires you to go for the nano?


Fre

quency

60

50

40

30

20

10

0

32


INTERPRETATION: 54% of the customers say the mileage is important,

whereas 42% of the Nano Customers says it is highly important, & 4% of

the Customer says the Mileage is Average.

Is comfortab inspires you to go for the nano?

1 1.0 1.0 1.0

3 3.0 3.0 4.0

65 65.0 65.0 69.0

31 31.0 31.0 100.0

100 100.0 100.0

not important

average

important

highly important

Total


CumulativePercent

Is comfortab inspires you to go for the nano?

highly important

important

average

not important

Fre

quency

70

60

50

40

30

20

10

0

33


INTERPRETATION: 65% of the customers are says they are comfortable,

where as 31% of the customers say they are highly comfortable, 3% of the

customers are not comfortable.

Is engine capacity inspires you to go for TATANano

3 3.0 3.0 3.0

59 59.0 59.0 62.0

38 38.0 38.0 100.0

100 100.0 100.0

average

important

highly important

Total


CumulativePercent

Is engine capacity inspires you to go for TATANano


Fre

quency

70

60

50

40

30

20

10

0

34


INTERPRETATION: 59% of the customers are says they are Engine capacity, where as 38% of the customers say they are highly imp, 3% of the customers are average.

Is Offers inspires you to go for the nano?

2 2.0 2.0 2.0

6 6.0 6.0 8.0

61 61.0 61.0 69.0

31 31.0 31.0 100.0

100 100.0 100.0

not important

average

important

highly important

Total


CumulativePercent

35


Is Offers inspires you to go for nano?

Is Offers inspires you to go for the nano?

highly important

important

average

not important

Fre

quency

70

60

50

40

30

20

10

0

INTERPRETATION: 61% of the customers are says they are offer, where as 31% of the customers say they are highly comfortable, 2% of the average and 6% of the customers are not important.

36


Is brand image inspires you to go for the nano?

1 1.0 1.0 1.0

1 1.0 1.0 2.0

58 58.0 58.0 60.0

40 40.0 40.0 100.0

100 100.0 100.0

not important

average

important

highly important

Total


CumulativePercent

highly important

important

average

not important

Frequency

70

60

50

40

30

20

10

0

INTERPRETATION: 58% of the customers are says important they are

brand image, where as 40% of the customers say they are highly imp, 1% of

the customers are not imp and average 1%.

37


Is availability inspires you to go for the nano?

1 1.0 1.0 1.0

2 2.0 2.0 3.0

3 3.0 3.0 6.0

70 70.0 70.0 76.0

24 24.0 24.0 100.0

100 100.0 100.0


not important

average

important

highly important

Total


CumulativePercent

Is availability inspires you to go for the nano?

highly important

important

average

not important


Fre

quency

80

60

40

20

0

INTERPRETATION: 70% of the customers are says they are availability,

where as 24% of the customers says they are highly available, 2% of the

customers are not available, 1% of the not at all important and 3% of the

average.

38


3.

do you like to give this car to your children

81 81.0 81.0 81.0

19 19.0 19.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

do you like to give this car to your children

YesNo

Fre

quency

100

80

60

40

20

0

INTERPRETATION: 19% of the customer says that they are going to give a car to there children, and 81 % of the customers says that there not ready to give a car to there children.

39


do you like to use this car for your family purpose

60 60.0 60.0 60.0

40 40.0 40.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent



YesNo

Fre

quency

70

60

50

40

30

20

10

0

INTERPRETATION: 60% of the customers says that they are not ready to use the car for family purpose, where as 40 % of the customers says that they are ready to use the car for family purpose.

40


do you like to use this car for your business purpose

62 62.0 62.0 62.0

38 38.0 38.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

Yes

No

INTERPRETATION: 62% of the customers are not ready to use the car for

business purpose; where as 38% of the customers are ready to use the car for

business purpose

41


Do you like to use this car for your depending on sitution

41 41.0 41.0 41.0

59 59.0 59.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

INTERPRETATION: 59 % of the customers say that they are ready to use

the car in situation, where as 41% customers say that they are not ready.

42


can low level people buy the Nano

91 91.0 91.0 91.0

9 9.0 9.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

can low level people buy the Nano

YesNo

Fre

quency

100

80

60

40

20

0

INTERPRETATION: The Survey report shows that 9% of the people say

low level people can buy the car, where as 91% of the people say they can

not buy the car.

43


can middle level people buy the Nano

9 9.0 9.0 9.0

91 91.0 91.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

can middle level people buy the Nano

YesNo

Fre

quency

100

80

60

40

20

0

44



middle level people can buy the car, where as 9% of the people say they can

not buy the car.

can high level people buy the Nano

50 50.0 50.0 50.0

50 50.0 50.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

can high level people buy the Nano

YesNo

Fre

quency

60

50

40

30

20

10

0

45



middle level people can buy the car, where as 50% of the people say they

can not buy the car.

would you like prefer maruti 800 to buy

59 59.0 59.0 59.0

41 41.0 41.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

46


would you like prefer maruti 800 to buy

YesNo

Fre

quen

cy

70

60

50

40

30

20

10

0

INTERPRETATION: 41% of the people says that they would like to prefer

Tata Maruti800 car to buy, where as 41 % of the people says they wont

prefer car to buy.

would you like prefer Tatanano to buy

17 17.0 17.0 17.0

83 83.0 83.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

47


would you like prefer Tatanano to buy

YesNo

Fre

quen

cy

100

80

60

40

20

0


Tata Nano car to buy, where as 17 % of the people says they wont prefer car

to buy.

would you like prefer Indica to buy

89 89.0 89.0 89.0

11 11.0 11.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

48


would you like prefer Indica to buy

YesNo

Fre

quen

cy100

80

60

40

20

0


Indica car to buy, where as 89 % of the people says they wont prefer car to

buy.

would you like prefer other cars to buy

98 98.0 98.0 98.0

2 2.0 2.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

49


would you like prefer other cars to buy

YesNo

Fre

quen

cy120

100

80

60

40

20

0


others car to buy, where as 98 % of the people says they wont prefer car to

buy.

FINDINGS:

Promotional activities are not carried out

Major customers are professional and middle class people

There is more scope for TATA Nano car and about the TATA group

Tata is giving very good services for their customers

50


SUGGESTION:

Employees should be increased in number to concentrate more

attentively towards customer.

Giving good service and quick respond towards the complaint is also

increasing the sales and usage.

Finally I hope TATA service is very good better then the other car

companies.

The Hubli-Dharwad market is very large in compare to the market as

well as it is more challenging market.

It is necessary for all the car major companies to provide those

products, which are easy to available and affordable to the consumers.

It is right that the profit margin is very low in the Nano products, but

at the same time the market size is much large in the Hubli-Dharwad

cities, as well as in India the companies can improve their product by

increases the costs on the advertising because the Hubli-Dharwad

consumers need attractive colors and service. Application of 4A* is

also a major task for the major companies in this area.

51


CONCLUSION:

There is wide scope for TATA Nano car because now days the standard

of living style is increasing day by day and the car rate also very less

compare to the other A’s segment cars so people are interested to buy the

Nano car.

As I analyzed the various data based on questionnaire, a fact has come into

light that Tata’s products are the most known and popular. Cheaper cost,

brand loyalty, good publicity and advertisement, the Hubli-Dharwad

consumers generally prefers the products of Tata’s in all segments. Accept it

people firstly prefer for good quality and comparatively low prices products.

BIBLIOGRAPHY:

Reference Books:

Marketing Management - Philip Kotler, K.D.Basava

Websites:

www.tatamotors.com

52


www.Indianautomobiles.com

www.carawle.com

Others:

News Paper & Magazines

53

Potential Market for TATA Nano

Documents

tata vehicles

tata motors vehicles

automobile industry

tata nano methodology

indian automobile industry

tata motors presence

tata nano objectives

various1 potential market