Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
The beauty of the destination is half veiled and the fragrance of the success half dull
until the traces of all those enlightening the path are left to fly with the wind spreading
word of thankfulness
Keeping this in view; it would be unfair on my part if I dont thank the
mentioned few. I express my sincere gratitude to Mr. Piush Shankar (marketing
manager Tata Motors) who gave me the opportunity to get training in such a recognized
company. His guidance and knowledge helped me to learn professionalism in the real
sense.
I would like to express my deep sense of gratitude to prof. chetan wakalkar, director
ISMS, pune for providing me such an environment to achieve the goals and to prosper in
the corporate world
I am also grateful to my project guide prof.Anandikar ISMS, Pune Who extended his
complete support to make me deliver my best.
Executive Summary
Company profile
Tata motors limited is Indias largest automobile company with revenues of Rs. 24,000
corers in 2005-06, have grown significantly in past 60 years since its establishment in
1945.
The company is the leader by far in commercial vehicles
in each segment, and the second largest in the passenger vehicles market with winning
products in the compact, midsize car and utility vehicle segment. The company is worlds
fifth largest medium and heavy commercial vehicle manufacture.
Product profile
TATA Motors has launched a new version of its small car. Christened Indicia V2 Xeta,
the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmpl
under standard test conditions.
Research methodology
1.
2.
3.
4.
research design
sampling plan
instruments of collection of data
data analysis and interpretation
Conclusion
This project research is the analysis of consumer awareness towards the newly launched
car xeta by the branded company Tata motors. People belonging to middle class generally
preferred the Tata- xeta going on far its brand name its history goes with delivering value.
The customer of tata-xeta just had one problem and they said they are not by the
performance of the car in the sense of its mileage when compare to Maruti alto in the
same segment and price.
Limitation
With in the limit period of time it is too difficult to cultivate in a whole market. Cost is
also a major factor of pushing back to us in our research.
Recommendation
This project was about to study the customer orientation towards tata-xeta, many of the
customers complained about the mileage given by the tata-xeta is quite less than that of
maruti-alto.
Many customers complained advertisement shown for tata-xeta which they called to be a
confusing one.
Bibliography
http://carsinindia.com/indicaxeta1.asp
http://ir.tatamotors.com/PushFile.php?
filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdf
http://www.maxabout.com/automotive/auto_cars/companies/Tata.aspx
http://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html
http://www.carwale.com/Research/chooseCarsForComparison.aspx
ANEXTURE
Questionnaire.
Introduction
The time has gone when people just wanted to have vehicles as a means of transportation
but nowadays they are more aware about the vehicle model, their price and various other
features which make them owner of a commodity which makes their neighbors feel envy
of their choice. As India opened its gates for the foreign companies various automobiles
giants entered our country seeking it as their target market. We Indians also got a wide
variety of cars to choose from. Hyundai entered in India with a view to capture the small
market segment earlier captured mostly by two giant Indian companies- Tata Motors and
Maruti Udyog Limited.
Tata is one of the company in which the Indians trust like anything. It has diversified
itself in a number of sectors gaining the trust and proving its competence in every such
field. Tata when come up with a small car segments it was welcomed by people in the
same way as it welcomed all its products. It had a wide choice of four wheelers to satisfy
the varied Indian choices. In the other hand Maruti also is said to capture the pulse of
Indian middle class by giving them their Maruti 800.To its wing it added many other cars
to competition to Tata motors.
Now these two companies even have to fight for their existence in this automobile
sector and had to produce in context of giving tough competition to the various foreign
companies. If we think about just these two companies they are also tough competitor of
each other since ages. They had always tried to give their customers the products to
cherish upon. There are products which are liked by the customers in India and
worldwide.
In this context we are here to compare two premier models of these two auto
companies, which will give us the ultimate result of what the customer genre thinks about
these two companies. This project also thus deals with a comparative study of these
companies with respect to their own products in the small car segment.
As both the companies are eager to capture the small car segment of India which is
mostly owned by the middle class society of India.
To do comparative analysis of the Tata-Xeta and Maruti Alto with their product
features and market share.
To study the consumer awareness about the product Tata-Xeta with the corporate
clients, in Bokaro Steel City.
Research Methodology
According to Green and Tall A research design is the specification of the methods and
procedures for acquiring the information needed. It is the overall operational pattern or
framework of the project that stipulates which information is to be collected, from where
it is to be collected and by what procedures
This research process based on primary data analysis and secondary data analysis will be
clearly defined to meet the objectives of the study.
I chose the primary sources to get the data. A questionnaire was designed in
accordance with our mentor in Tata Motors. I chose a sample of about 75
corporate customers around the Bokaro Steel City from which I can get the instant
information of whose analysis will give me the desired outcome of my research
project.
I collected some data from the secondary sources like published Company
documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in
procedures. It is a descriptive cross sectional design .It is the conceptual structure with
in which research is conducted; it constitutes the blueprint for the collection,
measurement and analysis of data.
It is needed because it facilitates the smooth sailing of the various research operations,
thereby making research as efficient as possible yielding maximal information with
minimal expenditure of effort, time and money.
Sampling Plan
Sampling plan is a distinct phase of research process. In this stage I have to determine
who is to be sampled, how large should be the needed sample and how sampling unit is to
be selected.
Population
In my research, I have defined my population as a complete set of customers of Bokaro
Steel City.
Sample Survey
As compared to census study, a sample study has been conducted by us because of:
Wide range of population, it was impossible to cover the whole population
Time and money constraints.
Sample Unit
In this survey I took the list of customers from the dealers of Tata Motors in Bokaro Steel
City.
Sampling Technique
Sampling technique implies the method of choosing the sample items, the two methods of
selecting sample are:
Probability method.
Non-probability method.
Probability method is those in which every item of the universe has an equal chance of
the inclusion in the sample. Non-probability methods are those that do not provide
every item in the universe with known cause of being included in the sample. The
selection process is partially subjective.
For my study, I employed the Non-probability sampling technique, in which I got the data
of the customers from the dealer of Tata Motors in Bokaro Steel city.
6
Company profile
Tata Motors Limited
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000
corers (USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each
segment, and the second largest in the passenger vehicles market with winning products
in the compact, midsize car and utility vehicle segments. The company is the world's fifth
largest medium and heavy commercial vehicle manufacturer.
The company's 22,000 employees are guided by the vision to be best in the manner in
which we operate best in the products we deliver and best in our value system and
ethics.
As an enterprise under Indias largest multi holding company, Tata Motors has grown
significantly in the past 60 years since its establishment in 1945.The company caters to
three main market segments globally: the passenger cars, utility vehicles and commercial
vehicles. A significant breakthrough for the company was the development and
commercialization of the truly Indian cars-Tata Indicia and Tata Indigo. The company
produced its first mini truck, first light and first heavy vehicle and many more fists in
India ,being an innovator in their industry. It has followed a strategy of acquisitions and
joint ventures in its mid-stage and launched new products at a rapid pace in different
market segments. Today, Tata Motors enjoys the position of being Indias leading
automobile manufacturer with increasing presence in Europe, South East Asia. Africa and
the Middle East with a total income of US $4 billion in 2004-05.The company focuses on
providing customers the best value for their money and meets European standards and
environmentally regulations through their advanced technologies.
Established in 1945, Tata Motors is one of the 32 publicly listed enterprises infer the Tata
Group, Indias largest business conglomerate. Tata Motors collaborated with Germanys
Daimler Benz in 1945 for 15 years to manufacture commercial vehicles .Since then, Tata
Motors has grown enormously and produces several vehicles through their main
8
Divisions- Passenger Cars, Utility Vehicles and Commercial Vehicles. In 1959, they set
up their first and largest R&D centre in Jamshedpur.In 1961, exports had begun and the
first truck was shipped to Sri Lanka.Another R&D Centre was started in Pune in 1966 to
support automobile research which produced the first commercial vehicle by 1983 and
light commercial vehicles three years later. With increasing sales popularity, they sold
their one millionth vehicle by 1991 .Their interest in tapping the diesel engine market
was evident through their joint venture with Cummins Engine Co.Inc in 1993 for the
production of high horsepower and emission friendly diesel engine.
After the joint venture in 1993, a few others were pursued the following year. An
agreement with Daimler-Benz in 1994, allowed Tata Motors to produce high end
Mercedes Benz passenger cars for the Indian market .In 1998, they launched their first
sports utility vehicle, Tata Safari. This was an important year as their sales doubled to 2
million vehicles and marked the munch of Indias first fully indigenous passenger car,
Tata Indicia .The Indicia was a success and over 115,000 bookings with full payment
Within a year of its launch.
Tata Motors' presence indeed cuts across the length and breadth of India. Over 3.5
million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base is spread across Jamshedpur, Pune and Lukhnow,
supported by a nation-wide dealership, sales, services and spare parts network comprising
about 1,200 touch points.
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 a global automotive
company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's
second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles
Company has already begun to launch new products. In 2005, Tata Motors acquired a
21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an
option to acquire the remaining stake as well. Hispano's presence is being expanded in
other markets.
These acquisitions will further extend Tata Motors' global 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, Australia, South East
Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Spain,
Ukraine, Russia and Senegal.
The foundation of the company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D.
With 1,400 engineers and scientists, the company's Engineering Research Centre,
established in 1966, has enabled pioneering technologies and products. It was Tata
Motors, which developed the first indigenously developed Light Commercial Vehicle,
India's first Sports Utility Vehicle and, in 1998, the Tata Indicia, India's first fully
indigenous passenger car. Within two years of launch, Tata Indicia became India's largest
selling car in its segment.
The pace of new product development has quickened. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck. The
years to come will see the introduction of several other innovative vehicles, all rooted in
emerging customer needs. Besides product development, R&D is also focusing on
environment-friendly technologies in emissions and alternative fuels.
Through its subsidiaries, the company is engaged in engineering and automotive
solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for automotive
and computer applications, and automotive retailing and service operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to
Corporate Social Responsibility. It is a signatory to the United Nations Global Compact,
and is engaged in community and social initiatives on human rights, labour and
environment standards in compliance with the principles of the Global Compact.
10
This was the first unit of the Company established in 1945 and is spread over an area of
822 acres. It consists of 3 divisions - Truck, Engine (including the Gear Box division) and
Axle. The divestments in March 2000 hived off the Axle and Engine plants into
independent subsidiaries. The Truck Division boasts of two assembly lines. The main
assembly line, measuring 180 meters in length, has 20 stations with a vehicle rolling out
every 8 minutes while the other line is dedicated to Special Purpose Vehicles (SPVs).
State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up of a 5000
tonne Siempelkamp press line and a cut-to-length line for strip preparation purchased
from M/s. Kohler of Germany makes it a fairly advanced production outfit.
This is supported by a fully equipped Foundry, which supplies high-grade SG Iron
castings for automobile components and excavators and is rated as one of the cleaner,
better and highly automated foundries in the world. The Foundry has a sophisticated
Kunkel Wagner high pressure molding line, which has a rated production capacity of 90
11
Pairs of moulds every hour. The Foundry has its own melting shop, core shop and sand
plant.
Other advanced facilities include Channel Furnaces, Computerized Testing Equipment
etc. In 1993, the Foundry was ISO 9002 certified by the Bureau Verities Quality
International and later followed it up with the more stringent QS 9000 certification from
the BVQI in the year 2000.
The unit is also equipped with a semi-automated forging line, with 40,000 mkg Bache
hammer and state-of-the art presses from Kurimoto of Japan and is one of the most
modern forging set-ups in the country. It produces critical forgings like crankshafts,
front axle beams and steering parts for the automobile plant. The new forging line,
installed on April 20, 1984, has the capability to forge front axle beams at 90 sec per
piece and crankshafts at 120 sec per piece. Mechanical presses help produce a variety of
heavy forgings. The sophisticated FIDIA Digit 165 CC graphite-milling machine links
shop floor machines to the design workstation. The Forge has been certified as ISO
9002 and QS 9000 by the BVQI.
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri and Chinchwad and has a
combined area of around 510 acres. It was established in 1966 and has a Production
Engineering Division, which has one of the most versatile tool making facilities in the
Indian sub-continent. It houses a Vehicle manufacturing complex which is one of the
most integrated automotive manufacturing centers in the country producing a large
variety of individual items and aggregates. It is engaged in the design and manufacture of
sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as
models for the development of new ranges of automobile products. Its capabilities have
enabled Tata Motors to introduce new products and improve existing ones without
resorting to imports of dies or fixtures.
12
Lucknow:
Established in 1991 and covering an area of 600 acres, the Lucknow Plant was
established to assemble Medium Commercial Vehicles (MCVs) to meet the demand in
the Northern Indian market.
In 1995, the unit started manufacturing bus chassis of Light Commercial Vehicles (LCVs)
and Tata Sumos. The unit is also equipped with facilities to manufacture spare parts.
Customers'Quote
"We are happy to inform you that the feedback received from our Japanese personnel
(after their visit to your plant) is very positive and hence have decided to set the die
quality
of
Tata
Motors,
Jamshedpur
dies
as
benchmark."
STTI (Toyota),
Bangalore
March, 2004
Tata Motors has proven excellence over the years through its technologically advanced
products, market expansion, customer satisfaction and increasing sales.Tata Motors
consistently strives to increase shareholder value, build stronger customer relations and
work with its business partners to provide the best value for money. The company is also
involved in accelerating the countrys economic growth and protecting the environment.
With the initial financial backing of the giant parent company,Tata Group, the division
has built a strong business over the past 60 years and continues to show strong financial
results. The continual improvement and introduction of new products in the market have
allowed it to successfully enter as well as dominate the automobile industry in India. Tata
Motors reported a record sale of 454,345 vehicles (including exports) for the fiscal year
2005-06, its highest ever, and a growth of 13.7 per cent over the 399,566 vehicles sold in
2004-05. Total sales (including exports) for the month of March 2006 were 56,406 units,
the companys highest ever monthly sales and an increase of 27 per cent over the 44,432
units sold in March 2005.
In case of exports, The Company exported 6,508 vehicles in March 2006 as compared to
3,964 vehicles in March last year, an increase of 64.2 per cent. The cumulative sales from
exports during the year at 50,539 vehicles, a new peak, have recorded a strong 65.7-per
cent growth over the 30,496 vehicles sold last year.Tata Motors continues to make deep
inroads abroad with its strategy of focusing on select markets with relevant products from
its commercial vehicles and passenger vehicles range.
14
15
Product profile
Tata Indicia Xeta
Webster's Dictionary circa 2050 Indica: A successful Indian product of truly Indian
origins. The word is derived from the first automobile to be designed, manufactured and
sold successfully by an Indian company. Several variants of its original hatchback design
were spawned and eventually over one million vehicles based on the platform were sold.
The diesel-engine vehicle sold in large numbers across the nation and even has the
notable achievement of having been exported to several countries across the globe. The
diesel-engine Indica received notable appreciation from all around, whereas the petrolfuelled versions played second fiddle on the sales graphs.
TATA Motors has launched a new version of its small car. Christened Indica V2
Xeta, the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14
kmpl under standard test conditions. The Xeta's engine, delivering 70 PS, is far more
powerful than the earlier version. Besides common black and silver, the car is available in
three flashy hues. The Xeta is touted be among the first few small cars to sport beige
interiors. Besides these compelling features, the pricing is also attractive, at Rs 2.94 lakh
16
for the AC model. The Xeta range is priced between Rs 2.69 to Rs 3.65 lakh exshowroom Delhi. Customers may avail themselves of loans of up to 90 per cent from
select financiers over a seven-year period with EMIs as low as Rs 4,471.
We can have some inside view of this wonderful car:
17
18
efficiency of around 14kpl. Customers really impressed by the optimism, but when the
car floored the accelerator
Ride and Handling
The Indica Xeta is a big car, as far as dimensions go, compared to the puny Alto and
bigger compared to the Santro and Wagon R when it comes to weight almost 200kgs. So,
the suspension does belong to big car category. The tread of the tire is wider by 10mm to
the Wagon R VXi and the Santro by 10mm, this helps the car grip a bit better, and
although we expected the slightly lower profile to play truant when in came to absorbing
bumps, the intrusive rear suspension really did work out. The handling though is a bit of
another story. The Indica being heavy does mean more cornering forces, and the extra
weight also means a wee bit of extra roll, but the wide stance of the Xeta is able to cope
with the cornering with aplomb. The steering though is just a bit heavy, which although is
very helpful at higher speeds can be a bit of a drawback around those city runs.
Verdict
The Xeta now competes with tried and tested Japanese cars like the Maruti's Wagon R,
Zen and Alto and the Korean Santro Xing. Compared to these cars, the XETA is able to
provide far more space; thanks to its handling, it is able to hold the road much better also
absorbing the undulations of road surface better the handling though seems a bit front
heavy; the car, overall looks even heavier. Tata build quality is yet to really make its
impact on Japanese car fans, but the fact that this 1400cc 70ps engine with oodles of
torque is able to churn out excellent fuel economy should.
Pros
Cons
19
Unit
Price (ExShowroom
Mumbai)
EMI*
Rs.
Rs.
Features
Air
Conditioner
Power
Steering
Cup
Holders
Folding Rear-Seat
Remote Fuel-Lid
Child Safety Locks
Dimensions and
Weights
Overall
Length
Overall
Width
mm
Overall
Height
mm
Wheel Base
mm
Ground
Clearance
mm
Front Track
mm
Rear Track
mm
Front
Headroom
mm
Front
Legroom
mm
Rear
Legroom
mm
Rear
Shoulder
mm
Boot Space
mm
Gross
Vehicle
Weight
litre
Kerb
kg
|
Tata Indica V2 Xeta GLS-BS
III
|
Maruti Alto LXi - BS III
3675
3495
1665
1485
1495
1460
2400
170
1400
2360
166
1290
1380
1290
955
1080
1190
820
1335
900
1220
217
1395
1165
20
Weight
Fuel
Economy
kg
Mileage (Highway)
Mileage
(City)
km/litre
Mileage
(Overall)
km/litre
Capacities
km/litre
Seating Capacity
Fuel Tank
Capacity
person
No of Doors
litre
Performanc
e
Maximum Speed
0-100kmph
kmph
1/4 Mile
seconds
100kmph-0
(Braking)
seconds
80kmph-0
(Braking)
meters
Engine
meters
Engine Type/Model
Displaceme
nt
Power
cc
PS@rp
m
Nm@rp
m
Torque
Valve
Mechanism
Bore
Stroke
mm
Compressio
n Ratio
mm
No of
Cylinders
Cylinder
Configurati
on
cylinder
Valves per Cylender
Ignition
Type
valve
Engine Block Material
Block Head Material
Fuel Type
995
Tata Indica V2 Xeta GLS-BS
III
15.3
18.3
11.1
11.9
Tata Indica V2 Xeta GLS-BS
III
13.6
14.5
Maruti Alto LXi - BS III
5
37
4
35
5
Tata Indica V2 Xeta GLS-BS
III
152
17.4
4
Maruti Alto LXi - BS III
137
21.5
20.7
21.7
60.1
34.8
Tata Indica V2 Xeta GLS-BS
III
475 SI Multi Point Fuel
injection System with 32-bit
microprocessor
1396
740
35.8
Maruti Alto LXi - BS III
FC engine
796
70@4800
47@6200
122@2600
62@3000
75
79.5
9
4
In-line
Iron
Iron
21
Fuel System
Transmissio
n
Transmission Type
Gears/Speed
s
Clutch Type
Gear
Final Reduction Gear
Ratio
Suspensions
Front Suspension
Rear Suspension
Steering
Steering
Type
Power
Assisted
Minimum Turning
Radius
Brakes
meter
Brake Type
Front
Brakes
Rear Brakes
Wheels and Tyres
Wheel Type
Wheel Size
Tyres
Petrol
Petrol
MPFI
Tata Indica V2 Xeta GLS-BS
III
MPFI
Maruti Alto LXi - BS III
Manual
5
Manual
5
3.76
Tata Indica V2 Xeta GLS-BS
III
Independent, Wish Bone type
with McPherson strut, Antiroll
Bar
Independent, Semi trailing arm
with coil spring mounted on
hydraulic shock absorbers
Tata Indica V2 Xeta GLS-BS
III
Standard
4.6
Maruti Alto LXi - BS III
Powerful 8-inch booster
assisted front disc brakes
halt instantly on braking
Disc brakes
Maruti Alto LXi - BS III
12"
145 / 80 R12
22
The industry structure spans all segments and is concentrated in regional clusters
The India automotive sector has a presence across all vehicle segments and key
components. In terms of volume, two wheelers dominate the sector, with nearly 80 per
cent share, followed by passenger vehicles with 13 per cent. The industry had few players
and was protected from global competition till the 1990s. After government lifted
licensing in 1993, 17 new ventures have come up. At present, there are 12 manufacturers
of passenger cars, 5 manufacturers of multi utility vehicles (MUVs), 9 manufacturers of
commercial vehicles, 12 of two wheelers and 4 of three wheelers, besides 5
manufacturers of engines. With the arrival of global players, the sector has become highly
competitive.
Concentrated in regional clusters
Automobile manufacturing units are located all over India. These are, however,
concentrated in some pockets such as Chennai and Bangalore in the south, Pune in the
west, the National Capital Region (NCR, which includes New Delhi and its suburban
23
districts) in the north, Jamshedpur and Kolkata in the east and Pithampur in the central
region. Following global trends, the Indian automotive sector also has most auto
suppliers located close to the manufacturing locations of OEMs, forming regional
automotive clusters. Broadly, the three main clusters are centered around Chennai, Pune
and the NCR.
Auto Components sector is highly fragmented
The Indian automotive component industry is highly fragmented. There-are nearly 6,400
players in the sector, of which only about 6 per cent are organized and the remaining 94
per cent are small-scale, unorganized players. In terms of value added, however, the
organized players account for nearly 77 per cent of the output in the sector. The sector
manufactures components across all key vehicle systems. The break-up of the output
from the organized sector, in value terms, across key vehicle systems, is shown in the
figure.
The automotive sector is growing strongly in both domestic and exports markets
Indian automobile industry has been performing well both in the domestic and the
international markets. Automobiles - Domestic Performance The production anddomestic
sales of the automobiles in India have been growing strongly. While production increased
24
from 4.8 million units in 2000-1 to 8.5 million units in 2004-05 (a CAGR of over 15 per
cent), domestic sales during the same period have gone up from 4.6 million to 7.9 million
units (CAGR 14.2 per cent).
A positive trend in the domestic market is that the growth has not been driven by one or
two segments, but is consistent across all key segments. Two wheelers, which constitute
the majority of the industry volume, have been growing at a rate of 14.3 per cent, three
wheelers at a rate of 14 per cent and passenger vehicles at a rate of 11.3 per cent.
Commercial vehicles have been growing at a higher rate of nearly23.5 per cent, although
from a lower base Since nearly all macro-economic indicators GDP, infrastructure,
population,demographics, interest rates, etc. are showing a favourable trend, the
domestic market for automobiles in India is expected to continue on its growth trajectory.
.
25
Commercial Vehicles
The commercial vehicle production in India increased from 156,706 in 2001 to 350,033
in 2005.
This segment can be divided into three categories heavy commercial vehicles(HCVs),
medium commercial vehicles (MDVs or MCVs) and light commercial vehicles (LCVs).
Medium and heavy commercial vehicles formed about 62 percent of the total domestic
sales of CVs in 2004. These segments have also been driving growth, having grown at a
CAGR of nearly 24.7 per cent over the past five years. The key trends facilitating growth
in this sector are the development of ports and highways, increase in construction
activities and agricultural output. With better roads and highway corridors linking major
cities, the demand for larger, multi-axle trucks is increasing in India.
26
Passenger Vehicles
Passenger vehicles consist of passenger cars and utility vehicles.This segment has been
growing at a CAGR of 11.3 per cent for the past four years.A key trend in this segment is
that with rising income levels and availability of better financing options, customers are
increasingly aspiring for higher-end models. There has been a gradual shift from entrylevel models to higher-end models in each segment. For example, in passenger cars, till
recently, the Maruti 800 used to define the entry level car, and had a predominant market
share. Over the last 3-4 years, higher-end models such as Hyundai Santro, Maruti Wagon
R, Alto and Tata Indica have overtaken the Maruti 800.Another development has been the
blurring of the dividing line between utility vehicles and passenger cars, with models like
Mahindra & Mahindras Scorpio attracting customers from both segments. Upper end
sports utility vehicles (SUVs) attract potential luxury car buyers by offering the same
level of comfort in the interiors, coupled with on-road performance capability.
27
Exports growth has been spearheaded by the passenger vehicle segment, which has
grown at a rate of 57.4 per cent.As a result, the share of passenger vehicles in overall
vehicle exports has increased from 18 per cent in 1998-99 to 26 per cent in 2004-05.
Europe is the biggest importer of cars from the country while predominantly African
nations import buses and trucks.The Association of South East Asian Nations (ASEAN)
region is the prime destination for Indian two wheelers.
Most of the key auto component manufacturers in India are very positive about the
outlook for exports, and expect about 15 per cent of their revenue to come from exports
over the next 3-5 years. It has been estimated that exports of auto components from India
could be around US$ 20-25 billion by 2015
28
29
Competitive Advantages
India has several competitive advantages in the automobile sector,which have been
analysed using the following framework.Availability of skilled manpower with
engineering and design capabilities India has a growing workforce that is Englishspeaking, highly skilled and trained in designing and machining skills required by
the automotive and engineering industries. In a combined assessment of manpower
availability and capabilities, India ranks much ahead of other competing economies (see
figure).
Many Indian and global players are leveraging this advantage by increasingly
outsourcing activities like design and R&D to their Indian arms. The Society of Indian
Automobile manufacturers(SIAM) estimates that automotive vehicle manufacturers are
expected to invest US$ 5.7 billion in the Indian market from 2005 to 2010. Of this, about
US$ 2.3 billion will be on research and development and the rest probably on capex.
30
The Indian automobile industry is highly competitive with a large number of players in
each industry segment. Most of the global majors are present in the passenger vehicle and
two wheeler segments. In the components industry too,global players such as Visteon,
Delphi and Bosch are well established,competing with domestic players.The presence of
global competition has led to an overall increase in capabilities of the Indian auto sector.
Increase in competition has led to a pressure on margins, and players have become
increasingly cost efficient.Quality levels have gone up, and there is an increasing focus
on compliance to TPM, TQM and Six Sigma processes. This has led to an increased
confidence among domestic players, who are now focusing on opportunities abroad. Key
players in the components sector like Bharat Forge and SundaramFasteners have become
key global suppliers in their categories.
31
32
While Domestic Sales have been growing strongly since 2000-01, Exports have nearly
tripled in the last 5 years
33
Commercial Vehicles
34
Growth in the economy and infrastructure development isdriving growth in this segment
Passenger Vehicles
35
Market shares
36
while that of light commercial vehicles (LCV) have stood at 9,757 units, a growth
of 63.8 per cent. The company's total exports have galloped by 71 per cent at 5,195
vehicles in June 2006 as compared to 3,037 vehicles in June 2005.
Hyundai Motors India has achieved a growth of 56.2 per cent in the passenger
cars and utility vehicles segment in the domestic market by selling 17,032 vehicles in
June 2006. Sale of passenger cars in the overseas market has stood at 10,219 units, a
growth of 18.6 per cent over June 2005. The companys total exports (PV) have increased
by 18.6 per cent to 10,219 units as against 8614 units in June 2005.
General Motor India has posted an increase of 53 per cent in domestic sales
(including PV, CV) at 3,346 units in June 2006 compared to 2,183 units the June 2005.
The company has sold 1,961 units of multi-utility vehicle Chevrolet Tavera, 379 units of
sedan Chevrolet Optra and 1,006 units of the mid-size Chevrolet Aveo during June 2006.
38
Four-Wheeler update
Segment
Models
A1
M800
Omni,Versa
A2
Alto,WagonR,Zen
A3
Total Passenger
Car
Baleno,Esteem
MUV
Total Domestic
sales
Gypsy,Vitara
Export Sales
Total Sales
AprilJune
June
2003
2004
13,126
10,761
4,557
yoy
(%)
Apr 03-Mar
04
yoy
(%)
2003
2004
-18
40,774
31,874
-22
167,561
4,888
13,879
14,755
59,526
10,337
18,768
82
32,885
59,201
80
176,132
1,074
1,252
17
3,132
4,075
30
14,173
29,094
35,669
23
90,670
109,905
21
417,392
272
746
174
851
1,479
74
3,555
29,366
36,415
24
91,521
111,384
22
420,947
6,672
3,159
-52
12,496
12,240
-2
51,175
36,038
39,574
10
104,017
123,624
19
472,122
The company expects to cross over 500,000 units this fiscal by increasing its share in the
A3 or C segment. It enjoys huge market share in the mini segment and the compact
segment but with the launch of new Esteem and the Baleno, it is looking to consolidate
its position in the C segment as well.The decline in the sales of the Maruti 800 is not a
concern as they are taken over by its Alto brand and to some extent by the other A2
models. Altos non-AC version starts at a price of Rs2.3lacs accounting for around onethird of overall Maruti sales.It is setting up a Rs3,500mn diesel engine plant at Gurgaon
with technology from Fiat GM Power Train, targeting the diesel segment
39
Volumes
4-Jun
3-Jun
yoy (%)
Domestic
28,522
21,133
35
Exports
1,661
1,511
9.9
Total
30,183
22,644
33.3
Cumulative sales for the first three months in FY05 stood at 84,918 units registering a
growth of 40.6%. Cumulative domestic sales for the fiscal at 80,658 units are growing by
42%.
Passenger Vehicles
Domestic sales of passenger vehicles for the month of June stood at 15,077 units,
registering a growth of 33.7% yoy. Cumulative sales for FY05 stood at 40,781 units, up
35.4% yoy.Indica registered sale of 9,426 units, its highest ever in a month at in June
2004 and cumulative sales stood at 25,136 units growing 37.6%. Indigo too, registered its
highest ever sale in a month at 3,224 units in June. Cumulative sales stood at 8,971 units,
40
growing 55.9% yoy..Sumo and Safari registered a combined sale of 2,427 units in June,
and a cumulative sale of 7,764 units.
Commercial Vehicles (CV)
Domestic Volumes
4-Jun
3-Jun
yoy (%)
M&HCV
9,355
6,465
44.7
LCV
4,090
3,393
20.5
Total
13,445
9,858
36.4
Cumulative sales for CVs for the first three months of FY05 stood at 39,887 units
increasing 49.7% from 26,641 units for the same period last year.The company is
planning to raise production capacity by 50% in FY05, from about 1.5lac units currently.
For this it plans to invest over Rs8,000mn in FY05 for this increase in capacity, product
development and marketing.With the launch of the Sumo Victa, it has targeted a 10-15%
expansion in sales of its MUV, Sumo, in FY05.
4-Jun
3-Jun
yoy (%)
Utility Vehicles
7,861
6,405
22.7
LCV's
915
744
23
Three-Wheelers
1,279
1,239
3.2
Total
10,055
8,388
19.9
Tractors
6,812
3,552
91.8
UV sales in June included 2,103 Scorpio, a growth of 11% from 1,897 for the same
period last year.Due to good monsoons last year, the farm equipment segment recovered
and M&M sold nearly 50,000 tractors in FY04. The June 2004 volumes, including
exports, have nearly doubled on a yoy basis.
41
It will spend around Rs3,500mn during FY05 on account of capital expenditure for
development of engines and transmissions, expansion of plant capacity and
modernization and R&D.
General Motors India Ltd
In June 2004, GM India sold 2,418 cars registering a growth of 123.5% from 1,082 cars
for the same period last year. It sold 804 units of the Chevrolet Optra, 800 units of the
Chevrolet Tavera (MUV) and 786 units of the Opel Corsa.
The growth in sales of GM in India is primarily due to its Chevrolet Optra and Opel
Corsa models.
Between March and June 2004, the company sold a total of 3,557 Chevrolet Optras.
Along with these, GM India also manufactures the Corsa Sail and Swing at its facility in
Halol, Gujarat, Chevrolet Forester and the imported Opel Vectra. The company sold
15,000 units in 2003.
Ashok Leyland Ltd
Volumes
4-Jun
3-Jun
yoy (%)
Apr04-Jun04
Apr03-Jun03
yoy (%)
Domestic
673
990
-32
1,837
2,115
-13.1
Exports
200
86
132.6
466
193
141.5
Domestic
2,491
2,532
-1.6
7,830
5,662
38.3
Exports
508
104
388.5
923
207
345.9
Domestic
25
33
-24.2
67
82
-18.3
Exports
30
-96.7
13
87
-85.1
Total
3,898
3,775
3.3
11,136
8,346
33.4
MDV Passenger
MDV Goods
LCV Goods
42
The domestic sales volumes declined 10.3% yoy in June 2004. Compared to this, exports
in the month of June nearly trebled at 709 units against 220 units in June 2003. Total
sales including exports went up 3.3% yoy in June 2004 and sales in the first three months
of FY05 increased 33.4% yoy.
Eicher Motors Ltd
Eicher Motors sold 1,506 commercial vehicles in June, registering a growth of 12% yoy
as compared to 1,344 units last year. Cumulative sales for the three months in FY05 stood
at 3,657 units growing 19.5% from 3,059 units in the same period last year.
Maruti Udyog sold 9,867 MPVs in April and May 2004 together whereas M&M sold 12
units for the same period - (Excluding UVs shown above).
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ANALYSIS
44
Annual Income
45
Vehicle Brand
Every company desires itself to be in the house of its target customers.The customers
whom I sampled where mostly owing one or two cars.In most of the middle class
segments there were about 20% Maruti cars,25% Hyundai cars , where as 45% was
constituted by Tata cars and Mahindra and other section cars had a share of 5% each . I
can here make a clear cut analysis that Tata-Xeta had the greates market share in the
middle class segment.In this project where we are comparising with Maruti- Alto , I can
make a judgment that Tata-Xeta is mostly owned by the customers rather than MarutiAlto.
46
Ours is a country where customers are highly influenced by the electronic media. Any
new product that is in the market has a unique advertisement for itself, in order to attract
its target customers in its unique way. This was also shown in my research as the
electronic media had a total percentage of 45% ,followed by Newspaper by 30%. People
are not eager to get to know about nay new brand by their friends and relatives which is
shown by a total of just 15% ,while the options others took away 10%.
47
People in India had always go for the famous brands and are really brand conscious. They
at least trust the famous Indian brands ,who are giving their services and products to their
high esteemed clients .When I studied this aspect I also got to know the same as the brand
being the reason of attraction of the customers up to a maximum of 37% followed by the
product quality by 27%. The product price is a aspect which attracts about just 23% of the
customers. Purchasing a product just merely seeing a advertisement is not an Indians
mind. Therefore it takes just about 12% of the total sample taken for study.
48
49
People of India are always attracted to the products which give them free gifts or
discounts on the purchase price. Companies generally give such offers in case of any
festivals or any marriage season locally known as lagan. People wait for this time to get
free gifts or coupons or being a part of any lucky draw scheme. In my research also I
came a total of about 73% of customers looking for such offers, but there where 27% of
the customers who does not gets really attracted by such offers and purchase car as whne
needed dont even desire to get such gifts.
50
Neighbourss envy and owners pride is a common rule followed by various Indians for
which they go for looks. The car should be having good outlook so that even though a
layman may also praise their choice .This aspect therefore was shown in my research also
which contributed to about 26%.Customers are generally price conscious and when we
are targeting the middle class customers who do not make a heavy investment, they go
for the products which are within their budget limits. They are always attracted to the
cars which are within their budget limits so that they can carry on with it in a well
manner. About 25%.The aspect brand took a total of 20% share followed by comforts
provided by the car which is about 14%. Speed, after sales service and spare parts
availability took about 8%, 5% and 2% respectively.
51
Tata-xeta being well equipped with all the features of a small car
52
Customers when they purchase a car generally do a lot of field study,through which they
can easily differentiate between various cars. When I consulted in terms of Tata- Xeta
and Maruti-Alto they were various options coming up.The difference in mileage was the
most premium factor to be considered the mileage of Tata-Xeta and that of Maruti-Alto
are 15.3km/lt and 18.3km/lt. It was pointed out by various customers there fore it
contributed about 36%, followed by 22% about the quality they feel that Tata-xeta is
having the more robust quality in comparison with Maruti-Alto.Speed was also a factor
take into consideration with a total of 16%, followed by looks by 12%.Price
differentiation took about 8% of the customers into consideration and comforts just took
6% of the total share.
53
Conclusion
This project research is the analysis of customer orientation towards the newly launched
car Xeta by the branded company Tata Motors. People belonging to the middle class
generally preferred the Tata-Xeta going on for its brand name as its history goes with
delivering the value. This was also shown in my research as the electronic media was the
most attractive method of advertising Tata-Xeta. The customers sampled thought the car
they had should have good exterior. .
The customers of Tata-Xeta just had one problem with their car was the mileage given
by their car in comparison with Maruti-Alto which is also a They said they are not
satisfies by the performance of the car in the sense of its mileage when compared to
Maruti-Alto in the same segment and the same price range. Thus , the view prevalent in
my mind after this research was conducted that if Tata-Xeta would work on its mileage
concept then would definitely it would emerge as a winner in small car segment and also
will prove better than Maruti Cars.
54
55
Recommendations
Tata Motors is a company which is maestro in its field, but there are some
recommendations which I will like to give to even perform it better.
This project was about to study the customer orientation toward Tata-Xeta, many
of the customers complained about the mileage given by Tata-Xeta is quite less
than that of Maruti Alto. The mileage given by that of Tata-Xeta is 15.3km/lt and
that of Mruti Alto is 18.3 km/lt. The customers who use this car for their
business purpose get effected by this shortcoming. So for this case they prefer
Maruti-Alto belonging to the same price range as the price of petrol is also
shooting up.
Many customers complained about the advertisement shown for Tata-Xeta, which
they called to be a confusing one. The advertisement didnt showed clearly all the
features of the car, rather it showed what fun a group of girls can make with the
car. It should rather be changed.
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Bibliography
http://carsinindia.com/indicaxeta1.asp
http://ir.tatamotors.com/PushFile.php?
filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdf
http://www.maxabout.com/automotive/auto_cars/companies/Tata.aspx
http://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html
http://www.carwale.com/Research/chooseCarsForComparison.aspx
57
Annexure
58
59