PROJECT REPORT ON COMPARE THE STANDING TATA MOTORS vis--vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY TATA

Motors Ltd. SUBMITTED TO: SUBMITTED BY:

LOVELY INSTITUTE OF MANAGEMENT (LIM) DECLARATION I ARUN KUMAR GULERIA here by declare that the project report entitled COMPARE THE STANDING TATA MOTORS vis--vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY under guidance of Miss. Sukhwinder Arora submitted for the requirement of a degree programme of LOVELY PROFESSIONAL UNIVERSITY is my original work. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section. Signature : Date : Place : Jalandhar

ACKNOWLEDGEMENT In order to make my project I acknowledge a special thanks to all those people w ithout whose supports it would not be possible for me to complete for me to complete my report. First of all I really thankful to my Lovely Professional University because of t hem I could achieve the target. I express my sincere thanks to my project guide Miss. Sukhwinder Arora who had guide to me throughout my project. I would also thankful to the Satluj Motors (TATA MOTORS Dealership) for giving m e this opportunity to work on project in Mandi (H.P). I convey my heart full thank s to the Mr. Bhopal Singh Jamwal (Admin. Manager) and the staff members of Satluj Motors, with their help and corporation. Also I would like to express my inner feeling for all the people for co-operatin g and helping me throughout the project. Last but not the least I am thankful to my parents and friends who have provided me with their constant support throughout this project. Arun Kumar Guleria

PREFACE The professional training is the internal part of a M.B.A program. It helps the student understand practical aspects of Business Management in a better way as a part of my M.B.A. program at Lovely Professional University, Jalandhar. I was supposed to work the organization. Finance Management is the systematic and objective identification, collection, an alysis, dissemination, and use of information for the purpose of improving decision maki ng related to identification and solution of problems and opportunity Perception is the process, by which an individual selects, organizes and interpr ets information inputs to create a meaningful picture of the world around as To be a Master of Business Administration student is a matter of pride because w e are in a field, which help us to develop from a normal human being into a disciplined, and dedicated professional. One has to be a good learner to sharper knowledge in the particula r field to achieve and attain the desired goals and heights. I analysis the financial position of T ATA Motors and conducted a financial analysis of two of its competitors Mahindra & Mahindra and Maruti Udyog. To compare the standing TATA Motors vis--vis the industry. I used Balance Sheet, Profit & Loss Account, Cash Flow and Fund Flow Statement, and Ratio Analysis. And I also conducted Customer Satisfaction Survey of TATA Motors in the Mandi District of Himachal Pradesh. I used research questionnaires as the research and data collection tools. The responses were collected from 100 respondents from various areas of M andi. I had learned lot during my project on compare the standing TATA Motors vis--vis the industry & customer satisfaction survey of TATA Motors; I hope this will be help ful to find out financial standing of TATA Motors in automobile industry and satisfaction of con sumer in Mandi city.

INDEX

S.No. PARTICULAR Page No. 1. Declaration (i) 2. Acknowledgement (ii) 3. Preface (iii) 4. Executive Summary 7 5. Introduction 10 6. Literature Review: 6.1 Tata Motors July Sales At 48,054 Nos. 6.2 First Quarter Stand-Alone Net Revenue Rs.6405 Crores, Pat Grows 58% To Rs.514 Crores 6.3 Delivers First Tata Nano In The Country In Mumbai 6.4 June 2009 Domestic Sales At 43,244 Nos 6.5 First Jaguar Land Rover Showroom Opens In India 6.6 Tata Motors To Introduce Air Car 6.7 Consolidated Revenue In 2008-09 Rs. 70938.85 Crores, Loss After Tax Rs. 2505.25 Crores 6.8 Effect Of Inflation On Car Market 14 15 16 17 18 19 20 21 24 Profile Of Tata Group: 7.1 TATA Group Companies 27 32 Profile Of Tata Motors Limited: 35 7. 8. 8.1 Industry Overview 37 8.2 History Of Tata Motors 39 8.3 Important Developments 39 8.4 Global Operations 48 8.5 Future Challenges 51 8.6 Milestones52 8.7 Awards 57 Products Of Tata Motors:589. 9.1 Passenger cars and utility vehicles58 9.2 Concept vehicles59 9.3 Commercial vehicles 60 10. Marketing Strategies: 62 10.1 Launch Of Tata Nano 62 10.2 Modification In Tata Sumo 69 10.3 New Version Of Indigo ,Indigo Dicor 71 10.4 Tapping Of Rural Markets 72 11. SWOT Analysis - Tata Motors Limited 73 12. Financial Analysis: 76 12.1 Financial Overview 77 12.2 Capital Structure 78 12.3 Weighted Average Cost Of Capital 79 12.4 Balance Analysis 81

12.5 Financial Analysis Of Tata Motors 84 13. Global Automobile Industry 87

EXECUTIVE SUMMARY

The project on COMPARE THE STANDING TATA MOTORS vis--vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY based on financial performance and on customer survey. The main objectives of the project are: . Financial performance in automobile industry . Market performance . Market position. . Economic and the industry environment . Cost saving initiatives . Awareness regarding the facilities provided by Tata Motors. . Overall opinion about Tata Motors. . Satisfaction amongst the customers of Tata Motors For this project Financial Statements was analysis and customer research was car ried out at various area of Mandi District of Himachal Pradesh. I learnt analysis financial statement in to find different aspects for compare the standing vis--vis industry and customer s pe rception about TATA Motors. THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS: 1. Company Overview: This part describes the company profile. This part recognizes the achievements a nd rewards the company has achieved, it also gives little insights into what compan y offers to the Corporate and the Consumers. This section also describes the kind of tech nology used. 2. Company Profile:

This section gives the information about the company. It includes the company hi story which depicts the company from the period of foundation. This section also produ cts of the company producing by the company. 3. Analysis of Financial: Financial statements of the company over last few years are analysis in this sec tion and financial performance is output. 4. Competitors of company: The company s competitors are finding and study the business during the financial years. 5. Comparison of company s financial statements with competitors: Comparison of company s Balance Sheet, Profit & Loss Account and Fund and Cash Flow Statement with their competitor to find the standing of company in automobi le industry. FINDINGS: A detailed analysis of the company shows that the company has had a strong funda mental as well as a strong market performance over the years. Given the economic and th e industry environment (improving outlook for the CV industry) TATA Motors would be a key b eneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. On an average more than 73% people feel that the prices are affordable whereas 1 2% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% sai d that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the people s car as it is satisfactory on all other parameters: knowled geable sales persons , employees spent enough time before and during sales, display of merchandise is attractive,

availability of product, es are affordable, attractive discounts are to complaints quickly, service at TATA nal information and is value for money .

variety of merchandize, vehicle in good condition, pric offered, dcor of the waiting area is pleasing, responds Motors service station is excellent, careful with perso The overall opinion about TATA Motors is very good.

At the end it is submitted to Lovely Professional University

INTRODUCTION

India is an emerging country with huge potential. The domestic economy is now gr owing at around 9-10% per annum and India s importance in global terms is being reinforc ed by rapidly rising exports and domestic consumption. At a time when numbers of a slo wdown and overheating in the Indian economy have started gaining momentum, the Indian rupe e sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) ma rk. The automotive industry is at the center of India s new global dynamic. The domest ic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturer s product lines are being continually expanded, as is the local autom otive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive ind ustry solution high up the automotive value chain. India eyes 25 million automotive jobs. India's GDP is set to double over the next decade In percentage terms, the automotive industry's contribution should also double. In dollar terms, the sector's contribution is set to quadruple to some $145bn The automobile industry in India accounts for a business volume of $45 billion a nd has the potential to grow much faster both through Indian as well as international m anufacturers who have established huge facilities in the country With the world s second largest and fastest-growing population, there is no denyin g India s potential in both economic and population terms and the effect it will have on t he auto industry in the years to come. The country is already off to a good start, with a well-de veloped components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.

The implications, market drivers and scope of a future massive Indian vehicle m arket The implications, market drivers and scope of a future massive Indian vehi cle market are covered in the India Strategic Market Profile, a brand-new forecast of India n automotive and related activity to 2020. Based on Max Pemberton's unique relational long-term f orecasting model, it forecasts car and CV sales, demographics, materials usage, auto indust ry employment, and explains their inter- year of healthy growth in auto industry. INDUSTRY GROWTH: Future of the Automobile in the Economy:

US based consultancy, keystone predicts that India will become world s third large st automobile market by 2030. Overall size expected to exceed 20 million with compo unded annual growth rate of over 12%. INDIA THEN & NOW 1983 Number Number 2008 Number Number

of brands 2 of models 2 of brands 30 of models 70

LITERATURE REVIEW

Released on: 3rd August, 2009 Tata Motors July sales at 48,054 nos., growth of 18% M&HCV sales record year-on-year growth after almost a year -Ashish Garg Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. The company s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599 nos., a 23% growth over 37,033 nos. sold in July last year. Cumulative sales (including exports) for the company for the fiscal at 171,168 nos., was lower by 1%, compared to 172,462 nos. sold last year. Commercial Vehicles The company s sales of commercial vehicles in July 2009 in the domestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in July last year. LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658 nos. turning positive after almost a year with a growth of 6% over July last year and the highest since September 2008 Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100,464 nos., a growth of 7% over last year. Cumulative LCV sales were 63,180 nos., a growth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% over last year. Passenger Vehicles The passenger vehicle business reported a total sale and distribution offtake of 19,881 nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32% increase compared to 15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by 21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were 2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July last year. The Indigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV range of Sumo/Safari

accounted for sales of 2,638 nos., flat compared to July last year. The company began the sale and deliveries of the Jaguar and Land Rover range through the brands flagship store in Mumbai. The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813 Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica range at 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422 nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%. Exports The Company s sales from exports at 2,455 vehicles in July 2009 were lower by 34% compared to 3,696 vehicles in July last year. The cumulative sales from exports for the fiscal at 7,676 nos. were lower by 40% over 12,855 nos. in the same period last year.

Released on: 27th July, 2009 Tata Motors First Quarter Stand-alone net revenue Rs.6405 Crores, PAT grows 58% to Rs.514 crores - R. S. Sardha Tata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a standalone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared to Rs.6928.44 crores in the corresponding quarter previous year. The company s continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating profits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of the previous year. Profit before Tax for the quarter grew by 58.8% to Rs.548.04 crores (Q1 2008-09: Rs.345.09 crores) and Profit after Tax was Rs.513.76 crores (Q1 2008-09: Rs.326.11 crores), an increase of 57.5%. The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6% due to increased debt taken by the company during the previous year to support its product programmes, investments and working capital requirements and depreciation at Rs.229.12 crores was higher by 26.7% reflecting the increased investments in new products and supporting capabilities. For the quarter ended June 30, 2009, there was an exceptional notional foreign exchange valuation loss of Rs.5.54 crores (previous year loss of Rs.161.59 crores). Improvement in liquidity, increased reach across the country and introduction of new products and variants improved the company s sales, except in the case of the heavy truck segment. The heavy truck segment is recovering, albeit slowly, in response to infrastructure development, Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives. The company s domestic sales volume at 122,120 vehicles recorded a marginal

decrease of 1.4% over the corresponding quarter of the previous year, whilst the exports at 5220 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared to the corresponding quarter of the previous year. The company gained market share in commercial vehicles to 67.4% during the quarter compared with 61% in the corresponding quarter of previous year on the back of a marginal 1.1% growth in domestic sales to 72,216 units. Tata passenger vehicles declined by 10% in the domestic market to 45,846 units but have been growing sequentially every month of the quarter breaking into positive growth in June. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, the company has a joint market share of 12.3%

in the industry. The company continues to upgrade its resources to leverage emerging opportunities. In commercial vehicles, the company unveiled its new range of world standard trucks in May 2009, comprising multi-axle trucks, tractor-trailers, tippers, mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time. An all-new Starbus range of buses has also been introduced. A new mileage enhancing automatic stop-start technology, developed in-house, has been introduced in the Ace mini truck. Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM. In passenger vehicles, the company has completed the process of allotment of Tata Nanos, following the car s launch in March 2009. Deliveries to the allottees have since begun. The company also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with the Fiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the Fiat Grande Punto in June 2009. The audited stand-alone financial results for the quarter ended June 30, 2009, are enclosed. The consolidated financial results for the 1st quarter of Financial Year would be voluntarily disclosed separately in due course. Released on: 17th July, 2009 TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI - Rojar R. Karm Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano. Mr. Vichare received his choice, the Tata Nano LX (Lunar Silver), at the hands of the Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, at the company s dealership, Concorde Motors, today. Speaking on the occasion, Mr. Tata said, I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern, contemporary, emission-friendly city car.

Along with Mr. Vichare, two other customers, Mr. Ashish Balakrishnan (Tata Nano LX Sunshine Yellow) and Kores India Limited (Tata Nano LX Lunar Silver), also received their cars today. As planned, Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country. Dispatches to dealerships have begun from the Pantnagar plant, where the car is being produced, in accordance with schedules informed to customers.

Released on: 1st July, 2009 TATA Motors s June 2009 DOMESTIC SALES at 43,244 nos. -G. Lata Sure Tata Motors total sales (including exports) of Tata commercial and passenger vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The company s domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43,244 nos., a 1% decline over 43,814 nos. sold in June last year. Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declined by 7%, compared to 131,733 nos. sold last year. Commercial Vehicles The Company s sales of commercial vehicles in June 2009 in the domestic market were 26,205 nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales were 16,256 nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but an increase of 15% over May 2009. Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626 nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growth of 27% over last year. Passenger Vehicles The passenger vehicle business reported a total sale and distribution offtake of 19,513 nos. (17,039 Tata + 2,474 Fiat) in the domestic market in June 2009, an 11% increase compared to 17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive month at sales of 10,210 nos. --a growth of 19% over June 2008. The Indigo family recorded sales of 3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009. The Sumo/Safari range

accounted for sales of 3,307 nos., a decline of 11% compared to June 2008, but a growth of 29.7% over 2,550 nos. of May 2009. The company launched the Jaguar and Land Rover range in the last week of June in Mumbai. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50,691 nos. (45,837 Tata + 4,854 Fiat), against 52,495 nos. (51,094 Tata + 1,401 Fiat) in the same period last year. Cumulative sales of the Indica range at 28,849 nos., reported a growth of 12%. Cumulative sales of the Indigo family were 8,923 nos., a 32% decline over the same period last year. Cumulative sales of the Sumo/Safari range were 8,065 nos., a decline of 35%. Exports The Company s sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to 3,431 vehicles in June 2008.

The cumulative sales from exports for the fiscal at 5,220 nos. declined by 43% over 9,159 nos. in the same period last year. Released on: 28th June, 2009 FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA Jaguar Land Rover's official entry to the fast-growing Indian car market was mar ked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr. Rat an N. Tata, Chairman of Tata Sons and Tata Motors. Jaguar and Land Rover's award-winning vehicles are well known around the world. Jaguar has become one of the world's leading producers of beautiful fast cars. Land Rover produces the world s most versatile all-terrain vehicles, combining refined luxury with a true breadth of capability. The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover. Further details, including specifications, are avai lable on the new Jaguar India website (www.jaguar.in) and Land Rover India website (www.landrover.in). Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the wo rld-class Ceejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar a nd Land Rover vehicles, with a dedicated showroom section for each brand. It aims to establish a benchmark experience in luxury car sales in India, with plans to develop the dealer network throughout 2009 and 2010. Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands, accompanied by a parts and service network. We hope that they will delight customers in India just as they have done in markets the world over." Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India. It is an exciting time to be ente ring the Indian market, a country with increasing affluence and an economy which is still growin g. We believe

that the Indian market holds significant growth potential in the long term, and we hope to tap the demand for premium vehicles from discerning customers." Released on: July 7, 2009 TATA MOTORS TO INTRODUCE AIR CAR Ben MaGreow Tata Motors is taking giant strides and making history for itself. First the Landrover-Jaguar deal, then the world's cheapest car and now it is also set to introduce the car that runs on air, compressed air to be specific. With fuel prices touching nearly $150 per barrel, it is about time we heard some breakthrough! India's largest automaker Tata Motors is set to start producing the world's first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Ngre for Luxembourg-based MDI, uses compressed air, as opposed to the gasandoxygen explosions of internalcombustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009. The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would have a range of around 300 km between refuels. The cost of a refill would be about Rs. 85 ($ 2). Tata motors also plans to launch the world's cheapest car, Tata Nano priced famously at One lakh rupees(1200) by October. The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are no keys -just an access card which can be read by the car from your pocket. According to the designers, it costs less than 50 rupees per 100Km (about a tenth that of a petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving), a factor which makes a perfect choice in cities where the 80% of motorists

drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-300 kilometers. As a viable alternative, the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours. Due to the absence of combustion and, consequently, of residues, changing the oil (1 litre of vegetable oil) is necessary only every 50,000Km.] The temperature of the clean air expelled by the

exhaust pipe is between 0-15 degrees below internal air conditioning system with no zero, which makes it suitable for use by the need for gases or loss of power. Released on: 26th June, 2009 Consolidated Revenue in 2008-09 Rs. 70938.85 crores, Loss after Tax Rs. 2505.25 crores Tata Motors today reported consolidated gross revenue of Rs.74151.21 crores in 2008-09. The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008. In 2007-08, the consolidated gross revenue was Rs.40340.79 crores. The consolidated revenues (net of excise) in 2008-09 amounted to Rs.70938.85 Crores (2007-08: Rs. 35660.07 crores). On a consolidated basis, the company reported a Loss after Tax in 2008-09 of Rs. 2505.25 crores; in 2007-08, the company had reported a Profit after Tax of Rs. 2167.70 crores. Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.(56.88) (2007 08: Profit of Rs. 56.24) for its consolidated operations. Tata Motors has already reported on May 29, 2009, that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs.25660.79 crores, and Profit after Tax for the year was Rs.1001.26 crores. Business Highlights: Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008. However, the global meltdown, especially after July 2008 with vehicle financing and demands drying up, impacted the auto industry worldwide, including Jaguar Land Rover. In 2008 therefore, Land Rover sales fell considerably. However, Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan. The company has actively responded to this changed situation by taking a number of urgent and long term measures. These include cutting costs drastically and working on a plan of substantial cost reduction,

aligning production with demand and tight control over cash flows. In addition, the company has introduced successfully new variants on both Jaguar and Land Rover brands, and is to unveil the all new XJ sedan shortly. TDCV: While market illiquidity and high interest rates in South Korea impacted the company s domestic performance, it

strongly grew exports. The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments, as also product development initiatives. Telcon: The company has launched several new products, but was impacted by the credit squeeze in the third quarter of the year. It expects demand revival supported by infrastructure spend in the country. HVAL & HVTL: Though impacted by lower volumes on the back of decline in medium and heavy trucks, the two companies significantly reduced variable costs to counter the slowdown. Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad. TMFL: In line with Tata Motors sales in 2008-09, there was a decline in disbursals. It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage. Tata Technologies: The company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects, and has expanded presence in aerospace design and aero structures. While the year ahead is challenging, it has developed appropriate business structures and processes to strengthen relationship with strategic clients.

Released on: 29th May, 2009 Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores, and Net Profit lower at Rs.1001.26 crores, due to market upheaval Tata Motors today reported gross revenue (stand-alone) of Rs.28599.27 crores (2007 08: Rs.33093.93 crores) in 2008-09, a year marked by severe demand contraction in the automobile industry. Revenues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%. The Profit before Tax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax for the year was Rs.1001.26 crores compared to Rs.2028.92 crores, a decline of 50.7%. The demand contraction was triggered by high interest rates and unavailability of finance throughout the year; particularly in the October-December quarter post the global financial market upheavals. The impact on heavy commercial vehicles was more severe, abetted by reduction in freight movement in different segments and customer concerns on economic conditions. Small commercial vehicles, like the Tata Ace and the Tata Magic, have continued to improve penetration. Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales, as in the automobile industry, but growth is yet to revive to earlier levels. The fall in volumes combined with peak input prices and high interest rates brought margins under pressure. The company accelerated cost reduction measures and proactively managed working capital to contain the impact as best as it could. The total 2008-09 sales volume (including exports) is 506,421 units, compared to 585,649 units in the previous year. The company retained its domestic leadership position in commercial vehicles, and continued to be amongst the top three in passenger vehicles. Domestic commercial vehicles sales amounted to 265,373 units (2007-08: 312,935 units). The company increased market share in commercial vehicles to 63.8% (2007-08: 62.2%), aided

by its wide product offering. Domestic

passenger vehicles sales amounted to 207,512 units (2007-08: 218,055 units).The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 13.1% for the year (2007-08: 14%) and a March exit share of 14.5%. Tata Motors exports were 33,536 numbers (2007-08: 54,659 numbers), impacted by the worldwide downturn in the industry. The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea, both of which have been received well. In commercial vehicles too, new products, introduced during the year or the previous year, offering benefits like higher fuel efficiency, grew at a faster rate and helped enhance market share. The landmark events of the year were the acquisition of Jaguar Land Rover on June 2, 2008, and the launch of the Tata Nano on March 23, 2009. Over 2.03 lakh fully paid bookings were received for the Tata Nano, the deliveries of which will begin from July 2009. The Pantnagar plant began producing the Tata Nano during the year, while the Sanand plant is rapidly progressing towards completion. DIVIDEND The Board of Directors has recommended a dividend of Rs.6/-per Ordinary share and Rs.6.50 per A Ordinary share of Rs.10/each for the financial year 2008-09 (2007 08: Rs.15/-for Ordinary share). The dividend is subject to approval of shareholders; tax on the dividend will be borne by the Company. The Audited Financial Results for the financial year ended March 31, 2009, are enclosed. EFFECT OF INFLATION ON CAR MARKET - Hindustan Times The growth in the car market has shown declining results as a result of the inflation. The effect on inflation has affected every sector which is related to car manufacturing and production. The increase in the price of fuel and the steel has led to a slower growth

rate of the car industry in India. The production of Indian cars has been brought to a noticeable halt for inflation. It has also been noticed that leading car manufacturer in India like the Tata Motors, Maruti, Hyndai and Honda are trying hard to boost their production and sales of the cars in a scenario where the stock market is on a slow rise. Due to inflation it has also been noticed that the sales of car are being motivated by the discount offers that the automobile companies are offering to the buyers. Some car manufactures have gone to the extent of giving exchange offers to the consumers and some have introduced a competitive finance rates. The effect of inflation has taken the rise in the price rate of the cars by 3-4%, which in turn suffices the need to meet the rise in price of the raw materials to build a car.

The effect of inflation has affected not only the production and sales of Indian cars but also has significantly affected the car dealer, officials and car financers. Research and observations have led to the conclusion that in the year 2008, the car market and the car industry is expected to witness 8-9% fall. The effect of inflation on the car manufacturers have in turn affected the dealers in a way where they are being pressurized to push the sales graph higher and keep a high profit margin. The financers in the cycle are pressurized by both car manufacturers and dealers to pay the consumers a cent percent financial assistance by reducing on the loan interest rate. Overall it has been noticed that the automobile market in India and specially the car market in India have experienced a downtrend with the inflation affecting almost every industry to which the car market is essentially related.

THEORETICAL RELEVANCE OF TATA MOTORS S LONG TERM FINANCIAL BEHAVIOR -Financial Institute As per the Trade off theory, the marginal cost and benefit of debt in determining the best financial structure of a company is considered, at most considerate liability percentage, a companies market value is brought up and the companies whose liability percentage diverge from th e best possible can increase their price by bringing their liability percentage towards the target . ( European Journal of Economics) The pecking order theory is based on the idea of asymmetric information between m anagers and investors. A company increases its debits by issuing new equities to finance new projects because if not done the same way then and new investors are brought into consideration then the new Investors will make most of the profit which is the net present value (NPV) of that particul ar project which will cause lose to the present share holders. To avoid this most of the firms te nd to finance their new projects using a security that is not undervalued in the market, which can be in ternal funds or some other less dangerous debt securities. Therefore, this is what affects the choice between internal and external financing. (European Journal of Economics). The M&M theory is a theory of capital structure which explains that a company s mar ket price is definite by its earning power and by the basic risk of its resources, the thr ee most important ways of funding, they are issuing shares, borrowing and retaining profits As opposed to dispersing them to shareholders in dividends (Modigliani-Miller Theo rem M& M) This theory also says that if there are no taxes, bankruptcy costs, and asymmetr ic information, in an efficient market then a company s value becomes solid for finance by its source s. It makes no difference how the company s funds are increased either by issuing stock or by sel ling debt and neither matters the dividend policy of the company . (Modigliani-Miller Theorem M&M) Therefore, According to the above composed data the Tata motors raised funds fro m NYSE in 2004, and then from Bombay stock Exchange, Private Equity Funds, Sale of Stakes, Inter-Group Sales and Bridge loans, so, this is in accordance to the pecking order theory whi ch says that a company increases its debits by issuing new equities to finance new projects bec ause if not done the same way then and new investors are brought into consideration then the new Investors will

make most of the profit which is the net present value (NPV) of that particular pr oject which will cause lose to the present share holders. To keep away from this situation m ost of the firms tend to finance their new projects using a security that is not undervalued in t he market, which can be internal funds or some other less dangerous debt securities. Therefore, t his is what affects the choice between internal and external financing . Hence, the pecking order theory explains the need of the firms to rely on the in ternal sources of the company for finances and also explains why the companies prefer debt to equi ty if external financing is required.

COMPANY PROFILE

TATA GROUP Tata is a rapidly growing business group based in India with significant interna tional operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of which 61 per cent is from business outside India. The Group employs around 350,0 00 people worldwide. The Tata name has been respected in India for 140 years for its adher ence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sec tors: communications and information technology, engineering, materials, services, ene rgy, consumer products and chemicals. The Group s 27 publicly listed enterprises have a combined market capitalization of some $60 billion, among the highest among Indian business hous es, and a shareholder base of 3.2 million. The major companies in the Group include Tata S teel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, I ndian Hotels and Tata Communications. The Group s major companies are beginning to be counted globally. Tata Steel becam e the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jag uar and Land Rover. TCS is a leading global software company, with delivery centres in the US , UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the world s s econd largest manufacturer of soda ash. Tata Communications is one of the world s largest wholes ale voice carriers. In tandem with the increasing international footprint of its companies, the Grou p is also gaining international recognition. Brand Finance, a UK-based consultancy firm, r ecently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world.

Businessweek ranked the Group sixth amongst the World s Most Innovative Companies. And the Reputation Institute, USA, recently rated it as the World s Sixth Most Reputed Fir m. Founded by Jamsetji Tata in 1868, the Tata Group s early years were inspired by th e spirit of nationalism. The Group pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Group s pioneering spirit has been showcased by companies like Tata Consultancy Services, India s first software comp any, which pioneered the international delivery model, and Tata Motors, which made India s fi rst indigenously developed car, the Indica, in 1998 and recently unveiled the world s lowest-cost car, the Tata Nano, for commercial launch by end of 2008. The Tata Group has always believed in returning wealth to the society it serves. Twothirds of the equity of Tata Sons, the Tata Group.s promoter company, is held by philanthropic trusts which have created national institutions in science and tec hnology, medical research, social studies and the performing arts. The trusts also provide aid an d assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined de velopmentrelated expenditure of the Trusts and the companies amounts to around 4 per cent of the Group s net profits. Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Ek a supercomputer (developed by another Tata company), which in 2008 is ranked the world s fourth fa stest. The Group aims to build a series of world class, world scale businesses in select se ctors. Anchored in India and wedded to its traditional values and strong ethics, the Group is build ing a multinational business which will achieve growth through excellence and innovation, while bala ncing the interests of its shareholders, its employees and wider society.

CORE VALUES OF TATA At the Tata Group our purpose is to improve the quality of life of the communiti es we serve. We do this through leadership in sectors of national economic significanc e, to which the Group brings a unique set of capabilities. This requires us to grow aggressively in focused areas of business. Our heritage of returning to society what we earn evokes trust among consumers, employees, share holders and the community. This heritage is being continuously enriched by the formalization of the high st andards of behavior expected from employees and companies. The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance Group synergy and becomi ng globally competitive is the route to sustained growth and long-term success. . FIVE CORE VALUES The Tata Group has always sought to be a value-driven organization. These values continue to direct the Group s growth and businesses. The five core Tata values underpinning t he way we do business are: Integrity: We must conduct our business fairly, with honesty and transparency. E verything we do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve. Excellence: We must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

TATA Group Companies

Family pride The TATA family of enterprises comprises 98 companies in seven business sectors. This section lists all these companies under the sectors in which they operate, besides the t wo promoter companies of the Group. The Seven Business Sectors are: Engineering (AUTOMOTIVE): Tata Auto comp systems: Subsidiaries/Associates/Joint Ventures: International Automotive, Knorr Bremse S ystems for commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering, TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics Division, Taco Kunstofftechnik, TACO MobiApps Telemaics, TACO Supply Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Y azaki Auto Comp, TC Springs, Technical Stampings Automotive. Tata Motors: Subsidiaries /Associates/ Joint Ventures: Concorde Motors, HV Axels, HV Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata Technologies, Telco construction Equipment. Engineering Services Tata Projects, TCE Consulting Engineers, Voltas Engineering Products TAL Manufacturing Solutions, Telco Construction Equipment Company, TRF METALS: TATA STEEL Subsidiaries /Associates/ Joint Ventures: Hooghly Met Coke and Power Company, Jamshedpur Injection Powder (Jamipol), Jamshedpur Utility and Service Company Limited (JUSCO), Lanka Special Steel, Mjunction Serves, NatSteel, Sila Eastern Company, Tata Blue Scope Steel, Tata Metallic, Tata Pigments, Tata Refractories, Tata Ryerson, Tata Sponge Iron, Tata steel (Thailand), Tata Steel KZN, Tayo Rolls, Th e Dhamra Port Company, The Indian Steel and Wire Products, The Tinplate Company of India, Tm International Logistics, TRF.

ENERGY: POWER Tata BP Solar India Tata Power Subsidiaries /Associates/ Joint Ventures: Tata Ceramics, Tata Power Trading, Nor th Delhi Power Limited OIL AND GAS Tata Petrodyne CHEMICALS: Rallis India Tata Pigments Tata Pigments PHARMA Advinus Therapeutics SERIVES: HOTELS AND REALTY Indian Hotels (Taj Group) Subsidiaries /Associates/ Joint Ventures: Taj Air, Roots Corporation (Ginger Hot els) THDC Tata Realty and Infrastructure FINANCIAL SERVICES Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management, Tata Capital, Tata Financial Services, Tata Investment Corporation OTHER SERVICES Tata Quality Management Services, Tata Services, Tata Strategic Management Group

CONSUMER PRODUCTS:

Infiniti Retail Tata Tea Subsidiaries /Associates/ Joint Ventures: Tata Coffee, Tata Tetley, Tata Tea Inc Tata Ceramics Tata McGraw Hill Publishing Company Titan Industries Trent INFORMATION SYSTEMS AND COMMUNICATIONS: Nelito Systems Tata Consultancy Services Subsidiaries /Associates/ Joint Ventures: APONLINE, Airline Financial Support Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corporation, WTI Advance Technology . Tata Elxsi SerWizSol Tata Interactive Systems Tata Technologies COMMUNICATIONS Tata Sky Tata Teleservices Subsidiaries /Associates/ Joint Ventures: Tata Teleservices (Maharashtra) Tata Communication Tata Net INDUSTRIAL AUTOMATION Nelco Subsidiaries /Associates/ Joint Ventures: Tatanet

TATA MOTORS LIMITED

The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locom otive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945 , listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was o ne of the top 10 wealth creators in India, With manufacturing facilities in the towns of Jamsh edpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata un der the flagship company known as Tata and sons group. He commands 22000 employees worki ng in three plants as well as other regional and zonal offices across the length and b readth of India. Tata motor s passenger cars still need to reach acceptable international requireme nts. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was sepa rated into a subsidiary company in sep. 2006, where it recorded a strong financial performanc e during the last 5 year period. From year 2003-2007, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called A share would have different voting and dividend rights, for every s uch 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) B orrowed for Acquisition of jaguar and Land Rover from their principle The Ford Motor Company s . It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units, they are Tata Daewoo commercial vehicle compan y, HV transmissions, Tata motors finance, Tata technologies and TELCO construction equ ipment, the sales of the stakes would possible conclude by June 2009, helping it to raise fu rther funds for this acquisition, earlier in July it sold 24% stake in an Auto component unit to a gr oup firm and booked a profit of Rs. 110 crores, it also sold 10 million shares or 1.36% of Ta ta steel for RS. 486 crores to Tata Sons, the holding company of whole Tata group firms.

"The Company aims to monetize a part of its funds through a phased divestment of certain investments preferably as inter-group sales wherever possible at current market prices in the coming six to eight months," the money that will be released from these inve stments will become a part of the capital to be lifted for repayment of the bridging loan tak en for the JaguarLand Rover acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March from a consortium of banks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28th may its share value has fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at 15, 049.86 points. The Analysts say that, this is a strategic move taken by Tata Motors because it is allowing the company to make a lot of profit even when the market is in the financial pressur e allows Tata sons to raise its wager in group companies. If the company will follow the above mentioned trends then possibly it can raise its finances in a low liquidity and high interest rate set-up.

INDUSTRY OUTLOOK The Indian Automobile Industry enjoys the advantage of low cost base, high skill ed labour, strong ancillary network coupled with Government s support by way of conce ssional excise duty of 16% for small cars, ban on overloading and also significant inves tments proposed for removing infrastructure bottlenecks. The CV industry is directly related to the economic growth and development. The growth in demand for CVs is directly related to the IIP index and any upsurge in economic activities will call for more cargo movement in the econ omy. The domestic CV market grew at a CAGR of 26.7% during the last 6 years. In FY07, the CV segment registered a growth of 32.2% due to Supreme Court s ban on over loading trucks. However, we believe that this is a one-time demand and the CV segment may not wi tness such kind of growth repeatedly. There is a regulation that restricts the movement of vehicles above certain age (15 years in National Capital Region and 8 years in Mumbai). Though the rule is not being followed strictly at present, in future if this rule is implemented strict ly it will result in huge replacement demand. With the Indian economy expected to grow at 8.5% to 9% in coming years, we expec t the demand for CVs to be fairly decent except for the fact that the industry is curr ently experiencing a correction due to sharp spurt in demand in the previous years. The CV industry witnessed a change in demand dynamics in last few years. The dem and for LCVs in the <=3.5 tonnes segment is rising at the cost of demand in 5 to 7.5 tonnes category, while demand in 7.5 to 12 tonnes segment and 16.2 to 25 tonnes segment is boomin g at the cost of demand in 12 to 16.2 tonnes segment. Demand for trailers of >35.2 tonnes is w itnessing a surge while demand for semi-trailers in 26.4 to 35.2 tonnes segment is suffering . This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distrib ution, which is now adopted by transportation players because of improved road infrastructure an d also the ban on trucks in many cities by the authorities to tackle the traffic congestion iss ues. According to the Hub & Spoke model, HCVs plying over the highways to transport goods to different states and districts, while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3.5 tonner vehicles.

History

History of TATA Motors 1. Tata Motors launches its first truck in collaboration with Mercedes-Benz. Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwan ji Tata and J. Baker. The company was established in 1945 as a locomotive manufacturing unit an d later expanded its operations to commercial vehicle sector in 1954 after forming a joi nt venture with Daimler-Benz AG of Germany. 2. TATA Indica The first generation Tata Indica After years of dominating the commercial vehicle market in India, Tata Motors en tered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility v ehicle. After the

launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the fir st fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, th e car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of t he best selling cars in the history of the Indian automobile industry. A newer version of the ca r, named Indica V2, was a major improvement over the previous version and quickly became a massfavourite. 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 Afri ca.The success of Indica in many ways marked the rise of Tata Motors. 3. TATA Brads DAEWOO ACQUISITION Tata Novus is one of the best selling commercial trucks in South Korea. With the success of Tata Indica, Tata Motors aimed to increase its presence worl dwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons be hind the acquisition were: . Company s global plans to reduce domestic exposure. The domestic commercial vehicl e market is highly cyclical in nature and prone to fluctuations in the domestic ec onomy. 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 vehicl e 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 variou s markets across the world in both MHCV as well as LCV segments. . To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tat a 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 Ind ia at an appropriate time. This was mainly to cater to the international market and al so to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project . Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daew oo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motor s has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus. HISPANO CARROCERA Hispano Divo at the 2008 FIAA in Madrid In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motor s became acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it controlling rights of the company.

JAGUAR CARS AND LAND ROVER After the acquisition of British Jaguar Land Rover (JLR) business, which also in cludes the Rover, Daimler and Lanchester brand names Tata Motors became a major player in t he international automobile market. Jaguar XF Land Rover's Range Rover On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their J aguar and Land Rover operations for US$2 billion. The sale was completed on 2 June 2008 Ta ta has gained the rights to the Daimler, Lanchester, and Rover brand names. In addition to the brands, Tata Motors has also gained access to 2 design center s and 3 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies.

JOINT VENTURES

Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motor s acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and introduced its highend inter-city buses in the country. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazilbased 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 ma ss rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.

IMPORTANT DEVELOPMENTS

In 2005 & 06

Tata Ace was India's first mini truck Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launc hed 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 rapidl y 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 I ndustries.By 2005; Autoline was producing 300 load bodies per day for Tata Motors. Ace is sti ll one of the number makers for TML, TML sold the 2,00,000th Ace in August 2008, within 4 year s 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 Elec tric Motorcars division. In 2007 In 2007, Tata Motors launched several concept models and future designs of exist ing models. It also formed joint ventures with various local companies in several co untries 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 varia nt 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 Sau di Arabia. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-c ar during the Geneva Auto Show. Tata Motors also formed a joint venture with Fiat and gained access to Fiat s dies el engine technology. Tata Motors is looking to extend its relationship with Fiat a nd Iveco to other segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' w ill mark the entry of the company into developed markets like Europe and the United States. T he project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Comme rcial 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 joi nt venture with Thailand s Thonburi Company, an independent auto assembler, in which Tata Mot ors will hold a 70% stake. In 2008 COMPRESSED AIR CAR Tata OneCAT Motor Development International of Luxembourg has developed the world's first pr ototype of a compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to h ave "the backing of Tata".

It has air tanks that can be filled in 4 hours by plugging the car into a standa rd electrical plug. In 2008 MDI planned to also design a gas station compressor, which would f ill the tanks in 3 minutes. There are no gasoline costs and no fossil fuel emissions from the veh icle when run in town, but "the compressed air driving the pistons can be boosted by a fuel burne r". OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tank s it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. It is actua lly a dual fuel car but it is more efficient than any present Hybrid cars. IN 2009 AND ONWARDS Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and comm ercial vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009. Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of Norway for US$1.93 M, which specialises in the development of innovative solutions for elec tric vehicles, and plans to launch the electric Indica hatchback in Europe next year.

GLOBAL OPERATIONS Tata Motors has been aggressively acquiring foreign brands to increase its globa l presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that w as acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand na mes: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Compan y, South Korea s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicl es Company has launched several new products in the Korean market, while also expor ting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanis h bus and coach manufacturer, giving it controlling rights of the company. Hispano s pre sence is being expanded in other markets. On Tata's journey to make an international foot print , it continued its expansion through the introduction of new products into the market range of buse s (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Tru ck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa , the SAARC countries and the Middle-East by the end of 2009. In 2006, it formed a joint ven ture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches t o manufacture fully-built buses and coaches for India and select international markets. Tata M otors has expanded its production and assembly operations to several other countries inclu ding South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operat ions in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries ac ross 4 continents. Though Tata is present in many counties it has only managed to creat e a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri L anka and Nepal and has a growing consumer base in Italy, Spain and South Africa.

The Government of India announced an automobile policy in December 1997. The pol icy 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 t o a schedule for increasing the share of locally made parts in their cars. Mere car assembling op erations 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 c ountry. Investments in making auto parts by a foreign vehicle maker will also be conside red 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, 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.

The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets.

With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its intention to enter the sedan and sports car markets.

Tata Indica assembled in Thailand and Argentina. Tata Prima The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata int o the international sedan market. The car is to be sold in India by 2013 and around th e world by 2015 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 s et up plants in Turkey, Indonesia and Eastern Europe.

FUTURE CHALLENGES

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 p osition in the CV business. ITEC is the leader in medium and heavy trucks and buses in Nort h 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 applicatio ns 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 spec ialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle veh icles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 uni ts per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its pro duction 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 manufactur e 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 fac ilities. 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. Suzuki: Suzuki through its subsidiary, Maruti Suzuki in the Indian market may al so be alarming. Maruti has aggressively launched family cars to undermine the Tata mod els.

MILESTONES 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. 1977 First commercial vehicle manufactured in Pune. 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. 1991 Launch of the 1st indigenous passenger car Tata Sierra. One millionth vehicle rolled out. 1994 Launch of Tata Sumo - the multi utility vehicle. 1995 Mercedes Benz car E220 launched. 1996 Tata Sumo deluxe launched. 1997 Tata Sierra Turbo launched. 1998 Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicles rolled out. Indica, India's first fully indigenous passenger car launched.

2001 Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of the Tata Safari EX 2002 2,00,000th Indica 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 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out 2004 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement and completes acquisition of Daewoo Commercial Vehicle Company Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy 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 Ace, India's first mini truck launched The power packed Safari Dicor is launched Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced and sold Inauguration of new factory at Jamshedpur for Novus 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 Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors first plant for small car to come up in West Bengal Tata Motors and Fiat Group announce three additional cooperation agreements 2007 Construction of Small Car plant at Singur, West Bengal, begins on January 2 1 New 2007 Indica V2 range is launched 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. 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 Latest common rail diesel offering- the Indica V2 DICOR, launched. 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 Nano is launched.

MANAGEMENT

Board of Directors: Mr. Ratan N Tata (Chaiman) Mr. Dr. Mr. Mr. Mr. Dr. Mr. Mr. N. A. Soonawala J.J. Irani V.R. Mehta Nusli N Wadia S. M Palia R. A. Mashelkar Ravi Kant P. M. Telang

Senior Management Mr. Ravi Kant : Executive Director Mr. P. M Telang : Executive Director Mr. Rajive Dube : President (Passenger Cars) Mr. C Ramkrishnan : Chief Financial Officer Mr. P.Y. Gurv : Vice President (Corporate Finance-Accounts and Taxation) Dr. S. J. Tambe : Vice President (Human Resource) Mr. Zackria Sait : Vice President (Technical Services) Mr. A. M Mankad : Head (Car Plant) Mr. S. B. Borwankar : Head (Jamshedpur Plant) Mr. S. Krishnan : Vice President (Commercial-PCBU) Mr. Ravi Pisharody : Vice President (Sales & Marketing) Mr. H. K. Sethna : Company Secretary

AWARDS

. PCBU bags Handa Golden Key Award . . Tata Motors receives Uptime Champion Award 2007. . Aggregates Business, CVBU, bags Best Supplier Award from ECEL. . NDTV Profit Business Leadership Award. . Tata Motors bags National Award for Excellence in Cost Management . Tata Motors TRAKIT bags silver award for Excellence in Cost Management . Tata Motors Pune CVBU has bagged the Golden Peacock National Quality Award. . Tata Motors was awarded four prestigious honors, at the CNBC TV18-Auto Car . . Tata Motors chosen as India s Most Trusted Brand in Cars . Business Today selects Mr. P.P Kadle as India s Best CFO in 2005 . Pune Foundry Division bags prestigious Green Foundry Award . Tata Motors is Commercial Vehicle Manufacturer of the Year . ACE bags Best Commercial Vehicle Design at the BBC-Top Gear Awards . Tata Motors bags the prestigious CII EXIM Bank award for business excellence . Car Maker of the year Award for Tata Motors . Tata Motors is Commercial Vehicle Manufacturer of the year . . CFO of the Year Award 2004 awarded to Mr. Praveen P Kadle, Executive Director. . Tata Motors wins Golden Peacock Award for Corporate Social Responsibility. . Tata Motors Jamshedpur wins Energy Efficient Unit Award . . Tata Motors wins the first CSIR Diamond Jubilee Technology Award. . Tata Motors Jamshedpur & Lucknow win awards

Products of TATA Motors [1] Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI

 Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover [2] Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva Indica Vista

 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima [3] Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES 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 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 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) [4] 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) Tata LPTA 1621 TC (6x6) Tata LPTA 1615 T

MARKETING STRATEGIES 1. LAUNCH OF TATA nano TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh a fter tax) for the masses and they call it The People s Car . It s a sweet looking small car, just enough to take four people around the city. 1 Lakh rupees roughly translate to 2500 rupees mont hly installment and because of this reason TATA is expect to sell record breaking numbers and le ave Indian roads blocked. Following TATA Nano car specs in comparison with Maruti 800: Overall Length of Nano is 3100 MM which is 7% shorter than Maruti 800 Overall Breadth of Nano is 1500MM which is 4% Wider than Maruti 800 Overall Height of Nano is 1600MM which is 14% Taller than Maruti 800 Overall inside Space of Nano is 21% Bigger than Maruti 800 Engine Capacity 623CC 2 Cylinders, Maruthi 800 s got 3 Cylinders Power 33BHP, less than Maruthi 800 Top Speed: 120 Kmph Top Speed Lower Than Maruti 800 Fuel eff TATA Nano will hit the roads and as it is a definite threat to Maruti 800. TATA stated that the initial production of this car will be of 250,000 a year. After about four y ears of hard efforts TATA Nano (1 lakh rupee car) was on road now. The introduction of the Nano received media attention due to its targeted low pr ice. The car is expected to boost the Indian economy, create entrepreneurial-opportunities acros s India, as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chair man of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano ha s been greatly appreciated by many sources and the media for its low-cost and eco-friendly init iatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is exp ected to massmanufacture the Nano, particularly the electric-version, and, besides selling th em in India, to also export them worldwide.

Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year), and have also criticised the pollution tha t it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Ta ta Motors has promised that it would definitely release Nano's eco-friendly models alongside t he gasolinemodel. The Nano was originally to have been manufactured at a new factory in Singur, We st Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company will bank on exis ting dealer network for Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the incenti ves offered by West Bengal government.

The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, a imed primarily at the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the highway and around 22.00km/l in the city. It was first presented at the 9th annu al Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch o n March 23, 2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car begin in July 2009, with a starting price of Rs 11 5,000 (rupees). This is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 184,641Rupees. DESIGN Ratan Tata, the Chairman of Tata Motors, began development of the world's cheape st production car in 2003, inspired by the number of Indian families with two-wheeled rather t han fourwheeled vehicles. The Nano's development has been tempered by the company's succ ess in producing the low cost 4 wheeled Ace truck in May 2005. Contrary to speculation that the car might be a simple four-wheeled auto ricksha w, The Times of India reported the vehicle is "a properly designed and built car". The Chairman is reported to it's a real car." have said, "It is not a car with plastic curtains or no roof To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers. The car was designed at Italy's Ins titute of Development in Automotive Engineering with Ratan Tata requesting certain changes , such as

the elimination of one of two windscreen wipers. Some components of the Nano are made in Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other technologies. The Nano has 21% more interior space (albeit mostly as stance) and an 8% smaller exterior compared to its closest rival, the the car in three versions: the basic Tata Nano Std; the Cx; and the Lx. ch have air conditioning, power windows, and central locking. Tata ction target at 250,000 units per year. COST CUTTING FEATURES The Nano's trunk does not open. Instead, the rear seats can be folded down to ac cess the trunk space. It has a single windscreen wiper instead of the usual pair. It has no power steering. Its door opening lever was simplified. It has three nuts on the wheels instead of the customary four. It only has one side view mirror. PRICE Tata initially targeted the vehicle as "the least expensive production car in th e world" aiming for a starting price of 100,000 rupees or approximately, despite rapidly rising material prices at the time. As of August 2009, material costs had risen from 19% to 29% over the car s develop ment, and Tata faced the choice of: introducing the car with an artificially low price through government subsidies and taxbreaks forgoing profit on the car using vertical-integration to artificially boost profits on cars at the expense of their materials industries partially using inexpensive polymers or biodegradable plastics instead of a full metalbody headroom, due to its tall Maruti 800. Tata offered The Cx and Lx versions ea has set its initial produ

 raising the price of the car Nano is available in three trim levels: The basic Tata Nano Std priced at 123,000 Rupees has no extras; The deluxe Tata Nano CX at 151,000 Rupees has air conditioning; The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows an d central locking The Nano Europa, European version of the Tata Nano has all of the above plus a l arger body, bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European cras h standards and emission norms. The base model will have fixed seats, except for the driver's, which will be adj ustable, while the deluxe and luxury models will get air conditioning and body coloured bumpers. Technical specifications According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L /100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/ 100 km on highways ( 25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a tw o-cylinder nonopposed petrol engine will be used in a car with a single balance shaft. Tata Mo tors has reportedly filed 34 patents related to the innovations in the design of Nano, wi th powertrain accounting for over half of them. The project head, Girish Wagh has been credite d with being one of the brains behind Nano's design. Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is r evolutionary or represents earth-shaking technology. He said most relate to rather mundane items such as the two-cylinder engine s balance shaft, and how the gears were cut in the transmissio n. Though the car has been appreciated by many sources, including Reuters due to "t he way it has tweaked existing technologies to target an as-yet untapped segment of the market", yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology", just low in price. Moreover, technologies which are expected of the new and yet-to-be -released car

include a revolutionary compressed-air fuel system and an eco-friendly electricversion, technologies on which Tata is reportedly already working, though no official inc orporation-date for these technologies in the new car has been released. According to Tata, the Nano complies with Bharat Stage-III and Euro-IV emission standards. Ratan Tata also said, 'The car has passed the full-frontal crash and the side impact crash'. Tata Nano passed the required 'homologation tests with Pune-based Automot ive Research Association of India (ARAI).This means that the car has met all the specified cr iteria for roadworthiness laid out by the government including emissions or noise & vibrati on and can now ply on Indian roads. Tata Nano managed to score around 24 km per litre during it s homologation tests with ARAI. This makes Tata Nano the most fuel efficient car in India. Nano will be the first car in India to display the actual fuel mileage figures it rec orded at ARAI s tests on its windshield. According to ARAI it conforms to Euro IV emission standards w hich will come into effect in India in 2010. REAR MOUNTED ENGINE The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500, another technically innovative "people's car". A conce pt vehicle similar in styling to the Nano, also with rear engined layout was proposed by the UK Rov er Group in the 1990s to succeed the original Mini but was not put into production. The eventual new Mini was much larger and technically conservative. The independent, and now-defunct, MG R over Group later based their Rover CityRover on the Tata Indica. Tata is also reported to be contemplating offering a compressed air engine as an option.

nano s TECHNICAL SPECIFICATIONS Engine: 2 cylinder petrol with Bosch multi-point fuel injection (single injecto r) all aluminium 33 horsepower (25 kW) 624 cc (38 cu in) Value Motronic engine management platform from Bosch 2 valves per cylinder overhead camshaft Compression ratio: 9.5:1 bore stroke: 73.5 mm (2.9 in) 73.5 mm (2.9 in) Power: 33 PS (33 hp/24 kW) @ 5500 rpm Torque: 48 Nm (35 ftlbf) @ 2500 rpm Layout and Transmission: Rear wheel drive 4-speed manual transmission Steering: mechanical rack and pinion Turning radius: 4 metres Performance: Acceleration: 0-70 km/h (43 mph): 14 seconds Maximum speed: 120 km/h (75 mph) Fuel efficiency (overall): 20 kilometres per litre (5 litres per 100 kilometres (56 mpg-imp; 47 mpg-US)) Body and dimensions: Seat belt: 4 Trunk capacity: 150 L (5.3 cu ft) Suspension, Tires & Brakes: Front brake: drum Rear brake: drum Front track: 1,325 mm (52.2 in) Rear track: 1,315 mm (51.8 in) Ground clearance: 180 mm (7.1 in) Front suspension: McPherson strut with lower A arm Rear suspension: Independent coil spring 12-inch wheels

2. Modification in TATA Sumo The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo ha s seen a series of changes in terms of refinement in this decade. It has been the favorit e choice for cab owners, as it is rugged and affordable. The Tata Sumo has been enjoying its position in the MUV market since 1994. It ha d stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle , but in fact is a carryover of the old Sumo, with some cosmetic changes. The Sumo comes in nine Vi cta variants: CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX 1 0/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, a re powered by a 2litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged die sel engine that generates 89 bhp. The Victa DI variants get a 3-litre turbocharged diesel e ngine. Refinement, both internal and external, is evident across the variants. Tata's latest three variants under the 'Sumo Grande' category are LX, EX and GX available in 2-seater, 7-seater and 8-s eater configurations. Sumo Grande boasts of a powerful 2.2-L Direct Injection Common R ail (DICOR) engine SUMO SPACIO A no-frills version called the Tata Spacio is also available. It is equipped wit h a 3000 cc DI diesel engine sourced from the popular LCV Tata 407. The prominent visual dif ference was the presence of round headlamps instead of the rectangular lamps. A soft top ver sion of the Spacio called the Spacio ST was also introduced for the rural markets. After the facelift, the Spacio inherited the styling elements of the older Tata Sumo. In 2007, the Victa became available with the Spacio's 3000 cc engine. And in terms of styling, the positioning of th e spare wheel was changed from the rear tailgate to the underbody of the vehicle. This model comes in 8 and 10 seater variants and is very much popular with private transporters & contract ta xi vendors because of its lower cost. SUMO VICTA The new Sumo Victa released in 2004 featured power windows, power steering, dual AC, central locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti glare

ORVMS with electronic control, remote keyless entry, tachometers, LCD monitors, voice warnings, multiple trip odometers are all either standard or available options. New TATA Sumo (SUMO GRANDE) Tata launched the Sumo Grande on January 10, 2008 powered with a new generation 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most up market version of the Sumo available and features completely different body w ork. It lies below the Tata Safari in Tata's product portfolio. SUMO GRANDE Specifications Top speed 148 km/h (92 mph) 0 to 100 km/h (62 mph) 17.6 s Engine Type 2.2L DICOR, 32 Bit ECU and Variable Geometry Turbocharger Displacement (Capacity) 2179 cc Transmission 5-speed manual Power 120 PS (118 hp/88 kW) @ 4000 rpm Torque 250 Nm (184 lbft) @1500 rpm Valve Mechanism DOHC Cylinder Configuration Inline 4 Fuel Type Diesel Fuel Tank Capacity 65 (Ltrs.) Minimum Turning Radius 5.25 meters Wheel size 16 inch Tyres 235/70 R 16 (tubeless) Ground Clearance 205 mm / 8.07 inches Steering Power Steering, Tiltable & Collapsible Colours Zephyr Green, Marine Blue, Sunset Orange, Mineral Red, Arctic White, Arctic Silver, Quartz Black. (7 Colours) TATA SUMO GRANDE (More than meets the eye)

3. NEW VERSION OF INDIGO ,INDIGO DICOR Dicor Variants The DICOR (common rail diesel) version of Tata Indigo is available in two varian ts which has already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 -3000 rpm. The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver & co passengers oriented po sitive attributes such as: . Anti-submarine front seats . New electronic instrument cluster with engine RPM meter . Rear Seat with double folding backrest . Video player with MP3: with headrest mounted LCD screens . 1.4-litre as rail diesel engine Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome st rip outer rear view window, black dials with chrome rings & star check as the new pattern for i ts console & AC fascia. Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror, black di als, & Benz silver as the new pattern for console & AC fascia. It has no mounted LCD screens .

Mileage (City) : 14.75 kmpl Mileage (Highways) : 18.35 kmpl ENGINES Petrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. Power - 85 PS @5500 rpm Max. Torque - 12 Kgm @ 3500 rpm Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power -70 PS @ 4500 rpm Max. Torque - 13.5 Kgm @ 2500 rpm Dicor 32-bit microprocessor based 1396 cc DICOR (Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger (VGT) Max. Power-70 PS@4000 rpm Max. Torque - 140Nm@1800-3000 rpm 4. TAPPING OF RURAL MARKETS According to the National Council for Applied Economic Research, or NCAER, rural India accounts for 70% of India s population, 56% of the national income, 64% of t he total expenditure and one-third of the total savings. So, the difficulties faced in cr acking these markets pale before the huge potential they offer a company. Of the total sales (of cons umer goods), around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-far m income will be about two-thirds of the rural economy by 2012-13. Noticing this huge potential Tata motors now plans to tap the rural market, 60 p er cent of which runs on cash. Tata motors ltd. is working on strategies to make inroads in to these markets.

SWOT Analysis - Tata Motors Limited SWOT Strengths, Weaknesses, Opportunities, Threat

STRENGTHS The internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For exampl e after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' The company has a strategy in place for the next stage of its expansion. Not onl y is it focusing upon new products and acquisitions, but it also has a programme of inte nsive management development in place in order to establish its leaders for tomorrow. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 20 07, and the companies have an agreement to build a pick-up targeted at Central and S outh America. WEAKNESSES The company's passenger car products are based upon 3rd and 4th generation platf orms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat h as not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent th at it has isolated itself from lucrative segments in a more aspiring India?

One weakness which is often not recognised is that in English the word 'tat' mea ns rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover. OPPORTUNITIES In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will un doubtedly off the company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World -retailing at little more than a motorbike . Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! The new global track platform is about to be launched from its Korean (previousl y Daewoo) plant. Again, at a time when the World is looking for environmentally fr iendly transport alternatives, is now the right time to move into this segment? The ans wer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a ve ry proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo fuel efficient buses are powered by super-efficient, eco -friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

THREATS Other competing car manufacturers have been in the passenger car business for 40 , 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality an d lean production. Sustainability and environmentalism could mean extra costs for this low-cost pro ducer. This could impact its underpinning competitive advantage. Obviously, as Tata glo balizes and buys into other brands this problem could be alleviated. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toy ota. In fact the entire Indian market has become a target for other global competitors i ncluding Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited o n a couple of fronts. The price of steel and aluminium is increasing putting pressur e on the costs of production. Many of Tata's products run on Diesel fuel which is becomin g expensive globally and within its traditional home market.

FINANCIAL ANALYSIS

FINANCIAL OVERVIEW

Year 2008- 2007-03 2006-03 2005- 2004-03 0303Equity Paid Up 385.54 385.41 382.87 361.79 353 Network 7813.99 6843.8 5510.68 4111.39 3589.77 Capital Employed 14094.51 10852.94 8447.52 6606.81 4849.54 Gross Block 10805.32 8749.85 7945.16 6611.95 5985.4 Net Working Capital (Incl Def. -1248.57 1997.22 1923.41 -19.92 -1477.22 Tax) Current Assets (Incl Def. Tax) 10781.23 10688.65 9638.56 7188.72 3830.76 Current Liabilities and 12029.80 8691.43 7715.15 7208.64 5307.98 Provision (Incl Def. Tax) Total Assets/ Liabilities 26118.26 19534.28 16148.55 13797.29 10135.33 Gross Sales 32885.03 31611.21 23673.43 20152.03 15165.85 Net Sales 28529.40 27185.77 20293.30 17088.59 12895.55 Other Incomes 972.93 547.11 693.92 560.29 427.79 Value of Output 28488.92 27535.45 20550.21 17232.59 12753.57 Cost of Production 24611.49 23290.95 17447.80 14614.45 10511.53 Selling Cost 1179.48 1068.56 756.54 581.41 455.56 PBIDT 3654.39 3527.98 2867.81 2319.87 1877.42 PBDT 3228.78 3159.47 2574.32 2102.06 1674.94 PBIT 3002.08 2941.69 2346.87 1869.71 1494.82 PBT 2576.47 2573.18 2053.38 1651.90 1292.34 PAT 2028.92 1913.46 1528.88 1236.95 810.34 CP 2681.23 2499.75 2049.82 1687.11 1192.94 Revenue earnings in forex 2844.12 2714.68 2384.81 1497.85 1016.64 Revenue expenses in forex 1695.58 1504.74 1132.9 671.40 354.38 Capital earnings in forex 000 00 Capital expenses in forex 1314.31 472.76 264.88 226.84 43.22 Book Value (Unit Curr) 202.68 177.57 143.93 113.64 101.69 Market Capitalisation 24037.11 28048.94 3507.39 14976.30 17331.23 CEPS (annualised), (Unit Curr.) 67.44 62.31 51.19 44.88 32.77 EPS (annualised), (Unit Curr.) 50.52 47.10 37.59 32.44 21.93 Dividend (annualized %) 150 150.00 130 125.00 80.00 Payout (%) 29.7 31.85 34.6 38.66 36.44 Year Dividend Per Share(DPS) in Rs. 2003-04 8.00 2004-05 12.50 2005-06 13.00 2006-07 15.00

2007-08 15.00 FORMULAE AT GLANCE Cost of Equity, Ke= Dividend Per Yield Growth rate (G) ROE Equity Shareholder Funds Cost of Debt Kd = = = = = = ROI = CAPITAL STRUCTURE (Rs in Cr.) Year 2 008 2 007 20 06 2 005 20 04 DPS(Rs) 15 15 13 12.5 8 Book Value(Rs.) 202.68 177.57 143.93 113.64 101.69 Payout (%) 29.7 31.85 34.6 38.66 36.44 Retention Ratio 0.703 0.6815 0.654 0.6134 0.6356 PBT 2576.47 2573.18 2053.38 1651.9 1292.34 Tax 139.01 476 363.35 363.82 96 PAT 2437.46 2097.18 1690.03 1288.08 1196.34 Preference Dividend 0 0 19.94 0 0 Equity 385.54 385.41 382.87 361.79 353 Reserves 7453.96 6484.34 5154.2 3749.6 3236.77 P & L Account(DrBalance) 0 0 0 0 0 Equity Shareholder Fund 7839.5 6869.75 5537.07 4111.39 3589.77 ROE 0.31 0.31 0.30 0.31 0.33 Growth Rate (%) 21.86 20.80 19.73 19.22 21.18 Cost of Equity (%) 29.26 29.25 28.76 30.22 29.05 Interest 425.61 368.51 293.49 217.81 202.48 Total Debt 6280.52 4009.14 2936.84 2495.42 1259.77 Dividend Per Share / Book Value Retention Ratio x ROE (1- Payout Ratio) x ROE (PAT Preference Dividend) / Equity Shareholder Funds Equity Share Capital + Reserves P& L A/C (Dr. Balance)

Cost of Debt (%) 6.78 9.19 9.99 8.73 16.07 PBIT 3002.08 2941.69 2346.87 1869.71 1494.82 Capital Employed 14094.51 10852.94 8447.52 6606.81 4849.54 ROI (%) 21.30 27.11 27.78 28.30 30.82 WEIGHTED AVERAGE COST OF CAPITAL Year 2008 Source Amount Proportion(%) Cost (%) WeightedCost (%) Equity 385.54 6.14 29.26 1.80 Debt 6280.52 94.22 6.78 6.38 6666.06 100.36 8.18 Year 2007 Source Amount Proporti on (%) Cost (%) WeightedCost (%) Equity 385.41 9.61 29.2 5 2.81 Debt 4009.14 91.23 9.1 9 8.39 4394.55 100.84 11.20 Year 2006 Source Amount Proporti on (%) Cost (%) WeightedCost (%) Equity 382.87 13.04 28.76 3.75 Debt 2936.84 88.47 9.99 8.84 3319.71 101.50 12.59 Year 2005 Source Amount Proportion (%) Cost (%) WeightedCost (%) Equity 361.79 14.50 30.22 4.38 Debt 2495.42 87.34 8.73 7.62 2857.21 101.84 12.00 Year 2004 Source Amount Proportion (%) Cost (%) WeightedCost (%)

Equity 353.00 28.02 29.05 8.14 Debt 1259.77 78.11 16.07 12.55 1612.77 106.13 20.69

WEIGHTED AVERAGE COST OF CAPITAL (WACC) Vs ROI Year WACC (%) ROI (%) Difference 2008 8.18 21.30 13.12 2007 11.20 27.11 15.91 2006 12.59 27.78 15.19 2005 12.00 28.30 16.30 2004 20.69 30.82 10.13 REASONS Fiscal 2008-09, the second year of 11th Five Year Plan saw a marginal fall in GD P growth rate of 9%. The slowdown in economy. Increase in inflation. Poor credit availability. Hardening of interest rate Rise in price of input material Proposed increase in fuel price and volatility in foreign exchange rates. Manufacturing expenses, employee cost increase.

Net raw material consumption inclusive of processing charges increased, with pre ssure on volumes and margins. BALANCE SHEET ANALYSIS From the above statement it is seems that the company has become highly geared y ear after year. To substantiate this, the net current asset which is a representatio n of their long term debit is on the increase (Rs. 27,203.30 million In 2006, Rs. 40,235.10 million i n 2007, and Rs. 58,792.80 million In 2008) this forms a lower percentage of the total debit (whe n short term debit and capital cases are added) the company is perhaps aware of the results t hat may effect the interest on the total equity and rather have a preference for short term loans a s the environment dictate, hence, increasing the total equity year by year. During the year, the Company recorded its highest ever sale of 5, 85,649 vehicle s and grew its turnover to Rs. 33,094 crores to remain as India's largest automobile c ompany by revenue. The Company's margins were under pressure during the year due to rising interest rates, constraints in availability of vehicle financing from outside sources and unprec edented increase in prices of raw materials. For long term financial plan and expansion of the new product (Nano) Tata has de cided to raise funds from the stock market rather than going for a loan option (GEARING). This is because in the past heavy amounts were gained as interest on loans which have a negative effect on the profit and returns to the stake holders. To support my analysis in financ ial year 2006, Rs. 36,641 million loans was taken, and in the year 2007, Rs. 79,137 million loan wa s taken, And also the companies net profit margins have gone down abruptly from 6.8% in 2005 to 5.6% in 2007, most probably because of the rising cost of the raw material used by the 5 company, but still the profits of the Tata Motors remain highest than the other auto manufact urers. The rate of interest on vehicles in India is running very high, because of which the sales growth have gone a little down. Even then Tata Motors have increased there profi ts to 6.2% year after year. And are still financing most of their sales, up to 31% in 2007 from 24% in 2006.

Hence, gross accounts receivable are greater than before by 35% every year and t hey also had to make up the shortage of cash by borrowing. When combined with the other expenses to the growth of fuel, it has augmented its short as well as it s the long-term debt exte nsively. The EBIDTA (earnings before interest, taxes, depreciation, and amortization) mar gin at 10.8% was lower than last year as increase in input costs could only be partially abso rbed by the market. Note: Amortization = non-cash expense of writing off intangible assets over thei r useful lives. The Profit Before-Tax at Rs.2, 576 crores was 0.1 % higher than last year, The P rofit after Tax at Rs.2, 029 crores, was 6.1 % higher than last year. FINANCIAL PERFORMANCE With significant increase in the Company's capital expenditure program s and the growing business requirement, the overall borrowings of the Company stood at Rs. 6, 280.52 crores at a Debt: Equity ratio of 0.80:1. The Indian economy remained in high growth phase but witnessed moderation in GDP growth to 90/ in FY 07-08 as compared to over 9% growth achieved in the previous two years. The commercial vehicle industry which grew by over 33% in FY 06-07 was impacted by moderation in economic growth as wet as substantial reduction in vehicle financi ng and posted a 8.1% growth this fiscal. The passenger vehicle industry also witnessed a slowdow n but managed to grow by 11.1 % by increasing discounts on mature products, launching new mode ls and due to reduction in excise duty announced by the government in Budget during February'0 8. Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the previous year. Amidst moderation in economic growth, a high interest rate regime and tightening of the liquidity position, the domestic passenger vehicle industry was able to grow by 11.3% to an all time high of over 1.5 million vehicles, albeit at a lower growth rate than 21% o f the last fiscal. The Industry's growth rate in fact fell to single digit in the last four months of the fiscal. Growth was primarily driven by new launches and discounts on existing volume models. Al ong with two wheelers, entry level cars (price point below Rs 3 lacs) declined by 2%.The luxu ry segment

however doubled in size to over 5,000 vehicles and were immune to the slowing ma rket conditions. Of over 90 models in the industry the top 10 constitute 65% of the i ndustry sales. After six years of consecutive growth, the Company's passenger vehicle sales dec reased marginally by 4.5% to 2, 18,055 vehicles (including 3,297 Fiat branded vehicles) and the Company had a 14.2% share in the passenger vehicle market between TATA and Fiat branded vehicles. Fiscal 2008-09, the second year of 11th Five Year Plan saw a marginal fall in GD P growth rate of 9%. In view of the slow down in economy, increase in inflation, p oor credit availability, hardening of interest rates, rise in prices of input materials, pr oposed increase in fuel prices and volatility in foreign exchange rates, the commercial and passenger ve hicle industry has a challenging year ahead, with pressure on volumes and margins. Fiscal 2006 2007 (Millions of Rupees) Total short-term debt 7,973 33,145 (Excluding current portion of long-term debt) Long-term debt net of current portion 27,203 40,235 Total Debt 36,641 79,137

FINANCIAL ANALYSIS OF TATA MOTORS

On the back of a 3.9% volume growth, the company registered 14.4% y-o-y growth i n net revenue to Rs.60.57 bn during 1QFY09 due to vehicle price increases and favorabl e mix Significant cost increases were witnessed in raw material consumption and employ ee cost which witnessed y-o-y growth of 18.2% and 13.9% respectively. Excluding the impact of foreign exchange valuation related losses, the Company s EBITDA stood at Rs.5,304.7 mn, compared to Rs.5,463.0 mn the year ago quarter. EBITDA margin, excluding foreign exchange losses was 7.7% in 1QFY09, compared to 9.0% 1QFY08. In a rising cost scenario, pressure on margins was visible as the company s raw ma terial cost as percentage of net revenues of the Company rose by 240 bps to 72.0% in 1Q FY09; from 69.7% in 1QFY08. Cost reduction in 1Q FY09 stood at 294 mn. Net interest expense increased 37.7% y-o-y to Rs.1123.3 mn in Q1 FY09, compared to Rs.815.6 mn due to rising interest rates and higher debt. However, the interest expense as a % of net sales increased marginally from 1.3% in Q1 FY08 to 1.6% in Q1 FY09. Tax rate for first quarter declined substantially and stood at 5.5% as compared to 21.2% for same period last year, on account of large dividends received by Company on its Investments/Subsidiaries which are not taxable in the hands of the Company and weighted deductions available on R&D expenditure. As on 30th June 08, the balance sheet size of the Company was Rs. 183.98 bn as compared to Rs 150.96 bn as on 31st March 08. Net of vehicle financing loans and receivables the Company s capital employed was Rs 178.33 bn as on 30th June 08 against Rs.135.76 bn as on 31st March 08. As on 30th June 08, 385.62 mn shares (Face value Rs.10) were outstanding on the balance sheet of Tata Motors. The Gross total debt (inc. FCCNs) stood Rs 94.97 bn as on 30th June 08 as compared to Rs. 62.8 bn as on 31st March 08. The Company s Net Debt (Net of the surplus investib le funds) stood at Rs 89.3 bn as on 30th June 08. As on 30th June 08, the Company s net debt to equity ratio stood at 1.12:1.

Up to June 30th, 2008, 99.94% of the 1% convertible Notes (due 2008) and 97.09% of the Zero coupon Convertible Notes (due 2009) have been converted into Ordinary S hares / ADSs. There have been no conversions of the other FCCNs issued by the Company. The Company s Balance Sheet includes Receivables and loans of Rs. 27.94 bn FINANCIAL PERFORMANCE AS A MEASURE OF OPERATIONAL PERFORMANCE: In a challenging environment, the Company has been able to marginally grow its revenues and profits. Whilst the Company's profit after tax improved to Rs.2,028 .92 crores from Rs.1,913.46crores in the previous year, the margins were under press ure mainly due to the rising input costs and lower volume growth. Turnover, net of excise duties increased by 4.6% to another record high of Rs. 2 8,730.82 crores from Rs.27, 470.03 crores in FY 2006-07.The total number of vehicles sold during the year increased by 0.9% to 585,649 units from 580,280 units in FY 2006-07.The domestic volumes increased by 0.8% to 530,990 units from 526,806 units in FY 200 6-07, while export volumes increased by 2.22% to 54,659 units in FY 2007-08 from 53,47 4 units in FY 2006-07. Net Raw Material consumption inclusive of processing charges increased by 6.2%to Rs.21, 082.10 crores in FY 2007-08, from Rs.19,849.04 crores in FY 2006-07. Mate rial Cost as a % of net turnover has increased to 73.4% from 72.3% for the last year. This was largely a result of increase in prices of steel, aluminum, nickel, copper and na tural rubber. However, the Company managed to lower the impact through its on going cost reduc tion program with initiatives like global sourcing, vendor rationalization and value engineering. Employee Cost increased by 12.9% during the year to Rs. 1,544.57 crores from Rs. 1,368.09 crores registered in the previous year mainly inline with trends in ind ustry and economy. The manpower increased marginally to 23,230 from 22,349 with increases also in flexible manpower.

Manufacturing and Other Expenses increased by 2.4% to Rs. 3,011.83 crores in FY 200708 from Rs.2,940.53 crores in FY 2006-07.These were 10.5% of net turnover for the y ear as compared to 10.7% for the previous year. Profit before depreciation, interest and tax increased by 0.5% to Rs.3,575.50 cr ores from Rs.3,557.56 crores in FY 2006-07.The margin decreased to 12.4% from 13% in FY 20 0607. Depreciation (including product development expenditure) for 2007-08 increased b y 6.8% to Rs. 716.66 crores from Rs.671.31 crores in FY 2006-07 on account of incr ease in fixed assets. It represents 2.5% of net turnover as compared to 2.4% for FY 2006 -07. Net interest cost decreased to Rs. 282.37 crores in FY 2007-08 from Rs.313.07 cr ores in FY 2006-07. Despite increase in interest rates and increase in capital expenditu re, the reduction was mainly on account of significant reduction in the Company's vehicl e financing portfolio (on account of securitization), better working capital manag ement, interest earnings and larger capitalization of interest in line with the increas e in capital expenditure. Profit before Tax (PBT) of the Company increased by 0.13% to Rs. 2,576.47 crores from Rs. 2,573.18 crores in FY 2006-07. Profit after Tax (PAT) increased by 6.03% to Rs. 2,028.92 crores from Rs.1, 913. 46 crores in FY 2006-07. This was mainly on account of a lower tax provision owing to the increase in spends on Research and Development and income from capital gains, wh ich is subject to a lower tax rate. Basic Earning Per Share (EPS) increased by 5.79% to Rs.52.64 as compared to Rs.49.76 last year. Investments increased to Rs.4, 910.27 crores in FY 2007-08 from Rs.2, 477.00 cro res in FY 2006-07. The Profit Before Tax at Rs. 2,576 crores was 0.1% higher than last year. The Pro fit after Tax at Rs. 2,029 crores, was 6.1% higher than last year. Financial performance of a company is satisfactory and attaining good return s of the capital employed even in peak stage as WACC is less than about 13.12%

GLOBAL AUTOMOBILE INDUSTRY

EXPECTED GROWTH by 2015-16

Expected to grow at 13% p.a over the next decade to reach around USD $ 120 - 159 bn by 2016.

INDIAN AUTOMOTIVE PLAYERS: OVERVIEW OF THE PLAYERS IN THE INDIAN INDUSTRY The Indian auto industry is highly competitive with a number of global and India n auto companies present. Hence, we have conducted an Inter company analysis of Tata with Mahindr a and Mahindra and Maruti Udyog, to get an idea of the company s position (operation and profitabilit y) vis a vis its competitors. INTER COMPANY ANALYSIS: Key Players in the Indian auto industry Passenger Cars And CVs

The largest Player in the Indian industry. Plans to launch new and exciting prod ucts in the Indian markets, including the 100,000 cars. TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010.

The third largest passenger car manufacture in India and one of the largest exporters of vehicles. Has establishes India as one of its manufacturing bases i n the world, is planning to invest heavily to boost exports from India. Maruti Suzuki s JV in India and the largest passenger car manufacturer in India. One of the leading players in the Indian premium cars segment. One of the largest players in the UV/ MUV segment One of the leading players in the Indian premium cars segment. Plans to enter the small car segment by re-launching the matiz. The 2nd largest CV manufacturer in India.

Other global players who are in India have plans for India includes ER CHRYSLER, BMW and NISSAN MOTORS. Project involves:

VOLVO, DAIML

. Financial performance in automobile industry . Market performance . Cost saving initiatives . Introduction about TATA Motors . Procedure followed by TATA Motors for catering to the needs and queries of the customers . Quantitative research . Awareness regarding the facilities provided by TATA Motors. . Overall opinion about TATA Motors. Scope of the Study: To find the Market position. For Economic and the industry environment. This study would be useful for companies to know what people perceive and thinki ng about Tata Motors and its products. This study would be useful to other students as a secondary data. This study would be useful to form strategies. Research Methodology: The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey a nd the analysis of data. Objective of the Study: To know the consumer satisfaction. Financial performance in automobile industry. Market performance.

Market position. Economic and the industry environment. Cost saving initiatives. To find out the satisfaction level of people. To find out the awareness level of customer. To find the satisfaction amongst the customers of TATA Motors. Sources of Data Collection: Primary: For my survey primary data have been used as a questionnaire to collect the data . SECONDARY: The secondary data has been collected from the following modes: Magazines Books Newspaper Data through internet sources RESEARCH DESIGN: Research Design is the arrangement for conditioned for data collection & analysi s of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigat ion. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in n ature because study is focused on fact investigation in a well structured from and is based on primary data. RESEARCH PLAN Type of study: For completing my study I have gone for sample study because look ing at the size of population & the time limitation it was not convenient for me to cov er entire population. Hence, I have gone for sample study rather than census study.

Sampling Plan: A sample design is a definite plan for obtaining a sample from a given populatio n. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are coll ected. STEPS IN SAMPLING PLAN : Sampling Frame: The list of sampling units from which sample is taken is called sampling frame. Mandi City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result. SAMPLING SIZE: Total sample size is 100. The following sample size according to area wise is as follows: . 20 LUNAPANI . 10 JAIL ROAD . 20 CHALCHOWK . 20 NER CHOWK . 10 REWALSER . 10 SUNDER NAGAR . 10 PANDO SAMPLING PROCEDURE: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a ran domly area sampling method that attempts to obtain the sample of convenient. Analysis: The important factors and data s collected were sequentially analyzed and graphed.

Limitation of the study: Limitation of the study: I will have to rely upon the information get from secondary sources (Balance she et, Profit & Loss Account and Cash Flow ) and given by respondents, which may not be fully true. This study will be limited to only some areas of Mandi District of Himachal Prad esh. It is only for short period of time. Lack of professional approach since researcher is a student The sample size is only 100 so the sample may not be truly representative of the Delhi population. FIELD WORK: I have collected the data through medium called questionnaire collecting the res ponses from 100 people in all. I had done my field work in the following area. LUNAPANI, JAIL ROAD, CHALCHOWK, NER CHOWK, REWALSER, SUNDER NAGAR, PANDO I started my project very first educating the respondents about my entire projec t, and ask them to co operate with me. Mostly all the respondent were aware of this type of s urveys. So I didn t face any type of difficulty during my project in the process of explaining and taking there responses on the questionnaire.

Comparison of THE STANDING TATA MOTORS vis-visTHE INDUSTRY

TO COMPARE THE STANDING TATA MOTORS vis - - vis THE INDUSTRY. I CONDUCTED A FINANCIAL ANALYSIS OF TWO OF ITS COMPETITORS MAHINDRA & MAHINDRA AND MARUTI UDYOG. The comparison is based on the detailed analysis of the financial statement on t he lines of Liquidity, Solvency, Profitability and efficiency. LIQUIDITY POSITION: Purpose of the Liquidity Ratios: The liquidity ratios help to determine a compan y s ability to meet its short-term liabilities. It can be in the form of the current ratio, liquid ratio, absolute ratio or the operating cycles. While the current ratio, liquid ratio an d absolute cash ratio provide information about the company s ability to payoff the shot-term obligation s, the operating cycle provides qualitative information about how quickly the company c an convert its stock into cash. Company Analysis: Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity position, however as compared to its competitors it is least liquid since invent ories form a considerable portion of its current assets and cash i.e. the most liquid asset, the least. Further, it has a negative operation cycle, which is primarily due to the high c redit period provided to its creditors. While both TATA and M&M have similar inventory days M &M has an even lower operating cycle due to an even higher credit period. Maruti on the other hand has an operating cycle of 7 days, which is much higher as compared to the other two.

LIQUIDITY POSITION GRAPHICAL: LIQUIDITY POSITION GRAPHICAL: R a ti o LiquidityRatio -LiquidRatio 1.4 1.2 1 0.8 1.27 1.04 1.08 Maruti 0.6 0.4 Mahindra 0.2 TATA 0 Year2008-09

Inferences Drawn: We can, therefore conclude that TATA Motors has a favorable li quidity position which is neither too high nor too low, as an extremely high liquidity p osition would mean that the company is not using its funds well while a low liquidity position would imply that it would have difficulty in meeting its short term obligations. SOLVENCY POSITION: Purpose of the Solvency Ratios: The solvency ratios are used to measure a compan y s ability to meet its long term obligation. The commonly used ratios to ascertain the solvenc y position of a company are Debt Equity Ratio and Interest Coverage Ratio. Debt/Equity Ratio: The ratio gives the proportion of debt and equity in the tota l capital structure. TATA Motors has a debt equity ratio of about 52% which means that one-third of i ts total assets are financed through debt. Maruti on the other hand has a low Debt Equity Ratio only 9% i.e the company primarily uses its profits and reserves to find its assets. Interest Coverage Ratio: A ratio used to determine how easily a company can pay interest on outstanding debt. The ratio is calculated by dividing a company s earning before i nterest and taxes (PBIT) of one period by the company s interest expenses of the same period. PBIT/Sale: The lower the ratio, the more the company is burdened by debt expense . When a

company s interest coverage ratio is 1.5 or lower, its ability to meet interest ex penses may be questionable. An interest coverage ratio below 1 indicates the company is not ge nerating sufficient revenues to satisfy interest expenses. TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations. However, its ICR is much less a s compared to its competitors. This is primarily because it the proportion of debt financing emplo yed by TATA Motors is much higher as compared to M&M or Maruti Udyog. Consequently its debt obligation is also higher than the other tow. SOLVENCY RATIO GRAPHICAL ANALYSIS:

PROFIT MARGIN RATIO: This ratio measure how much out of every rupee of sales a company keeps as earni ngs. The two determinants of profit margin are . Operating Profit . PBIT It is interesting to note here that while TATA Motors has a higher operating pro fit margin of 12% as compared to M&M s 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower t han M&M s 15%. This implies that a large portion of TATA s profit are from its operation s while M&M has a considerable amount of non operating income. Maruti has the highest pr ofitability among the three companies indicating that it has been most successful in control ling its costs. Rate of Return Ratios . ROTA: ROTA is an indicator of how profitable a company is relative to its total assets. ROTA given an idea as to how efficient management is at using its assets to gene rate earnings. . ROCE: It indicated the efficiency and profitability of a company s capital investm ents. ROCE should always be higher than the rate at which the company borrows; otherwi se any increase in borrowing will reduce shareholders earnings

PROFITABILITY RATIO GRAPHICAL ANALYSIS: PROFITABILITY RATIO GRAPHICAL ANALYSIS:

Inferences about the companies: ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Maruti s ROCE is nearly 30%. It implies t hat there is potential in the industry that is not being fully exploited by TATA Mot ors. There is still considerable scope for the company to increase its profits by effectively utiliz ation its assets. MARKET POSITION: PE ratio and MV/BV is lowest among the three companies for TATA Motors, despite the fact that its earnings and book value is higher than M&M. The reason as to why t hese ratios are low is clearly its low market value as competitors. The MV/BV Ratio for M&M is 5 .2 which is much higher than TATA s 3.73 despite the fact that M&M s BV per share is Rs. 148.11 which is lower than TATA Motors s BV of Rs. 198.66 per share.

RESULT/ CONCLUSION: A detailed analysis of the company shows that the company has had a strong funda mental as well as a strong market performance over the years. Given the economic and th e industry environment (improving outlook for the CV industry) TATA Motors would be a key b eneficiary. While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will improve margins. Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity position, however as compared to its competitors it is least liquid since invent ories form a considerable portion of its current assets. TATA Motors has a debt equity ratio of about 52% which means that one-third of i ts total assets are financed through debt. TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations. However, its ICR is much less as compared to its competitors. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compa red to M&M or Maruti Udyog TATA Motors has a higher operating profit margin of 12% as compared to M&M s 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M s 15%. ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Maruti s ROCE is nearly 30%. It implies that there is potential in the industry that is not being fully exploited by TATA Motors.

Customer Satisfaction Survey of TATA Motors

ROLE OF THE SALES PERSON He should be neatly dressed He should have knowledge about various product s Features Variants Colors Prices Sales promotion campaigns Competitor products, their features, prices, etc. Latest service and warranty policies Current availability Carry copy of ready reckoner Do not leave the customer unattended for more than 3 minutes CUSTOMER CARE TEAM: Role of the Customer Care Manager: Customer Care Manager is the leader of the customer care team. He is accountable for the sales satisfaction index of the dealership. The customer care manager ensures that eve ry customer is properly followed up and feedback is recorded. Also the customer complaints are recorded and resolved as soon as possible to the level of satisfaction. The customer care exe cutives report to the customer care manager. Customer Care Executive:Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at the showr oom Post sales follow up. PSF s are done in order to get the first hand feedback from the customer about the experience that they had during the sales and delivery process. The first PSF is done within the 72 hours of delivery and the voice or exact wor dings of the customer are recorded. The next PSF call is made after 15 days after the veh icle is

delivered. The feedback form system is a very important tool to obtain customer s feedback on the experience that the customer had during the purchase of his/her car. Steps to be followed after receiving customer complaint: Firstly customer acre manager gives a control number to all complaints received and records the same in the customer complaints control register. Then customer acre manager gets in touch with the customer over the phone and expresses regret on the inconvenience faced by the customer Immediate action is taken to ensure that the customer complaint is resolved and writes a letter of apology The customer care manager along with the concerned DSE, then visits the customer , hands over the letter and takes satisfaction note from the customer Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd . And also files a copy of the same in the customer complaints register/file. Then the CCM discusses the customer complaints in the weekly meeting with the ge neral manager on SSI with the entire showroom staff. Necessary counter measures are ta ken to ensure that such complaints are not repeated in future. All sales staff and managers review customer care activities on daily, weekly an d monthly basis. The SSI review meet is conducted regularly. According to TATA Motors A customer is the most important visitor on our premises He is not dependent on us, We are dependent on him, He is not an interruption on our work, He is the purpose of it. He is not an outsider on our business, He is part of it.

We are not doing him a favor serving him, He is doing us a favor by giving us the Opportunity to do so How you communicate? . Your words 7% . Your voice 35% . Your body language 58% Moments of truth Expectation---------------satisfaction---------------------reality If you get what you expected Expectation---------------dissatisfaction----------------reality If you get less than you expected Expectation---------------delight--------------------------reality If you get more than you expected When customers don t complain they go somewhere else .

Customers don t complain. They pass on their dissatisfaction to their colleagues, family, greengrocer, suppliers, consultants, managers, sports club, grandparents, neighb ors, director, to you .

QUESTIONNAIRE ANALYSIS

Q1. How long have you been associated No. of with Tata Motors Respondents Percentage From 1 year 0 0% From 1 3 years 0 0% From 3 5 years 0 0% From 5 10 years 80 80% Above 7 years 20 20% Q2. (i) No. of Knowledgeable Salesperson Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree Respondents 0 0 0 86 14 Percentage 0% 0% 0% 86% 14% 0 10 20 30 40 50 60 70 80 90 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 86% people agreed that the sales persons are knowledgeable and 14% strongly disa greed that the sales persons are knowledgeable.

Q2 (ii). Employees spent enough time with No. of you before sales Respondents Percentage Strongly Disagree 0 0% Disagree 0 0% Neither Disagree Nor Agree 0 0% Agree 64 64% Strongly Agree 36 36% 80 60 40 20 0 No. of Respondents Strongly Disagree Disagree Neither Disagree NorAgree Agree Strongly Agree 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. Q2 (ii). Employees spent enough time with No. of you during sales Respondents Percentage Strongly Disagree 0 0% Disagree 4 4% Neither Disagree Nor Agree 0 0% Agree 62 62% Strongly Agree 34 34% 70 No. of Respondents 60 50 40 30 20 10 0 StronglyDisagree Disagree

Neither DisagreeNor Agree Agree Strongly Agree

0 10 20 30 40 50 60 StronglyDisagree Disagree Neither DisagreeNor Agree Agree StronglyAgree 0 10 20 30 40 50 60 StronglyDisagree Disagree Neither DisagreeNor Agree Agree StronglyAgree 62% agreed that sales persons spent enough time with them during the sales, whil e 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this. Q2 (ii). Employees spent enough time with No. of you after sales Respondents Percentage Strongly Disagree 0 0% Disagree 22 22% Neither Disagree Nor Agree 0 0% Agree 54 54% Strongly Agree 26 26% No. of Respondents 60% agreed that the sales persons spent enough time with them after sales, 26% s trongly agreed with this and 14% disagreed that the sales persons spent enough time with them a fter sales. Q2 (iii). No. of Display of Merchandize Respondents Percentage Strongly Disagree 0 0% Disagree 0 0% Neither Disagree Nor Agree 0 0% Agree 94 94% Strongly Agree 6 6%

100 80 60 40 20 0 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. Q2 (iv). No. Of Availability of the Product Respondents Percentage Strongly Disagree 0 0% Disagree 4 4% Neither Disagree Nor Agree 0 0% Agree 91 91% Strongly Agree 5 5% 0 20 40 60 80 100 No. of Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 91% agreed that the availability of the product was there, 5% strongly agreed th at the availability was there while only 4% said they disagreed with this. Q2 (v). No. of Variety/Selection of Merchandize Respondents Percentage Strongly Disagree 0 0% Disagree 6 6% Neither Disagree Nor Agree 0 0% Agree 87 87% Strongly Agree 7 7%

90 80 70 60 50 40 30 20 10 0 No. of Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 87% agreed that there was variety/selection of merchandize whereas 7% strongly a greed that enough variety was there and 6% disagreed with this. Q.2 (vi) No. of Vehicle in Good Condition Respondents Percentage Strongly Disagree 0 0% Disagree 2 2% Neither Disagree Nor Agree 0 0% Agree 82 82% Strongly Agree 16 16% 0 10 20 30 40 50 60 70 80 90 No. of Respondents Strongly Disagree Disagree Neither Disagree NorAgree Agree Strongly Agree 82% agreed that the vehicle was in good condition when delivered, 16% strongly a greed with this whereas only 2% disagreed with this. Q2 (vii). No. of Prices Are Affordable Respondents Percentage Strongly Disagree 0 0% Disagree 12 12%

Neither Disagree Nor Agree 15 15% Agree 21 21% Strongly Agree 52 52%

0 10 20 30 40 50 60 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 0 10 20 30 40 50 60 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 64% strongly agreed that the prices are affordable, 21% agreed that the prices a re affordable whereas only 15% said that they neither disagreed nor agreed with this. Q2 (viii). No. of Attractive Discounts Offered Respondents Percentage Strongly Disagree 0 0% Disagree 26 26% Neither Disagree Nor Agree 0 0% Agree 47 47% Strongly Agree 27 27% 0 10 20 30 40 50 60 No. of Respondents Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 55% agreed that the discounts offered are attractive, 34% strongly agreed with t

his while 11% disagreed and said that the discounts offered were not attractive. Q2 (ix). Dcor Of The Waiting Area Is No. of Pleasing Respondents Percentage Strongly Disagree 0 0% Disagree 0 0% Neither Disagree Nor Agree 0 0% Agree 80 80% Strongly Agree 20 20%

80 60 40 20 0 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 80%agreed that the dcor of the waiting area was pleasing while 20% strongly agree d that the dcor of the waiting area was pleasing Q2 (x). No. of Offered A Test Drive Respondents Percentage Strongly Disagree 0 0% Disagree 20 20% Neither Disagree Nor Agree 0 0% Agree 74 74% Strongly Agree 6 6% 0 10 20 30 40 50 60 70 80 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 74%agreed that the test drive was offered to them, 6% strongly agreed that the t est drive was offered while 20% disagreed with this. Q2 (xi). Post Sales Follow Up Done No. of Regularly Respondents Percentage Strongly Disagree 0 0% Disagree 15 15% Neither Disagree Nor Agree 0 0% Agree 59 59%

Strongly Agree 26 26%

0 10 20 30 40 50 60 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 0 10 20 30 40 50 60 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 59%agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this. Q2 (xii). No. of Responds To complaints Quickly Respondents Percentage Strongly Disagree 0 0% Disagree 9 9% Neither Disagree Nor Agree 12 12% Agree 61 61% Strongly Agree 18 18% 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% nei ther agreed nor disagreed and 6% disagreed with this.

Q2 (xiii). 70 60 50 40 30 20 10 0 Service At TATA Service Station Is Excellent Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 100 80 60 40 20 0 No. of Respondents No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 4 0 82 14 Percentage

0% 4% 0% 82% 14% Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 82% said that the service at TATA service station is excellent, 14% strongly agr eed while only 4% disagreed with this. Q2 (xiv). No. of Careful With Personal Information Respondents Percentage Strongly Disagree 0 0% Disagree 0 0% Neither Disagree Nor Agree 8 8% Agree 85 85% Strongly Agree 7 7%

0 10 20 30 40 50 60 70 80 90 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 0 10 20 30 40 50 60 70 80 90 No. of Respondents Percentage Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. Q2 (xv). All The Commitments Are No. of Fulfilled Respondents Percentage Strongly Disagree 0 0% Disagree 7 7% Neither Disagree Nor Agree 0 0% Agree 6 6% Strongly Agree 87 87% 0 20 40 60 80 100 No. of Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree 94% strongly agreed that all the commitments were fulfilled and 6% agreed with t his.

Q2 (xvi). No. of Value For Money Respondents Percentage Strongly Disagree 0 0% Disagree 0 0% Neither Disagree Nor Agree 0 0% Agree 2 2% Strongly Agree 98 98% 100 80 60 40 20 0 Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage 98% strongly agreed that TATA provides value for money while 2% agreed with this . Q3 (i). Are you aware of the following facilities provided by TATA? No. of TATA insurance Respondents Percentage Yes 98 98% No 2 2% 98% said yes that they are aware about TATA insurance while only 2% said that th ey were not aware.

Q3 (ii). No. of Extended warranty Respondents Percentage Yes 97 97% No 3 3% 97% said they were aware about extended warranty and 3% said that they did not k now about this. Q3 (iii). No. of True value Respondents Percentage Yes 98 98% No 2 2% 98% said they were aware about true value and 2% said they were not aware. Q3 (iv). No. of TATA Motors finance Respondents Percentage Yes 75 75% No 25 25%

75% said that they were aware about TATA Motors finance and 25% said that they w ere not aware of it. Q3 (v). No. of Autocard Respondents Percentage Yes 84 84% No 16 16% 84% said that they were aware about autocard and 16% said that they were not awa re of it. Q3 (vi). No. of Genuine Accessories Respondents Percentage Yes 85 85% No 15 15%

85% said that they were aware of genuine accessories available and 15% said they were not aware. Q4. What is your overall opinion about TATA? Choice Very bad Bad Neither bad nor good Good Very good No. of Respondents 0 0 0 4 96 Percentage 0% 0% 0% 4% 96% 0 20 40 60 80 100 No. of Respondents Very bad Bad Neither bad nor good Good Very good 96% said that there overall opinion about TATA was that it is very good while 4% said that it is good.

Q 5. How likely would you recommend TATA? No. of Recommend Respondents Percentage Very Unlikely 0 0% Unlikely 0 0% Neither Unlikely nor likely 0 0% Likely 10 10% Very Likely 90 90% 90% people said they would very likely recommend TATA to other people and 10% sa id they would likely recommend TATA to others.

CONCLUSION On an average more than 73% people feel that the prices are affordable whereas 1 2% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% sai d that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the people s car as it is satisfactory on all other parameters: knowled geable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, pric es are affordable, attractive discounts are offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with perso nal information and is value for money . The overall opinion about TATA Motors is very good. 86% people agreed that the sales persons are knowledgeable and 14% strongly disa greed that the sales persons are knowledgeable. 64% people agreed that the sales perso ns spent enough time with them before the sales and 36% strongly agreed with this. 62% agreed th at sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this. 60% agreed that the sales persons spent enough time with them after sales, 26% s trongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. 91% agreed that the availability of the p roduct was there, 5% strongly agreed that the availability was there while only 4% said they disag reed with this. 87% agreed that there was variety/selection of merchandize whereas 7% strongly a greed that enough variety was there and 6% disagreed with this. 82% agreed that the ve hicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% dis agreed with this. 64% strongly agreed that the prices are affordable, 21% agreed that the pr ices are affordable whereas only 15% said that they neither disagreed nor agreed with this.

55% agreed that the discounts offered are attractive, 34% strongly agreed with t his while 11% disagreed and said that the discounts offered were not attractive. 80%agreed that the dcor of the waiting area was pleasing while 20% strongly agreed that the dcor of the w aiting area was pleasing 74% agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. 59% agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this. 4% agreed that the re sponse to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6 % disagreed with this. 82% said that the service at TATA service station is excellent, 14% strongly agr eed while only 4% disagreed with this. 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agre ed that all the commitments were fulfilled and 6% agreed with this. 98% said yes that they are a ware about TATA insurance while only 2% said that they were not aware.

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

Questionnaire

Being an esteem customer of TATA Motors Ltd. you are requested to take out a few minutes and fill the following QUESTIONNAIRE: Name: Address: _______________________________________________________________ _______________________________________________________________ ___________________________________________ Pin Code____________ Gender: Male Female Age: Below18 18-25 26-35 36-50 51 and above Occupation: Service Business Student Housewife Q.1) How long have you been associated with TATA Motors? Q.2.) How would you rate TATA Motors on the following parameter? Strongly disagree Disagree Neither agree Nor disagree agree Strongly agree i) Knowledgeable sales person ii) Employees spent enough time with you: before sales

During sales After sales iii) Display of merchandise is attractive iv) Availability of the product v) Variety/selection of merchandise vi) Vehicle in good condition vii) Prices are affordable

viii ) Attractive discounts offered ix) Dcor of the waiting area is pleasing x) Offered a test drive xi) Post sales follow ups are done regularly xii) Responds to complaints quickly xii) Service at Maruti service station is excellent xvi) Careful with personal information xv) All the commitments are fulfilled xvi) Value for money Q.3) Are you aware of the following facilities provided by Tata Motors? FACILITIES Yes No i) Tata Motors insurance ii) Extended warranty iii) True value iv) Tata finance v) Autocard vi) Genuine accessories Q.4) What is your overall opinion about Tata Motors? Very Bad Neither Bad Bad nor Good 1 2 3 Good 4 Very Good5 Q.5) How likely would you recommend Tata Motors? Very Unlikely 1 2 3 4 Very Likely5 Date Sign.

ANNEXURE

Summarized Balance Sheet In Millions of INR (except for per As of As of As of As of share items) 2009-03-31 2008-03-31 2007-03-31 2006-03-31 Cash & Equivalents 52.00 65.30 76.50 4,873.30 Short Term Investments 786.00 2,762.80 8,067.80 26,982.80 Cash and Short Term Investments 12,180.60 10,415.30 14,383.70 31,856.10 Accounts Receivable - Trade, Net 52,422.20 47,692.10 34,709.60 18,359.40 Receivables - Other ---Total Receivables, Net 52,422.20 47,692.10 34,709.60 18,359.40 Total Inventory 34,340.20 33,923.10 26,303.60 21,353.60 Prepaid Expenses 1,137.20 862.50 467.70 391.90 Other Current Assets, Total 24,440.40 21,040.80 14,223.30 11,618.70 Total Current Assets 124,520.60 113,933.80 90,087.90 83,579.70 Property/Plant/Equipment, Total 150,721.20 109,262.50 86,228.30 74,415.30 Gross Goodwill, Net 6,968.50 7,239.10 7,034.10 289.90 Intangibles, Net 3,114.10 2,990.00 2,355.10 606.40 Long Term Investments 50,390.00 22,358.90 24,133.60 21,103.80 Other Long Term Assets, Total 32,459.80 5,638.40 4,442.20 1,364.00 Total Assets 369,279.30 271,015.40 202,158.20 159,245.40 Accounts Payable 55,061.30 45,474.00 30,316.30 24,659.90 Accrued Expenses 14,595.00 8,323.70 7,437.50 7,115.80 Notes Payable/Short Term Debt 95,462.30 57,752.60 37,475.10 30,697.50 Current Port. of LT Debt/Capital 14,970.70 5,757.50 1,465.30 1,108.50 Leases Other Current liabilities, Total 3,909.30 3,470.70 4,198.80 4,105.70 Total Current Liabilities 183,998.60 120,778.50 80,893.00 67,687.40 Long Term Debt 58,792.80 40,235.10 27,203.30 25,632.70 Capital Lease Obligations ---Total Long Term Debt 58,792.80 40,235.10 27,203.30 25,632.70 Total Debt 169,225.80 103,745.20 66,143.70 57,438.70 Deferred Income Tax 6,119.90 5,983.60 6,135.20 5,390.90 Minority Interest 5,634.80 4,054.10 3,303.80 2,330.90 Other Liabilities, Total 9,469.10 8,595.20 3,607.10 1,794.30 Total Liabilities 264,015.20 179,646.50 121,142.40 102,836.20 Redeemable Preferred Stock, Total --Preferred Stock - Non Redeemable, --Net Common Stock, Total 3,855.40 3,854.10 3,828.70 3,617.90 Additional Paid-In Capital 39,778.60 39,711.00 38,773.60 28,143.30 Retained Earnings (Accumulated 43,718.70 36,326.80 23,897.00 14,033.90 Deficit) Treasury Stock - Common -Other Equity, Total 17,911.40 11,477.00 14,516.50 10,614.10 Total Equity 105,264.10 91,368.90 81,015.80 56,409.20 Total Liabilities & Shareholders' Equity 369,279.30 271,015.40 202,158.20 159,245.40 Shares Outs - Common Stock ---Primary Issue Total Common Shares Outstanding 385.49 385.36 382.82 361.74

Profit And Loss Account (Rs in Crs)

Year Mar Mar Mar Mar Mar Mar 08(12) 07(12) 06(12) 05(12) 04(12) 03(12) INCOME : 32,885. 31,611. 23,673. 20,152. 15,165. 10,585. Sales Turnover 03 21 43 03 85 43 4,355.6 4,425.4 3,380.1 3,063.4 2,270.3 1,743.7 Excise Duty 3 28,529. 4 27,185. 3 20,293. 4 17,088. 0 12,895. 9 8,841.6 Net Sales 40 77 30 59 55 4 Other Income 972.93 574.11 693.92 560.29 427.79 323.65 Stock Adjustments -40.48 349.68 256.91 144 -141.98 119.74 Total Income 29,461 .85 28,109 .56 21,244 .13 17,792 .88 13,181 .36 9,285. 03 EXPENDITURE : 20,190. 19,374. 14,263. 11,929. 8,341.3 5,699.5 Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalized 19 93 86 48 9 8325.19 327.41 258.51 237.81 214.52 193.51 1,534.4 1,361.2 1,141.4 1,037.9 1 0 8 3 879.49 720.371,847.4 1,618.6 1,251.0 1,017.1 3 8 2 1 722.95 510.39 1,442.9 1,322.8 1 8 985.74 795.03 645.73 606.251,598.7 1,153.5 3 3 784.56 673.78 644.75 529.6

1,131.4 0 577.05 308.85 218.13 144.89 156.46 Total Expenditure 25,807. 46 24,581. 58 18,376. 32 15,473. 01 11,303. 94 8,103.2 4 Operating Profit 3,654.3 9 3,527.9 8 2,867.8 1 2,319.8 7 1,877.4 2 1,181.7 9 Interest Gross Profit Depreciation Profit Before Tax Tax Deferred Tax 425.61 3,228.7 8 652.31 2,576.4 7 139.01 401.54 368.51 3,159.4 7 586.29 2,573.1 8 476 177.22

293.49 2,574.3 2 520.94 2,053.3 8 363.35 142.15 217.81 2,102.0 6 450.16 1,651.9 0 363.82 51.13 202.48 1,674.9 4 382.6 1,292.3 4 96 386 309.29 872.5 362.13 510.37 19.71 190.55 Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend

2,028.9 2 149.49 1,879.4 3 0 1,013.8 3 0 1,659.6 8 1,383.0 7 578.43 1,913.4 6 37.4 1,876.0 6 0 776.76 0 1,676.3 9 1,013.8 3 578.07 1,528.8 8 145.42 1,383.4 6 0 585.6 0 1,337.7 2 776.76 497.94 1,236.9 5 24.77 1,212.1 8 0

365.8 0 1,017.1 5 585.6 452.19 810.34 -29.95 840.29 0 123.71 0 568.25 365.8 282.11 300.11 4.94 295.17 0 0 0 176.4 123.71 127.91 Preference Dividend 0 0 19.94 0 0 0 Equity Dividend % 150 150 130 125 80 40 Earnings Per Share-Unit Curr 50.52 47.1 37.59 32.44 21.93 8.87 Book Value-Unit Curr 202.68 177.57 143.93 113.64 101.69 81.2

Cash Flow of Tata Motors ------------ in Rs. Cr. ------Mar '05 Mar '06 Mar '07 Mar '08 Net Profit Before Tax Net Cash From OperatingActivities Net Cash (usedin)/fromInvestingActivities 12 mths 12 mths 12 mths 12 mths 1236. 1528.88 1913.46 2028.92 95 1249. -221.03 2210.13 6174.50 82 -956.5 -1.06 -2805.10 -5721.86 7 Net Cash (usedin)/from FinancingActivities 940.6 7 -855.27 303.58 1132.46 Net (decrease)/increase In Cash and Cash Equivalents 1233. 92 -1077.36 -291.39 1585.10 Opening Cash &771.1 2196.79 1118.15 806.21 Cash Equivalents 2 Closing Cash &2005. 1119.43 826.76 2391.31 Cash Equivalents 04

BIBLIOGRAPHY

BIBLIOGRAPHY Books: 1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition) 2. Marketing Management, The McGraw.Hill Company Rajan Saxena (Third Edition) 3. Berman, Berry and Joel r Evans (Oct- 1997) Retail Management: A strategic approach 8th edition Englewood cliffs NJ printcehall 4. Country analysis 1997 A framework to identify and evaluate the national business

environment Hardward business review. MAGAZINES: A) B) C) D) E) OUTLOOK BUSINESS (FEB, 2009) BUSINESS STANDARD (April-July 2009) 4P S OF BUSINESS AND MARKETING (June 2009) BUSINESS TODAY - Pick and Choose BUSINESS TODAY - Tata Motors to bring Jaguar, Land Rover to India

INTERNET: 1. Tata Motors' Official Website 2. Wiki - Tata Motors Ltd 3. http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car 4. http://www.capitaline.com 5. http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull 6. http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull 7. http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow 8. htttp://www.moneycontrol/com/tata-group/tatamotors 9. http://www.yahoofinance.com/tatamotors 10. http://www.carwale.com/research/cars/tata