Acknowledgement

“….. 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 don’t 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 India’s 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 world’s
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.

Scope & objective

The aim of the study made through this project is to know the consumer awareness about
the product Tata xeta with the corporate clients, in Bokaro steel city and comparative
analysis of the Tata-xeta and Maruti Alto with their product features and market share.

Research methodology

1. research design
2. sampling plan
3. instruments of collection of data
4. data analysis and interpretation

2
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.

3
 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.

4
A product to be successful in the market needs the prospective customers to be aware of
the product. Consumer awareness about their products is the company’s one of the
primary objective which makes the company to end up at advertising. They invest a lot of
money in creating consumer awareness about their newly launched and existing products.

Objective

It’s always better to start your search with a predefined objective, rather than beating
around the bush. An objective will give you a direction to work upon and proceed your
further research. Therefore, my project has in basic to objective

• 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.

5
 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.

6
 In the preliminary stage, my research stage constituted of exploratory study by which it
is clear that the existence of the problem is obvious .So, I can directly head for the
conclusive research.
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.
7
Instrument of collection of data
I have used one set of questionnaire to collect data from the customers. This
questionnaire is structured and highly ordered. This includes both close ended and open
ended questions. The close ended questions included both dichotomous and multiple
choice questions.

Data analysis and interpretations

Large volumes of raw data were collected through questionnaires in my research study.
This raw data has been further converted into significant statistical information before
further interpretation so that I can answer my research objective well.
The collected raw data was then edited and coded by the researchers to eliminate
errors and to assign data to pertinent categories. The data was then tabulated and
presented with the help of bar diagrams and pie charts.

8
 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 India’s 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 India’s 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, India’s largest business conglomerate. Tata Motors collaborated with Germany’s
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
9
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 India’s 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.

10
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 customer-
desired 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.

11
Simultaneously, it also plays an active role in community development, serving rural
communities adjacent to its manufacturing locations.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence
and leadership from the glorious year of 1945 till date it is working on it success road.
In its senior management position Mr. Ravi Kant is the Managing Director of this
company.
Manufacturing
Tata Motors owes its leading position in the Indian automobile industry to its strong
focus on indigenization. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product evolution-
design, development, manufacturing, assembly and quality control, is carried out
meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in
the West and Lucknow in the North.

Jamshedpur:

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

12
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.

13
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.

Research & Development:

Research provides the much-needed inspiration for the birth of new ideas, which in turn
breathes new life into products. World-class automotive research and development are
key factors that contribute to the leadership of the Company.

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. The Engineering Research Centre in Pune was
setup in 1966 and is among the finest in the country. It has been honored with two
prestigious awards - 'The DSIR National Award for R&D Effort in Industry - 1999' and
'National Award for Successful Commercialization of Indigenous Technology by an
Industrial Concern - 2000.'

Central Tool Room, Jamshedpur:

The Central Tool Room at Tata Motors, Jamshedpur is one of the most modern tool
rooms in India. Equipped with the latest CNC Machines, Tryout Presses and Inspection

14
facilities, this tool room has the proven capability of developing tooling solutions for all
applications.

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 country’s 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 company’s 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

15
inroads abroad with its strategy of focusing on select markets with relevant products from
its commercial vehicles and passenger vehicles range.

With increasing sales, employees, product offering, manufacturing facilities and

distribution centers along with expansion outside India, the company seems to have
promising future.

16
 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 petrol-
fuelled 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

17
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

for the AC model. The Xeta range is priced between Rs 2.69 to Rs 3.65 lakh ex-
showroom 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:

18
Design and engineering

The design of the Xeta is exactly the same as the Diesel version, no significant changes,
except the upholstery and the beige dashboard. Xeta carries with it all the virtues, like
space and comfort. Seats are reasonably good and the Air con is also quite good, but the
spread of the vents could really have been better.
There are a few things about Tata build quality that are quite frankly annoying. The door
ajar warning switch has been placed right next to the door hinge; this results in the cabin
lamp switching off, even when the door is in fact ajar! Tata has also used bolts to fit the
wheels to the hubs, which is unlike the Japanese who normally use studs and nuts. The
result is that it is quite hard to replace a flat tire. The Indica though, unlike its some of its
Japanese competitors can easily accommodate 5 passengers with much space to spare,
and the best part about the interiors of the Indica are its 2 front seats that provide
excellent comfort and support. The rear seats though lacking in comfort compared to the
ones in the front has great legroom for its passengers. This can be a big boon on long
journeys helping reduce fatigue.

Engine and transmission

The entire design effort of this new car is concentrated on the engine alone, the engine
although the same block as the diesel, displaces 1405cc and has been detuned to now
pump 70ps and 14kgm of torque. The best part of this engine is not just that figure, it the
way it's delivered. The Indica petrol ceases to be a rampage, a fuel-guzzling monster; it is
now able to pump loads of torque into those front wheels. The Indica is now able to pull
from as low as 800rpm.
The crux of the changes incorporated in the new Indica. The New Indica Xeta now sports
a slightly detuned 4-cylinder in line, 1405cc 32bit microprocessor controlled fuel injected
petrol engine, which is able to pump out 70ps at 4600rpm 14kgm at 2600rpm. Tata Now
claims that this engine, thanks to the torque it is able to generate will be able to churn out
19
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

Silent engine, comparatively more refined Tires have a tendency to lock up

Truck loads of space Gearbox, bit too numb

Excellent ride; especially at higher speeds The boot could've been much bigger

beige interiors and seats Engine is not rev-happy

Excellent torque; especially low down Engine doesn't feel like a 1.4

boot space quite good Tata is still in its learning curve

20
 Technical Comparison of Tata Xeta and Maruti Alto

Tata Indica V2 Xeta GLS-BS

Unit III Maruti Alto LXi - BS III
Price (Ex-
Showroom
Mumbai) Rs. 2,99,470 2,99,102
EMI* Rs. 3,977 3,972
More Details More Details
Tata Indica V2 Xeta GLS-BS
Features III Maruti Alto LXi - BS III
Air
Conditioner
Power
Steering
Cup
Holders
Folding Rear-Seat X
Remote Fuel-Lid
Child Safety Locks
Dimensions and
Weights | |
Overall Tata Indica V2 Xeta GLS-BS
Length III Maruti Alto LXi - BS III
Overall
Width mm 3675 3495
Overall
Height mm 1665 1495
Wheel Base mm 1485 1460
Ground
Clearance mm 2400 2360
Front Track mm 170 166
Rear Track mm 1400 1290
Front
Headroom mm 1380 1290
Front
Legroom mm 955
Rear
Legroom mm 1080 1190
Rear
Shoulder mm 820 900
Boot Space mm 1335 1220
Gross litre 217
21
 Vehicle
Weight
Kerb
Weight kg 1395 1165
Fuel
Economy kg 995 740
Tata Indica V2 Xeta GLS-BS
Mileage (Highway) III Maruti Alto LXi - BS III
Mileage
(City) km/litre 15.3 18.3
Mileage
(Overall) km/litre 11.1 13.6
Capacities km/litre 11.9 14.5
Tata Indica V2 Xeta GLS-BS
Seating Capacity III Maruti Alto LXi - BS III
Fuel Tank
Capacity person 5 4
No of Doors litre 37 35
Performanc
e 5 4
Tata Indica V2 Xeta GLS-BS
Maximum Speed III Maruti Alto LXi - BS III
0-100kmph kmph 152 137
1/4 Mile seconds 17.4 21.5
100kmph-0
(Braking) seconds 20.7 21.7
80kmph-0
(Braking) meters 60.1
Engine meters 34.8 35.8
Tata Indica V2 Xeta GLS-BS
Engine Type/Model III Maruti Alto LXi - BS III
475 SI Multi Point Fuel
Displaceme injection System with 32-bit
nt microprocessor FC engine
Power cc 1396 796
PS@rp
Torque m 70@4800 47@6200
Valve Nm@rp
Mechanism m 122@2600 62@3000
Bore
Stroke mm 75
Compressio
n Ratio mm 79.5
No of
Cylinders 9
Cylinder
Configurati
on cylinder 4 3
Valves per Cylender In-line
Ignition
Type valve 2 4
22
Engine Block Material
Block Head Material Iron
Fuel Type Iron
Fuel System Petrol Petrol
Transmissio
n MPFI MPFI
Tata Indica V2 Xeta GLS-BS
Transmission Type III Maruti Alto LXi - BS III
Gears/Speed
s Manual Manual
Clutch Type Gear 5 5
Final Reduction Gear
Ratio
Suspensions 3.76
Tata Indica V2 Xeta GLS-BS
Front Suspension III Maruti Alto LXi - BS III
Independent, Wish Bone type
with McPherson strut, Antiroll McPherson Strut with
Rear Suspension Bar torsion type anti-roll bar
Independent, Semi trailing arm Coil spring with double
with coil spring mounted on action telescopic shock
Steering hydraulic shock absorbers absorbers
Steering Tata Indica V2 Xeta GLS-BS
Type III Maruti Alto LXi - BS III
Power
Assisted Rack and pinion
Minimum Turning
Radius Standard Standard
Brakes meter 4.9 4.6
Tata Indica V2 Xeta GLS-BS
Brake Type III Maruti Alto LXi - BS III
Dual Circuit, diagonally split, Powerful 8-inch booster
Front vacuum assisted with PCR assisted front disc brakes
Brakes valves halt instantly on braking
Rear Brakes 231mm Ventilated Discs Disc brakes
Wheels and Tyres 180mm Drums
Tata Indica V2 Xeta GLS-BS
Wheel Type III Maruti Alto LXi - BS III
Wheel Size Steel
Tyres 4.5J x 13" 12"
165 x 65 R13 Radial 145 / 80 R12

23
 Indian Automobile Industry
India is emerging as one of the most attractive automotive markets in the world, and is
poised to become a key sourcing base for auto components. The table below captures the
highlights of the sector in India that illustrates its growing significance.
Indian Automobile Industry

• Largest three wheeler market in the world.

• 2nd largest two wheeler market in the world.

• 4th largest passenger vehicle market in Asia.

• 4th largest tractor market in the world.

• 5th largest commercial vehicle market in the world.

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

24
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

25
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.
.

26
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.

27
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 entry-
level 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 & Mahindra’s 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.

28
Exports of automobiles from India are booming

While the domestic sales of automobiles have been increasing at a significant rate,exports
have taken a quantum leap in recent years. The exports of automobiles from India have
been growing at a CAGR of 39 per cent for the past four years.

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

29
A diagram illustrating the structure of Indian automobile Industry

30
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 English-
speaking, 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.

31
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.

32
The outlook for India’s automotive sector appears bright

The outlook for India’s automotive sector is highly promising.In view of current growth
trends and prospect of continuous economic growth of over 5 per cent, all segments of
the auto industry are likely to see continued growth. Largeinfrastructure development
projects underway in India combined with favorable government policies will also drive
automotive growth in the next few years. Easy availability of finance and moderate cost
of financing facilitated by double income families will drive sales in the next few years.
India is also emerging as an outsourcing hub for global majors.Companies like GM, Ford,
Toyota and Hyundai are implementing their expansion plans in the current year. While
Ford and Toyota continue to leverage India as a source of components, Hyundai and
Suzuki have identified India as a global source for specific small car models.At the same
time, Indian players are likely to increasingly venture overseas, both for organic growth
as well as acquisitions. The automotive sector in India is poised to become significant,
both in the domestic market as well as globally.

Production, Domestic Sales and Exports Trend

Automobiles

33
While Domestic Sales have been growing strongly since 2000-01, Exports have nearly
tripled in the last 5 years

34
Commercial Vehicles

35
Growth in the economy and infrastructure development isdriving growth in this segment
Passenger Vehicles

36
Market shares

37
 Car Sale Surge in June 2006

The sale figures of several automobile companies for first quarter of the current
financial year (2006-07) have been declared. I, covered select companies, viz, Maruti
Udyog, Tata Motors, Hyundai India and General Motors, having presence only in the
passenger vehicles (PV) and commercial vehicles (CV) segments.

India ’s leading car marker Maruti Udyog has reported a 17.5 per cent increase in
domestic sales at 44,626 units (in passenger cars, utility vehicles and multi purpose
vehicles) during June 2006 as compared with 37,995 units in June 2005. Total sales (PV
& CV) have grown by 17 per cent to 48,425 units in June 2006 as against 41,390 units in
the previous year, including export of 3,799 units, up by 11.9 per cent from 3,395 units in
June 2005. Sales of Maruti 800 have stood at 7,796 units, up by 22.1 per cent in June
2006 from 6,387 units a year ago. Sales in the domestic A2 segment (comprising Alto,
WagonR, Zen and Swift) have grown by 10.2 per cent to 27,228 units in June 2006
compared with 24,703 units a year ago, while sales in the company’s A3 segment
(Baleno and Esteem) have risen by 22.3 per cent to 2,680 units compared with 2,191
units sold in June 2005.

Tata Motors has reported a jump of 37 per cent in total sales, including exports, at
45,223 vehicles in June 2006 as against 33,018 vehicles in June 2005. Its domestic sales
of passenger cars have increased by 27.8 per cent to 18,463 units. Its Indica group has
registered a growth of 41 per cent to 12,271 units over June 2005. The Indigo family has
reported sales of 2,885 units, a decline of 1.7 per cent in June 2006. Sumo and Safari
have accounted a rise of 17.5 per cent to 3,307 units; the new Safari range launched in the
latter part of the month (June 2006) has recorded a sale of 1,011 units. On the commercial
vehicles (CV) front, the company’s domestic sales in June 2006 have augmented by 38.9
per cent to stand at 21,565 units compared with 15,530 units in the same month a year
ago. Sales of medium and heavy commercial vehicles (M&HCV) have stood at 11,808
units, a rise of 23.3 per cent over June 2005,

38
 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 company’s 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.

39
 Four-Wheeler update

Maruti Udyog Ltd

Maruti Udyog (MUL) sold 39,574 vehicles in June 2004, including 3,159 units of
exports, registering a 10% yoy growth over last year’s June sales of 36,038 units.

April- Apr 03-Mar

Segment Models June June 04
yoy yoy
2003 2004 (%) 2003 2004 (%)

A1 M800 13,126 10,761 -18 40,774 31,874 -22 167,561

C Omni,Versa 4,557 4,888 7 13,879 14,755 6 59,526

A2 Alto,WagonR,Zen 10,337 18,768 82 32,885 59,201 80 176,132

A3 Baleno,Esteem 1,074 1,252 17 3,132 4,075 30 14,173

Total Passenger
Car 29,094 35,669 23 90,670 109,905 21 417,392

MUV Gypsy,Vitara 272 746 174 851 1,479 74 3,555

Total Domestic
sales 29,366 36,415 24 91,521 111,384 22 420,947

Export Sales 6,672 3,159 -52 12,496 12,240 -2 51,175

Total Sales 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. Alto’s non-AC version starts at a price of Rs2.3lacs accounting for around one-
third 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

40
Hyundai Motors India Ltd

In June 2004, Hyundai Motor India Ltd (HMIL) recorded total sales of 17,889 units
including exports of 5,694 units. ‘Santro Xing’ recorded a sale of 15,456 units, Accent
recorded 1,602 units, Elantra stood at 701 units, Sonata registered sales of 85 units and
the SUV Terracan sales stood at 45 units.It recorded all time high cumulative sales of
91,356 units for the first six months in 2004 growing 39% yoy.Some production
constraints restricted sales and therefore the company could not fulfill the demand for its
Elantra model.HMIL is in the process of investing US$220mn at its manufacturing
facility near Chennai to expand production capacity to 250,000 units by the third quarter
of the year 2004.

Tata Motors Ltd

Total Vehicle sales

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, it’s 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,
41
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 CV’s 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.

Mahindra & Mahindra Ltd

Volumes 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.
42
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 (%)

MDV Passenger
Domestic 673 990 -32 1,837 2,115 -13.1
Exports 200 86 132.6 466 193 141.5
MDV Goods
Domestic 2,491 2,532 -1.6 7,830 5,662 38.3
Exports 508 104 388.5 923 207 345.9
LCV Goods
Domestic 25 33 -24.2 67 82 -18.3
Exports 1 30 -96.7 13 87 -85.1
Total 3,898 3,775 3.3 11,136 8,346 33.4

43
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 MPV’s in April and May 2004 together whereas M&M sold 12
units for the same period - (Excluding UV’s shown above).

44
ANALYSIS

45
 Annual Income

Less than Rs,150,000

Rs.1,50,000 -
Rs2,50,000
Rs. 2,50,000 -
Rs3,50,000
Above Rs.3,50,000

Annual income is always considered to be an important factor in selection of the target

markets for any company. As Tata –Xeta is the middle class segment, so the customers
earning less than Rs 1,50,000 is about 20%, the customers lying between Rs1,50,000 to
Rs 2,50,000 is about 35%, those that in Rs 2,50,000 to Rs 3,50,000 is 25% and that above
Rs 3,50,000 is 20 %.
By this way we can conclude that at most the customers which are called to be the
essence of the middle class own Tata- Xeta.

46
 Vehicle Brand

Maruti
Hyundai
Tata
Mahindra
Others

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 Maruti-
Alto.

47
 Source of Knowledge about Tata-Xeta

50%
45%
40%
35%
30%
25% Series1
20%
15%
10%
5%
0%
TV Newspaper Friends & Others
Advertisement Relatives

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%.

48
 Reason for attraction towards Tata-Xeta

40%

35%

30%

25%

20% Series1

15%

10%

5%

0%
Product quality Product price Brand Advertisement

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 Indian’s
mind. Therefore it takes just about 12% of the total sample taken for study.

49
 Media of advertisement for attraction

Print media
Road shows
TV- Advertisement
Hoardings

Indians are attracted by the TV Advertisement as they think watching TV to be a famous

mode of entertainment. There are also a number of commercial breaks between various
TV shows. Companies target and try to occupy these spaces to get closer to their
customers or rather make them acquainted of the product. This was also studied in my
research as it occupied about 38%, followed by print media that is advertising through
various newspaper and magazines contributes about 28%.Customers are also attracted by
the hoardings which are put up by the company that amounts to a total of 22% ,where as
only 12% of the customers are attracted by various Road shows.

50
 Discount or free gifts attraction

80%

70%

60%

50%
Series1
40%

30%

20%

10%

0%
Yes No

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 don’t even desire to get such gifts.

51
 Factors which influence the purchase decision

Speed
Price
Brand
Comforts
Spareparts availability
Looks
After sales service

“Neighbours’s envy and owner’s 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.

52
 Tata-xeta being well equipped with all the features of a small car

90%
80%
70%
60%
50% Series1
40%
30%
20%
10%
0%
Yes No

People in my sample units seemed to be satisfied by the performance of Tata-Xeta.. They

agreed to the various features provided by Tata-xeta being a small segment car.About
81% of the total sample agreed to this, where as 19% disagreed to it showing their high
expectations from the brand name which was not otherwise fulfilled .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.

53
 Diffrences between Tata-Xeta and Maruti- Alto

Quality
Price
Looks
Speed
Comforts
Mileage

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.

54
 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.

55
 Limitations of the study

1. Money was the major constraint during my project.

2. Duration of the study also limited for further intensive study.
3. Mostly stress was given on primary data collection and it was difficult to collect
secondary data from organization and dealers.
4. Limited coverage area was also a major constraint while conducting the study.

56
 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 didn’t 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.

57
 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

58
Annexure

59
60