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THE TATA MOTORS

IN PARTIAL FULFILLMENT OF THE REQUIREMENT UNDER


SEMESTER BASED CREDIT & GRADING SYSTEM FOR POST
GRADUATE SEMESTER I

PROGRAM UNDER FACULTY OF COMMERCE


MASTER OF COMMERCE (MORNING)
SYDENHAM COLLEGE OF COMMERCE & ECONOMICS
SUBMITTED BY:
PANKAJ DAFDA
ROLL NO.7
PROJECT GUIDE

DR.ANJALI ALEKAR
(Professor)

SYDENHAM COLLEGE OF COMMERCE &


ECONOMICS
2015-2016

ACKNOWLEDGEMENT
I would firstly like to thank the UNIVERSITY OF MUMBAI for giving
us the liberty of choosing such topic which will be benefited to us in
future. I would like to thanks the Principal of Sydenham College Dr.
ANNASAHEB KHEMNAR for giving me the opportunity to study in
this esteemed college and doing the course of Accountancy. I would
like to express my sincere gratitude and thanks to DR ANJALI
ALEKAR. who is my project guide, as he has been the guiding
light for this project and has also provided me with the best of my
knowledge, advice and encouragement which helped me in
successful completion of my project.
My special thanks to my parents and classmates who have also
supported and encouraged me, the success of this project to the
large extent is also dedicated to them.
I would also like to thank all those who have helped me and whom I
have forgotten to mention in this space.

SIGNATURE OF STUDENT:

CERTIFICATE

This is to certify that MR.PANKAJ DAFDA of M.comI(morning) 1st. semester (2015-2016) has successfully
completed the project on THE TATA MOTORS. under
the guidance of DR.ANJALI ALEKAR

Project guide:

Internal examiner:

External examiner:

DATE:

PLACE:

DECLARATION

I Mr.PANKAJ DAFDA the student of M.com-I (morning) 1ST


Semester (2015-16), hereby declare that I have completed
the project on THE TATA MOTORS. The information
submitted is true and original to the best of my knowledge.

Signature of student

PANKAJ DAFDA
Roll No. 7

Sr.no.

Contents
ACKNOWLEDGEMENT
CERTIFICATE
DECLARATION

INTRODUCTION

STUDY OF THE INDUSTRY

INDUSTRY ANALYSIS

COMPANY STUDY

ORGANISATION STRUCTURE

FINANCIAL ANALYSIS OF TATA


MOTORS
SWOT ANALYSIS

7
8

PROBLEM AND RESEARCH


METHODOLOGY

FINDINGS & SUGESSTIONS

10

CONCLUSION

11

BIBLIOGRAPHY

TATA MOTORS

INTRODUCTION
A promise is promise and I kept my promise- this is the historical
statement which Mr. RATAN
TATA said when he launched his ambitious TATA NANO; the
peoples car in India on 23 rd march
2009. Tata has always given value products in the Indian Car
Market whether it is path breaking
recently launched TATA NANO or TATA INDICA (which created
great brand into the car industry
in the diesel segment).
Not only is the passenger car, even into the heavy vehicle
segment TATA is the only sole leader in
India.
TATA has created its brand value not only in India but even
outside India it has created its brand by
acquiring Jaguar-Land Rover, Corus Steel during 2007-08.
TATA has been named among top 10 brand companies by Fortune
Magazine in the year 2008. It has
got into top 100 companies in the survey of Standard & Poor
Modys research in the year 2008.
Being into most valued brand in world the consumer satisfaction
to its customers is very important
for TATAS and thus they are continuously working into this area
where their objective is to provide
best products with full value of the money of their customers.
The TATA INDICA VISTA has been one of those products you just
cannot ignore. While it got
media coverage around the world, the reactions, though mixed,
flowed easily. On the one hand there
has been pride in the Worlds mid size small car tag, as a great
achievement for Indian industry.
The Worlds mid size small Car tag has been well received with
the hope that a whole new
category of people can look to buy a car now.

1. STUDY OF THE INDUSTRY

a) Historical Background

In India there are 100 people per vehicle, while this


figure is 82 in China. It is expected that
Indian automobile industry will achieve mass motorization
status by 2014.
Since the first car rolled out on the streets of Mumbai (then
Bombay) in 1898, the Automobile
Industry of India has come a long way. During its early stages the
auto industry was overlooked by
the then Government and the policies were also not favorable.
The liberalization policy and various
tax reliefs by the Govt. of India in recent years has made
remarkable impacts on Indian Automobile
Industry. Indian auto industry, which is currently growing at the
pace of around 18 % per annum, has
become a hot destination for global auto players like Volvo,
General Motors and Ford.
A well developed transportation system plays a key role in the
development of an economy, and
India is no exception to it. With the growth of transportation
system the Automotive Industry of
India is also growing at rapid speed, occupying an important place
on the 'canvas' of Indian
economy.
Today Indian automotive industry is fully capable of producing
various kinds of vehicles and can be
divided into 03 broad categories : Cars, two-wheelers and heavy
vehicles.
The first automobile in India rolled in 1897 in Bombay.
India is being recognized as potential emerging auto market.
Foreign players are adding to their investments in Indian auto
industry.
Within two-wheelers, motorcycles contribute 80% of the
segment size.
Unlike the USA, the Indian passenger vehicle market is
dominated by cars (79%).

Tata Motors dominates over 60% of the Indian commercial


vehicle market.
2/3rd of auto component production is consumed directly by
OEMs.
India is the largest three-wheeler market in the world.
India is the largest two-wheeler manufacturer in the world.
India is the second largest tractor manufacturer in the world.
India is the fifth largest commercial vehicle manufacturer in the
world.
The number one global motorcycle manufacturer is in India.
India is the fourth largest car market in Asia - recently crossed
the 1 million mark.
40% of the three-wheelers are used as goods transport purpose.
Piaggio holds 40% of the market
share. Among the passenger transport, Bajaj is the leader by
making 68% of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti
Suzuki has 52% share in passenger cars
and is a complete monopoly in multi purpose vehicles. In utility
vehicles Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with
more than 60% share. Tata Motors is
also the world's fifth largest medium & heavy commercial vehicle
manufacturer.

b) Current Scenario
The growth of the Indian middle class along with the growth of the
economy over the past few years
has attracted global auto majors to the Indian market. Moreover,
India provides trained manpower at
competitive costs making India a favoured global manufacturing
hub. The attractiveness of the
Indian markets on one hand and the stagnation of the auto sector
in markets such as Europe, US and
Japan on the other have resulted in shifting of new capacities and
flow of capital to the Indian
automobile industry. According to the International Yearbook of
Industrial Statistics 2008 released

by United Nations Industrial Development Organisation (UNIDO),


India ranks 12th in the list of the
worlds top 15 automakers.
Indian OEMs Come of Age
Indian original equipment manufacturers (OEMs) are making their
mark today with Tata and
Mahindra & Mahindra as leading Indian OEMs emerging on the
global scene. With increasing
competition from the global players, Indian OEMs have upgraded
their technology and are
manufacturing superior-designed vehicles.
'Frugal Engineering' has become the hallmark of the Indian
automotive industry, with Indian OEMs
leveraging the Indian lead in cost-effectiveness and a highlyskilled human resource pool to bring
down the product development cost. Additionally, competencies
of their suppliers have also helped
to lessen costs and manufacturing time. In fact, global OEMs are
now looking at benefiting from the
India advantage by using India-based design and development
centres. Tata Ace, Indica and Nano,
and Mahindra's Scorpio are examples of products developed by
Indian OEMs after painstaking
market research about the specific needs of the Indian consumer.
Production
Although the sector was hit by economic slowdown, overall
production (passenger vehicles,
commercial vehicles, two wheelers and three wheelers) increased
from 10.85 million vehicles in
2007-08 to 11.17 million vehicles in 2008-09. Passenger vehicles
increased marginally from 1.77
million to 1.83 million while two-wheelers increased from 8.02
million to 8.41 million.
In recent times, India has emerged as one of the favourite
investment destinations for automotive
manufacturers.
Volvo Buses India is eyeing 35 per cent growth in domestic sales
this year at 550-600 units

as against around 440 units sold in 2008.


Toyota Kirloskar Motor Pvt Ltd (TKML), the Indian subsidiary of
Japans Toyota Motor
Corp, is increasing its investment by US$ 164.8 million at its
manufacturing site near
Bangalore, to touch US$ 824.32 million by 2016.
French carmaker, Renault, has completely recast its plans for
India as part of a new,
aggressive approach that will see it producing cars in its Chennai
plant by 2011.
Hyundai has made India its global hub for manufacturing small
cars. It will invest US$ 1
billion in its second plant in Chennai by 2013. In addition, it is also
investing US$ 40 million
in its research and development (R&D) facility in Hyderabad.
General Motors has so far invested about US$ 1 billion into its
Indian operations.
Mercedes-Benz will invest about US$ 64. 21 million in its plant at
Chakan near Pune.
Domestic Market
Sales of cars and commercial vehicles have been impacted due to
global economic slowdown.
However, in spite of that there has been a marginal increase in
the number of vehicles sold in 200809 as compared to 2007-08. Total number of vehicles sold
including passenger vehicles, commercial
vehicles, two-wheelers and three-wheelers in 2008-09 was 9.72
million as compared to 9.65 million
in 2007-08. According to an Ernst & Young analysis, passenger
vehicle sales in the country will
grow at a CAGR of 12 per cent to touch 3.75 million units by 2014
as against 1.89 million units at
the end of 2008-09. While domestic market is expected to
contribute 2.75 million units to the total
tally, the remaining 1 million units would contribute towards
exports. Likewise, as per estimates by
CARE Research, the domestic two-wheeler sales will grow at a
CAGR of 8.8 per cent by 2014 at

11.3 million units vis-a-vis 7.43 million units in 2008-09. Honda


Siel Cars India (HSCI), the Indian
subsidiary of the Japanese giant Honda Motor Co, said that its
sales will register double digit growth
in the current financial year. The company expects its total sales
to be around 60,000-65,000 units
during the current year, up from 55,250 cars sold in 2008-09.
Exports
According to the Society of Indian Automobile Manufacturers
(SIAM), automobile sales (including
passenger vehicles, commercial vehicles, two-wheelers and threewheelers) in the overseas markets
increased to 1.53 million units in 2008-09 from 1.23 million units
in 2007-08. Export of passenger
vehicles increased from 218,401 in 2007-08 to 335,739 units in
2008-09. The growth in export was
led by Hyundai Motor India, followed by others such as MSIL,
Mahindra Renault, Fiat India
Automobiles, General Motors India and Honda Siel Cars India.
Policy
In order to make India a power to reckon with in the automotive
sector the government launched the
Automotive Mission Plan (AMP) 2006-2016. The vision of the AMP
is "to emerge as the destination
of choice in the world for design and manufacture of automobiles
and auto components with output
reaching a level of US$ 145 billion accounting for more than 10
per cent of the GDP and providing
additional employment to 25 million people by 2016." As per the
AMP, it is estimated that the total
turnover of the automotive industry in India would be in the order
of US$ 122 billion-159 billion in
2016. It is expected that in real terms, India would continue to
enjoy its eminent position of being the
largest tractor and three-wheeler manufacturers in the world and
the world's second largest twowheeler
manufacturer. By 2016, India will emerge as the world's seventh
largest car producer (as

compared to the eleventh largest currently) and retain the fourth


largest position in world truck
manufacturing sector. Further, by 2016, the automotive sector
would double its contribution to the
country's GDP from current levels of five per cent to 10 per cent.

The Five Forces:


1.The threat of substitute products-As we know the Indian
customers
choices range from mileage, pick-up, power steering to
various other things
so substitute is very important aspect in this industry as
other product
available in the market may act as the substitute to the
brands own existing
product.
2.The threat of t5he entry of new competitors-New
completion from the
new entrant or from existing company is also highly
potent force which a
company must have to take care of for its market share
and growth.
3.The intensity of competitive rivalry-The very effective
way of putting
competitor out of track is pitching new vibrant products in
the market so a
company must be aware of this tactics by its rival
company so that it can
cater the effect.
4.The bargaining power of customers-Another important
aspect for a car or
auto company where they have to manage the pricing
control of their
product to spurt the sales in the market.

5.The bargaining power of suppliers- The distribution


channel is very
important in country like India where the demand is
highly different with
all across its dimension so, supply is very much required
in the industry for
a company.

C.Industry Analysis
Even as recession-hit international automobile majors are
struggling to maintain sustainable sales figures,car
exports from India surged by a remarkable 57 per cent year-onyear in the recently-ended. Led by Hyundai
Motor India Ltd and Maruti Suzuki India Ltd, India-based car
makers shipped a record number of vehicles,
mainly to Europe. Exports grew to 331,539 cars from 211,112 a
year earlier. Exports had grown by a
comparatively meagre 8.9 per cent in the previous year (200708), according to figures released by the the
Society of Indian Automobile Manufacturers. The country's largest
exporter, Hyundai managed an export
growth rate of 63 per sent at 235,345 units, compared with
144,440 units in the year-ago period. Domestic
market leader Maruti Suzuki was a distant second, registering
32.58 per cent growth in overseas sales at
68,834 units. Maruti and Hyundai launched new models in the
past year, including Maruti's A-Star and
Hyundai's i20, targeted at the European market, which is cited as
one reason for the robust export numbers.
The weakness of the rupee, which fell more than 20 per cent
against the dollar in the just-ended fiscal year,
also helped by making Indian cars cheaper abroad. Export growth
was also robust in the two-wheeler
category, which registered 22.50 per cent rise at 1004,174 units
as against 819,713 units in the previous
financial year.However, with the global economy slowing, demand
from Europe may not hold up, analysts

said. Meanwhile, lending rates in India are at nearly five-year


highs as banks, worried about bad loans, hold
back from financing vehicle purchases."The main concerns are
availability of finance, which includes
liquidity, and high interest rates. Domestic car sales in the year
ended 31 March grew by a mere 1.3 per cent
from a year earlier to 1.21 million cars from 1.2 million in the
previous year. Local car sales had climbed 12
per cent in the previous fiscal year. Domestic sales of trucks and
buses fell 22 per cent to 384,122 vehicles
from 490,494. Motorcycle sales grew 1.2 per cent to 5.83 million,
while scooters gained 9.1 per cent at 1.14
million. Industry executives and analysts expect measures taken
by government authorities to spur lending
while the introduction of new models could slightly boost
domestic vehicle sales this year.
Passenger vehicle sales remained practically flat, recording a
mere 0.13 percent growth over the
previous year. Within this segment, passenger cars and multipurpose vehicles grew by just 1.31
percent and 5.69 percent respectively during 2008-09. However,
sales of utility vehicles actually
declined 7.94 percent. During the month of March itself,
passenger vehicle sales dropped 1.15
percent over the same period last year. The segment that was
hardest hit by the slowdown was
commercial vehicles, with truck and bus sales dropping a massive
21.69 percent during 2008-09
over the same period last year. Medium and heavy commercial
vehicles declined by an even larger
33.16 percent, while the decline was less severe for light
commercial vehicles, which dropped 7.10
percent. In March 2009, commercial vehicle sales fell a
substantial 26.22 percent compared to
March 2008, with medium and heavy CVs dropping 43.40 percent
and LCVs falling just 0.17
percent. Also, medium and heavy buses grew by a marginal 0.57
percent and light buses dropped

6.72 percent. Three-wheeler sales fell by 4.13 percent during the


previous fiscal year, while
passenger carriers grew a solid 14.36 percent during 2008-09.
Goods carriers declined a massive
37.52 percent due to the slowdown in economic activity. In March
this year, three-wheeler sales
actually grew by 11.40 percent over the same month last year.
Two-wheeler sales also came under intense pressure in the last
financial year due to the sudden
slowdown in lending to this segment by big private finance
companies. This, coupled with weak
consumer sentiment, has seen the segment report a meagre 2.60
percent growth during 2008-09.
While mopeds and scooters grew by 4.22 percent and 9.11
percent respectively, motorcycle sales
were particularly badly hit, growing just 1.16 percent. Electric
two-wheelers grew by 49.48 percent,
albeit from a relatively smaller base. During March 2009, twowheeler sales grew at a sluggish 3.65
percent over the same month last year, indicating that a
sustained recovery is still sometime away.
Export of automobiles during 2008-09 grew strongly, showing an
increase of 23.61 percent, with all
segments recording increases, except for commercial vehicles
which were affected due to the global
economic slowdown. The export of passenger vehicles and twowheelers grew 53.73 percent and
22.50 percent respectively, while three-wheeler exports grew 4.85
percent. However, exports of
trucks and buses declined by 27.67 percent during this period.
According to Tata Motors, its
domestic sales for March 2009 were 52,686 units while total sales
(including exports) were 54,485
vehicles. For the entire financial year ended March 2009, total
sales were 498,581, which are 14
percent lower than the 582,390 units sold in the previous fiscal.
The company believes that the

financial stimulus packages announced by the government,


particularly for commercial vehicles,
have had a positive impact. However, it feels that the demand for
trucks at the retail level would still
take some time to reach levels from the last fiscal. As a result, its
March 2009 domestic sales were
13 percent lower than those of March 2008. Meanwhile, Mahindra
said it sold 25,748 units in March
2009 in the domestic market, its highest ever monthly sales
figures. This compares with the 23,128
units sold in March 2008, a solid 30 percent increase in sales for
the companys utility vehicles. This
includes the highest ever monthly sales for the Scorpio, Bolero
and the Pik-Up models, which stood
at 19,973 units for March 2009 as against 15,366 units for the
same period last year. The newly
launched Xylo multi-purpose vehicle also sold strongly with 3,124
units finding buyers in the Indian
market. According to Anand Mahindra, vice-chairman and
managing director, Mahindra &
Mahindra, This is a clear validation of the faith reposed in our
products by customers. I am
especially pleased that our new Mahindra Xylo has changed the
rules of the game with impressive
sales figures. The Bolero model has also done very well for the
company, selling a record 55,924
units in 2008-09. According to Mahindra, this makes the Bolero
the first brand in the SUV/ UV/
MPV segments to cross 50,000 units for two consecutive years.
Hyundai Motor India registered a 1.8 percent decline in
cumulative sales during March 2009. While
its domestic sales dropped 15.8 percent, exports grew by 21.6
percent, thanks to higher exports of
i10 and i20 models to Europe. Total March 2009 sales were 46,160
units against 47,001 units in
March 2008. The Indian market accounted for 24,754 units
compared to 29,401 units for the same

month last year, while the exports totaled 21,406 units in March,
2009 against 17,600 units of
March, 2008. According to Arvind Saxena, senior vice- president Marketing and Sales, As we
have stated earlier, the industry is far from seeing a turnaround at
this moment. If we look at the
February and March 2009 sales combined and compare them to
2008 for the same period, then we
have registered a growth of 4.5 percent, whereas March 2009
sales over February 2009 have grown
by 16.7 percent. Maruti also claimed a sales record in March
2009 with its Alto model reporting its
highest ever monthly sales of 23,569 units, a jump of 20.98
percent over the corresponding period
last year. Honda has also reported strong numbers, thanks to the
overwhelming popularity of its New
City, which sold 6,040 units during March 2009. This is a
particularly remarkable feat, given the
difficult market conditions prevailing at the current time. Total
sales for the Japanese carmaker
during the month grew 32 percent with 7,368 units being sold in
March 2009 against 5,579 units
sold in February 2009. SIAM has projected that Indian passenger
car sales during 2009-10 would
grow around five percent, driven by demand from rural and semiurban markets. Commercial
vehicle sales are estimated to rise by as much as seven to 10
percent during the current fiscal, while
two-wheelers are expected to grow by five percent in 2009-10,
thanks to the growth in credit
availability. Growth in demand for passenger vehicles would,
according to SIAM, be driven by the
availability of several new small cars including the Tata Nano,
Maruti Ritz, Honda Jazz and VW
Polo. Other positives for the sector are the upcoming vehicle
repossession guidelines from the
Reserve Bank of India and falling interest rates.

Sales of commercial vehicles will start picking up this year, due to


the extension of the 50 percent
depreciation benefit given to truck owners from March '09 to June
'09. Increased infrastructure
spending by the government should also give a boost to vehicle
demand in 2009-10. The growth in
light commercial vehicles like the Tata Ace is also expected to
continue. Some carmakers, however,
disagree with these projections saying that they are overly
optimistic.

2. COMPANY STUDY

a) HISTORY OF TATA MOTORS


1)(Companys profile)

The Company was incorporated on 1st September 1945 at


Mumbai to manufacture
diesel vehicles for commercial use, excavators, industrial shunter,
dumpers, heavy
forgings and machine tools. The commercial diesel vehicles which
were known `Tata
Mercedes Benz' (TMB) are now called `Tata' vehicles after the
expiry of the
collaboration agreement with Daimler-Benz AG, West Germany.
The company also
used to manufacture pulp and paper making machinery. In 1960
the company's name,
which was Tata Locomotive & Engineering Company Ltd. was
changed to Tata
Engineering & Locomotive Company Ltd. In the year 1987 the
company undertook to
set up a new forge shop, a high output foundry line, a new paint
shop as well as
augmentation of engine and gearbox manufacturing facilities, all
at Jamshedpur
In 1991 During the year the company entered into a collaborative
agreement with an
internationally renowned engine research and development
organisation to jointly

develop higher horsepower, fuel efficient diesel and petrol


engines to meet the future
requirements of the company. The last quarter saw the company
launching two new
passenger vehicles, the SIERRA and the ESTATE totally designed
and manufactured
in India. The company acquired a BIFR company, M/s Noduron
Founders
Maharashtra Ltd. The total cost for Telco worked out to Rs.18
crores as against setting
up of similar critical castings foundry. During the year company
launched a new earth
moving equipment TWK-3036 Tata Front End Wheel Loader. Two
new models in the
EX series of hydraulic excavators were launched. A 10 tonne pick
and carry
articulated crane, designed and developed in-house was also
introducedDuring the
year company entered into an agreement with Nachi-Fujikoshi
Corporation, Japan to
manufacture arc and spot welding robots suitable for automobile
manufacturing
applications. During the year, company undertook to set up a
joint venture with Asian
Glass Co. Ltd., Japan to manufacture float glass to be used as
wind shields for
automobiles. ACC along with Tata Exports Ltd., participated in the
joint venture. The
joint venture named as Floathlass India Ltd., the Company would
have a stake of
16.33%. Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata
Holset Ltd., Tata
Precision Industires, Singapore and Nita Company Ltd., are the
joint Ventures of the
Company
Taking advantage of the broad banding policy announced by the
Government of

India, the Company entered into a collaboration agreement with


Honda Motor Co.
Ltd., Japan, for the manufacture of their `ACCORD' model of cars
in India.
On 22nd April, an agreement was entered into between DaimlerBenz AG and
Mercedes Benz AG, Germany to setup a joint venture company
Mercedez-Benz India
to manufacture `E' class paneyer cans and engines in India.
During the year 1995 a new double pick-up and Army Version of
various Telco
Vehicles were developed. A new petro engine and turbo diesel
engine, an up-graded
709 LCV, new sports utility vehicle Safari expected to be launched
shortly. A 25
tonne 6 X 2 truck and a bus with cummins engine were launched.
Tata Engineering and Locomotive Company (TELCO), has acquired
a second hand
paint shop, machine line and cylinders from the Australian unit of
the Japanese auto
giant, Nissan. TELCO is believed to have picked up the unit for Rs.
70 crore. The
total cost of import duty would be Rs 100 crore. During the year a
machine tool
division was expanded so as to double its machine building
capacity and significantly
reduce production times.
The Company has launched "TATA SAFARI" in its Multi utility
vehicle segment.
Tata Holset's turbo charger plant inaugurated on November 25,
1996.
In 1997, the Tata Engineering and Locomotive Company Ltd.
(TELCO) has emerged
as numero uno in the Review 200 survey conducted by the Far
Eastern Economic
Review in association with Citi Bank. The Company introduced a
9-tonne vehicle

which was well received in the market. A 40 tonne tractor trailer


powered by a Tata
Cummins Engineering was introduced. The Company developed a
low floor bus
chassis to meet the specific needs of urban transport. The
Company signed a new
agreement with Hitachi for manufacture of upgraded versions of
existing range of
excavators.
The year 1998- Tata Engineering and Locomotive Company Ltd
(Telco) announced a
tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the
official financiers for
its small car "Indica" to be launched in December. Tata
Engineering Locomotive
Company Ltd (Telco) sold its construction equipment business into
a new subsidiary
company, Telco Construction Equipment Company Ltd. The
Company in its small car
segment has launched "Tata Indica" which evoked an
overwhelming response in the
Indian market. A new range of cummins engine powered vehicle
which include a 35
tonne and a 40 tonne articulated truck and two variants of buses.
To make substantial improvement in the quality of bus bodies
available with TATA
vehicles, the Company encouraged collaboration between Fuji
Heavy Industries of
Japan and the Automobile Corporation of Goa. The new project
undertakes production
of bodies on TATA chassis, conforming to the most exacting
international standards.
Concorde Motors Ltd., a Joint Venture between Tata Engineering
and Jardine
International Motors (Mauritius) Ltd. was appointed as dealer for
the Company's
passenger cars in several cities across the country, in Feb 1998.

The year 1999-Telco became the first Indian manufacturer to offer


commercial
vehicles meeting euro-I emission norms, a year before they are
due to be introduced in
the country. It is proposed to make TCECL a one-stop shop for
construction
equipment and earthmoving machinery. In Oct 1999, the
Company won the National
award for R&D Efforts in Development of Indigenous Technology in
the Mechanical
Engineering Industries Sector instituted by Department of
Scientific and Industrial
Research, Ministry of Science and Technology for the year 1999.
SKF Bearings India
Ltd has signed an agreement with Telco to supply hub bearings
for its latest model
Tata Indica.
2000 saw the Company working towards introducing two new
petrol-driven variants
of its small car Indica, powered by a multi-point fuel injection
engine. The Company
launched the Indica 2000, the Euro II Complaint, 75 BHP multipoint fuel injection
(MPFI) version of Indica. The Company has won the National
Technology Award
for indigenous development and commercialization of the Tata
Indica car. The
Company has launched its new hi-tech Indica 2000 car with MPFI
petro engine in
Guwahati.
Tata Engineering & Locomotive Co. is renamed as Tata
Engineering Ltd. It replaced
its three-shift production line with a one-shift daily schedule
starting from 26th June.
In the same year FICCI-SEDF- Businessworld-Compaq award for
social
responsiveness was awarded to the company. The Central
Pollution Control Board for

Environmental Technology award has been presented to Tata


Engineering in
recognition of its contribution towards efforts to conserve the
environment. TATA
Engineering on September 10 announced the addition of MPFI
petrol version to the
Indica V2 range.
In year 2002 Foreign Institutional Investors (FII) hike stake in the
company to 13.34%
Launches six new products in light, medium and heavy vehicles
segments on Jan 15
during Auto Expo . Announces financial restructuring . Displays its
Tata Sedan car at
the Geneva Motor Show . Indica adjudged top selling B-segment
car in
2002.Launches two new motorsport cars (The Zero and Double
Zero Pace cars). High
Court Approves Tata Engineering's Financial Restructuring. Tata
Engg, BPCL tie up
to market co-branded lubricants.Tata Steel's investment in Tata
Engineering has been
hiked to Rs 117.98 crore over the last year. Telco names Sedan as
Tata
Indigo.Unveils 'EX' series of medium and heavy commercial
vehicles. Indica sales
cross two-lakh mark .Collaborates with Nippon-Arcelor for
technical knowhow on CR
steel. Receives Teri's (The Energy and Resources Institute) CoREBCSD (Corporate
roundtable on development of strategies for sustainable
development and
environment-business council for sustainable development)
corporate social
responsibility (CSR) awards for '01-02. Unleashes Safari's petrol
version; priced at Rs
9.35 lakh.
The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a
binding

Memorandum of Understanding (MoU) with Deawoo Commercial


Vehicle Company
Ltd (DWCV), Korea for the acquisition of this company. It
introduces Tata SFC 407
EX Turbo Light Commercial Vehicle (LCV). The Company changed
from 'TELCO '
to 'TATAMOTORS' w.e.f December 24, 2003. In the same year Tata
Safari ranks No
1 in MUV/SUV segment.
2004:- The year of glory. Tata Motors launch an upgraded version
Indica on January
15, 2004, in a bid to shore up sales of the small car.
Auto Expo: Tata unveils new version of Indica. Tata Motors unveils
Indica V2. Tata
Motors launches new Indica V2 in Kerala. Tata Motors introduces
new 'Indicab' for
tour operators. The much hyped Rs one lakh passenger car
project of Tata Motors was
going ahead as planned. Tata Motors enters agreement with
Ukraine bus building
firm. Tata Motors enters into agreement with Etalon. In a move to
consolidate its
presence in the light commercial vehicles segment, Tata Motors
has launched a new
variant of its 407 series with increased pay load capacity called
SFC 407EX. Tata
Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors
unveils Tata SFC 407
EX. Tata Motors inks agreement with Austrian, French companies.
Acquires Daewoo
Commercial Vehicle Company Ltd (DWCV), Korea. Tata Motors
launches most
anticipated new 6-tn truck in India.
Tata Motors, the country's largest commercial vehicles
manufacturer unveiled the new
LPT 909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa
unveiled a

range of passenger cars, utility vehicles, pick-ups, trucks and


buses for the South
African market. Tata Motors has launched a face lifted version of
its multiutility
vehicle, Tata Sumo. Tata mototrs rolls out Tata SFC 407EX BS II
turbo light
commercial vehicle.
Tata Motors unveils Tata Safari DICOR in Kerala market on
August 11, 2005. Tata
Motors rolls out 2 luxury variants of Indigo. Tata Motors unveiled
new Indica V2
Turbo with a price tag of Rs 4.10 lakh for DLG variant and Rs
4.31 lakh for DLX.
Tata Motors ropes in CVTech to make parts for its small car. Tata
Daewoo inks pact
with Pakistan co.
Tata Motors has been presented the Golden Peacock Global Award
for Corporate
Social Responsibility (CSR) in the Large Business category by the
Institute of
Directors in 2007. Tata Motors buys Nissan facility in S. Africa. Tata
Motors has got
a prestigious order from the Delhi Transport Corporation (DTC) for
500 non-AC,
CNG-propelled buses. Tata Motors Ltd has appointed Mr. P M
Telang as Executive
Director (Commercial Vehicles).

4) Organization Structure

The Board: No separate office is maintained for the NonExecutive Chairman. Being the Group
Chairman, the Company does not reimburse expenses incurred by
the Non-Executive Chairman for
maintenance of a separate Chairmans office.

No specific tenure has been specified for the Independent


Directors. Mr Setna and Mr S A Naik,
Independent directors, have tenures, in the aggregate, exceeding
a period of nine years.
Remuneration Committee: Details are given under the heading
Remuneration Committee.
Shareholder Rights: A half yearly declaration of financial
performance, including summary of
significant events in the last six months, is sent to all the
shareholders. The Financial Results are also
put up on the Companys website, besides being available on the
SEBIs website www.sebiedifar.nic
Audit Qualifications: During the year under review, there was
no audit qualification in the
Companys financial statements. The Company continues to adopt
best practices to ensure a regime
of unqualified financial statements.
Training of Board Members: The Directors interact with the
management in a very free and open
manner on information that may be required by them on
orientation and factory visits. The
independent Directors are encouraged to attend training
programmes that may be of relevance and
interest to the Directors in discharging their responsibilities to the
Companys stakeholders under the
emerging business environment.
Mechanism for evaluation of non-executive Board
members: The performance evaluation of
non-executive members is done by the Board annually based on
criteria of attendance and
contributions at Board/ Committee Meetings as also role played/
contributions other than at
Meetings.
Whistle Blower Mechanism: The Audit Committee had, at its
Meeting held on August 9, 2004,
framed a Whistle-Blower Policy and the same was reviewed and
amended by the Audit Committee

on January 19,2009. The Policy provides a formal mechanism for


all employees of the Company to
approach the Management of the Company (Audit Committee in
case where the concern involves
the Senior Management) and make protective disclosures to the
Management about unethical
behaviour, actual or suspected fraud or violation of the
Companys Code of Conduct or ethics
policy. The Whistle Blower Policy is an extension of the Tata Code
of Conduct, which requires
every employee to promptly report to the Management any actual
or possible violation of the Code
or an event he becomes aware of that could affect the business or
reputation of the Company.
The Company expects all Directors to exercise good judgment, to
ensure the interests, safety and
welfare of customers, employees, and other stakeholders and to
maintain a cooperative, efficient,
positive, harmonious and productive work environment and
business organization. The Directors
while discharging duties of their office must act honestly and with
due diligence. They are expected
to act with that amount of utmost care and prudence, which an
ordinary person is expected to take in
his/her own business. These standards need to be applied while
working in the premises of the
Company, at offsite locations where the business is being
conducted whether in India or abroad, at
Company-sponsored business and social events, or at any other
place where they act as
representatives of the Company.
A. adherence to the highest standards of honest and ethical
conduct, including proper and ethical
procedures in dealing with actual or apparent conflicts of interest
between personal and professional
relationships.
B. full, fair, accurate, timely and meaningful disclosures in the
periodic reports required to be filed

by the Company with government and regulatory agencies.


C. Compliance with applicable laws, rules and regulations.
D. To address misuse or misapplication of the Company's assets
and resources.
E. The highest level of confidentiality and fair dealing within and
outside the Company.
THE CODE OF CONDUCT FOR THE DIRECTORS IN TATA
MOTORS
CORPORATE GOVERNANCE OF TATA WITH CERTAIN RULES:In TATA the corporate governance is managed very well with
certain rules which are given below
and there are some people assigned to address the issue, so
overall the corporate governance in
TATA is in very sound position as their disclosures during annual
report or quarterly report and very
clear to the share-holders and investors also, provided their codes
of ethics are also very strong.
1. Any employee/business associate who becomes aware of a
suspected wrongful conduct is
encouraged to send his/her observations/concrete facts to the
Direct Touch Team either through
phone or written communication complete with related evidence
(to the extent possible) without fear
of reprisal or retaliation of any kind.
2. The information on suspected wrongful conduct is such
information which the
Employees/business associates in good faith, believe, evidences:
a. A violation of any law or regulation, including but not limited to
corruption,
bribery, theft, fraud, coercion and willful omission
b. Pass back of Commissions/benefits or conflict of interest
c. Procurement frauds
d. Mismanagement, Gross wastage or misappropriation of
company funds/assets
e. Manipulation of Company data/records
f. Stealing cash/company assets; leaking confidential or
proprietary information
g. Unofficial use of Companys material/human assets

h. Activities violating Company policies including Code of Ethics


and Conduct
i. A substantial and specific danger to public health and safety
j. An abuse of authority
k. An act of discrimination or sexual harassmen
THE CODE OF ETHICS IN TATA MOTORS
Commitment to ethical professional conduct is a MUST for every
employee at TATA- in all of its
businesses/ units/ subsidiaries. The code is intended to serve as a
basis for ethical decision-making in
the conduct of professional work.
Contribute to society and human well-being
This principle concerning the quality of life of all people affirms an
obligation to protect
fundamental human rights and to respect the diversity of all
cultures. So employee in TATA
attempts to ensure that the products of their efforts will be used
in socially responsible ways, will
meet social needs and will avoid harmful effects to health and
welfare of others.
In addition to a safe social environment, human well-being
includes a safe natural environment.
Therefore, all who are accountable for the design, development,
manufacture and promotion of
TATA products, must be alert to, and make others aware of, any
potential damage to the local or
global environment.
Avoid harm to others
"Harm" means injury or negative consequences, such as loss of
property, property damage or
unwanted health and environmental impacts. This principle
prohibits use of men, material and
technology in ways that result in harm to our consumers,
employees and the general public.
Well-intended actions, including those that accomplish assigned
duties, may lead to harm
unexpectedly. In such an event, the responsible person or persons
are obligated to undo or mitigate

the negative consequences as much as possible.


Be honest and trustworthy:
Honesty is an essential component of trust. Without trust an
organization cannot function effectively.
So they are expected not to make deliberately false or deceptive
claims about their products/
systems, but instead provide full disclosure of all pertinent
limitations and problems
Be fair and take action not to discriminate
The values of equality, tolerance, respect for others, and the
principles of equal justice govern this
imperative. Discrimination on the basis of race, sex, religion, age,
disability, national origin, or other
such factors is an explicit violation of this code.
Practice integrity in our inter-personal relationships
In their relationships with colleagues, all should treat them with
respect and in good faith; in the
same way we ourselves would expect them to treat us. The
principle to be adopted to guard against
loose talk or in its worst form- character assassination- is not to
say anything behind ones back and
never utter something, which cannot be put in writing.
Honor confidentiality
The principle of honesty extends to issues of confidentiality of
information. The ethical concern is to
respect all obligations of confidentiality to all stakeholders unless
discharged from such obligations
by requirements of the law or other principles of this code.
SPECIFIC PROFESSTIONAL RESPONSIBILITY
Ownership
This is our company. We accept personal responsibility and
accountability to meet business needs.
Passion for winning
We all are leaders in our area of responsibility with a deep
commitment to deliver results. We are
determined to be the best at doing what matters most.

People development
People are our most important asset. We add value through result
driven training and we encourage
& reward excellence.
Consumer focus
We have superior understanding of consumer needs and develop
products to fulfill them better.
Teamwork
We work together on the principle of mutual trust and
transparency in a boundary less organization.
We are intellectually honest in advocating proposals, including
recognizing risks.
Innovation
Continuous innovation in products and processes is the basis of
our success.
Integrity
We are committed to the achievement of business success with
integrity. We are honest with
consumers, with business partners and with each

THE FINANCIAL ANANALYSIS OF TATA


MOTORS
In the October-December quarter of the Financial Year 2008-09,
the automotive sector
in India suffered severe contraction in demand, arising from major
financial and other
market upheavals. This exacerbated the lack of liquidity and
unavailability of
consumer finance. This, along with contraction in freight
movement in many
segments of the industry, led to a massive drop in the M&HCV
segment demand.
High interest rates and peak commodity prices also affected the
industry and the

supply chain. The overall CV industry declined by 43.9% while


TMLs Commercial
vehicle business declined by 40.0% supported by a diversified
product portfolio.
Consequently Tata Motors gained substantial market share both in
MHCV and LCV
segments. While the passenger vehicle industry declined by
16.5% affected by high
interest rate and restricted credit availability, TMLs Passenger
vehicle business
declined by a lower 14.4%. The rate of decline was arrested
due to encouraging
response to new products introduced Indigo CS and
Indica Vista. Going ahead
ramping up of the capacity of Indica Vista would help the
company to arrest decline
in small car market share. The export volumes of the Company
registered a decline of
44.9%% during FY09, due to global economic slowdown and credit
crunch, especially
in prime markets which witnessed adverse impact on automotive
demand.
Tata Motors celebrated the 10th anniversary of the launch of the
Indica on December
30, 2008. To mark this milestone, a 10th Anniversary Limited
Edition Indica Vista
35

was launched. In the first decade, close to 940,000 Indicas had


been produced and the
platform has spawned off close to 1.2 million vehicles. The Indica
has remained a
bestseller throughout in the industry figuring in the top 3 selling
list of cars for most
of the years. It achieved a peak sale of 144,690 in 2006-07 and
the new generation
Indica Vista was launched in August this year to a continuing
pull even in todays
depressed market conditions.

STRENGTH:

3) SWOT ANALYSIS

1.Strong Presence in the Marketplace:-Tata Motors is the


only company in India with
a broadbased presence across the industry, in all segments of the
commercial vehicles market
heavy and medium commercial vehicles, light commercial
vehicles, pick-ups, sub one-tonne
mini-trucks - and key segments - compact, midsize car and utility
vehicle segments - of the
passenger vehicles market.
2.Unique Understanding of Customer Need:- With 50 years
presence in the automotive
business,Tata Motors understands customer needs and develops
products that meet their needs.To
consider a few examples, as early as 1980s, the company
launched Light Commercial Vehicles,
amidst Japanese competition, in which it today strongly leads. In
the 1990s, anticipating the need for
an affordable family car, it launched the now famous Tata Indica,
which occupies a leading position
among compact cars.
3.Skill Base Developed Over the Last 40 Years:-Tata Motors
is also very well-placed on
technology capability.The company had set up its Engineering
Research Centre as early as
1966.With 1400 scientists and engineers and state-of-the-art
development, testing and validation
facilities, it is this technology capability which has, allowed Tata
Motors, over the decades, to offer
indigenouslydeveloped products.This strength has been
accentuated, with the inclusion of
TMETC,TDCV and Hispano Carrocera in the R&D network, besides
several other specialist
external agencies.The company no longer needs to develop every
necessity itself.Today it just has to

manage the process of product creation, drawing upon already


available R&D and skills from
different sources.
4.People Strength:- The companys key strength is its
people.The over
22,000 employees comprise a very broad talent base, with the
required skills in every aspect of the
industry.With increasing international initiatives by the company,
this talent base is now getting
enriched with the necessary competencies to respond to meet
world-class standards of
quality and cost. The company will achieve this by developing and
marketing relevant products,
on its existing platforms and new ones, which delight consumers
in every market they are
introduced in.
5.Tata Motors linkages in Europe through Subsidiary
Companies:- In October 2005,Tata
Technologies Ltd, a 100 per cent subsidiary of Tata Motors,
acquired a 94.3 per cent stake in INCAT
International Limited. INCAT is a supplier of engineering & design,
product lifecycle management and product-centric IT services to
the automotive, aerospace and
durable goods industries.
6.Tata Motors R&D in Europe:- Deepening its engagement
with the European
R&D space, in September 2005,Tata Motors set up the Tata Motors
European Technical Centre,
a 100 per cent subsidiary, in the UK. It is engaged in design
engineering and development
of products for the automotive industry.Working
synergistically,TMETC provides the company with
design engineering support and development services,
complementing and strengthening the
companys skill sets and providing European standards of delivery
to the companys passenger
vehicles.
7. Engineering:-The Tata group has a robust presence in
engineering, with operations in

automobiles and auto components and a variety of other


engineering products and services.
8.Materials:- The Tata group is among the global leaders in this
business sector, with operations in
steel and composites.
9.Services: The Tata group has widespread interests in the
hospitality business, as also in insurance,
realty and financial and other services.
10. Energy: The Tata group is a significant player in power
generation and is also involved in the oil
and gas segment.
11.Chemicals: The Tata group is one of the largest producers of
soda ash in the world. Additionally,
it has interests in fertilisers and in the pharmaceuticals business.

OPPURTUNITIES:
1. Indias huge geographic spread-This is one aspect where
the company is looking for and its
diversified range of cars suits very much this area of car or say
auto industry in country.
2. Easier finance schemes- The current fiscal stimulus and easy
loan will surely guide the
company to post good sales as the current trend shows the cars
sales has been boosted by
easy loan norms in the country.
3. Replacement of aging four wheelers-One of very important
reason where the car industry
and commercial vehicle can take advantage in coming days.
4. Increasing Road Development, Golden Quadrilateral-as
we all know the infrastructure
will surely boost the auto industry as it is directly related to the
this industry and the
government policy in spending the money ion infrastructure will
create good demand.
5. Increasing dispensable income of rural agri sector-Some
how this year the rural demand

was very enthusiastic than the urban market which drive the auto
industry so, the
development of rural infrastructure and condition will create
handsome demand from the
rural area.
6. Higher GDP growth-With standing tall during the slowdown
our economy has shown the
industry that demands will gain momentum in near future very
soon.
7. Increasing disposable income with the service sector-As
the consumers have money in
their hand definitely there will be demand from their side so, this
is also very good
opportunity for this sector.
8. Graduating from Two wheeler to Four wheeler-The dream
of NANO will boost demand
for four wheeler in the auto industry.

THREAT:
1. Indian is lacking in proper infrastructure this is slowing the pace
of growth of auto industry
2. Global crisis- this really hurts the Indian growing industry and
not only the auto but tyre
industry went for toss.
3. High competition from foreign players-As the giants like
GM, Audi, MERC etc are trying
to capture the high segment market it is one of the very effective
threat to the company.

WEAKNESS:
1.The current financial situation of its recently acquired firms like
Corus and Land
Rover-Jaguar is very big headache for the company and it
should be back to the track in
the near future.

2. The high ratio of debt equity ratio is also weakness of the


company.
3. The small car segment is still not good for the company due to
maruti-suzuki so, it need
to tap this section also.
4.The CV segment is becoming highly competitive by new player
like Volvo,and rival M
&M are coming with new products to cater the TATA in the market
as the rural area has
given thumps up to M&M during this year

PROBLEM AND RESEARCH METHODOLOGY


STATEMENT OF THE PROBLEM
In the event of a company does not adopt a fair measure of the
potential market ,It will
have a direct impact on the sales of the product, and the
company may have to pay
heavy price in maintenance of the business .If the critical markets
are not accorded
adequate attention, it may be the determinant of an unsuccessful
product.
PURPOSE OF THIS RESEARCH IN TO STUDY OF BUYING BEHAVIOUR OF
CUSTOMERS FOR TATA INDICA VISTA
OBJECTIVE: The objective is to study those factors which can
accelerate the
marketability of the TATA VISTA compared to its competitors.
To understand the market potentiality for VISTA.
To determine the acceptable price of the product.
To determine the requirements and needs of the potential
customers.
STUDY POPULATION:
Sample size- 30
AREA CONSIDERED FOR THIS STUDY ARE:
Automobile history
Industry investment
Industry growth
Vehicle production

Auto export
Auto companies
LIMITATIONS OF THE STUDY
Study is restricted to Allahabad and naini industrial areas only.
Continuous and reliable information was not available.
Some of the information was confidential so much information
was not
revealed.
The time span of the survey was short and hence only major
aspects were
considered.
Information provided by the respondent in terms of their fuel
usage and their
expense could not be very accurate.
Availability of the respondents amidst their busy schedule did
not permit
detailed study.
METHODOLOGY OF THE STUDY

Method of Analysis:
An analytical research was carried out to gain insight and proper
understanding of the
market. This was done through the questionnaire and personal
interaction with the
43

managers and supervisors of industries. This was followed by


comparative study
analysis. Several graph and tables were prepared for better
analysis of the market.

Research Instruments:

The research was based on the collection of primary data. Since


product is new to the
Allahabad market secondary data is not advised.

Primary Data:

Primary data was collected through a structured questionnaire.

Personal interaction with the company managers and


supervisors.
Interaction with industry experts in Allahabad.

6) FINDINGS & SUGESSTIONS

FINDINGS

1) TATA MOTORS, is number three in passenger car market after marutisuzuki & hyundai.

1) Majority of the customers see TATA MOTORS with savings.


2) Most of the customers spend large sum of money
3) Out of the samples, people are highly convinced that TATA
MOTORS will
yield them better results
4) As the sales of Maruti grows as well as Hundais santro is still
doing well in
mid size and small size segment so the INDICA VISTA may be a
good options
for the company in this term for sustaining sales in long run as
well as in the
current situations.
5) Product will have a gradual progress. Because most industries
would wait for
the response about the product from other Company.
6) Customers were educated by me, about fuel efficient cars by
TATA MOTORS
SUGGESTIONS
Based on the findings from the analysis the following suggestions
could be made:
Demo of the product should be made available to Customers,
since most of the
purchase decisions are based on it.

Technical details should be made available to the customers in


the most
accurate numerical form.
The Indica has remained a bestseller throughout in the industry
figuring in the
top 3 selling list of cars for most of the years.
The distribution channel should be more efficient to cater the
demand during
peak seasons like during dassraa, diwali etc .
The city like Allahabad is mostly dominated by the working class
like people
employed in high court, AG office( accountant general office) and
government school
employees who this year are getting more pay due to the
recommendations made by
the sixth pay commission so , the sales for mid size car can be
enhanced in this
scenario.

7) CONCLUSION
The study was conducted to measure, THE CUSTOMER BEHAVIOR
in purchasing
INDICA VISTA. The study was conducted on 30 Customers. A
questionnaire was
designed to understand the market and create awareness about
TATA MOTORS.
Based on the questionnaire, data was collected and analyzed and
it was found that the
customers are willing to buy the Cars. However they are also
skeptic about it.
Suggestions are provided based on customer requirements and
market situation. An
earnest attempt has been made to make the study realistic and
suggestive, but it is not
claimed that the findings and suggestions in the report are
perfect.

9) BIBLIOGRAPHY
BOOKS:
KOTLER PHILIP AND ARMSTRONG, GARY MARKETING
MANAGEMENT
MARKETING RESEARCH by R Nandagopal & K Arul Rajan
MAGAZINES:
MONEY TODAY
BUSSINESS WORLD
OUTLOOK PROFIT
INDIA TODAY
WEBSITES:
Tatamotors.com
Yahoofinance.com
Valuereseacrhonline.com