MRP PROJECT

On

‘’To study tata motars & maruti suzuki ’’

Submitted to

Devi Ahilya University, Indore

For partial fulfillment of the requirement for the Degree of

Master of Business Administration (Full-Time)

Batch 2017-2019

Guided by:- Deepti shastri gupta Submitted by:- Sarita Sharma

IBMR, IPS ACADEMY

Rajendra Nagar, A.B. Road, Indore – 452012 (MP)
 Content
S.No. Particulars Page No.

01. Introduction 3

02. Company details 4

03. Literature Review 5

04 Rationale Of Study
05. Objectives of Study 8
06. Reseach Methodology 8

•research design 8

•sampling desk :- Random 10

•Sampling unit :- Indore 9

•Research Review & Research Resources 11

07. Conclusion 12

INTRODUCTION

Maruti Suzuki India Ltd. primarily manufactures cars and has been the most favourite automobile brand
among Indian people since its inception. The company had started in 1982; however, it commenced the
production of automobiles a year later in 1983. The very first model of Maruti, Maruti Suzuki 800, made
its way to Indian roads in December 1983. The very first unit was bought by Mr. Harpal Singh of Delhi
and he was handed over the keys of the car by the then Prime Minister of India Indira Gandhi. The second
in the series was India's first MUV Maruti Suzuki Omni that was launched in November 1984. The other
models that came into market in subsequent years were Gypsy in 1985, Maruti 1000 in 1990, Zen in 1993,
Esteem in 1994, WagonR in 1999, Swift in 2005, Grand Vitara in 2007, Maruti Suzuki A-Star in 2008,
Ritz in 2009, Eeco in 2009, Alto K10 in 2010, Kizashi in 2011, Ertiga in 2012, Alto 800 in 2012, Stingray
in 2013, Celerio in 2013 and Ciaz in 2014.

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car and motorcycle
manufacturer Suzuki Motor Corporation. As of July 2018, it had a market share of 53% of the
[7]

Indian passenger car market. Maruti Suzuki manufactures and sells popular cars such as
[8]

the Ciaz, Ertiga, Wagon R, Alto K10, Swift, Celerio, Swift Dzire, Baleno and Baleno
RS, Omni, Alto 800, Eeco, Ignis, S-Cross and Vitara Brezza. The company is headquartered
[9]

at New Delhi. In May 2015, the company produced its fifteen millionth vehicle in India, a Swift
[2]

Dzire.[10]

TATA MOTARS
Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an
Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India.
It is a subsidiary of Tata Group, an Indian conglomerate. Its products include passenger cars, trucks, vans,
coaches, buses, sports cars, construction equipment and military vehicles.[3]
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South
Africa, Great Britain and Thailand. It has research and development centres in Pune, Jamshedpur,
Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain. Tata Motors' principal
subsidiaries purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar and Land
Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-
manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment
manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture
with Fiat Chryslerwhich manufactures automotive components and Fiat Chrysler and Tata branded
vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial
vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered the
passenger vehicle market in 1988 with the launch of the TataMobilefollowed by the Tata Sierra in 1991,
becoming the first Indian manufacturer to achieve the capability of developing a competitive indigenous
automobile.[4] In 1998, Tata launched the first fully indigenous Indian passenger car, the Indica, and in
2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land
Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The company
is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of 2016.[5]
On 17 January 2017 Natarajan Chandrasekaran was appointed chairman of the company Tata Group. Tata
Motors increases its UV market share to over 8% in FY2019 [6]

PROFILE OF THE COMPANY

Logo of Maruti Udyog

Maruti was established in February 1981 with production starting in 1983 with the Maruti 700 Which is
100 % Indian Made & The Second Model is Maruti 800 DX based on the Suzuki SS80 Which is imported
From Japan Car Manufacturer SUZUKI As of May 2007, the Government of India, through Ministry of
Disinvestment,[11] sold its complete share to Indian financial institutions and no longer has any stake in
Maruti Udyog.[12]
Chronology[edit]
Under the name Maruti
"Surya Ram Maruti Technical Services Private Ltd" (MTSPL), a private company, was launched in 1970
to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor
car". Under the Companies Act, "Maruti Limited" was incorporated in June 1971. Maruti Limited went
into liquidation in 1977. Further, Maruti Udyog Ltd was incorporated through the efforts of Dr. V.
Krishnamurthy.[13]
Affiliation with Suzuki
In 1982, a license and joint venture agreement (JVA) was signed between Maruti Udyog Ltd,
and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed market,
Maruti received the right to import 40,000 fully built-up Suzuki in the first two years, and even after that
the early goal was to use only 33% indigenous parts. This upset the local manufacturers considerably.
There were also some concerns that the Indian market was too small to absorb the comparatively large
production planned by Maruti Suzuki, with the government even considering adjusting the petrol tax and
lowering the excise duty in order to boost sales.[14] At First Maruti introduced Maruti 700 which is Indian
Made Later Maruti Tied Up with Japan Car Manufacturer SUZUKI & Imported SUZUKI SS80 & Sold In
indian market With the Name MARUTI SUZUKI 800DX in 1983, this Maruti 800 Its India's first
Hatchback car. Initial product plan was 40% saloons, and 60% Maruti Van. [14] Local production
commenced in December 1983.[15] In 1984, the Maruti Van with the same three-cylinder engine as the
800 was released and the installed capacity of the plant in Gurgaon reached 40,000 units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was launched. In 1986, the
original 800 was replaced by an all-new model of the 796 cc hatchback Suzuki Alto and the 100,000th
vehicle was produced by the company.[13][dead link] In 1987, the company started exporting to the West,
when a lot of 500 cars were sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to
100,000 units per annum.
Market liberalisation
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India's first contemporary sedan.
By 1991, 65 per cent of the components, for all vehicles produced, were indigenized. After liberalization
of the Indian economy in 1991, Suzuki increased its stake in Maruti to 50 per cent, making the company a
50-50 JV with the Government of India the other stake holder.
In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was introduced.
Maruti produced its 1 millionth vehicle since the commencement of production in 1994. Maruti's second
plant was opened with annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-
road vehicle service. In 1998, the new Maruti 800 was released, the first change in design since 1986. Zen
D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle and a redesigned Omni were introduced. In
1999, the 1.6 litre Maruti Baleno three-box saloon and Wagon R were also launched.
In 2000, Maruti became the first car company in India to launch a Call Center for internal and customer
services. The new Alto model was released. In 2001, Maruti True Value, selling and buying used cars was
launched. In October of the same year the Maruti Versa was launched. In 2002, Esteem Diesel was
introduced. Two new subsidiaries were also started: Maruti Insurance Distributor Services and Maruti
Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to 54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the Wagon R were
upgraded and redesigned. The four millionth Maruti vehicle was built and they entered into a partnership
with the State Bank of India. Maruti Udyog Ltd was Listed on BSE and NSE after a public issue, which
was oversubscribed tenfold. In 2004, the Alto became India's best selling car overtaking the Maruti
800 after nearly two decades. The five-seater Versa 5-seater, a new variant, was created while the Esteem
was re-launched. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units,
the highest ever since the company began operations and the fiftieth lakh (5 millionth) car rolled out in
April 2005. The 1.3 litre Suzuki Swift five-door hatchback was introduced in 2005.[16]
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to build two
new manufacturing plants, one for vehicles and one for engines.[16] Cleaner cars were also introduced,
with several new models meeting the new "Bharat Stage III" standards.[16] In February 2012, Maruti
Suzuki sold its ten millionth vehicle in India.[15] In July 2014 it had a market share of more 45%.[17]
Maruti Suzuki is now looking to shift its current manufacturing facility located in the downtown Gurgaon
as apparently it is short of space and logistics. It is hunting for a huge 700 acres of plot of land.[18]
On 25 April 2019, Maruti Suzuki announced that it would phase out production of diesel cars by 1 April
2020, when the Bharat Stage VI emission standards come into effect. The new standards would require a
significant investment from the company to upgrade its existing diesel engines to comply with the more
stringent emission standards. Chairman R.C. Bhargava stated, "We have taken this decision so that in
2022 we are able to meet the Corporate Average Fuel Efficiency norms and higher share of CNG vehicles
will help us comply with the norms. I hope the union government's policies will help grow the market for
CNG vehicles." Diesel cars accounted for about 23% of Maruti Suzuki's annual sales.[19]

Joint venture related issues[edit]

Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor
Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki Motor
Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic
trade in the Indian automobile market and the nature of the partnership built up till then was the
underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from
26% to 40% in 1987, and to 50% in 1992, and further to 56.21% as of 2013.[20] In 1982, both the venture
partners entered into an agreement to nominate their candidate for the post of Managing Director and
every Managing Director would have a tenure of five years[21][22]

Manufacturing facilities[edit]
Maruti Suzuki has three manufacturing facilities in India.[23] All manufacturing facilities have a combined
production capacity of 1,700,000 vehicles annually. The Gurgaon manufacturing facility has three fully
integrated manufacturing plants and is spread over 300 acres (1.2 km2).[24] The Gurgaon facilities also
manufacture 240,000 K-Series engines annually. The Gurgaon Facilities manufactures the Alto
800, WagonR, Ertiga, S-Cross, Vitara Brezza, Ignis and Eeco.
The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600 acres
(2.4 km2).[24] Initially it had a production capacity of 100,000 vehicles annually but this was increased to
300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000
vehicles taking total production capacity to 800,000 vehicles annually.[25] The Manesar Plant produces
the Alto 800, Alto K10, Swift, Ciaz, Baleno, Baleno RS and Celerio. On 25 June 2012, Haryana State
Industries and Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional Rs
235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that
failure to pay the amount would lead to further proceedings and vacating the enhanced land
acquisition.[26] The launch of the Dzire happened in the month of May 2017 and the variant is said to have
good mileage[27]
The Gujarat manufacturing plant became operational in February 2017. The plant current capacity is
about 250,000 units per year. But with new investments Maruti Suzuki has plan to take it to 450,000 units
per year.[28]
In 2012, the company decided to merge Suzuki Powertrain India Limited (SPIL) with itself. [29] SPIL was
started as a JV by Suzuki Motor Corp. along with Maruti Suzuki. It has the facilities available for
manufacturing diesel engines and transmissions. The demand for transmissions for all Maruti Suzuki cars
is met by the production from SPIL.

Industrial relations[edit]
Since its founding in 1983, Maruti Udyog Limited has experienced problems with its labour force.
The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process.
In 1997, there was a change in ownership, and Maruti became predominantly government controlled.
Shortly thereafter, conflict between the United Front Government and Suzuki started. In 2000, a major
industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among
other things, major revisions to their wages, incentives and pensions.[30][31]
Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel,
after elections and a new central government led by NDA alliance, India pursued a disinvestment policy.
Along with many other government owned companies, the new administration proposed to sell part of its
stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds
that the company will lose a major business advantage of being subsidised by the Government, and the
union has better protection while the company remains in control of the government.[30][32]
The standoff between the union and the management continued through 2001. The management refused
union demands citing increased competition and lower margins. The central government privatized
Maruti in 2002 and Suzuki became the majority owner of Maruti Udyog Limited.[33][34]
Manesar violence[edit]
On 18 July 2012, Maruti's Manesar plant was hit by violence. According to Maruti management. The
production workers at one of its car factories attacked supervisors and started a fire that killed a company
General Manager of Human Resources Avineesh Dev and injured 100 other managers, including two
Japanese expatriates. The workers also allegedly injured nine policemen.[35][36] However Maruti Suzuki
Workers Union (MSWU) President Sam Meher alleged that management ordered 300 hired security
guards to attack the workforce during the violence.[37] The incident is the worst-ever for Suzuki since the
company began operations in India in 1983.[38]
Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly
conveyance allowance of ₹ 10,000, a laundry allowance of ₹ 3,000, a gift with every new car launch, and
a house for every worker who wants one or cheaper home loans for those who want to build their own
houses.[39][40] According to the Maruti Suzuki Workers Union a supervisor had abused and made
discriminatory comments to a low-caste worker, Jiya Lal,.[41] These claims were denied by the company
and the police.[36] Maruti said the unrest began, not over wage discussions, but after the workers' union
demanded the reinstatement of Jiya Lal who had been suspended for allegedly beating a
supervisor.[38] The workers claim harsh working conditions and extensive hiring of low-paid contract
workers which are paid about $126 a month, about half the minimum wage of permanent
employees.[41] On 27 June 2013, an international delegation from the International Commission for Labor
Rights (ICLR) released a report alleging serious violations of the industrial right of workers by the Maruti
Suzuki management.[42] Company executives denied harsh conditions and claim they hired entry-level
workers on contracts and made them permanent as they gained experience.[39] Maruti employees currently
earn allowances in addition to their base wage.[43]
The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence is the result of
a planned violence by a section of workers and union leaders and arrested 91 people. [44][45] Maruti Suzuki
in its statement on the unrest,[46] announced that all work at the Manesar plant has been suspended
indefinitely.[38] The shut down of Manesar plant is leading to a loss of about Rs 75 crore [47] per day.[48] On
21 July 2012, citing safety concerns, the company announced a lockout under The Industrial Disputes
Act, 1947 pending results of an inquiry the company has requested of the Haryana government into the
causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed,
employees are expected to be paid for the duration of the lockout.[47] On 26 July 2012, Maruti announced
employees would not be paid for the period of lock-out in accordance with Indian labour laws. The
company further announced that it will stop using contract workers by March 2013. The report claimed
the salary difference between contract workers and permanent workers has been much smaller than initial
media reports – the contract worker at Maruti received about ₹ 11,500 per month, while a permanent
worker received about ₹ 12,500 a month at start, which increased in three years to ₹ 21,000-22,000 per
month.[49] In a separate report, a contractor who was providing contract employees to Maruti claimed the
company gave its contract employees the best wage, allowances and benefits package in the region.[50]
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this type of
violence has never happened in Suzuki Motor Corp's global operations in Hungary, Indonesia, Spain,
Pakistan, Thailand, Malaysia, China and the Philippines. Nakanishi apologised to affected workers on
behalf of the company, and in press interview requested the central and Haryana state governments to
help stop further violence by legislating decisive rules to restore corporate confidence amid emergence of
this new 'militant workforce' in Indian factories. He announced, "we are going to de-recognise Maruti
Suzuki Workers’ Union and dismiss all workers named in connection with the incident. We will not
compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to
continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not an alternative to
Manesar.[51][52]
The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21
August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said
that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company
market share.[53] In July 2013, the workers went on hunger strike to protest the continuing jailing of their
colleagues and launched an online campaign to support their demands.[54]
A total of 148 workers were charged with the murder of Human Resources Manager Avineesh Dev. The
court dismissed charges against 117 of the workers. On 17 March 2017, 31 workers were found guilty of
variety of offences. 18 were convicted on charges of rioting, trespassing, causing hurt and other related
offences under Indian Penal Code sections. The remaining 13 workers were sentenced to life in
imprisonment after being found guilty of the murder of General Manager of Human Resources Avineesh
Dev. Twelve of the thirteen sentenced were office-bearers of the Maruti Suzuki Workers Union at the
time of the alleged offences. The prosecution had sought the death penalty for the thirteen.[55]
Both prosecution and defence have announced they will appeal against the sentences. Defence counsel
Vrinda Grover stated, “We will file appeals against all convictions in the HC. The evidence, as it stands,
cannot withstand legal scrutiny. There is no evidence to link these workers to the murder. The 13 who
have been convicted, it’s important to remember that they were the leaders of the union. Therefore, it is
clear that this is targeted framing of these persons. We hope for justice in the superior court.” [56]
The Maruti Suzuki Workers Union is continuing to organise industrial action and protests calling for the
workers to be released and criticising the judgement and sentences an unjust.[57] An international appeal
for the release of the workers has been made by the International Committee for the Fourth International
(ICFI) and other organisations such as the Peoples Alliance for Democracy and Secularism.[58][59]

Products and services[edit]

Current models[edit]

Model Launched Category

Omni 1984–present Minivan

WagonR 1999–present Hatchback

Swift 2005–present Hatchback

DZire 2008–present Sedan

Eeco 2009–present Minivan

Alto 800 2014-present Hatchback

Alto K10 2010–present Hatchback

Ertiga 2012–present Mini MPV

Alto 800 2012–present Hatchback

Celerio 2014–present Hatchback

Ciaz 2014–present Sedan

Baleno 2015–present Hatchback

S-Cross 2015–present Mini SUV

Vitara Brezza 2016–present Mini SUV

Ignis 2017–2019 Hatchback

CelerioX 2017–present Hatchback

TATA MOTORS
Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an
Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India.
It is a subsidiary of Tata Group, an Indian conglomerate. Its products include passenger cars, trucks, vans,
coaches, buses, sports cars, construction equipment and military vehicles.[3]
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South
Africa, Great Britain and Thailand. It has research and development centres in Pune, Jamshedpur,
Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain. Tata Motors' principal
subsidiaries purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar and Land
Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-
manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment
manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture
with Fiat Chryslerwhich manufactures automotive components and Fiat Chrysler and Tata branded
vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial
vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered the
passenger vehicle market in 1988 with the launch of the TataMobilefollowed by the Tata Sierra in 1991,
becoming the first Indian manufacturer to achieve the capability of developing a competitive indigenous
automobile.[4] In 1998, Tata launched the first fully indigenous Indian passenger car, the Indica, and in
2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land
Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The company
is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of 2016.[5]
On 17 January 2017 Natarajan Chandrasekaran was appointed chairman of the company Tata Group. Tata
Motors increases its UV market share to over 8% in FY2019 [6]
Tata Sumo (1994–present)
Tata Group entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-
Benz of Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered
the passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility vehicle based on
the Tata Mobile platform. Tata subsequently launched the Tata Estate (1992; a station wagon design
based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV) and the Tata Safari (1998).

Tata Indica (first generation)

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although initially
criticized by auto analysts, its excellent fuel economy, powerful engine, and an aggressive marketing
strategy made it one of the best-selling cars in the history of the Indian automobile industries. A newer
version of the car, named Indica V2, was a major improvement over the previous version and quickly
became a mass favourite. Tata Motors also successfully exported large numbers of the car to South
Africa. The success of the Indica played a key role in the growth of Tata Motors.[7]
In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo
Commercial Vehicles Company, later renamed Tata Daewoo.[8]
On 27 September 2004, Tata Motors rang the opening bell at the New York Stock Exchange to mark the
listing of Tata Motors.[9]
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera.[10] Tata Motors continued its market area expansion through the
introduction of new products such as buses (Starbus and Globus, jointly developed with subsidiary
Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to
manufacture fully built buses and coaches.[11]

Tata Bolt
In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer of the Jaguar and
Land Rover from Ford Motor Company.[12][13][14][15]
In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo;[16]the range
went on sale in South Korea, South Africa, the SAARC countries, and the Middle East at the end of
2009.[16]
Tata acquired full ownership of Hispano Carrocera in 2009.[17]
In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality Award.[18]
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company Trilix for
€1.85 million. The acquisition formed part of the company's plan to enhance its styling and design
capabilities.[19]
In 2012, Tata Motors announced it would invest around ₹6 billion in the development of Futuristic
Infantry Combat Vehicles in collaboration with DRDO.[20]
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world to run on compressed
air (engines designed by the French company MDI) and dubbed "Mini CAT".
In 2014, Tata Motors introduced first Truck Racing championship in India "T1 Prima Truck Racing
Championship".
On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the 22nd floor to the
fourth floor of the Shangri-La Hotel in Bangkok, where he was to attend a meeting of Tata Motors
Thailand.[21]
On 2 November 2015, Tata Motors announced Lionel Messi as global brand ambassador at New Delhi, to
promote and endorse passenger vehicles globally.[22]
On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as brand ambassador
for its commercial vehicles range.[23]
On 8 March 2017, Tata Motors announced that it has signed a memorandum of understanding
with Volkswagen to develop vehicles for India's domestic market.
On 3 May 2018, Tata Motors announced that it sold its aerospace and defense business to another Tata
Group Entity, Tata Advanced Systems, to unlock their full potential.[24]
Tata Motors partners Nirma University for B.Tech degree for Sanand workforce[25]

Operations[edit]
Tata Motors has vehicle assembly operations in India, Great Britain, South Korea, Thailand, Spain and
South Africa. It plans to establish plants in Turkey, Indonesia, and Eastern Europe.
Tata Motors Cars[edit]
Main article: Tata Motors Cars
Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata Motors
marque. Tata Motors is among the top four passenger vehicle brands in India with products in the
compact, midsize car, and utility vehicle segments.[26] The company's manufacturing base in India is
spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat). Tata's dealership, sales, service, and spare
parts network comprises over 3,500 touch points.[26] Tata Motors has more than 250 dealerships in more
than 195 cities across 27 states and four Union Territories of India.[27] It has the third-largest sales and
service network after Maruti Suzuki and Hyundai.

Tata LPT Trucks made at overseas plants

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, and
Senegal.[28] Tata has dealerships in 26 countries across 4 continents.[29] Tata is present in many countries,
it has managed to create a large consumer base in the Indian Subcontinent, namely India, Bangladesh,
Bhutan, Sri Lanka and Nepal. Tata is also present in
Italy,[30] Spain,[31] Poland,[32] Romania,[33] Turkey,[34] Chile,[35] South Africa,[36] Oman, Kuwait, Qatar,
Saudi Arabia, United Arab Emirates, Bahrain, Iraq, Syria and Australia.
Tata Daewoo[edit]
Main article: Tata Daewoo
Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly Daewoo Commercial
Vehicle Company) is a commercial vehicle manufacturer headquartered in Gunsan, Jeollabuk-do, South
Korea, and a wholly owned subsidiary of Tata Motors. It is the second-largest heavy commercial vehicle
manufacturer in South Korea and was acquired by Tata Motors in 2004. The principal reasons behind the
acquisition were to reduce Tata's dependence on the Indian commercial vehicle market (which was
responsible for around 94% of its sales in the MHCV segment and around 84% in the light commercial
vehicle segment) and expand its product portfolio by leveraging on Daewoo's strengths in the heavy-
tonnage sector.
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and
buses including GloBus and StarBus. In 2012, Tata began developing a new line to manufacture
competitive and fuel-efficient commercial vehicles to face the competition posed by the entry of
international brands such as Mercedes-Benz, Volvo, and Navistar into the Indian market.[37]
Tata Hispano[edit]
Main article: Tata Hispano
Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in Zaragoza, Aragon,
Spain, and a wholly owned subsidiary of Tata Motors. Tata Hispano has plants in Zaragoza, Spain, and
Casablanca, Morocco. Tata Motors first acquired a 21% stake in Hispano Carrocera SA in 2005,[10] and
purchased the remaining 79% for an undisclosed sum in 2009, making it a fully owned subsidiary,
subsequently renamed Tata Hispano. In 2013, Tata Hispano ceased production at its Zaragoza plant.[38]
Jaguar Land Rover[edit]

The Range Rover

Jaguar F-Type
Main article: Jaguar Land Rover
Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley, Coventry, United
Kingdom, and has been a wholly owned subsidiary of Tata Motors since June 2008, when it was acquired
from Ford Motor Company of USA.[39] Its principal activity is the development, manufacture and sale
of Jaguar luxury and sports cars and Land Rover premium four-wheel-drive vehicles.
Jaguar Land Rover has two design centres and three assembly plants in the United Kingdom. Under Tata
ownership, Jaguar Land Rover has launched new vehicles including the Range Rover Evoque, Jaguar F-
Type, the Jaguar XE, the Jaguar XJ (X351), the second-generation Range Rover Sport, and Jaguar XF, the
fourth-generation Land Rover Discovery, Range Rover Velar and the Range Rover (L405).
TML Drivelines[edit]
TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the manufacture of gear
boxes and axles for heavy and medium commercial vehicles. It has production facilities at Jamshedpur
and Lucknow. TML Forge division is also a recent acquisition of TML Drivelines. TML Drivelines was
formed through the merger of HV Transmission and HV Axles .
Tata Technologies[edit]
Tata Technologies Limited (TTL) is a 43%-owned subsidiary of Tata Motors which provides design,
engineering, and business process outsourcing services to the automotive industry. It is headquartered
in Pune's Hinjewadi business district and also has operations in London, Detroit and Thailand. Its clients
include Ford, General Motors, Honda, and Toyota.
The British engineering and design services company Incat International, which specialises in engineering
and design services and product lifecycle management in the automotive, aerospace, and engineering
sectors, is a wholly owned subsidiary of TTL. It was acquired by TTL in August 2005 for ₹4 billion.
In 2017, TAL, a subsidiary of Tata Motors, manufactured India’s first industrial articulated robot for
micro, small, and medium enterprises.[40]
European Technical Centre[edit]
The Tata Motors European Technical Centre (TMETC) is an automotive design, engineering, and
research company based at Warwick Manufacturing Group (WMG) on the campus of the University of
Warwick in Great Britain. It was established in 2005 and is a wholly owned subsidiary of Tata Motors. It
was the joint developer of the World Truck.[41]
In September 2013, it was announced that a new National Automotive Innovation Campus would be built
at WMG at Warwick's main campus at a cost of £100 million.[42][43] The initiative will be a partnership
between Tata Motors, the university, and Jaguar Land Rover, with £30 million in funding coming from
Tata Motors.[44]

Joint ventures[edit]
Tata Marcopolo[edit]
Main article: Tata Marcopolo

A Tata Marcopolo bus in use in Chandigarh, India

Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%) and the Brazil-based
Marcopolo S.A. (49%). The joint venture manufactures and assembles fully built buses and coaches
targeted at developing mass rapid transportation systems. It uses technology and expertise in chassis and
aggregates from Tata Motors, and know-how in processes and systems for bodybuilding and bus body
design from Marcopolo. Tata Marcopolo has launched a low-floor city bus which is widely used by
transport corporations in many Indian cities. Its manufacturing facility is based in Dharwad, Karnataka
State, India.
Fiat-Tata[edit]
Fiat-Tata is an India-based joint venture between Tata and Fiat Automobiles which produces Fiat and
Tata branded passenger cars, as well as engines and transmissions. Tata Motors has gained access to
Fiat's diesel engine and transmission technology through the joint venture.[45]
The two companies formerly also had a distribution joint venture through which Fiat products were sold
in India through joint Tata-Fiat dealerships. This distribution arrangement was ended in March 2013;
Fiats have since been distributed in India by Fiat Automobiles India Limited, a wholly owned subsidiary
of Fiat.[46][47]
Tata Hitachi Construction Machinery[edit]
Main article: Tata Hitachi Construction Machinery
Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which
manufactures excavators and other construction equipment.[citation needed] It was previously known as Telcon
Construction Solutions.[citation needed]
Tata Motors European Technical Centre[edit]
The TATA Motors European Technical Centre is an automotive design, engineering, and research
company.[citation needed] Company based at Warwick Manufacturing Group (WMG) on the campus of the
University of Warwick in Great Britain.[citation needed] It was established in 2005 and is wholly owned
subsidiary of Tata Motors. It was the joint developer of the World Truck.[citation needed] In September 2013 it
was announced that a new National Automotive Innovative Campus would be built at WMG at Warwicks
main campus at a cost of 100 million pounds[citation needed]. The initiative will be a partnership between Tata
Motors, the University, and Jaguar Land Rover, with the 30 million pounds in funding coming from Tata
Motors.[48]

Products[edit]
For details of Tata Motors passenger cars, see Tata Motors Cars. For details of Land Rover and Jaguar
products, see Jaguar Land Rover.
Commercial vehicles[edit]

The Tata Xenon pick up

A Tata 407 water truck

A Tata Starbus

 Tata Ace
o Tata Ace Zip
 Tata Super Ace
 Tata TL/Telcoline/207 pick-up truck
 Tata 407 Ex and Ex2
 Tata 709 Ex
 Tata 807 (Steel cabin chassis, cowl chassis, medium bus chassis, steel cabin + steel body chassis)
 Tata 809 Ex and Ex2
 Tata 909 Ex and Ex2
 Tata 1210 SE and SFC (Semi Forward)
 Tata 1210 LP (Long Plate)
 Tata 1109 (Intermediate truck/ LCV bus)
 Tata 1512c (medium bus chassis)
 Tata 1515c/1615 (medium bus chassis)
 Tata 1612c/1616c/1618c (heavy bus chassis)
 Tata 1618c (semilow-floor bus chassis)
 Tata 1623 (rear-engined low-floor bus chassis)
 Tata 1518C (Medium truck) 10 ton
 Tata 1613/1615c (medium truck)
 Tata 1616/1618c (heavy duty truck)
 Tata 2515c/2516c,2518c (heavy duty 10 wheeler truck)
 Tata Starbus (branded buses for city, intercity, school bus, and standard passenger transportation)
 Tata Divo (Hispano Divo)
 Tata CityRide (12- to 20-seater buses for intracity use)
 Tata 3015 (heavy truck)
 Tata 3118 (heavy truck) (8×2)
 Tata 3516 (heavy truck)
 Tata 4018 (heavy truck)
 Tata 4923 (ultraheavy truck) (6×4)
 Tata Novus
 Tata Prima
 Tata Ultra (ICV Segment)
 Tata Winger - Maxivan
Military vehicles[edit]

 Tata LSV (Light Specialist Vehicle)

 Tata Mine Protected Vehicle (4×4)
 Tata 2 Stretcher Ambulance
 Tata 407 Troop Carrier
 Tata LPTA 713 TC (4x4)
 Tata LPT 709 E
 Tata SD 1015 TC (4x4)
 Tata LPTA 1615 TC (4x4)
 Tata LPTA 1621 TC (6x6)
 Tata LPTA 1615 TC (4x2)
 Tata LPTA 5252 TC (12x12)
 Tata Sumo 4x4
 Tata Xenon
 Tata 207
Tata Motors proposed overhaul of armoured fighting vehicles and infantry main combat vehicles in 2015.
The inter-ministerial committee was chaired by Secretary in the Department of Industrial Policy and
Promotion (DIPP) approved most of the proposals from the defense Manufacturing sector in India.[49]
Electric vehicles[edit]
Tata Motors has unveiled electric versions of the Tata Indica passenger car powered by TM4 electric
motors and inverters,[50] as well as the Tata Ace commercial vehicle, both of which run on lithium
batteries.
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in
electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1.93 million, and plans
to launch the electric Indica hatchback in Europe next year.[51][52][53] In September 2010, Tata Motors
presented four CNG–Electric Hybrid low-floored Starbuses to the Delhi Transport Corporation, to be
used during the 2010 Commonwealth Games. These were the first environmentally friendly buses to be
used for public transportation in India.

Notable vehicles[edit]
Tata Nano[edit]
Main article: Tata Nano
Tata Nano is often cited as the world's most affordable car
The Nano was launched in 2009 as a city car intended to appeal as an affordable alternative to the section
of the Indian populace that is primarily the owner of motorcycles and has not bought their first car.
Initially priced at ₹100,000 (US$1,500), the vehicle attracted a lot of attention for its relatively low price.
In 2018, Cyrus Mistry, Chair of the Tata Group, called the Tata Nano a failed project, with production
ending in May 2018.[54]
Tata Ace[edit]
Main article: Tata Ace
Tata Ace, India's first indigenously developed sub-one-ton minitruck, was launched in May 2005. The
minitruck 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 segment. Ace rapidly emerged 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% to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by
Autoline Industries.[55] By 2005, Autoline was producing 300 load bodies per day for Tata Motors.
Ace is still a top seller for TML with 500,000 units sold by June 2010. [56] In 2011, Tata Motors invested
Rs 1000 crore in Dharwad Plant, Karnataka, with the capacity of 90,000 units annually and launched two
models of 0.5-T capacity as Tata Ace Zip, Magic Iris.[57]

Tata Super Ace

Ace has also been exported to several Asian, European, South American, and African countries and all-
electric models are sold through Polaris Industries' Global Electric Motorcars division.[58] In Sri Lanka, it
is sold through Diesel and Motor Engineering (DIMO) PLC under the name of DIMO Batta.
Tata 407[edit]
Main article: Tata 407
The Tata 407 is a light commercial vehicle (LCV) that has sold over 500,000 units since its launch in
1986.[59] In India, this vehicle dominates market share of the LCV category, accounting for close to 75%
of LCV sales.
Tata Prima[edit]
Main article: Tata Prima

A Tata Prima 4928.S in Assam,India

Tata Prima is a range of heavy trucks first introduced in 2008 as the company's 'global' truck.Tata Prima
was the winner of the 'Commercial Vehicle of the Year' at the Apollo Commercial Vehicles Awards, 2010
and 2012.The 'HCV (Cargo) Truck of the Year,2010' and the 'HCV (Rigid) Truck of the Year, 2012'. First
truck range with Common rail engine, Automatic transmission, World-class cabin with HVAC, Air
suspension driver seats, Data logger for performance tracking. The trucks have a combined loading
capacity of 40 tonnes, ideal for heavy duty shipment. The interior of the Prima is equipped with modern
features like GPS, air conditioning, 4-way adjustable driver and co-driver seats, etc.
Tata Harrier[edit]
Main article: Tata Harrier

The H5X Concept

Tata Harrier is a 5 seater SUV set to rival the Hyundai Creta and Jeep Compass. It is derived from the
H5X Concept displayed at the 2018 Auto Expo. It was launched in 23 January 2019
REVIEW OF LITERATURE
Review of Literature Some important research works undertaken in recent years which are very closely
connected with the present study are reviewed.
• Shinde Govind P. & Dubey Manisha (2011) the study has been conducted considering the segments
such as passenger vehicle, commercial vehicle, utility vehicle, two and three wheeler vehicle of key
players performance and also analyze SWOT analysis and key factors influencing growth of automobile
industry.
• Sharma Nishi (2011) studied the financial performance of passenger and commercial vehicle segment of
the automobile industry in the terms of four financial parameters namely liquidity, profitability, leverage
and managerial efficiency analysis for the period of decade from 2001-02 to 2010-11. The study
concludes that profitability and managerial efficiency of Tata motors as well as Mahindra & Mahindra ltd
are satisfactory but their liquidity position is not satisfactory. The liquidity position of commercial vehicle
is much better than passenger vehicle segment.
• Singh Amarjit & Gupta Vinod (2012) explored an overview of automobile industry. Indian automobile
industry itself as a manufacturing hub and many joint ventures have been setup in India with
foreign collaboration. SWOT analysis done there are some challenges by the virtue of witch automobile
industry faces lot of problems and some innovative key features are keyless entry, electrically controlled
mechanisms enhanced driving control, soft feel interiors and also need to focus in future on like fuel
efficiency, emission reduction safety and durability.
• Zafar S.M.Tariq & Khalid S.M (2012) the study explored that ratios are calculated from financial
statements which are prepared as desired policies adopted on depreciation and stock valuation by the
management. Ratio is simple comparison of numerator and a denominator that cannot produce complete
and authentic picture of business. Results are manipulated and also may not highlight other factors which
affect performance of firm by promoters.
• Ray Sabapriya (2012) studied the sample of automobile companies to evaluate the performance of
industry through indicators namely sales, production and export trend etc for period of 2003-04 to 2009-
10. The study finds that automobile industry has been passing through disruptive phases by over debt
burden, under utilization of assets and liquidity instability. The researcher suggested to improving the
labour productivity, labour flexibility and capital efficiency for success of industry in future.
• Dawar Varun (2012) Study to analyze the effect of various fundamental corporate policy variables like
dividend, debit, capital expenditure on stock prices of automobile companies of India. The study tends
that dividend & investment policy are relevant and capital structure irrelevant to stock prices.
• Mistry Dharmendra S. (2012) understood a study to analyze the effect of various determinants on the
profitability of the selected companies. It concluded that debt equity ratio, inventory ratio, total assets
were important determinants which effect positive or negative effect on the profitability. It suggerted to
improve solvency as to reduce fixed financial burden on the company profit & give the benefit of trading
on equity to the shareholders.
• Murlidhar, A. Lok Hande & Rana Vishal S. (2013) the author tries to evaluate the performance of
Hyundai Motors Company with respect to export, Domestic Sales, productions and profit after tax. For
this purpose, the pie chart and bar graph are used to show the performance of company various years.
• Dharmaraj, A.and Kathirvel N. (2013) explored an overview of new industrial policy act 1991, which
allow 100 percent foreign direct investment. An attempt is made to find out the effect of FDI on financial
performance of automobile industry. It is concluded that the liquidity ratios shows minor changes and
profitability shows an increasing trend during post FDI when compared to pre FDI. Post FDI efficiency
ratio shows that companies are efficiently utilizing the available resources.
 • Rapheal Nisha (2013) the author tries to evaluate the financial performance of Indian tyre industry. The
study was conducted for period 2003-04 to 2011-12 to analyze the performance with financial indicators,
sales trend, export trend, production trend etc. The result suggests the key to success in industry is to
improve labour productivity and flexibility and capital efficiency.
• Hotwani Rakhi (2013) the author examines the profitability position and growth of company in light of
sales and profitability of Tata Motors for past ten years. Data is analyzed through rations, standard
deviations and coefficient of variance. The study reveals that there not exists a strong relationship
between sales & profitability of company.
Sharma Rashmi, Pande Neeraj & Singh Avinash (2013) for understanding how social media monitoring
can help diving the consumer decision & also study. The functions of social media i.e. monitor, responses
amplify and lead at maruti Suzuki India ltd. The researcher had discussion with social media team median
managers for collecting data & also visited the official social media sites of MSIL.
• Daniel A. Moses Joshunar (2013) the study has been conducted to identify the financial strength and
weakness of the Tata motors Ltd. using past 5 year financial statements. Trend analysis & ratio analysis
used to comment of financial status of company. Financial performance of company is satisfactory and
also suggested to increase the loan levels of company for the better performance.
• Dhole Madhavi (2013) Investing the impact of price movement of share on selected company
performance. It advise due investors consider various factors before choosing the better portfolio.
Sentimental factors do play a role in price movement only in short term but in long run annual
performance is sole factor responsible for price movement.
• Shende Vikram (2014) this research will be helpful for the new entrants and existing car manufacturing
companies in India to find out the customer expectations and their market offerings. The objective of
study is the identification of factors influencing customers performance for particular segment of cars.
• Azhagaiah R. & Gounasegaran (2014) recognized India’s per capita real GDP growth as one of key
drivers of growth for country’s automobile industry. The central government would be set up various task
forces on issue related to taxation, land acquisitions, labour reform and skill development for auto
industry.
Buvaneswari .R & Kanimozhip (2014) to study the credit worthiness of selected firms in Indian car
industry, tiruchy. Professor Edward Altman of New York University developed method Z score analysis
to predict the company failure or bankruptcy. To measure the fiscal fitness of a company combined a set
of five financial ratios.
• Idhayajothi, R et al (2014) the main idea behind this study is to analyze the financial performance of
Ashoka Leyland ltd. at Chennai. The result shows that financial performance is sound and also suggested
to improve financial performance by reducing the various expenses.
• Huda Salhe Meften & Manish Roy Tirkey (2014) have studied the financial analysis of Hindustan
petroleum corporation ltd. The study is based on secondary data. The company has got excellent gross
profit ratio and trend is rising in with is appreciable indicating efficiency in production cost. The net profit
for the year 2010-11 is excellent & it is 8 times past year indicating reduction in operating reduction in
operating expenses and large proportion of net sales available to the shareholders of company.
• Srivastava Anubha (2014) Data analysis has been done using the top down approach ,i.e. Economic
analysis, industry analysis, company and technical analysis to find relationship between automobile sector
index with market index. Mahindra and Mahindra have a great position on the stock market and will
attract investor and this could lead to expansion and growth. Thus Tata motors and Maruti Suzuki need to
take care of their stock and expansion.
• Sarangi Pradeepta K et al (2014) undertook a study to forecast the future trend of automobile industry.
The study highlighted the six different experiments have been carried out for period of 12 years data to
estimate values for next 3 years. In each experiment graph has been plotted using spreadsheet and then
linear trend has been drawn and expanded to calculate future values.
• Kumar Sumesh & Kaur Gurbachan (2014) Automobile sector is the dominant player in economy of
world. After liberalization Indian automobile industry has emerged as a major contributor to India’s GDP.
The study identified that there is no significant in the means score of various financial ratios of Maruti
Suzuki and Tata motors but in meeting their long term obligations and efficacy of utilizing the assets
show the significant difference in the efficiency of both the firms.
• Krishnaveni, M. & Vidya, R. (2015) find that Indian automobile industry is a high flying sector these
days and emerging as an export hub in wake of liberalisation and globalization. This paper revises the
category wise production, sales and exports of automobile industry in India. Industry growth can be
viewed in term of pre and post liberalization. As government allows 100 percent FDI, increase 15% in
customs duty on cars and MUVs to encourage local manufacturer and concessional import duty on
specified parts of hybrid vehicles.
• Sarwade Walmik Kachru (2015) analyzed the effects of liberalization, government delicensing and
liberal trade policies on the growth of Indian auto mobile industry .The study recommends that investing
four- wheeler is going to be smart potio
Objectives of Study
To understand the service awareness among the customer for their vehicle.
To know problem faced by the customer with reference of their vehicle.
To compare the after sales service provided by The Tata Motors and Maruti Suzuki.
NATIONAL GROWTH
The tata nano is a four passenger city car built by tata motorsaimed primarily at Indian market

INTERNATIONAL GROWTH
•Tata Motor's Nanao car is ready to start its journey on the globalroad as it displayed version of the hatchback for
worldwidemarketplace. This new version was introduced at 79th GenevaMotor Show
•This international version is more powerful and stronger than itsIndian counterpart. It is 0.19 meters longer in length
and is 0.08meters wider in comparison of its Indian part. The company isaimed towards selling of Nano car in Europe
for 5000 euros($6,316)).

ETHICAL OBJECTIVES
•Tata group had never compromised on ethics, it last year editedwhistle blower policy for the benefits of the company
& society
•The Company believes in the conduct of the affairs of itsconstituents in a fair and transparent manner by adopting
higheststandards of professionalism, honesty, integrity and ethicalbehavior.
RESEARCH METHODOLOGY
 Introduction to the research problem Indian economy has grown tremendously with the advent of policy
of liberalization, privatization and globalization since 1991. Almost all sectors of the economy have
achieved noteworthy progress and achieved the distinction of second fastest economy of the world after
only China. With the modest beginning in 1949, Indian car manufacturing and marketing has attained the
important milestone. During this period income of people has also increased manifold and significant and
discernible change has also been noticed in the attitude and aptitude of the people in the form of shift
from propensity to save to propensity to consume and spend. Banks and other financial institutes have
contributed positively in the form of making available easy loans and financing facilities. Consequently
India became a favorable and hot destination for foreign car manufactures and marketers. Almost all
foreign car manufacturers like Hyundai, Toyota, and Chevrolet. Volkswagen, Honda and many more have
set up their manufacturing facilities in India. A number of Indian car manufactures entered in foreign
collaboration and started car manufacturing facilities in India. This resulted in availability of a number of
makes and models of cars, both big and small, in Indian car market. Conditions of roads have also
improved and many new mega highways, highways and express ways have been constructed. Not only
internal city roads have improved but cities are well connected with small towns and even with villages.
Entire country is connected with the help of national triangles and quadrangles. All of the sudden a flood
of big and luxury cars is witnessed on Indian roads. More and more people started buying big cars
irrespective of fact whether their means permit them to do so partly due to demonstration effect and partly
due to availability of easy financing facilities. Meanwhile income and purchasing power of central and
state government officials increased substantially due to their pay revision by V and VI pay 108
commissions, IT companies started paying huge salaries and incentives to their employees. These all
culminated in buying of big and luxury cars by more and more number of people and Indian roads started
flooding with the big cars. In such a backdrop it was but natural to think and raise the doubts that under
such a changed scenario “are small cars still sustainable in Indian automobile sector”. This has prompted
the researcher to undertake this study. 4.2 Objectives of the study - Currently Automobile Industry in
India is growing very rapidly. It appears that the manufacturing sector activities in India is going to be
driven to a very large extend by the automobile sector. The small car segment in Indian automobile sector
is very large. The small car segment of automobile sector that form the corner stone, of this growth would
probably the pivot around which the automobile sector in India would resolve in years to come.
Therefore, a systematic study of small car segment and its Economic Sustainability is required. With
changing socio- economic pattern of Indian consumer specially the middle class consumer the study aims
to find out how their perception about the technology used in small car, its suitability, the price and other
factors can influence the economic sustainability of a small car. The present research study has been
undertaken to achieve the following objectives, 1. To study the sustainabi 109 4.3 Research
HypothesesH10 Small cars are no more a preferred choice of Indian consumers H11: Small cars are still a
preferred choice of Indian consumers. H20 Even constantly rising costs of inputs and fuel prices will not
contribute to the sustainability of small cars H2:1 Constantly rising costs of inputs and fuel prices will
contribute to sustainability of small cars in India. H30 Small cars will no more be the choice of Indian
Middle class. H31: Small car will continue to be a choice of Indian middle class consumers. H40 Recently
launched Tata’s Nano car is not a preferred choice of Indian consumers H41: Recently launched Tata’s
Nano car is a preferred choice of Indian Consumers. 4.4 Scope of the study - The present study is
confided to the study of sustainability of small cars in Indian automobile sector. In the category of small
cars researcher has included all such cars which are meeting the definitions of small car as given by
Government of India in its policy document that is “A small car is one that is shorter than 4,000 mm with
an engine size smaller than 1,200 cc, if gasoline, and 1,500 cc, if diesel.”. Special emphasis is given to the
study of viability and sustainability of Tata Motor’s Nano car. Study has taken into consideration only
market viability and sustainability dimension of small cars and other dimensions of the sustainability like
environmental sustainability technical sustainability do not form the scope of this study. The research
study is confined to study the status of Indian automobile sector for five year period ranging between
years 2003 to 2008, although attempt will made to update the scenario by quoting the latest data available.
110 4.5 Research Design - Exploratory research design has been used in the initial stage of the study to
explore the possibility of carrying out the research on the topic selected for research study. For this
purpose researcher undertook the extensive literature survey. The exploratory research design was
followed by descriptive research in which described the various facts and responses received from
respondent. Research is also qualitative and quantitative in nature. Being qualitative research, researcher
has studied various qualitative aspects and attributes. Research is quantitative in the sense that researcher
has quantified the responses received from respondents to draw the logical conclusions from them. 4.6
Collection of data Present research study is based on collection of primary as well as secondary data. 4.6.1
Primary data The present research is predominately based on collection of primary data. For collection of
primary data following procedure has been adopted 4.6.2 Universe Universe constitutes all units from
which information could be gathered for carrying out a particular research study. For the purpose of
present study all persons who are car owners and using cars in India constitute the universe. 4.6.3 Sample
Sampling Technique - Simple random sampling technique is a technique in which each unit of the
universe has equal chance to be selected in sample. Simple Random sampling technique has been used to
conclude this study. 111 4. 6.4 Sampling Method Convenience sampling method- Researcher has selected
a sample of 300 respondents from each zone of India on the basis of availability as well as preparedness
of the respondents to respond without using any bias. 4. 6.5 Sampling Unit. Each and every owners and
users of cars in India is the sampling unit for this study 4. 6.6 Sample size. A sample of 1500 units has
been selected. To give the wide coverage and an all India perspective and dimension to the study the
whole country is divided in to five zones/regions viz. Northern zone, Southern zone, western Zone,
Eastern zone and Central zone. A sample of 300 units has been selected from each zone.