A

Project Study Report

On
Training Undertaken at
TATA MOTORS
Titled
“------------------ (Market Survey of Tata Nano) ------------------”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration

Submitted By: - Submitted To:-

Dr. Vikas Shrotriya
MBA Part – Co-coordinator

2007-2009
 Swami Keshvanand Institute Of Management, Technology &
Gramothan, Jaipur

Preface
The project study is a part of the curriculum of the Rajasthan Technical University, Kota for
Master of Business Administration Course. It is aimed to provide the student an industrial
exposure. Students are expected to learn the technical aspects of theoretical studies
applied in the organizations.

The future of car manufacturing in India is bright. Sensing this, foreign car manufacturers
like Ford, Toyota, Hyundai, Suzuki, Honda and Skoda are spreading their base in the
country. Domestic car manufacturers have also contributed to the growth of the automobile
industry in India.

The tiny Nano car, being sold at a base price of $2,200, already has 1 million applicants for
the 60,000 expected to roll out this year. Environmentalists fear the impact of such a cheap
car clogging streets.

Nano is an innovative step of Tata which turned the indian car industry toward a new
direction. This is the reason which attracted me towaeds the market study of Tata Nano.

2
Acknowledgement

I express my sincere thanks to my project guide, Mr./Dr./Ms./Mrs.

_______________________________________, Designation_________________,
Deptt______________., for guiding me right form the inception till the successful
completion of the project. I sincerely acknowledge him/her/them for extending their valuable
guidance, support for literature, critical reviews of project and the report and above all the
moral support he/she/they had provided to me with all stages of this project.
I would also like to thank the supporting staff ___________________________
Department, for their help and cooperation throughout our project.

(Signature of Student)

Name of the Students

3
Executive Summary

The project study is an integral part of the Post Graduate Program. I Divya Sharma a
student of Swami Keshwanand Institute of Technology Management & Gramothan chose
the organization Tata Motors Limited, Jaipur (Rajasthan) for my project study. This 15 days
period of my study in such a huge organization gave me a real time exposure to know
about the organizational working process. Tata Motors is India’s one of the largest and
oldest automobile company. It is doing its business by continuously delivering differentiated
products that provide high business value in return. I decided to do project study in Tata
Motors because it’s a larger sector that is booming now a day.

I have done this project study under Marketing, in the circle office as it is the essential part
of MBA program. I have done this internship on “Market Survey of Tata Nano” in Office in
Tata Motors Jaipur.

I took key insight into the entire process of collection of information from market in the
organization and also interacted with people personally and took their interview to collect
the information and prepared a database through questionnaire.

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Contents

1. Introduction to the Industry

1.1 History of Automobile Industry
1.2 Automobile Industry in India
1.3 Automobile Companies in India
1.4 Key Domestic & Foreign Players
1.5 The industry structure spans all segments and is concentrated in regional
clusters
1.6 Auto Components - Investments are increasing in line with the output
1.7 Competitive Advantages
1.8 Government Regulations and Support
1.9 Role of Automobile Industry in India GDP
1.10 Automobile Industry Fact Sheet 2009
1.11 Indian Car Market
1.12 The outlook for India’s automotive sector appears bright
2. Introduction to the Organization
2.1 Tata Motors Limited
2.2 History
2.3 Expansion
2.4 Products
2.5 Profit
2.6 Global operations
2.7 Future challenges
2.8 Tata Motors subsidiaries
3. Research Methodology
3.1 Title of the Study
3.2 Duration of the Project
3.3 Objective of Study
3.4 Type of Research
3.5 Sample Size and method of selecting sample
3.6 Scope of Study
3.7 Limitation of Study

5
4. Facts and Findings
5. Analysis and Interpretation
6. SWOT
7. Conclusion
8. Recommendation and Suggestions
9. Appendix
10. Bibliography

6
INTRODUCTION TO THE INDUSTRY

7
Automobile Industry, industry that produces automobiles and other gasoline-powered
vehicles, such as buses, trucks, and motorcycles. The automobile industry is one of the
most important industries in the world, affecting not only the economy but also the cultures
of the world. It provides jobs for millions of people, generates billions of dollars in worldwide
revenues, and provides the basis for a multitude of related service and support industries.
Automobiles revolutionized transportation in the 20th century, changing forever the way
people live, travel, and do business.

The automobile has enabled people to travel and transport goods farther and faster, and
has opened wider market areas for business and commerce. The auto industry has also
reduced the overall cost of transportation by using methods such as mass production
(making several products at once, rather than one at a time), mass marketing (selling
products nationally rather than locally), and globalization of production (assembling
products with parts made worldwide). From 1886 to 1898, about 300 automobiles were
built, but there was no real established industry. A century later, with automakers and auto
buyers expanding globally, automaking became the world's largest manufacturing activity,
with nearly 58 million new vehicles built each year worldwide.

As a result of easier and faster transportation, the United States and world economies have
become dependent on the mobility that automobiles, trucks, and buses provide. This
mobility allowed remote populations to interact with one another, which increased
commerce. The transportation of goods to consumers and consumers to goods has
become an industry in itself. The automobile has also brought related problems, such as air
pollution, the emission of greenhouse gases that contribute to global warming, congested
traffic, and highway fatalities. Nevertheless, the automobile industry continues to be an
important source of employment and transportation for millions of people worldwide.

History of Automobile Industry

Automobiles as we know them today are the product of centuries of tinkering and
innovation. Automobile production has grown from small companies making simple so-
called horseless carriages to international corporations that mass-produce advanced,
reliable automobiles for consumers.

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A) Early Automobile Concepts

In the 15th century, Italian inventor Leonardo da Vinci envisioned possibilities for power-
driven vehicles. By the late 17th century, English physicist Sir Isaac Newton had proposed
a steam carriage, and by the late 18th century French army captain Nicholas-Joseph
Cugnot had actually built one. By the mid-1800s, the popularity of steam vehicles began to
decline because they were dangerous to operate and difficult to maintain. At about the
same time, inventors became interested in the internal-combustion engine.

Robert Street of England filed a patent in 1794 that summarized how an internal-
combustion engine might work, but it was Belgian-born French inventor Jean-Joseph-
Etienne Lenoir who built the first commercially successful internal-combustion engine in
1859. Lenoir’s engine had a carburetor that mixed liquid hydrocarbons, which formed a
vapor. An electric spark in a cylinder ignited the vapor. By 1876 German shop clerk
Nikolaus August Otto had improved on Lenoir's engine, and the Otto engine became the
model of the internal-combustion engines used today. Germans Gottlieb Daimler and Karl
Benz attached motors to tricycles and automobiles, building what are regarded as the first
modern cars in 1885 and 1886 (DaimlerChrysler AG).

In America, lawyer George Baldwin Selden studied many of the European engines at the
Philadelphia Centennial Exposition of 1876, and then redesigned what he considered to be
the best among them. He reduced the engine weight so it could power a light road vehicle.
Selden patented his engine, so he ultimately received a royalty, or small payment, for
almost every car made in the United States.

Charles Edgar Duryea and his brother Frank are credited with the first production
automobile made in the United States. Their small company produced 13 cars in 1896,
ushering in the automobile industry. Only a few more cars were sold in the following year,
and the brothers split up to follow separate interests.

B) Henry Ford and Mass Production

Several small automobile manufacturers were making cars in the early 1900s, but American
Henry Ford helped popularize the idea that anyone could own a car. Ford successfully
challenged the Selden patent in court, opening the door for increased automobile
manufacturing. Ford achieved initial success by making cars in large quantities to reduce

9
costs and by making them simple enough so many consumers could easily operate them.
Ford standardized parts and reorganized factory production to maximize efficiency.

Ford made the sturdy, black Model T using mass production, the most economical way to
make the maximum number of similar copies of the car. He understood that efficient mass
production would lower car prices, making cars affordable for the average person, thus
generating a huge market. From 1910 to 1924, Ford cars decreased steadily in price as
they improved in quality. The Ford Model F in 1904 weighed 630 kg (1,400 lb), had a two-
cylinder motor, and sold for $1,200. By 1924 the Ford Model T touring car was heavier at
680 kg (1,500 lb), had a more powerful four-cylinder motor, and included a top and
windshield—yet it sold for only $290. Ford made only minor changes to the Model T for
nearly two decades, and more than half of the cars sold in the United States were Model Ts
during many of those years.

C) Other Automakers

While Ford was perfecting his Model T, William C. Durant established the General Motors
Corporation (GM) in 1908. Durant combined the Buick, Oldsmobile, and Oakland
companies, and later Cadillac, to form GM. The firm started by Louis Chevrolet was added
in 1918. General Motors weathered numerous financial crises in its early years, finally
gaining stability when the du Pont family bought much GM stock (since divested) in 1920.
The invention by Charles Frankin Kettering of the electric self-starter in 1912 was a
benchmark in U.S. automotive development, but others quickly followed, including balloon
tires in 1921. Among other U.S. automotive pioneers were brothers John and Horace
Dodge, machinists and bicycle builders after whom the Dodge car is named, and Waller
Percy Chrysler, a railroad worker who later formed Chrysler Corporation. Ford, GM, and
Chrysler, known as the Big Three, eventually became the dominant automakers in America.

In 1914 Ford announced a generous, unprecedented $5 per day wage for workers who
were with the company more than six months, doubling the previous wage. He wanted
workers to be able to afford the cars they made, but he also wanted to stabilize his
workforce, which had high turnover due to the repetition of assembly-line work. U.S.
assembly line production satisfied the huge American market for vehicles and allowed
American carmakers to dominate early auto manufacturing. By 1916 annual U.S. auto
production reached one million units, a level not reached by any other country until England
about 40 years later.
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By 1920 Ford's success in building an inexpensive, durable car had produced a large
secondhand car market, which meant that new Fords had to compete with old Fords. In the
late 1920s and early 1930s General Motors Chairman Alfred Pritchard Sloan, Jr., decided
to follow a different strategy. He implemented the annual model and offered different lines
of cars at different prices, creating a ladder of consumption that consumers could climb.
These concepts helped GM challenge the dominance of Ford. In 1924 GM had about 19
percent of U.S. new-car sales, and Ford had just over 50 percent. Just two years later GM
cut Ford’s lead down to 35 percent and raised GM’s market share to 28 percent.

European and Japanese automakers were also growing in this new industry. In 1914 the
company that later became Nissan Motor Co. Ltd., completed its first car in Japan. Fiat
produced automobiles in Italy, and Daimler and Benz merged together in 1926 to begin
production of the Mercedes-Benz line of automobiles. In 1928 the German manufacturer
Bayerische Motoren Werke AG (BMW), also known as Bavarian Motor Works, began
building automobiles.

D) The Great Depression of the 1930s

Numerous automobile manufacturers, both big and small, existed during the early years of
the industry, but increased competition began to reduce the number of companies. The
economic depression in the United States following the 1929 stock market crash brought
even more consolidation and competition to the auto industry. Many carmakers, such as
Duesenberg with its stylish models, disappeared during the depression. Consolidation and
sheer size, as well as innovation, helped the Big Three automakers survive. Thinking that
farmers might gain by producing crops that could be turned into fuel or raw materials, Ford
built a soybean processing plant. Soon two pounds of every Ford were made from soy
products. General Motors survived and thrived with the standard volume concept, a
financial strategy that has endured. GM set its prices to produce a 20 percent return on
investment based on what it sold in an average year. Profits soared when sales were above
average, and GM would still profit during leaner years.

E) Labor Unions and Strikes

Some discontented workers cautiously organized into labor unions during the depression in
order to improve working conditions and increase pay. By 1936 the United Automobile
Workers (UAW) planned to stop work at General Motors. Workers at a GM plant in
11
Cleveland were angered when the plant manager refused to discuss reductions in the piece
work rate, and they started one of the first so-called sit-down strike in history, where
workers sat down at their posts and refused to leave until their demands were met. The six-
week strike involved fewer than 2,000 workers, but it affected more than 150,000 other
workers in different production areas. The contract negotiated between management and
labor representatives helped boost the reputation of the UAW, although actual concessions
gained in the contract were minimal.

F) Wartime Production

World War II (1939-1945) had a drastic effect on automobile manufacturing in the United
States. After 12 years of depression, high unemployment, and labor strife, America was
attacked by the Japanese on December 7, 1941, at Pearl Harbor, Hawaii. Consequently,
the United States entered World War II. Two months later, the last passenger car for the
duration of the war rolled off the line. The automobile industry was converted to wartime
production. Chrysler Corporation mass-produced tanks, and numerous carmakers built
trucks for the military. GM built shells, bombs, fuses, navigation equipment, machine guns,
artillery, and antiaircraft guns, in addition to engines and vehicles. Ford mass-produced
bomber aircraft. The automakers more than doubled their productive capacity during the
war, and women and minorities made up a significant portion of new workers.

G) Postwar Production

Passenger car production resumed after World War II with 1946 models. U.S. automakers
had trouble meeting the pent-up demand. Suburbs sprouted up and a nationwide system of
interstate highways was planned. In 1949 new-car sales of more than 4.8 million in the
United States finally topped the old record set in precrash 1929 by almost 1 million units. By
1955 sales approached 7.2 million.

While large companies enjoyed success, smaller automobile companies and newcomers
found it increasingly difficult to compete against the expensive annual model changeovers
offered by existing manufacturers. In 1947 and 1948 American automobile pioneer Preston
Tucker began production of his Tucker Torpedo, which featured a Cyclops-like, centered
headlamp that turned with the front wheels. The design was good, but as a low-volume
manufacturer, Tucker ran into production problems, and his company collapsed after
managing to make only about 50 cars.
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In the 1950s American automobiles increased in size and sported decorative features such
as tail fins. GM built a strong sales lead during the 1950s when its cars included tail fins,
automatic transmissions, and high-compression V-8 engines. However, by the end of the
decade consumers began desiring smaller cars, and average sizes began to decrease.

H) Automobile Safety

In the early 1960s the Big Three American automakers rolled out compact cars, including
the unconventional Chevrolet Corvair, with an air-cooled six-cylinder rear engine. Because
of the rear engine placement, the car tended to oversteer, or turn more sharply at higher
speeds. In high-speed turns, the rear end tended to lift, and the first prototype flipped over
on the test track. More than one million Corvairs had been sold before corrections could be
made. American lawyer Ralph Nader publicized the defects of the Corvair and condemned
the auto industry in his book Unsafe at Any Speed (1965; revised edition, 1972), though the
National Highway Traffic Safety Administration would later declare the car as safe as other
contemporary vehicles. Automakers responded by improving structural safety and adding
features such as seat belts, collapsible steering columns, and safety windshields in their
cars.

Foreign Imports and the Energy Crisis

Europe and Japan had been busy reconstructing their manufacturing capacity in the years
following World War II, and their smaller, more fuel-efficient automobiles became popular
with the American consumer. Volkswagen AG began importing its Beetle to the United
States in the early 1950s. Sales were slow at first but steadily improved. Early Japanese
imports such as the Toyopet, manufactured by Toyoto Motor Corporation, and the Nissan
Datsun were introduced into the United States in 1958; but sales initially suffered because
there was no sound dealer network to service them. Moreover, the American public, raised
on large U.S. cars, viewed the smaller autos as second-rate. As Volkswagen sales boomed
during the 1960s, partly due to clever advertising, the Japanese imports also grew in
popularity. Toyota and Nissan eventually passed Volkswagen in sales in the United States
in 1975 and 1976.

Imported cars, with their lower price and better fuel efficiency, became very popular in the
1970s, due in part to the rising cost of gasoline. In 1973 and again in 1979, the

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Organization of Petroleum Exporting Countries (OPEC) cut off the supply of oil to the
United States. In an effort to conserve energy, the U.S. government began setting fuel
economy standards, but these often conflicted with the air pollution and safety standards it
set in the 1970 Clean Air Act. As American automakers struggled to meet these new
demands, Japanese imports skyrocketed. Japanese automakers, such as Toyota, Nissan,
and the relative newcomer Honda Motor Co. Ltd., also had the advantage of better industry-
government collaboration, newer factories, and a comparatively cheaper, more disciplined
labor force. By the end of the 1970s, Japanese automakers were selling 2.5 million cars a
year in the United States, which amounted to about one of every four units sold.

U.S. automakers responded to Japanese competition by retooling their factories to build

smaller cars. They adopted successful Japanese methods, known collectively as lean
production. Examples of this method of production include increased automation, quality
control (workers could stop the line to correct a problem, rather than marking it for future
correction), and smaller, so-called just-in-time inventories (parts were delivered to workers
on the line as they were needed, rather than in large, bulky quantities).

Auto companies responded to the fuel-consumption and air-quality demands by using

previously developed innovations. Diesel engines, catalytic converters, electronic fuel
injection, turbochargers, high-strength steels, aerodynamic bodies, front-wheel drive, and
other technologies were introduced to cut operating costs.

Automobile Industry in India

Automobile industry is one of the fastest growing industries of the world. With more than 2
million new automobiles rolling out each year, on roads of India, the industry is set to grow
further. Automobile industry made its silent entry in India in the nineteenth century. Since
the launch of the first car in 1897, India automobile industry has come a long way. Today
India is the largest three wheeler market in the world and is expected to take over China as
the second largest automobile market, in the coming years.

Indian automobile industry; manufacturing cars, buses, three wheelers, two wheelers,
commercial vehicles, heavy vehicles, provides employment to a large number of workforce.
The abolition of license raj in 1991 opened the doors for international automobile

14
manufacturers. A number of leading global automotive companies entered into joint
ventures with domestic manufacturers of India and thus started the large-scale production
of automobiles in India. Some of the well-known players of Indian automobile industry
include: Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Ford India Ltd., General
Motors India Pvt Ltd, Toyota Kirloskar Motor Ltd among others. The production of
automobiles in India is mainly for the domestic customers. Cars with 79% of automobiles in
India, dominate the automobile industry in India.
Some facts on Automobile industry in India:

• India has the fourth largest car market in the world

• India has the largest three wheeler market in India
• India is the second largest producer of two wheelers in the world
• India ranks fifth in the production of commercial vehicles.
• Hyundai Motors ranks second in car production in the world.

Market Overview

The automotive sector comprises the Original Equipment Manufacturers (OEMs) and auto
component manufacturers.
Globally, the automotive industry is recognised as a key component and driver of national
economy. The global automotive industry is in the midst of a major structural
transformation –
• Among OEMs, global conglomerates are emerging, driven by mergers and alliances
among manufacturers (eg: GM/Fiat/ Suzuki; Ford/Volvo/Mazda).
• Component manufacturers, or suppliers, are getting Tierised, with Tier 1 suppliers taking
on the role of component aggregation and module supply/assembly, and component
suppliers being relegated to Tiers 2 or 3.
• Relationships between OEMs and suppliers (especially Tier 1s) are becoming
increasingly collaborative.

These trends have affected the Indian auto industry as well, leading to a rapid
transformation of the industry over the last decade or so. After the end of licensing in 1993,
the industry has witnessed rapid growth in volumes and capacity, and 17 new ventures
have come up in the last 10 years. These include global giants such as General Motors,
Ford, Toyota, Honda, Hyundai and Fiat. The industry encompasses commercial vehicles,
multi-utility vehicles, passenger cars, two wheelers, three wheelers and auto components.
15
The domestic automobile market has been growing at 14.2 per cent CAGR over the past 4
years (2000-01 to 2004-05), while the auto components market has been growing at 19.2
per cent CAGR (2000-01 to 2003-04). The industry (OEMs and suppliers together)
contributed nearly 4 per cent to the country’s GDP in 2003-04. The automotive sector also
offers significant employment opportunities. It employs 0.45 million people directly and
around 10 million people indirectly.
The industry’s capabilities in design, engineering and manufacturing have been recognised
the world over, and most automotive majors are looking to increasingly source auto
components from India. India is emerging as one of the most attractive automotive markets
in the world, and is poised to become a key sourcing base for auto components. The table
below captures the highlights of the sector in India that illustrates its growing significance.

Reasons of Growth

Economic liberalization, increase in per capita income, various tax relief policies, easy
accessibility of finance, launch of new models and exciting discount offers made by dealers
all together have resulted in to a stupendous growth of India automobile industry.

Market Share

Automobile industry of India can be broadly classified under passenger vehicles,

commercial vehicles, three wheelers and two wheelers, with two wheelers having a
maximum market share of more than 75%. Automobile companies of India, Korea, Europe
and Japan have a significant hold on the Indian market share. Tata Motors produces
maximum numbers of mid and large size commercial vehicles, holding more that 60% of
the market share. Motorcycles tops the charts of two wheelers with Hero Honda being the
key player. Bajaj by far is the number one manufacturer of three wheelers in India.

Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of
the total market share. Maruti since long has been the biggest car manufacturer and holds
more that 50% of the entire market.

Global recession has impacted, the Indian automobile industry also and can be seen clearly
in the sales figures of the last financial year. Even then this industry has high hopes in
2009-2010, as banks have reduced loan interest rates and the major chuck of automobile

16
customers belong to the middle income group who are becoming economically stronger
with every passing day.

Automobile Companies in India

As per the history of Automobile Companies in India, in the late 1890's Tata Motors
launched its first truck in India. It was done in collaboration with Mercedes-Benz.

Though automobiles were introduced to India in the late 19th century, it was only after the
Indian independence in 1947 that India started manufacturing automobiles.

Some of the early Automobile Companies in India are:

 Hindustan Motors
 Premier Automobiles
 Tata Motors
 Bajaj Auto
 Ashok and Standard Motors

Sanjay Gandhi was the first Indian politician who championed the need for a "people's car".
Thus the state-owned firm, Maruti Udyog, was launched and gained over 50% market
share.

After the liberalization in 1991, India's Automobile Industry grew in leaps and bounds. With
the growth in the Indian economy, big international car manufacturers like General Motors,
Ford, Toyota, Honda, Hyundai, Rolls Royce, Bentley and Maybach entered the Indian
market. Earlier in the 1920's Rolls Royce collections was the maharajas status symbol. With
time the middle class also started possessing their own automobiles. With the introduction
of several automobiles in India, highways or expressways were constructed. The renowned
international automakers like Ford, Suzuki, GM and Honda have their manufacturing bases
in India. But, Automobile Industry in India is dominated by domestic companies like Maruti
Suzuki, Tata Motors, Hero Honda, Mahindra & Mahindra, Ashok Leyland and Bajaj Auto.

Milestones achieved

The milestones achieved by the Automobile Companies in India are:

17
  The first automobile in India rolled in 1897 in Mumbai.
 International players are adding to their investments in Indian auto industry.
 As far as the two-wheelers are concerned, motorcycles contribute 80% of the
segment size.
 The Indian passenger vehicle market is dominated by cars by 79%.
 India’s Automobile Industry is the largest three-wheeler market in the world.
 India is the largest two-wheeler manufacturer in the world.
 India is the second largest tractor manufacturer in the world.
 The Automobile Industry in India is the fifth largest commercial vehicle manufacturer in the
world.
 India is the fourth largest car market in Asia.

Latest News in the Industry

The latest in the world of Indian Automobile Companies are:

 Hyderabad is coming up with the first automobile mall of the country by 2008. It will also
comprise a multi-purpose convention center and product launches.
 The latest car in the Indian Automobile Industry is the Tata Nano. It costs approx US$ 2,500,
while Bugatti Veyron, another new car, costs over US$ 2 million.
 Facts have revealed that the Automobile Industry in India employs 13 million individuals in
India. This industry contributes about 3.1% of India's GDP (nominal).
 Renault Nissan Automotive India Private Limited (RNAIPL) is launching its new passenger
vehicle plant in Chennai, India which is expected to begin operations in 2010.
 India launched its first hybrid car, the sedan Civic by Japan’s Honda Motor Co. on Wednesday,
June 18, 2008.
 Due to levying of additional excise duty by the government, there is a hike in the cost of
imported luxury cars.

Key Domestic & Foreign Players

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 Name of Parent Output Models Plants

the Company

Company
Tata Motors Largest commercial Capacity- • Sierra • Pune

Ltd. vehicle player in the 160,000 units • Sumo (Maharashtra)

country and one of pa

the • Safari
Volumes-
largest in the • Indica
171870 units
passenger vehicle
Operating • Indigo
segment.
Income-

US$ 3.8

billion

Mahindra & Flagship company of Capacity- • Armada • Mumbai

Mahindra the Mahindra Group; 125,000 units • Nashik

• Bolero
Ltd largest player in the pa (Maharashtra)

tractor segment in Volumes- • Comman

der
India. 69737 units
• Marshall
Operating
• Maxx
Income-
• Voyager
US$ 1.47
• Scorpio
billion

Hindustan A C. K Birla Group Capacity- • Lancer Uttarpara

Motors Ltd. flagship and one of 64,000 units • Ambassa (WB)

do
the oldest auto pa Pithampur
• Contessa

19
 company in India Volumes- (MP)
• Trekker
15,782 units Trivello
• RTV
Operating (Tamil Nadu)
• Pushpak
Income-
• Pajero
US$ 159.7

million

Ashok Hinduja Group Operating • Multiaxle Ennore

Leyland Income- Vehicle Hosur

US$ 952.9 • Tractor

Alwar
million
• Ecomet
Bhandara
• Engines
Hyderabad
• Viking
BS-I

• Viking
BS-II

• Vestibule

Bus

• 222 CNG

Bus

TVS Motors TVS Groups Operating Mopeds Hosur

Income- - Excel Mysore

US$ 641.9 - Champ

million - TVS

50Scoote-

rettes

- Scooty

20
 • Motorcycl
e

- Max 100

- Victor

- Centra

- Fiero

Bajaj Auto Bajaj Group Capacity- • Motorcycl Akurdi

es
2.52 million Waluj
- Boxer
units pa Chakan
- CT 100
Operating
- Discover
Income-
- Wind
US$ 1.3
- Caliber
billion
- Pulsar

- Eliminator

• Scooters

- Spirit

- Saffire

- Wave

LML Lohioa Group Freedom Kanpur

Graptor

Profile of Overseas Players

Name of Parent Output Models Plants

the Company

Company

21
Maruti Suzuki of Japan Capacity- 800 Gurgaon

Udyog holds a 54.2 per 500,000 Omni (Haryana)

Ltd. cent stake in the units pa Alto

company Volumes- WagonR

472,122 Zen
units
Baleno
including
Esteem
exports
Gypsy
Operating
Vitara
Income-
Versa
US$ 2.4

billion

Hyundai Wholly owned Capacity- Santro Irrungattu-

Motors subsidiary of Hyundai 150,000 Accent Kottai

India Motor Co., S. Korea units pa Sonata (Tamil Nadu)

Ltd. Volumes- Terracan

171,905

units
Daimler 100 per cent Capacity- E class • Pune

Chrysler subsidiary of Daimler 10,000 units S class (Maharashtra

)
India Chrysler Group pa C class

Volumes-

1.640 units

Fiat Motors Subsidiary of Fiat Capacity- Uno Mumbai

Auto SpA 50,000 units Siena (Maharashtra)

pa Palio

22
 Volumes- Palio

10,428 units Adventure

Ford Ford Motor Company, Capacity- Ikon Chengaipattu

Motors the world’s second 100,000 Mondeo (Tamil Nadu)

Ltd. largest automaker units pa

Volumes-

45,723 units

General Collaboration Capacity- Astra Halol

Motors Ltd between 25,000 units Corsa (Gujrat)

General Motors pa Swing

Corporation and C.K. Volumes- Forrester

Birla Group of 17,986 units Vectra
Companies
Sail

Optra

Chevrolet

Honda Siel Established in 1995, Capacity- City Noida (UP)

Cars India with Honda Motor 30,000 units Accord

(HSCI) Company, (Japan) pa CR - V

and Siel Ltd (India) Volumes-

being the key 20,550 units

promoters.

Toyota Joint venture between Capacity- Qualis Bidadi

Kirloskar Kirloskar Group and 50,000 units Camry (Karnataka)

Toyota Motor Corp. pa Corolla

Volumes-

23
 42,549 units

Skoda Auto Skoda Auto, based in Capacity- Octavia Aurangabad

(Maharashtra
India Czech Republic, is a 10,000 units Laura )

Part of Volkswagen pa

group Volumes-

3,712 units

Hero Joint venture between Capacity- Motorcycles Daruhera

Honda Hero Group, the 2.8 million - CD Dawn Gurgaon

world’s largest bicycle units pa - CD Deluxe

Manufacturers and Operating - Splendour

the Honda Motor Income- - Passion

Company of Japan US$ 1.66 - Karizma

billion - CBZ

- Ambition

- Street

Honda Wholly owned Capacity- • Scooters Manesar

200,000
Motorcycle subsidiary of Honda - Activa
& Vehicles
Motor Company Ltd. - Dio
pa
Scooters
Japan - Eterno
India Pvt.
• Motorcycl
Ltd es

(HMSI) - Unicon

24
The industry structure spans all segments and is concentrated
in regional clusters

The India automotive sector has a presence across all vehicle segments and key
components. In terms of volume, two wheelers dominate the sector, with nearly 80 per cent
share, followed by passengervvehicles with 13 per cent. The industry had few players and
was protected from global competition till the1990s. After government lifted licensing in
1993, 17 new ventures have come up. At present, there are 12 manufacturers of passenger
cars, 5 manufacturers of multi utility vehicles (MUVs), 9 manufacturers of commercial
vehicles, 12 of two wheelers and 4 of three wheelers, besides 5 manufacturers of engines.
With the arrivalof global players, the sector has become highly competitive.

Concentrated in regional clusters

Automobile manufacturing units are located all over India. These are, however,
concentrated in some pockets such as Chennai and Bangalore in the south, Pune in the
west, the National Capital Region (NCR), which includes New Delhi and its suburban
districts) in the north, Jamshedpur and Kolkata in the east and Pithampur in the central
region.
Following global trends, the Indian automotive sector also has most auto suppliers located
close to the manufacturing locations of OEMs, forming regional automotive clusters.
Broadly, the three main clusters are centered around Chennai, Pune and the NCR.

Auto Components sector is highly fragmented

The Indian automotive component industry is highly fragmented. There-are nearly 6,400
players in the sector, of which only about 6 per cent are organised and the remaining 94 per
cent are small-scale, unorganized players. In terms of value added, however, the organised
players account for nearly 77 per cent of the output in the sector.
The sector manufactures components across all key vehicle systems. The break-up of the
output from the organised sector, in value terms, across key vehicle systems, is shown in
the figure.

25
The automotive sector is growing strongly in both domestic and exports
markets

Indian automobile industry has been performing well both in the domestic and the
international markets.

Automobiles - Domestic Performance

The production and domestic sales of the automobiles in India have been growing strongly.
While production increased from 4.8 million units in 2000-1 to 8.5 million units in 2004-05
(a CAGR of over 15 per cent), domestic sales during the same period have gone up from
4.6 million to 7.9 million units (CAGR 14.2 per cent).
A positive trend in the domestic market is that the growth has not been driven by one or two
segments, but is consistent across all key segments. Two wheelers, which constitute the
majority of the industry volume, have been growing at a rate of 14.3 per cent, three
wheelers at a rate of 14 per cent and passenger vehicles at a rate of 11.3 per cent.
Commercial vehicles have been growing at a higher rate of nearly 23.5 per cent, although
from a lower base.

26
Since nearly all macro-economic indicators – GDP, infrastructure, population
demographics, interest rates, etc. – are showing a favourable trend, the domestic market
for automobiles in India is expected to continue on its growth trajectory.

Commercial Vehicles

The commercial vehicle production in India increased from 156,706 in 2001 to 350,033 in
2005. This segment can be divided into three categories – heavy commercial vehicles
(HCVs), medium commercial vehicles (MDVs or MCVs) and light commercial vehicles
(LCVs). Medium and heavy commercial vehicles formed about 62 per cent of the total
domestic sales of CVs in 2004. These segments have also been driving growth, having
grown at a CAGR of nearly 24.7 per cent over the past five years. The key trends facilitating
growth in this sector are the

27
development of ports and highways, increase in construction activities and agricultural
output. With better roads and highway corridors linking major cities, the demand for larger,
multi-axle trucks is increasing in India.

Passenger Vehicles

Passenger vehicles consist of passenger cars and utility vehicles. This segment has been
growing at a CAGR of 11.3 per cent for the past four years. A key trend in this segment is
that with rising income levels and availability of better financing options, customers are
increasingly aspiring for higher-end models. There has been a gradual shift from entry-level
models to higher-end models in each segment.

For example, in passenger cars, till recently, the Maruti 800 used to define the entry level
car, and had a predominant market share. Over the last 3-4 years, higher-end models such
as Hyundai Santro, Maruti Wagon R, Alto and Tata Indica have overtaken the Maruti 800.
Another development has been the blurring of the dividing line between utility vehicles and
passenger cars, with models like Mahindra & Mahindra’s Scorpio attracting customers from
both segments. Upper end sports utility vehicles (SUVs) attract potential luxury car buyers
by offering the same level of comfort in the interiors, coupled with on-road performance
capability.

28
Two wheelers

The production of two wheelers in India increased from 3.76 million vehicles in 2001 to 6.53
million vehicles in 2005.

The domestic sales have been increasing at a CAGR of 14.3 per cent for the past 4 years.
Motorcycles constituted 79.5 per cent of the domestic sales of two wheelers in India and
have been growing at nearly 24 per cent CAGR.
In thescooter segment, overall domestic sales grew by 1.3 per cent CAGR, driven primarily
by ungeared scooters and scooters with automatic gears. The sales of mopeds have
declined at a CAGR of 15.9 per cent for the past four years. The motorcycle segment
clearly drives the growth of the two wheeler segment in India.
The two wheeler segment is being shaped by changing demographics and lifestyles. An
increasing number of working women and greater affluence among college goers have led
to an increase in demand for ungeared/auto geared scooters. As with the case of
passenger vehicles, there is a rising demand for higher-end models that combine style and
performance in this segment as well. In motorcycles, for example, models with higher
engine capacities (125cc, 150cc or above) are proving very popular.

Three wheelers

The three wheeler segment in India is currently small in size, but growing rapidly. The
production of three wheelers in India has increased from 203,234 vehicles in 2001 to
374,414 vehicles in 2005. The domestic sales have increased at a CAGR of 14 per cent for
the past four years from 181,899 vehicles in 2001 to 307,887 vehicles in 2005. These
vehicles find use

29
as passenger vehicles (auto-rickshaws) as well as small capacity commercial vehicles
(pick-up vehicles).

Auto Components - Investments are increasing in line with the

output
According to Automotive Component Manufacturers Association of India (ACMA), the
output of auto component industry in India has increased at a CAGR of around 25 per cent
for the past three years from US$ 4470 million in 2002 to US$ 8700 million in 2005. With
booming
domestic sales and increasing demand from exports, the confidence of industry players is
high. This is reflected in the increase in investments in capacity creation and expansion.
Investments in this sector have increased from US$ 2300 million in 2002 to US$ 3950
million in 2005, a CAGR of 20 per cent.

Exports of automobiles from India are booming

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

30
Exports growth has been spearheaded by the passenger vehicle segment, which has
grown at a rate of 57.4 per cent. As a result, the share of passenger vehicles in overall
vehicle exports has increased from 18 per cent in 1998-99 to 26 per cent in 2004-05.

Auto Components exports – large potential

Auto component exports from India grew from US$ 760 million in 2002-03 to an estimated
US$ 1.4 billion in 2004-05. Key export destinations include the Americas (31.1 per cent),
Europe (30.3 per cent), Asia (18.2 per cent), Africa (10.7 per cent) and the Middle East (7.6
per cent).
Most of the key auto component manufacturers in India are very positive about the outlook
for exports, and expect about 15 per cent of their revenue to come from exports over the
next 3-5 years. It has been estimated that exports of auto components from India could be
around US$ 20-25 billion by 2015.

31
Competitive Advantages

India has several competitive advantages in the automobile sector, which have been
analysed using the following framework.

32
Availability of skilled manpower with engineering and design capabilities

India has a growing workforce that is English-speaking, highly skilled and trained in
designing and machining skills required by the automotive and engineering industries. In a
combined assessment of manpower availability and capabilities, India ranks of other
competing economies.

Many Indian and global players are leveraging this advantage by increasingly outsourcing
activities like design and R&D to their Indian arms. The Society of Indian Automobile
manufacturers (SIAM) estimates that automotive vehicle manufacturers are expected to
invest US$ 5.7 billion in the Indian market from 2005 to 2010. Of this, about US$ 2.3 billion
will be on research and development and the rest probably on capex. Some examples of
investment in areas leveraging the engineering and design capabilities of India include:
• MICO, the Indian operation of Bosch and a key player in fuel injection equipment,
ignition systems and electricals, has invested in the MICO Application Centre (MAC)
for R&D. It has emerged as a key global R&D competency centre catering to the entire
Bosch Group. It is the first of its kind in India and the Bosch Group’s first outside
Europe.
• GM set up a technical centre at Bangalore that became fully operational in September
2003. The centre focuses on both R&D and engineering, and takes up high-value work

33
 to complement current research programmes, as well as new exploratory research
projects.
• Ford set up Ford Information Technology Services India (FITSI) in Chennai, which caters to
the software requirements of Ford Motor Company in the region and around the world.
FITSI develops solutions for Ford worldwide. For example, it developed web-based
customer relationship services for Ford India, Australia and South Africa. In addition,
Ford has shifted the CAD/CAM development, e-mail processing and application
development from worldwide operations to India’s FITSI.

Competitive industry, with global players

Segment Key Players

Commercial Tata Motors, Ashok Leyland, Swaraj Mazda, Mahindra &
Vehicles Mahindra, Bajaj Tempo, Eicher Motors
Passenger Tata Motors, Maruti Udyog, Honda Motors,Hyundai Motors,
Vehicles Toyota, Skoda, Mahindra & Mahindra, Daimler Chrysler,
Hindustan Motors
Two Wheelers Hero Honda, Honda Motors, Bajaj Auto, TVS Motors, Yamaha,
Kinetic Engineering
Three Wheelers Bajaj Baja Auto, Piaggio India

The Indian automobile industry is highly competitive with a large number of players in each
industry segment. Most of the global majors are present in the passenger vehicle and two
wheeler segments. In the components industry too, global players such as Visteon, Delphi
and Bosch are well established, competing with domestic players.
The presence of global competition has led to an overall increase in capabilities of the
Indian auto sector. Increase in competition has led to a pressure on margins, and players
have become increasingly cost efficient. Quality levels have gone up, and there is an
increasing focus on compliance to TPM, TQM and Six Sigma processes. This has led to an
increased confidence among domestic players, who are now focusing on opportunities
abroad. Key players in the components sector like Bharat Forge and Sundaram Fasteners
have become key global suppliers in their categories.

Large market with significant potential for growth in demand

34
India offers a huge growth opportunity for the automobile sector – the domestic market is
large and has the potential to grow further in the future due to positive demographic trends
and the current low penetration levels.

Large target consumer base and rising income levels:

India has nearly 23 per cent of the global population and is one of the most attractive
consumer markets in the world today. Income levels across population segments have
been growing in India. According to National Council of Applied Economic Research
(NCAER) data, the consuming class, with an annual income of US$ 980or above, is
growing and is expected to constitute over 80 per cent of the population by 2009-10.

In addition, a large proportion of the Indian population is relatively young - in the age group
of 20-59 years. This is expected to further boost the automotive domestic market as a
younger population has a higher consumption index.
The rise in income levels of the Indians and the emergence of the consuming class that has
higher propensity to spend offers great opportunities for growth to companies across
various
sectors.

35
Changing lifestyles, driving demand for new segments

Consumers in India are now more informed, sophisticated and demanding. Urban
consumers have been especially exposed to western lifestyles through overseas travel For
example, more than 5 million Indians traveled overseas last year and this number is
expected to increase by 15 per cent to 20 per cent per annum. An increase in the number
of working women and the prevalence of nuclear double-income families, especially in
urban areas, are other trends shaping lifestyles.
These changes are driving an increased need for personal transport, especially in
segments like working women, young executives and teenagers. This has led to the growth
in demand for motorcycles, ungeared and automatic scooters and compact cars. Across the
automobile spectrum, consumer aspirations are driving demand for upper end models in all
segments.

Presence of strong industry associations and supporting industries

Industry Associations

The Indian automotive industry is well served by the two industry associations – Society of
Indian Automobile Manufacturers (SIAM) that represents the OEMs and Automotive
Components Manufacturers’ Association (ACMA) that represents the components industry.
Both associations actively engage with industry, government and other stakeholders to
promote the interests of the industry and improve competitiveness.

36
Supplier base
Indian automobile manufacturers are well supported by the automotive component industry.
Indian companies produce a range of automotive components like engine parts, electrical
parts, equipments etc.
Ford is leveraging the large, high quality automotive supplier base of India and has made
India a component-sourcing base. This has helped Ford reduce the cost of manufacturing
and increase its exports. Ford India awarded the supplier status to 10 suppliers to help
them export their products to Ford worldwide.

Government Regulations and Support

The Government of India (GoI) has identified the automotive sector as a key focus area for
improving India’s global competitiveness and achieving high economic growth. The
Government formulated the Auto Policy for India with a vision to establish a globally
competitive industry in India and to double its contribution to the economy by 2010. It
intends to promote Research & Development in automotive industry by strengthening the
efforts of industry in this direction by providing suitable fiscal and financial incentives. Some
of the policy initiatives include:
• Automatic approval for foreign equity investment up to 100 per cent of manufacture of
automobiles and component is permitted.

37
• The customs duty on inputs and raw materials has been reduced from 20 per cent to
15 per cent. The peak rate of customs duty on parts and components of battery-
operated vehicles have been reduced from 20 per cent to 10 per cent. These new
regulations would strengthen India’s commitment to globalisation. Apart from this,
custom duty has been reduced from 105 per cent to 100 per cent on second hand cars
and motorcycles.
• National Automotive Fuel Policy has been announced, which envisages a phased
programme for introducing Euro emission and fuel regulations by 2010.
• Tractors of engine capacity more than 1800 cc for semi-trailers will now attract excise
duty at the rate of 16 per cent.
• Excise duty is being reduced on tyres, tubes and flaps from 24 per cent to 16 per cent.
Customs duty on lead is 5 per cent.
• A package of fiscal incentives including benefits of double taxation treaty is now
available.
These government policies reflect the priority government accords to the automobile sector.
A liberalised overall policy regime, with specific incentives, provides a very conducive
environment for investments and exports in the sector.

Role of Automobile Industry in India GDP

The Role of Automobile Industry in India GDP has been phenomenon. The Automobile
Industry is one of the fastest growing sectors in India.

The increase in the demand for cars, and other vehicles, powered by the increase in the
income is the primary growth driver of the automobile industry in India. The introduction of
tailor made finance schemes, easy repayment schemes has also helped the growth of the
automobile sector.

Facts

• India has become one of the international players in the automobile market
• In the year 2006-07, the Indian Automobile Industry produced 2.06 million four
wheelers and 9 million two and three wheelers

38
• The four wheelers include passenger cars, multi-utility vehicles, sports utility vehicles,
light, medium and heavy commercial vehicles, etc
• The three wheelers include mopeds, motor-cycles, scooters, and three wheelers
• India ranks 2nd in the global two-wheeler market
• India is the 4th biggest commercial vehicle market in the world
• India ranks 11th in the international passenger car market
• India ranks 5th pertaining to the number of bus and truck sold in the world
• It is expected that the Automobile Industry in India would be the 7th largest automobile
market within the year 2016

Role of Automobile Industry in India GDP-Sales Trends

• In the year 2006-07 the number of Passenger Car sold were 10,76,408
• In the year 2006-07 the number of Passenger Vehicles sold were 13,79,698
• In the year 2006-07 the number of Commercial Vehicles sold were 4,67,882
• In the year 2006-07 the number of Three Wheelers sold were 4,03,909
• In the year 2006-07 the number of Two Wheelers sold were 78,57,548
• In the year 2006-07 the number of automobile sold were 1,01,09,037

Role of Automobile Industry in India GDP-Growth

• The growth rate of the Passenger Cars in the year 2007 is 13.50%
• The growth rate of the Utility Vehicles in the year 2007 is 10.10%
• The growth rate of the Multi Purpose Vehicles in the year 2007 is 24.40%
• The growth rate of the Light Commercial Vehicles in the year 2007 is 16.05%
• The growth rate of the Commercial Vehicles in the year 2007 is 3.43%
• The Maruti Udyog Ltd is the largest car manufacturer in the country and the rate of
growth in the year 2007 was 20.7%
• The Mahindra & Mahindra Ltd's cumulative sales for the year 2007 was 1,06,094 units
and the rate of growth was 35.8%
• The Honda Siel Cars India Ltd, the leaders in India pertaining to the manufacturing of
premium cars, registered a growth of 16.1 % during the year 2007 and sold 41,638
units
• The Daimler Chrysler sales for the year 2007 was 1,681 units in India and the growth
rate was more than 22%

39
• The General Motors India, registered a 114% increase in the national sales in the
August of 2007
• The Hero Honda sold more than 2 million units in the Jan-Aug period of the year 2007
• The export pertaining to the motorbikes was 3,21,321 units in the year 2007
• It is estimated that in the year 2007-08 the motorcycle sales would be 7 million, the car
sales would be 1.55 million, and the two-wheelers sales would be 8.3 million

Automobile Industry in India-New Models

• Maruti sedan SX4 and Zen Estilo

• Mahindra Renault Logan,
• General Motors Chevrolet Spark, Aveo, and Aveo UV-A
• Hyundai Verna
• Fiat Palio 1.1 litre version,
• Volvo Car S80 sedan and XC90 SUV,
• Tata Motors Magic and Winger,
• Volkswagen Passat
• Mitsubishi Cedia

Role of Automobile Industry in India GDP-Foreign Investments

• The Indian Automobile industry is at present engaged in mergers and acquisitions on

the international scale
• The Indian automobile industry's foreign sector worth US$ 515 million
• The Mahindra and Mahindra company will be establishing a utility assembly plant in
collaboration with Bramont, a local company at Manuas, in North Brazil
• In Egypt, the Mahindra and Mahindra company has set up assembly plants in
collaboration with the Bavarian Motors
• The Tata Motors have entered the passenger car market in Saudi Arabia with the
launch of Tata Indigo, Tata Indica, and Tata Indigo Marina
• The TVS Motor Company has established a two-wheeler manufacturing unit at
Karawang, in Indonesia
• The Maruti Udyog Ltd has captured nearly 60% of the small car market in Indonesia
• The Nissan Motor facility in South Africa was acquired by the Tata Motors to
manufacture Tata vehicle for European and South African market

40
• The Jaguar and Land Rover companies owned by the Ford Motor Company was
acquired by the Tata Motors Ltd for estimated price of US$ 1.5 billion

Automobile Industry Fact Sheet 2009

Key Facts

In total more than 800,000 people are employed in the UK automotive sector, from supply
chain through to sales, service and repair. Automotive manufacturing provides 180,000 jobs
and contributes some £10.3 billion value-added to the UK economy which is 6.4% of the
total for the whole UK manufacturing sector.
The UK is home to Europe’s most diverse and productive vehicle manufacturing base,
produces some of the most successful and globally desirable products and accounts for
over 11% of the UK’s total exports.
The UK was the third largest car market in the EU in 2008 with 2.13 million new cars
registered, equating to 14% of total European vehicle registrations.There are 27 car and
commercial vehicle manufacturers operating in the UK, including seven volume car and
nine commercial vehicle manufacturers. Exports account for 75% of all UK vehicle
production, serving more than 100 markets around the world.
There are over 2,000 component manufacturers in the UK, including 19 out of the world’s
top 20 suppliers. Together they employ around 106,000 people and export more than £5
billion worth of goods annually, 75% of which is destined for Europe.
The automotive industry is committed to reducing its impact on climate change, with
average CO2 emissions from cars in the UK falling 17% in the last decade, despite an
increase in the number of cars on the road.
Each vehicle made in the UK requires half the energy to produce than it did just five years
ago, saving an estimated 700,000 tonnes of CO2 each year.

Headline Figures
2007 2008 % Change
Car registration 2,404,007 2,131,795 -11.3
Light CV registrations < 3.5 tonnes 337,741 289,463 -14.3
Heavy CV registrations > 3.5 tonnes 50,747 57,410 13.1
Bus and coach registration 3,993 4,511 13.0
Car production 1,534,567 1,446,619 -5.7

41
Commercial vehicle production 215,686 202,896 -5.9

Registration Forecasts
2009 registrations:
Cars: 1.720 million, -19.3% on 2008
LCV: 207,000, -28.5% on 2008
2010 registration:
Cars: 1,790 million, up 4.1% on 2009
forecast
LCV: 222,500, up 7.5% 0n 2009 forecast
(Figure based on January 2009 forecast)

Indian Car Market

Indian Car Market attained a huge volume over the years with the increase in the
opportunity for new investments in the manufacturing of cars in India. The increasing GDP
rate, the rising per capita income, growing population and high ownership capacity led to
the boom in the Indian Car Market.

Causes for the boom

From the last 15 years due to the liberalization of the Indian economy the entire market
scenario have undergone a change with the rich growing richer with time. Moreover, the
rise in the income level, change in the general lifestyle, increase in foreign traveling and the
easy accessibility of car finance on the basis of affordable installments and interest rates
have been the main driving forces behind the flourishing Indian Car Market.

Car Manufacturers in India

Once the most popular car dominating the Indian Car Market was the Ambassador, till the
Indian car maker Maruti in the collaboration with the Japanese car giant Suzuki brought a

42
change in the Indian Car Market. However, today, there are numerous car companies with
new models coming up everyday in the car market of India. Some of the leading brands are
like, Hindustan Motors, Reva Electric Car Co., Daimler Chrysler India Private Ltd, Fiat India
Private Ltd., Ford India Ltd., General Motors India, Honda Siel Cars India Ltd., Hyundai
Motors India Ltd.,Toyota Kirloskar Motor Ltd. and Skoda Auto India Private Ltd.

Luxury and super luxury car market

In the Indian Car Market demand for luxury and super luxury cars are increasing
continuously. Their attractive designs and brand names are the main reasons for the
growing need among many Indians who can afford these cars. Several luxury models are to
be launched in India in the coming years. As a result Indian Car Market is no longer alien to
the luxury car companies like Mercedes Benz, Ferrari, Aston Martin and Rolls-Royce.

Small car market

However, it is the small car segment which still rules the Indian Car Market. During 2006-
07, over 7.5 lakh compact cars were sold, with total sales record being around 1.2 million.
Taking into account the bustling business in the small car sector in the car market of India,
Honda Siel Cars has planned to introduce an entry level compact car, in competition with
the small cars like Hyundai Santro, Maruti Wagon R, Zen Estilo and Chevrolet Spark.
Another company, Skoda Auto India Private Ltd., announced the launching of their first new
small car model Skodafabia, in the car market of India this year.

Governmental strategies

The Government of India have taken some initiatives like the liberalizing the foreign
exchange and equity regulations, relaxing the tariffs on imports and redesigning the
banking policies which have boosted the Indian Car Market to a great extent. Thus, the
demand for all types of cars from luxurious models, SUVs to mini-cars have reached a
height in the Indian Car Market.

Future prospects

The attractive prospects of the Indian Car Market have prepared the ground for a large
number of multi-national automobile companies from Japan, U. S. A., and Europe to come
43
here and work in collaboration with the Indian firms. It is expected that with this growth rate
of the Indian Car Market, it will be the third largest automobile market of the world by 2030
after China and the US.

The outlook for India’s automotive sector appears

bright

The outlook for India’s automotive sector is highly promising. In view of current growth
trends and prospect of continuous economic growth of over 5 per cent, all segments of the
auto industry are likely to see continued growth. Large infrastructure development projects
underway in India combined with favorable government policies will also drive automotive
growth in the next few years. Easy availability of finance and moderate cost of financing
facilitated by double income families will drive sales in the next few years.

India is also emerging as an outsourcing hub for global majors. Companies like GM, Ford,
Toyota and Hyundai are implementing their expansion plans in the current year. While Ford
and Toyota continue to leverage India as a source of components, Hyundai and Suzuki
have identified India as a global source for specific small car models.

At the same time, Indian players are likely to increasingly venture overseas, both for
organic growth as well as acquisitions. The automotive sector in India is poised to become
significant, both in the domestic market as well as globally.

44
INTRODUCTION TO THE ORGANIZATION

45
Tata Motors Limited

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000
crores in 2005-06. Its name comes first in the category of commercial vehicles and the
second largest in the passenger vehicles, mid size car and utility vehicle segments. The
company is the world's fifth largest medium and heavy commercial vehicle manufacturer.

Over 3.5 million Tata vehicles is moving on Indian roads, since 1954. Its manufacturing
plant is located at Jamshedpur, Pune and Lucknow.

History
Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji 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 Daimler-Benz AG of Germany.

Milestones

It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence
and leadership.

Ye Milestones
ar
1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture
locomotives and other engineering products.
1948 Steam road roller introduced in collaboration with Marshall Sons (UK).
1954 • Collaboration with Daimler Benz AG, West Germany, for manufacture of
medium commercial vehicles. The first vehicle rolled out within 6 months of
the contract.
1959 Research and Development Centre set up at Jamshedpur.
1961 Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966 • Setting up of the Engineering Research Centre at Pune to provide
impetus to automobile Research and Development.
1971 Introduction of DI engines.
1977 First commercial vehicle manufactured in Pune.
46
1983 Manufacture of Heavy Commercial Vehicle commences.
1985 First hydraulic excavator produced with Hitachi collaboration.
1986 • Production of first light commercial vehicle, Tata 407, indigenously
designed, followed by Tata 608.
1989 Introduction of the Tatamobile 206 - 3rd LCV model.
1991 Launch of the 1st indigenous passenger car Tata Sierra.
TAC 20 crane produced.

One millionth vehicle rolled out.

1992 Launch of the Tata Estate.
1993 • Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.
1994 Launch of Tata Sumo - the multi utility vehicle.
Launch of LPT 709 - a full forward control, light commercial vehicle.
• Joint venture agreement signed with M/s Daimler - Benz / Mercedes -
Benz for manufacture of Mercedes Benz passenger cars in India.

• Joint venture agreement signed with Tata Holset Ltd., UK for

manufacturing turbochargers to be used on Cummins engines.
1995 Mercedes Benz car E220 launched.
1996 Tata Sumo deluxe launched.
1997 Tata Sierra Turbo launched.

100,000th Tata Sumo rolled out.

1998 Tata Safari - India's first sports utility vehicle launched.
2 millionth vehicle rolled out.

Indica, India's first fully indigenous passenger car launched.

1999 115,000 bookings for Indica registered against full payment within a week.

Commercial production of Indica commences in full swing.

2000 First consignment of 160 Indicas shipped to Malta.
Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.
Utility vehicles with Bharat 2 (Euro II) compliant engine launched.
Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.
Launch of CNG buses.

Launch of 1109 vehicle - Intermediate commercial vehicle.

2001 Indica V2 launched - 2nd generation Indica.
47
 100,000th Indica wheeled out.
Launch of CNG Indica.
Launch of the Tata Safari EX
Indica V2 becomes India's number one car in its segment.

Exits joint venture with Daimler Chrysler.

2002 Unveiling of the Tata Sedan at Auto Expo 2002.
Petrol version of Indica V2 launched.
Launch of the EX series in Commercial vehicles.
Launch of the Tata 207 DI.
2,00,000th Indica rolled out.
5,00,000th passenger vehicle rolled out.
Launch of the Tata Sumo'+' Series
Launch of the Tata Indigo.

Tata Engineering signed a product agreement with MG Rover of the UK.

2003 Launch of the Tata Safari Limited Edition.
The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.
On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering
Tata Motors Limited.
3 millionth vehicle produced.
First CityRover rolled out
135 PS Tata Safari EXi Petrol launched

Tata SFC 407 EX Turbo launched

2004 Tata Motors unveils new product range at Auto Expo '04.
New Tata Indica V2 launched
• Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment
agreement
• Indigo Advent unveiled at Geneva Motor Show
• Tata Motors completes acquisition of Daewoo Commercial Vehicle
Company
• Tata LPT 909 EX launched
• Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy

48
 duty truck 'NOVUS' , in Korea
• Sumo Victa launched
• Indigo Marina launched

• Tata Motors lists on the NYSE

2005 • Tata Motors rolls out the 500,000th Passenger Car from its Car Plant
Facility in Pune
• The Tata Xover unveiled at the 75th Geneva Motor Show
• Branded buses and coaches - Starbus and Globus – launched
• Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus
manufacturing Company
• Tata Ace, India's first mini truck launched
• Tata Motors wins JRD QV award for business excellence.
• The power packed Safari Dicor is launched
• Introduction of Indigo SX series - luxury variant of Tata Indigo
• Tata Motors launches Indica V2 Turbo Diesel.
• One millionth passenger car produced and sold
• Inauguration of new factory at Jamshedpur for Novus
• Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched
• Launch of Tata Novus

• Launch of Novus range of medium trucks in Korea, by Tata Daewoo

Commercial Vehicle Co. (TDCV)
2006• Tata Motors vehicle sales in India cross four million mark
• Tata Motors unveils new long wheel base premium Indigo & X-over
concept at Auto Expo 2006
• Indica V2 Xeta launched
• Passenger Vehicle sales in India cross one-million mark
• Tata Motors and Marcopolo, Brazil, announce joint venture to
manufacture fully built buses & coaches for India & markets abroad
• Tata Motors first plant for small car to come up in West Bengal
• Tata Motors extends CNG options on its hatchback and estate range
• TDCV develops South Korea's first LNG-Powered Tractor- Trailer
• Tata Motors and Fiat Group announce three additional cooperation
49
 agreements

• Tata Motors introduces a new Indigo range

2007 • Construction of Small Car plant at Singur, West Bengal, begins on
January 21
• New 2007 Indica V2 range is launched
• Tata Motors launches the longwheel base Indigo XL, India's first stretch
limousine
• Common rail diesel (DICOR) engine extended to Indigo sedan and
estate range
• Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi),
announce formation of a joint venture company in Thailand to manufacture,
assemble and market pickup trucks.
• Roll out of 100,000th Ace
• Tata-Fiat plant at Ranjangaon inaugurated
• Launch of a new Upgraded range of its entry level utility vehicle offering,
the Tata Spacio.
• CRM-DMS initiative crosses the 1000th location milestone
• Launch of Magic, a comfortable, safe, four-wheeler public transportation
mode, developed on the Ace platform
• Launch of Winger, India’s only maxi-van
• Fiat Group and Tata Motors announce establishment of Joint Venture in
India
• Launch of the Sumo Victa Turbo DI, the new upgraded range of its
entry-level utility vehicle, the Sumo Spacio
• Tata Motors launches Indica V2 Turbo with dual airbags and ABS
• Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L
Direct Injection Common Rail (DICOR) engine.

• Rollout of the one millionth passenger car off the Indica platform.
2008 Ace plant at Pantnagar (Uttarakhand) begins production.
Indica Vista – the new generation Indica, is launched.
Tata Motors' new plant for Nano to come up in Gujarat.
Latest common rail diesel offering- the Indica V2 DICOR, launched.

50
 Indigo CS (Compact Sedan), world’s first sub four-metre sedan, launched.
• Launch of the new Sumo -- Sumo Grande, which combines the looks of
an SUV with the comforts of a family car.
• Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.
• Xenon, 1-tonne pick-up truck, launched in Thailand.
• Tata Motors signs definitive agreement with Ford Motor Company to
purchase Jaguar and Land Rover.
• Tata Motors completes acquisition of Jaguar Land Rover.
• Tata Motors introduces new Super Milo range of buses.
• Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III
Commonwealth Youth Games Pune 2008.
• Indica Vista – the second generation Indica, is launched.

• Tata Motors launches passenger cars and the new pick-up in D.R.
Congo.
2009 Tata Marcopolo Motors' Dharwad plant begins production.

Tata Motors launches Nano - The People's Car

Expansion
Cars
After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle. After
the launch of three more vehicles, namely, Tata Estate (1992, a stationwagon design based
on the earlier 'TataMobile' [1989] a light commercial vehicle which some people may still
think of as Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata Safari (1998,
India's first sports utility vehicle); In 1998 Tata launched the Indica, the first fully indigenous
passenger car of India. Though the car was initially panned by auto-analysts, the car's
excellent fuel economy, powerful engine and aggressive marketing strategy made it one of
the best selling cars in the history of the Indian automobile industry. A newer version of the
car, named Indica V2, was a major improvement over the previous version and quickly
became a mass-favorite. A badge engineered version of the car was sold in the United
Kingdom as the Rover CityRover. Tata Motors also successfully exported large quantities of
the car to South Africa. The success of Indica in many ways marked the rise of Tata
51
 Motors. Note: In 1996-97 Tata launched the Tata Sumo Deluxe and the Tata Sierra Turbo
variants respectively.

Daewoo acquisition

With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In
2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons
behind the acquisition were:

• Company’s global plans to reduce domestic exposure. The domestic commercial vehicle
market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata
Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light
commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the
company are at the mercy of the structural economic factors, it is increasingly looking at the
international markets. The company plans to diversify into various markets across the world
in both MHCV as well as LCV segments.
• To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus
from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong
presence of TDCV in the heavy-tonnage range and introduce products in India at an
appropriate time. This was mainly to cater to the international market and also to cater to
the domestic market where a major improvement in the Road infrastructure was done
through the National Highway Development Project

On its journey to make an international foot print, it continued its expansion through the
introduction of new products into the market range of buses (Starbus & Globus).

Joint ventures

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired
21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and
introduced its high-end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based
global leader, lead by Brian Behrle, in bus body building. This joint venture is to
manufacture and assemble fully-built buses and coaches targeted at developing mass rapid
transportation systems. The joint venture will absorb technology and expertise in chassis

52
and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and
systems for bodybuilding and bus body design.

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 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 one of the number maker for TML, TML sold the 2,00,000th Ace in
August 2008, within 4 years since its introduction.

Tata Ace has also been exported to several European, South American and African
countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric
Motorcars division.

Products

Passenger cars and utility vehicles

Tata Sierra

Tata Estate

Tata Sumo/Spacio

Tata Safari

Tata Indica

Tata Indigo

Tata Indigo Marina

53
Tata Winger

Tata Nano (3RD March 2009)

Tata Xenon XT

Tata Xover (2009)

Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indica

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Prima

Commercial vehicles

Tata 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

54
Tata 1109 (Intermediate truck)

Tata 1510/1512 (Medium bus)

Tata 1610/1616 (Heavy bus)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Medium Bus)

Tata Globus (Low Floor Bus)

Tata Marcopolo Bus (Low Floor Bus)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

55
Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 TC (4x2)

Alternative propulsion

Tata Motors aims at producing around 6,000 OneCAT air cars at €2,500 by 2010.

Profit

2007

In 2007, Tata Motors generated revenues of Rs 31,884.69 crore. In 2007, Tata Motors
launched several concept models and future designs of existing models. It also formed joint
ventures with various local companies in several countries to assemble Tata cars. Tata
Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna
which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was
also launched under the program 'Global Pick-Up'. The company plans to launch the new
pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia.
Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car
during the Geneva Auto Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine
technology. Tata Motors is looking to extend its relationship with Fiat and Iveco to other
segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the
entry of the company into developed markets like Europe and the United States. The
project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo
Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design
was not in sync with the needs of sophisticated European customers. The company has
formed a joint venture with Thailand’s Thonburi Company, an independent auto assembler,
in which Tata Motors will hold a 70% stake.

56
2008 onwards

Compressed air car

Motor Development International of Luxembourg 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 will run at
100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel
car but it is more efficient than any present Hybrid cars.

Tata Nano
Tata has developed a car, named Tata Nano, that aims to sell in 2008. It is the least
expensive production car in the world: the price is about Rs. 1,00,000 (USD $2,000). The
company unveiled the supermini car during the Auto Expo 2008 exhibition in Pragati
Maidan, New Delhi. Bajaj Auto and Mahindra-Renault have plans to launch cars in this price
range.

Tata has faced controversy over developing the Nano. Some environmentalists are
concerned that the launch of such a low-price car could lead to mass motorization in India
with adverse effects on pollution and global warming. There was also strong opposition to
the compulsory acquisition of land for the proposed car factory in Singur West Bengal. Now
Tata Motors Limited plan to set up the Nano factory in Sanand, Gujarat, because of the
problems faced in West Bengal.
To solve this, Tata is going to produce the E-Nano, an electric version, in partnership with
Miljøbil Grenland AS

Jaguar Cars and Land Rover

As of 27 March 2008, Tata Motors reached agreement with Ford to purchase their Jaguar
and Land Rover operations for US$2 billion. The sale is expected to be completed by the

57
end of the second quarter of 2008. Tata will also gain the rights to the Daimler, Lanchester,
and Rover brand names.
In addition to the brands, Tata Motors has also gained access to 2 design centers and 3
plants in UK. The key acquisition would be of the intellectual property rights related to the
technologies.

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 Miljøbil Grenland/Innovasjon of Norway for
US$1.93 M, which specialises in the development of innovative solutions for electric
vehicles, and plans to launch the electric Indica hatchback in Europe next year.

Global operations
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.

Global brands

Tata Motors has been aggressively acquiring foreign brands to increase its global
presence. In 2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as
Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake
in Hispano Carrocera SA, giving it controlling rights in the company.

On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford
Motor in a deal worth $2.3bn (£1.15bn). Tata Motors has also acquired from Ford the rights
to three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that
Tata was in negotiations along with Fiat, General Motors and Renault-Nissan as a possible
suitor for the rapidly declining Chrysler, which is currently owned by Cerberus Capital
Management.

58
Present global challenge

Tata Motors have some distinct advantages in comparison to other multi-national

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. Tata motors have extensive
backward and forward linkages and it is strongly interwoven with machine tools and metals
sectors. Tata Group's strong expertise in the IT based engineering solution for products and
process integration has helped Tata Motors. India has a large auto component industry
noted for its world class capabilities. There is huge demand in domestic markets due to
infrastructure developments and Tata Motors is able to leverage its knowledge of Indian
market. There are favorable Government polices and regulations to boost the auto industry.

However, some major automakers have moved their operations to India to cut costs. Volvo
entered India in 1998 to focus on production of its fully built buses. In India, it has focused
on providing economical transport solutions in consonance with its values of safety, quality,
and environmental care. Its competitive advantage is its high technology which makes the
vehicle a very comfortable option to travel through. Tata's trucks have long been reputed for
their unmatched performance, build, and technological advancements that are the flag
bearers in their production activities in India. It is still operating in the niche market of high
end buses where the Tata compete through its Hispano Carrocera and Marcopolo S.A. JV
buses.

The Government of India announced an automobile policy in December 1997. The 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. It also forced them to take on
export obligations to fund their auto part imports and required them to submit to a schedule
for increasing the share of locally made parts in their cars. Mere car assembling operations
were not welcomed.

An Indian cabinet panel will soon consider a new automobile policy that aims to set 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 auto-making subsidiary in India. The
move is aimed at helping India emerge as a hub for global manufacturing and sourcing for
auto parts. The policy sets an export target of $1 billion by 2005 and US$2.7 billion by
2010. The policies adopted by Government will increase competition in domestic market,
59
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. Thus Tata Motors CV will
have to face tough competition in near future, which might affect its growth negatively.

Future challenges

Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.

Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has
formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in the CV
business. ITEC is the leader in medium and heavy trucks and buses in North America, and
is the world's largest manufacturer of medium-duty diesel engines. Mahindra International
aims to have a presence across the CV market (6-35 tonnes GVW) with variants of
passenger transport, cargo and specialised load applications and is likely to start producing
medium/heavy commercial vehicles from FY09.

Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force Motors has
paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such
as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range
at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an
investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic
market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa.
Further, the two companies have formed another JV to manufacture buses in India from
end-2007.

Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL) recently
acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9
tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL
direct access to an entire range of Avia trucks, Avia’s press shop with dies and tools,
welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into
technology agreements with Hino Motors of Japan and ZF of Germany to complement its
in-house R&D efforts and developing complementary components and aggregates.

Tata Motors subsidiaries

60
Telco Construction Equipment (TCE)

TCE is a joint venture between Tata Motors and Hitachi, which focuses on excavators and
other construction equipment.

HV Transmission (HVTL) and HV Axles (HVAL)

HVAL and HVTL are 100% subsidiary companies of Tata Motors engaged in the business
of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with
production facilities and infrastructure based at Jamshedpur.

Tata Technologies Limited (TTL)

TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata
Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and
operates in the US and Europe through its wholly owned subsidiaries in Detroit and London
respectively. It also has a presence in Thailand. Tata Technologies is a software service
provider in the IT services and BPO space. Its global client list includes Ford, General
Motors, Toyota and Honda, to name a few. It bought over the British engineering and
design services company, Incat International Plc for Rs4b in August 2005. Incat specializes
in engineering & design services and product lifecycle management in the international
automotive, aerospace and engineering markets. With this acquisition, Tata Motors will
have closer proximity to its global customers and be able to provide a wider range of
services.

Tata Daewoo CV (TDCV)

TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acquired
in March 2004. TDCV is in the business of manufacture and sale of heavy commercial
vehicles.Tata Daewoo is Tata Motors’ 100% subsidiary in Korea, with a market share of
30%.Tata Motors will use the Daewoo technology to introduce higher tonnage trucks in the
Indian market and use Tata Daewoo for exports globally. In line with this strategy, it has
already introduced the Novus, a high-end tipper developed by Tata Daewoo for the Indian
market.

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About Tata Nano

Seldom do we see cars that rewrite the history books even before they are seen running
around on the roads. And hardly ever do we see cars that vow to put the nation on four
wheels. The Tata Nano is one such car – a car that has been in the news for quite a few
years, for reasons good and evil. Nano is a car which has breathed into life due to one man.
Give credit to Mr. Ratan Tata for his determination to build a low cost family car that has
come true, finally! Took long it did, but the Nano came in a beautiful form. Touted as world’s
cheapest car by a far cry, Nano has been the talk of the town around the globe. Head
honchos of big organizations have been pouring in by numbers to have a look at this
engineering masterpiece. We bring you some interesting bits.

Looks:

Numbers first.
Length – 3100mm
Width – 1500mm
Height – 1600mm
Wheelbase – 2230mm.
Ground Clearance – 180mm

You will be wondering why I am talking about the dimensions of the Nano, since all of you
know that it is a rather compact and tiny machine. It is because I have good reason to talk
62
about the dimensions. You see, the Nano is going to be faced with Maruti 800 as its main
rival. But you could throw in the Alto and Zen Estilo to mark out some design and packaging
aspects. Just to get things in perspective, Nano is over 230mm shorter than 800 in overall
length but the wheelbase advantage of 155mm over the offering from Maruti makes sure
that the Nano is more accommodating than the 800. Tata has managed to squeeze out a
60mm advantage in width and Maruti 800 falls short of about 100mm in height. So in
essence, you get more legroom, better shoulder room and room more than enough for a
turban, if you wear one! But before you enter inside, you are bound to gape in admiration at
the beautifully crafted curves of this micro car. I personally feel that the front has a lot of
Zen Estilo written on it, but manages to look really funky and cool.

The mono-volume design establishes a sea of change from the two-box layout of the 800.
What it ensures the Nano with is extremely short overhangs and tight packaging. For a car
of this size and image, the Nano is an extremely sexy looking car with futuristic design
cues. The bonnet line is steep and unites together with the bumper in a seamless way.
Though there is no ‘grille’ per se, the front has a smiling look which accentuates the ‘happy’
feeling. The fog lamps are incorporated in the bumper which has a distinct air dam running
across in between them. In profile, the Nano resembles Mitsubishi’s latest small car ‘i’. The
rear of the Nano is somewhat recognizable. The tail lamps are inspired from elder sister,
Indica. So this is a very compact hatchback, yes? No my friend, you are massively wrong.
Even I was dumbfounded when I discovered that the Nano cannot be called a hatchback –
a word so true to the way the small cars are. The reason for this is because it does not
have a hatch! The tail gate cannot be opened owing to it being joined together with the boot
sill. This makes accessing the engine a pain in the bottom. But a hatchback it will be called
still. The back side of the Nano is made attractive by the mid mounted exhaust pipe which
peeps out of the aggressively designed bumper.

63
 RESEARCH METHODOLOGY

Title of the Study

To determine customer-buying behavior with a focus on market segmentation for TATA
MOTARS for its newly launched product TATA NANO.

Title Justification

The above title is self explanatory. The study deals mainly with studying the response of

market towards TATA NANO. The middle income level segment of the customers divided in
terms of gender and age group.

64
Duration of the Project
Time duration for the project was 1 week.

Objective of the Study

Tata wants to become no. 1 in automobile industry (both small and large) and want to
provide everyone with an affordable car of their dream, so objectives of the project are:
To know that Tata is known for heavy commercial vehicle. This common
perception can affect the sale of NANO.
Best feature of NANO which is attracting the customers.
As price of Nano is around one lakh rupees, so is there any possibility of car
being used as.

Type of Research

It was a Qualitative Research, in which I took a sample of at least 10 respondents. Who had
a previous driving experience, driving licence, knowledge about Nano, and were from
different cultures, regions, and of age group between 20-45yr. I made them aware about
the topic, and collected their views about Nano.

65
Sample Size and Method of selecting sample

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of middle income level segment of the customers who had a previous driving
experience, driving license, knowledge about Nano, and were from different cultures,
regions, and of age group between 20-45yr divided.

Sample Size & Type Of Sampling:

The sample size was restricted to only 200 people which comprised of mainly people from
different regions of Jaipur due to time constraints.

Sampling Instrument:
The sampling instrument selected to carry out the study is well formatted questionnaire
consisting of close & open ended questions.

Data Source
Data was collected from both primary as well as secondary sources:
Primary Data Collection:
Sample questionnaire was prepared and the same was aske to fill in hand.
Personal interviews were conducted.
Secondary Data Collection:
Secondary data was collected by the information given through the material
provided by TATA MOTORS.

Scope of Study
Launch of TATA NANO in Automobile Industry turned the time again towards Small Car
Era. A large number of new players are there in the market and are vying to gain market
share in this rapidly growing market. The study deals with Tata Motors in focus on to know
that Tata is known for heavy commercial vehicle. This common perception can affect the
sale of NANO & will the craze of Nano turn the scenario of automobile industry.

66
 Hypotheses

• Conversion of ‘NANO’ to a taxi do not affect the brand image and consequently
sales.
• NANO is safe for driving.
• Hike in price of NANO of will not effect the sale.
• People prefer to purchase the NANO instead of two wheeler.
• People can wait for NANO for few months.

Limitation of Study

"Not even a single thing could be taken as perfect in the Human Resource. If there are
some opportunities and scope of a task there must also be some limitations either in
performing or in their outcomes. We could not ignore our project work's limitations too."

Following are the Major Limitations of our Study

• This research is carried out with where so many variables are acting on the research
settings. It is not comparable anyway to be controlled laboratory situations as available
in physical and other exact sciences.
• It is out on individuals, executives etc. who are human beings. Human beings have
tendency to behave artificially when they know that they are being observed. So the
respondents start behaving artificially when they know that their attitudes, opinions
beliefs etc. are being studies. This aspect of human behavior distorts the study results.
• Subjectivity is the main limitations of such studies. It is very difficult to verify the
research results. Also the replications of the same group of respondents produce
different research results. Verifications very difficult particularly when the primary data
has been collected and used as we have done i.e. main emphasis are on primary data
in our project.
• These sorts of projects take generally longer period than other ones. The time by
which the research results are presented. Situation may undergo a change. Hence, time
gap may effects the successful implementations of research results.

67
Environmental Context of the Problem

Past Information and Forecast

Tata is one of the oldest companies fighting to establish its position in small car segment.

Resources and Constraints

Tata has wide resources in terms of infrastructure and money. But the rising price of steel in
the world market is major concern.

Buyer Behaviour

In India the market for four wheeler is huge. Demographic feature is also favourable for
India.

Legal Environment

With the increase in volume of traffic there will be pollution problems and also will increase
the accidents.

Economic Environment

As the GDP of India is rising the living standard of consumers is also rising and
now their purchasing power is also increasing. So there is more disposable
income.

Marketing and Technological Skills

Tata has expertise in marketing and technology. Bosch developed 623.6cc multi point fuel
injection system engine will produce 33ps, which will give a performance of 20kmpl. The car
has its engine at rear which increases the inner space of the car and it also has an air
conditioner with heater.
As far as the marketing of the Nano is concern, the affect of the promotion strategy can be
seen during the launch of Nano in Auto-Expo 2008, New Delhi as the car has made huge
impact on national and international media.

68
Management decision and Marketing research problem

Management decision problem

1. Will the conversion of ‘Nano’ to a taxi affect brand image and consequently sales?
2. Will initial demand may lead to stock out.
3. Whether the prices of ‘Nano’ will be sustained over a period of time with the
economic changes in raw material price rise?
4. With the hike in sales of ‘Nano’, whether the infrastructure of the country will
be able to sustain the volume of traffic?
5. Will the Protest of farmers against Nano plant in Singur affect the sale?
6. Will General Perception of brand “TATA” in small car segment affect the sale?

Marketing research problem

1. As price of Nano is around one lakh rupees, possibility of car being used as
taxi cannot be avoided.
2. Time to convert raw material into Nano
3. Determining the trends in steel, rubber and other raw material prices
4. The focus of India in building infrastructure and spending trends
5. They thought that they are cheated by the government.
6. Tata is known for heavy commercial vehicle. This common perception can
affect the sale of Nano.

69
FACTS AND FINDIGS

70
Findings

• Most of the respondents believes that there will be no impact on sales while others
disagreed with this.
• A majority of the respondents believe that initially there will be a waiting
on the purchase of Nano because of the increase in number of orders and
anyhow it will not affect the sales.
• Most of the respondents believe that the rise in the price of raw material
will lead to a increase in the price of the car while few believes in Ratan
Tata’s statement that “ promise is a promise” but still all the respondent
believe that there will be no impact on sales.
• Most of the respondent believe that the development in Indian
Infrastructure will be able to sustain the volume of traffic while the others
believe that there will be traffic conjunctions. Despite of the traffic
conjunctions they will still prefer to purchase Nano.
• Most of the respondents felt that the protest by farmers in Singur is for a
short period of time. It is a political issue which does not seems to effect
the sales but a quite a few do not believe in this way. Although the entire
respondents feel that Tata’s Nano project in Singur will lead to the
economic development of farmers.
• Majority of the respondent believe that the brand name Tata carries a
good image in the market while others believe that Tata is not successful
in small car segment which might affect the brand name to an extent.
• Most of the respondent believe that Nano is the pioneer in small
carsegment and backed by strong brand name Tata. It will be able to
sustain the upcoming competition from rivalry entering the same market.
• Most of the respondents give safety as there top priority while Nano and
rest of them think that still Nano will be safer than two wheelers.

71
ANALYSIS AND INTERPRETATION

72
73
Ques 1- Will the conversion of Nano into a taxi have an impact on its sales?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 42 21%

No 158 79%

NO. OF RESPONDENTS

Yes
No

Interpretation

Most of the respondents believes that there will be no impact on sales while others
disagreed with this.

74
Ques 2- Can the company face the problem of stock out? Will it have any impact on sales?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 59 29.50%

No 141 70.50%

NO. OF RESPONDENTS

Yes
No

Interpretation

A majority of the respondents believe that initially there will be waiting on the
purchase of Nano because of the increase in number of orders and anyhow it
will not affect the sales.

75
Ques 3- Will Tata be able to maintain the price of Nano in future if there is hike in cost
of raw materials?

RESPONSE NO.OF SHARE (%)

RESPONDENTS

Yes 50 25%

No 150 75%

NO. OF RESPONDENTS

Yes
No

Interpretation

Most of the respondents believe that the rise in the price of raw material will lead to a
increase in the price of the car while few believes in Ratan Tata’s statement that “ promise
is a promise” but still all the respondent believe that there will be no impact on sales.

76
Ques 4- Will our infrastructure be able to sustain the traffic conjunction?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 62 31%

No 138 69%

NO. OF RE S P ONDENTS

Y es
No

Interpretation

Most of the respondents believe that the development in Indian Infrastructure

will be able to sustain the volume of traffic while the others believe that there
will be traffic conjunctions. Despite of the traffic conjunctions they will still
prefer to purchase Nano.

77
Ques 5- Will the protest by farmers have an impact on its sales?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 25 12.5%

No 175 87.5%

NO . O F RE S P O NDE NTS

Y es
No

Interpretation

Most of the respondents felt that the protest by farmers in Singur is for a short period of
time. It is a political issue which does not seems to effect the sales but a quite a few do not
believe in this way. Although the entire respondents feel that Tata’s Nano project in Singur
will lead to the economic development of farmers.

78
Ques 6- Can the brand name “Tata” (which is known for heavy vehicles) have an
impact on its sales?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 50 25%

No 150 75%

NO. OF RESP ONDENTS

Yes
No

Interpretation

Majority of the respondent believe that the brand name Tata carries a good
image in the market while others believe that Tata is not successful in small car
segment which might affect the brand name to an extent.

79
Ques 7- Can upcoming competition (Renault, Bajaj) have an impact on its sales?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 25 12.5%

No 175 87.5%

NO. OF RESP ONDENTS

Yes
No

Interpretation

Most of the respondent believe that Nano is the pioneer in small car segment
and backed by strong brand name Tata. It will be able to sustain the upcoming
competition from rivalry entering the same market.

80
Ques 8- Whether safety or cost is the top the priority while buying Nano?

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 25 12.5%

No 175 87.5%

NO. OF RESPONDENTS

Yes
No

Interpretation

Most of the respondents give safety as there top priority while purchasing Nano and rest of
them think that still Nano will be safer than two wheelers.

81
AN OVER VIEW OR SUM OF ALL THE CONCLUSIONS OF OUR FOCUS
GROUP:-

Survey Result And Analysis

1) The first thing about NANO, which comes in the mind of all age group (male
and female) is-
“compact”, “affordable”, “choti si” (small) and “economic”.

2) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 34 53.97%
2. No 20 31.75%
3. Can’t say 9 14.29%

82
 Age Group: 26-35
QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 18 51.43%
2. No 7 20.00%
3. Can’t say 10 28.57%

Age Group: 36-45

QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 18 72.00%
2. No 2 8.00%
3. Can’t say 5 20.00%

Age Group: 45+

QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 6 60.00%
2. No 1 10.00%
3. Can’t say 3 30.00%

MALE
Age Group: 20-25
QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 34 52.31%
2. No 18 27.69%
3. Can’t say 13 20.00%
Age Group: 26-35
QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 32 58.18%
2. No 14 25.45%
3. Can’t say 9 16.36%

Age Group: 36-45

QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 22 55.00%
2. No 11 27.50%
3. Can’t say 7 17.50%

83
 Age Group: 45+
QUESTION TOTAL %age
Instead of purchasing a bike, would you prefer
to go for NANO?
1. Yes 16 53.33%
2. No 8 26.67%
3. Can’t say 6 20.00%

ANALYSIS

Most of the respondents both male and female of all age groups want to purchase NANO
instead of a two wheeler. But the females (70%) between age group 36-45 are highest
among all the age groups.

3) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 38 60.32%
2. Design 3 4.76%
3. Mileage 0 0.00%
4. Interior Space 1 1.59%
5. All the above 14 22.22%
6. Can’t say 7 11.11%

Age Group: 26-35

QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 21 60.00%
2. Design 1 2.86%
3. Mileage 3 8.57%
4. Interior Space 2 5.71%
5. All the above 7 20.00%
6. Can’t say 1 2.86%

Age Group: 36-45

QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 12 48.00%
2. Design 2 8.00%
3. Mileage 0 6.00%
4. Interior Space 1 4.00%
5. All the above 9 36.00%
6. Can’t say 1 4.00%

84
 Age Group: 45+
QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 3 30.00%
2. Design 0 0.00%
3. Mileage 1 10.00%
4. Interior Space 0 0.00%
5. All the above 5 50.00%
6. Can’t say 1 10.00%
MALE
Age Group: 20-25
QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 47 72.31%
2. Design 4 6.15%
3. Mileage 2 3.08%
4. Interior Space 0 0.00%
5. All the above 10 15.38%
6. Can’t say 3 4.62%

Age Group: 26-35

QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 23 41.82%
2. Design 12 21.82%
3. Mileage 8 14.55%
4. Interior Space 5 9.09%
5. All the above 12 21.82%
6. Can’t say 4 7.27%

Age Group: 36-45

QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 11 27.50%
2. Design 3 7.50%
3. Mileage 4 16.00%
4. Interior Space 7 17.50%
5. All the above 11 27.50%
6. Can’t say 4 10.00%

85
 Age Group: 45+
QUESTION TOTAL %age
Which feature of NANO attracts you most, that
inspires you to go for it?
1. Price 12 40.00%
2. Design 0 0.00%
3. Mileage 2 0.67%
4. Interior Space 0 0.00%
5. All the above 10 33.33%
6. Can’t say 6 20.00%

ANALYSIS

From the finding it came out that most of the respondents both male and female of all age
group consider price as the major purchasing factor while on the other hand there are many
who consider all the factors- price, mileage, design, and interior space. But there is a
degree of variation in these preferences.

4) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Which colour of NANO would you prefer?
1. Red 11 17.46%
2. Blue 3 4.76%
3. White 16 25.40%
4.Yellow 5 7.94%
5. Silver 17 26.08%
6. Other, Specify 11 17.46%

Age Group: 26-35

QUESTION TOTAL %age
Which colour of NANO would you prefer?
1. Red 8 22.86%
2. Blue 5 14.29%
3. White 7 20.00%
4.Yellow 2 5.71%
5. Silver 7 20.00%
6. Other, Specify 6 17.14%

Age Group: 36-45

QUESTION TOTA %age
L
Which colour of NANO would you
prefer?
1. Red 2 8.00%
2. Blue 3 12.00
%
3. White 6 24.00
86
 %
4.Yellow 1 4.00%
5. Silver 8 32.00
%
6. Other, Specify 5 20.00
%
Age Group: 45+
QUESTION TOTAL %age
Which colour of NANO would you prefer?
1. Red 0 0.00%
2. Blue 2 20.00%
3. White 4 40.00%
4.Yellow 0 0.00%
5. Silver 3 30.00%
6. Other, Specify 1 10.00%

MALE
Age Group: 20-25
QUESTION TOTAL %age
Which colour of NANO would you prefer?
1. Red 13 20.00%
2. Blue 8 12.31%
3. White 11 10.92%
4.Yellow 6 9.23%
5. Silver 15 23.08%
6. Other, Specify 12 18.46%

Age Group: 26-35

QUESTION TOTA %age
L
Which colour of NANO would you
prefer?
1. Red 5 9.09%
2. Blue 7 12.73
%
3. White 14 25.45
%
4.Yellow 2 3.64%
5. Silver 20 36.36
%
6. Other, Specify 7 12.73
%

Age Group: 36-45

QUESTION TOTAL %age
Which colour of NANO would you prefer?
1. Red 7 17.50%
2. Blue 10 25.00%
3. White 11 27.50%
4.Yellow 0 0.00%
87
 5. Silver 4 10.00%
6. Other, Specify 8 20.00%

Age Group: 45+

QUESTION TOTAL %age
Which colour of NANO would you prefer?
1. Red 2 6.67%
2. Blue 4 13.33%
3. White 10 33.33%
4.Yellow 2 6.67%
5. Silver 10 33.33%
6. Other, Specify 2 6.67%
ANALYSIS

In the color preference there is a wide difference in their choices. This is as follows:
• Females love to see their NANO mostly in white and silver colour.
• Males in the age group 20-25yrs give weightage to silver and red, and the
remaining age groups prefer white and silver only.
• Yellow is found to be the least preferred colour, while there is a significant
likeliness for the black colour also.

5) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
For which purpose would you like to use
NANO?
1. Will offer it to your children to use it in place of 24 38.10%
two wheeler.
2. Will use as family car for shopping and travel. 21 33.33%
3. Will prefer as a taxi. 4 6.35%
4. Would like to offer as gift. 8 12.70%
5. Any other, Specify…………….. 6 9.52%

Age Group: 26-35

QUESTION TOTAL %age
For which purpose would you like to use
NANO?
1. Will offer it to your children to use it in place of 4 11.43%
two wheeler.
2. Will use as family car for shopping and travel. 17 48.57%
3. Will prefer as a taxi. 3 8.57%
4. Would like to offer as gift. 4 11.43%
5. Any other, Specify………………… 7 20.00%

Age Group: 36-45

QUESTION TOTAL %age
For which purpose would you like to use
88
 NANO?
1. Will offer it to your children to use it in place of 11 44.00%
two wheeler.
2. Will use as family car for shopping and travel. 8 32.00%
3. Will prefer as a taxi. 1 4.00%
4. Would like to offer as gift. 3 12.00%
5. Any other, Specify………………… 2 8.00%

Age Group: 45+

QUESTION TOTAL %age
For which purpose would you like to use
NANO?
1. Will offer it to your children to use it in place of 5 50.00%
two wheeler.
2. Will use as family car for shopping and travel. 3 30.00%
3. Will prefer as a taxi. 0 0.00%
4. Would like to offer as gift. 2 20.00%
5. Any other, Specify………………… 0 0.00%

MALE
Age Group: 20-25
QUESTION TOTAL %age
For which purpose would you like to use
NANO?
1. Will offer it to your children to use it in place of 21 32.31%
two wheeler.
2. Will use as family car for shopping and travel. 19 29.23%
3. Will prefer as a taxi. 4 6.15%
4. Would like to offer as gift. 15 23.08%
5. Any other, Specify………………… 7 10.77%

Age Group: 26-35

QUESTION TOTAL %age
For which purpose would you like to use
NANO?
1. Will offer it to your children to use it in place of 13 23.64%
two wheeler.
2. Will use as family car for shopping and travel. 26 47.27%
3. Will prefer as a taxi. 7 12.73%
4. Would like to offer as gift. 2 3.64%
5. Any other, Specify………………… 7 12.73%

Age Group: 36-45

QUESTION TOTAL %age
For which purpose would you like to use
NANO?
89
 1. Will offer it to your children to use it in place of 16 40.00%
two wheeler.
2. Will use as family car for shopping and travel. 8 20.00%
3. Will prefer as a taxi. 4 10.00%
4. Would like to offer as gift. 7 17.50%
5. Any other, Specify………………… 5 12.50%

Age Group: 45+

QUESTION TOTAL %age
For which purpose would you like to use
NANO?
1. Will offer it to your children to use it in place of 8 26.67%
two wheeler.
2. Will use as family car for shopping and travel. 4 13.33%
3. Will prefer as a taxi. 0 0.00%
4. Would like to offer as gift. 10 33.33%
5. Any other, Specify………………… 8 26.67%

ANALYSIS

Females in the age group 20-25 explores a shocking preference for NANO to offer it to their
children, also age group 26-35 want to offer NANO to their children, and the age group 36-
45 want to use it as a “Family Car” for shopping and travel and 46+ want to offer NANO as
a “gift”.
Males in the age group 20-25 and 26-35 want to use it as a family car for shopping and
traveling. And the age group of 36-45 give their preference for NANO to offer it to their
children. And 45+ want to offer NANO as a gift.

6) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 44 69.84%
2. No 8 12.70%
3. Can’t say 11 17.46%

Age Group: 26-35

QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 29 82.86%
90
 2. No 3 8.57%
3. Can’t say 3 8.57%

Age Group: 36-45

QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 21 84.00%
2. No 2 8.00%
3. Can’t say 2 8.00%

Age Group: 45+

QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 7 70.00%
2. No 1 10.00%
3. Can’t say 2 20.00%

MALE
Age Group: 20-25
QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 40 61.54%
2. No 10 15.38%
3. Can’t say 15 23.08%

Age Group: 26-35

QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 44 80.00%
2. No 5 9.09%
3. Can’t say 6 10.91%

Age Group: 36-45

QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 22 55.00%
2. No 9 22.50%
3. Can’t say 9 22.50%

Age Group: 45+

QUESTION TOTAL %age
Do you think NANO is people’s car?
1. Yes 20 66.67%
2. No 4 13.33%
3. Can’t say 6 20.00%

91
ANALYSIS

Promotion of Tata NANO in the “Delhi’s Auto Expo” proved to be a great success for
NANO. And with the time before its launch on the roads it (NANO) emerged as the people’s
car.

7) FEMALE
Age Group: 20-25

QUESTION TOTAL %age

Will you recommend NANO to your friends and
relatives?
1. Yes 33 52.38%
2. No 11 17.40%
3. Can’t say 19 39.16%

Age Group: 26-35

QUESTION TOTAL %age
Will you recommend NANO to your friends and
relatives?
1. Yes 22 62.86%
2. No 8 22.86%
3. Can’t say 5 14.29%

Age Group: 36-45

QUESTION TOTAL %age
Will you recommend NANO to your friends and
relatives?
1. Yes 16 64.00%
2. No 5 20.00%
3. Can’t say 4 16.00%

Age Group: 45+

QUESTION TOTAL %age
Will you recommend NANO to your friends and
relatives?
1. Yes 6 60.00%
2. No 1 10.00%
3. Can’t say 3 30.00%

MALE
Age Group: 20-25
QUESTION TOTA %age
L

92
 Will you recommend NANO to your friends
and relatives?
1. Yes 32 49.23
%
2. No 8 12.31
%
3. Can’t say 25 38.46
%

Age Group: 26-35

QUESTION TOTA %age
L
Will you recommend NANO to your friends
and relatives?
1. Yes 30 54.55
%
2. No 8 34.55
%
3. Can’t say 25 30.91
%

Age Group: 36-45

QUESTION TOTAL %age
Will you recommend NANO to your friends and
relatives?
1. Yes 12 30.00%
2. No 18 45.00%
3. Can’t say 10 25.00%

Age Group: 45+

QUESTION TOTAL %age
Will you recommend NANO to your friends and
relatives?
1. Yes 16 51.33%
2. No 6 20.00%
3. Can’t say 8 26.67%

ANALYSIS

All the age groups would like to recommend NANO to their relatives once they have a good
driving experience of NANO after its launch.

8) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Which small car would you prefer?

93
 1. Maruti 800 8 12.70%
2. Tata NANO 30 47.62%
3. Other…………….. 25 39.68%

Age Group: 26-35

QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 3 8.57%
2. Tata NANO 21 60.00%
3. Other…………….. 11 31.43%
Age Group: 36-45
QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 3 12.00%
2. Tata NANO 14 14.00%
3. Other…………….. 8 8.00%

Age Group: 45+

QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 1 10.00%
2. Tata NANO 6 60.00%
3. Other…………….. 3 30.00%

MALE
Age Group: 20-25
QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 7 10.77%
2. Tata NANO 27 41.54%
3. Other…………….. 31 47.69%

Age Group: 26-35

QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 7 14.77%
2. Tata NANO 29 52.77%
3. Other…………….. 19 34.66%

Age Group: 36-45

QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 3 7.50%
2. Tata NANO 19 47.50%
94
 3. Other…………….. 18 45.00%

Age Group: 45+

QUESTION TOTAL %age
Which small car would you prefer?
1. Maruti 800 8 26.67%
2. Tata NANO 18 60.00%
3. Other…………….. 4 13.33%

ANALYSIS

People are eager to purchase Tata Nano and want to buy it due to its stylish look.

9) FEMALE
Age Group: 20-25
QUESTION TOTA %age
L
How long can you wait for NANO?
1. 1-2 months 11 17.46
%
2. 2-4 months 13 20.63
%
3. 4-6 months 20 31.75
%
4. Can’t wait 19 30.16
%

Age Group: 26-35

QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 12 34.29%
2. 2-4 months 8 22.86%
3. 4-6 months 9 25.71%
4. Can’t wait 6 17.14
%

Age Group: 36-45

QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 13 52.00%
2. 2-4 months 3 12.00%
3. 4-6 months 1 4.00%
95
 4. Can’t wait 8 32.00%

Age Group: 45+

QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 5 50.00%
2. 2-4 months 2 20.00%
3. 4-6 months 1 10.00%
4. Can’t wait 2 20.00%

MALE
Age Group: 20-25
QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 14 21.54%
2. 2-4 months 20 30.77%
3. 4-6 months 20 30.77%
4. Can’t wait 11 16.92%

Age Group: 26-35

QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 12 21.82%
2. 2-4 months 16 29.09%
3. 4-6 months 17 30.91%
4. Can’t wait 10 18.18%

96
 Age Group: 36-45
QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 9 22.50%
2. 2-4 months 12 30.00%
3. 4-6 months 11 27.50%
4. Can’t wait 18 20.00%

Age Group: 45+

QUESTION TOTAL %age
How long can you wait for NANO?
1. 1-2 months 6 20.00%
2. 2-4 months 6 20.00%
3. 4-6 months 6 20.00%
4. Can’t wait 12 40.00%

ANALYSIS

Most of the Females can’t wait for NANO after placing the order but females in the age
group 26-35 are ready to wait for NANO from 4-6 months. Most of the Males in the age
group 20-25 and 36-45 are ready to wait for 2-6 months while others in the age group 26-
35 can wait for 4-6 months but 45+ are not ready to wait for NANO.

10) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 5 7.09%
2. No 41 63.08%
3. Can’t say 19 29.23%

Age Group: 26-35

QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 12 21.82%
2. No 17 30.91%
3. Can’t say 26 47.27%

Age Group: 36-45

QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 14 35.00%
2. No 18 45.00%
3. Can’t say 8 20.00%
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 Age Group: 45+
QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 16 53.33%
2. No 8 26.67%
3. Can’t say 6 20.00%

MALE
Age Group: 20-25
QUESTION TOTA %age
L
If the price of NANO rises, would you
still purchase it?
1. Yes 3 4.76%
2. No 40 63.49
%
3. Can’t say 20 31.75
%

Age Group: 26-35

QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 4 11.43%
2. No 25 71.43%
3. Can’t say 6 17.14%

Age Group: 36-45

QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 2 8.00%
2. No 16 64.00%
3. Can’t say 7 28.00%

Age Group: 45+

QUESTION TOTAL %age
If the price of NANO rises, would you still
purchase it?
1. Yes 1 10.00%
2. No 6 60.00%
3. Can’t say 3 30.00%

ANALYSIS

People prefer Nano due to its low price. If Tata increases price of Nano in future
people could get back from it.
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11) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 17 26.15%
2. No 22 33.85%
3. Can’t say 26 40.00%

Age Group: 26-35

QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 14 25.45%
2. No 19 34.55%
3. Can’t say 22 40.00%

Age Group: 36-45

QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 7 17.50%
2. No 19 47.50%
3. Can’t say 14 35.00%

Age Group: 45+

QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 14 46.67%
2. No 8 26.67%
3. Can’t say 8 26.67%

MALE
Age Group: 20-25
QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 8 12.70%
2. No 24 38.10%
3. Can’t say 31 49.20%

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 Age Group: 26-35
QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 11 31.43%
2. No 17 48.57%
3. Can’t say 7 20.00%

Age Group: 36-45

QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 12 48.00%
2. No 7 28.00%
3. Can’t say 6 24.00%

Age Group: 45+

QUESTION TOTAL %age
Will Tata be able to maintain the price of NANO
in future if there is hike in cost of raw
materials?
1. Yes 5 50.00%
2. No 2 20.00%
3. Can’t say 3 30.00%

ANALYSIS

Females of all age groups and males of 20-25 and 36-45 age groups do not favour the
increase in price. While the people below 35yrs do not believe that “Tata will be able to
maintain the price” due to increasing raw material prices. But others above this age group
believe in Mr. Ratan Tata’s statement- “promise is a promise” and think that Tata will be
able to maintain its prices with its technology.

12) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 23 35.39%
2. Don’t care 25 38.45%
3. Can’t say 17 26.15%

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 Age Group: 26-35
QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 22 40.00%
2. Don’t care 22 40.00%
3. Can’t say 11 20.00%

Age Group: 36-45

QUESTION TOTA %age
L
How will you feel if NANO is used as a
taxi?
1. Embarrass 14 35.00
%
2. Don’t care 21 52.50
%
3. Can’t say 9 12.50
%

Age Group: 45+

QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 6 20.00%
2. Don’t care 16 53.33%
3. Can’t say 8 26.67%

MALE
Age Group: 20-25
QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 30 47.62%
2. Don’t care 22 34.92%
3. Can’t say 11 17.46%
Age Group: 26-35
QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 14 40.00%
2. Don’t care 17 58.57%
3. Can’t say 4 11.43%

Age Group: 36-45

QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 5 20.00%
2. Don’t care 13 52.00%
3. Can’t say 7 28.00%

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 Age Group: 45+
QUESTION TOTAL %age
How will you feel if NANO is used as a taxi?
1. Embarrass 2 20.00%
2. Don’t care 5 50.00%
3. Can’t say 3 30.00%

ANALYSIS

Most of the people of all age group do not care about NANO being used as a taxi, as they
feel that this will not hurt their feelings regarding NANO. But females of age group 20-25 do
not favour NANO being used as a taxi as this will embarrass them.

13) FEMALE
Age Group: 20-25
QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 31 49.21%
2. No 18 28.57%
3. Can’t say 14 22.22%

Age Group: 26-35

QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 28 80.00%
2. No 5 14.29%
3. Can’t say 2 5.71%

Age Group: 36-45

QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 19 76.00%
2. No 1 4.00%
3. Can’t say 5 20.00%

Age Group: 45+

QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 6 60.00%
2. No 2 20.00%
3. Can’t say 2 20.00%

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MALE
Age Group: 20-25
QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 36 55.58%
2. No 21 32.31%
3. Can’t say 8 12.31%

Age Group: 26-35

QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 27 49.09%
2. No 18 32.73%
3. Can’t say 10 28.18%

Age Group: 36-45

QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 15 37.50%
2. No 16 40.00%
3. Can’t say 9 22.50%

Age Group: 45+

QUESTION TOTAL %age
Will there be traffic problem with the
introduction of NANO on Indian roads?
1. Yes 20 66.67%
2. No 6 20.00%
3. Can’t say 4 13.33%

ANALYSIS

All the people believe that there will be a huge traffic problem with the increasing number of
NANO running on the roads.

14) FEMALE
Age Group: 20-25
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 QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 14 22.72%
2. No 25 39.68%
3. Can’t say 24 38.10%

Age Group: 26-35

QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 13 37.14%
2. No 17 48.57%
3. Can’t say 5 14.29%

Age Group: 36-45

QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 15 60.00%
2. No 4 16.00%
3. Can’t say 6 24.00%

Age Group: 45+

QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 5 50.00%
2. No 2 20.00%
3. Can’t say 3 30.00%
MALE
Age Group: 20-25
QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 8 13.85%
2. No 33 50.77%
3. Can’t say 23 35.38%

Age Group: 26-35

QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 20 36.36%
2. No 12 21.82%
3. Can’t say 23 41.82%

Age Group: 36-45

QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 10 25.00%
2. No 20 50.00%
3. Can’t say 10 25.00%

Age Group: 45+

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 QUESTION TOTAL %age
Can you trust NANO for safety?
1. Yes 12 40.00%
2. No 6 20.00%
3. Can’t say 12 40.00%

ANALYSIS

Females of age group 20-25 and 36-45 can’t trust NANO for safety while the age group
26-35 and 45+ do believe in NANO for safety.
In case of the males, the age group between 20-25 and 26-35 can’t trust NANO for safety,
while the others do believe NANO for safety.

Analysis of Nano
Project on marketing research was a learning experience and brought us close to NANO
and
provided us depth knowledge through focus group and survey.
• Focus group ended up with innovative findings, which helped us in going further on the
research. But some time in between the focus group was leading to group discussion.
Which was handled carefully without hurting the feelings of the respondents?
• Survey highlighted some futuristic facts about NANO, i.e. Females in the age group
20-25yrs want to offer NANO to their children. Respondents understood this question
with their own interpretations. Which tells us that questions asked to the respondents
should be more simplified? Because the respondents are diversified.

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SWOT

106
 Force Behind Nano

“I saw families riding around on scooters with kids standing up and mother carrying a baby
and sitting pillion and decided to do something about it. It started as aquest for an
affordable transportation solution”
- Ratan Tata

Mission Impossible - Nano

• Mission – Rs. 1 lakh car in every way a car.

• Mission started in year 2003 with 5 engineers.
• Mr. Girish Wagah introduced in year 2005 – Father of “Chota Hathi”.
• Around 55 prototypes tested.
• Designed by Italy’s Institute of Development in Automotive Deptt.
• Finally revealed at 9th Auto Expo in January 2008, Delhi
• Launched commercially on 23rd March 2009, Mumbai.
• Plant shifted from Singur – Sanand.

SWOT
Strengths
• 1st innovation – set a benchmark
• 41 patents for innovation
• Low price and stylish
• Environmental friendly – Green House effect
• High fuel efficiency

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• Space
Internal : 21% more than M-800
External : 8% less than M-800
• Variometric gear system – Magnifies torque
• Tested successfully for crumple zones

Weaknesses
• No modern facilities – ABS, PS, AC, etc.
• Less boot space
• No headlight ievelers
• Not fit for hilly terrain
• Poor traction control
• Poor engine cooling and hence overheating
• Small tyres
• Window wind down by hand
• No passenger side mirror

Opportunities
• Created a Niche market
• Diesel and Electric variant
• Recession
• Royalty
• Developing low price engine oil
• Auto finance
• Create employment

Threats
• New competitors – Bajaj, Chery, Honda Siel, GM, etc
• REVA an electric car
• Traffic congestion
• Government may increase taxes in metros
• Rising cost of raw material

108
• Reducing parking space
• Strict European Safety Standards

CONCLUSION

109
 Conclusion

After the study of the perception of people about Tata Nano, many facts came out of the
shell. If we want to reach on a conclusion, I feel that following conclusions may be
considered:
• Nano really proved cheapest car of the industry
• Nano definitely helps to come true for middle man’s dream
• Market expectations are much from Nano and to survive in the market Tata has to
take some steps so that it can maintain its quality with less price.

110
RECOMMENDATION AND SUGGESTIONS

111
112
Suggestions

1. Tata should increase the production of NANO so that customers don’t have to wait
much for their car, as they feel urgency for NANO.
2. As people believes that NANO is people’s car, and will be affordable by common
men which was a dream earlier for them. So the price should be kept stable in
future with the increase in price of raw material. Otherwise it will be out of their
reach and people believe in Mr. Ratan Tata’s statement of- “Promise is a promise”. But
it looks a little bit difficult for the company because rising price pf raw materials will
definitely increase price of Nano.
In this situation, company should try to increase the number of its loyal customer and
try to maintain the faith of people in Nano, as Tata is one the oldest company of India
and is known as a reliable company in the market.
3. Tata should give exchange offer against a two/four wheeler so that those
consumers can be easily converted to NANO users.
4. Safety measures and accessories can be enhanced, because people consider it as
their prime concern while purchasing, but again it will go for hike in price. That is
why, these options should be optional for customers, as it has already made Nano
a tailor made product according to need and pocket of customers.
5. An option for customization should be available.

113
APPENDIX

114
Questionnaire of Tata Nano

1. What is the first thing, which comes into your mind when you think about NANO?
..................................................................................................................................................
..................................................................................................................................................
..............................................................................................................

2. Instead of purchasing a Bike, will you prefer to go for the NANO?

1. Yes
2. No
3. Can’t say

3. Which feature of NANO attracts you most, that inspires you to go for NANO?
1. Price
2. Design
3. Mileage
4. Interior space
5. All the above
6. Can’t say

4. Which colour of NANO would you prefer?

1. Red
2. Blue
3. White
4. Yellow
5. Silver
6. Other, Specify……............

5. For what purpose would you like to use NANO?

1. Will offer it to your children to use it in place of a two wheeler.
2. Will use as family car for shopping and travel.
3. Will prefer as a taxi.
4. Would like to offer as gift.
5. Any other, specify.................................

115
6. Do you think NANO is people's car
1. Yes
2. No
3. Can’t say

7. Will you recommend NANO to your friends and relatives?

1. Yes
2. No
3. Can’t say

8. Which small car would you prefer to buy?

1. Maruti 800
2. Tata NANO
3. Other………………..

9. How long can you wait for NANO?

1. 1-2 months
2. 2-4 months
3. 4-6 months
4. Can’t wait

10. If the price of NANO rises, would you still purchase it?
1. Yes
2. No
3. Can’t say

11. Will Tata be able to maintain the price of nano in future if there is hike in cost of raw
materials?
1. Yes
2. No
3. Can’t say
12. How will you feel if NANO is used as a taxi?
1. Embarrass
2. Don’t care
3. Can’t say
116
13. Will there be traffic problem with the introduction of Nano on Indian roads?
1. Yes
2. No
3. Can’t say

14. Can you trust NANO for safety?

1. Yes
2. No
3. Can’t say

Signature of Respondent

Name of Respondent

117
BIBLIOGRAPHY

118
 Bibliography

• Journals from www.emeraldinsight.com

• www.scribd.com
• www.esnips.com
• www.wikipedia.org
• Search engine used www.google.com
• Business Standard - April 5th, 2007
• Business Line April 29th, 2007
• Indian Automobile Industry-Recent trends, RNCO, June 2005
• Indian Automotive Industry (2005-2010), RNCO, June 2006
• Indian auto Component Industry .Scope Marketing Information Solutions (P)Ltd Jan
2001
• News results for Indian Auto component Industry. Economic Times, 28th April 2007

119