A TRAINING REPORT ON

COMPARE THE STANDING TATA MOTORS Vis--vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY SUBMITTED TO: MAHARSHI DAYANAND UNIVERSITY, ROHTAK in the partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED)

(III Semester)
Submitted by SWATI ADHIKARI Regn. No.GURUGRAM BUSINESS SCHOOL ELC CODE: 151012055 Plot no 74, Unnati Park, Besa Chawk, Nagpur, Maharashtra
1

DECLARATION

I, hereby declare that the Training Report conducted at A.K Gandhi Cars (TATA Motors) Under the guidance of Mr. Ajay Patole Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK Is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes.

Date: Swati Adhikari Place: Regn. No.:

CERTIFICATE

This is to certify that Ms. Swati Adhikari, a student of the Maharshi Dayanand University Rohtak, has prepared her Training Report entitled at COMPARE THE STANDING TATA MOTORS Vis--vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY under my guidance. She has fulfilled all requirements leading to award of the degree of MBA (Industry Integrated). This report is the record of bonafide training undertaken by her and no part of it has been submitted to any other University or Educational Institution for award of any other degree/diploma/fellowship or similar titles or prizes.

I wish her all success in life.

(Signature) Mr. Ajay Patole <Faculty & Co0ordinator> <B.E., MBA>

CERTIFICATE

This is to certify that Ms. Swati Adhikari who is pursuing MBA (Industry Integrated) course of Maharshi Dayanand University, Rohtak at Gurugram Business School has undergone management training at our organization. Her performance during the training period was found to be good. We wish her success for his future endeavors.

Authorized Signatory Name- Mr. Pramod Nimbhorkar Designation- Sales Manager

ACKNOWLEGDEMENT

Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from A.K Gandhi Cars (TATA Motors) overwhelmed me during the project.

My sincere gratitude to Mr. Achal Gandhi for providing me with an opportunity to work with A.K Gandhi Cars (TATA Motors).

I am highly indebted to him for provided me with the necessary information and his valuable suggestion and comments on bringing out this report in the best possible way.

A special thank to Mr.Pramod Nimbhorkar for his constant encouragement and guideline from the beginning to the end with never ending patience. His constant support and efforts helped me to complete my project on time. I also thank Prof. Ajay Patole, faculty guide, GGBS, Nagpur who has sincerely supported me with the valuable insights into the completion of this project. Last but not the least; my heartfelt love for my friends, whose constant support and blessings helped me throughout this project.

Index:
SR.NO 1 2 3 4 5 1 PARTICULARS Cover Page Declaration Certificate of the College Certificate of the Organization Acknowledgement INTRODUCTION 1.1 General Introduction about Automotive Sector 1.2 Automotive Industry Profile a. Origin and Development of Automotive Industry b. Growth and Present status of Automotive Industry c. Future of Automotive Industry 2 Profile of TATA MOTORS 2.1 Origin of TATA MOTORS 2.2 Growth and Development of TATA MOTORS PAGE NO 1 2 3 4 5 8-17 8 9-14 9 12 14 18-40 18 22

2.3 Present Status of TATA MOTORS 2.4 Functional Departments of TATA MOTORS 2.5 Structure of TATA MOTORS
2.6 Product and Service Profile of TATA MOTORS

27 28 30 31 36 41-45 41
45

2.7 Market Profile of TATA MOTORS 3 3.1 DISCUSSIONS ON TRAINING MY Work Profile

3.2 Key Learnings 4 Study of Selected Research Problem 4.1 Statement of Research Problem 4.2 Statement of Research Objectives 4.3 5 Research Design and Methodology Analysis 5.1 Analysis of Data 5.2 Summary of Findings 6 Summary and Conclusions 6.1 Summary of Learning Experience 6.2 Conclusions and Recommendations

46-58 46 56 57 59-70 59 70 71-80 71 72

Chapter 1: Introduction
1.1 General Introduction about Automotive Sector The Indian automotive industry started from 1991 with the governments delicensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Since then many large global companies have set up their facilities in India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 35% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%.Chennai, is also referred to as the "Detroit of India"with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMWhaving an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.
8

Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroenplants are also set to come up in Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

1.2 Industry Profile a. Origin and development of the industry The Indian Automotive Industry after de-licensing in July, 1991 has grown at a spectacular rate of 17% on an average for last few years. The industry has now attained a turnover of Rs. 1, 65,000 crores (34 billion USD) and an investment of Rs. 50,000 crores. Over of Rs. 35,000 crores of investment is in pipeline. The industry is providing direct and indirect employment to 1.31 crore people. It is also making a contribution of 17% to the kitty of indirect taxes. The export in automotive sector has grown on an average CAGR of 30% per year for the last five years and has reached a turnover of 8 billion USD. The export earnings from this sector are 3.5 billion US $ out of which the share of auto component sector 1.8 billion US$. Even with this rapid growth, the Indian Automotive Industrys contribution in global term is very low. This is evident from the fact that the passenger car segment has crossed the production figure of 1 million in the year 2005-06. Indians share is about 1.6% of world production as the total number of passenger car being manufactured in the world is 60 million against the installed capacity of 90 million. Similarly, export constitutes approximately 0.3% of global trade. It is a well accepted fact that the automotive industry is a volume driven industry and a certain critical mass is a pre-requisite for attracting the much needed investment in Research and Development and New Product Design and Development. R&D investment is needed for innovations which is the life line for achieving and retaining the competitiveness in the industry. This competitiveness in turn depends on the capacity and the speed of the industry to innovate and upgrade. No nation on its own can make its an industry competitive but it is the companies which make the industry competitive.
9

The most important indices of competitiveness is the productivity both of labor and capital. The concept of attaining competitiveness on the basis of cheap and abundant labor, favorable exchange rates, low interest rates and concessional duty structure is becoming outdated and not sustainable. In the light of above, it is felt that a greater emphasis is required on the development of the factors which can ensure competitiveness on a long term basis. The automotive sector with its deep backward (metals- steel, aluminum, copper etc. plastics, paint, glass, electronics, capital equipments, trucking warehousing and logistics) and forward (dealership retails , credit and financing, logistics, advertising, repair and maintenance, petroleum products, gas stations, insurance, service parts) linkages has been recognized and identified at different foras (Development Council of Automobile and Allied Industries, Planning Commission, National Manufacturing Competitiveness Council and Investment Commission) as a sector with a very high potential to increase the share of manufacturing in GDP , exports and employment. The sector is also seen as a multiplier of industrial growth. It helps in attaining two critical goals of the common minimum programme , that of increasing manufacturing output and of providing employment. Although indirectly but it also facilitates the third objective of increasing agricultural productivity through farm mechanization and the needs of agri produce transportation. The country with its rapidly growing middle class (450 million in 2007, NCAER report), market oriented stable economy, availability of trained manpower at competitive cost, fairly well developed credit and financing facilities and local availability of almost all the raw materials at a competitive cost has offered itself as one of the favorite destination for investment to the auto makers. These advantages need to be exploited in a manner to attain the twin objective of ensuring availability of best quality product at lowest cost to the consumers on the one hand and developing and assimilating the latest technology in the industry on the other hand. The Government recognizes its role as a catalyst and facilitator to encourage the companies to move to higher level of competitive performance. The Government wants to create a policy environment to help companies gain competitive advantage. The

10

government policies target to encourage growth, promote domestic competition and stimulate innovation. It is also felt that a general improvement in availability of trained manpower and good infrastructure is required for the sustainable growth of the industry. But these generalized efforts in development of the factors of production rarely produce competitive advantage. Only an advanced, specialized and industry specific initiatives can lead to competitive advantage. Keeping in view the above factors, the Government has launched a unique initiative of NATRIP to provide a specialized facility for Testing, Certification and Homologation to the industry. A similar initiative is required for creating a specialized institution in automotive sector for education, training and development, market analysis and formulation and dissemination of courses in automotive sector through ITIs and ATIs . The issues relating to fiscal incentives to the industry for R & D is under study of Mashelkar Committee and the issues pertaining to duty structures is being examined by the Hoda Committee. The concerns of the industry will be suitably presented in the above fora. It has been noticed that the Auto Industry has grown in clusters of interconnected companies which are linked by commonalities and complementarities. The major clusters are in and around Manesar in North, Pune in West, Chennai in South , Jamshedpur-Kolkata in East and Indore in Central India. The Department is envisaging in the Eleventh Five Year Plan period to create a National Level Specialized Education and Training Institute for Automotive Sector and to enhance the transportation, communication and export infrastructure facilities through concerned Ministries in and around these clusters. The Government will make attempts to eliminate all the barriers to local competition and organize the relevant Government Department and Educational and Research Institution in and around the clusters. The Government is confident that with the above interventions, the Industry will achieve the target of 75.3 billion US$ in turnover and 8.97 billion US$ of exports by the end of the Eleventh Plan period.

11

b. Growth and Present Status of the Automotive Industry At present, India is the world's

Largest tractor and three-wheel vehicle producer. Second largest two-wheel vehicle producer. Fourth largest commercial vehicle producer. Eleventh largest passenger car producer.

Production: According to the Society of Indian Automobile Manufacturers, the Indian automobile industry has reached double-digit growth for the past three years in a row. In 2006, the industry produced 10.9 million vehicles, an increase of 16.22% over 2005. In 2005, production grew 14.5% over the previous year. The production of the automotive industry is expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-08.

Exports: The cumulative annual growth rate of automotive exports during the period 2000-01 to 2005-06 was 32.92 per cent. Exports during 2006-2006 and 2007-2008 are expected to grow over 20 per cent.

Imports: Europe is the biggest importer of cars from India, while African nations largely account for the import of buses and trucks. China is most recently making inroads into this market. The SouthEast Asian region is the prime destination for Indian two wheelers.

Sales:

Passenger Vehicles: Growth in sales of passenger vehicles was 18.45% in 2006. This was almost three times the growth witnessed in 2005. Sale of passenger cars expanded by 20.0%. Export of passenger vehicles increased by 12.9%

Utility Vehicles: 12.4%

12

Two-wheelers, commercial vehicles and three-wheelers: Export growth at a rate of 24%, 26% and 72% respectively. Investment: Among the car companies that are investing in India are US automakers General Motors and Ford, Germany's BMW and DaimlerChrysler AG, France's Renault, Japan's Suzuki, Toyota and Honda, and South Korea's Hyundai.

There is also a boom in auto ancillary companies. India is an attractive outsourcing destination for global auto companies because of its strong engineering skills and low costs. Sourcing parts from India is 10-20% cheaper for US auto makers and about 50% cheaper for their European counterparts.

Auto Components:

This industry grew by over 28 percent between 1995 and 1998, and has been sustaining double digit growth, clocking 16 percent in 2004-05, and 15 percent in 2005-06. The Indian auto component industry is quite comprehensive with around 500 firms in the organized sector producing practically all automotive components; there are more than 10,000 firms total. Indias component industry now has the capability to manufacture the entire range of auto-components, for example, engine parts, drive, transmission parts, suspension and braking parts, electricals, body and chassis parts, equipment, etc

The Industry's Challenge:

Even though the automotive industry is robust, car manufacturers are complaining that the government's frequent change in policies is not encouraging the industry. Changing the policies and guidelines frequently severely hurts the companies plans. It also affects investment decisions in the country

13

C. Future of the Automotive Industry Current trends indicate a smooth run for the auto component industry. In fact, since 2000, this is one sector which has made a global mark and has been identified as a sunrise industry. The industry is transforming from being highly domestic-centric, to a force ready to face global competition.

The factors that will drive growth for the auto component industry are:

The growth expected in the domestic automobile industry will give a fillip to the auto component sector. The Indian automobile industry offers great potential considering the low penetration along with rising income levels and a rapidly growing middle class. These factors will see a boost in demand for vehicles, especially passenger cars and two wheelers. These two segments are estimated to grow at between 10-12% for at least the next five years.

The entry of global OEMs, making India as their manufacturing base, has given a big boost to the industry. For instance, Skoda plans to source parts for its European operations from its Indian base and raise indigenisation level for Indian models to 70%. This trend has also enabled Indian companies to gain a competitive edge in the global market. Further, the model of cluster-based development prominent in this sector will provide economies of scale.

Export of automobiles has also emerged as a key component of growth. Rising exports of Indian-made vehicles like M&Ms Scorpio model, Bajaj Autos Bikes, Tata Motors City Rover are indirectly increasing the demand for Indian auto components. Also, the export of India-made models of global OEMs like Hyundais Santro Xing and Suzukis Alto has given a boost to the industry.

De-regulation and the Governments policy initiatives have facilitated growth and focus has now shifted towards attracting foreign direct investments. Also, the Governments initiative towards road development will give a boost to demand for vehicles and indirectly auto components.

The Governments initiatives towards opening up channels of finance.

14

Investments coming in for research and development will keep the industry abreast of the latest technology.

Entry of global OEMs has transformed the Indian automobile and auto components landscape. India is being perceived as a major market for cars and two wheelers by global OEMs. Before the end of 2006, at least 30 new car models are expected to be launched by foreign OEMs. These factors portend a robust auto ancillary industry in India and the overall expected good growth will provide several opportunities for the emergence of new enterprises. Extending their reach to global markets is the pre-dominant outlook among the top auto component manufacturers in the country. The vision to compete globally comes from the inherent strengths the Indian auto component industry possesses. Some features are:

Cost reduction of 25-30% in production in the domestic market compared to overseas Low labour costs Designing, engineering and technical skills Established quality systems Availability of raw materials Adaptability to new technology Investments in research and development, coming in from global OEMs. This stands out positively in favour of India. Key players are not only willing to invest in R&D but also in mechanical and engineering operations. These investments are expected to increase in the near future Though India rides on these inherent strengths, a few risks exist that the

auto component manufacturers may have to confront.

A global slowdown can derail the prospects of the industry. Volatility in the prices of metals and other inputs could erode the industrys cost competitiveness. Further, global OEMs expect a commitment of 5-10% reduction in prices every year.

Tier I manufacturers taking up greenfield projects overseas. Intense competition from counterparts in other emerging economies may add pressure on margins of manufacturers.
15

The Indian auto component industry is poised for robust growth till 2010. There is a perceptive exuberance in the industry and growth estimates indicate a booming industry. Going by current trends in production and exports of auto components, indicate a doubling of the domestic auto component industry by 2010. The production of auto components could grow to US$22 bn by 2010. Similarly, Indias exports of auto components could grow to US$4.5 bn as compared to US$1.8 bn in 2005. Expected growth in production and exports of auto components is shown in the graphs below. This growth outlook implies opportunities for the small and medium enterprises. The overall trend is encouraging, but remaining competitive in this changing scenario will be the toughest challenge. The combination of low manufacturing costs along with quality systems would give an edge to companies in terms of pricing and quality. Expansion and diversification will help break into new markets. It would be imperative for these companies, which are largely based on traditional management practices, to imbibe technology in a big way. The SMEs can exploit these opportunities through joint ventures, collaboration and technical tie ups. Knowledge, specialisation, innovation and networking will determine the success of the SMEs in this globally competitive environment. Nissan Motors plans to export more than 250,000 vehicles manufactured in its India plant by 2012. General Motors announced its plans to export about 50,000 cars manufactured in India by 2012. By 2010,India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore toIndia. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motorswill be investing Rs 100 crore and Fordabout Rs 350 crore.

Future prospect of IndianFuture prospect of IndianAutomotive SectorAutomotive Sector

All in all, this bodes very well for the industry outlook over the forthcoming years. As a result, the job opportunities in this sector are going to remain huge, especially for trained professionals involved in key production areas. Foreign firms looking to capitalize on the local talent are likely to offer attractive remuneration and provide accelerated growth prospects for ambitious
16

individuals, and local firms hoping to grow their footprints are also likely to step-up their hiring and upward movement of staff.

The Government has prepared a ten-year Automotive Mission Plan (AMP) to draw a future plan of action and remove obstacles in the way of competition, such as that required infrastructure be put in place well in time to alleviate its constraining impact on the growth.

The plan envisages a tax holiday for the industry on investments exceeding $225,000, 100% tax deductions of export profits, and deductions of 50% on foreign-exchange earnings. It also calls for a one-stop clearance for foreign-direct-investment proposals in the sector and deductions of 30% of net income for 10 years for new industrial undertakings.

To bring down the cost of power and fuel, which accounts for 6% of the manufacturing costs in the auto sector, captive power generation would be encouraged to enable industries to access reliable, quality and cost-effective power. Future prospect of Indian Automotive Sectoris looking bright. Passenger car production in India isprojected to cross three million units in2014-15. Sales of passenger cars during 2008-09 to2015-16 are expected to grow at a CAGR of around 10%. Export of passenger cars is anticipated torise more than the domestic sales during2008-09 to2015-16. Motorcycle sales will perform positively infuture, exceeding 10 Million units by 201213. Value of auto component exports is likely toattain a double digit figure in 2012-13. Turnover of the Indian auto component

17

Chapter 2: Profile of the Organization

2.1 Origin of the Tata Motors Tata Motors Ltd. is one part of the business conglomerate, Tata Group, and was formerly known as TELCO (Tata Engineering and Locomotive Company). The other ventures of Tata Group include Tata Steel, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Taj Hotels, and so on. Headquartered in Mumbai, India, Tata Motors is a multinational corporation accounting for 70% cumulative market share in the domestic commercial vehicle segment. Today, the company is the worlds second largest manufacturer of commercial vehicles, worlds fourth largest truck manufacturer and worlds second largest bus manufacturer. It is a dual-listed company, which is traded on both the Bombay Stock exchange as well as the New York Stock Exchange.. Tata Motors was first established in 1935 as a locomotive manufacturing unit. The first commercial vehicle was manufactured in 1954, in collaboration with Daimler-Benz AG of Germany. In 1960, the first truck, quite similar to a Daimler truck, rolled out from the Tata factory in Pune. Ever since its launch, the truck became highly successful. However, the success of the commercial vehicles was just the beginning of the flourishing and booming future of Tata Motors. The company went ahead diversifying itself and took up other products as well. Apart from exporting heavy-duty trucks, the company decided to come up with lighter versions for the local market. Thus, began the production of the first LCV (Light Commercial Vehicle) model, Tata 407 in 1986.

In the early 1990s, the company began its expansion into the car market. Its first passenger vehicle was Tata Sierra, a multi utility vehicle that was launched in 1991. Tata came up with three other automobiles, namely, Tata Estate in 1992 (a station wagon based on the earlier Tata Mobile in 1989), Tata Sumo in 1994 (LCV) and Tata Safari in 1998 (Indias first SUV). After thoroughly analyzing the demand of the consumers, Ratan Tata, the current chairman of Tata Group, decided to build a small car, which was practically a new venture. Thus, in 1998, Indias first fully indigenous passenger car, Tata Indica was launched. It received an immediate success, since it was inexpensive and relatively easy to build maintain. The car was exported to Europe, to UK and Italy. The second generation of Indica, V2 was even more successful.

18

Indicas high success gave Tata Motors the financial power to take over Daewoo Motors in 2004. This gave the company an opportunity to give their brand international exposure. Today, Daewoos trucks are sold as Tata Daewoo Commercial Vehicle in South Korea. In 2005, the company acquired 21% share in Hispano Carrocera SA, earning the controlling rights of the company. In January 2008, the global automobile sector showcased the worlds cheapest car in the form of Tata Nano. Launched by Tata Motors, the car cost only Rs.1, 00,000 (US $2,500). In the March of that year, Tata Motors also acquired the Jaguar Land Rover (JLR) business from the Ford Motor Company, which included the Daimler and Lanchester brands.

Tata Motors formed 51:49 joint venture with Marcopolo of Brazil and came up with manufacturing and assembling fully-built buses and coaches targeting the developing mass rapid transportation systems. Tata and Marcopolo jointly have launched low-floor city buses that are widely used by Delhi, Mumbai, Lucknow and Bangalore transport corporations. Tata Motors has been continuously acquiring foreign brands to increase its global presence. The company operates in the UK, South Korea, Thailand and Spain. Today, Tata Motors has its auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Ahmedabad and Pune in India, and in Argentina, South Africa, South Korea and Thailand. It is further planning to set up more plants in Turkey, Indonesia and Eastern Europe. The Tata Group is a multinational conglomerate company headquartered in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in seven business sectors,27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels. The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the major international business figures in the age of
19

globality. The company is currently in its fifth generation of family stewardship. The 2009 annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The beginnings of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji Tata established a trading company dealing in cotton in Bombay (now Mumbai), British India. This was followed by the installation of Empress Mills in Nagpur in 1877. Taj Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji became the chairman of the group after his fathers death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till 1938. He was succeeded by Jahangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals (1939), Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent chairman of the group succeeded JRD Tata in 1991. Jahangir Ratanji Dadabhoy Tata (July 29, 1904November 29, 1993) was a pioneer aviator and important businessman of India. He was awarded India's highest civilian award, the Bharat Ratan in 1992. Early life and education J.R.D. Tata was born in Paris, France, the second child of Parsi father Ratanji Dadabhoy Tata and his French wife, Suzanne "Sooni" Brire. His father was a first cousin of Jamsedji Tata, a pioneer industrialist in India. As his mother was French, he spent much of his childhood in France and as a result, French was his first language. Tata also attended the French Foreign Legion. He attended the Cathedral and John Cannon School, Bombay. Biography J.R.D. Tata was inspired early by aviation pioneer Louis Bleriot, and took to flying. On February 10, 1929 Tata obtained the first pilot license issued in India. He later came to be known as the father of Indian civil aviation. He founded India's first commercial airline, 'Tata Airlines', in 1932, which in 1946 became Air India, now India's national airline. JRD Tata joined Tata & Sons as an unpaid apprentice in 1925. In 1938, at the age of 34, JRD was elected Chairman of Tata & Sons making him the head of the largest industrial group in India. For decades, J R D directed the huge Tata Group of companies, with major interests in Steel, Engineering, Power, Chemicals and Hospitality. Death He died in Switzerland on 29 November 1993 at the age of 89. The Indian Parliament was adjourned in his memory in a gesture rarely accorded to non-Members of Parliament. He is buried at Pre Lachaise Cemetery in Paris.
20

Ratan Naval Tata Ratan Naval Tata (born December 28, 1937, in Bombay, Bombay Presidency, British India) is the present Chairman of Tata Sons and therefore, Tata Group, India's largest conglomerate founded by Jamsedji Tata and consolidated and expanded by later generations of his family. He is also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and Tata Teleservices. Early life Ratan Tata was born into the famous Tata family, a prominent family belonging to Mumbai's poor Parsi community. He was born to [geeta] and amjad_ Tata. Ratan is the grandson of Tata group founder Jamsedji Tata. His childhood was troubled, with his parents separating in the mid-1940s when he was merely seven and his younger brother Jimmy was five years old. Their mother moved out and both Ratan and his brother were raised by their grandmother Lady Navaj baiEarly career Ratan Tata completed his Bsc degree in architecture with structural engineering from Cornell University in 1962, and the Advanced Management Program from Harvard Business School in 1975. He is a part of the Alpha Sigma Phi fraternity. He joined the Tata Group in December 1962, after turning down a job with IBM on the advice of JRD Tata Personal life Mr. Ratan Tata has a metallic blue Maserati and Ferrari California. He sometimes likes to fly his private Falcon Jet himself. He has never been married. He likes to wear Herms ties and matching handkerchiefs

21

2.2 Growth and Development of Tata Motors

The automobile industry was amongst the worst-hit sectors during the global meltdown. Automotive sales in North America, Continental Europe and the United Kingdom were particularly hard-hit in 2008-09, mainly due to the rise in fuel prices and the collapse of banking institutions. Sales of cars in the United States declined by 21.5% over the previous year while sales in Europe and the United Kingdom declined by 11.9% and 6.4% respectively. By contrast, the automotive sector in Asia experienced growth. China and India were the main drivers of this growth. India witnessed growth in passenger vehicle sales of 24.5% from 1.5 million units in 2008-09 to about 1.9 million units in 2009-10 in the domestic market. Commercial vehicle sales in India also registered a recovery of 40% because of increased execution of major infrastructure projects in the country. A robust product mix and involvement of suppliers and partners enabled us to achieve a greater operational efficiency, including a low break-even point.We posted a record net revenue and profit of ` 355.93 billion and ` 22.40 billion respectively during the year. Our domestic sales figures in India were 633,862 units a growth of 34.1% over the previous year. The sales of passenger vehicles increased by 25.3% to 260,020 units in this year. On the basis of consolidated (group) revenues in 2009-10, Tata Motors entered the Fortune Global 500, a closely- watched annual ranking of the worlds largest corporations with a rank of 442. We are also Indias 5th most valuable brand, with a brand value of US$ 3.28 billion, as per the 2009 edition of Indias Most Valuable Brands Study5Sustainable Supply Chain.Our approach to manage risks in the supply chain has been focussed towards maintaining relations based on mutual respect and equal opportunities with all our suppliers and partners. We follow set criteria for managing procurement and contractual purchases of goods and services in line with our general purchase and contracting conditions. We have initiated steps to include our supply chain in our initiatives on social accountability and environment management activities. Our endeavour is to partner with suppliers who bring expertise and innovative solutions to improve the environmental profile of our facilities, enabling employees to work in an environmentally conscious workplace. All our significant investments, including contracts with suppliers incorporate the aspects of human rights as stipulated by all national and state laws.We have undertaken an e-commerce initiative through the development of a business-to-business site with

22

the assistance of our subsidiary, Tata Technologies Limited, for electronic interchange of data with our suppliers in India. This has enabled us to have real time information exchange and processing to manage our supply chain effectively. Further, we use external agencies as third party logistic providers to reduce space and save costs.We are also exploring opportunities for global sourcing of parts and components from lower cost countries, and have embarked on a vendor management programme that includes vendor base rationalization, vendor quality improvement and vendor satisfaction surveys. In India, about 60% of our procurement in terms of value is from locally based vendors (within the same state of operation), many of who supply exclusively to Tata Motors and we ensure that we provide them with a steady source of income through our ever expanding operations.We are also working with our channel partners to reduce our climate change impact in our supply chain. Through our unique initiative, Green Dealership, we are creating awareness and promoting good environmental practices and management systems in our supply chain. The initiative also aims at disseminating information on energy conservation which could provide potential financial savings for our channel partners. We have estimated the carbon footprint of our tier-1 supply chain and have initiated a CO2 abatement plan at the supplier level. The following are some of our key milestones: Creating awareness amongst the vendors on climate change through a 20 minute infomodule on the science, impacts, causes and abatement of climate change and related effects Sharing energy conservation ideas that are working effectively across our locations Collecting environment and energy related data through a questionnaire from Tier-1 vendors and estimating their footprint attributable to operations related to Tata Motors.

We have initiated Product Development / Engineering programs for our suppliers that include 3D design visualization capability, enriching digital content by adding behaviour to digital models, knowledge based engineering tools and enhanced digital collaboration. A supplier portal, which facilitates close collaboration from design / development stage to production planning and scheduling was also introduced. Vendor Parks Creating shared value.We have established vendor parks in the vicinity of our manufacturing operations and vendor clusters have been formed at our facilities at Pantnagar and Sanand. This initiative is aimed at ensuring flow of component supplies on a real-time basis, there-by reducing logistics and inventory costs
23

as well as lowering uncertainties in the long-distance supply-chain.At Sanand, adjacent to our plant boundary, we have established a vendor park with all basic amenities in place which would house vendors supplying exclusively to Tata Motors. We aim to source more than 60% of our components from the vendor park, thus increasing our resource efficiency and decreasing our emissions due to reduction in logistics related travel. Our plan is to accommodate around 40 vendors in the park. In a sequential manner we plan to generate awareness amongst our vendors about issues like work-site safety, energy and water conservation and encourage them to take up activities to make their operations sustainable. A registered co-operative society will be formed by the vendors and there would be a management committee that will have representation from TML and the vendor co-operative society. Through this initiative we are aiming to generate employment for close to 4000 personnel.

Tata Nano In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the world at about 120,000 (US $3000). The city car was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Tata has faced controversy over developing the Nano as some environmentalists are concerned that the launch of such a low-priced car could lead to mass motorization in India with adverse effects on pollution and global warming. Tata had set up a factory in Sanand, Gujarat and the first Nanos were rolled out in summer 2009. Tata Nano Europa had been developed for sale in developed economies and it hit markets in 2010 while the normal Nano had hit markets in South Africa, Kenya and countries in Asia and Africa by late 2009. A battery version is also planned.

Tata Ace Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged
24

as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.By 2005, Autoline was producing 300 load bodies per day for Tata Motors.Ace is still a top seller for TML with 5 lakh units sold to date (June 2010).Ace has also been exported to several Asian, European, South American and African countries and all-electric models are sold through Chrysler's Global Electric Motorcars division. In Sri Lanka it is sold through Diesel & Motor Engineering(DIMO) PLC under the name of DIMO Batta.

Compressed air car Motor Development International of France has developed the world's first prototype of a compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to have "the backing of Tata". It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3 minutes. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town, but "the compressed air driving the pistons can be boosted by a fuel burner". OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it is said to run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. There are severe physical arguments pleading against those figures. In December 2009 Tata's vice president of engineering systems confirmed that the limited range and low engine temperatures were causing difficulties.

Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009. Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of Norway for US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,
25

and plans to launch the electric Indica hatchback in Europe next year.On 17 Sept 2010 Tata motors presented to the DTC (Delhi Transport corporation). Four CNG Electric Hybrid lowfloored Star-buses to be used for Commonwealth games. These are the first Environmentally friendly buses to be used for public transportation in India.

Research and Development We continue to increase our investment in research and development to support future innovation to ensure that we have the new products and technologies to maintain and grow our market positions to be the leaders in the locations we operate. During the year we have spent ` 11.71 billion on research and development activities, which was 3.29% of the net turnover. We have technologically upgraded our engine development centre by adding facilities such as a 440KW High Dynamic Transient Dynamometer with a state-of-the-art raw gas emission measurement and intake air-conditioning system for developing heavy duty commercial vehicle engines. We have also added a variety of testing facilities and equipment such as a sound quality studio, acoustic transmission loss test rigs for specific body panels, cost effective telemetry based measurement system for pass by noise, wheel force transducers to gather road load data in a single set up and have also indigenously developed in-house capability to conduct side pole impact crash tests. Innovations such as ultra violet tubes and portable oil skimmers have been successfully used to extend the useful life of coolants. We have developed the following new technologies/methods and processes for our range of passenger cars and commercial vehicles such as: Plastic balance gears Spoked flywheel Mass dampers on rear suspension arms Dual mass flywheel system Imported

During the year, we have filed for 150 patent applications, 44 design applications and 78 copyright applications. 6 patents were granted, 30 design and 34 copyrights were registered for applications filed in the earlier years.

26

2.3 Present Status of Tata Motors

The Securities and Exchange Board of India (Sebi) has said that the shareholders of Tata Motors who were allotted equity with higher dividend but lower voting rights in 2008 will continue to enjoy the same privileges.

The restrictions imposed by changes in the listing agreement will not alter the rights of those shareholders of Tata Motors who were allotted equity under the differential voting right (DVR) rules. The existing listed A ordinary shares will continue to have all their existing rights, Sebi said in a guidance sought by Tata Motors. Sebi in a detailed letter said that existing rights of the A ordinary shareholders would continue and the company could also make fresh issue by way of follow-on public issue, preferential allotment or institutional placement. Tata Motors in September 2008 had issued 6.42 crore A ordinary shares with higher dividend of Rs 0.5 per share but lower voting entitlement (10 A shares to one ordinary share). Over 84 per cent of these shares with higher dividend and lower voting rights were subscribed by the promoter group entities, followed by banks and institutional investors (12.77 per cent).

In July 2009, Sebi amended clause 28 A of equity listing agreement following which the companies were barred from issuing shares which may confer on any person superior rights as to voting or dividend vis-a-vis the rights on equity shares that are already listed. Following the changes in the listing agreement, Tata Motors sought a clarification from Sebi as to the rights of category A ordinary shareholders with regard to dividend, bonus, voting rights and among others.

27

2.4 Functional Departments of Tata Motors

HR & ADMINISTRATION PAY ROLL MAINTAINANCE: Maintenance of employee details like salary incentives, bonus, and performance records etc

RECRUITMENT DEPARTMENT: This department helps in assessing the needs of Labor force and recruiting the needs of Labor and giving the Orientation program to new employees.

HRD: Maintain good relationship with the employees Identifying the less motivated employees and providing the necessary motivation Accepting problems of the workers and helps in solving them

SUPPORT & FUNCTION

FRONT OFFICE In front office the following services are done: Giving Financial details Holding enquiries Solution of queries Customer Handlings Demonstration of vehicle BACK OFFICE In Back office the following services are done: Maintenance of all Finance formalities Giving intimation related to documents
28

 Giving intimation about the approval of Finance of Vehicle Giving intimation about the approval of insurance of Vehicle Giving intimation about the approval of Extended Warranty of Vehicle Proper scheduling of the vehicle which is delivering after PDI

MARKETINGS
In this department, the team leaders has planned about the marketing of their product.

In this department, it is to be decided that how the marketing has to be done in different cities because the taste and preferences of the people of different cities are different. So it all should be decided in this department. Marketing executives are seeks for prospective customers, they helps in generating enquiries and also these executives collects the documents and provide other services.

ACCOUNTS

Maintaining the expenditure of advertising and other products. Internal auditing Payments and receipts

29

2.5 Organization Structure and Chart of Tata Motors

CHAIRMAN OF THE BOARD Cyrus Mystery VICE CHAIRMAN OF THE BOARD Ravi Kant DIRECTOR Subodh Bhargava DIRECTOR Janshed Irani DIRECTOR N.Wadia DIRECTOR Sam Palia DIRECTOR Nasser Munjee DIRECTOR DIRECTOR Raghunath Majhelkar DIRECTOR V.K Jairath DIRECTOR Ranendra Sen DIRECTOR Car-Peter Forster CFO C. Ramakrishnan Secretary HS Head, Corporate Planning NK India Operations PT Human Resources PJ Legal RB CIO JB Internal Audit NP Financial Accounts and Tax PG Financial Business Plannings AG Strategic Sourcing BBP Advanced and Product Enginer TL Passenger cars RR Small Cars GW Commercial Vehicle RP Latin America Operations SK Communications PR Manufacturing Commercial Ve.. SB Engineering Systems ERC App and materials, Commercial.. UM

30

2.6 Product and Services of Tata Motors

Passenger cars and utility vehicle

Tata Sierra (Discontinued) Tata Estate (Discontinued) Tata Sumo/Spacio Tata Sumo Grande Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria Tata Venture Tata Iris

Concept vehicles

2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider
31

2007 Tata Elegante 2009 Tata Pr1ma 2010 Tata Versa 2010 Tata Essota 2011 Tata Pixel 2011 Tata Sunny

Commercial vehicles

Tata Ace Tata Super Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1623 (Rear Engined Low Floor bus chassis) Tata 1518C (Medium truck) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger transportation)

Tata Divo (Fully built luxury coach) Tata CityRide (12 20 seater buses for intra-city use) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (82)
32

Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (64) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo) Military vehicles

Tata LSV (Light Specialist Vehicle) Tata Mine Protected Vehicle (44) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 44, and 42 versions Tata LPTA 713 TC (44) Tata LPT 709 E Tata SD 1015 TC (44) Tata LPTA 1615 TC (44) Tata LPTA 1621 TC (66) Tata LPTA 1615 TC (42) Tata Winger Passenger Mini Bus

Tata Motors operates in four main automobile segments which cover the range of products in the automobile segments in India. Passenger Cars :( 31.8% of total units sold) This division also distributes Fiat branded cars in India. TTM has a presence in the compact car, mid-sized car and station wagon segment of the market in the form of Indica, Indigo and Indigo Marina and their variants. All the passenger cars are manufactured at plants at Pimpri and Chinchwad district in Maharashtra. Tata Motors is in the process of launching "Nano", an affordable family car with a price tag of Rs. 1, 00,000(around $2200) for the developing world. The project was delayed as the public opposition and political problems forced the management to abandon the plant site at Singur, West Bengal and shift it to Gujarat.
33

Utility Vehicles:(23.7% of total units sold) TTM entered the utility vehicle with the launch of Tata Sumo in 1994. Later it also entered SUV segment with the launch of Tata Safari in 1998. Light Commercial Vehicles:(23.9% of total units sold) TTM manufactures light commercial vehicles including pickup trucks, trucks and buses with gross vehicle weight (GVW) of between 0.7 ton and 7.5 tons. TTM entered this category by indigenously developing a low priced product Ace(mini-truck) with a 0.7 ton payload. Medium and Heavy Commercial Vehicles:(32% of total units sold) TTM manufactures medium and heavy commercial vehicles which include trucks, buses, dumpers and multi-axled vehicles with GVW of between 9 tons to 49 tons. In addition, through Tata Daewoo Commercial Vehicle Company Limited, or TDCV, a wholly-owned subsidiary in South Korea, TTM manufactures high horsepower trucks ranging from 220 horsepower to 400 horsepower, including dump trucks, tractor-trailers, mixers and cargo vehicles.

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai. Tata's global operations Tata Motors has been in the process of acquiring foreign brands to increase its global presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The rebranded Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today twothirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% controlling stake in Hispano Carrocera, a Spanish bus and coach manufacturer. Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano
34

Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo Debuting in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009 santhosh In 2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture fully built buses and coaches for India and other international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent, namelyIndia, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa.

35

2.7 Market Profile of Tata Motors

Economic slowdown resulting in adverse impact on the sales Automobile industry is a cyclical industry. It is substantially affected by general economic conditions. The demand is influenced by factors including the growth rate of the economy, easy availability of credit, increase in disposable income, interest rates, freight rates and oil prices. Lack of vehicle finance availability, lower growth on GDP and/or increases in fuel prices lead to a decline in the demand for automobiles. The decrease in freight rates due to slowdown of economy also leads to decrease in demand for commercial vehicles as expansion of fleet size is stopped. All these factors have affected the sales of TTM. In Feb 2009, the sales in commercial vehicles segment showed a decline of 53% as compared to that of Feb 2008.[8] Furthermore, the turnaround and integration of the Jaguar and Land Rover business, may also be affected as the operations in over 165 countries have to managed for the acquired companies.

Timely launch of new products and turnaround of Jaguar Land Rover Tata Motors bought Jaguar Land Rover from Ford Motor Company for $2.3 billion. A bridge loan from a syndicate of banks was used to finance the deal.[9] The success of the takeover depends on the ability of TTM to fully integrate with Jaguar Land Rover and turn around the Jaguar Land Rover business. The economic slump has led to a drop in sales of the cars and made turnaround of the business difficult. TTM had to refinance the bridge loans in order to adjust for the lower sales. TTM has lost market share in its passenger car and utility vehicles segment because of no new product launch. Although new variants have been introduced time and again, they have not been able to sustain the consumer interest as competitors have come up with new product launches. The Nano plant in Singur, West Bengal also had to be abandoned because of public protest and political complications. This has caused delays in the launch of Nano, which was originally scheduled to be launched in Feb 2009.

36

Currency and exchange rate fluctuations and its adverse effects on the earnings The value of the Indian Rupee(INR) compared to the U.S. dollar impacts the value of ADR shares of TTM and its business operations. Tata Motors stock is listed on the NYSE.An increase in the value of the INR translates to higher share price and dividend payments in the ADR shares all else constant. An appreciating INR can purchase more U.S. dollar. However, on the flip side, a strengthening INR adversely impacts the export earnings of TTM.The Companys exports constitute 9.8% of the revenues and imports constitute 4.6% of material consumption. TTM undertakes steps to hedge the currency risk for its operational requirements, but a weakening of the rupee against the dollar or other major foreign currencies adversely affects the cost of borrowing and consequently increase the financing costs. Additionally, with the acquisition of Jaguar Land Rover, around 66% of TTM revenues are contributed by this subsidiary. The fluctuations in the value of the British Pound against the dollar and other currencies such as the Indian Rupee would affect the net profits.

Competition Passenger Cars:

Maruti Suzuki India - Based in New Delhi, India. Maruti Suzuki India Limited is a subsidiary of Suzuki Motor (SZKMF) Corporation. It was formerly known as Maruti Udyog Limited. The Group's principal activity is to manufacture, purchase and sale of motor vehicles and spare parts. The Group is a subsidiary of Suzuki Motor Corporation. The other activities of the Group comprises of dealership network of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also provides services like framing of customized car policies, economical leasing of cars, maintenance management, registration and insurance management, emergency assistance and accident management. The product range includes ten basic models with more than 50 variants. The Group has operations in over 1220 cities with more than 2628 outlets and also exports cars to other countries. It also exports its products to Asia, Africa, and South and Latin America.

Hyundai Motor Company - Based in Seoul, South Korea, Hyundai Motor Company manufactures and distributes motor vehicles and parts worldwide. It offers passenger cars,
37

recreational vehicles and commercial vehicles, including light commercial vehicles; medium and heavy duty trucks; special vehicles, such as refrigerated van trucks, dry van trucks, wing body trucks, and trailer wing body/bottle carriers; medium and large size buses; and bare chassis.

Honda - Headquartered in Tokyo, Honda Motor Co., Ltd., together with its subsidiaries develops, manufactures and distributes motorcycles, automobiles, and power products worldwide. Its motorcycle business manufactures motorcycles, all-terrain vehicles, and personal watercrafts. Hondas motorcycle line consists of sports, business, and commuter models. Its automobile business offers passenger cars, multiwagons, minivans, sport utility vehicles and mini cars. The company also offers various financial services to its customers and dealers. In addition, it manufactures various power products, including power tillers, portable generators, general-purpose engines, grass cutters, outboard engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors. Honda sells its products through various outlets, wholesalers, and independent retail dealers.

Toyota - Headquartered in Toyota City, Japan, Toyota Motor Corporation operates in the automotive industry worldwide. It designs, manufactures, assembles, and distributes passenger cars, recreational and sport-utility vehicles, minivans and trucks, and related parts and accessories. It also offeres hybrid vehicles. Its products also comprise conventional engine vehicles, including subcompact and compact cars, mini-vehicles, passenger vehicles, commercial vehicles,auto parts, mid-size models and luxury models.In addition, Toyota offers sports and specialty vehicles, recreational and sport-utility vehicles, pickup trucks, minivans and cab wagons, trucks and buses. Further, the company provides finance to dealers and their customers for the purchase or lease of Toyota vehicles. Additionally, it is also involved in the design and manufacture of prefabricated housing and information technology-related businesses, including intelligent transport systems and an e-commerce marketplace, called Gazoo.com.

Utility Vehicles:

Maruti Suzuki India - Profile same as above.

38

Swaraj Mazda - Headquartered in Nawanshahar district, Punjab, the Company's principal activity is to manufacture and sale of commercial vehicles and spares for both goods and passenger applications.[14] The company has inked a technical assistance agreement with Isuzu Motors. The agreement is for the expansion of vehicle production capacity, new assembly line for Isuzu vehicles and also setting up of in-house facilities for the manufacture of luxury buses based on existing Mazda and Isuzu chassis.

Mahindra & Mahindra Ltd - The company manufactures a range of automotive vehicles, agricultural tractors, implements, and industrial engines. It is also involved in property development and construction activities. The company offers various multi-utility vehicles, light commercial vehicles, three-wheelers, and tractors as well as spare parts and related services. It also provides various services related to financing, leasing, and hire purchase of automobiles and tractors. In addition it also offers design and engineering services to the automotive, aerospace, and general engineering industries; and produces automotive components, as well as forgings, gears, steel, stampings, and special polymers. It is headquartered in Mumbai, India.

Light Commercial Vehicles:

Mahindra & Mahindra Ltd - Profile same as above. Ashok Leyland - Headquartered in Chennai, India, Ashok Leyland Limited Limited is involved in the manufacture and sale of commercial vehicles, and related components and accessories in India. The company offers various types of busses, trucks and other types of commercial vehicles; engines for industrial, genset, and marine applications; and defense and special vehicles. It also provides a range of spare parts for heavy engineering. It also offers design and engineering services to the automobile, power engineering, and aerospace sectors. In addition, it provides independent testing services in the areas of laboratory-based testing and data acquisition, simulation durability testing, NVH testing, road load data acquisition, safety testing and facilities management, and test laboratory consulting for auto original equipment manufacturers and their suppliers.

Medium and Heavy Commercial Vehicles:

39

Ashok Leyland - Profile same as above.

Joint ventures, subsidiaries, associates Tata Motors has joint ventures with Marcopolo, the Brazil-based maker of bus and coach bodies, and with Fiat Auto (to build a commercial vehicle at Fiat's facilities in Crdoba, Argentina). Other associates include:

Tata Daewoo Commercial Vehicle Company, a 100-per cent subsidiary of Tata Motors in the business of heavy commercial vehicles .

Tata Motors European Technical Centre is a UK-based, 100-per cent subsidiary engaged in design engineering and development of products.

Telco Construction Equipment Company makes construction equipment and allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction Machinery Company, Japan.

Tata Technologies provides specialised engineering and design services, product lifecycle management and product-centric information technology services.

Tata Motors (Thailand) is a joint venture between Tata Motors (70 per cent) and Thonburi Automotive Assembly Plant Co (30 per cent) to manufacture and market the companys pickup vehicles in Thailand .

Tata Cummins manufactures high horsepower engines used in the companys range of commercial vehicles.

HV Transmissions and HV Axles are 100-per cent subsidiaries that make gearboxes and axles for heavy and medium commercial vehicles.

TAL Manufacturing Solutions is a 100-per cent subsidiary that provides factory automation solutions and designs and manufactures a wide range of machine tools.

Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors has a 21-per cent stake . Concorde Motors is a 100 per cent subsidiary retailing Tata Motors range of passenger vehicles .

Tata Motors Finance is a 100 per cent subsidiary in the business of financing customers and channel partners of Tata Motors.
40

Chapter 3: Discussions on Training

3.1 My Work Profile as Sales Executive A part from retail sales, most sales today are between businesses. In this sector, you'll use problem-solving skills to understand, anticipate and meet your customers' needs, who can range from private individuals to governments and international businesses. As a trainee sales professional, we'll find many opportunities to gain professional training, recognized qualifications and skills we can readily transfer from one industry to another. We're likely to focus on building long-term relationships with customers rather than hitting oneoff targets. You'll work closely with customers, acting as an all-round business consultant to identify how they can make their business more profitable. Typically, we'll start out as a trainee sales executives or representative, selling products and services in a particular geographical area or business sector. We'll be responsible for developing existing customer relationships and finding new customers. At first under supervision of senior staff, our specific duties are likely to include:

Maintaining and developing relationships with existing customers via meetings, telephone calls and emails.

Visiting potential customers for new business. Making accurate, rapid cost calculations, and providing customers with quotations. Negotiating the terms of an agreement and closing sales. Gathering market and customer information and providing feedback on future buying trends.

Representing our organization at trade exhibitions, events and demonstrations. Negotiating variations in price, delivery and specifications with your company's managers.

Advising on forthcoming product developments and discussing special promotions. Liaising with suppliers to check on the progress of existing orders.
41

Checking quantities of goods on display and in stock. Recording sales and order information and sending copies to the sales office. Reviewing your own sales performance, against targets as we gain experience.

We'll work alongside other team members, such as buyers and packaging experts, as in many companies sales is now a team process. Hours and Environment Generally, our hours will be quite long. In theory our working week may be 40 hours, but when travelling time is taken into account we'll be doing many more. The pressure to hit targets also makes late finishes likely. As a trainee, we'll be office-based, but will also travel to meet clients and prospects. As we progress, we could well be working from home, transmitting orders, reports and sales analyses to our office. In view of all the travel we're likely to do, it's important to have a driving license. Skills and Interests To be a successful sales trainee we'll need to have:

The ability and desire to sell. Excellent communication skills. Strong commercial awareness A confident and determined approach. Resilience and the ability to cope with rejection. A high degree of self-motivation and drive. The ability to work both independently and as part of a team. The capacity to flourish in a competitive environment. Fluency in a foreign language may also be helpful.

42

Entry Personality, commercial awareness and communication skills are generally more important than academic qualifications, yet for some technical sectors a relevant degree is very useful. If we're a graduate of any subject we can enter a company training scheme. Although, business/management, advertising or media studies and modern European languages are generally most useful, while for f pharmaceutical and medical sales subjects like life science, dentistry, nursing, medicine or pharmacy top the list. Similarly, if we're selling technical products, computing, engineering or technology are best. If we're selling financial products, we should show evidence of commercial awareness. Generally, some experience in sales or customer service work could also be useful. Individual employers set their own entry standards and although many require a higher education qualification others welcome applications from people with all kinds of background. Training Our training will usually be in-house. we're likely to take a short induction course that covers the goods or services we'll be selling, as well as selling techniques and the methods used for sales administration. The skills training element may be organized by our employer or an outside specialist. After initial training, we'll 'shadow' an experienced representative and gradually take over some of their calls under supervision. We'll then be expected to get up to speed and to begin to meet your individual target. We may undertake further training and development to support your career development. You should aim to complete the programme offered by the Institute of Sales & Marketing Management (ISMM), which will enhance our career and salary prospects. ISMM qualifications are suitable whether we're about to embark on a new career or are an experienced professional. Although not imperative, professional qualifications can definitely help with our career development. Some senior sales professionals undertake postgraduate study in areas such as sales management, or take an MBA.

43

Opportunities As a sales professional, the more successful we are, the more we will earn and the greater our chances of promotion. Career development includes sales management and senior salesspecialists posts. Most companies have a promotion structure we could progress through, moving from trainee to sales executive, sales manager, regional sales manager and eventually sales director. Promotion is based on results, and rapid progress is a real possibility in sales. If we specialize in an area such as vehicle sales, we could become manager of a dealership. Sales skills are transferable across sectors, and we could move industries, or into specialist areas such as financial and medical sales if you have appropriate qualifications. We could even move out of sales altogether, and go into training and education or recruitment. We could also move into related career areas, such as advertising, marketing and public relations (PR). It's common to move companies for promotion or a higher salary. We could also set up your own company on the back of your sales skills.

44

3.2 Key Learnings Know about the Basic Automotive Technology. The Main Elements in the Car like Chassis, Engine, Transmission, Steering, Suspension, Safety and Comfort & Convenience. Exceeding Customers expectation through enablement of distribution network. How to judge customers though need assessment. WEP training helps to understand the consumer buying behavior study helps organizations to improve their marketing and selling strategies by understanding how customers think, feel, reason, and select between different alternatives(e.g.: brands, products and retailers). Prime ourselves to be, to do and to highlight because different type of customer have different needs. How to establish a emotional connect with every customer. How to Positioning because it is the act of occupying a distinctive place in the mind of the customer. It starts with a product. But it is not what you do to the product. It is what you do to the mind of the prospect. Know how to give 6 step demonstration of the vehicle. How to give proper answers about the questions or objections of the customer. Always ready to solve the quarries raised on customers mind. Reassuring the customer about the product that he or she has purchased a right product in every way. Last but not the least how to close the deal.

45

Chapter 4: Study of selected Research Problem

4.1 Statement of Research Problem Comparison of the Standing TATA MOTORS vis--vis The Industry TO COMPARE THE STANDING TATA MOTORS vis - vis THE INDUSTRY. I CONDUCTED A FINANCIAL ANALYSIS OF TWO OF ITS COMPETITORS MAHINDRA & MAHINDRA AND MARUTI UDYOG. The comparison is based on the detailed analysis of the financial statement on the lines of Liquidity, Solvency, Profitability and efficiency.

LIQUIDITY POSITION: Purpose of the Liquidity Ratios: The liquidity ratios help to determine a companys ability to meet its short-term liabilities. It can be in the form of the current ratio, liquid ratio, absolute ratio or the operating cycles. While the current ratio, liquid ratio and absolute cash ratio provide information about the companys ability to payoff the shot-term obligations, the operating cycle provides qualitative information about how quickly the company can convert its stock into cash.

Company Analysis:

Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity position, however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets and cash i.e. the most liquid asset, the least. Further, it has a negative operation cycle, which is primarily due to the high credit period provided to its creditors. While both TATA and M&M have similar inventory days M&M has an even lower operating cycle due to an even higher credit period. Maruti on the other hand has an operating cycle of 7 days, which is much higher as compared to the other two.

LIQUIDITY POSITION GRAPHICAL:

46

47

Inferences Drawn: We can, therefore conclude that TATA Motors has a favorable liquidity position which is neither too high nor too low, as an extremely high liquidity position would mean that the company is not using its funds well while a low liquidity position would imply that it would have difficulty in meeting its short term obligations.

SOLVENCY POSITION: Purpose of the Solvency Ratios: The solvency ratios are used to measure a companys ability to meet its long term obligation. The commonly used ratios to ascertain the solvency position of a company are Debt Equity Ratio and Interest Coverage Ratio.

Debt/Equity Ratio: The ratio gives the proportion of debt and equity in the total capital structure. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. Maruti on the other hand has a low Debt Equity Ratio only 9% i.e the company primarily uses its profits and reserves to find its assets.

Interest Coverage Ratio: A ratio used to determine how easily a company can pay interest on outstanding debt. The ratio is calculated by dividing a companys earning before interest and taxes (PBIT) of one period by the companys interest expenses of the same period.

PBIT/Sale: The lower the ratio, the more the company is burdened by debt expense. When a companys interest coverage ratio is 1.5 or lower, its ability to meet interest expenses may be questionable. An interest coverage ratio below 1 indicates the company is not

generating sufficient revenues to satisfy interest expenses. TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations. However, its ICR is much less as compared to its competitors. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Consequently its debt obligation is also higher than the other tow. Maruti Udyog.

SOLVENCY RATIO GRAPHICAL ANALYSIS

48

PROFIT MARGIN RATIO: This ratio measure how much out of every rupee of sales a company keeps as earnings. The two determinants of profit margin are Operating Profit and PBIT It is interesting to note here that while TATA Motors has a higher operating profit margin of 12% as compared to M&Ms 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&Ms 15%. This implies that a large portion of TATAs profit are from its operations while M&M has a considerable amount of non operating income. Maruti has the highest profitability among the three companies indicating that it has been most successful in controlling its costs.

Rate of Return Ratios ROTA: ROTA is an indicator of how profitable a company is relative to its total assets.
49

ROTA given an idea as to how efficient management is at using its assets to generate earnings. ROCE: It indicated the efficiency and profitability of a companys capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders earnings.

PROFITABILITY RATIO GRAPHICAL ANALYSIS

50

Inferences about the companies: ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Marutis ROCE is nearly 30%. It implies that there is potential in the industry that is not being fully exploited by TATA Motors. There is still considerable scope for the company to increase its profits by effectively utilization its assets. MARKET POSITION: PE ratio and MV/BV is lowest among the three companies for TATA Motors, despite the fact that its earnings and book value is higher than M&M. The reason as to why these ratios are low is clearly its low market value as competitors. The MV/BV Ratio for M&M is 5.2 which is much higher than TATAs 3.73 despite the fact that M&Ms BV per share is Rs. 148.11 which is lower than TATA Motorss BV of Rs. 198.66 per share.

51

CUSTOMER SATISFACTION SURVEY OF TATA MOTORS

ROLE OF THE SALES PERSON

52

 He/She should be neatly dressed He/She should have knowledge about various products Features Variants Colors Prices Sales promotion campaigns Competitor products, their features, prices, etc. Latest service and warranty policies Current availability Carry copy of ready reckoner Do not leave the customer unattended f or more than 3 minutes

CUSTOMER CARE TEAM:

Role of the Customer Care Manager:

Customer Care Manager is the leader of the customer care team. He is accountable for the sales satisfaction index of the dealership. The customer care manager ensures that every customer is properly followed up and feedback is recorded. Also the customer complaints are recorded and resolved as soon as possible to the level of satisfaction. The customer care executives report to the customer care manager.

Customer Care Executive Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at the showroom Post sales follow up. PSFs are done in order to get the first hand feedback from the customer about the experience that they had during the sales and delivery process.
53

 The first PSF is done within the 72 hours of delivery and the voice or exact wordings of the customer are recorded. The next PSF call is made after 15 days after the vehicle is delivered. The feedback form system is a very important tool to obtain customer s feedback on the experience that the customer had during the purchase of his/her car.

Steps to be followed after receiving customer complaints: Firstly customer care manager gives a control number to all complaints received and records the same in the customer complaints control register. Then customer acre manager gets in touch with the customer over the phone and expresses regret on the inconvenience faced by the customer Immediate action is taken to ensure that the customer complaint is resolved and writes a letter of apology. The customer care manager along with the concerned DSE, then visits the customer hands over the letter and takes satisfaction note from the customer Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd. And also files a copy of the same in the customer complaints register/file. Then the CCM discusses the customer complaints in the weekly meeting with the general manager on SSI with the entire showroom staff. Necessar y counter measures are taken to ensure that such complaints are not repeated in future.

All sales staff and managers review customer care activities on daily, weekly and monthly basis. The SSI review meet is conducted regularly.

According to TATA Motors A customer is the most important visitor on our premises He is not dependent on us,
54

We are dependent on him, He is not an interruption on our work, He is the purpose of it. He is not an outsider on our business, He is part of it We are not doing him a favor serving him, He is doing us a favor by giving us the Opportunity to do so

How you communicate? Your words 7% Your voice 35% Your body language 58%

Moments of truth Expectation---------------satisfaction---------------------reality If you get what you expected

Expectation---------------dissatisfaction----------------reality If you get less than you expected

Expectation---------------delight--------------------------reality If you get more than you expected

When customers dont complain they go somewhere else. Customers dont complain. They pass on their dissatisfaction to their colleagues, family, greengrocer, suppliers, consultants, managers, sports club, grandparents, neighbors, director, to you.

55

4.2 Statement of Research Objectives

Objective of the Study: To know the consumer satisfaction. Financial performance in automobile industry. Market performance Market position Economic and the industry environment. Cost saving initiatives. To find out the satisfaction level of people. To find out the awareness level of customer. To find the satisfaction amongst the customers of TATA Motors.

Sources of Data Collection: Primary Data: For my survey primary data have been used as a questionnaire to collect the data. Secondary Data: The secondary data has been collected from the following modes: Magazines Books Newspapers Data through internet sources

56

4.3 Research Design and Methodology

RESEARCH DESIGN: Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure.

A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study.

The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data.

RESEARCH PLAN

Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.

Sampling Plan: A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.

STEPS IN SAMPLING PLAN:

Sampling Frame:
57

The list of sampling units from which sample is taken is called sampling frame. City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result.

SAMPLING SIZE:

Total sample size is 100. The following sample size according to area wise is as follows:

10 BADHNATH CHOWK 20 GANDHI PUTLA 10 MAHAL 10 PARDI 20 WARDHAMAN NAGAR 10 SADAR 20 SITA BARDI

SAMPLING PROCEDURE:

The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtain the sample of convenient.

58

Chapter 5: Analysis
5.1 Analysis of Data

Analysis: The important factors and datas collected were sequentially analyzed and graphed

Customer Survey Data Analysis:

Q1. How long have you been associated with Tata Motors No. of Respondents Percentage From 1 year 0% From 1 3 years 0% From 3 5 years 0% From 5 10 years 80% Above 7 years 20%

Q2. (i) Knowledgeable Salesperson No. of Respondents Percentage Strongly Disagree 14% Disagree 0% Neither Disagree Nor Agree Agree 86% Strongly Agree 0%

86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. Q2 (ii). Employees spent enough time with you before sales No. of Respondents Percentage Strongly Disagree 0%
59

Disagree 0% Neither Disagree Nor Agree 0% Agree 64% Strongly Agree 36%

64% agreed that sales persons spent enough time with them before the sales, while 34% strongly agreed that the sales persons spent enough time with them before sales. Q2 (ii). Employees spent enough time with you during the sales No. of Respondents Percentage Strongly Disagree 0% Disagree 4% Neither Disagree Nor Agree 0% Agree 62% Strongly Agree 34% 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this. Q2 (ii). Employees spent enough time with you after the sales No. of Respondents Percentage Strongly Disagree 0% Disagree 22% Neither Disagree Nor Agree 0% Agree 54% Strongly Agree 26% 54% agreed that sales persons spent enough time with them after the sales, while 26% strongly agreed that the sales persons spent enough time with them during sales and only 22% disagreed with this. Q2 (iii). Display of Merchandize No. of Respondents Percentage Strongly Disagree 0% Disagree 0%
60

Neither Disagree Nor Agree 0% Agree 94% Strongly Agree 6% 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. Q2 (iv). Availability of the Product No. of Respondents Percentage Strongly Disagree 0% Disagree 4% Neither Disagree Nor Agree 0% Agree 91% Strongly Agree 5% 91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this. Q2 (v). Variety/Selection of Merchandize No. of Respondents Percentage Strongly Disagree 0% Disagree 6% Neither Disagree Nor Agree 0% Agree 87% Strongly Agree 7%

87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. Q.2 (vi) Vehicle in Good Condition No. of Respondents Percentage Strongly Disagree 0% Disagree 2% Neither Disagree Nor Agree 0% Agree 82%
61

Strongly Agree 16% 82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this. Q.2 (vii) Prices Are Affordable No. of Respondents Percentage Strongly Disagree 0% Disagree 0% Neither Disagree Nor Agree 15% Agree 21% Strongly Agree 64% 64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this Q2 (viii). Attractive Discounts Offered No. of Respondents Percentage Strongly Disagree 0% Disagree 11% Neither Disagree Nor Agree 0% Agree 55% Strongly Agree 34% 55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive. Q2 (ix). Dcor Of The Waiting Area Is Pleasing No. of Respondents Percentage Strongly Disagree 0% Disagree 0% Neither Disagree Nor Agree 0% Agree 80% Strongly Agree 20% 80% agreed that the dcor of the waiting area was pleasing while 20% strongly agreed that the dcor of the waiting area was pleasing
62

Q2 (x). Offered A Test Drive No. of Respondents Percentage Strongly Disagree 0% Disagree 20% Neither Disagree Nor Agree 0% Agree 74% Strongly Agree 6% 74%agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. Q2 (xi). Post Sales Follow Up Done Regularly No. of Respondents Percentage Strongly Disagree 0% Disagree 15% Neither Disagree Nor Agree 0% Agree 59% Strongly Agree 26% 59%agreed that the post sales follow ups are done regularly, 26% strongly agreed and15%disagreed with this. Q2 (xii). Responds To complaints Quickly No. of Respondents Percentage Strongly Disagree 0% Disagree 9% Neither Disagree Nor Agree 12% Agree 61% Strongly Agree 18% 61% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 9% disagreed with this.

Q2 (xiii). Service At TATA Service Station Is Excellent

63

No. of Respondents Percentage Strongly Disagree 0% Disagree 4% Neither Disagree Nor Agree 0% Agree 82% Strongly Agree 14% 82% said that the service at TATA service station is excellent, 14% strongly agreed while only 4% disagreed with this. Q2 (xiv). Careful With Personal Information

No. of Respondents Percentage Strongly Disagree 0% Disagree 8% Neither Disagree Nor Agree 0% Agree 85% Strongly Agree 7% 85% agreed that yes they were careful with personal information, strongly agreed with this and8% neither agreed nor disagreed. Q2 (xv). All The Commitments Are Fulfilled No. of Respondents Percentage Strongly Disagree 0% Disagree 0% Neither Disagree Nor Agree 0% Agree 6% Strongly Agree 94%

94% strongly agreed that all the commitments were fulfilled and 6% agreed with this Q2 (xvi). Value For Money No. of Respondents Percentage Strongly Disagree 0% Disagree 0%
64

Neither Disagree Nor Agree 0% Agree 2% Strongly Agree 98% 98% strongly agreed that TATA provides value for money while 2% agreed with this. Q3 Are you aware of the following facilities provided by TATA? (i). TATA insurance YES NO No. of Respondents Percentage 98% 2%

98% said yes that they are aware about TATA insurance while only 2% said that they were not aware. Q3 (ii). Extended warranty YES NO No. of Respondents Percentage 97% 3%

97% said they were aware about extended warranty and 3% said that they did not know about this. Q3 (iii).True value YES NO No. of Respondents Percentage 98% 2%

98% said they were aware about true value and 2% said they were not aware Q3 (iv). TATA Motors Finance YES NO No. of Respondents Percentage 75% 25%

75% said that they were aware about TATA Motors finance and 25% said that they were not aware of it. Q3 (v).Autocard No. of Respondents Percentage
65

YES NO

84% 16%

84% said that they were aware about autocard and 16% said that they were not aware of it. Q3 (vi). Genuine Accessories YES NO No. of Respondents Percentage 84% 16%

85% said that they were aware of genuine accessories available and 15% said they were not aware. Q4.What is your overall opinion about TATA? Choice Very bad Bad Neither bad nor good Good Very good No. of Respondents Percentage 0% 0% 0% 4% 96%

96% said that there overall opinion about TATA was that it is very good while 4% said that it is good. Q5.How likely would you recommend TATA? Recommend Very Unlikely Unlikely Neither Unlikely nor Likely Likely Very Likely No. of Respondents Percentage 0% 0% 0% 10% 90%

90% people said they would very likely recommend TATA to other people and 10% said they would likely recommend TATA to others.

66

Comparison of the Standing TATA MOTORS vis--vis The Industry

FINANCIAL PERFORMANCE AS A MEASURE OF OPERATIONAL PERFORMANCE: In a challenging environment, the Company has been able to marginally grow its revenues and profits. While the Company's profit after tax improved to Rs.2,028.92 crores from Rs.1,913.46crores in the previous year, the margins were under pressure mainly due to the rising input costs and lower volume growth. Turnover, net of excise duties increased by 4.6% to another record high of Rs. 28,730.82 crores from Rs.27, 470.03 crores in FY 2006-07.The total number of vehicles sold during the year increased by 0.9% to 585,649 units from 580,280 units in FY 2006-07.The domestic volumes increased by 0.8% to 530,990 units from 526,806 units in FY 2006-07, while export volumes increased by 2.22% to 54,659 units in FY 2007-08 from 53,474 units in FY 2006-07. Net Raw Material consumption inclusive of processing charges increased by 6.2%to Rs.21, 082.10 crores in FY 2007-08, from Rs.19,849.04 crores in FY 2006-07. Material Cost as a % of net turnover has increased to 73.4% from 72.3% for the last year. This was largely a result of increase in prices of steel, aluminum, nickel, copper and natural rubber. However, the Company managed to lower the impact through its ongoing cost reduction program with initiatives like global sourcing, vendor rationalization and value engineering. Employee Cost increased by 12.9% during the year to Rs. 1,544.57 crores from Rs. 1,368.09 crores registered in the previous year mainly in line with trends in industry and economy. The manpower increased marginally to 23,230 from 22,349 with increases also in flexible manpower. Manufacturing and Other Expenses increased by 2.4% to Rs. 3,011.83 crores in FY 200708 from Rs.2,940.53 crores in FY 2006-07.These were 10.5% of net turnover for the year as compared to 10.7% for the previous year. Profit before depreciation, interest and tax increased by 0.5% to Rs.3,575.50 crores fromRs.3,557.56 crores in FY 2006-07.The margin decreased to 12.4% from 13% in FY 2006-07.
67

Depreciation (including product development expenditure) for 2007-08 increased by6.8% to Rs. 716.66 crores from Rs.671.31 crores in FY 2006-07 on account of increase in fixed assets. It represents 2.5% of net turnover as compared to 2.4% for FY 2006-07.

Net interest cost decreased to Rs. 282.37 crores in FY 2007-08 from Rs.313.07 crores in FY 2006-07. Despite increase in interest rates and increase in capital expenditure, the reduction was mainly on account of significant reduction in the Company's vehicle financing portfolio (on account of securitization), better working capital management, interest earnings and larger capitalization of interest in line with the increase in capital expenditure.

EXPECTED GROWTH by 2015-16

68

PLAYERS IN THE INDIAN INDUSTRY The Indian auto industry is highly competitive with a number of global and Indian auto companies present. Hence, we have conducted an Inter company analysis of Tata with Mahindra and Mahindra and Maruti Udyog, to get an idea of the companys position (operation and profitability) vis a vis its competitors.

INTER COMPANY ANALYSIS: Key Players in the Indian auto industry Passenger Cars and CVs

The largest Player in the Indian industry plans to launch new and exciting products in the Indian markets, including the 100,000 cars.

TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010. The third largest passenger car manufacture in India and one of the largest exporters of vehicles. Has establishes India as one of its manufacturing bases in the world, is planning to invest heavily to boost exports from India. Maruti Suzukis JV in India and the largest passenger car manufacturer in India. One of the leading players in the Indian premium cars segment. One of the largest players in the UV/ MUV segment. One of the leading players in the Indian premium cars segment Plans to enter the small car segment by re-launching the matiz. The 2nd largest CV manufacturer in India. Other global players who are in India have plans for India includes VOLVO, DAIMLER CHRYSLER, BMW and NISSAN MOTORS.

69

5.2 Summary of findings

Limitation of the study: I will have to rely upon the information get from secondary sources (Balance sheet, Profit & Loss Account and Cash Flow) and given by respondents, which may not be fully true. This study will be limited to only some areas of Nagpur District of Maharashtra. It is only for short period of time. Lack of professional approach since researcher is a student. The sample size is only 100 so the sample may not be truly representative of the Nagpur Population.

FIELD WORK:

I have collected the data through medium called questionnaire collecting the responses from 100 people in all. I had done my field work in the following area: SITABARDI, MAHAL, WARDHAMAN NAGAR, SADAR, GANDHI PUTLA, PARDI, BADHNATH CHOWK

I started my project very first educating the respondents about my entire project, and ask them to cooperate with me. Mostly all the respondent were aware of this type of surveys. So I didnt face any type of difficulty during my project in the process of explaining and taking there responses on the questionnaire.

70

Chapter 6 :Summary and Conclusion

6.1 Summary and Learning Experience Project involves: Financial performance in automobile industry Market performance Cost saving initiatives Introduction about TATA Motors Procedure followed by TATA Motors for catering to the needs and queries of the customers. Quantitative research Awareness regarding the facilities provided by TATA Motors. Overall opinion about TATA Motors.

Scope of the Study: To find the Market position For Economic and the industry environment. This study would be useful for companies to know what people perceive and thinking about Tata Motors and its products. This study would be useful to other students as a secondary data. This study would be useful to for m strategies.

Learning Experience: Financial performance of a company Different customers have different thinkings and mentality Knowledge about different company financial performance Knowledge about automotive industry and their working environment Research and Development and income from capital gains Profit before Tax (PBT) and Profit after Tax (PAT) of the Company The Companys Balance Sheet includes Receivables and loans.

71

6.2 Conclusions and Recommendations

RESULT/ CONCLUSION: A detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity position, however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets.

TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt.

TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations.

However, its ICR is much less as compared to its competitors. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Maruti Udyog TATA Motors has a higher operating profit margin of 12% as compared to M&Ms 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&Ms 15%.

ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Marutis ROCE is nearly 30%. It implies that there is potential in the industry that is not being fully exploited by TATA MOTORS

72

CONCLUSION OF CUSTOMER SATISFACTION SURVEY: On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the peoples car as it is satisfactory on all other parameters: knowledgeable sales persons, employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good.

86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this.

60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. 91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this. 87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. 82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this. 64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this.

55% agreed that the discounts offered are attractive, 34% strongly agreed with this
73

while% disagreed and said that the discounts offered were not attractive. 80%agreed that the dcor of the waiting area was pleasing while 20% strongly agreed that the dcor of the waiting area was pleasing

74% agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. 59% agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this. 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this.

82% said that the service at TATA service station is excellent, 14% strongly agreed while only 4% disagreed with this. 85% agreed that yes they were careful with personal information, Strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agreed that all the commitments were fulfilled and 6% agreed with this. 98% said yes that they are aware about TATA insurance while only 2% said that they were not aware.

Recommendations Increase the profit margin during the continuous financial years. Improving the marketing Strategies. Analysis the business strategies of competitors. Making the decision to capture the rural market. More test drives should be offered. Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer. Should put in more efforts to promote Tata Motor Finance, Auto card and Accessories.

74

QUESTIONNAIRE

Being an esteem customer of TATA Motors Ltd. you are requested to take out a few minutes and fill the following QUESTIONNAIRE Name: Address: _______________________________________________________________ ___________________________________________ Gender: Male Age: Below18 Female Pin Code____________

18-25

26-35

36-50

51 and above

Occupation: Service Business

Student

Housewife

Q.1) How long have you been associated with TATA Motors? Q.2) How would you rate TATA Motors on the following parameter?

Strongly Disagree i. ii.

Disagree

Neither agree nor disagree

Agree Strongly agree

iii. iv. v. vi. vii. viii. ix. x. xi. xii.

Knowledgeable sales person Employees spent enough time with you: Before Sales During Sales After Sales Display of Merchandise is Attractive Availability of the Product Variety/Selection of Merchandise Vehicle in good condition Prices are affordable Attractive discount offered Decor of the waiting area is pleasing Offered a test drive Post sales follow-ups are done regularly Responds to complaint quickly
75

xiii. xiv. xv.

All the commitments are fulfilled Service at service stations are excellent Value for money

Q.3) Are you aware of the following facilities provided by Tata Motors? FACILITIES i. ii. iii. iv. v. vi. Tata Motors insurance Extended warranty True value Tata finance Autocard Genuine accessories Yes No

Q.4) What is your overall opinion about Tata Motors? Very Bad 1 Bad 2 Neither Bad nor Good 3 Good 4 Very Good 5

Q.5) How likely would you recommend Tata Motors? Very Unlikely 1 2 3 4 Very Likely 5

Date:

Sign:

76

ANNEXURE Summarized Balance Sheet

In Millions of INR (except As of for per share items) 31-03-2009 52.00 Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable Trade, Net Receivables - Other Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets 52,422.20 34,340.20 1,137.20 24,440.40 124,520.60 786.00 12,180.60 52,422.20

As of 31-03-2008 65.30 2,762.80 10,415.30 47,692.10 .. 47,692.10 33,923.10 862.50 21,040.80 113,933.80 109,262.50

As of 31-03-2007 76.50 8,067.80 14,383.70 34,709.60

As of 31-03-2006 4,873.30 26,982.80 26,982.80 18,359.40

34,709.60 26,303.60 467.70 14,223.30 90,087.90 86,228.30

18,359.40 21,353.60 391.90 11,618.70 83,579.70 74,415.30

Property/Plant/Equipment, Total 150,721.20 -Gross Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Total Assets 6,968.50 3,114.10 50,390.00 32,459.80 369,279.30

7,239.10 2,990.00 22,358.90 5,638.40 271,015.40

7,034.10 2,355.10 24,133.60 4,442.20 202,158.20

289.90 606.40 21,103.80 1,364.00 159,245.40

77

Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations - - Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Total Preferred

55,061.30 14,595.00 95,462.30 14,970.70

45,474.00 8,323.70 57,752.60 5,757.50

30,316.30 7,437.50 37,475.10 1,465.30

24,659.90 7,115.80 30,697.50 1,108.50

3,909.30 183,998.60 58,792.80

3,470.70 120,778.50 40,235.10

4,198.80 80,893.00 27,203.30

4,105.70 67,687.40 25,632.70

58,792.80 169,225.80 6,119.90 5,634.80 9,469.10 264,015.20

40,235.10 103,745.20 5,983.60 4,054.10 8,595.20 179,646.50

27,203.30 66,143.70 6,135.20 3,303.80 3,607.10 121,142.40

25,632.70 57,438.70 5,390.90 2,330.90 1,794.30 102,836.20

Stock, - - - -

Preferred Stock - Non Redeemable, Net Common Stock, Total

------

3,855.40

3,854.10

3,828.70

3,617.90

78

Additional Paid-In Capital

39,778.60

39,711.00 36,326.80

38,773.60 23,897.00

28,143.30 14,033.90

Retained Earnings (Accumulated 43,718.70 Deficit)

Treasury Stock - Common

...........

Other Equity, Total Total Equity

17,911.40 105,264.10 369,279.30

11,477.00 91,368.90 271,015.40

14,516.50 81,015.80 202,158.20

10,614.10 56,409.20 159,245.40

Total Liabilities & Shareholders' Equity Shares Outs - Common Stock ---Total common outstanding shares 385.49 385.36 382.82 361.74

BIBLOGRAPHY Books: 1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition) 2. Marketing Management, The McGraw.Hill Company Rajan Saxena III Addition. 3.Berman, Berry and Joelr Evans (oct-1997) Retail Management: A Strategic approach 8th edition MAGAZINES: A) OUTLOOK BUSINESS (FEB, 2009) B) BUSINESS STANDARD (April-July 2009) C) 4PS OF BUSINESS AND MARKETING (June 2009) D) BUSINESS TODAY - Pick and Choose E) BUSINESS TODAY - Tata Motors to bring Jaguar, Land Rover to India.

79

INTERNET: Tata Motors' Official Website Wiki - Tata Motors Ltd http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car http://www.capitaline.com http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow htttp://www.moneycontrol/com/tata-group/tatamotors http://www.yahoofinance.com/tatamotors http://www.carwale.com/research/cars/tata.

80