Tata Magic Vs Three Wheelers

SUMMER INTERNSHIP REPORT
A COMPARATIVE STUDY
TATA Magic & Three wheelers
SUBMITTED TO: SUBMITTED BY:
IPM (Meerut) M. Absar
PGDM (Marketing)
IPM Meerut
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PREFACE
Any training programme sharpens those instincts, which serves as a

fulfillment of theoretical grounding. As the present day business world is a
highly complex one where Human Ingenuity and Acumen is sharpened by
highly specialized knowledge in various branches pertaining the running and
conducting. The research project in our basket was- comparative analysis of
TATA Magic and Three wheelers. The research was based upon certain
objectives such a; To determine the viability of TATA Magic in various routes
of Ranchi, To determine the operating economies of TATA Magic in various
routes etc.
To fulfill the objective of the research various auto stand has been surveyed
and different routes of Ranchi was travelled to gain the practical experience
and to know the actual scenario of the Market.
Research is a feedback that any organization sought for the purpose of

effective policy and decision making. It is the systematic problem analysis,
model building & fact finding for the purpose of important decision-making &
control in the making of goods and services. Summer Project is a part of our
curriculum so that we get exposed to the practical side our theoretical know-
how. This is basically designed to the real life situation. In this training
programmed, the students use their academic knowledge practically which
polishes the decision making abilities of MBA graduates. For developing
healthy managerial and administrative skills of potential managers it is
necessary that theoretical knowledge must be supplemented with exposure
to real life business environment. It is a practical training that the measuring
itself is realized.
Conventional academic medium cannot sell anything practically down to real

and practical market knowledge is required to make a hard core corporate.
This research work gave me the opportunity to apply conceptual skills in
practice and to learn the art of conducting study and presenting its findings
in a systematic and scientific way.
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ACKNOWLEDGEMENT
Today’s environment accomplished by any academic or professional pursuit

requires contribution from various individuals. The same is true in the case
of this summer training project of mine. I want to express our deep sense of
gratitude for Institute of Productivity and Management, Meerut, for providing
me with the opportunity to investigate what i have found to be an extremely
interesting project and prepare a report for the same.
I would like to thank Mr. ASIT MOHAN, Director and Mr. SARAVJEET
SINGH, Deputy Director, IPM, MEERUT, who arranged our Summer Training
in a reputed Business Institution, namely, TATA MOTORS LIMITED.
I would like to thanks MR. ASHISH MEHTA Territory sales manager and
Mr. SUBASISH GANGULY Area sales manager TATA MOTORS LIMITED
who has been in-charge of guiding and handling my SUMMER INTERNSHIP
PROGRAMME.
We sincerely acknowledge the help, encouragement and valuable suggestion

to our family members, our friends and all those people (respondents) who
were patient enough to answer to our questions, without their guidance and
active support we would not have been able to complete this report
successfully.
Thank You All
M.Absar
PGDM (Marketing)
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
THE INDIAN AUTOMOBILE INDUSTRY 2
COMPANY OVERVIEW 8
PRODUCT LINE OF TATA MOTORS LIMITED 14
PRODUCT PROFILE (TATA MAGIC) 15
SWOT ANALYSIS OF TATA MAGIC 18
COMPETITORS OVERVIEW 19
OBJECTIVE OF STUDY 21
RESEARCH METHODOLOGY 22
METHODS OF DATA COLLECTION 23
AWARNESS PROGRAMME 24
SURVEY ANALYSIS 29
COMPARATIVE ANALYSIS 35
DEALER ANALYSIS 47
OPERATING ECONOMIES COMPARISION 60
FINDINGS 71
ADVANTAGES 72
STRATEGIC RECCOMENDATIONS 73
CONCLUSIONS 74
LIMITATIONS 75
ANNEXURES 76
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EXECUTIVE SUMMARY
The project is based on comparative analysis between TATA Magic and other
three wheelers. A research has been made for checking the viability of TATA
MAGIC in SCV section. The work done for completion of the research
involves all steps of effective marketing research
We received brochures from the regional office Ranchi which we went

through to know about the specification about Magic. At the same time we
also gathered information regarding the competitors of TATA Motors in this
segment. We came to the conclusion that Piaggio Ape, Mahindra Alfa, Bajaj
Mega and Force Minidor are the main competitors in the state of Jharkhand.
We collected information of the competitors from net and studied them.
Further we collected information in the form of questionnaires pertaining to

TATA MAGIC and their main competitors. The information is collected from
different auto stands in Ranchi.
To know the consumer’s response on the utility of these vehicles and

viability of Magic in different routes a survey was conducted on few auto
stands in Ranchi, we also travelled in TATA Magic and other three wheeler to
determine the operating economies in various routes to make a comparison
between the earning per day. All the responses were collected from drivers
and owners. These responses were noted down and analyzed with the help
of charts and thus conclusions were drawn.
After analyzing the data and responses collected appropriated

recommendations were given to our project guide.
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THE INDIAN AUTOMOBILE INDUSTRY
Indian automobile industry is the seventh largest in the world with an annual
production of over 2.6 million units in 2009. India emerged as Asia's fourth
largest exporter of automobiles, behind Japan, South Korea and Thailand in
the year 2009. By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the nation's roads.
Following economic liberalization in India in 1991, the Indian automotive

industry has demonstrated sustained growth as a result of increased
competitiveness and relaxed restrictions. Several Indian automobile
manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, expanded their domestic and international operations. India's
robust economic growth led to the further expansion of its domestic
automobile market which attracted significant India-specific investment by
multinational automobile manufacturers. In February 2010, monthly sales of
passenger cars in India exceeded 100,000 units.
Embryonic automotive industry emerged in India in the 1940s. Following the

independence, in 1947, the Government of India and the private sector
launched efforts to create an automotive component manufacturing industry
to supply to the automobile industry. However, the growth was relatively
slow in the 1950s and 1960s due to nationalization and the license raj which
hampered the Indian private sector. After 1970, the automotive industry
started to grow, but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars were still a major luxury. Japanese
manufacturers entered the Indian market ultimately leading to the
establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures

for building motorcycles and light commercial-vehicles. It was at this time
that the Indian government chose Suzuki for its joint-venture to
manufacture small cars. Following the economic liberalization in 1991 and
the gradual weakening of the license raj, a number of Indian and multi-
national car companies launched operations. Since then, automotive
component and automobile manufacturing growth has accelerated to meet
domestic and export demands.
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Today, the Indian automobile industry is ranked first in the world in the
production of three wheelers, second in the production of two wheelers,
fourth in the production of commercial vehicles and ninth in the production
of passenger vehicles. With a production of more than 11 million vehicles in
FY08-09, the Indian automotive industry has shown an outstanding
resilience after the last down cycle about a decade back. In the last few
years, the Indian automotive industry has grown at a healthy rate by
reducing costs and improving efficiency. With its new found confidence, it
has gone beyond the shores of India and is creating a noteworthy footprint
in different geographies in the world.
The Indian automotive market with a healthy growth rate of 14% in the last
7 years (as on FY08-09) was a source of attraction to many foreign
automobile companies whose entry in the Indian market not only increased
competition, but also raised customer expectations about product quality
and reliability. This forced the Indian companies to introduce new and
interesting products and innovation has now become a notable feature of the
Indian automobile industry.
The automobile industry consisting of cars, trucks, buses, two-wheelers and

three-wheelers, is vital to the growth of the Indian economy. In the last
decade their share in the Indian economy is around 5% of GDP.
Economic progress is indicated by the amount of goods and services

produced which give the impetus for transportation and boost the sale of
vehicles. Increase in automobile production has a catalyst effect by indirectly
increasing the demand for a number of raw materials like steel, rubber,
plastics.
Since transportation is the nerve center of every other industry, the well
being of the automobile industry is a good indicator of the health of the
economy. Economic studies have shown that every truck manufactured
creates anywhere between eight to twelve jobs and a bus would create
around seven, which would include salespeople, drivers, mechanics, cleaners
and servicing staff.
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Before Independence
Before independence India was seen as a market for imported vehicles.

The assembling of cars manufactured by General Motors and other leading
brands was the order of the day. Indian auto industry focused on servicing,
dealership, financing and maintenance of vehicles. Manufacturing started
only after a decade from independence.
After Independence
Till the 1950s the Indian Railways played a pivotal role in meeting India's
transportation needs. The railways used to carry 90 per cent of the total
freight, while road transport accounted for the balance. But in the current
context the dynamics have changed. Surface transport accounts for 65% of
freight movement and 80% of passenger movements. The slow growth of
railway infrastructure has been partly due to administrative reasons, partly
due to difficulty in acquiring land and partly due to high capital cost involved
for every additional railway line.
The Indian automobile industry faced several challenges and road blocks to
growth since independence. Manufacturing capability was restricted by the
rule of license and could not be increased. The total production of passenger
cars was limited to 40,000 a year for nearly three decades. This production
was also confined to three main manufacturers Hindustan Motors, Premier
Automobiles and Standard Motors. There was no homegrown expertise or
research & development initiative. It was difficult to import scientific know
how and vital spare parts and cumbersome to recruit foreign technical
experts.The pricing was kept under control by the government. Here was the
contradiction, a passenger car was thought to be a premium product only for
the rich, yet it came under the purview of protection of a socialist regime.
Initially labor was unskilled and had to go through a process of learning
through trial and error. But to the credit of these workers, it was they who
developed the skill set required for future expansion in the industry.
The earlier automobiles were a domestic version of prominent International

Brands. The Morris Oxford popular in the 1950s, became the Ambassador,
the Fiat 1100 became the Premier Padmini. By 1960s nearly 98% of the
product was developed indigenously.
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By the end of 1970s, significant changes in the automobile industry were
witnessed. Initiatives like joint ventures for light commercial vehicles did not
succeed. New models like Contessa, the Rover and the Premier 118NE, hit
the market.
Socialistic Pattern Of Growth
India by and large followed a socialist system till the later part of 1980s.The
government focused on development through heavy, long gestation, capital
intensive projects like steel manufacturing. The quality of the finished good
and customer feedback were not given much priority. As a result the country
missed a golden opportunity to accelerate to a faster growth trajectory by at
least 2 decades.
The Pioneering Achievements
Mr. J.R.D Tata's role in the development of the Indian automobile industry
has to be mentioned. The Tata group set up a high standard Engineering
Research Centre (ERC) in 1965 to facilitate technological advancement. Mr.
Tata pioneered the indigenization of scientific knowledge for trucks in
collaboration with Mercedes Benz.
The launch of Maruti 800 in 1983 changed the dynamics of the passenger
car sector in India. It was also known as the people’s car.
Stability In The Market

The Indian automobile industry has come a long way since independence.
From being an importer of automobiles to a manufacturer. From having
minimum foreign collaborations to joint ventures. This attribute cannot be
considered as a weakness, but as sharing of best practices. This
phenomenon can be compared to the business collaboration in the
outsourcing industry.
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The Future
 The Indian automobile industry is expected to grow to US$ 40 billion

by 2015 from the current level of US$ 7 billion in 2008. By the year
2016 the industry is expected to contribute 10% of the nation’s GDP.
The industry manufacturers over 11 million vehicles a year, employing
more than three million people.
 The greatest challenge and competition would be from the Chinese
automobile industry. The Chinese automobile industry has been able to
give stiff completion to India in terms of productivity, cost of
manufacturing and technology. Again the present trend of excess
manufacturing capability, reduced margins put additional pressure on
the industry.
 The global recession has had a dampener effect on the growth of the
industry, but market experts believe it is only a short term
phenomenon and are confident of the industry bouncing back.
 On the positive side, India’s strength in software sector, combined with
skilled labor and low cost of manufacturing should place it in a
favorable position globally.
 Recently Ratan Tata, Chairman (Tata Motors) created history by
launching the world's cheapest car NANO. The cars pricing is around
one lakh, gaining instant recognition in the automobile industry across
the globe. It heralded the coming to age of the Indian Automobile
Industry.
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CURRENT SCENARIO OF INDIAN AUTOMOBILE INDUSTRY:
DOMESTIC MARKET SHARE '09- '10
16%
4%
4%
PASSENGER VEHICLE
COMMERCIAL VEHICLE
3 WHEELER
76%
2 WHEELER
*Source: SIAM (Society Of Indian Automobile Manufacturers)
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COMPANY OVERVIEW
Tata Motors Limited is India's largest automobile company, with consolidated

revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader
in commercial vehicles in each segment, and among the top three in
passenger vehicles with winning products in the compact, midsize car and
utility vehicle segments. 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 they operate best in the products they deliver and best in
their value system and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length
and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads,
since the first rolled out in 1954. 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). The company's dealership,
sales, services and spare parts network comprises over 3500 touch points;
Tata Motors also distributes and markets Fiat branded cars in India.
 Globalization
Tata Motors, the first company from India's engineering sector to be listed in
the New York Stock Exchange (September 2004), has also emerged as an
international automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South Korea, Thailand and
Spain. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea's second largest truck
maker. The rechristened Tata Daewoo Commercial Vehicles Company has
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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, and subsequently the remaining stake
in 2009. Hispano's presence is being expanded in other markets. In 2006,
Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global
leader in body-building for buses and coaches to manufacture fully-built
buses and coaches for India and select international markets. In 2006, Tata
Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the company's pickup
vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun
production of the Xenon pickup truck, with the Xenon having been launched
in Thailand in 2008.
Tata Motors is also expanding its international footprint, established through

exports since 1961. The company's commercial and passenger vehicles are
already being marketed in several countries in Europe, Africa, the Middle
East, South East Asia, South Asia and South America. It has franchisee/joint
venture assembly operations in Kenya, Bangladesh, Ukraine, Russia,
Senegal and South Africa.
The foundation of the company's growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to
translate them into customer-desired offerings through leading edge R&D.
With over 3,000 engineers and scientists, the company's Engineering
Research Centre, established in 1966, has enabled pioneering technologies
and products. The company today has R&D centers in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. 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. In
2005, Tata Motors created a new segment by launching the Tata Ace, India's
first indigenously developed mini-truck
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.
 Recent Ventures:
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which
India and the world have been looking forward to. The Tata Nano has been
subsequently launched, as planned, in India in March 2009. A development,
which signifies a first for the global automobile industry, the Nano brings the
comfort and safety of a car within the reach of thousands of families. The
standard version has been priced at Rs.100,000 (excluding VAT and
transportation cost).
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In May 2009, Tata Motors introduced ushered in a new era in the Indian
automobile industry, in keeping with its pioneering tradition, by unveiling its
new range of world standard trucks called Prima. In their power, speed,
carrying capacity, operating economy and trims, they will introduce new
benchmarks in India and match the best in the world in performance at a
lower life-cycle cost.
 Corporate Social Responsibilities
Tata Motors is equally focused on environment-friendly technologies in

emissions and alternative fuels. It has developed electric and hybrid vehicles
both for personal and public transportation. It has also been implementing
several environment-friendly technologies in manufacturing processes,
significantly enhancing resource conservation.
Tata Motors is committed to improving the quality of life of communities by

working on four thrust areas – employability, education, health and
environment. The activities touch the lives of more than a million citizens.
The company's support on education and employability is focused on youth
and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, its intervention is in both
preventive and curative health care. The goal of environment protection is
achieved through tree plantation, conserving water and creating new water
bodies and last but not the least, by introducing appropriate technologies in
its vehicles and operations for constantly enhancing environment care.
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 Core Purpose, Value and Vision & Mission
Purpose
To create economic assets
Our Core Values for road transportation for
Integrity bulk movements of goods
and people andparticipate
Customer focus in managing these
Corporate Citizenship overthe life of assets in
Passion for Engineering order to create
andcapture
economic assets.
Our Vision
To be a world class corporate
constantly furthering the interest
of all its stakeholders.
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 Our Mission
Shareholders
To consistently create shareholder value by generating returns in excess of

weighted average Cost of Capital during the upturn and at least equal to
weighted average cost of capital during the downturn of the business cycle.
Customers
To strengthen the TATA brand and create lasting relationships with the
customers by working closely with business partners to provide superior
value for money over the life cycle.
Employees
To create a seamless organization that incubates and promotes innovation,

excellence and the Tata core Values
Vendor and Channel Partners
To foster a long term relationship so as to introduce a broad range of

innovative products and services, that would benefit our customers and
other stakeholders.
Community
To proactively participate in reshaping the country’s economic growth. To

take a holistic approach in environmental protection.
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PRODUCT LINE OF TATA MOTORS LIMITED
PASSENGER CARS INDICA INDIGO NANO FIAT CARS

VISTA MAANZA
INDICA VX INDIGO CS
XETA
INDICA V2 INDIGO
MARINA
INDIGO XL
UTILITY VEHICLES SAFARI SUMO SUMO XENON XT

DICOR GRANDE
TRUCKS MEDIUM & INTERMEDIA LIGHT SMALL

HEAVY TE COMM. COMMERCI COMMERCIAL
COMM. VEHICLE AL VEHICLES VEHICLES
PRIMA TL 4*4
CONTRUCK
TATA NOVUS
COMMERCIAL BUSSES WINGER MAGIC

PASSENGER CARRIERS
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PRODUCT PROFILE (TATA MAGIC)
The Tata Magic is a Micro van launched by Tata Motors in June 2007. The
Magic is the passenger version of the Ace mini-truck; the new Magic features
an all-steel cabin. It offers a flexible seating capacity of 4-7 passengers with
adequate legroom. Powered by a 16 bhp (12 kW), 702 cc water-cooled
diesel engine, the Magic offers high fuel efficiency and very low
maintenance. The 12-inch tyres provide higher ground clearance, and the
rigid front axle is designed to handle tough roads. The Magic's turning radius
of 4.3 meters (14.1 ft) is nimble enough to navigate the bylines and traffic
of India's crowded cities. The Magic has a clearly visible instrument cluster,
utility tray and a digital clock in the dashboard and also a provision for fitting
a radio.
The Magic meets BS-III emission norms and has been developed for use in
any market — be it urban, semi-urban or rural. It is backed by a
36,000 km/12-month warranty. The Magic range starts at Rs 2.90 lakh (ex-
showroom).Magic had being launched nation-wide, starting with Maharashtra
and Gujarat, after which availability was extended to other parts of the
country in a phased manner.
Whether it is a hub town or a village, the Magic can very well ferry
passengers with ease and comfort. The rigid front axle of this vehicle has
specifically been designed keeping in mind the Indian conditions. It can very
well and safely navigate through the narrow countryside streets or roads
where it seems difficult for other vehicles to do so.
As far as safety is concerned, the Magic meets all the safety norms. There is
absolute safety for drivers and passengers, as it incorporates door intrusion
beams, seatbelts for drivers and passenger cabin and vacuum assisted
brakes for excellent braking performance and large windscreen for better
driving visibility. In addition to this, it meets all the safety standards for
static roll over and roof crush because of its hard top and tubular
construction. Above all, you can have an easy and safe reversing because of
the two box tail lamp with an inbuilt reflector and a bright reverse lamp.
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TATA MAGIC PASSENGER
1. ENGINE
Model TATA 275 IDI NA
Type 4- stroke, naturally aspirated, indirect
injection diesel engine
Max Output 16hp @3200 rpm
Max. Torque 38 nm @2000rpm
Displacement 702 cc
2. CLUTCH Single Plate dry Friction diaphragm type

170 dia
3. GEAR BOX GBS 65-4/6.31

Type Synchromesh (4 forward gears), Sliding
Mesh(reverse gear)
Front Axle Rigid Beam Shaped
Rear Axle Single Reduction, High powered gears
and semi-floating axle
4. STEERING Mechanical, Variable Ratio (20.5 to 24.5),

380 mm dia
5. BRAKES
Type Vacuum Assisted Dual circuit
hydraulically activated
Front Disc Brakes
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Rear Drum Brakes (200mm dia×30mm)
6. SUSPENSION
Shock Absorber Hydraulic double – acting telescopic type
Type Parabolic Leaf Spring Suspension at both
front and rear
WHEELS AND TYRES
Tyres 145 R 12 LT 8 PR RADIAL
7. DIMENSIONS (MM) (MM)

Length 3790
Width 1500
Height 1845 (unladen)
Wheelbase 2100
Front Wheel Gauge 1300
Rear Wheel Gauge 1320
Inside Length 2212
Inside Width 1220
Height of Side Panels 300
Ground Clearance 160
Minimum Turning Circle 4.3m
Diameter
8. FUEL TANK CAPACITY 30 litres
PERFORMANCE
Max. Speed 64 kmph.
Max. Gradability 22%
Grade Restartability 21%
9. WEIGHTS
Max. GVW 1600 kg
Kerb Weight 1000kg
Seating Capacity Driver + 7
10. Security Measures

On Hinge Doors Pop Up Nob for Side Doors
Others Static Role over tested capacity
Specific Reflex Reflectors and Door Intrusion
Beams
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SWOT ANALYSIS
A scan of the internal and external environment is an important part of the

strategic planning process. Environmental factors internal to the firm usually
can be classified as strengths (S) or weaknesses (W), and those external to
the firm can be classified as opportunities (O) or threats (T). Such an
analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the

firm's resources and capabilities to the competitive environment in which it
operates. As such, it is instrumental in strategy formulation and selection.
The SWOT Analysis of Tata Magic is as shown in the figure:
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COMPETITORS OVERVIEW
Until a decade ago, the auto sector in India had been a relatively protected
industry limiting the entry of foreign companies with high tariffs against
imports. Today, as part of a broader move to liberalize its economy, India
has opened up the sector to Foreign Direct Investments, and since then has
also progressively relaxed trade barriers. Today, almost all of the major
global companies are present in India producing two-wheelers and
passenger cars in almost all segments.
Over the years the world has been witnessing tremendous development in
the sector of automobile industry. With their advanced engineering
techniques, the major auto giants like Tata, Maruti, General Motors,
Hyundai, Mitsubishi etc have come up with most sophisticated vehicle that a
human mind could have hardly imagined just a few years ago. It is not only
the cars, consumer vehicles and two wheelers are also been sold in large
numbers, but the three wheeler market is also quite big in the south east
nations. We can see innumerable three wheelers running on the roads of
various Southeast Asian countries like India, Thailand Sri Lanka, Pakistan,
Philippines, Nepal, Bangladesh etc.
There are a number of reasons that have resulted into the proliferation of
three wheelers in umpteen countries. Three wheelers are quite economical in
terms of manufacturing and maintenance. They have also earned huge
popularity due to their easy maneuvering capabilities through the narrow
lanes that are prevalent in most of the developing countries.
The two and four wheelers are quite a hit all around the world. The two
wheelers have undergone significant transformation resulting in categories
like scooters, mopeds and motorcycles, the four wheelers also have come up
with different shape, size design and forms and also have evolved into so
many forms with light and heavy commercial vehicles. However it is the
three wheeler segment of the automobile that has lagged behind.
No wonder, as against them, the number of popular three wheeler

manufacturers is quite limited and in India, One comes across only three
leading three wheeler manufacturers. The leading three wheeler
manufactures in India are Bajaj Auto, Mahindra & Mahindra, the Italy based
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Piaggio and Force Minidor. While Bajaj Auto is one of the leading name in the
Indian two wheeler segment and Mahindra & Mahindra is known more for its
jeeps like Bolero and Scorpio.
In the three wheeler segment, the classification is broadly in terms of cargo

and passenger vehicles. Since the former does have a very limited capacity
to carry goods and is not preferred by many, the three wheeler
manufacturers are more into the passenger three wheelers. Bajaj Auto has a
range of models for passenger three wheelers namely RE 2S, RE 4S, RE 4S
CNG, RE4S LPG, RE Diesel and RE Diesel Mega while its existing cargo is
called GC1000.
Mahindra & Mahindra has got the Champion range of three wheelers. There
are Champion pick up and Champion delivery vans while the Champion
Passenger carriers is mostly seen in the western parts of the country. The
Alfa three wheeler carriages of the Mahindra & Mahindra has a wide and tall
cabin, heavy duty gear box, unique designed chassis and hydraulic shock
absorbers.
The Italian auto major Piaggio manufactures Ape 50 in association with Bajaj
Auto at Pune with 150cc engine. This three wheeler has different body
forms and matches the specifications of various countries wherever it is
produced.
Force Motors Limited is an automobile company, which was earlier known as

Bajaj Tempo Limited. The name change has been effected from 21st
February, 2006. The company possesses expertise in the design,
manufacture and development of its comprehensive range of automobile
components, vehicles and aggregates. Three wheelers from Force Motors
Limited come as the Minidor family. The Minidor family comprises a host of
customized three wheelers. These vehicles are beautifully engineered. The
three wheelers from Force Motors are economical, eco-friendly and tough
ones. These vehicles are efficient transport options for humans and goods
alike.
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OBJECTIVES OF STUDY
 DEALER ANALYSIS OF TATA MAGIC
 TO DETERMINE THE VIABILITY OF TATA MAGIC IN DIFFERENT

ROUTES.
 TO COMPARE THE OPERATING ECONOMY OF TATA MAGIC AND

OTHER THREE WHEELERS.
 TO ANALYZE DIFFERENT ATTRIBUTES OF TATA MAGIC.
 TO CREATE AWARENESS ABOUT THE BENEFITS OF TATA MAGIC.
 TO FIND OUT THE CHALLENGES FACED.
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METHODOLOGY
Research methodology is a way to systematically solve the research problems.

When we talk about the research methodology we don’t talk about the research
method but also consider the logic behinds the method use in the context of
research results are capable of beings evaluated either by the researcher himself
or by others.
Here the work in our baggage to accomplish is to Study of TATA Magic vis-a-vis
its competitors. The methodology plays a dominant role in any research work.
The effectiveness of any research work depends upon the correctness and
effectiveness of the research methodology.
Here i have used Descriptive Research Design i.e. formulating a problem from
more precise investigation. In this type of research method researchers are
supposed to understand the problems under research, it is done for
understanding and knowing new phenomenon. It helps in segmenting and
targeting markets which are favorable for the company; in some cases describing
the situation may provide information and many other findings, all that is needed
to solve business problems. The major emphasis in such studies is on the
discovery of the ideas and insights. Research design for such studies must be
flexible enough to provide opportunity for considering different aspects of the
problem under study.
26
METHODS OF DATA COLLECTION
 Primary Data collection:--Collection of Data and opinion from

existing Customers and the competitors.
 Secondary Data collection: -- Collection of data from internet

and study material and brochures.
 Data collection from the RTO (regional transport office)
 Qualitative Analysis of the data collected:
A standard set of questionnaires would be designed and distributed to

various people who are either owners or drivers or both. To study the
analysis about customer’s awareness, satisfaction and requirement of TATA
Magic along with the competitors.
Hence methodologies of my project would include:
 Open ended questionnaire.
 Close ended questionnaire.
 Personal interviews and informal discussions.
 Random sample survey of customers
27
AWARENESS PROGRAMME
Sample Design
Sample Size 60
 Commercial vehicle owners
Target Population  Auto drivers
 Common public
Location State of Jharkhand (Dhurva)
Duration of the surveys One day
Type of information structured
Information given Shown below
28
INFORMATION PROVIDED:
 On road price
 Discount being provided by the dealer
 Benefits
 Safety features
 Feature comparison with the competitors
 Offered test drive
 Finance option
 Different routes where Magic can run
AND TOOK FEEDBACK FROM EXISTING CUSTOMERS.
Safest features:
29
Rollover test
The vehicle rolled over from a 800mm height platform on to the hard
ground. This test is mandatory only for buses. MAGIC need not comply with
this standard but has been developed to meet this requirement in order to
ensure adequate safety for occupants.
30
TATA MAGIC WITH SMALL 3-WHEELER
S.No Parameters Ape Magic Advantages
1 Engine Capacity (cc) 395 (1 Cyl) 702 (2 Cyl) Reliable Engine,

Lesser Maintenance
2 Engine Power (HP) 8 16 More Power, More

Speed
3 Torque (NM) 16 38 More Pulling power,

lesser gearshifts
4 Fuel Tank (ltrs) 10 30 More distance without

refueling
5 Speed (Kmph) 50 64 Faster Turnaround,

More Trips
6 No. of seats 3 6&7 More Passengers,

More Earning
7 Position of Engine Rear Front More Passenger

Comfort
8 No. of Wheels 3 4 More Safety
9 Rollover Test No Yes More Safety
10 Roof Top Soft Hard More Safety
11 Shower Proof No Yes All weather proof
31
TATA MAGIC WITH LARGE THREE WHEELERS
Sl Parameters Vikram Champion Magic Advantages
1 Engine cc 510 (1 Cyl) 510 (1 Cyl) 702 (2 Cyl) Reliable Engine, Lesser
Maint.
2 Engine Power 10 10 16 More Power, More

(HP) Speed
3 Torque (NM) 22 27 38 More Pulling power,

lesser gearshifts
5 Fuel Tank 10 10 30 More distance without

(Ltrs) refueling
6 Speed (kmph) 54 54 64 Faster Turn, More Trips
7 No. of seats 6 6 7 More Pass., Higher

Earning
8 Position of Rear Rear Front More Passenger Comfort

Engine
9 No. of Wheels 3 3 4 More Safety
10 Tyre Size 10” 10” 12” Better Grip & Stability
11 Rollover Test No No Yes More Safety
12 Roof Top Hard Soft Hard More Safety
32
SURVEY ANALYSIS
SAMPLE DESIGN
DETAILS OF THE SURVEY CONDUCTED
Sample Size 91
 Auto drivers
Target Population
 Owner and driver
Location Ranchi Auto stands
Duration of the surveys 20 days
Type of questionnaire Structured
No. of Questions involved 15
33
1. No. of vehicles surveyed in different stands:-
6% 7%
Booty More
4%
6% 2% ITI
Park
11%
Kutchary
Deepatoli
6% Ratu Road
Dhurva
Hatia
8% 33% Hotwar
kanta Toli
8% Namkum
Tatisilve
7%
2%
Stand In In
location percentage numbers
Booty
More 7% 6
ITI 6% 5
Park 2% 2
Kutchary 33% 32
Deepatoli 7% 6
Ratu
Road 2% 2
Dhurva 8% 7
Hatia 8% 7
Hotwar 6% 5
kanta Toli 11% 10
Namkum 4% 4
Tatisilve 6% 5
34
2. Number of vehicles surveyed:-
23%
Mgic
52%
Minidor
Piaggio
25%
In In
Type of vehicle percentage numbers
Mgic 23% 21
Minidor 25% 23
Piaggio 52% 47
35
3. Type of respondents:-
45%
Driver
Owner and Driver
55%
Type of respondent In percentage In numbers
Driver 55% 50
Owner and Driver 45% 41
36
4. Average. number of passengers:-
14
12
10
Avg. No. of passengers

6
0
Magic Piaggio Monidor
Avg. Number of
Type of vehicle passengers
Magic 12
Piaggio 9
Monidor 10
37
5. Mileage
30
25
20
15
Km/per liter
10
0
Magic Piaggio Minidor
Type of vehicle Km/per liter
Magic 14
Piaggio 26
Minidor 18
38
COMPARATIVE ANALYSIS
1. DESIGN:
DESIGN
2% 2% 4%
7%
STRONGLY DISAGREE
21% DISAGREE
SOMEWHAT DISAGREE
64%
SOMEWHAT AGREE
AGREE
STRONGLY AGREE
ANALYSIS: With the existing design of TATA MAGIC 2% were strongly

disagreed and 64% were strongly agreed that the design of TATA MAGIC is
better than its competitors because of its car like interiors and steel body.
39
2. SEATING CAPACITY:
SEATING CAPACITY
12%
SOMEWHAT DISAGREE
STRONGLY AGREE
88%
ANALYSIS: Out of the total respondent 88% were strongly agreed that the
seating capacity in TATA MAGIC is more than its competitors. And rest 12%
who were somewhat disagree were trekker and commando owners or
drivers. And for driver seat MAGIC has got 20% more cabin space.
40
3. PICK UP :
PICK - UP
14%
43%
18%
STRONGLY DISAGREE
DISAGREE
SOMEWHAT DISAGREE
SOMEWHAT AGREE
25%
ANALYSIS: Out of the total respondent surveyed majority ( 43%) were

strongly disagree that the TATA MAGIC has a better pick up as compare to
its competitors whereas only 14% were somewhat agree that pick up of the
vehicle is not really worse.
41
4. SPEED:
SPEED
36%
AGREE
64% STRONGLY AGREE
ANALYSIS: Comparing the speed of TATA MAGIC with its competitors, 64%
of the respondents were strongly agreed that it has more speed than its
competitors and none of them were at all disagreed as it has 10kmph more
speed than its competitors.
42
5. COMFORTABILITY:
COMFORTABILITY
3%
12%
CAN'T SAY
24%
SOMEWHAT AGREE
61%
AGREE
STRONGLY AGREE
ANALYSIS: Having different seat for driver, car like seat for passengers and
20% more cabin space has lead 61% of respondent to say that TATA MAGIC
has more comfortable seats for driver as well as passengers than its
competitors.
43
6. DURABILITY:
DURABILITY
18%
25%
14% CAN'T SAY

SOMEWHAT AGREE
AGREE
STRONGLY AGREE
43%
ANALYSIS: By looking at the above chart we can say that 43% of the
respondents agreed that TATA MAGIC has more durability than its
competitors because some of them are MAGIC users and also because of the
brand name of TATA.
44
7. PROFITABILITY:
PROFITABILITY
11%
18%
50%
CAN'T SAY
SOMEWHAT AGREE
AGREE
21% STRONGLY AGREE
ANALYSIS: 50% of the respondents were strongly agreed that TATA MAGIC
is more profitable than other vehicle of segment because of more sitting
capacity, low maintenance cost and more numbers of trips as the maximum
speed of the vehicle is more as compared to its competitors.
45
8. SAFETY:
SAFETY
11%
18%
SOMEWHAT AGREE
AGREE
71% STRONGLY AGREE
ANALYSIS: Four wheels, steel body, hard top and cover from all sides are
major points for which 71% of respondents were strongly agreed that TATA
MAGIC is safer than its competitors.
46
9. INCREASE IN SOCIAL STATUS:
INCREASE IN SOCIAL STATUS
4%
18%
SOMEWHAT AGREE
AGREE
STRONGLY AGREE
78%
ANALYSIS: Being a four wheeler vehicle, TATA MAGIC increases the social
status of the user as it gives the car type feelings. Thus majority of
respondent (78%) strongly agreed that MAGIC as compared to its
competitors increases their social status.
47
10. SERVICE AT SERVICE STATION:
SERVICE AT SERVICE STATION
7%
21%
43%
SOMEWHAT DISAGREE
CAN'T SAY
SOMEWHAT AGREE
AGREE
29%
ANALYSIS: 43% of the respondents were agreed that the service provided
by authorized service station and the availability of the spare parts of TATA
MOTORS are much better and easily available than its competitors. 21%
those who could not say about the service provided at service station were
the respondents who never used any TATA MOTORS product.
48
11. MILEAGE:
MILEAGE
7% 4%
36%
SOMEWHAT DISAGREE
SOMEWHAT AGREE
53% AGREE
STRONGLY AGREE
ANALYSIS: 20 kmpl is decent enough for 53% of the respondents to

agreed upon that TATA MAGIC has good mileage considering the fact that it
is four wheeler and has more carrying capacity.
49
12. BRAKES:
BRAKES
9%
14%
SOMEWHAT AGREE
AGREE
77% STRONGLY AGREE
ANALYSIS: Disc Brakes at front wheel and Drum Brakes (200mm

dia×30mm) at rear wheel has lead 77% of respondents to agree strongly
upon that TATA MAGIC has a better braking system than its competitors.
50
DEALER ANALYSIS OF TATA MAGIC IN JHARKHAND
There are 5 authorized dealers of TATA Motors in Jharkhand covering 24

districts. They are:
1. MITHILA MOTORS:
This dealer of TATA Motors operates in 3 districts of Jharkhand

namely East Singhbhum, West Singhbhum and Saraikela &
Kharswan. It is the oldest dealer of TATA Motors in the state of
Jharkhand and has main office at Jamshedpur.
The shaded area in the above map is the region (East Singhbhum,
West Singhbhum and Saraikela & Kharswan) where Mithila Motors
operates.
51
MITHILA MOTORS
12.00%
10.00%
10.16%
9.70%
8.00%
6.00%
MARKET SHARE
5.27%
4.00%
2.00%
0.00%
07 08 09
We can see that in the year 2008 market share was increased by
92.79% from 5.27% to 10.16% and in the year 2009 it was
decreased by 4.53 % from 10.16% to 9.70%
52
2. BUDHIA AGENCIES:
This dealers covers the area of 8 districts of Jharkhand namely

Ranchi, Palamu, Khunti, Garwha, Gumla, Simdega, Lohardagga,
Latehar. Covering the maximum number of districts than any other
dealer in the state of Jharkhand. It has main office at Ranchi.
Shaded area in the above map shows the region covers by Budhiya
Motors. it also includes Khunti, a district that is formed recently which
was earlier a part of Ranchi district.
53
BUDHIA AGENCIES
14.00%
12.95%
12.00% 12.47%
10.00%
8.00%
MARKET SHARE
6.00%
4.00%
3.95%
2.00%
0.00%
07 08 09
215.7% from 3.95% to 12.47% and in the year 2009 it was increased
by 3.84% from 12.47% to 12.95%
54
SALES ANALYSIS OF BUDHIA AGENCY IN LAST QUARTER (JAN- APRIL)
January Feburary
District Unit Sold District Unit Sold
Ranchi 17 Ranchi 20
Garhwa 1 Garhwa 0
Gumla 6 Gumla 5
Khunti 4 Khunti 6
Lohardaga 3 Lohardaga 2
Palamu 2 Palamu 4
Simdega 4 Simdega 4
Latehar 0 Latehar 0
Total 37 Total 41
March April
District Unit Sold District Unit Sold
Ranchi 26 Ranchi 8
Garhwa 4 Garhwa 0
Gumla 3 Gumla 3
Khunti 6 Khunti 3
Lohardaga 4 Lohardaga 0
Palamu 1 Palamu 1
Simdega 6 Simdega 1
Latehar 1 Latehar 0
Total 51 Total 16
55
60
50
40
NUMBER OF TATA MAGIC SOLD
30 Sales
20
10
0
Jan Feb Mar Apr
MONTH
56
3. GAJRAJ VAHAN PVT. LTD:
There are 4 districts under this dealer and they are Hazaribagh,
Ramgarh, Koderma and Chatra. Main office at Hazaribagh.
The region shaded in the above map is the area where Gajraj Vahan
Pvt. Ltd operates. It includes a new district called Ramgarh, which was
earlier a part of hazaribagh district.
57
GAJRAJ VAHAN Pvt. Ltd.
35.00%
33.05%
30.00%
25.00%
20.00%
20.53%
19.05%
MARKET SHARE
15.00%
10.00%
5.00%
0.00%
07 08 09
73.5% from 19.05% to 33.05% and in the year 2009 it was decreased
by 37.8% from 33.05% to 20.53%
58
4. J.M.A STORES:
This dealer of TATA Motors operates in three districts of Jharkhand

namely Dhanbad, Bokaro and Giridih. It operates in one of the most
potential area of Jharkhand and has main office at Dhanbad.
The shaded region in the above map shows the area where J.M.A
stores operates. Though it overs 3 district but they are highly
potential.
59
J.M.A. STORES
40.00%
37.54%
35.00%
30.00%
25.00%
25.56%
20.00%
MARKET SHARE
15.00%
10.00% 11.34%
5.00%
0.00%
07 08 09
231% from 11.34% to 37.54% and in the year 2009 it was
decreased by 31.9% from 37.54% to 25.56%
60
5. GANPATI VEHICLES:
This dealer of TATA Motors covers the entire 6 districts in the north
east region of Jharkhand namely Deoghar, Dumka, Godda, Pakur,
Jamtara and Sahibgunj. It has main office at Deoghar.
The above shaded area of the map show the area that is covered by
Ganpati Vehicles. So far this dealer has the best selling record of TATA
MAGIC for the year 2009 and has achieved the maximum market
share ever by TATA MAGIC.
61
GANPATI VEHICLES
60.00%
52.81%
50.00%
40.00%
39.29%
30.00%
MARKET SHARE
20.00%
10.00%
0.62%
0.00%
07 08 09
We can see that in the year 2008 market share was increased
tremendously from 0.62% to 39.29% and in the year 2009 it was
increased by 34.41% from 39.29% to 52.81%.
62
OBSERVATIONS
We can see that market share of 3 dealers of Jharkhand namely

Mithila Motors, Gajraj Vahan Pvt. Ltd. and J.M.A. Stores has
increased from the year 2007 to 2008 but has decreased in the year
2009. At the same time in the rest of the two dealers namely Budhia
Agencies and Ganpati Vehicles market share has increased
continuously from the year 2007 to 2009.
There is a tremendous increase in the market share of Ganpati
Vehicles in both the year ( 2007 to 2008 and 2008 to 2009) and the
reason behind this is that it is a tourist place and the main railway
junction is at Jasidih (8 kms. away from the town)
As we can see that in the year 2007 market share of TATA MAGIC is
not good in entire state of Jharkhand and the reason behind this is,
the vehicle was launched in the year 2007.
63
A comparison between operating economics of TATA Magic
and Three wheeler
We were sent on a live project on five different routes, we had conducted

survey on these routes. Our job was as follows
 To locate the route from which the vehicle is travelling and note down
the main halts.
 Check the exact distance in kilometers
 Amount of time which is been taken to reach the destination
 Total fair been collected
 Number of average passengers who were travelling
Mean while we also had to communicate with the driver and find out
 life of the tyre

 Price of each Tyre
 In how may kilometers it gets changed
 What other purposes is the vehicle been used i.e. in marriages etc
 Highest number of passengers the vehicle has ever accommodated
 Average income per day
 Owner’s cut
To make our survey more easy we travelled the route once with TATA Magic
and once with three wheeler.
64
KUTCHARY to DHURVA
Earnings Actual Magic Minidoor Expected Magic Minidoor

Legal Seating Capacity 7 6 Legal Seating Capacity 7 6
Actual No of Passengers 10 9 Actual No of Passengers 14 11
One side Distance 16 16 One side Distance 16 16
No of return trips per day 4 4 No of return trips per day 4 4
Total Distance per day 128 128 Total Distance per day 128 128
Fare one side/person 10 10 Fare one side/person 10 10
Total Earnings per Total Earnings per
day 800 720 day 1120 880
Fixed Cost
Price 293000 215000 Price 293000 215000
Registration 4500 4000 Registration 4500 4000
Insurance 11000 8500 Insurance 11000 8500
On-Road Price 308500 227500 On-Road Price 308500 227500
Funding (70%) 215950 159250 Funding (70%) 215950 159250
Rate of Interest (Flat) 11.00% 11.00% Rate of Interest (Flat) 11.00% 11.00%
Tenure of Loan 4 4 Tenure of Loan 4 4
EMI 6479 4778 EMI 6479 4778
Fixed Cost per day 216 159 Fixed Cost per day 216 159
Variable
Cost
Fuel Mileage 14 18 Fuel Mileage 14 18
Fuel Price 38 38 Fuel Price 38 38
Fuel Cost/ km 2.71 2.11 Fuel Cost/ km 2.71 2.11
Tyre Life 70000 60000 Tyre Life 70000 60000
Cost of one Tyre 2000 2000 Cost of one Tyre 2000 2000
No. of Tyres 4 3 No. of Tyres 4 3
Tyre Cost per km 0.11 0.10 Tyre Cost per km 0.11 0.10
Maintenance/ km 0.25 0.40 Maintenance/ km 0.25 0.40
Variable cost per day 394 334 Variable cost per day 394 334
Total Cost per day 614 493 Total Cost per day 610 493
Profit per day 186 227 Profit per day 510 387
Profit per month 5580 6796 Profit per month 15300 11596
65
Kutchary to Dhurva
Distance - 16Km
Duration – 60 minutes
Fair - Rs. 10
TATA Magic Minidor

Mileage 14 18
Average
Passenger 8 9
Number of trips 5 5
Kutchary Lalpur Kantatoli Station More Overbridge Ag more Birsa Chowk golchakkar
Jail More dangra toil Bahu Bazar Sujata Post Office Hinoo Chowk Vidhan Sbha Dhurva
REMARKS
Three wheeler customer feedback about Magic
1. Being a TATA product it might work

2. Comparatively not as good as Minidor, the earning is more in Minidor
3. Mileage of Magic is the key problem
Are the 3-W earning there: YES
Would Magic be viable vehicle for them:
Yes, Magic will be a viable vehicle for them in this route; it still has a
capacity to fill 3 more passenger, which would increase their profit by more
than 50%, whereas Minidor can occupy just one more passenger.
Any prospect: NO
Income per day as per the driver/owner (excluding fuel)
Magic- 600
Minidor-500
66
KUTCHARY to RAMPUR
Earnings Actual Magic Minidor Expected Magic Minidor

Total Earnings per day 960 840 Total Earnings per day 1680 1320
Fixed Cost
Price 293000 215000 Price 293000 215000
Funding (70%) 215950 159250 Funding (70%) 215950 159250

EMI 6479 4778 EMI 6479 4778
Variable
Cost
67
Distance - 16Km
Fair - Rs. 15
TATA Magic Minidor

Mileage 14 18
Average Passenger 8 7
Number of trips 6 4
Kutchary Lalpur Kantatoli Lawdih Chowk P.Office Acadmic council Sidrol Rampur
Jail More Dandatoli Shamlang Crossing Sadabahar Bargoma ITI
3-W customer's Feedback about Magic:
1. Its earning good because in highways you can observe there are too
many TATA Magic running
2. Existence of Magic has not hampered our business.
3. Its good to see healthy competition
YES, as per the data we can see that Magic is earning higher than Minidor and has
the abilty to earn more in it's full capacity. This route is also preferable because
there are huge number Male and Female labours coming from villages in this route
to work in city every day. And the base reality is 30 of them travel in one particular
vehicle and they pay Rs.5 each which would make a total of Rs.150 at one go and
the same people come back too therefore the conclusion derived is, in one
particular trip Magic is earning Rs.300.
Any prospect: NO

Magic – 700
Minidor - 500
68
KUTCHARY to NAMKOM
Earnings Actual Magic Minidoor Expected Magic Minidoor

Total Earnings per Total Earnings per
day 1000 900 day 1400 1100
Fixed Cost
Price 293000 215000 Price 293000 215000
Funding (70%) 215950 159250 Funding (70%) 215950 159250
EMI 6479 4778 EMI 6479 4778
Variable
Cost
69
Distance - 13Km
Fair - Rs. 10
TATA Magic Minidor

Mileage 14 18
Number of trips 5 5
Kutchary Lalpur Kantatoli Lawdih Chowk P.Office Namkom Bazar
Jail More Dandatoli Shamlang Crossing Sadabahar
1. If Magic and minidor both are on stand people prefer to occupy seat in
Minidor than Magic reason not specified
2. Magic is also doing equally good business
3. Leg space is more in Minidor than Magic
Are the 3-W earning there: YSE
Yes Magic is a viable vehicle for them as we can see that the difference in profit is
not much and which can easily be achieved. If they just move 3 Km ahead from
Namkom to Rampur they can get many passengers as there are limited number of
commercial vehicles running in this route and there are people who come to city
every day for various reasons. And fair charged till Rampur is also higher in
compare to Dhurva and Hatia they charge Rs.10 for 16 and 20 Km respectively
whereas Rampur is also 16Km but the fair is Rs.15
Any prospect: NO
Magic -700
Minidor - 500
70
KUTCHARY to HATIA
Earnings Actual Magic Minidor Expected Magic Minidor

Fixed Cost
Price 293000 215000 Price 293000 215000
Funding (70%) 215950 159250 Funding (70%) 215950 159250
EMI 6479 4778 EMI 6479 4778
Variable
Cost
71
Kutchary to Hatia
Distance - 20Km
Fair - Rs. 10
TATA Magic Minidor

Mileage 14 18
Number of trips 4 4
Kutchary Lalpur Kantatoli Station More Overbridge Ag more Birsa Chowk Hatia Bazaar
Jail More dangda toil Bahu Bazar Sujata Post Office Hinoo Chowk Hatia Station
1. This route has potential market for magic

2. No threat from magic.
3. People travelling short distance does not prefer magic
No, In this particular route Magic is not preferable because the distance is
20km and the fair is just Rs.10. Taking mileage into consideration the profit
is getting hampered.
Any prospect: NO
Magic - 500
Minidor - 600
72
ITI to BHARNO
Earnings Actual Magic Piaggio Expected Magic Piaggio

Fixed Cost
Price 293000 156000 Price 293000 156000
Funding (70%) 215950 117950 Funding (70%) 215950 117950

EMI 6479 3539 EMI 6479 3539
Variable
Cost
73
Distance - 40Km
Duration – 2hrs
Fair - Rs. 30
TATA Magic Piaggio

Mileage 15 27
Number of trips 2 2
ITI More Itki More Garhgaon Bharno
Nagri Kurgi Bedo
Remarks

1. Village people by seeing the look of Magic thinks that Magic would charge
high rate for the same route.
2. Magic is performing well because it has good speed so it covers the
distance much quicker.
3. It can accommodate more passengers at a time so two trips per day is
also sufficient for Magic
Yes, Magic in this route is perfectly suitable as it is travelling a longer

distance on a traffic free route therefore the vehicle is also giving good
mileage. And the fair being charged is pretty good. If it runs in it's full
capacity in this route the vehicle owners can make a huge profit.
Any prospect: NO

Magic - 450
Piaggio -550
74
FINDINGS
As I worked on this project, I came across many things. This was really good
learning for me. My findings while working on this project are:
CHALLENGES FACED
1. LOW PICK UP:

Low-pick up was the major problem that was faced by the customers.
Customers expected that being a vehicle of TATA Motors and four
wheeler vehicle it should have more pick up
2. GEAR BOX :
Gear shifting was also one of the problems faced by the customers.
The complaint was that when gear shifts from 2nd to 3rd it creates
some problem. Few said that the height of the gear box is bit high if it
would have been in the level of the seat they could accommodate one
person in the front.
3. COLOUR :
There were very few customers came up with colour problem. They
said that, as auto or other six- seaters are in market since a long time
and are of yellow and brown/ black colour this has created an image
that commercial passenger vehicle is only of yellow and brown/black
colour. Thus people generally do not approach TATA Magic (red and
white colour) in the areas where the product is not familiar. Passenger
thinks that it is a private vehicle.
4. MILEAGE :
Average mileage of the vehicle is coming between 14-16 because of
which many consumers are not satisfied.
5. AVERAGE EARNING:
In short routes the competitor of Magic earns more but in long routes
Magic’s average earning is more and hence Magic is more viable in
long routes .
75
ADVANTAGES
1. Beneficial in long routes:

In our survey we can analyze that Magic running in long distance is in
much profit when compared to other vehicles.
2. Tyre:
Tyre life, of Magic is more than the other vehicle which certainly
decreases the variable cost in long run.
3. Drivers comfort:
Driver has his separate independent seat which increases his driving
comfort. One of the respondents said that “ I have my own seat so I
don’t face any problem in driving if the number of passengers are
more than 20 also (which sometimes happen) they adjust themselves
anyhow and my responsibility is to drop them safe”
4. Shower proof:
On rainy season customers will prefer Magic over Minidor as it has
gone through the shower proof test successfully, so chances of
customers getting wet or even spoiling their clothes is minimal.
5. Noise free:
Compare to other three wheeler Tata Magic advance engine make less
noise and make travelling more comfortable, unlike other three
wheeler Tata magic does not have engine at back and therefore makes
less noise and does not irritate the passengers.
6. Comfortable seats:
Tata Magic wide seats provide good seating comfort to the passengers
, the leg space in Tata Magic is more compared to other three
wheelers .This is very necessary for long distance routes .
The cushion of the seats is better than other three wheelers and
therefore provides better seating comfort to the passenger.
76
STRATEGIC RECOMMENDATIONS:
As per our survey in various auto stands in Ranchi & nearby areas and the
responses been collected from different auto drivers and the owners. We
found out that TATA Magic’s target customers are both the owner as well as
the passengers. They both have different mind sets regarding Magic. The
buyers of TATA Magic has purchased the vehicle looking at it looks, safety
features and overall comfort of the passengers and due to these features
company charges higher price. But the real challenge is that the passenger
does not value these features in the city routes because they travel a very
short distance and these features hardly matter to them.We would like to
give the following suggestions to my project guide regarding the viability of
TATA MAGIC in different routes at Ranchi:
 TECHNICAL ISSUES:
 Improve pickup
 Height of gear box should be in the level of the seat
 Improve mileage
 MARKETING STRATEGIES
 Create new segment like educational institute and small nursing
homes
 Should provide live demos in the potential routes, by providing
Magic and fuel and letting them keep the earning of that trip.
 Making customers aware about the operating economic in the
potential routes
 Offer Magic in more colours like yellow and green
 Exchange facility should be provided
 FINANCIAL ISSUES
 Decrease the percentage of down payment from 30% to 25%
 Reduce Equated Monthly Installments.
77
CONCLUSION
After going through the training period and conducting rigorous survey
from various consumers of TATA Magic and its competitor we came to
know the various factors responsible for the success and failure of
TATA MAGIC and their competitors. We also came to know the various
perception of TATA Magic from the customer and the customer of the
competitor brand in this particular segment.
Being the student of marketing the entire training taught me the
various practical aspects to be taken into account for increasing the
sales of commercial vehicles and the factors which must be improved
to make TATA Magic viable in various routes in Ranchi. The project
gave us an insight into sales market of the vehicles of TATA Magic,
what strategies are adopted by them and their competitors. An
overview of the corporate life was presented to us.
We not only learnt the real situation of the automobile sector but also
gained practical knowledge and experience.
78
LIMITATIONS
 The Project is focused to Jharkhand State only
 The data obtained from RTO incorporated only for 10 and half
months for the year 2009.
 The duration of the Project is 14 weeks so scope of in-depth

evaluation Results is limited.
 Auto drivers/owners surveyed may tend to get bias towards

their perception and may project a false picture which may
affect the reliability and validity of the study.
 The sampling technique used in different auto stand in Ranchi

to collect the primary data might be wrong, as Respondents
appeared limited.
 Discrepancy in data provided by the RTO like some blank data.
79
ANNEXURES
ANNEXURE 1:-
Stand Survey
1. Stand Location-______________________
2. Name- ____________________________________________
3-Address- _______________________________________________
_______________________________________________
4. Contact No. - ____________________________
5. Model/Make-__________________________
6. Vehicle No.-___________________
7. Actual passenger capacity- (a) 6 (b)8 (c)10 (d)12 (e)14 (f)above 14
8. Route-____________________________
9. One way distance (Km)-____________
10. No. of trips- (a)1 (b)2 (c)3 (d)4 (e)5 (f)above 5
9. Mileage-(a) 10-15 (b)15-20 (c)20-25 (d)25-30
10. Financed- Yes No Installment-__________________
11. Respondent- Owner Driver
12. Average Daily income- (a) below 200 (b) 200-400 (c) 400-600 (d) 600-800
(e) Above 800
13. Owners Cut-_________
14.Tyre life-______________Km
15. Feedback-___________________________________________________________________
80
ANNEXURE 2:-
1. Design of TATA Magic is good than its competitors.
A. Strongly disagree B.Somewhat disagree C.Disagree
D.Somewhat agree E.Agree F.strongly agree
2. Seating capacity of TATA Magic is better than its competitors.
A. Strongly agree b. B. Somewhat disagree
3. Pickup of TATA Magic is better than its competitors.
A. Strongly disagree B.Somewhat disagree C.Disagree
d.Somewhat agree
4 Speed of TATA Magic is better than its competitors.
A.Agree B.Strongly Agree
5. Comfort ability of TATA Magic is better than its competitors.
A. Can’t say B.Somewhat agree C.Agree
D.Strongly agree
6.Durability of TATA Magic is More than its competitiors.
D.Strongly agree
7.Profitability of TATA Magic is more than its competitors
D.Strongly agree
8. Safety of TATA Magic is better than its competitors.
A.Somewhat agree B.Agree C.strongly agree
81
9.Increase in social status is more in TATA Magic than competitors.
A.Somewhat agree B.Agree C.Strongly agree
10.Service at service station is better than its competitior.
A. can’t say B.Somewhat disagree c.Agree
D.Somewhat disagree
11.Mielage of TATA Magic is more than its competitors.
A. Somewhat disagree B.Somewhat agree C.Agree
D. Strongly Agree
12 Brakes of TATA Magic are better than its competitors.
A.Somewhat agree B. Agree C. Strongly agree
82
COMPARATIVE EXPERIENCE ON A PERCEPTUAL BASIS WITH MARKET LEADER
Features Strongly Disagree Somewhat Can’t Somewhat Agree Strongly

Disagree Disagree Say Agree Agree
1.Design
1 2 3 4 5 6 7
2.Seating
1 2 3 4 5 6 7
Capacity
3.Pick up
1 2 3 4 5 6 7
4.Speed
1 2 3 4 5 6 7
5.Comfortability
1 2 3 4 5 6 7
Driver
5.Comfortability
1 2 3 4 5 6 7
Passenger
6.Durability
1 2 3 4 5 6 7
7.Tyres
1 2 3 4 5 6 7
8.Safety
1 2 3 4 5 6 7
9.Increase in
1 2 3 4 5 6 7
Social Status
10.Service
1 2 3 4 5 6 7
Station
83
REFERENCES
BOOKS:
 Principles of marketing by Philips Kotler.
 Research Methodology by C. Kothari
MAGAZINES & News-papers & Pamphlets:

 Business Standards.
 The Economic Times.
 Business world.
 Company pamphlets.
WEB SITES:
 magic-tatamotors.com.
 www.siam.com
 carblogindia.com.
 autosmaxabout.com.
 auto.indiamart.com.
84
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SUMMER INTERNSHIP REPORT

TATA Magic & Three wheelers

SUBMITTED TO: SUBMITTED BY:

IPM (Meerut) M. Absar

Any training programme sharpens those instincts, which serves as a

Research is a feedback that any organization sought for the purpose of

Conventional academic medium cannot sell anything practically down to real

Today’s environment accomplished by any academic or professional pursuit

We sincerely acknowledge the help, encouragement and valuable suggestion

Thank You All

THE INDIAN AUTOMOBILE INDUSTRY 2

PRODUCT LINE OF TATA MOTORS LIMITED 14

PRODUCT PROFILE (TATA MAGIC) 15

SWOT ANALYSIS OF TATA MAGIC 18

METHODS OF DATA COLLECTION 23

OPERATING ECONOMIES COMPARISION 60

We received brochures from the regional office Ranchi which we went

Further we collected information in the form of questionnaires pertaining to

To know the consumer’s response on the utility of these vehicles and

After analyzing the data and responses collected appropriated

Following economic liberalization in India in 1991, the Indian automotive

Embryonic automotive industry emerged in India in the 1940s. Following the

In the 1980s, a number of Japanese manufacturers launched joint-ventures

The automobile industry consisting of cars, trucks, buses, two-wheelers and

Economic progress is indicated by the amount of goods and services

Before independence India was seen as a market for imported vehicles.

The earlier automobiles were a domestic version of prominent International

Socialistic Pattern Of Growth

The Pioneering Achievements

Stability In The Market

 The Indian automobile industry is expected to grow to US$ 40 billion

DOMESTIC MARKET SHARE '09- '10

*Source: SIAM (Society Of Indian Automobile Manufacturers)

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

Tata Motors is also expanding its international footprint, established through

 Corporate Social Responsibilities

Tata Motors is equally focused on environment-friendly technologies in

Tata Motors is committed to improving the quality of life of communities by

To consistently create shareholder value by generating returns in excess of

To create a seamless organization that incubates and promotes innovation,

Vendor and Channel Partners

To foster a long term relationship so as to introduce a broad range of

To proactively participate in reshaping the country’s economic growth. To

PASSENGER CARS INDICA INDIGO NANO FIAT CARS

UTILITY VEHICLES SAFARI SUMO SUMO XENON XT

TRUCKS MEDIUM & INTERMEDIA LIGHT SMALL

COMMERCIAL BUSSES WINGER MAGIC

2. CLUTCH Single Plate dry Friction diaphragm type

3. GEAR BOX GBS 65-4/6.31

4. STEERING Mechanical, Variable Ratio (20.5 to 24.5),

7. DIMENSIONS (MM) (MM)

8. FUEL TANK CAPACITY 30 litres

10. Security Measures

A scan of the internal and external environment is an important part of the

The SWOT analysis provides information that is helpful in matching the

The SWOT Analysis of Tata Magic is as shown in the figure:

No wonder, as against them, the number of popular three wheeler

In the three wheeler segment, the classification is broadly in terms of cargo

Force Motors Limited is an automobile company, which was earlier known as

 DEALER ANALYSIS OF TATA MAGIC

 TO DETERMINE THE VIABILITY OF TATA MAGIC IN DIFFERENT

 TO COMPARE THE OPERATING ECONOMY OF TATA MAGIC AND

 TO ANALYZE DIFFERENT ATTRIBUTES OF TATA MAGIC.