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INTRODUCTION
Approximately 66% of the goods and 87% of the passenger traffic in the country moves via road. Past trends have shown that CV demand is closely correlated with GDP growth rate (more strongly with the Index of Industrial Production, IIP) of the country and therefore, it is believed that a growth or slowdown in CV demand is harbinger of an upturn or down turn in the economy respectively.
STUCTURE OF INDIAN COMMERCIAL INDUSTY The Indian commercial vehicle market is segmented on the basis of gross vehicle weight(GVW) .Vehicle less than 7.5 ton are classified as LCVs, while the heavier ones are termed as M/HCVs.
HCVs heavy commercial vehicle MCVs- medium commercial vehicle LCVs- light commercial vehicle In terms of usage commercial vehicle may be termed as good carriers and passenger carrier. Among the passenger carriers in the less 7.5 ton GVW segment, those with
EICHER MOTORS LIMITED FORCE MOTORS LIMITED TATA MOTORS LIMITED SWARAJ MAZDA LIMITED
MAHINDRA & MAHINDRA LIMITED ASHOK LEYLAND VEHICLE GOVERNMENT VOLVO FACTORY
COMMERCIAL VEHICLE PRODUCTION TRENDS (NO. OF VEHICLES) Category 2003-04 2004-05 353,703 2005-06 391,083 2006-07 519,982 2007-08 549,006 2008-09 417,126
28.60%
10.57%
32.96%
5.58%
-24.02%
Category
2003-04
2004-05 29,940
2005-06 40,600
2006-07 49,537
2007-08 58,994
2008-09 42673
71.75%
35.60%
22.01%
19.09%
-27.67%
TATA MOTORS
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70, 938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 23,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics."
Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nusserwanji Tata and J. Baker. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Dailmer-Benz AG of Germany. Tata Motors launches its first truck in collaboration with Mercedes-Benz
Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat power trains. The company is establishing a new plant at Sanand (Gujarat). The companys dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain.
Tata Motors has several joint venture, subsidiary and associate companies.
subsidiaries. Telco Construction Equipment Co. Ltd. (Telcon). HV Axles Ltd. (HVAL). HV Transmissions Ltd. (HVTL). TAL Manufacturing Solutions Ltd.
(TAL). Sheba Properties Ltd. (Sheba) Tata Daewoo Commercial Vehicle Company Ltd
(TDWC). Concorde Motors (India) Ltd. (Concorde). Hispano Carrocera S. A. (HC). Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL). Tata Motors European Technical Centre.
Tata Motors Finance Limited. Tata Motors Thailand.
Tata Novus is one of the best selling commercial trucks in South Korea.
Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is
TaTa Motors Bellad Engg Pvt ltd, Haveri the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck.
HISPANO CARROCERA
Hispano Carrocera
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors became acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it controlling rights of the company. TATA XENON
In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in
Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008
Tata low floor buses are also used as public transportation buses in Delhi, Mumbai, Pune, Udaipur and Indore.
TATA ACE
WORLD TRUCKS
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks. In their power, speed, carrying capacity, operating economy and trims,
they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost.
The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle
components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing
TaTa Motors Bellad Engg Pvt ltd, Haveri and service operations.
BUSINESS UNITS :
Tata Motors Ltd. works as two separate business units:a) Commercial Vehicle Business Unit- Tata Motors is a leader in this segment which caters to the needs of commercial applications with vehicles such as trucks, tippers, trailers, buses, defence vehicles etc. These vehicles have customers which are transporters, businessmen, constructors, defence organizations etc and they are people who are concerned about the performance of the vehicle more than how the vehicle looks. These people are concerned about the payload, mileage, and finance options available before going for the vehicle. Tata Motors boasts of vehicles in the sub 1 tonne to 40 tonne GVW category. The commercial vehicle unit also boasts of 375 dealerships, more than 1000 sales and service centres. Tata Motors has come up with new initiatives in the recent past which include Reconditioning service, AMC and 24 hour customerassistance centre.
b)
Passenger Vehicle Business Unit- Tata Motors forayed into this segment a few years back and since then have taken major strides in the segment. The company is coming up
c) with new vehicles and is gaining the market share at a fast pace. So and so that it
has become a threat to the already established players within some years of its arrival.
Ashok Leyland
Volvo
Hindustan Motors
Swaraj Enterprise
Eicher
Tata Motors
Force Motors
Ashok Leyland Volvo Hindustan Motors Swaraj Enterprise Mahindra & Mahindra Eicher Tata Motors Force Motors
HINDUSTAN MOTORS Hindustan Motors Ltd. produces RTV buses comprising school buses, custommade buses, and passenger buses. MAHINDRA & MAHINDRA LTD. Mahindra & Mahindra ltd. has earned substantial popularity in the India bus industry apart from the heavy duty jeeps and luxury cars produced by it. Mahindra & Mahindra Ltd. is the sole manufacturer of Tourister 15
ASHOK LEYLAND
Ashok Leyland is the most prominent players in the manufacture of public utility as well as special purpose buses. It fulfills a large chunk of the demand for buses in India bus industry and the list of its range of buses includes:
Vestibule Bus Cheetah BS-III Panther BS-II Viking BS-II Stag-BS II Lynx BS-II Viking CNG BS-III Ashok Leyland is also engaged in the production of some special purpose buses as the Airport Tarmac Coaches, Double deckers with immense capacity for the accommodation of passengers. The other categories include 12 M Bus-II, only 12-M Bus and Viking SLF BS-III and so on.
TATA MOTORS also ranks high among the major players in the India bus industry, engaged in the production of buses of the category of Starbus as well as Globus buses. The Starbus range includes
Starbus Standard, Starbus School, Starbus Deluxe Starbus Low Floor SFC 407 Turbo Mini-Bus
LPO 1616 TC Luxury Bharat Stage-II Bus, LPO 1510 Bharat stage II Bus
certain margin money is given to them per vehicle. This margin money may differ according to the changing prices etc. the TASSes work independently to the extent of hiring their own manpower, managing basic expenses like electricity
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHS
The internationalization strategy of the company. The global acquisitions and joint ventures are expanding Tata Motors global market. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer,
TaTa Motors Bellad Engg Pvt ltd, Haveri in other markets. Joint venture of Tata Motors with Marcopolo of Brazil.
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.
Large consumer base in the Indian Subcontinent namely Bangladesh, Bhutan, Sri Lanka and Nepal. And a growing consumer base in Italy, Spain and South Africa.
Good service network across the country. Tata motor has a vast network of service centres known as Tata Authorized Service Stations (TASSes). Tata authorized service stations, more than 500, present across the company.
Easy availability of spare parts. Large presence of domestic brands in India. Broad based presence of Tata Motors in all the segments of commercial vehicle, especially in H/MCV segments.
WEAKNESS
Tata has not been able to capitalize on its global presence. Tata itself relies on its revenues in India and relies of its subsidiaries revenues in the international market. Tata sells almost 90% of the cars under its brand name in India; on the other hand its subsidiaries sell about 90% of their automobiles in the international market.
OPPORTUNITIES
Tata Motors have some distinct advantages in comparison to other multinational competitors. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies.
There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of the Indian market.
THREATS
Many foreign companies are entering in domestic markets which are giving tough competition to Tata Motors. For example Volvo. Chinese company KING LONG is also planning to enter in Indian market.
Earlier, a policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India and mere car assembling operations were not welcomed. An Indian cabinet panel has since announced a new automobile policy that sets fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an automaking subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market.
company.
All the analysis and study has targeted Starbus and H/MCV segment. The information provided by sales officer and marketing people is considered valid subject to non availability of verification from other sources.
LIMITATION S OF STUDY
The details of technical specification of competitors are not complete. The sales report includes only north India. The survey results were taken from a sample of population therefore will be susceptible to sampling errors. We have assumed that the survey results
90 31 66% 34%
283 17 94% 6%
318 2 99% 1%
LP90949/
50 40 30 Nos 20 10 0 Nos Aug 6 Sept 10 oct 22 Nov 23 Dec 25 Jan 30 Feb 40 March 45
MARKET/PRODUCT POSITION
Market NEARESTCOMPETITOR Market Share % Share % 63.7 M&M 13.4 61.7 65.3 90.9 44.1 64.3 56.8 ASHOK LEYLAND M&M PIAGGIO ASHOK M&M M&M 21.5 24.3 78 45.8 13.5 17.5
LCV BUS FIRST GLOBAL POSITION M&HCV TRUCK LCV TRUCK BUS(8T&>) 4 TH 16
TH
----
SCANIA GM HYUNDAI
----
2ND
LP909/49 is the 40 seater Starbus. It is a BS-II complaint. Sales figure of LP909/49 in the month of August was six. But its sales figure reached to 25 in few months. LP909/49 showed the regular increase of sale in every month. At the month of March sales reached to 45 buses. The sales of LP909/49 indicated positive attitude of customers.
The Tata Motors is the leading company in commercial vehicle sector. The overall market share of Tata motors is 63.7% followed by M&M OF 13.4%.Tata motors retained its domestic leadership in commercial vehicle segment due to wide product offerings. The Ashok Leyland is the close competitor of Tata motors in H/MCV segment. Tata Motors has offered STARBUSES and GLOBUS to meet the customer requirement. Tata Starbuses are widely used as city transport in India. But in HCV (STV), Ashok Leyland gives tough competition to Tata Motors with 45.8% market share, while Tata Motors have 44.1% market share. On the whole, Tata Motors leads in the all segments of commercial vehicle. Tata Motors have a broad based presence across the country in all segments of CV, LCV, HCV; LCV bus etc. th The global position of Tata Motors is 4 in M/HCV segment. The joint ventures and
EGG DIAGRAM OF CUSTOMER NEED The findings of the study are based upon the study done on the commercial vehicle sector. The findings are also done by collecting customer feedback from the customers. The customer need can be categorized as primary needs, secondary needs and peripheral needs.
PRIMARY NEED: The primary needs consist of following characteristics: Maintenance cost After sales service
Seating capacity SECONDARY NEEDS: The secondary needs consists of following characteristics: Seating capacity Mileage Comfort of driver brand
PERIPHERAL NEEDS: The outer cover of the egg shows the peripheral need of the customer. It includes the following attributes: Esteem value Environment friendly Comfort of driver
CONCLUSIONS
The project is a great means of learning .It gives the deep insight in automobile industry. There are various strategies which one can make the best of business opportunities.
Cost leadership strategy: the primary method for such a take is the primary method of ordering i.e. the tendering process.
Differentiation
strategy:
the
differentiation
strategy
is
opted
to
RECOMMENDATIONS
RECOMMENDATIONS
TIMELY DELIVERY: The delivery of the ordered vehicle should be made in time as per commitments made by the company. Timely delivery will help in gaining the confidence of the customers to perform on time. It will make it easier to get order next time.
AFTER SALES SERVICE: The services rendered after selling the vehicle should be quick and up to the mark. This will boost the trust of the customers in the organization and will surely help in getting further orders from them.
PERFORMANCE: The vehicle should perform optimally so that customer does not face any problem while using these vehicles.
QUALITY: The quality should be up to the standards promised. A good quality ensures the customer loyalty.
EASY AVAILABILITY OF SPARE PARTS : Spare parts should be available easily so that customer do not face any problem during wear and tear of the vehicle.
QUESTIONNAIRE- BUSES TATA MOTORS (1)How many Tata buses do you have in your fleet?
(2)Which products of Tata Motors do
product?
(4)The products you use are of:(a)Eicher (b) Swaraj Mazda (c) Ashok Leyland (d) M&M (e) Others
(6) Why did you prefer Tata buses as compared to others? -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(7)How do you rank our product on the basis of following features:Features Satisfactory Good Engine Mileage After sale service Availability of spares parts Warranty Maintenance of the Vehicle Over all experience Very good Excellent Bad
Comfort features (8)The most common problem faced by you with the products? (9) Would you prefer Tata products in future and why?
------ Yes
-------- No
(10)What kind of changes are you looking in our product? Suggest:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(11) These are some parameters that people considered before buying a commercial vehicle
.Rank the following parameters from 1-10, 1 being the most important and 10 being the least important. Parameters Rank Initial Price Reliability Seating Capacity Maintenance Cost Availability of spare parts Power/speed
Brand of manufacturer After sale service Mileage Comfort of the Driver Environment friendly Esteem value ) Are you satisfied with the service quality of Tata products?
___ Yes __No
Bibliography
Bibliography
SITES
www.Tata Motors .com www.Motor india.com wikipedia
BOOKS
Philip Kotler- Marketing Management
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