Project on (Tata Motors)

A REPORT ON

COMPARATIVE STUDY ON TATA SFC 407 PICKUP AND MAHINDRA MAX

PICKUP AND ACCEPTANCE OF TATA 407 PICKUP AMONG CUSTOMERS.

for

TATA MOTORS

Submitted to the

Department of Management Studies

in partial fulfillment of the

Post Graduate Diploma in Management

Under the Guidance of

DR. DEEPA PILLAI

by

SATYA BRAT MAHALIK

S C M SS C M SS C M S

School of Communication and Management Studies

SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.

November - 2012

EXECUTIVE SUMMARY

This project is on comparative study of Tata SFC 407 pickup and M&M max pickup

and acceptance of Tata SFC 407 among customers in LCV (Light Commercial

vehicles) segments. Comparative is based on Technical and commercial features of

vehicles and feedback from customers. A sample size of 50 respondents was taken

both from owners and drivers. Secondary data from various sources like journals,

company articles, magazines, books and through net.

Commercial vehicles are used for transporting of goods as well as passengers. Light

commercial vehicles(LCV) are used exlusively for transporting goods. Those

vehicles having good mileage than short commercial vehicles, strong body looks,

around three to four tons of loading capacity, good greadebility and good

maneuverability( easily turn in narrower roads). Generally small and medium trucks

are coming in this area.

The findings showed that, the consumer’s who owned small trucks basically wanted

good performance, after sales service, mileage and a better payload at their budget, a

less expensive one. The maximum needs M&M pickup vehicles full fills whereas,

Tata 407 pickup only full fills engine durability. So, company needs to work upon

these things. Rsearch says that, their is no awareness of Tata 407 pickup among

customers and company needs to improve the technical issues of vehicle as soon as

possible. There is a big competition going on between Tata Motors and Mahindra &

Mahindra in Kerala auto market. So, it is very necessary for Tata Motors to keep pace

with it.

Survey was conducted in Cochin area almost all the places covered for data

collection.

ACKNOWLEDGMENTS

This project is submitted in partial fulfillment of the requirement of PGDM

program of SCMS-COCHIN.

I would like to extend my sincere gratitude to Dr. V Raman Nair, Director,

SCMS-COCHIN, Prof. K.J. Paulose, Dean, Management Studies, SCMS-

COCHIN and Mr.Rahul Bose.(Area Manager, Tata Motors) for

permitting me to undertake this project.

I feel it expedient to express my profound indebtedness and sincere thanks to my

company guide Mr. Sony George Pynadath(Territory sales Manager) for the help

& guidance I received from him during this project. I am thankful to him as his

constant encouragement and industry insights were instrumental in my learning

process.

I would also like to thank my respected faculty guide Dr. Deepa Pillai for

her constant support & invaluable suggestions. It was because of her that this project

became a learning experience for me.

I thank all the persons who have co-operated with me in the survey and for their

participation in the completion of the project. This project would also help me in the

future as it has taught me the factors that have to be kept in mind while investing in

any of the investment strategies available.

I express my gratitude to each and everyone involved in making this project

successful.

SATYA BRAT MAHALIK

AUTOMOTIVE INDUSTRY:-

Automobile sector is ever green and much profitable sector in world. Now it is

booming like prices in India especially. Before 5-6 years the salary range in

multinational companies was very low as compared to today's salary. This is because

of high productivity and fulfillment of demand by the multinationals and that is why

they are earning more profit by selling their products, projects and services to U.S.

and other countries in international market at high prices. 

The automobile sector is also playing very vital role in growth of Indian economy.

The increasing demands of bikes, cars and various heavy vehicles for transport and

carriage purpose respectively are very essential requirement for today's business era

and especially then, when we are facing big challenges by mode of competition in the

era of globalization. 

If we go through the concept of National Income and considering the per-capita-

income of Indians, we are getting that it is increasing in a speedy and in proper

growth oriented way.  As the government gets ready with the Budget for 2012-13,

there has been speculation that higher taxes could be imposed on diesel passenger

vehicles as the subsidized fuel has been diverted for personal use by the affluent.

Apprehending imposition of higher tax on diesel vehicles, automobile industry body

SIAM has said such a move will "stigmatise" diesel technology which will be very

unfair to the sector.

"There is a fear in the auto industry that some ad hoc tax may be levied on diesel

vehicles. If that is done it will stigmatize the diesel technology which will be very

unfair to the industry," Society of Indian Automobile Manufacturers (SIAM) Senior

Director Sugato Sen said.

OVER VIEW OF THE INDIAN AUTOMOBILE INDUSTRY

One of the major industrial sectors in India is the automobile sector. Subsequent to

the liberalization, the automobile sector has been aptly described as the sunrise sector

of the Indian economy as this sector has witnessed tremendous growth. Automobile

Industry was delicensed in July 1991 with the announcement of new Industrial

policy. The passenger car industry was, however, delicensed in 1993. No Industrial

license is required for setting up of any unit for manufacture of automobiles except in

some special cases. The norms for Foreign Investment and import of technology have

also been progressively liberalized over the years for manufacture of vehicles

including passenger cars in order to make this sector globally competitive. At present

100% Foreign Direct Investment (FDI) is permissible under automatic route in this

sector including passenger car segment. The import of technology or technological

up gradation on the royalty payment of 5% without any duration limit and lump sum

payment of USD 2 million is also allowed under automatic route in this sector. With

the gradual liberalization of the automobile sector since 1991, the number of

manufacturing facilities in India has grown progressively.

The cumulative production of automobile for April-December 2011 registered a

growth of 14.94 percent over same period in 2010. Production in December 2011

increased by 10.91 percent year on year. Automotive Industry comprise of

automobile and auto components sectors and is one of the key drives of the national

economy as it provides large scale employment, having a strong multiplier effect.

Being one of the largest industries in India, this industry has been witnessing

impressive growth during the last two decades. It has been able to restructure itself,

absorb newer technology, align itself to the global developments and realize its

potential. This has significantly increased automotive industry’s contribution to

overall industrial growth in the country. The turnover of auto component industry

stood at Rs. 1821.27 billion (USD 39.9 billion) for the previous April 2010 to March

2011, registered a growth of 34 percent over the previous year.

Automobile industry divided into four categories 1-two wheelers, 2-three wheelers,

4-passenger vehicle and 5-commercial vehicles. Under two wheelers motor cycle,

scooters, mopeds come. Under commercial vehicle ICV- Integrated commercial

vehicle, MCV- Medium commercial vehicle, HCV- heavy commercial vehicle

comes. LCV- Light commercial vehicle comes under ICV category.

Indian auto industry: Among the top 10 in world

Two Wheelers- 2nd

Small Cars- 3rd

Commercial Vehicles- 5th

Automobile Industry – A Global Hub

• 15 manufacturers of passenger cars and multi-utility vehicles,

• 9 manufacturers of commercial vehicles,

• 16 manufacturers two/ three wheelers,

• 14 manufacturers tractors,

• 5 manufacturers of engines.

Some growth forecasts for Indian auto industry

• The Passenger Vehicle market of India will even cross Japan by selling about

5 million Vehicles by 2017-18.

• The Indian auto exports will be upto $5.62 billion in the year ending

March 2011 and the same will grow to $17.64 billion in 2015-16.

• India’s share in global auto exports may also triple by 2016.

• India’s passenger vehicle production projections:

In 2010 – 2.6 million Vehicles

By 2015 – 5.1 million Vehicles

By 2020 – 9.7 million Vehicles

Sources: -SIAM, ACMA & FICCI

Investment plan of automobile industry

Auto Industry is expected to invest up to Rs 80,000 crore in fresh capacity in the next

four years.

• Major investments will be done by:-

A.) Tata motors - Rs 8,000 Crore.

B.) Maruti Suzuki – Rs 3800 Crores

C.) Daimler India - Rs 3,500 Crore.

D.) Toyota - Rs 3200 Crores.

These investments by automakers is set to trigger expansion of capacities by

component Suppliers and the components industry will also invest Rs 54000 crores

up to the end of 2011.

Future technological demands

Fuel

Efficiency

Emission

Reduction

Safety &

Durability

Cost

Effectiveness

Innovative

Features

SEGMENT WISE MARKET SHARE IN 2010-2011

TWO WHEELERSTHREE WHEELERSCOMMERCIAL VEHICLEPASSENGER VE-HICLE

This graph shows around 74%

market share hold by two wheelers. Then passenger vehicles around 16%, then three

wheelers and commercial vehicles each 4%. It means people have more demand for

two wheelers than cars and other passenger vehicles.

TWO WHEELERS 74.40%

THREE WHEELERS 4.40%

COMMERCIAL

VEHICLE 4.40%

PASSENGER

VEHICLE 16.70%

M& HCV LCV UTILITY CARS

34,469 79,157

15,098 53,647

51,892

80,633

10,905

58,729

44,760

58,455

8,931

67,286

PRODUCTION2012-13 2011-12 2010-11

M& HCV46%

LCV32%

UTILITY4%

CARS18%

2012-2013

GROWTH RATE OF DIFFERENT SEGMENT IN PERCENTAGE

From these graphs it can be infer that, comparing to previous years, Medium and

Heavy commercial vehicles are produced very less and that is 46% less than previous

years. Same also to cars segment 18% less produced this year but Light commercial

vehicles are produced more than previous years that is 32% more. It means, light

commercial vehicles are on demand. Utility vehicles also grown up to 4%. According

to company’s annual report 2011-2012 it has given that, Global sales of passenger

cars and commercial vehicles grew by 3.6% and 5.8% respectively during the year.

In the United States, where there are clear signs of growth, sales increased by 9.8%

for cars and 14% for commercial vehicles, whereas in Western Europe and the U.K.,

where there has been only marginal growth, sales declined for cars but increased for

commercial vehicles. In Asia, the main drivers of growth have been China and India,

which have collectively registered growth, albeit at lower levels than the previous

year.

Challenges that Indian auto industry has to address

1. Availability of raw material Commensurate with growth.

2. Availability of auto grade technically advanced Material.

3. Favorable and predictable business environment.

4. Infrastructure development availability of cost effective capital.

5. Scale up Capacities and absorbing newer technologies

6. Cost competitiveness Improve productivity of both labour and capital

COMPANY PROFILE

The company was established in 1935 as a locomotive manufacturing unit and

later expanded its operations to commercial vehicle sector in 1954 after forming a

joint venture with Daimler-Benz AG of Germany. Ratan N Tata is the chairman

of Tata Sons, the Tata promoter company. Tata Motors Ltd is a multinational

corporation headquartered in Mumbai, India. Part of the Tata Group, it was

formerly known as TELCO (TATA Engineering and Locomotive Company). Tata

Motors has consolidated revenue of USD 16 billion after the acquisition of British

automotive brands Jaguar and Land Rover in 2008. It is India's largest company

in the automobile and commercial vehicle sector with upwards of 70% cumulative

market share in the domestic commercial vehicle segment, and had a 0.81% share

of the world market in 2007.Second largest manufacturer of commercial vehicles

in the world. The company is the world’s fourth largest truck manufacturer, and

the world’s second largest bus manufacturer. In India Tata ranks as the leader in

every commercial vehicle segment, and is in the top 3 makers of passenger cars.

The company is the world's fourth largest truck manufacturer, and the world's

second largest bus manufacturer. The company's 24,000 employees are guided by

the vision to be "best in the manner in which we operate, best in the products we

deliver, and best in our value system and ethics. “Tata Motors is also expanding

its international footprint, established through exports since 1961. Tata Motors is

committed to improving the quality of life of communities by working on four

thrust areas – employability, education, health and environment. The company’s

manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad

(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an

industrial joint venture with Fiat Group Automobiles at Ranjangaon

(Maharashtra) to produce both Fiat and Tata cars and Fiat power trains. The

company is establishing a new plant at Sanand (Gujarat).

BRANCHES IN INDIA:-

Northern Region

New Delhi, Chandigarh, Jaipur, Lucknow

Western Region

Mumbai, Pune, Nagpur, Indore, Ahmadabad, Raipur

Eastern Region

Kolkata, Orissa, Patna

Southern Region

Banglore, Hydrabad, Cochin, Chennai, Madurai, Salem, Coimbatore.

(ORGANISATIONAL HIERARCHY)

COMPETITORS:-

MAJOR PLAYERS IN TWO WHEELER- Honda, Suzuki, Yamaha, Bajaj, TVS

MAJOR PLAYERS IN PASSENGER VEHICLE- Ford, GM, Toyota, Mercedes,

Hyundai, Volkswagen, Nissan and BMW.

MAJOR PLAYERS IN CV-Mahindra and Mahindra, Ashok Leyland, Eicher, Mazda

These are the major players in different segments. Mahindra and Mahindra is the

major competitor of Tata Motors in LCV(Light commercial Vehicle) segment.

TATA MOTORS MILESTONE (12 YEARS DATA

COLLECTED)

YEAR 2000- Launch of CNG Buses.

Launch of 1109 vehicle- Intermediate CV (commercial

Vehicle).

YEAR 2001- Launch of CNG Indica.

Launch of the Tata Safari EX.

Exits joint venture with Daimler Chrysler.

YEAR 2002- Launches of Tata 207 DI.

500000th passenger vehicle rolled out.

Launches of EX series in CV.

Launches of Tata Indigo.

YEAR 2003- On 29th July, JRD Tata’s birth anniversary Tata Engineering

becomes

Tata motors limited.

Tata 407 EX turbo Launched.

YEAR 2004- Tata motors completes acquisition of Daewoo Commercial

Vehicle

Company.

Tata LPT 909 EX launched.

Tata Motors lists on the NYSE.

YEAR 2005- Branded buses and coaches, Star buses and Globus launched.

Tata Ace, India’s first mini Truck launched.

The power packed Safari Dicor is launched.

YEAR 2006- Tata Motors vehicle sales in India cross four million mark.

Tata Motors unveils new long wheel base premium Indigo and

X -over concept at Auto expo 2006.

Tata Motors and Marcopolo, Brazil, announces Joint venture to

Manufacture fully built buses and coaches for India and abroad.

YEAR 2007- Launches of winger, India’s only maxi-van, Indica V2 launched

Fiat group and Tata Motors announces establishment of Joint

ventures

in India.

Rollout of the one million passenger car off the India platform.

Rollout of 100000th Ace.

YEAR 2008- Latest common rail diesel offering the India V2 dicor, launched

YEAR 2009- Tata Marcopolo Motors, Dharwad plant begins production.

Tata Motors launches Nano. The people’s car.

Tata Motors launches the next generation all new Indigo Manza.

Tata Motors Introduces the all new Tata 407 pickup, Tata super

Ace

and Tata AceEX .

First JLR showroom opens in India.

YEAR 2010- Tata Ace becomes India’s first 1lakh brand in goods commercial

Vehicle.

Jaguar and Land Rover announces opening of its dealership in

new

Delhi.

Tata Motors launches Magic IRIS.

YEAR 2011- Tata Motors launches Tata Divo luxury coach and Tata Star bus

Ultra.

Tata all new Tata sumo gold arrives.

The new Range Rover Evoque launches in India.

Tata Motors launches the Tata Manza and the Tata Prima in

South

Africa.

YEAR 2012- Tata Motors signs co-operation agreement with DRB-HICOM’S

Defence technology (DEFTECH).

Tata Motors showcase Anti-Terrorist Indoor combat Vehicle

concept at DEFEXPO India 2012.

Tata Motors unveils Tata- Safari storm, Tata Ultra, Tata LPT

3723 new vehicles at Auto expo 2012.

COMPANY’S PRODUCT PROFILE

Passenger cars and utility vehicles 

Tata Sumo:-

Tata Sumo is a multi-utility vehicle produced by India's largest automotive

company Tata Motors. The vehicle was launched in 1994 and was one of the first

passenger vehicles designed in India. The Sumo is based on Tata Motors' pick-up

platform and thus shared most of its other mechanics with other Tata vehicles like

the Tata Sierra, Tata Estate.

Tata Sumo Grande:-

Tata launched the Sumo Grande on January 10, 2008 powered with a new

generation 2200 cc 120 bhp (89 kW;122 PS)

DICOR (Direct Injection Common Rail) engine. It features completely different

body work. It lies below the Tata Safari in Tata's product portfolio. The Sumo

Grande was designed in the UK by Concept Group International LTD.

Tata Safari:-

Released in 1998, the Tata Safari was the country’s first premium, indigenous

thoroughbred 4-door Sports Utility Vehicle (SUV), designed, developed and

manufactured entirely in India. The Safari got a huge response from car owners,

becoming very popular in India. It catalyzed the SUV segment with its rugged

looks and contemporary styling, adding luxury to powerful of-road capabilities.

Designed to provide superior passenger comfort, the Safari cabin features extra

legroom, high seating and plush interiors, making it an easy drive on and of the

road.

Tata Indica:-

The Tata Indica, India’s first indigenously made passenger car, was built to

deliver on the promise of 'More car per car'. It set standards for interior space and

value for money. As a hatchback Indica was originally intended to be a single-

user car. It was adapted to it Indian needs, i.e. to be a family car. Indica’s

engineering created room for three people in the back seat, provided extra leg

space, and itted a robust rear suspension system. As a result, the Indica has

become a best-selling car in some of the most competitive hatchback markets

worldwide.

Tata Vista

Tata Indigo:-

In 2002, Tata introduced India's competitive indigenous sedan: the Indigo.

Designed in-house, it is a sedan version of the Tata Indica, with which it shares a

large number of parts. Launched with a Turbo diesel and Petrol engines, An

intercooled 'TDI' Engine, and Dicor engines were added. A minor redesign was

done in 2006 which added dual chamber headlamps and different bumpers. It was

superseded by Tata Indigo Manza in 2009.

Tata Manza

Tata Indigo Marina

Tata Winger

Tata Magic

Tata Nano:-

The Nano provides a safe and affordable alternative to two and three-wheeler

owners in India. The lowest cost passenger car in the world, the price of the Nano

was optimized by reducing the amount of steel used in its construction. Launched

in 2009, the car was hailed as a path-breaking initiative, creating the Micro

compact segment in the Indian Passenger Car industry. A refreshed version of the

Nano was launched in 2012, equipped with a more powerful engine and a greater

fuel efficiency of 25.4 km per liter, improving its record as India's most fuel

efficient petrol car.

Tata Xenon XT

Tata Aria

Tata Venture

Tata Iris

Concept vehicles

Aria Roadster

Aria Coupe

 Tata Indigo Advent

 Tata Xover

 Tata Cliffrider

 Tata Elegante

 Tata Prima:-

Tata Prima is a range of heavy trucks produced by Tata Daewoo, a wholly owned

subsidiary of Tata Motors of India. It was first introduced in 2008 as the

company's 'global' truck. The trucks have a combined loading capacity of

40 tonnes, ideal for heavy duty shipment. The interior of the Prima is equipped

with modern features like GPS, air conditioning, 4-way adjustable driver and co-

driver seats, etc.

 Tata Versa

 Tata Essota

 Tata Pixel

 Tata Sunny

Commercial vehicles

Tata Ace:-

With the Ace line of trucks, Tata Motors created a new segment in the CV

category – the Small Commercial Vehicle (SCV). The SCV segment targeted

three-wheeler drivers, who aspired to graduate to the quality and safety of four-

wheelers. The Ace offers superior safety, versatile performance in varied

conditions, ease-of-maintenance, style, comfort and cost-effectiveness. Launched

in 2005, the Tata Ace, India's first four-wheel mini truck changed the face of sub

1-tonne goods-carriage in India forever. It sold 100,000 in its first 20 months.

Tata Ace Zip:-

Tata Motors launched the Ace Zip micro-truck in May 2010 for just under Rs 2

lacs, Rs 200,000 . The new vehicle was positively received by the users. The

initial sales figures are motivating. The Ace Zip has yet again created another

historical event in the commercial vehicle industry. TATA Ace Zip is produced in

Pantnagar plant of Tata Motors.

Tata Super Ace:-

TATA SUPER ACE is powered by a four cylinder, 475 IDI turbo intercooled

diesel engine producing 70 bhp, power steering that translates to a reasonably

powerful small truck with a carrying capacity of one ton, and can attain a top

speed of 125 kmph. The load area is larger at (LxW) 8.63 X 4.79 feet. Loading

capacity is 1 Tonnes. The Tata Super Ace looks slightly different with a different

grille. The company says that the Super Ace offers a lot more by way of driver

comforts such as lockable glovebox, Bucket seating at front, provision for mobile

charger, rear view mirrors on both sides and sun visor. The Super Ace comes with

power steering. Tata Super Ace comes with a 12 month/50,000 km warranty.

TATA MOTORS sold more than 30,000 Super Ace in the domestic market. 

Tata TL/Telco line/207 DI Pickup Truck:-

The second generation Tata 207 DI was launched in 2002.It is a Pick Up vehicle

designed for both urban and rural use. The TATA 207 DI is powered with the

same engine as in TATA 407 and is India's first 1.13 Ton payload Pick Up with

Power Steering. Its 60 HP - 3-litre (2956cc) [58 BHP @ 3200 RPM 16.55 kgm @

1500 RPM] engine minimizes fuel consumption and maximizes driving pleasure

and refinement. In 2005, Tata TL 4x4 was released in Indian market. It was Tata's

first (and India's second) offering in the lifestyle pick-up truck segment. It was a

spruced up version of Tata's hugely successful Tata 207 DI pick-up which was

popular with commercial transport operators.

Tata 407 Ex and Ex2:-

With close to 75% market share, the 407 enjoys about 55% first-time owners,

reinforcing self-employment. Since its launch 25 years ago, the 407 has sold over

500,000 units. Launched in 1986, the Tata 407 family contributes seven out of

every 10 vehicles sold in the Light Commercial Vehicle (LCV) category in India.

The Tata 407 was among the first in the LCV category, which was designed for

Indian markets, characterized by overloading, inhospitable terrains, focus on fuel

deficiency and low operating costs. The 407 platform was extended to meet

diverse needs of goods and people movement.

Tata 709 Ex

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1512 (Medium bus chassis)

Tata 1612/1616 (Heavy bus chassis)

Tata 1618 (Semi Low Floor bus chassis)

Tata 1623 (Rear Engined Low Floor bus chassis)

Tata 1518C (Medium truck)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Branded Buses for city, inter city, school bus and standard

passenger transportation)

Tata Divo (Hispano Divo; Fully built luxury coach)

Tata CityRide (12 – 20 seater buses for intra-city use)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8×2)

Tata 3516 (Heavy truck)

Tata 4018 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6×4)

Tata Novus (Heavy truck designed by Tata Daewoo)

Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4×4)

Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions

Tata LPTA 713 TC (4×4)

Tata LPT 709 E

Tata SD 1015 TC (4×4)

Tata LPTA 1615 TC (4×4)

Tata LPTA 1621 TC (6×6)

Tata LPTA 1615 TC (4×2)

Tata Land rover 1515 F

.

SURVEY FINDINGS:-

Survey was conducted in Cochin area. Data collected from fifty respondents from

different places and for more information data were collected from dealers, sales

executives, brokers and company staffs.

The purpose of survey was to collect feedback regarding Tata SFC 407 Pickup and

Mahindra max Pickup from customers. On the basis of customers feedback for both

the vehicles a comparative study has done.

We went to…50 Customers

2 brokers

2 dealers

5 DSEs

WHAT DO THEY

HAVE TO SAY

ABOUT PICKUPS?

These are some of the concepts regarding Mahindra max collected from customers

during survey. They told that, pickup means Mahindra max, mileage they are getting

thirteen to fourteen which is better than any LCV vehicles, 2.5 loading capacity, and

price also low, EMI also low and vehicle is also small. So they told that, overall it is

a nice vehicle.

Voice of stake holders…Top of the mind reactions…

Pickup means

MAHINDRA MAXX

Loads upto 2.5T

Fuel mileage of upto 13

KMPL

EMI of around Rs

11,000/-

Price of 4.9 Lacs

These are some of the limitations collected during survey and most of the limitations

regarding Mahindra max collected from Tata sales executives and dealers.

Limitation of a pickup…

MILEAGE OF 10.5 -11 KMPL

Unstable at higher loads

Front end lifting at

2.5T + loads

Not good at high loads

in ghats

Forego opportunity for longer

leads

Maintenance is higher

after 4 years

Penalty of Rs 2000/- per

month due to overload

1T

3T

2T

2.5T

1.5T

3.5T

0.5T

Free space

Rated load operations under pressure

ENCROACH

MAXXBRAND

NAME

SFC 407BRAND

NAME

MAXX SFC 407

SFC 407 PURECLAIM

RXWT FIGHT BACK

A befitting game plan…

Payload

With lots of load

What is 407 pick up?

CHALO WAQT KE SAATH…..

This is one of the new vehicle in LCV (light commercial vehicle) segment launched

by the Tata Motors in the year 2009. It has so many competitors in Kerala like-

Mahindra & Mahindra, Ashok Leyland, Mazda. According to June 2012 report

company sold around 75,151nos. in India but according to Kerala office company

sold around 300nos. of vehicles in Kerala market. So, from this report it can clearly

Front Cab same as that of 407Rear to match utility of pickups

407 Pick up

The brand says it all

identified that, for Tata 407 pickup Kerala market is down. They are creating

awareness about that. This vehicle is competing with Mahindra’s maxx pickup and

DI 3200.

Why is it a perfect pick up?

Here, it can clearly identify that, which vehicle is shorter in length. It is plus point of

Tata 407 pickup that, it can easily move in a narrow road.

5219

4700

INDIA’S shortest pickup

407 pickup’s overall length is lesser

Dimensions in mm

5.5 m

6.35 m

Lower Turning circle radius gives

better maneuverability in narrow lanes

In this picture it has shown that, Tata 407 pickup’s ground clearance is 970mm and

Mahindra maxx’s 990mm. Which means, one pearson can easily load and unload the

things on the vehicle in Tata 407 pickup. The difference is not much but it adds

value.

970 mm

990 mm

Lower loading platform height

for ease of loading and unloading Dimensions in mm

In this comparison it has shown that, though Tata 407 pickup is shorter in length wise

than Mahindra maxx but in width case it is giving large space. So, one person can

load more things.

1905

Still it gives the more loading area than pickup

2540

1705

India’s SHORTEST pickup with LARGEST Load body

Area :4.75 Sq.m Area: 4.25 Sq.m

Specification 407 Pickup M&M PU 407 pickup relative postionGVW ( Kgs) 4450 2820

Payload ( Kgs) 2250 1160

Overall Length (mm) 4700 5219Occupies less area than a pickup

Turning circle diameter ( m) 11 12.7Manuevarability in narrow lanes

Height of loading platform from floor (mm)

970 990 Ease of loading & unloading

Loading platform L X W(mm) 2533x1905 2540x1700Loading area more than pickup

Tyre size 7.00 x16 15" radialBigger tyre size for longer life

Clear 1.1T Payload advantage. No issue of overloading

Summary of comparisions

INDIA’S SHORTEST pickup with LARGEST load body & HIGHEST payload

Tata has SFC 407 EX vehicle which is bigger and better in every features than Tata

407 pickup. So, in new 407 pickup they put every features what SFC 407 EX has. So,

now Tata 407 pickup can perform as a SFC 407 EX.

407 PickupThe brand says it all

SFC 407/31

Tata 497 TC

GBS 18

240 mm dia

SFC cab

407 Pickup

Same

Same

Same

Same

Yet it has retained goodness of 407…

In this comparative study it shows that, Mahindra is giving free service to customers

in each 5000kms covered by the customer. So, in three servicing period a customer

has to cover 5000kms for first service then 10000kms and in 15000kms. But for Tata

407 pickup it gives first free service in each 20000kms covered by the customer.

Means, first service in 20000kms then 40000kms and in 60000kms. Almost double

than the Mahindra maxx vehicle where customers will be happy.

20000 Kms5000 Kms

Guaranteed savings…

One for every four visits

Service interval

THE EXTRA REVENUE ADVANTAGE:-

From this table it can clearly seen that, Max vehicles incurs more expenses than Tata

407 pickup. Everything is same but in maintenance cost and tyres cost Tata 407

pickup has less expense. So, customer can enjoy a greater profit margin.

Max 407 Pickup

2.5T 2.5T

175 175

4300 4300

38000 38000

14742 15480

11400 11400

2000 500

1750 1400

29892 28780

8108 9220

Rupees

Load

Distance per day

Distance per month

Total revenue

Details of expenses

Diesel

EMI

Maintenance

Tyres

Penalty

Total Expenses

Net

Prevailing market loads

Max 407 Pickup

2.5T 2.5T

175 175

4300 4300

38000 38000

14742 15480

11400 11400

2000 500

1750 1400

29892 28780

8108 9220

Rupees

With Long leads

Load

Distance per day

Distance per month

Total revenue

Details of expenses

Diesel

EMI

Maintenance

Tyres

Penalty

Total Expenses

Net

Prevailing market loads

Max

No possibility

407 Pickup

2.5T

225

5600

46000

19734

11400

500

1400

-

33034

12966

407 Pickup customer earns atleast

Rs4850/- EXTRA per month

MAX 407 Pickup Difference

Vehicle cost 489000 485000 4000

Down payment ( 15%) 73350 72750 600

Insurance 14000 14000 0

Registration 3000 3000 0

Road Tax: Life tax for MAX; Annual tax for 407

47000 10000 37000

Total Iniital Investment 137350 99750 37600

…lower in intial investment too!!!

INDIA’S SHORTEST pickup with HIGHEST PAYLOAD is…

DATA ANALYSIS:-

Vehicle_model * Which_segment Crosstabulation

Count

Which_segment Total

market

load

captive

Vehicle_mod

el

tata 407 pu 11 16 27

MAHINDRA

max pu8 15 23

Total 19 31 50

promise to customer

Lesser maintenance

Higher payload

Long lead @ 2.5T

Double the life

Lower DP

SAME EMI

INTERPRETATION:-

From the above graph it can infer that, all the three vehicles are mostly used in

captive segment than market load. And in case of market load segment Tata 407 PU

vehicles are more used than Mahindra Max PU. We can infer that, Tata 407 PU can

be used in both segments very well then, Mahindra max PU. It can be suggest that,

there is big opportunity in this area. Tata 407 PU has great advantage in this area.

Research says that, Tata 407 PU got strong body look and that is the advantage for

Tata 407 PU.

Vehicle_model * Avrg_kilomtr_perday Crosstabulation

Count

Avrg_kilomtr_perday Total

50-100 100-150 150-200 200-250

Vehicle_mod

el

tata 407 pu 2 3 14 8 27

MAHINDRA

max pu0 7 10 6 23

Total 2 10 24 14 50

(FIG-1)

INTERPRETATION:-

From the above graph it can be interpret that, major number of drivers drives their

vehicles from 150km to 200km. It means every day on an average vehicle runs upto

200kms. And then only few drivers’ runs their vehicle 200 to 250kms.It means Tata

407 PU customers drives their vehicle to a long distance. In case of Mahindra Max

PU drivers runs their vehicles upto 200kms. It means they don’t run their vehicles to

a long distance. They cover all the area within 200kms which saves time, expenses.

Vehicle_model * Avg_payloadtrip Crosstabulation

Count

Avg_payloadtrip Total

1-2 2-3 3-4 4-5

Vehicle_mod

el

tata 407 pu 1 14 12 0 27

MAHINDRA

max pu0 12 10 1 23

Total 1 26 22 1 50

INTER PRETATATION:-

From the fig2 it can be infer that, both the vehicles are used more for same payload

capacity (2-3tonn), then 3 to 4 ton. But Mahindra Max customers can go beyond that,

4 to 5 ton. It means Mahindra max has more payload capacity than Tata 407 PU.

Vehicle_model * Natureof_problems Crosstabulation

Count

Natureof_problems

Tot

al

SERVI

CE

DELAY

MILEA

GE

LEAF

SUSPENSI

ON

BREA

K

SPAR

E

PART

S

NI

L

OTHE

RS 8

Vehicle_mo

del

tata 407 pu 2 4 2 1 1 14 3 0 27

MAHIND

RA max pu

0 0 1 0 2 18 1 1 23

Total 2 4 3 1 3 32 4 1 50

INTERPRETATION:-

From the above graph it can infer that, Mahindra Max PU vehicle has no such

technical issues. The most important thing is that, it has no mileage issues at all. But

for Tata 407 PU it has mileage, break and other issues. Very less people told that,

they don’t have such issues as compare to Mahindra max customers. Analysis says

that, Tata 407 PU vehicle needs to improve in technical issues. Mileage needs to be

improve and spare parts also need to be available in time.customers need comfort and

good mileage vehicle rather than other factors.

Vehicle_model * Years_in_Transport Crosstabulation

Count

Years_in_Transport Total

1-5 5-10 10-15 15-20 20-40

Vehicle_mod

el

tata 407 pu 2 3 10 7 5 27

MAHINDRA

max pu4 4 9 5 1 23

Total 6 7 19 12 6 50

Vehicle_model * Motivating_factors Crosstabulation

Count

Motivating_factors

Tot

al

mileag

e

pric

e

bran

d

imag

e

cabi

n

existin

g

users

MANEUVERABILI

TY

AL

L

Vehicle_mo

del

tata 407 pu 5 3 6 5 1 0 7 27

MAHINDR

A max pu

7 3 2 0 1 2 8 23

Total 12 6 8 5 2 2 15 50

INTERPRETATION:-

From the above graph we can infer that, Tata 407 PU customers are more concerned

about brand image rather than other factors following mileage, good service, price

and existing users. Whereas, Mahindra max PU customers are more concerned about

mileage rather than price, brand image, maneuverability and existing user. But

overall Mahindra max is better than Tata 407 PU. Tata vehicles promotional activity

is more and it created a name in the mind of customers. Research mainly focused on

external users rather than existing customers of Tata vehicles. That’s why existing

users are very less. And the most important thing is service- Tata motors provides

good and neat service to customers than Mahindra & Mahindra. Some of them buy

Tata vehicles due to that reason. In case of Mahindra max PU customers are more

delight about mileage because Mahindra max is giving good mileage compare to both

the vehicles. Then comes price and brand image, both factors are less than Tata 407

PU. It means Mahindra & Mahindra co. couldn’t able to create a brand image in the

minds of people compare to Tata co. Research says that, Mahindra customers are

totally happy with the vehicle. Till now they don’t have any major technical issues so

for them no need of service regularly.

Vehicle_model * References Crosstabulation

Count

References

Tot

al 

DEALE

RS

FRIEN

DS

ADVERTISE

MENT

RELATI

VES

EXISTI

NG

OTHE

RS

Vehicle_m

odel

tata 407 0 9 8 4 1 5 0 27

pu

MAHIN

DRA

max pu

0 7 11 0 1 4 0 23

TOTAL 2 16 19 4 2 9 0 50

INTERPRETATION:-

From the above graph it shows that, Tata 407 PU existing users are more than others.

For Mahindra max PU friends are playing major role then dealers then existing users.

Tata Finding says that, dealers are more active in case of 407 PU. It means, most of

the FTU (first time users) as well as existing users are buying these two vehicles due

to dealers influence. But for Mahindra Max PU friends are playing major role to

influence the customers. It means Mahindra max has already created good perception

in the minds of customers. And also there is no need of advertisement required for

Mahindra max vehicle (from the graph). It can be suggest that, overall Tata 407 PU

vehicle is good in creating sales by using various factors. But it should give much

more on quality so that customers will automatically influenced by the vehicle. No

need of dealers to motivate more to existing users.

DEALE

RS

EXISTIN

G

CUSTOM

ER

FRIEN

DS

ADVERTISEME

NT

RELATIV

ES

TOTA

L

TATA 407

PU 9 5 8 4 1 27

MAHIND

RA MAX

PU 7 4 11 0 1 23

TOTALS 16 9 29 4 2 50

DEALERS

EXISTING CUSTOMER

FRIENDS

ADVERTISEMENT

RELATIVES

9

5

8

4

1

7

4

11

0

1

MOTIVATING FACTORSTATA 407 PU MAHINDRA MAX PU

INTERPRETATION:-

From the above graph it can be seen that, Tata 407 Pickup customers are more

influenced by dealers rather than, friends and other motivating factors. In case of

Mahindra max Pickup customer’s friends are motivating to buy the vehicles. It

means Mahindra Max has already created a perception in the minds of customers

that, it a good vehicle in every prospective. And customers more believe upon

their friends words rather than believing dealers. So company needs to look upon

it and have to bring some improvements in the vehicle (Tata 407 PU).

Where relationships matter

By making a success of connecting to dealers and customers, Tata Motors has got

into cruise control in a critical sphere of its business

Given that the customer is king (or queen), it would be logical to presume that

establishing — and nurturing — a relationship with such royalty is a priority for

enterprises looking to sell a product or service. Fact is, it may be a priority but

organizations rarely pay more than lip service to what goes by the grandiose

nomenclature of customer relationship management. For Tata Motors, though, this has

always been an imperative.

It made eminent sense for India’s premier automobile company — with over 1 million

customers, 22,000 employees and a geographically fragmented business that operates out

of 1,600 locations in a notoriously cyclic business environment — to put many eggs in

the relationship management basket. But this was an idea cooked in the cauldron of

adversity.

Tata Motors got started on what it has tagged the customer relationship management-

dealer management system (CRM-DMS) at the turn of the millennium, when it was

battling to regain relevance at a difficult time in its history. That’s when it realised that

survival in the auto business depended on managing its relationships with its customers,

dealers and anyone else who had a deep connection with the mother company.

This was no mean task, considering the scale and complexity of the issues involved. Two

parameters — customers, and their interface with the company, the dealers — were the

critical links in a complex chain that Tata Motors had to deal with. The solution led to the

emergence of Tata Motors’ integrated CRM-DMS, which is today the largest such

application in the automobile industry worldwide, linking to more than 1,200 dealers

across India and tracking the needs of some 25,000 customers.

Tata Motors had no standard or benchmark to model its solution on when the relationship

concept was first considered, back in 2002. The company realised that it had to look at

the business in a fundamentally different way. Instead of selling to the customer, Tata

Motors embarked on an ambitious programme to make its extended organisation get into

the customer’s shoes and envision each little detail as if it was meant to serve him.

The challenge was taken on by over 40 cross-functional teams,

comprising one member each from design, manufacturing,

sales and marketing, and service. Based on the output of this

‘quality functional deployment’ exercise and customer

satisfaction surveys, Tata Motors came up with the top 25

issues that it needed to address from the customer’s point of

view.

To standardise the sales process, the company broke it up into a four-part cycle: enquiry,

warm prospect, hot prospect (industry terminology for potential buyers), and completion

of sale and vehicle delivery. Using statistical analysis on the segmented data, the

company was now able to predict its sales patterns.

Once standardization was carried out across the dealer network, results were visible

almost immediately. Accurate sales forecasts, reduced inventory for the company and the

dealer, and better production scheduling were only some of the benefits. A shorter

delivery cycle for the customer was an important fringe advantage.

Tata Motors then embarked on implementing a solution that also facilitated the free flow

of information across the enterprise. It put in place a robust information technology

platform in the form of an innovative dealer management system, which automated sales

processes for its 1,600 dealer locations, allowing them more time to focus on the

customer.

Tata Motors chose Siebel for its CRM programme, which with its user-friendly interface

simplified the process of training the company’s 15,000-plus dealer sales force. To

support each dealer — who is actually a business partner representing the company with

the end customer — Tata Motors involved dealers throughout the configuration and

deployment process.

CRM-DMS has helped Tata Motors enormously in getting a firmer handle on its

business. The system was implemented in three phases, the objective being to achieve

success in one before moving on to the next:

Phase 1 focused on capturing customer and vehicle data and automating routine tasks.

In phase 2, this data was used to improve customer interactions and streamline product

development and planning.

Phase 3, now underway, concentrates on tuning the system and delivering additional

value-added services to customers.

Selling Process

Pipeline of Tata motors

Tata motors have different selling process which is quite different from the usual selling

process. They have coding system which is mention below.

C0-: Co are the existing and newly interested customers who are showing interest in

buying the vehicle.

C1( quotation forward ): –in this customers are asking about vehicle features, model,

schemes & offers, rate of interest, down payment and how much finance Tata motors will

provide them. So sales executive’s forwards quotation to these customers. These

customers may or may not buy the vehicle in same month.

C1A:-potential customers-These are the customers who is willing to buy vehicle in same

month.

C2 :-customers who give advance payment for booking vehicle.

C3-sales close with delivery-in this vehicle is delivered to customers.

Marketing Activities

Loan & exchange mela-To increase the sales of vehicle company is doing mela. In this company 1

for mela to show the newly and existing vehicle. company provides information about mela through news paper,

sms, telephone to existing customers and leaflet distribution. For vehicle exchange one broker is arranged by

company to exchange old vehicle to purchase new one .Finance people are also arranged by company who provides

financial details like Insurance, Loan offer, Down payment & EMI discount offer to customers.

Demos –in this company first select the area for demo & show the vehicle to target

customers. Field executives give detail information about vehicle and customers do test

drive of the vehicle.

Leaflet distribution- Field executives distributes leaflet to the target customer.

Company highlights the important features and schemes of vehicle in leaflet. Company is

doing leaflet distribution quarterly to create awareness between people.

Meeting- when newly vehicle is launched in market then company conducts meeting for

existing operators & sales managers gives presentation and detail information to these

operators.

Road show- company display all the important feature & schemes in the banners & put

it in the vehicle & goes from place to place to create awareness between people.

Survey –Field executives are doing survey after launching newly vehicle to gather the

feedback of vehicle & to know the needs and market potential of the vehicle.

Schemes and offers

Insurance free

First time user offers

Discount for existing and competitors customers

Festivals offers

Performance summary

Target

Co/C3 Existing customer

C1

C2

C3

customer coverage Co/C3+C1+C2+C3

C covg Target (Co+C1+C2+C3)/C3

C2 to C3 conv factor C3/(C2+C3)

C1 to C3 conv factor C3/C1+C2+C3

C1 to C2 conv factor (C2+C3)/ (C1+C2+C3)

Co to C3 conv factor C3/Co+C1+C2+C3

Co to C1 conv factor (C1+C2+C3)/(Co+C1+C2+C3)

After filtering

Co/C3

C1

C2

customer in pipeline Co+C1+C2

Loss % (A-B-C3)/A

FINDINGS:-

Findings, shows that, there is less number of customers for Tata 407 Pickup in Kerala.

Vehicle was lunched three years before but till now around three hundred to four hundred

vehicles sold. It means vehicle is facing lot of issues to fetch the market. M&M customers

told that they have no problem at all. They are very happy and most interesting thing is that,

some customers of Tata vehicle converted to M&M PU. Tata customers they told that they

have lot of problem starting from mileage to Torque. Engine breakdown occurs after 2-3

years where M&M PU has no such problems. There is no awareness about Tata SFC 407

Pickup among customers. Lack of promotions. It is very difficult to change the mind setup

of customers what M&M PU has already created in the minds of customers. Tata customers

are more concerned about brand image than mileage it means Tata vehicles promotional

activity is more and it created a name in the mind of customers. Research mainly focused on

external users rather than existing customers of Tata vehicles. That’s why existing users are

very less. And the most important thing is service- Tata motors provides good and neat

service to customers than Mahindra & Mahindra. Some of them buy Tata vehicles due to

that reason. In case of Mahindra max PU customers are more delight about mileage because

Mahindra max is giving good mileage compare to both the vehicles.

CONCLUSION

In conclusion we can say that there are great opportunities and possibilities in the

automobile sector. But hike in the fuel price is influencing the market of this

industry. 

There is a need of a very liberal policy for the fuel prices and requires a great good

deal with fuel supplying countries. Though the performance of the industry is better

instead of high and unfavorable fuel policy. 

The new launching of Tata's Nano 'One Lakh Car' which is also known as People's

Car is also a very good strategy to capture the middle class customers. Introduction of

Nano and Bajaj Lite will definitely affect the growth and sales volumes of cars which

will also affect the industry by reaching, catching the Indian middle class and

fulfillment of their own car need. 

Q. How does Mahindra usually handle customer concerns / feedback?

Mahindra has always been a customer centric company. We value your feedback and

strive to address concerns that any of our customers may have, with speed and

empathy. There are many ways you can reach us, and we will try to respond within a

maximum of 24 hours, even earlier if these issues are raised within working hours.

We invest a lot of effort in training our dealership personnel, however as in any

business, gaps do occur. We learn from the gaps and make immediate process

corrections. Our team of engineers and customer care managers are trained to do a

data based and objective evaluation of our customer's feedback. Followed by jointly

arriving on a win -win solution, that develops mutual trust and strengthens long term

relationships. To help connect to customers easily, we have 18 regional offices

(Delhi, Lucknow, Jaipur, Chandigarh, Noida,Karnal,Mumbai, Bhopal, Ahmedabad,

Pune, Kolkata, Patna, Bhubaneswar, Guwhati, Chennai, Hyderabad, Bangalore and

Cochin). Our employees are trained to be polite with our customers and always base

their judgments on data, facts, evidence and not on assumptions. We may not always

be able to satisfy 100% of our customer's demands, but our customers can rest

assured that we will be fair and always do our best to provide solutions to customer

concerns, and take into account customer feedback.

MY SWEET MEMORIES DURING SURVEY:-