Analysis of Consumer Preferences and Promotion Strategies for Tata Indica Product Under Analysis : Tata Indica

TABLE OF CONTENTS: EXECUTIVE SUMMARY ORISSA AND PEOPLE. ENVIRONMENT ECONOMIC OUTLOOK.. POLITICAL OUTLOOK.. INDUSTRY OUTLOOK 4 5 6 6 6 7 9 11 12 13 23 27 32 43 48 50 54

CHANGING CONSUMER BEHAVIOUR. ORISSA MARKETING SCENARIO.. DECISION PROBLEMS TATA MOTORS .. TATA MOTORS AND COMPETITORS PROMOTION STRATEGY USED BY MANUFACTURER.. FINANCIAL STATEMENT ANALYSIS .. ANNEXURE -1 ANNEXURE -2 .. ANNEXURE -3 .. ANNEXURE -4 .. REFERENCES

Executive Summary Decisions:

We recommend the case for introducing a new model in the small car segment which is positioned between Maruti 800 and Hyundai Santro. The car should be a petrol model which is the favored version for the Indian passenger car market. The car should be targeted against the Maruti Alto which is currently the largest selling car in India.

Alternatives:
The following alternatives present themselves as possible courses of action for the company to follow: 1) Continue with the current strategy and bank on the commercial-vehicle based success to compete and consolidate in the market in the commercial segment ; 2)Launch a variant of the Indica model with a different positioning strategy; 3)Launch a completely new model with a strong emphasis on being a familyfriendly car combined with the current USPs of comfort and utility; 4)Re-position the existing Indica model with an emphasis on targeting the youth segment and attract more market-share in that particular demographic.

Evidence:
We suggest the above proposal as the Indica has a strong market presence and it is embedded in the consumers mind as a car used for commercial purpose despite it being promoted as a family car. The Indian consumer prefers his car to have a petrol engine which the Indica doesnt have. However, if we try to reposition the Indica with a petrol engine, it may lead to brand dilution and hurt its primary market , which is the commercial segment. The rest of the proposal will be dedicated to analyzing the problem from all perspectives from the point of view of the company, its competitors and the consumers when they make their purchasing decisions. For this purpose, we have analyzed the issue on the following basis points: ? The Product itself, i.e. the specifications of the Indica and each of the other competing vehicles in the small car segment; ? The Pricing Strategies followed by Tata Motors and each of its competitors in this segment; ? The Promotion Strategies used by the major players in the market; ? And finally, the positioning and placing strategies of these major players. In short, the problem is first analyzed on the basis of the four fundamental Ps of marketing. This is then supplemented by a customer survey which quizzes prospective customers on their vehicle-buying habits and preferences. An insight into customer thinking can be gleaned from the outputs obtained from this survey; this information, combined with the analysis on the basis of the four Ps done previously, is then used to derive recommendations for the company to improve and consolidate its current market performance.

Orissa and Its People

Among the states of India, Orissa is ranked tenth in area and eleventh in population. Situated on the coast along the Bay of Bengal, Orissa stands for its ancient glory and modern endeavor. Endowed with nature's bounty, a 482 km stretch of coastline with beaches, serpentine rivers, mighty waterfalls, forest-clad blue hills of Eastern Ghats with rich wild life, Orissa is dotted with exquisite temples, historic monuments as well as pieces of modern engineering feat. State Overview : Population of the state is 3 crore of which 22 percent are tribal. Literacy percentage is 49 percent .(Male : Female 62.4 : 34.4) 87 percent of the population lives in villages Economy is primarily agricultural Major Cities : Bhubaneswar, Rourkela, Cuttack Per capita incomes, is approximately US$250. Major sectors which are poised for substantial growth cover industries, tourism, fisheries, handlooms and handicrafts, IT, transport and horticulture.

Project Overview : The project involved analyzing Tata Indica , Maruti Alto , Hyundai Santro and Fiat Palio models of Cars and comparing the pricing and marketing strategies followed by their respective manufacturers in Orissa . It also involved gathering data from the consumers about their preferences for the different models / cars . The results from the data gathered was used to interpret the nature of consumer behaviour with regard to the small car segment . Finally certain strategies were suggested for TATA INDICA which would help it improve its market share in the Orissa market . The major players in the SMALL CAR segment Maruti Udyog Limited (MUL) Alto , Maruti 800 Tata Motors Indica Hyundai Motors India Limited Santro , Getz Fiat India Palio

Our focus is on the model Tata Indica , with an analysis of the marketing strategy of three of its competitors Maruti Alto , Hyundai Santro , Fiat Palio . We have classified all the above mentioned models in the same segment considering their price and other features such as mileage etc .The data regarding the four different models of the cars was collected from different dealers present in the city . The important information collected from the dealers was The The The The The dealer network vehicle procuring system financing options marketing strategies adopted by them customer profile and preferences

Dealers in Bhubaneswar S.no 1 2 3 4 5 Dealer Name Shree Bharat Motors Ltd Utkal Hyndai Sapna Motors Narayani Motors Pvt Ltd Jyoti Motors Pvt Ltd Company Tata Indica Hyndai Fiat Maruti Maruti

Environment :
The Economic Outlook : Socially and economically, India is developing at a galloping rate when compared to the rest of the world. With estimated compounded economic growth rates of over eight percent per annum, Chinese and Indian consumers have greater spending power today than they have had at any time in recent history, said Sarang Panchal, Executive Director, Customized Research Services, ACNielsen South Asia. In India, the assessment of economic performance over the last 6 months has moved up smartly when compared to the previous six months. 79% of Indians felt that the economy had improved. The follow-through of this positive evaluation has obviously carried forward aggressively. The Data below shows the increasing consumption pattern of the people through the years . 1998a Nominal GDP (US$ bn) Population (m) GDP per head (US$ at PPP) 414.3 986.8 2,086b 1999a 444.3 1,002.7 2,246b 291 2000a 450.7 1,018.5 2,352b 292 2001a 478.5 1,034.2 2,494b 303 2002b 510.2a 1,049.7 2,612 313 2003b 585.2 1,065.1 2,845 364

Private consumption per head (US$) 275 No. of households ('000)

a

180,148 184,329 188,332 191,964 195,687 199,404

Actual.

Economist Intelligence Unit estimates.

Source: Economist Intelligence Unit. The Political Outlook The Economist Intelligence Unit expects the United Progressive Alliance (UPA) coalition, led by the Indian National Congress, to remain in office throughout the forecast period. However, the minority government will continue to need the support of unreliable regional and caste-based parties, as well as the mainly communist Left Front parties, and this cannot be taken for granted. The pressures of coalition politics are likely to ensure that progress on economic reform will remain slow. We expect GDP growth to rise slightly to 7.1% in fiscal year 2005/06 (April-March), before moderating to 6.8% in 2006/07. High international oil prices will lead to a significant widening of the merchandise trade deficit over the forecast period, but the surpluses on the services and transfers accounts will limit the size of the current-account deficit. The rupee will appreciate slowly against the US dollar during the forecast period. The outlook for inflation is benign

Policy trends One year into the UPA governments term, the indications are that reformist tendencies are being diluted by the constraints of coalition government, discontent among the UPAs left-wing allies and the power of vested interests. Privatisation, liberalisation of the foreign direct investment regime and reform of Indias rigid labour laws seem unlikely to be carried out over the forecast period, owing to the fact that the Left Front, on which the minority government relies for support to push through legislation, opposes such measures. Fiscal consolidation has been put on hold until at least 2006/07 . The Industry Outlook According to ACNielsen Sales have grown strongly in the last 3-4 years in India. But, road infrastructure development will decide whether or not pent-up demand will emerge strongly Study shows that half of the new buyers will be first time ever buyers a clear indicator that the evolution of the Indian automobile consumer is happening rapidly. Yet, the proportion of those buying an additional car is also significant. In a market where price is an important factor, this is a signal that affluence is growing parallel to aspiration and therefore bodes well. Nearly onefifth or 21% of intending buyers claim to be buying an additional car for themselves. The study also indicates substantial consumer interest in engine size larger than 1.4 liter (80%). It is clear that most Indians aspire to a roomy, family car going forward. Indians can aspire to buy mid-size models as family incomes across urban India continue to grow and household composition increasingly moves towards double-income, nuclear families. With three of the worlds four most populous countries leading ACNielsens Aspirations Index, it is clear that consumer demand for their own set of four wheels augurs well for the automotive industry across the globe. Price driving purchase choice Globally, price was the most frequently cited driver of choice, and therefore was a universal consideration for new car purchases. Other considerations like fuel consumption, performance and safety were a distant second and third. Malaysians (88%), Indonesians (82%) and Thais (81%) were the most price-conscious. Indians and Chinese seemed equally conscious of price (75%, 65%) as well as performance (65%, 67%). On fuel consumption, Indians were the most conscious (54%) across the Asian region. In the rest of Asia Pacific, Chinese (37%) were relatively less concerned while Koreans and Singaporeans were relatively more concerned. Brand image/ prestige were an important dimension for only 23% of Indians. The response was similar to most other Asians. This is an important indicator of the market maturity and could be related to greater customer emphasis on price, expense and value dimensions. Among dozens of car brands, Toyota was the most popular the world over, in terms of consideration for future purchase (16 %). Ford trailed closely at eight percent and Volkswagen was third at six percent in terms of current ownership while Honda (8%) and Hyundai (6%) took over the second and third positions when it came to future purchases among the worlds consumers. In India, Hyundai appears to have attracted more Internet-savvy Indians than any of the other brands with 24% of them indicating that their future purchase is most likely to be from the companys portfolio.

Changing consumer behavior

The article reflects in general the rise in demand of the four wheeler especially by the Double Income nuclear families . As there is increasing spending power in the 22-35 category of Indians the four wheeler industry can look forward to strong growth in the years ahead provided that the concerns regarding the infrastructure are addressed .Data from the consumer data survey also indicates that The spending tendency of the people has increased . Consumers with incomes of 15-25k have also actively considered / purchased cars when the earlier tendency was to save the money so that it could be used later for some other purposes . Cars are now viewed as a necessity / means of comfort rather a luxury item earlier . India's automobile sales expanded by 15.9% in the year ended March 31, 2005 to 7,896,475 vehicles as against 6,810,537 vehicles sold in the fiscal year 2003-04.This includes sales of passenger cars, two-wheelers and commercial vehicles. Sales of passenger cars grew by 17.7% in the year ended March 31, 2005, data released by the Society of Indian Automobile Manufacturers (SIAM) showed. India was the fastest-growing large market for passenger cars in the world in 2004. Automotive demand was especially robust as the beneficial effects of a strong agricultural crop in the preceding year filtered through into rising incomes. With bank credit still cheap, the middle class expanding in size and a steady stream of new models entering the market, demand was buoyant, with sales of passenger vehicles rising by an estimated 24% in calendar year 2004. Sales of commercial vehicles, which are being driven by rising investment, government infrastructure spending and strong industrial production, will grow by around 22% in 2004/05 after expanding by close to 30% in 2003/04. Although the outlook for the automotive sector is buoyant, growth is occurring from a low base: India remains poor and largely undeveloped, with only a small proportion of the population able to aspire to car ownership. Yet, a low average income obscures wide urbanrural disparities and the influence of a growing middle class that is increasingly able to afford personal transport. Growth in car sales in India has moved roughly in line with trends in disposable personal income. With gains in disposable income during the forecast period, in the range of around 10-15% a year. More importantly, the percentage of the population that can afford a car is also rising. According to Indias National Council of Applied Economic Research, in 2002 only 6.1m households out of a total of 176m were classified as affluent or very rich, and therefore able to afford a personal car. However, another 56.8m households were considered to be well offable to afford motorcycles and scooters, but not cars. Some of those aspiring consumer households will have already moved into the affluent group during the current economic boom. If only 10% of these well-off households can move to the next level in the next five years, the number of car-owning households could rise by nearly 6m, nearly doubling current levels. Although this structural shift seems eminently achievable, economic shockssuch as a drought or a fiscal crisis that leads to much higher interest ratescould stem demand for a period of time. The table below shows the past record and the future estimates for the registrations of Automobiles The growth of the passenger car segment in absolute terms is the maximum . 2004 1,117 6.7 327 122 204 2005 1,343 7.5 382 144 238 2006 1,479 8.4 413 153 259 2007 1,624 9.4 449 173 276 2008 1,747 10.3 483 191 291 2009 1,911 11.4 520 210 310

New passenger car registrations ('000) Stock of passenger cars (per 1,000 population) New commercial vehicle registrations (000) Light commercial vehicle registrations (000) Heavy & medium truck registrations (000) Source: Economist Intelligence Unit.

A broad commitment to low interest rates, plus easier financing arrangements for car buyers, should also stimulate greater demand for cars. A car loan that once took two weeks to

approve can now be cleared in two or three days. In 2003 more than 85% of car sales were financed with loans, compared with 65% in 1998. Interest rates on car loans have fallen from around 19% five years ago to about 10% today. As in much of Asia, India is also seeing the birth of a youth-driven credit culture that places greater stock on consumption than in savings.

These factors, combined with the gradual deregulation of the car market and the entry of foreign investors, have improved price competition in a highly pricesensitive market, and have expanded the range of models on offer. Around 25 new car models will be introduced in India in 2005, most in the medium and luxury. Car producers are already opening more dealerships in semi-urban and rural regions to tap rising incomes and demand, and these areas now account for a growing share of overall sales.Several factors will restrain growth. Scooters and motorcycles are the dominant
form of personal transport in India, and will remain so until incomes rise enough to allow average consumers to afford cars. Sales of motorcycles and scooters exceeded car sales by a factor of nearly sixroughly 6m units to 1m. Car sales will also be held back by the poor condition of roads. In 2007, however, a major roadbuilding project, the Golden Quadrilateral, is due to be completed. This will link the countrys four major cities through a massive new road network, and should make car travel easier and more appealing.

Companies and competitors in the passenger car segment

The Breakup of the Market share of the car manufacturers for the period Apr-Dec 04 Major passenger-car manufacturers, Apr-Dec 2004a Market share ( %) Maruti Udyog 51.0 Tata Motors 17.3 Hyundai Motor India 17.0 a As a percentage of total sales. Sources: Centre for Monitoring Indian Economy; Society of Indian Automobile Manufacturers. The Recent Industry Trends In May 2005, total passenger car sales (including export sales) showed a growth rate of 10 % to 81976 units. Out of 11 players 4 players saw a dip in sales during the month. Maruti Udyog, Tata Motors and Hyundai Motor are the major players in the passenger car segment. Of these players, Hyundai motor showed a spectacular increase of 82% at 23080 units while Tata motors showed a marginal increase 6% in sales at 12698 units. Maruti Udyog registered a negative growth rate of 5% at 36579 units as compared to the corresponding period of previous year. During the month of May 2005 Passenger car segment showed a 4% decline in exports at 13460 units while domestic sales grew by 13% as compared to corresponding period of previous quarter. The rise in domestic sales export was mainly contributed by Hyundai motors, which contributed a 85% increase at 9205 units. The players, which led to a fall in the exports, were Maruti Udyog which posted a 64% fall in sales at 2197 units. For the two months i.e. April 2005 May 2005 passenger cars have registered a growth of 12% to 156410 units. Market leader Maruti Udyog recorded a fall in sales by 5% to 69267 units, while Hyundai Motor registered a rise of 97% to 42774 units. Tata Motor also posted an increase of 10% in sales to 24375 units during the period. Among other players Skoda Auto

India posted a highest growth rate of 23% at 1102 units. This was due to lower base in the corresponding period of previous year. While Fiat India recorded highest fall of 72% to 334 units. Due to arrival of newer, more aggressive models and segment fragmentation, market shares of major players' have remained static or changed marginally despite growth in sales. Among the passenger car manufacturers, share of market leader Maruti Udyog dropped to 44% (against 52% earlier), while that of Hyundai Motor increased to 27% (against 15%). Market share of Tata Motors remained static at 16%. Apart from above the other players like Ford Indias market share decreased form 6% to 4% at 5743 units. Toyota Kirloskar Motor Pvt. Ltd., did not have a change in the market share of 1% at 1681 units. Tractor and utility vehicle major, Mahindra & Mahindra (M&M) planning to launch Renault's popular mid sized and low-cost sedan car Logan in India by 2007. For this M&M has joined hands with French carmaker Renault SA to form an Rs 700 crore joint venture. The Swift, Marutis latest model, was launched on May 25, 2005, at an attractive introductory price. The response has been overwhelming; over 18,000 customers from across the country have already placed orders for the Swift. Under pressure after the instant success of Marutis Swift, Hyundai Motors launched an offensive by reducing prices of its Santro Xing by over Rs 19,000. A virtual price war has broken out in the domestic car market. To beat Hyundais price cuts on its Santro Xing models, Maruti is resorting to discounts and freebies such as free stereos and insurance. The Maruti 800 (Std) is now being offered at Rs 2.31 lakh a cut in the price of around Rs 19000. Focus is now shifting towards B segment, since it is the biggest segment in terms of volume as A segment is losing its ground. The sudden popularity of Marutis Swift has left carmakers wondering if they will all have to cut prices to stay in the race. More cars are slated to be launched this fiscal. General Motors plans to re-launch Daewoos Matiz in a re-tooled avatar as the small-car Spark.The launch is likely to challenge conventional pricing of entry-level cars like the Alto and Zen in a big way and could force a fresh bout of price wars in the auto market. Maruti could cut prices of the Alto and Zen by this month-end or in July as its position under threat from GM's plans. Moreover, Hyundais aggressive pricing strategies, which saw the Korean car-maker launch a non-AC Santro variant at Rs 2.79 lakh, are a challenge too. Ford wants to introduce a family coupe being developed in Australia which could be priced to beat competitors like the Honda City and the Chevrolet Optra. Base model could be priced in a way that makes it more attractive than its competitors by offering more value for money. Launches usher in fresh waves of competition and this will bring down prices, even though vehicle makers here have been affected by the rising cost of raw materials such as steel, plastics, aluminum and rubber. Fords moves could see Honda and Chevrolet reacting in a manner similar to the HyundaiMaruti price jousting. Volkswagen also plans to bring in a small car based on the Volkswagen Fox within the next year. This too will impact the price of entry level cars. Hindustan Motors is planning to roll out a car in the luxury 'D' segment from the Mitsubishi stable in 2005. This model is likely to compete with Honda Accord, Toyota Camry, Skoda Octavia and Opel Vectra. It is also planning to introduce new models in Pajero a premium segment car. The company has decided to emphasize on the premium 'D' segment of the car market.

Hyundai Motor India, the wholly-owned subsidiary of Hyundai Motor Company is gearing up to launch redesigned versions of the Sonata, Accent in mid-2006 and a hatchback in 2007. Czech car maker Skoda Auto will nearly double capacity in India and begin exporting to Bangladesh this year as part of its plan to use India as a regional hub. Skoda Auto, which is fully owned by Germany's Volkswagen AG, will also step up investment in India. The company has already invested Euro 100 million ($132.7 million) in its Aurangabad plant in Maharashtra, its only manufacturing facility outside Europe.

The Orissa Marketing Scenario

There is a burgeoning demand for four wheelers in the state . the demand is mainly for the the economy segment passenger cars . The major players being Maruti Udyog Ltd Hyundai Motors India Limited Tata Motors Fiat Palio Maruti has the most extensive network of seven dealers in the state spread over six cities . Fiat has one dealer in the state. Hyundai motors has four dealers in the state. Tata Motors has two dealers. Today the small car segment plays a very important role for the conveyance of the people. In the course of our project we limited ourselves to interacting with dealers in the capital city of Bhubaneswar. The details of the dealers are given below a) Hyundai: The numbers of dealers of Hyundai in Orissa are Four out of which one is in Bhubaneswar. The dealer in Bhubaneswar is Utkal Automobiles The main vehicles that are sold of Hyundai in the city of Bhubaneswar are Santro, Getz, Elantra, Sonata, Terracan. The cars reach the dealer direct from the manufacturing plant. The total sale per month is 60 in Bhubaneswar out of which Santro has a sale of 40 cars, Accent sale is 7-9 cars, Getz sale is 3-5, Elantra sale is 1-3 cars, 6 is of Terracan. The dealer has a tie up with ICICI, and HDFC for the car finance, loans.The main customer in Bhubaneswar has been Infosys employees which have in total 300 cars out of which 210 are Hyundai cars. The follow up is done every 3 days after the visit of the coustmer. Sales Promotion: The main strategy is to create awareness about its existence. For that various road shows, service camps and schemes are provided to the costumer like free washing machines, Television and cash discounts.

b) Fiat: The number of dealers in India is 65. The dealer in Bhubaneswar is Sapna Motors. The Fiat products are available in both the petrol as well as the diesel and the cars include basically Palio and Petra. The cars are mostly used for personal purpose (95%). The sale is about 12-15 cars per month in both the diesel as well as petrol for Palio and Petra. Finance is provided by the ICICI bank, HDFC bank and all nationalized banks. The decision on an average takes place in about 1 month. Sales promotion: The main sources of advertisement are newspaper both the local like Samaj and Sambad and the English newspaper like Indian Express. The road shows are also conducted at regular intervals. The sales could be increased by rethinking on the pricing strategy and introduction of new models along with an increase of the advertisements. Fiat is perceived as having unreliable After sales service by the consumers

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c) Maruti: There are two dealers in Bhubaneswar Jyoti Motors and Narayan Motors. All the range of Maruti products are available like Maruti 800, Zen, Esteem, Baleno, Wagon R, Alto, Versa, Omni, Swift, Grand Vitara. The cars come from the factory in Gurgoan. The highest selling car is Alto as it has no competition. The gypsy is used for government and military purpose. The average car sales per month is about 120 which consists of Alto 60 cars, Maruti 800 30 cars, Wagon R and Zen together 20 cars, 5 Omni, 5 Baleno. The finance is provided by HDFC, ICICI, SBI and recently Citibank for 70% of the value. The conversion rate is about 30 %. The maximum sale takes place before Dushera festival. Sales promotion: Newspapers are used extensively specially the vernacular papers like Samaj, and English newspaper like Indian Express. Advertisement is also very important along with the road shows. The concession rate of finance from SBI is also boosting the sales. There is a need for reduction of price for cash purchase, and discount for corporate purchase. There is dealer competition which results in unstructured and divided marketing effort. d) Tata Indica : The company at present has only one dealer Shree Bharat Motors in Bhubaneswar . In the near future another dealership will come up in Sambalpur .The company sources its cars from the Pune factory as required .The total number of cars sold by the dealer in Bhubaneswar is 100-110 units . The breakup is 60 Indica (45 diesel and 15 petrol ), 8-10 Indigo , 2-3 Marina ,15-20 Sumo and 15-20 Spacio and 12 safari in a month .The dealership arranges finance through the company to the extent of 95% in association with ICICI, HDFC , Tata Finance, Oriental Insurance etc. ? Sales promotion : Dealers do thorough follow ups on customers visiting the showroom. For promoting sales the dealer gives discounts, accessories and promotional offers such as lottery schemes. The advertising channels used by the dealer are newspapers, road shows, leaflets, and local TV channels. Out of these, road shows are most effective in attracting the customers to the showroom . Decision Problems: The Tata Indica is primarily viewed as a car to be used for commercial purposes. Its perception as a car for personal use is limited. The competitors score over Tata Indica in this context. The cars that are purchased are used extensively for the purpose of rentals, especially the diesel version. This is where Tata Indica has picked up a tremendous market share, due to its low maintenance cost, greater mileage and easy availability. One more problem that the Tata Indica dealer faces in general is how to reach out to the customer instead of waiting for the customer to come to the dealers showroom .

Tata Motors and Competitors :

Company History

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Tata Engineering and Locomotive Motor Co. (TELCO) was established in 1945 to establish locomotives and miscellaneous engineering products. Its first product was the steam roadroller which was introduced in collaboration with Marshall Sons in 1948. The company subsequently entered into collaboration with Daimler Benz AG for the manufacture of medium commercial vehicles; this collaboration lasted until 1969. 1959 saw the establishment of a Research and Development centre at Jamshedpur (to be later supplemented by an Engineering Research Centre at Pune in 1966.) The company then entered the commercial vehicle segment; its first commercial vehicle was manufactured in Pune in 1977. The next logical step forward was to branch into the Heavy Commercial Vehicle (HCV) segment, which was accomplished with the production of HCVs commencing in 1983. In the meantime, apart from automotives, the company also involved itself in the production of industrial machinery, such as hydraulic excavators; this last example was produced in collaboration with Hitachi Inc. This decade also saw the release of Tata Motors first LCV, the Tata 407 (to be soon followed by the 608 and 207 models.) The last decade of the century saw several milestones reached by the company; the Tata Estate, Tata Sierra and Tata Sumo were all released within three years of each other, in 1991-93. 1991 also witnessed the landmark one millionth vehicle rolled out by the company. In addition, the Indian market also saw the entry of the Mercedes Benz E220 luxury vehicle enter, through Tata Motors. The company briefly then focused its efforts on developing enhanced versions of its utility vehicles, specifically the Sierra and the Sumo. 1998 proved to be a watershed year for the company in two ways; one, it rolled out its two millionth vehicle; and two, the first Indian SUV (Sports Utility Vehicle), the Tata Indica, was released. The Indica would soon become the companys most successful product and subsequently undergo generational changes, such as Euro II compliance, development of diesel and multi-point fuel injection models, and the V2 version.The company in the last year has unveiled several new products, such as the Tata Indigo, the Tata Ace (Indias first mini-truck), and several passenger transport models. It has also entered into an investment agreement with Daewoo Corp. Growth of Company The companys revenues (net of excise) at the end of the first half of the year 2004-05 improved by 36 per cent to Rs 7721.13 crore (previous year Rs 5680.17 crore). The profit before tax for the first half of the year was Rs 730.30 crore as compared to Rs 492.19 crore in the same period last year, an increase of 48 per cent. The profit after tax for the first half of the year was Rs 532.57 crore, compared to Rs 306.99 crore in the same period last year, an increase of 73 per cent. The company recorded significant increases in sales volumes across all product groups and gained market share. The commercial vehicle sales in the domestic market in the first half were 83,953, an increase of 31 per cent (64131 nos. last year). The company improved its market share in commercial vehicles from 58.6 per cent (1H FY04) to 59.7 per cent in 1H FY05 in the domestic market. The passenger vehicle sales in the domestic market in 1H FY05 were 85,948 nos., recording an increase of 28 per cent over the corresponding period of the previous year (66973 nos.). The companys market share in passenger vehicles increased to 17.3 per cent from 16.2 per cent in the first half of previous year. Indica sales at 52,456 nos. grew by 31.5 per cent in 1H FY05. The Indigo range (including the recently launched Indigo Marina), with a sale of 19166 nos. in the first half of the year grew by 45 per cent.

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Indigo continued to maintain its leadership in entry level C segment of cars with a market share of 30.9 per cent and crossed the 50,000 mark in the shortest span of time in the Indian sedan market. Indigo Marina was launched in September 04 and has been well received in the market. With the launch of the Sumo Victa in July 04 , Sumo sales volumes grew by 39 per cent in 2Q FY05. Tata Motors continues to be the second largest player in the passenger vehicle segment. Exports: The cumulative export sales for the period April- September 04 were 10,593 nos. as against 7,417 nos. sold in the same period last year, representing an increase of 43 per cent. The company has commenced marketing initiatives for introducing TATA NOVUS heavy vehicles (manufactured in South Korea by Tata Daewoo Commercial Vehicle Company) in the international markets. THE BOARD OF DIRECTORS Mr. Ratan N Tata (Chairman) Mr. N A Soonawala Dr. J J Irani Mr. J K Setna Mr. V R Mehta (Institutional Representative) Mr. R Gopalakrishnan Mr. Nusli N Wadia Mr. Helmut Petri Mr. S A Naik Mr. Ravi Kant Dr. V Sumantran Mr. P P Kadle Mr. P K M Fietzek

Operational Units A) Manufacturing Units 1) Jamshedpur Plant: 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. 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 has its own Kunkel Wagner high pressure moulding line. This unit is ISO 9002 certified and is also equipped with its own forging line for manufacture of critical forgings like crankshafts; it also comprises several mechanical presses. 2) Pune Plant: 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. It houses a Vehicle manufacturing complex and 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. Four assembly lines have been established, one each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars (Indica and Indigo). The Electronics Division is engaged in the production of a wide variety of Machine Tool Controllers, PLCs, Test rig instrumentation, Servomotors and Proximity Switches. In addition, it has developed a number of components such as flashers, horns and timers that are used in Tata Motors' vehicles. 3.) Lucknow Plant: Established in 1991 and covering an area of 600 acres, the Lucknow Plant was established to assemble Medium Commercial Vehicles (MCVs) to

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meet the demand in the Northern Indian market. The unit is also equipped with facilities to manufacture spare parts

B.)Research and Development Units Engineering Research Centre (ERC): The Research Centre at Jamshedpur regularly upgrades components and aggregates. A well-equipped torture track enables rigorous and exhaustive testing of modifications before they are used as regular fitments. Tata Motors : Product range Passenger cars and utility vehicles

Tata Indica - The Tata Indica is a small hatchback automobile. The model is also

exported to Britain and Europe, and is also being retailed in South Africa from late 2004. In the UK it is imported by MG Rover and is called the CityRover. Tata Indigo Tata Indigo is available in 5 variants in both petrol and diesel versions. It has 1405 CC engine for both the diesel and petrol version costing between Rs 457486-Rs Rs. 5,50,721 Tata Marina (hatchback version of Indigo) Tata Safari (sport utility vehicle) Tata Safari Dicor (sport utility vehicle) This is a 7 seater SUV from the tata stable . It has an engine capacity of 2956CC 115 HP common rail direct engine. . It is available in three varaints It is priced at Tata Sumo (multi utility vehicle)

Commercial vehicles

Tata Tata Tata Tata Tata Tata Tata Tata Tata Tata Tata Tata

207 DI 407 709 E 1109 (Intermediate truck) 1510/1512 (Medium bus) 1610/1616 (Heavy bus) 1613/1615 (Medium truck) 2515/2516 (Medium truck) 3015 (Heavy truck) 3516 (Heavy truck) Starbus range globus range

Military vehicles

Tata Tata Tata Tata Tata Tata Tata

407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions LPTA 713 TC (4x4) LPT 709 E SD 1015 TC (4x4) LPTA 1615 TC (4x4) LPTA 1621 TC (6x6) LPTA 1615 TC (4x2)

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TATA INDICA: PRODUCT OVERVIEW

Tata Indica Brand History In September 1995, Ratan Tata, Chairman of Tata Motors had a dream. A dream he believed he shared with every Indian. "We'll have a car with the Zen's size, the Ambassador's internal dimensions, the price of a Maruti 800 and with the running cost of diesel." It took an Indian to understand that the average (and not large) Indian family consisted of five members, that a rupee saved was a rupee earned, and that Indian highways called for a really sturdy car body. In December 1998, the dream came true. And it was only fitting that a car built by Indians for Indians was called Indica. It was the first car that seriously took all Indian sensibilities into consideration. A fact that was reflected in its sales (in 2001, the Indica became the fastestselling automobile in Indian history when it chalked sales of 100,000 in less than 18 months.) February 2001 saw the next stage in the evolution of the diesel Indica - the Indica V2. A car that embodied everything the Indica had with several added features like a SuperDrive Engine, BlockShock Absorbers, a SmoothRide Suspension, EasyShift Gears and WideTread Tyres. It married the power and comfort of a large car with the easy maneuverability of a small one.Within just a few months of its launch, the Indica V2 was the best-selling car in its class. Not surprising when you looked at all it offered. A 1400 cc engine that is, even today, unmatched in its class. The economy of diesel combined with the highest fuel efficiency in its class. Enough interior space to comfortably seat a family of five. And a reinforced, 980 kg rigid steel body for that same family's absolute safety. Taking off on the success of the Indica V2 diesel, the Indica V2 Petrol was launched in September 2001. It combined state-of-the-art technology with features like BlockShock Absorbers, EasyShift Gears, a SmoothRide Suspension, a SuperDrive Engine and WideTread Tyres with the smoothness of petrol.

HYUNDAI MOTORS INDIA LIMITED Introduction Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India . HMIL presently markets over 25 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata in the E segment and the Terracan in the SUV segment. The company recorded combined sales of 215,630 during calendar year 2004 with a growth of 43% over year 2003. HMIL is India 's fastest growing car company having rolled-out over 700,000 cars in just over 70 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,700 crores . HMIL has recorded a staggering growth of 149% in exports over the year 2003. HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 150,000 units per annum, raising HMILs total production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL is investing to expand capacity in line with its positioning as HMCs

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global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the companys greater focus on the quality of its after-sales service, HMILs service network will be expanded to over 1,000 in 2005. HMIL has many awards in its bouquet. It was declared The Star Company amongst unlisted companies by Business Standard this year. Getz got the coveted Car of the Year 2005 award twice over. It was declared a winner by both Business Standard Motoring and CNBC-TV18 Autocar Auto awards. Hyundai Elantra won the CNBC-TV18 Autocar Best Value for Money Car Award. HMIL was also the Manufacturer of the Year two years in a row in 2002 and 2003. ICICI Overdrive Awards declared Hyundai as the Car Maker of the Year in 2003. Hyundai products with state of the art technology have also been winning many accolades over the years. Santro bagged top honours in JD Power Asia Pacific for three years. Accent was ranked No. 1 in J D Power Asia Pacific APEAL for two years and also got Business Standard Motoring Jury award for its CRDi model. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. Growth of Company Hyundai Motor India (HMI) recorded its highest ever cumulative sales of 23,669 units in the month of March, this year, a growth of 23.2% over March 04. In the domestic market too, HMI achieved record-breaking sales of 16,315 units, a growth of 18.3% over March 04. The companys exports for the month stood at 7,354 units, growing by 36% over the corresponding month in 04. In the fiscal year ending March, 05, Hyundai Motor India posted cumulative sales of 224,243 cars, achieving a growth of over 30% over the previous fiscal year. Exports saw a staggering growth of 95% in the year 04-05 over 03-04, with a sale of 82,093 cars. In the domestic market, HMI sold 142,150 cars, a growth of 9.5%. Model-wise break-up of sales is as follows: Santro: 11,833 units, Getz: 1,601 units, Accent: 2,525 units, Elantra: 220 units, Sonata: 86 units and Terracan: 50 units. Operational Units HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 150,000 units per annum, raising HMILs total production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL is investing to expand capacity in line with its positioning as HMCs global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the companys greater focus on the quality of its after-sales service, HMILs service network will be expanded to over 1,000 in 2005. Product range HMIL presently markets over 18 variants of passenger cars across four models, the Santro and Getz in the B segment, the Accent in the C segment, the Sonata in the E segment and the Terracan in the SUV segment. In the fiscal year 2003, all Hyundai brands emerged as leaders in their respective market segments. 1.Santro: This model has three variants. They are priced between Rs 2,87,582-Rs 398495 a. XK- this car competes with the Indica LEi and DLE b.XL- this car competes with the Indica LGi and DLG

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c.XG/AT/XS- this car competes with the Indica LXi and DLX 2. Getz: this model has two variants. They are priced between Rs 465861-Rs527119 a.GetzGL-this car competes with the Indica LXi and IndigoGLS and Indigo GLE b.)GetzGLS 3.Accent: Hyundai has 5 different models of the Accent There are both diesel and petrol variants for this model . They are priced between Rs 5,37,940-Rs 7,21,928 4. Elantra: Elantra has 3 different models . There are both diesel and petrol variants for this model . They are priced between Rs 8,75,734- Rs 10,80,962 5. Terracan : This model is just present in one variant and only available in Cuttack in Orissa .It is priced at 20,59,721. 6.Sonata:There are two variants of this model, priced between Rs 12,14,727-Rs 16,24,959 7. Tucson- Tucson is only available in cuttack . In India Hyundai Motor ltd is a wholly owned subsidiary of Hyundai motor company hence its board members and balance sheet were not available in public domain . The executive in Hyundai consists of two individuals Mr SS Yang, managing director , HMIL and Mr BVR Subbu President HMIL

MARUTI UDYOG Company History Maruti Udyog Ltd is one of India's leading automobile manufacturers. It is partly owned by the Indian government and partly by Suzuki of Japan. Marutis are sold in India and various other countries (depending upon export orders). Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries. The company annually exports more than 30000 cars and has a extremely large domestic market in India selling over five hundred thousand cars annually. Maruti 800, till recently, was the company's largest selling compact car. More than a million units of this car have been sold worldwide so far Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MUL then were:

Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth.

The majority of the shareholders are currently the Japanese promoters with the Indian promote holding just 19%

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Board Members MUL is a Board-managed company. Currently the directors on the Board are:

Mr Shinzo Nakanishi, Chairman Mr Jagdish Khattar, Managing Director Mr Hirofumi Nagao, Joint Managing Director Mr Shinichi Takeuchi, Joint Managing Director Mr Kinji Saito, Director (Marketing and Sales) Mr Osamu Suzuki, Director Mr R C Bhargava, Director Mr S V Bhave, Director Mr Kumar Mangalam Birla, Director Mr Amal Ganguli, Director Ms Pallavi Shroff, Director Mr Manvinder Singh Banga, Director

Product range Maruti Udyog offers 14roducts starting from Maruti 800 to Maruti baleno ? Maruti Esteem Maruti esteem is sold in 5variants in both the diesel and petrol category . The 1.3 L (74 mm (2.9 in) bore by 75.5 mm (3 in) stroke) 16-valve SOHC engine has a compression ratio of 9.0:1 and makes 85 hp (63.4 kW) at 6000 rpm and 105 Nm (77.4 ft.lbf) of torque at 3000 rpm. The Peugeot-sourced TUD5 1.5 L (77 mm (3 in) bore by 82 mm (3.2 in) stroke) 8-valve engine has a compression ratio of 23.0:1 and makes 57 hp (42.5 kW) at 5000 rpm and 96 Nm (70.8 ft.lbf) of torque at 2500 rpm. All models other than the AX are equipped with a 5-speed manual transmission. The AX has a 3-speed automatic transmission. In January of 2005, the Esteem sold for between Rs420,000 and 520,000. The Diesel models are more expensive than the petrol models.Initially launched with a 65 BHP engine, the car saw poor sales. The advent of an MPFI engine producing 85 BHP produced a fleetfooted car which still has one of the best power-to-weight ratios in the 1000-2000 cc bracket available in India. Like most Maruti cars, fuel economy is excellent with the car returning 13-15 kpl in city driving and almost 20 kpl on open roads. Under attack from newer competitors like the Ford Ikon and the Hyundai Accent, the car has got a new lease of life after a series of price cuts ? Maruti 800 is a 796 cc, 3 cylinder, 4 person car manufacted by Maruti Udyog in India. It is the largest selling car in India. It is also exported to a number of countries in the South East Asia region including Bangladesh and Sri Lanka. The car comes in different versions including a AC and a non-AC version. The car was launched in December, 1984 with almost 100% import content. The car went through a series of facelifts and one noteable mechanical change, the introduction of a 5-speed gearbox (not available currently). The car has reported slipping sales in recent times, mainly due to the introduction of the more attractive Alto at a comparable price. A mini-van based on the same mechanicals has also proved successful. The car produces approximately 36 bhp (27 kW) of power and runs on 12 inch (305 mm) wheels. Kerb weight is 620 kg and 4 passengers (including driver) fit in comfortably. Top speed is in the region of 120 km/h and the frugal car is known to deliver economies of better than 20 km/l on clear roads. It is sold at Rs 236664

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? Maruti Alto : Currently the largest selling car in India .The Alto was to be the eventual successor to the Maruti 800. However, Maruti cleverly positioned the car in the entire small car segment offering the base LX version which is positioned with the Maruti 800 and the fully loaded VX model positioned along with the mid-size cars. The Alto is extremely well made with superb fit and finish. The rigid bodyshell will drive away the familar squeaks and rattles which plagues the 800 and the superbly calibrated suspense will ride over our roads with aplomb. The interiors are fresh and funcitonal and the quality of the materials used is of a high order. The only fly in the ointment is the cramped interiors. The VX version imparts great driveablity and is the quickest small car in India which reaches an astounding 155.6 kmph. Another victory for the Alto is its fuel consumption, both the versions are champions in this segment beaten by only, you guessed it, the ubiquitous Maruti 800.Maruti alto is currently priced between Rs 251217- Rs291615 ? Maruti Baleno -The Baleno is a 1.6 litre, 3 box sedan, and is among the latest from the Maruti stable. Inside the Baleno's cockpit-like cabin are 13 Advanced Noise Reduction Technologies dedicated to silent tranquility. Optimized space distribution between the engine compartment, cabin and the boot make for a very roomy interior. The thickly cushioned seats, a spring-mounted base and contoured headrests hold firmly and comfortably. The Suzuki electric Air Flow Control System directs the air flow from the air conditioner at the touch of a button, ensuring homogeneous distribution throughout the cabin. The Baleno's smooth ride, superior road grip, excellent handling and predictable response is the result of Independent McPherson struts on all four wheels, mounted on subframes both in the front and at the rear, which isolate the cabin from road noise. The Baleno is one of the most safe cars on the road today. Its safety features include collapsible front and rear construction with crumple zones, thick construction doors with heavy duty tubular steel side impact beams, anti-submarine effect front seats and other such. Maruti Baleno is available in two variants priced between Rs 6086285-Rs678616 ? Maruti Grand Vitara Maruti Grand Vitara is a meant to be a SUV pitched against the Mercedes M class. It is going to be imported as a CBU . Hence its price has not been decided ? Maruti Grand Vitara XL-7 The latest from Maruti stable . The price of this car is also yet to be determined. ? Maruti Gypsy This car is basically positioned against the Mahindra Jeep. The sales of this vehicle are purely to the institutions. Three variants of this vehicle exist priced between Rs498896- Rs 525357 ? Maruti Versa -The Maruti Versa a full blooded MPV is a striking sight to behold on the road. Unlike the OMNI it has a fairly well defined snout with a 3-groove grille, the side panels are tastefully delineated with snazzy graphics which extends from the tail lamp to the front door. The spoiler projecting out at the rear portrays raciness to the car. The car employs the proven and ultra reliable 1298cc 4 cylinder SOHC of the Esteem. Maruti engineers have taken special care to reduce NVH (noise, vibrations & harshness) levels to acceptable limits. They have also made appreciable efforts to improve safety features in the car, the monocoque constructions provides a rigid safety cell with side impact bars to protect against frontal impacts. Firm suspension settings ensure comfort and control. The interiors are tastefully done with brushed aluminum look though a substantial borrowing has been made from the Maruti family parts bin to bring down costs. The Versa is a versatile machine that has set the ball rolling for the competitors to follow. The versa is available in 5 variants priced between Rs 368571-Rs 447144 ? Maruti Zen Maruti Zen is basically a segment D car. The car is available in both diesel and petrol models in 5 different vairants. It can seat 5 persons and has an engine capacity of 993 cc for petrol and 1527 cc for diesel with a power output of 60 Hp and 57 Hp respectively. This car is priced between Rs 342240- Rs 386480

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? Maruti Wagon-R The maruti wagon R is a 4 seater car available in 8 variants with automatic transmission . It has an engine capacity of 1061 CC, 16 - Bit Electronic Control Module (ECM) in bharat Stage II variant ,32 - Bit Electronic Control Module (ECM) in bharat Stage III variant offering a max power of 64Bhp at 6400 RPM . This car is priced between Rs 365236-Rs 489381 ? Maruti Omni -This vehicle is essentially a Japanese commerical van which has been converted albeit some modifications as a passenger vehicle. When fully laden this car is underpowered mainly due to its excessive weight. Stability due to the high stance of the vehicle is suspect. The ride quality is also not upto regular standards due to the hard suspension which is of leaf spring lineage. However, manoeuverability is quite amazing for a car of such dimensions, so also its space efficiency. This car is a superlative runabout for city driving & for carrying a lot of load. This car is powered by the same engine as a Maruti 800 is. This model is available in 6 variants priced between Rs 253291-Rs 227633 ? Maruti Swift-The swift is the latest introduction from the maruti stable. It is a 5 seater car avilable in only petrol .There are 4 variants of this car. The car has an engine of 1298cc with a maximum power of 87 HP. This car is available in the price range Rs408027- Rs 510172. FIAT INDIA Ltd. FIAT was founded in Turin on July 12, 1899. The first plant, inaugurated in 1900 at Corso Dante, had 235 employees and produced 24 automobiles. The first automobile to bear the Fiat brand name was a model 4 HPOther models followed soon, the 8, then 10, then 12HP. The 8HP was the first front-engined Fiats, with a two-cylinder 1082cc engine producing 10hp, built at a rate of one per week. The 12HP, with a 3768cc engine was the first Fiat to be widely exported, around Europe and to the US. A total of 134 were built. The first mass-produced Fiat, the Zero 12-15HP was introduced in 1912. This used a 1847cc engine producing 18hp and over 2000 were built up until 1915. 1912 also saw a Fiat, the S76, set the world land speed record. This monster was powered by a 28355cc four-cylinder engine with three spark plugs per cylinder and 290hp. Maybe the most famous Fiat, the 500 'Topolino', was first shown in 1936. A small (the smallest mass produced car in the world at the time), two seater, it was powered by a 569cc four cylinder engine with just 13hp. Up to 1948, 122,000 were produced. Fiat has produced over 450 models since its inception and is world renowned for its superb design capabilities. In the Indian context, most noteworthy of mentioning is the range of cars that Fiat offers on the 178 platform which includes the very popular hot hatch The Palio. Fiat India is completely managed by Fiat Auto SpA of Italy. Giovanni Agnelli founded Fiat SpA in 1899. In India, the company was established in 1905, with the appointment of Bombay Motor Cars Agency as its sales agent.Later Fiat Automobiles signed a license and servicing contract with Premier Automobiles Ltd, paving the way for manufacturing and selling of 1100 and 1100D Fiat Padmini cars.Later the company introduced the Uno Europes favorite car for the last two decades - into India. The Fiat 178 World Car Project has been developed specifically to expand production in overseas markets. This project includes international-class cars like the Siena sedan, the Siena Weekend station wagon and the Palio hatchback. Fiat has achieved a high level of localization for all its cars, and is making world-class cars available in India at even more competitive and affordable prices. Fiat Automobiles SpA owns the most-admired and sought-after models worldwide, including the Fiat Lancia, the Ferrari, the Maserati and the Alfa Romeo.Fiat is the only automobile manufacturer in the world that has won the coveted European Car of the Year award nine times. It is also the only company in the world that manufacturers recyclable cars.In the pipeline are ambitious plans to make India its operational hub in Asia in the future and invest US $1 billion here in the coming years.

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Manufacturing Units Fiats state of the art car plant in Kurla is producing 150 cars a day. Product range Fiat palio The Fiat Palio is Fiat's 'world car', aimed at developing countries, although the station wagon version is also sold in Europe with the name Palio Weekend.Fiat Palio holds negligible market share in India. It is produced in Brazil, India, Turkey, South Africa and China as a hatchback, with the Siena and Weekend being sedan and wagon versions respectively. It is also built under licence in North Korea, as the Pyonghwa Hwiparam It is present in three variants all depending upon the engine size.the fiat palio diesel version costs Rs 476,016 -531,060 (ex-

showroom price ). Price varies to a small degree in different cities . The Petrol version costs 423,418 - 457,565 in different cities
Fiat petra The car maker is targeting sales of 400-500 units a month for the new offering. The diesel engine belts out 63 bhp at 4,500 revolutions per minute. The Diesel version costs 628,290 - 638,339 Fiat Siena

PROMOTION STRATEGIES USED BY MANUFACTURERS

Advertising Strategies This section focuses on covering the advertising strategies used by the various competing brands in the small cars segment. Please see the annexure for a sampling of various advertisements used by each of these companies.

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1) Maruti Maruti 800 This Company has historically been promoting its flagship product, the Maruti 800, on the basis of its unmatched value for money, both in terms of purchase price and also total cost of ownership. In addition, it has also promoted other cost-related features such as superior fuel efficiency and mileage in its promotion of the M800. Thus, the M800 primarily caters to the lower-end of the small-car buyers spectrum, with a price point of around Rs. 2 Lakh. Maruti Zen This vehicle is marketed by Maruti Udyog Ltd. as a premium-level product with the emphasis being on the product design and overall quality. Also focused upon are after-sales service quality, low cost of maintenance and overall customer satisfaction. With a price range of Rs. 3.4 to 4.1 Lakh, the Zen is being targeted by Maruti Udyog at the middle-range segment of the market. Maruti Alto: This car is meant as a replacement for the base product Maruti 800; the pricing strategy is geared so that the base pricing point (starting at around 2.51 lakh) is only slightly above that of Maruti 800, which starts at 2.36 Lakh; the USP is its mileage, as has been aggressively marketed by its advertisements with the tagline Lets Go. Dealer Observations The dealers stated that road shows and cold-calling of customers were the two primary methodologies employed in enhancing customer relations and sales with respect to Maruti. They specifically stated the strong established brand presence of Maruti, a wellthought-out pricing strategy and excellent customer financing options as the key advantages Maruti currently held; these causes enabled Maruti to maintain its position as the market leader. 2) Fiat Fiat Palio: The sole entry of Fiat in the small cars segment in India, the Fiat Palio is marketed as being a car which delivers uncompromisingly on ride quality and overall performance, with a new-found feature that is being touted being the fuel efficiency of the car. In addition, the newer variants of the Palio are being marketed with the aim of targeting the youth segment; a sample includes announcing a new youthful, glamorous and attractive colour called Passion Purple. Dealer Observations The Fiat Palio dealers were of the general opinion that Fiats conservative pricing and promotion strategy was negatively affecting its market performance in India. Specifically, the companys decision to set a pricing point starting at Rs. 4 Lakh negated a large chunk of the customer base and this, coupled with a none-to-aggressive promotion strategy significantly prevented Fiat from making major inroads into the Indian small car market. Advertising for the dealership was done mainly in the newspaper section of the mass media, with an emphasis on advertising in local (vernacular) newspapers. 3) Hyundai Hyundais entries in this segment are the Santro and its variant, the Xing. Ample interior space is the key selling feature of the Santro. The Santro is also currently the only car in its class in India to offer the Anti-lock Braking System (ABS) and has been advertised as such.

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Hyundais marketing strategy has never been focused on out-pricing the competitors; instead, it has always focused on developing technologically superior products (the Santro) and innovative marketing strategies to meet its objectives. However, the company relies extremely heavily on the performance of the Santro and hence release of comparable models in the same class by the competitors could have a negative impact on the companys sales performance. 4) TATA INDICA The key feature on which the Indicas marketing strategy is based is that of being Indias first indigenously developed small car (by Indians for Indians). In addition, the marketing strategy was aimed at addressing long-standing Indian buying concerns, namely value for money, fuel efficiency and sturdiness of build. The Indica V2 has several additional features and accessories added over its predecessor, such as enhanced absorbers, suspension, differential gears and enhanced maneuverability. These features when taken in combination form a formidable sales pitch by themselves for the Indica. Dealer Observations: The dealers were focused on promoting their product through road-shows at frequently-visited and popular locations; advertising strategy was by means of placing advertisements in both vernacular newspapers and English newspapers advertising the dealership; other forms of media were less frequently used. CUSTOMER BENEFITS AND INCENTIVES Most car companies focus on accessories and financing options when it comes to providing customer benefits and enhancements. Maruti Udyog Ltd. in particular enjoys a huge advantage in this case as it offers a hassle-free financing scheme, with tie-ups with HDFC, SBI and all other major nationalized and private banks. Fiat also offers a similar financing option, with tie-ups to several nationalized banks. Tata Motors, however, provides a number of additional benefits and incentives which are unique in their own right. a) Enhanced accessories range: The Indica V2 basic model is supplemented by a wide range of accessories which fall under the broad categories of comfort, style, ambience and car care. Car spoilers, roof rails, alloy wheels, custom audio systems, chillers and warmers and cutting-edge car security systems are some of the optional accessories offered by Tata Motors. b) Easy Financing option: Any individual satisfying the specified income and age levels for applying for financing option will find a lot of the regular tedium associated with financing eliminated using Tata Motors wide-ranging and user-friendly financing options. c) Insurance Information: Although base insurance for four-wheelers is mandatory in India, this fails to cover damages to property or persons; Tata Motors provides helpful information regarding the insurance schemes available to the customers which they can avail of, and the benefits associated with each scheme. d) Indica Club: This is a unique customer relations effort launched by Tata Motors which aims at value addition to the customer to maximize satisfaction in the post-purchase period. This effort provides additional privileges, offers and events to Indica owners free of cost, such as invites to special events and discounts with several leading brands such as Tanishq, Zodiac and Kenwood Music Systems.

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Results and Interpretations

Profession-related graph The majority of the customers surveyed were found to be businessmen with a middleincome salary; a large proportion of these customers were married people with families and had purchased the car for family use. This indicates that the car is basically a family car and the incentive to buy it is greater for that percentage of the group with families . Refer Graphs D-1 and D-2 in Annexure . Purpose-of-purchase graph The necessity for a car and the degree of comfort were the main reasons customers preferred to purchase a car in the small-car segment . As the car segment is not inherently geared towards luxury purposes, it is natural that any luxury value obtained from a car did not play a very significant role in purchase. Specifically, in the case of Maruti, the car itself is branded and targeted as a family car providing good value and comfort, a fact corroborated by the dealers of the car. This proves the effectiveness of Marutis brand positioning strategy. Refer Graphs T-3and C-1 and C-2 in Annexure . Financing Schemes An overwhelming majority (78%) of the respondents considered the financing options to be of importance while purchasing a car. This fact has been handled well by all the four major players (Tata, Maruti, Fiat and Hyundai) with all these companies coming up with attractive financing schemes, having tie-ups with major nationalized and private banks for providing these financing schemes . Refer B-1 in Annexure. Information Sources Graph A majority of the correspondents obtained information about the car through advertisements. This bodes well for Tata and Maruti with their More Car Per Car and Altos Lets Go campaigns which provide strong brand recall value; Tata Indicas marketing of their car as a spacious car suitable for the entire family fits in well with the customer preference of car as being a family oriented car, as was illustrated in a previous graph. Friends and family members also played a key role (43%) in generating brand awareness, a fact which Tata (and other competitors) can look into; with high degrees of existing customer satisfaction, Tata has the opportunity to enhance their customer service to obtain more referrals from existing customers. Tata has already addressed this issue by means of its Indica Clubs in which celebrity testimonials, exclusive events for Indica owners, are prominently featured; this creates positive reinforcement in the minds of existing customers and enhances the chances of referrals. Refer Graphs A-1 ,A-2 in Annexure .

Preferred Company versus Preferred Brand Graph Comparison: On account of an established brand presence and a head-start in the small-cars segment, the company image of Maruti Suzuki is stronger in customers minds than that of any other competitor (including Tata). 37% of respondents favor this company, indicating the strong brand association of Maruti Suzuki with the small-car segment. However, the customers preference for specific car products presents a different picture; Tata Indica is the car of choice for 30% of the respondents, with the Hyundai Santro second with 26%; both products have outperformed the Maruti Alto. The Alto has been included in the survey as it has been introduced by Maruti as a replacement for their stock M800 model, which is gradually being phased out. All future competition will be between the brands earmarked in the survey and here the Indica V2

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enjoys a clear advantage as it has been in the market a relatively longer time than either the Santro or the Alto (which is a newly introduced product.) A savvy marketing strategy on the part of Tata Motors will enable them to maintain and consolidate their existing lead in the Preferred Product category here. Refer Graphs T-1 and T-2 in Annexure . Advertising Appeal: With regard to customer preference for particular advertisements, Maruti is the handsdown winner with a large proportion of respondents preferring the Maruti advertising campaign. Tata Motors is lagging behind considerably in this particular regard. This demonstrates the effectiveness and visibility of Marutis advertising campaign and also serves to reiterate that Tata Motors should reconsider its current advertising strategy, in content and in visibility, to match that of Maruti and avoid any possible erosion of marketshare. Refer Graphs A-1 in Annexure . Brand Association: When asked about what they looked for when they scouted for purchase of a car in this category, a majority of the customers wanted a car which suited the description of relaxed, comfortable and easy-going. Here, the Indica gains ground on its base selling features of a comfortable and spacious ride. Being perceived as being a family car is also a key factor in the customers minds which again plays into the hands of Indica with their emphasis on marketing their car as a family car. Refer Graphs T-1 ,T-2 and T-3 in Annexure . No of cars tried before Purchase: A large proportion of respondents only tried a single car or at most two cars before making their final purchase-related decisions. The graph indicates the perceived choices of prospective customers regarding their choice of products before making a purchase decision. This brings to light the relative scarcity of available options in this particular car segment; a part of this can be put down to lesser customer awareness regarding the availability of more than one or two products in the market. Refer Graphs B-6 in Annexure .

Financial statements Analysis of Tata motors and its competitors

Introduction The purpose of this analysis is to do a concise intra-company year on year analysis and intercompany financial analysis with respect to its competitors. Various tables with year on year statistics of Tata motors and its competitors have been used to analyze performance on various parameters.

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Some of the various parameters on which performance has been compared are sales and growth rate of sales, profitability indicators, liquidity and solvency ratios, working cycle of current assets and turnover ratios Note: ? All amounts are in Rs. Crores ? The relevant graphs are given in Annexure-4 SALES TRENDS: Net Sales 2000-01 Tata Maruti Hyundai Percentage growth of gross sales Tata Maruti Hyundai -8.65 -3.87 30.39 9.27 1.87 11.59 22.82 -1.98 17.93 43.04 25.9 46.32 32.43 6656.71 6867.1 2241.65 2001-02 7308.53 7237.2 2599.28 2002-03 8935.78 7263.5 3113.39 2003-04 13019.26 9477.8 4927.15 2004-05 17184.33

Sales of Tata motors have been increasing since 2001-02, and the percentage growth in sales has been increasing for most of this period. In 2000-01 the sales of Tata Motors was below that of Maruti but Tata overtook Maruti in 2001-02. Though the automobile industry has been growing constantly in the past 4-5 years as is apparent in the table below, the growth in sales of Tata motors has greatly exceeded that of other companies. A part of this growth can also be attributed to products other than cars, such as medium and heavy commercial vehicles. But the fact is that Tata motors has shown excellent performance in the past 5 years. Using the above table we can compare the rate of growth of turnover of Tata and other companies in the auto industry. The sales of Tata motors increased sharply in 2001 upon the launch of Tata Indica V2.

PROFITABILITY INDICATORS: 200001 Gross Profit Ratio (GP/Gross sales) 200102 200203 200304 200405

26

Tata Maruti Hyundai Net Profit Ratio (PAT/Net sales) Tata Maruti Hyundai Returns On Capital Employed (PBIT/Capital Employed) Tata Maruti Hyundai Return on Net Worth (PAT/Net worth) Tata Maruti Hyundai

3.89 2.25 16.9

9.95 6.77 16.15

15.98 11.4 14.57

19.81 14.66 15.96

15.59

-7.58 -4.56 7.67

-2.22 1.37 10.52

3.29 1.95 5.19

6.58 5.49 7.97

6.98

-0.21 -8.41 15.22

6.12 6.19 19.14

21.32 10.25 16.26

37.03 22.75 34.83

32.83

-18.93 -11.51 19.1

-6.72 3.82 25.67

11.7 5.07 14.95

27.93 15.82 34.42

31.29

These profitability ratios have shown a consistent improvement for all three companies almost throughout the period. This reflects that the profitability of the industry has been increasing and the industry has become more and more lucrative over the years. The gross profit ratio of Tata Motors shows the efficiency of operations and cost management at the operating level to be superior to the rest of the industry. Also, this ratio has been increasing over the years showing that the increase in efficiency levels has been taking place constantly. Hyundai on the other hand seems to have already reached a high level of efficiency in its initial stages itself and has maintained these levels constantly. In the net profits however, Hyundai has consistently maintained leadership with regard to its competitors. Between 2000 and 2002, Tata Motors was running in loss and was far below the industry. However it recovered sharply in 2002-03 and has shown positive results since. The returns on capital employed have shown a similar picture, i.e. the company was losing money on the capital it had invested. However, in the past 3 years it has yielded very smart returns on its capital. The return on net worth makes the picture very clear and shows that Tata is yielding very good returns to its shareholders and has been second only to Hyundai in this respect. The returns in 2004-05 show that for every Rs 100 invested in Tata it yields returns of over Rs 31.

Marketing expenses to sales ratios:

27

200001 Marketing expense ratios Selling & marketing expenses to net sales Tata Maruti Hyundai Distribution expenses to net sales Tata Maruti Hyundai 1.67 2.32 0.16 3.09 3.53 4.49

200102

200203

200304

200405

4.18 4.47 4.31

4.45 5.56 5.84

2.47 5.78 3.05

2.38

1.74 2.19 0.16

1.57 1.04 0.3

1.42 1.25 0.29

1.49

Though the selling and marketing expenses in proportion to sales have fluctuated both upwards and downwards, they have consistently remained lower than that of the competition. This means that despite the comparatively low marketing expenses, Tata Motors products have performed extremely well in the market. The distribution expenses as a proportion of net sales have consistently been higher than the industry average. This may reflect scope for improvement in its logistics management. Liquidity and solvency ratios 200001 Current ratio (net assets/ net liabilities) Tata Maruti Hyundai Interest cover(pbit/interest) Tata Maruti Hyundai Long term debt / equity Tata Maruti Hyundai 0.97 0.12 0.69 0.63 0.12 0.54 0.45 0.1 0.56 0.32 0.08 0.47 0.6 -0.02 -3.37 4.16 0.62 2.71 10.01 2.57 6.03 16.21 6.93 18.2 40.85 7.89 0.92 1.09 2.06 0.77 1.17 2.11 0.76 1.67 2.08 1.02 2.28 1.31 1.11 200102 200203 200304 200405

The current ratio of Tata motors has remained lower than that of its competitors throughout the period for which analysis has been done. This reflects that it has a policy of financing its current assets through its current liabilities, which will be reflected later in the analysis through the creditor days cycle. This is a wise decision as current liabilities are a far cheaper source of funds than long term debts.

28

Interest cover This ratio shows the number of times the profit covers the interest. The higher the ratio the better it is since it implies that company is in a better position with regard to repayment of interest and that it is in less risk of falling into a debt trap. It also means that either the company is repaying debt or that the profits are rising. Debt equity ratio: From the debt equity ratios given in the table, we can observe that in 2000-01, Tata was working on a very high leverage. The resultant interest cost must have contributed greatly to its losses. However in the next few years it is clear that the company has greatly reduced its debts in proportion to its equity. This must have reduced its interest cost and also contributed to its growing financial success. However in the last year we observe that it has again increased its leverage. This must be due to the fact that the company has been operating on higher efficiency levels and so the management might have planned to increase its returns to shareholders. This can be substantiated by the fact that its return on net worth has increased as is shown in the profitability ratios.

Working capital days 2000-01 Gross working capital cycle Tata Maruti Hyundai 95 79 44 93 77 48 77 66 46 52 44 40 45 2001-02 2002-03 2003-04 2004-05

Avg. days of debtors Tata Maruti Hyundai 29 22 1 30 29 6 21 30 7 9 21 5 8

Avg. days of creditors Tata Maruti Hyundai 110 20 23 117 21 27 121 28 36 112 28 44 107

The working capital cycle shows the efficiency of utilization of working capital. The working capital cycle of Tata was much higher than the industry average between 2000 and 2003..However it had begun to show signs of improvement in 2002-03 implying that the management had begun to make conscious efforts to correct this problem. That they succeeded in this effort is visible in the following years. in 2004-05 they achieved a very respectable working cycle of just 45 days. However it is to be noted that the industry has also shown consistent improvement in this field and hence Tata has to strive continuously to meet and beat industry levels in the aspect of

29

working capital management. For this it can use approaches like JIT and kaizen costing, along with accrual working capital budgeting and adherence to the same. The debtor days show the number of days of average sales reflected in the debtors figure in the balance sheet. Hence it can also be used to infer efficiency of credit policy and collections from debtors. Again Tata which had been lagging behind its competitors in this field has shown great improvement and has bettered its competitor Maruti by a wide margin. However Hyundai remains the best in this field, which again reflects its efficiency of working capital management. The creditor days reflect the no of days of purchases which have not yet been paid for yet. A fairly high cycle is appreciated as it is a smart policy to finance current assets through current liabilities. However a very long cycle may reflect delayed payments which may damage the credibility of the company in the market. The cycle of Tata is disproportionately high in the industry, however given Tatas goodwill and high credibility in the market, it may also be interpreted that it enjoys the goodwill of its suppliers. It may also be that Tata is in a powerful bargaining position with its suppliers and is using this advantage to finance its working capital through its dues to suppliers.

Asset utilization ratios (times) 2000-01 VOP / total assets Tata Maruti Hyundai 0.84 1.4 1.21 0.92 1.53 1.28 1.12 1.42 1.41 1.4 1.7 1.9 1.44 2001-02 2002-03 2003-04 2004-05

VOP / GFA Tata Maruti Hyundai 1.22 1.86 1.43 1.28 1.79 1.6 1.56 1.61 1.75 2.19 2.09 2.56 2.82

Asset utilization ratios are turnover ratios. They reflect how well the assets are used and how much turnover is generated through each rupee of sales. In this aspect, Tata Motors has consistently lagged behind its competitors. This shows that Maruti and Hyundai have been using their assets very effectively. However, Tata has been improving consistently in this aspect as well. This is also shown through the vast improvement in the utilization of fixed assets as shown through the second table.

30

Annexure -1
Demographic D-1
Occupation

Others

Profession

Private(Non Executive) Private(Executive) Govt.(Executive) Business 0 5 10 15 20 25 30

No. of people

D-2
Monthly income

Rs 35,000 +

Monthly Income

Rs 25,000-35,000

Rs 15,000-25,000 Below Rs15,000 0 5 10 15 No. Of People 20 25 30

D-3

31

Age Distribution

7% 15%

15%

20-24 25-29 30-34 35-39 40-44

9% 7% 6% 9%

32%

45-49 50-54 55-60

TOMA and Brand Recognition T-1

Which of the companys products would you prefer to own? Others 6% Fiat 2% Hyundai 30% Maruti Suzuki 40%

Tata. 22%

T-2

Which brand of car would you prefer to own?

Others 20%

Tata Indica 30%

Hyundai Santro 28%

Fiat Palio 2%

Maruti Alto 20%

32

T-3
Brand Association

A family car Regal, wealthy and stately Secured, relaxed and easy going Competent, sophisticated & masculine Hot, passionate & sensational 0 5 10 15 20 25

Advertising Efficacy A-1

How do you come to know about this car?

Family members 17%

Advertisement 50% Neighbours 6%

Friends 27%

33

A-2
Which car advertisement is more appealing to you ?

Hyundai 18% Maruti Suzuki 48% Fiat Palio 24% Tata 10%

Car Usage C-1

Purpose of Purchase

30 25 20 15 10 5 0 Necessity Comfort Luxury Others

34

C-2

Use

Others Status Symbol Use Commercial Personal Family 0 5 10 15 20 25 30 35

No. of People

Buying Decisions B-1

Financing Options are,.

Not very Important 24% Very Important 46%

Considerably Important 30%

35

B-2

Influencer

Children 11%

Others 9%

Yourself 50% Spouse 30%

B-3

Accessories

14 12 10 No. Of People 8 6 4 2 0 1 2 3 4 Importance 5 6 7

36

B-4

Promotional scheme

12 10 8 No. Of People 6 4 2 0 1 2 3 4 Importance 5 6 7

B-5

After sale service

16 14 12 10 No. Of People 8 6 4 2 0 1 2 3 4 Importance 5 6 7

37

B-5

How many different cars did you go through before you decided on this car? 30 No. of Customers 25 20 15 10 5 0 1--2 3--5 5--7 No. of Cars More than 7 None

Importance of Car Attributes C-1

Price of the car

12 10 8 No. Of People 6 4 2 0 1 2 3 4 Importance 5 6 7

38

Engine power

12 10 8 No. Of People 6 4 2 0 1 2 3 4 Importance 5 6 7

C-2

Fuel efficiency

20 15 No. Of People 10 5 0 1 2 3 4 Importance 5 6 7

39

C-3

Aesthetics

18 16 14 12 10 No. Of People 8 6 4 2 0 1 2 3 4 Importance 5 6 7

C-4

Reliability and safety

25 20 15 No. Of People 10 5 0 1 2 3 4 Importance 5 6 7

40

C-5

Speed

12 10 8 No. Of People 6 4 2 0 1 2 3 4 Importance 5 6 7

41

Annexure -2 SURVEY QUESTIONNAIRE

Name of Dealership Dealership of Address (Company) : : :

1) What are the range of products that the company offers ?

2)

Please specify details of the distribution network of the company ?

3)

Where are the CARS used (eg for personal use , for commercial use such as call centre employee transportation)?

4)

What is the age range of the customers who come to buy a car ?

42

5)

How many cars of _________________

do you sell in a month ?

6)

What are the financing options you provide to the customer ?

7)

What do customers look for in a CAR while buying ?

8)

How many visits and how much time does a customer actually spend before purchasing a car?

9)

Do you advertise too , and if how, which media is the most effective and why?

10)

What more can the company do to increase its sales ?

43

SURVEY QUESTIONNAIRE: Customers personal profile :

1. Name : 2. a) Age ( In years ) : b) Gender (please tick ) : Male / Female

3. Educational Qualification : 4. Address :

5. What is your occupation? a) Business b) Govt. Service i) Executive ii) Non Executive 6. Which mode of transport you own? a) Two Wheeler 7. b) CAR c) None c) Pvt. Service i) Executive ii) Non Executive

Are you thinking of purchasing a car in the near future ? a) Yes b) No

8. What is your monthly income?

a) Below Rs15,000 b) Rs 25,000-35,000 b) Rs 15,000-25,000 d) Rs 35,000 +

9. Which of the companys products would you prefer to own? a) Maruti Suzuki c) Hyundai e) Others (please specify ) _________ 10. b) Tata. d) Fiat

Which brand of car would you prefer to own?

44

a) Tata Indica c) Fiat Palio e) Others (please specify ) __________

b) Maruti Alto d) Hyundai Santro

11. Please give points max (7) and min (1) for the reason of choosing a car. a) Price of the car c) Fuel efficiency e) Promotional scheme g) Reliability and safety i) Accessories ___ ___ ___ ___ ___ b) Engine power d) Aesthetics f) After sale service h) Speed ___ ___ ___ ___

12. In which class you would classify the car you prefer? a) Necessity c) Luxury 13. For what purpose will you use the car? a) For family use b) For personal use c) For commercial use d) For status symbol b) Comfort d) Others

e) Others ( please specify ) 14. How do you come to know about this car?
a) Family members d) Advertisement b) Friends

________________

c) Neighbours _________

e) Others (please specify )

15. Do you know about the technical specifications of the car ? a) Yes b) No

16. If yes, please specify relevant facts about the technical specification of the car a) Fuel capacity of engine ______ b) Engine power ______

45

c) Mileage

_______

d) Average speed on road ______

17. Which car advertisement is more appealing to you ? a) Maruti Suzuki c) Hyundai b) Tata d) Others c) Fiat Palio

18. What kind of brand personality do you associate yourself with the model ?
a) It is hot, passionate & sensational b) It is competent, sophisticated & masculine c) It is secured, relaxed and easy going d) It is regal, wealthy and stately e) It is a family car 19. How many different cars did you go through before you decided on this car? a) 1-2 c) 5-7 b) 3-5 d) More than 7

20. How much do the financing options (Loans , EMI ) influence your buying decision?
a) It is a very important factor b) It is of considerable importance c) It is not very important

21. Who is the purchase influencer?

a) Yourself c) Children b) Spouse d) others

Thank You
46

ANNEXURE-3

Master Data
Occupation Business Govt.(Executive) Private(Executive) Private(Non Executive) Others Mode of transport you own Two Wheeler CAR None Are you thinking of purchasing a car in the near future ? Yes No Monthly income Below Rs15,000 Rs 15,000-25,000 Rs 25,000-35,000 Rs 35,000 + Which of the companys products would you prefer to own? Maruti Suzuki Tata. Hyundai Fiat Others Which brand of car would you prefer to own? Tata Indica Maruti Alto Fiat Palio Hyundai Santro Others Purpose of Purchase Necessity Comfort Luxury Others Use Family Personal

27 9 10 2 1

25 26 3

32 18

14 25 0 11

20 11 15 1 3

15 10 1 14 10

15 30 6 3

35 13

47

Commercial Status Symbol Others How do you come to know about this car? Family members Friends Neighbours Advertisement Others Do you know about the technical specifications of the car ? Yes No Which car advertisement is more appealing to you ? Maruti Suzuki Tata Fiat Palio Hyundai Others Brand Association Hot, passionate & sensational Competent, sophisticated & masculine Secured, relaxed and easy going Regal, wealthy and stately A family car How many different cars did you go through before you decided on this car? 12 35 57 More than 7 None Financing Options Very Important Considerably Important Not very Important Influencer Yourself Spouse Children Others

8 6 1

11 17 4 32

19 30

23 5 12 9

4 5 22 1 17

25 13 4 1 5

23 15 12

27 16 6 5

48

Annexure-4

Note: Amounts are in Rs. crores

NET SALES
20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2000-01 2001-02 2002-03 YEAR 2003-04 2004-05

Tata Maruti Hyundai

GROSS PROFIT RATIO

25 20 15 10 5 0 2000-01 2001-02 2002-03 YEAR 2003-04 2004-05 tata maruti hyundai

49

CURRENT RATIO
2.5 2 1.5 1 0.5 0 2000-01 2001-02 2002-03 2003-04 2004-05 Tata Maruti Hyundai

ROCE
40 30 20 10 0 -10 -20 YEAR 1 2 3 4 5 tata maruti hyundai

50

DEBT/EQUITY
1.2 1 0.8 0.6 0.4 0.2 0 2000-01 2001-02 2002-03 2003-04 2004-05 Tata Maruti Hyundai

NET PROFIT RATIO

12 10 8 6 4 2 0 -2 -4 -6 -8 -10

tata maruti 1 2 3 4 5 hyundai

YEAR

51

Distribution Expense to Net Sales

2.5 2 1.5 1 0.5 0 1 2 3 year 4 5 Tata Maruti Hyundai

MARKETING EXPENSE RATIOS

7 6 5 4 3 2 1 0 2000-01 2001-02 2002-03 2003-04 2004-05 Tata Maruti Hyundai

52

References : http://www.acnielsen.co.in/news.asp?newsID=120 http://www.indiainfoline.com/news/news.asp?dat=57128 http://eb.eiu.com/index.asp?layout=oneclick&country_id=1570000157#9

www.agencyfaqs.com/news/company_news/Marketing/4214.html www.wikipedia.org http://www.tatamotors.com/ www.hyundaimotorindia.com www.fiat.com www.marutiudyog.com CMIE Database

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Filename: marketing Management Project (Tata Indica) Directory: C:\Documents and Settings\tapan\Desktop Template: C:\Documents and Settings\tapan\Application Data\Microsoft\Templates\Normal.dot Title: Analysis of Consumer Preferences and Promotion Strategies for Tata Indica in Orissa Subject: Author: u105007 Keywords: Comments: Creation Date: 12/13/2007 3:02 PM Change Number: 2 Last Saved On: 12/13/2007 3:02 PM Last Saved By: tapan Total Editing Time: 1 Minute Last Printed On: 12/13/2007 3:08 PM As of Last Complete Printing Number of Pages: 53 Number of Words: 13,228 (approx.) Number of Characters: 75,403 (approx.)