Customer Satisfaction with Mahindra Tractors

CHAPTER-1
INTRODUCTION
The Project assigned to me was A STUDY ON CUSTOMER SATISFACTIOIN ON MAHINDRA TRACTORS IN SREEKRISHNA AUTOMOBILE, AUTORISED DEALER IN MAHINDRA TRACTORS MEDAK DIST.
CUSTOMER SATISFACTION
According to Philip Kotler, satisfaction is a persons feelings of pressure or disappointment resulting from products perceived performance (outcome) in relation to his or her expectations. Customer satisfaction is the level of a persons felt state resulting from comparing a products perceived performance (outcome) in relation to the persons expectations. This satisfaction level is a function of difference between perceived performance and expectations. If the products performance, exceed expectation the customer highly satisfied or delighted. If the performance matches the expectations the customer is satisfied. If the products performance fall shorts of expectations the customer is dissatisfied.
Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. High satisfaction or delight creates an emotional affinity with brand.
Variety of factors that affect customer satisfaction includes product quality, product availability and after sales support such as warranties and services. Customer satisfaction is seen as a proof of delivering a quality product or service. It is believed that customer satisfaction 2
brings sales growth, and market share. A company can always increase customer satisfaction by lowering its price or increasing its services but this may result in lower profits. Thus the purpose of marketing is to generate customer value profitability. 3 India is on the threshold of a new millennium. India chose for global economy, exposing her to winds of change in the market place, which has expanded vastly and become fiercely competitive. In the changed environment, decision makers view the marketing concept as the key to success. Marketing in practice has to manage products, pricing, promotion and distribution. 4 A successful product can be developed by exploding these opportunities. While delivering the value of the consumer we make use of marketing support. This support is based on the knowledge of consumers and distribution. Marketing support both at the introduction of products and maturing is considered 5 Marketing, as suggested by the American Marketing Association is "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders". 6 The two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Marketing methods are informed by many of the social, particularly psychology, sociology, and economics. Anthropology is also a small, but growing, influence. Market research underpins these activities. Through advertising, it is also related to many of the creative arts.
For a marketing plan to be successful, the mix of the four "Ps"1 i.e. product, price, place, promotion must reflect the wants and desires of the consumers in the target market. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory. Customer Satisfaction is the buzzword used by the business people
for the success of organization in the present days. Due to the increases of heavy competition in every product line it become difficult for the companies to retain the customers for longer time. So retain the customer for longer time the marketer has to do only one things i.e. customer satisfaction .If customer is fully satisfied by the product it not only rub the organization successfully but also fetch many benefits for the company . They are less process sensitive and they remain customer for a longer period. They buy addition products overtimes as the company introduce related produce related products or improved, so customer satisfactions is gaining a lot of importance in the present day. Every company is conducting survey on customer satisfaction level on their products .To make the products up to the satisfaction level of customers. This project is also done to know the customers satisfaction on the TRACTOR on behalf of Mahindra and Mahindra Automobiles. The impact of automobile industry on the rest of the economy has been so evasive and momentous that is characterized as second industrial. It played a vital role in helping the nation to produce higher value
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good and services and in the enhancing their skills and impose tremendous demand for automobile. The decrease in the interest rate and easy available of Tractor loons from 2 to 3 years, lot of car manufacturers company facing cut throat competition in the fields of technology and price, So to gain the market share it is important for the institutes to satisfy its customers and to retain the reputation and its image.
Customer Satisfaction Strategies Followed By M&M

The different strategies followed by M&M consists of Customer relationship management, strategy to providing better facility to the owner, and strategy to provide better after sales service to customer.
Customer Relationship Management

CRM as a tool was used to create positive word-of-mouth, to monitor customer experiences and generate referrals. A series of CRM activities were implemented with regular direct communication, events and customer satisfaction surveys, Events, Festive offers, Rewards Program, etc. This study will help me to find and customer satisfaction level of the customer for authorized M&M service station in medak dist, To know the reason for decline of customers at service station, To know the perception of customers regarding the charges or rates offered by the service station and To know any suggestion from customers to improve the service station. The study is scheduled through primary data and other information thereby preparing Questionnaire, which focus of various variables, and attributes that are important to know the satisfaction level and the factors affecting the purchase decision. The survey caused at the zahirabad in medak Dist with the sample size of 100.The collected data are tabulated and analyzed data and all suggestions are given according to the analyzed data graphs and charts are used to illustrate the statistical data and findings. 5
The information collecting on the customer satisfaction totally from the rural area because the tractors are produced for the formers 90 % of these products buying farmers.
METHOD TO MEASURE CUSTOMER SATISFACTION

Companies use the following methods to measure customer satisfaction. 1) Complaints and suggestion system: Companies obtaining complaints through their customer service centers, and further suggestions were given by customers to satisfy their desires. 2) Customer satisfaction surveys Responsive companies obtain a direct measure of customer satisfaction by periodic surveys. They send questionnaires to random sample of their customers to find out how they feel about various aspects of the companys performance and also solicit views on their competitors performance. It is useful to measure the customers willingness to recommend the company and brand to other persons. 3) Lost Customer Analysis. Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened.
4) Consumer Behavior Vs Consumption Behavior Consumer behavior refers to the manner in which an individual reaches decision related to the selection, purchases and use of goods and services. Walters and Paul says that, consumer behavior is the process whereby the individuals decide what, when, how and from whom to purchase goods & services. 6
Consumer behavior relates to an individual person (Micro behavior) where as consumption behavior relates to and to the mass or aggregate of individuals (Macro behavior) consumers behavior as a study focuses on the decision process of the individual consumer or consuming unit such as the family. In contrast the consumption behavior as a study is to do with the explanation of the behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot, around which the entire system of marketing revolves. The study of buyer behavior is one of the most important keys to successful mark
OBJECTIVES OF THE STUDY

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The study has been under taken to analyze the customer satisfaction towards all variant of Mahindra Tractors in Zahirabad (Andra Pradesh) with a special reference to the M&M motors, the other objectives are: To gather information about customer satisfaction toward Tractors in the geographic region of Zahirabad (Andra Pradesh).
To know the customer perception about features, low maintenance cost and looks of Tractors.
To know the customer satisfaction about the safety and comfort pro-
vided by Tractors.
To provide suggestions, in improving the customer satisfaction and
the company sales and profitability.
To know the customer satisfaction towards the after sales service offers by M&M.
NEED AND SCOPE OF THE STUDY

In this competitive world retaining the customers has become important part and parcel of the business activity, since in this arena the people who adapt to changes and new technologies will survive. This study will help to understand customer need, preference and what they require from the service station and this study will not only help me as a student but it will also the sree Krishna automobiles to improve its service standard
PURPOSE OF THE STUDY

The purpose the study on customer satisfaction regarding after sales service and to know any suggestion to improve the sree Krishna automobile service center at zaheerabad. The different strategies followed by M&M consists of Customer relationship management, strategy to providing better facility to the owner, and strategy to provide better after sales service to customer. To know the the customers expecting from the M&M company. And how the customer is getting total value of the tractors of the Mahindra Company.
RESEARCH METHODOLOGY
The study was conducted by convent sampling and was administered through questionnaire. This research was conducted for Mahindra & Mahindra tractors, to know there opinion about the process of customers satisfaction and customers perception about the Mahindra tractors.
DATA COLLECTION TOOLS:

Primary data: The data collected was/is primary data requires to meet the objectives of the project was obtained mainly as primary data to know the opinion of the respondents about the process of customers satisfaction. Secondary data: Secondary data includes the collection of information from several journals, magazines and through internet. Sample design: A sample design of some respondents was taken and segmented into occupation, age and income. Type of questionnaire: The questionnaire consist of open ended, multiple choice dichotomous and closed ended.
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LIMITATION OF THE STUDY
Only Zahirabad region people opinions taken in to Consideration for this study. The project is carried out for the period of 45 days only. Measurement of customer satisfaction is complex subjects, which uses non-objectives method, which is not reliable. The sample unit was also 100 respondents. Communication is the barrier to gather information. Some of the customers refusing to give the information about the product because they are not phasing any miner problems with the Mahindra tractors.
To meet and know the satisfaction level of customers regarding
Mahindra tractors I was to follow the customer given time which was not convenient to me.
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CHAPTER-II
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INDUSTRY PROFILE
History and development of Automobiles also marks the dynamism in technological growth men have achieved. From the days of horseless carriages to the modern-age self-guided automobiles that are designed meticulously using cutting-edge technology, we have certainly-traveled too far. Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure, design and development, and marketing. Automobile industry in India is today poised for (he big leap and this segment helps you to be ready for that.
INDIAN AUTOMOBILE INDUSTRY

The automobile industry is one of the core industries in India economy, whose prospect is reflective of the economic resilience of the economy. With the liberalization of the economy. India has become the playground of major global automobile majors. This industry report of SCOPE MARKETING & INFORMATIONS SOLUTIONS PVT LTD provides extensive information on the Indian Automobile Industry. The automobile industry in India is gradually evolving to replicate 13
those of developed countries. The report focuses on the trends that are emerging in the industry across segments, namely, passenger cars/multiutility vehicles, commercial vehicles, two-wheelers and tractors. The qualitative analysis of the various trends reveals that the industry offers immense scope even for allied industries and those looking at investing in the auto industrys a background, a brief perspective of the global automobile industry across segments has been provided with comparisons on Indian scenario wherever needed. A detailed competitive analysis of the industry has been provided backed warn comprehensive details on production, sales, exports and imports over the years, across segments. Sales have increased with the entry of several foreign manufacturers and the introduction of new vehicle models. The report also deals with aggressive marketing strategies undertaken by different manufacturers in India. This highlights key issues influencing the automotive industry in India such as import and excise duties, emission norms etc and it also deals with various government regulations.
BIRTH OF AUTOMOBILES
The history of the automobile actually began about 4,000 years ago when the first wheel was used for transportation in India. Several Italians recorded designs for wind-driven vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels. Vaturio designed a similar vehicle that was also never built. Later Leonardo da Vinci designed clockwork-driven tricycle with tiller steering and a differential mechanism between the rear wheels. In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small 14
steam-powered engine models were developed, but it was another century before a full-sized engine-powered vehicle was created. Although by the mid-15th century the idea of a self-propelled vehicle had been put into practice with the development of experimental vehicles powered by means of springs, clockworks, and the wind, NicolasJoseph Cugnot of France is considered to have built the first true automobile 1769. Designed by Cugnot and constructed by M. Brezin, it is also the first vehicle to move under its own power for which there is a record. Cugnot's three-wheeled steam-powered vehicle carried four persons and was meant to move artillery pieces. It had a top speed of a little more than 3.2 km/h (2 mph) and had to stop every 20 minutes to build up a fresh head of steam. Evans was the first American who obtained a patent for "a selfpropelled carriage." He, in fact, attempted to create a two-in-one combination of a steam wagon and a flat-bottomed boat, which didn't receive any attention in those days. During the 1830's, the steam vehicle had made great advances. But stiff competition from railway companies and crude legislations in Britain forced the poor steam vehicle gradually out of use on roads. The early steam-powered vehicles were so heavy that they were only practical on a perfectly flat surface as strong as iron. A road thus made out of iron rails became the norm for the next hundred and twentyfive years. The vehicles got bigger and heavier and more powerful and as such they were eventually capable of pulling a train of many cars filled with freight and passengers. Carl Benz and Gotttlieb Daimler, both Germans, share the credit of changing the transport habits of the world, for their efforts laid the foundation of the great motor industry, as we know it today. First, Carl Benz invented the petrol engine in 1885 and a year later Daimler made a car driven by motor of his own design and the rest is history. Daimler's engine proved to be a great success mainly because of its 15
less weight that could deliver 1000 rpm and needed only very small and light vehicles to cany them. France too had joined the motoring scenario by 1890 when two Frenchmen Pan hard and Levassor began producing vehicles powered by Daimler engine, and Daimler himself, possessed by the automobile spirit, went on adding new features to his engine. He built the first V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest form of sparking plug. The engines were positioned under the seat in most of the Daimler as well as Benz cars. However, the French duo of Pan hard and Leaser made a revolutionary contribution when they mounted the engine in the front of the car under a 'bonnet'. For many years after the introduction of automobiles, three kinds of power sources were in common use: steam engines, gasoline or petrol engines, and electric motors. In 1900, over 2,300 automobiles were registered in New York, Boston, Massachusetts, and Chicago. Of these, 1,170 were steam cars, 800 were electric cars, and only 400 were gasoline cars. In ten years from the invention of the petrol engine, the motorcar had evolved itself into amazing designs and shapes. By 1898, there were 50 automobile-manufacturing companies in the United States, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the manufacture of automobiles with his assembly-line style of production and brought out the Model T, a car that was inexpensive, versatile, and easy to maintain. The introduction of the Model T transformed the automobile from a plaything of the rich to an item that even people of modest income could afford; by the late 1920s the car was commonplace in modem industrial nations. Herbert Austin and William Morris, two different carmakers, introduced mass production methods of assembly in the UK, thus paving the way for *a revolution in the automobile industry. Austin Seven was the world's first practical four-seated "baby car' which brought the pleasures of 16
motoring to many thousands of people who could not buy a larger, more expensive car.
Even the 'bull-nose' Morris with front mounted engine became the well-loved model and one of the most popular cars in the 1920s. Automobile manufacturers in the 1930s and 1940s refined and improved on the principles of Ford and other pioneers. Cars were generally large, and many were still extremely expensive and luxurious; many of the most collectible cars date from this time. The increased affluence of tire United States after World War II led to the development of large, petrolconsuming vehicles, while most companies in Europe made smaller, more fuel-efficient cars. Since the mid-1970s, the rising cost of fuel has increased the demand for these smaller cars, many of which have been produced in Japan as well as in Europe and the United States. Clearly, the consumer is king in a competitive environment. The automobile sector is just one of several examples of how the consumer as benefited from competition. For decades, the Indian consumer as paid dearly for our policy makers confusion between socialism and capitalism. The thoughtless policy frame as neither allowed neither efficient producers nor consumers to get optimum value for their effort or money. The recent price was triggered by Telcos India is an interesting case study. Let us trace the evolution of the Indian passenger car industry. Since independence till the early 1980s there were only to major Indian players-Hindustan Motors and Premier auto-in the industry. As new players were barred by licensing, and imports by absurd import duties, these two car manufacturers constituted the oligopoly.
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They had neither financial muscle nor any incentive to invest in technology or quality. Little wonder the Indian consumer had the worst quality of cars in the World. Worse than cars available even in countries like Nepal, Srilanka or Bangladesh besides the exorbitant duty structure ensured that ownership was restricted to the super rich the oligopolists were happy with this situation. Until the then prime ministers omnipotent son had brilliant idea! To manufacture a people car at an affordable price. Policies, government machinery, etc were twisted to; cement prices in unofficial markets (make the dream come true. The oligopolists were furious (read premier Autos annual reports of late 1980s/early1990s).but the people are maruti 800 came into existence. We Indians have been quite happy with its japanees technology. But I realized how poorly it compared to international cars when a well-built foreign guest of mine, unable to fit himself in the front seat, remarked, Is this car or a toy? All thought that people car was available at such a low price because of the benevolent pricing our egalitarian government, which holds the majority stake in the company. Then competition arrived even for the people car (the competitor, indica, though is yet to hit the roads) and behold, the people car is affordable by many more.-it is 10-12 percent cheaper. Some other carmakers have slashed prices by almost25%. The private players plan to sell 10000cars at lower price than the erstwhile Peoples Car has brought down prices of models that together sell about 250000 units every year. In cars, the price reduction is quantifiable and visible. In the past seven years, there have been hundreds of products where unshackling competition has benefited the consumer.
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TRACTORS IN INDIA
As commercialization of agriculture grew in intensity in the mid to late 1800s the British Raj and the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947. The socialist oriented five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per year, India over-took the United States as the world's largest producer of four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today. Despite these impressive numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization 1945 to 1960 War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.
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1961 to 1970 Local production began in 1961 with five manufacturers producing a total of 880 units per year. By 1965 this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country. 1971 to 1980 Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use passing the half million mark by 1980. 1981 to 1990 A further five manufacturers began production during this period but only one of these survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa. 1991 to 1997 Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark. India now emerged as one of the world leaders in wheeled tractor production. 1997 to 1999 20
Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well established in the motor industry, began tractor production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching equipment. The company is making a $US 75 million initial investment in a state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and Greeves Ltd will produce same tractors under similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-200 hp range. Total annual production was forecast to reach 300,000 during the following year. 1999 to Present Facing market saturation in the traditional markets of the North West (Punjab, Haryana, and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation problems also came increased problems of "prestige" loan defaults, where farmers who were not financially able took tractors in moves to increase their familys prestige. There is also reported increased misuse of these loans for buying either lifestyle goods, or for social functions. Government and private banks have both tightened their lending for this sector adding to the industry and farmers woes. By 2004 a slight uptick in sales once again due to stronger and national and to some extent international markets. But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000. 21
Tractors manufacture association

The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of Indian Industry (CII), New Delhi. Though not all manufacturers are members TMA is recognized as the main trade group representing the agricultural tractor industry in India. Mallika Srinivasan, Economic Times Businesswoman of the year 2006, and CEO of TAFE Limited, is currently serving as president.
Current manufacturers of tractors in India

Balwan Tractors, Force Motors Ltd Formerly known as Bajaj Tempo Ltd. until 2005, Force Motors Ltd., makers of India's ubiquitous 3-wheeler Tempos since 1957 in a collaboration with Vidal & Sohn Tempo Werke, Germany. In 1999 began production of Ox and Ox 45 Brand Tractors both which incorporated transmission technology from the German manufacturer ZF. Additional line Balwan was introduced in 2004 and between the lines Force Motors offers a line of two-wheel and four-wheel tractors in a horsepower range from 10 - 50 HP. Captain Tractors Pvt. Ltd Founded in May 1994 and located in Rajkot, India, Captain Tractors manufactures mini-tractors under the Captain brand.
Crossword Agro Industries Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and Captain brand names. 22
Eicher In 1949, Eicher GoodEarth was set up in India with technical collaboration with Gebr. Eicher a of Germany, imported and sold about 1500 tractors in India. In April 24, 1959 Eicher came out with the first locally assembled tractor from its Faridabad factory and in a period from1965-1974 became the first fully manufactured (100% indigenization) tractor in India. In December, 1987 Eicher Tractors went public and in June, 2005 Eicher Motors Limited sold Eicher Tractors & Engines to a subsidiary of TAFE called TAFE Motors and Tractors Limited Eicher also produced tractors under the Euro Power and Eicher Valtra brands under license from Valtra, an AGCO brand. Escorts (Escort, Powertrac and Farmtrac) Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in1975 reaching 71,000 by 1980. Ford (Ford - New Holland) was sold in 1992. Ford Motor Company proper quit the tractors business, but the name was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford models under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range and has already sold over 6 lac tractors. Its tractors are marketed under three brand names, Escort, Powertrac and Farmtrac. HMT Tractors HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. It manufactures its tractors in Pinjore, Mohali in a large factory that also manufactures machine-tools, andHyderabad It has a capacity of 20,000 tractors per annum. In the Machinetool company is a large foundry. It produces tractors in a range from 25 HP 23
to 75 HP. For a short time, HMT exported tractors to the USA under the Zebra brand, which were marketed by Zetor distributors and dealers there. The company is controlled by the Ministry of Heavy industry that provides, on a monthly basis to the public its financial performance. Indo Farm Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds tractors in the 30-50hp ranges. John Deere In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under theJohn Deere name for worldwide sales. Deere & Company acquired nearly all the remaining shares in this joint venture. The new enterprise is known as John Deere Equipment Private Limited. The factory currently produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for export to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune factory started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008. Mahindra Gujarat Tractor Limited The company was originally incorporated in the state of Gu-
jarat in 1963 with technical collaboration with Motokov-Praha of Czechoslovakia asGujarat Tractor Corporate Ltd. It was taken over by Mahindra & Mahindra Limited in 1978 (holds 60% equity) and re-christened Mahindra Gujarat Tractor Ltd as part of Mahindra Tractors. The company is engaged in manufacturing of tractors in a range of 30-45hp which are marketed un-
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der Shaktimaan brand. They were previously marketed under the Mahindra Gujarat name, and before that the Hindustanname. Mahindra & Mahindra M&M's Farm Equipment Sector origins lie in a joint venture in 1963 between the Company, International Harvester Inc., and Voltas Limited, and was named International Tractor Company of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division. After M&M's organizational restructuring in 1994, this division was called the Farm Equipment Sector. The Farm Equipment Sector has also ventured into manufacturing of Industrial Engines. M&M Industrial engines are used for various applications like generator sets, industrial, construction, marine, compressors, etc. These engines are manufactured at the Company's engine assembly plants at Kandivli and Nagpur. M&M has two main tractor manufacturing plants located at Mumbai and Nagpur in Maharashtra. Apart from these two main manufacturing units, the Farm Equipment Sector has satellite plants located at Rudrapur in Uttarachal and Jaipur in Rajasthan. The Farm Equipment Sector as reported by the Company has a dealer network of over 450 dealers. This dealer network is managed by 28 area offices, situated in all the major cities and covering all the principal states and M&M tractors has sold more than 13,00,000 tractors since its inception. M&M's Farm Equipment Sector is perhaps the largest exporter of Indian tractors to the USA and the west. And in a reversal to earlier trends of Indian tractor manufactures with joint ventures with western tractor companies, M&M, in 2004 announced that they had bought majority stake (80%) in Jiangling Tractor Company, and renamed it Mahindra Jiangling Motor Co Group (JMCG). This is the first instance of Indian tractor industries participating in India's reverse FDI. The plant in China reportedly has a production capacity of 12,000 tractors annually.
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In March 2007, M&M bought a controlling 43% stake in the Mohali-based tractor firm Punjab Tractors (Swaraj) that will reportedly increase M&M's share in the domestic farm equipment market from just over 30% to 40%. The 43% stake includes 29% owned by private equity firmActis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its stake to 64.6%. MARS Farm Equipments Ltd. Originally established in 1976, the MARS Group is engaged in manufacturing/marketing of dump trucks, loaders, foggers, and agricultural tractors and attachments. Based in Lucknow, U.P., it began manufacturing two minitractor models under the Marshal name in 2005,Captain DI 2600 of 25 HP and Trishul MT DI 625 10 HP. New Holland New Holland Ag's entry into India was facilitated by FIAT's acquisition of Ford-New Holland in 1991. By 1998 New Holland Ag. (India) completed the construction of a new plant in Noida, near New Delhi, with a capacity of 5000 tractors in the 35 - 75 hp range. In 1999, New Holland Ag.'s parent company FIAT bought 70% of holdings of Case Corporation and created Case New Holland Global (CNH one of the top three tractor/agricultural/construction machinery manufacturers in the world), the new holding company New Holland Ag. (India). In 2000, the capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company manufactured 24,000 tractors for the domestic and export markets.New Holland India exports fully-built tractors to 51 countries in Africa, Australia, SouthEast Asia, West Asia, North America and Latin America.The India plant of New Holland was originally built in 1998 to cater only to India domestic market. However due to slow down of economy by year 2001-2002 and slump in domestic demand, it became a challenge to utilize the installed capacity of the factory.Hence the company started looking its market beyond 26
India borders. Its then CEO Mario Gasparri guided the vision and handed over the task of overseas business to its dynamic manager Bhanu Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-International Business Operations took op the export volumes from the level of almost nil in 2003 to 8000 units in year 2007. The export business last year in 2007 contributed over 50% of the company business of total USD 250 millions.This also made New Holland the second largest tractor exporter from India after John Deer. In year 2007, India exported around 32,000 tractors of which 25% share was of New Holland. Preet Tractors Preet Agro began manufacturing tractors in 2002 in Punjab, India. They currently manufacture in the 35-70hp range. Punjab Tractors Ltd (Swaraj Tractors) In 1965, Government of India research institute Central Mechanical Engineering Research Institute, Durgapur, WB initiated design and development of Swaraj Tractor based on indigenous know-how. In 1970, Punjab Government acquired the Swaraj tractor's design and established Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous project. The company exports Tractors to various countries including USA. It manufactures nine models of tractor and several models of combine harvesters. The manufacturing units are located at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala District, Punjab. Today swaraj tractor in no 2 brand in Indian after Mahindra tractor.More than 800000 lacs tractor sold. The popular models sold under SWARAJ brand are: SWARAJ 744, SWARAJ 735, SWARAJ 855, SWARAJ 978, SWARAJ 834, SWARAJ 939, SWARAJ 733, SWARAJ 724, SWARAJ 722
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Swaraj also manufactures Forklifts and Combines, which are assembled in their Mohali Plant. Actis Capital, a private equity firm acquired 29% of Punjab Tractors in mid2003 from the Punjab Government. In March 2007, and currently subject to the receipt of requisite approvals, M&M bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase M&M's share in the domestic tractor market from just over 30% to nearly 40%. The 43% stake in Punjab Tractors includes the 29% owned by Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its share in Punjab to 64.6%. Same Deutz-Fahr Ltd. SAME Tractors is an USD 4 billion company for past 7 Decades of Rich Experience in Agriculture Segment. It was found by Francesco Cazzani along with his brother way back 1927. Greaves Ltd joined in collaboration with SAME for manufacturing of tractors in 1996 under the SAMEGreaves brand. By 2000, Greaves sold its shares to SAME and formed 50:50 Joint Venture as SAME Greaves Tractors Ltd. By 2002, Greaves Exited from SAME, SAME Greaves has become a wholly owned subsidiary of SAME, Italy. The company has been renamed as SAME DEUTZ Fahr Group India, Ranipet, Tamil Nadu, and India. Sonalika (International Tractors Ltd.) International Tractors Limited was incorporated on October 17, 1995 and began manufacturing tractors designed by Central Mechanical Engineering Research Institute (CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault Agriculture was bought by CLAAS of Germany in 2003. Incidentally 28
CLAAS already has a strong presence in India market producing its Crop Tiger range of Combine Harvesters in a plant in Faridabad (near New Delhi) since 1992. CLASS has opened a new plant in Punjab at Morinda in 2006. Standard Standard Combine began building tractors in 2000 in Barnala, Punjab, India. In Standard Tractors, tractors are being manufactured in the range of 35, 45, 50, 60, and 75 HP with respective model names: Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475. Engines for all these tractor models, except the last one, are manufactured within the plant as Standard Engines, in specific names SE 335, SE 345, SE 450 and SE 460, respectively. All the above-mentioned models of Standard Engines have shown compliance to the TREM-III emission norms, as have been verified by the ARAI. However, two new variants of tractor of 35 hp (Standard 335-I) and 45 hp (Standard 345-I), equipped with famous Perkins engines (assembled within the Standard Tractors plant), and two completely new models of tractor of 30 hp (Standard 330) and 40 hp (Standard 340) are on the verge to be launched. Besides these, three 3-wheelers (two passengercarriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3wheeled mini-car, and two 2-wheelers (scooters) are either in the process of development or on the verge of launch from the Standard Tractor Division. TAFE Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both theTAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE bought the Eicher Motors tractor and engine division.
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VST Tillers VST Tillers was set up in 1965 in Bangalore, India. In collaboration with Mitsubishi Agricultural Machinery of Japan, they manufacture 18HP tractors under various brands, including Mitsubishi-Shakti', Shakti, Eurotrac-VST and Euro-Trac. They have been exported to Asia, the Middle East, Europe and the USA. In odisa thet intarduse in 1987 with tte halpe of m/s sahoo agrochemi Cuttack 753009
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COMPANY PROFILE
Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds and sources tractors that are sold worldwide across six continents. Mahindra is also among the top three tractor manufacturers in the world. Mahindra has a huge consumer base in India, China and America and a growing base in Australasia. The company builds more tractors in India than any other manufacturer, and has the capacity to build 150,000 tractors a year. In 1963, M&M formed a joint venture with International Harvester to manufacture tractors carrying the Mahindra nameplate for the Indian market. Armed with engineering, tooling and manufacturing knowhow gained from this relationship, M&M developed its first tractor, the B275.Mahindra compact tractors and utility tractors are some of the toughest, most durable on the planet. Mahindra Tractors with sales of nearly 85,000 units annually is one of the largest tractor companies in the world, and is number one in sales in India - the largest tractor market in the world. To expand into the growing tractor market in China, Mahindra acquired majority stake in Jiangling. To raise awareness about Mahindra in the US, Mahindra USA announced its new sponsorship in the NASCAR Nationwide Series with R3 Motorsports, which is participating with a #23 Mahindra Tractors Chevrolet. The car will be driven by Robert Richardson, Jr. Mahindra USA, Inc. announced a 17-race primary and 18-race associate sponsorship for the 2009 NASCAR Nationwide Series. With this sponsorship, Mahindra was the first Indian company to sponsor a car in NASCAR. In 2008, Mahindra was a sponsor of the McDonald Motorsports team which ran the #81 car in the NASCAR Nationwide Series.
MAHIDRA OPERATIONS
Mahindra Tractors operates in 10 coutries and has a fairly large 31
customer base in the United States, Australia, Chile, Serbia, Indian Subcontinent, Iran, Syria and a major part of the African continent among many more Mahindra operates in China, North America and Australasia through its subsidiaries, Jiangling, Mahindra USA and Mahindra Australia. These subsidiaries are also responsible for sales. It also operates in some Indian states through its subsidiaries namely, Mahindra Gujarat and Swaraj. M&M's association with the automobile business dates back to 1945. The Company was incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian market, initially by importing and assembling Willys Jeep kits. The manufacture of utility vehicles commenced in 1954 in collaboration with Willys Overland Corporation and its successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the Daimler Chrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV) in 1965. The Company has recently entered the three-wheeler market. Over the years, the Mahindra brand of vehicles has come to represent high quality, ruggedness, durability, reliability, easy maintenance and operational economy. These are the qualities that have endeared the vehicle to individuals as well as institutions like the Indian armed forces. M&M is the leader in the MUV business in the country since inception. M&M has comprehensive manufacturing facilities with high level of vertical integration. M&M's automotive division has four manufacturing plants, three in the state of Maharashtra and one in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-utility vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles and three-wheelers are manufactured at the Company's plant in Zaheerabad in Andhra Pradesh. Our Mumbai and Nasik plants with the R&D facility at Nasik are ISO/TS 16949 certified. The Mumbai plant has also been recommended for 32
the TPM excellence award. Our engine plant at Igatpuri has QS 9000 certification. Our LCV & three-wheeler plant at Zaheerabad have ISO 9001:1994 certification. Both of these plants are also working towards TS 16949 certification. Our plants in Mumbai and Igatpuri are also ISO 14001 certified. M&M has a strong Research & Development set-up, with over 300 engineers in the automotive division. The Company's technical prowess is proven by negligible import content in our vehicle and by the design and development of a totally, from ground upward, new contemporary SUV Scorpio. The division's marketing efforts are supported by a network of more than 275 dealers across the country, which are managed by 20 sales offices. Additionally, the division has a national network of authorized service stations and stockiest to meet customer needs for servicing and spare parts. Having conquered a substantial portion of India's semi-urban and rural markets, the division has in recent years secured significant success in urban regions following the introduction of premium MUVs like Bolero, and Scorpio. Scorpio is M&M's first indigenously developed Sports Utility Vehicle - an off road vehicle with car like comforts. The Scorpio was launched in June 2002 and has been universally acclaimed. It was declared to be the "Car of the Year" by CNBC AutoCAD, BBC Wheels and Business Standard Motoring.
M&M's automotive division also exports its products to several countries in Africa, Asia and European & Latin American countries.
HISTORY OF THE COMPANY

1947: October, first batch of seventy-five Utility Vehicles (UVs) imported 33
in CKD condition from Willys overland Export Corporation. 1949: Lease of 11071 Sq. yds at Mazagaon from British India Steam navigation. The first Willys Overland Jeep built in India at the Assembly Plant, Mazagaon, and Bombay. 1954: Phased manufacture of Vehicles undertaken in collaboration with Kaiser Jeep Corporation and American Motors Corporation. 1962: Indigenous content of Jeep goes up to 70%. 137 acres of land purchased at Kandivli to centralize manufacturing operations. 1965: FC 150 Petrol Trucks introduced. 1967: Two wheel drive Utility Vehicles introduced. 101" wheelbase and Metal Body UVs introduced. Indigenous content goes up by 97%. 1969: Export of vehicles started, export of total 1200 UVs together with spare parts to Yugoslavia. Exports also made to Ceylon, Singapore, Philippines and Indonesia. 1970: Contracts concluded to export of 3304 vehicles, mainly to Yugoslavia and Indonesia. 1971: Separate R&D section set up. 1974: Maxi miller campaign launched to conserve fuel. CJ 4A introduced with new transmission and axle ratio. Collaboration Agreement with Jeep Corporation (subsidiary of AMC, Detroit).
1975: FC 260 Diesel light truck introduced. CJ 500 D Diesel introduced with MD 2350 Diesel Engine. 1979: Government of India approves in principle, the technical collaboration with Peugeot, France for the manufacture of XDP 4.90 Diesel Engine. 34
1981: Nasik Trucks Assembly Plant formally inaugurated. Peugeot Engine Assembly Plant at Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly Line. 1983: FJ 460 models introduced with 4-speed gearbox. Engine plant at Igatpuri was formally inaugurated by Mr. Jean Boillot, President of Automobiles Peugeot of France for the manufacture of 25000 Peugeot and Petrol engines. 1985: New Mahindra Vehicle-MM 540 launched in Bombay. NC 640 DP with 4-speed gearbox introduced. Mahindra MM 440 introduced. 1986: CJ 640 DP Vehicle introduced. 1987: MM 540 DP metal Body Wagonette introduced. 1988: M&M signed a Memorandum of Understanding with Hyderabad Allwyn Nissan Limited to form Mahindra Nissan Allwyn Ltd., as its associate company with LCV operations in Andhra Pradesh. 1989: CJ 340 DP model introduced. M&M and Peugeot announced their tie up for the manufacture of Peugeot 504 pick up truck, BA 10 gearboxes and latest XD 3 diesel engines. M&M acquired automotive pressing unit at Kanhe, from Guest Keen Williams Ltd. 1991: Introduction of CJ 500 DI models with MDI 2500 A direct injection diesel engines. M&M bags order to export 10000 CKD kits. Commander range of models: 650 DI, 750 DP/HT were launched with tremendous market response. 1993: Mahindra Armada launched. M&M was the only manufacturer to withstand the demand recession, with increasing sales. 1995: Mahindra Nissan Allwyn Ltd. (MNAL) merged with M&M and Zaheerabad LCV operations becoming part of Automotive Sector. FJ series of LCVs were shifted from Nasik to Zaheerabad. Business Process Re35
engineering Project initiated in the Division. Igatpuri Engine Plant received ISO 9002 certificate from TUV of Germany. Single Cab/Double Cab project was initiated. 1996: New LCV model Cabking DI 3150 & Mahindra Classic vehicles were launched. New Commander 5 Door Hard Top was introduced. The company was the first automobile manufacturer to get all the engine types approved for the new emission norms effective from 1st April 96. IDAM (Integrated Design & Manufacturing) set up for designing entirely new vehicle with the help of internationally renowned consultants. 1997: Commercial production of Ford Escort commenced at Nasik Plant. License & Technical Assistance Agreement was signed with Mitsubishi Motors Corporation for Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and BA 10). Soft/Hard top versions of CL/MM 550, 8 seater Armada, Commander 650 DI with longer wheel base and MM 540/550 XDB models were introduced. Kandivli and Nasik plants received ISO 9002 certificate from RW-TUV. 1998: Die shop Inauguration at Nashik Plant 2-8/8/97. Voyager launched by the Chairman at Zaheerabad Plant on 12/11/97. Complete localisation of Cabking model at Zaheerabad plant. Change over from 3-Speed to 4-Speed Transmission. 400 nos. Army order successfully executed at Kandivli Plant in Mar'98.
MAJOR MILESTONES
1945 October 2, Mahindra & Mohammed formed.
1948: The Company was renamed Mahindra & Mahindra Limited (M & M) Steel Trading business was started in association with suppliers in U.K 1948: Business connections in USA through Mahindra Wallace 36
1949: Wallace Steel trading on behalf of European suppliers Jeep Assembly commenced 1950: The first business with Mitsubishi Corporation (for 5000 Tons) for wagon building plates for supply from Yawata Iron & Steel 1953: Otis Elevator Co. (India) established 1954: Technical & Financial Collaboration with Willys Overland Corporation 1956: Shares listed on the Bombay Stock Exchange Dr. Beck & Co. formed - a JV with Dr. Beck & Co., Germany 1957: Mahindra Owen formed - a JV with Rubery Owen & Co. Ltd., UK 1958: Machine Tools Division started 1960: Mahindra Sintered Products Ltd. (MSP) formed - a JV with the GKN Group, UK. 1962: Mahindra Ugine Steel Company (MUSCO) formed - a JV with Ugine Kuhlmann, France 1963: International Tractor Co. of India (ITCI) formed - a JV with International Harvester Co., USA 1965: Vickers Sperry of India Ltd. a JV with Sperry Rand Corporation, USA.Roplas (India) collaboration with Rubery Owen, UK .Manufacture of Light Commercial Vehicles commenced. 1970: Mahindra Engineering & Chemical Products Ltd. (MECP) commenced operations. 1971: International Harvester collaboration ended 1975: Switch over to diesel vehicles in-house development. 1977: ITCI merges with M&M, to become its Tractor Division 1979: License from Automobiles Peugeot, France for manufacture of XDP 37
4.90 Diesel Engines 1982: License from KIA for manufacture of 4 Speed Transmissions "Mahindra" brands of tractors born Siro Plats formed 1983: M&M becomes market leader in Indian Tractor Market. (Position retained ever since) 1984: Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and market utility vehicles in Europe 1986: Mahindra British Telecom (MBT) formed - a JV with British Telecommunications plc (BT), UK 1987: Acuired International Instruments Ltd. 1989: Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW 1991: Introduction of Commander Series. 1992: Triton Overwater Transport Agency Ltd., formed. Implementation of the Service Center project at Kanhe. Merged diverse activities of Steel, Machine Tools, Graphics into Intertrade Division 1993: Mahindra Steel Service Centre Limited formed in association with Mitsubishi Corporation and Nissho Iwai Corporation of Japan.
Mahindra Acres Consulting Engineers Ltd. (MACE) formed - a JV with Acres International, Canada. Incorporation of MBT International Inc., USA, a wholly owned subsidiary of MBT The Companys maiden international offering the US$ 75m GDR issue.
INTRODUCTION OF ARMADA. 1994: Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) 38
formedMahindra USA Inc., formed, for distribution of Tractors in the USA EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company Ltd. A/S, Denmark Reorganization of the Group creating six Strategic Business Units .MSL Division (Auto Components) hived off to form Mahindra Sona Ltd. Mahindra Nissan Allwyn Limited merged with the Company. 1995: Mahindra Holding & Finance Ltd. (MHFL) becomes a subsidiary of M & M to carry out business as investment company.Technical collaboration with Mitsubishi / Samcor to manufacture L300. 1996: Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA to manufacture passenger cars .The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115 million. 1997: A new die shop was inaugurated at Nasik. Inauguration of The Mahindra United World College of India. 1999: Launch of Bijlee a battery-operated, 3-wheeler environmentalfriendly vehicle.The largest online used vehicle website in India launched by Mahindra Network Services.The business of Intertrade Division and Mahindra Exports Ltd. combined and renamed Mahindra Intertrade Ltd. The Company acquired major stake in Gujarat Tractors. Mahindra & Mahindra Financial Services Limited becomes a subsidiary of M&M 2000: The Company unveils new logo.Mahindra Auto Specialties Ltd. a new 100% subsidiary is formed.M&M sets up its first satellite tractor plant at Rudrapur.The Company launches New Age Tractor, the Mahindra Arjun 605 DI (60 HP tractor). The Company launches Bolero GLX a Utility Vehicle a response to needs of urban consumer. 2001: A 3-wheeler diesel vehicle "Champion" is launched. The Company launches Mahindra MaXX a MUV positioned with the caption Maximum Space, Maximum Comfort.M&M ties up with Renault for petrol engines. 39
M&M established a separate division to provide Defence Solutions 2002: M&M launches Scorpio - the new generation Sports Utility Vehicle 2003: Scorpio - Recipient of prestigious Awards "Car of the Year" Award from Business Standard Motoring "Best SUV of the Year" and "Best Car of the Year" Awards from BBC on Wheels "Car of the Year" Award from CNBC Auto Car.M&M launches the "Invader" - a sporty open top vehicle. M&M opens a second tractor assembly plant in USA.M&M launches MaXX Pik Up. M&M Tractors awarded the prestigious Deming Prize for excellence in Quality -the first tractor company in the world to receive the award. M&M launches India's first Turbo tractor - Mahindra Sarpanch 595 DI Super Turbo. Scorpio wins National Award for R&D. M&M ventures into Industrial Engine business. Mahindra Defence & Lockheed Martin Information Systems, UK, strike an alliance for Defence Product. 2004: Launched the Mahindra World Tractor - a 75 HP tractor in the overseas market. Formed a new Sector, Mahindra Systems and Automotive Technologies (MSAT), to focus on developing components as well as offering engineering services. Launched "Bolero" and "Scorpio" in Latin American, Middle East and South African markets. Signed MOU to enter into JV with Jiangling Motor Co. Group (JMCG) of China to acquire tractor-manufacturing assets from Jiangling Tractor Company, a subsidiary of JMCG. M&M becomes the first Indian company to achieve sales of one million tractors. 2005: Acquired 51% stake in SAR Transmission Private Limited, a company engaged in manufacture of gears and transmission shafts.
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M&M Rail
Farm Diesel
Equipment Engine
Sector
launch offering
operations it on the
in
Australia. Scorpio.
M&M becomes the first Indian auto manufacturer to launch the Common (CRDe), Acquired 80% stake in the JV with Jiangling Motors i.e. in Mahindra (China) Tractor Company. M&M and Renault enter into a JV to manufacture of the mid-sized sedan, Logan, in India. M&M and International Truck and Engine Corporation enter into a JV to manufacture Trucks & Buses in India. The first tractor from the JV, Mahindra (China) Tractor Co. Limited, rolled out on 2 July 2005 2008: Mahindra USA was rated highest in Overall Satisfaction amongst tractor manufacturers in a survey conducted by the North American Equipment Dealers Association (NAEDA) the apexdealer association in the USA. Mahindra Tractors also recently featured in the top 10 list of most innovative Indian companies compiled by the Wall Street Journal as part of its survey to determine Asias 200 most-admired and innovative companies. At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive product expansion program that would see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbodiesel engine. True to their word, M&M launched the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 models. Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs. 41
The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list. Mahindra & Mahindra has controlling stakes in Reva electric and has submitted letter of Intent for South Korea's Ssangyong Mahindra is currently preparing to sell the diesel SUVs and pickup trucks starting in February 2010 in North America, through an independent distributor, Global Vehicles USA, based inAlpharetta, Georgia. Mahindrahas announced it will import pickup trucks from India inknockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the U.S. from kits of parts shipped in crates. M&M is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Mahindra Tractors (China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products for the American market.
COMPETITORS MAHINDRA TRACTORS

Six main players - Mahindra & Mahindra Ltd (M&M), Tractors Farm Equipment Ltd (TAFE), Escorts Ltd, Punjab Tractors Ltd (PTL), Eicher Ltd, Hindustan Machine Tools Ltd (HMT) - control most of the market, while a couple of players in the unorganized sector specialize in used tractors.
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Mahindra & Mahindra is the leader in the industry, with a market share of 27%. Three multinationals, New Ford Holland, John Deere and Greaves, have entered the market in the past two years, but their combined sales have been below 6,000 units. All Indian brands, except Punjab Tractors Ltd, have had overseas tie-ups and support since the beginning.
THE MARKET SHARE OF MAHINDRA TRACTORS The company has a strong presence in more than 20 countries with a global customer base in excess of 1.2 Mn. In the year 2007, the company sold about 115,000 tractors around the world. In India, which is the worlds largest tractor market and having about 20 different tractor manufacturers, the company enjoys a market share in excess of 30%. With its recent acquisition of another tractor company in India, its combined market share would reach 40%. In USA, the company has three assembly facilities and is among the top 4 in the relevant
PRODUCT PROFILE
This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.
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They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing. Even operations like material handling and transport can be carried out efficiently.
These tough and reliable tractors are designed to perform multiple 44
tasks and take on the rigors of work with ease. These tractors are loaded with a high performance engine, easy shift transmission, advantageous single speed PTO and big lift capacity.
These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing.
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CHAPTER-III
THEORETICAL CONCEPT
Customer satisfaction refers to the extent to which customers are 46
happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeated orders and to use a wide range of services offered by a business. The need to satisfy customer for success in any commercial enterprises is very obvious. The income of all commercial enterprises is derived from the payments received for the products and services to its external customers. Customers are the sole reason for the existence of commercial establishments. Since sales are the most important goal of any commercial enterprise, it becomes necessary to satisfy customers. For customer satisfaction it is necessary to establish and maintain certain important characteristics like: a. Quality b. Fair prices c. Good customer handling skills d. Efficient delivery e. Serious consideration of consumer complaints. Satisfaction is the feeling of pleasure or disappointment attained from comparing a products perceived performance (outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted
7 STEPS TO SATISFY A CUSTOMER

It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to 47
their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved. 1. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale.
2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were 48
working again. They also apologized repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service. 3. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous. 4. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful. 5. Attention to Detail (also known as 'The Little Niceties') 49
Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued. 6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out. Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. Take this as an example: you're working on the front-end for your client's exciting new ecommerce Endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads: "Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several 50
referrals your way. 7. Honor Your Promises It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. Conclusion Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back
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CHAPTER-IV
DATA ANALYSIS & INTERPRETATION

1) Are you a satisfied with Mahindra Tractor? S Options No Of respondents percentage 52
No 1 2 Yes No 85 15 85% 15%
Source: Questionnaire
Interpretation 1: The sample drawn on probability basis shows that 85% of the customers were satisfied with Mahindra tractors and only 15% were not satisfied with Mahindra tractors. Observation: Most of the respondents approached were satisfied with Mahindra tractors.
2) If Yes Which factor you consider is satisfies you most? S.No Options 1 Feature No of Respondents 16 Percentage 16%
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2 3 4
Low maintenance Looks After sales service
69 5 10
69% 5% 10%
Interpretation 2: The sample drawn on the probability basis clearly shows that 69% customers are the opinion that low maintenance is the satisfaction factor Mahindra Tractors, 10% of them who view After Sales Service, 16% respondents of them view that feature of Mahindra Tractors as satisfaction factor. And 5% of the customers are respondent looks of the Mahindra Tractor. Observation: Majority of the respondent are of the idea that low maintenance of the top most feature contributing to customer satisfaction followed by after sales services comfort style and features As such, Mahindra should focus on the aspects, which will enhance the customer satisfaction and thus the market share 3) Customer perception about Mahindra tractors in general?
54
S. no 1 2 3 4
Options Very good Good Average Bad
No of Respondents 12 38 50 0
Percentage 12% 38% 50% 0%
Interpretation 3: Out of 100% of respondents, 38% of the customers of the respondents gave Good response to Mahindra Tractor. 12% of the customers gave Very Good response, 50% of the customers gave Average response and 0% of the customers gave bad response to Mahindra tractors. Observation: According to above diagram most of the customers are respondents as average they satisfied with the Mahindra Tractor, it satisfies that the customer satisfaction levels are very high. If the company were to identify the pitfalls in their product and undertake remedial measure, thus it will lead to more good word of mouth publicity. 4) Are you satisfied with the Safety and Comfort of Tractor?
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S. no 1 2 3 4
Options Extremely satisfied Satisfied Neutral Dissatisfied
Interpretation 4: 100% of the respondents, 51% of the respondents approached was satisfied with the safety and comfort features with the M&M tractors. Followed by 15% was extremely satisfied, 26% of the customers are neutral and rest of the 8% was dissatisfied with safety and comfort feature of Mahindra Tractors. Observation: As majority of the respondents are satisfied with the safety and comfort feature of Mahindra Tractors. The company should maintain the same standard and it is suggested to come up with suitable measure to reduce the negative opinion among the consumer. 5) Are you satisfied with the Design? 56
S. no 1 2 3
Options Satisfied Neutral Dissatisfied
No of Respondents 80 20 0
Percentage 80% 20% 0%
Interpretation 5: 100% of respondents 80% of the respondents approached were satisfied with the Design of the Mahindra Tractors. 20% of them neutral and 0% are dissatisfied with the design of the Mahindra & Mahindra Tractors. Observation: As majority of the respondents are satisfied with the design of Mahindra Tractor, the company should maintain the same standard and it is suggested to come up with suitable measure to reduce the negative opinion among the consumer. 6) Are you satisfied with Maintenance cost?
57
S. no 1 2 3
Options Satisfied Neutral Dissatisfied
No of Respondents 72 22 16
Percentage 72% 22% 16%
Interpretation 6: The sample drawn on the probability basis shows that out of 100% of respondents 72% of the respondents approached were satisfied with the maintenance of the Tractor. 22% of neutral and 16% of the customers is dissatisfied with the maintenance cost of the Mahindra Tractors. Observation: Though majority of the customer are satisfied that the maintenance cost of Mahindra Tractor is less, around 16% are not satisfied which may be because of comparison of Tractor with the newly launched competing brands coming with even lower maintenance cost.
7) Are you satisfy with the fuel consumption of TRACTOR? 58
S. no 1 2 3 4
Options Extremely satisfied Satisfied Neutral Dissatisfied
Interpretation 7: 100% of the respondents 56% of the respondents approached were satisfied with the fuel consumption of the Tractor. Followed by 7% was extremely satisfied, 33% are neutral and rest of the 4% is more dissatisfied with fuel consumption of Tractor. Observation: As majority of the respondents are satisfied with the fuel consumption of Mahindra Tractor, the company should maintain the same standard and it is suggested to come up with suitable measure to reduce the negative opinion among the consumer who are dissatisfied. 8) Are you satisfied with providing two years warranty? 59
S. no 1 2
Options Satisfied Not Satisfied
No of Respondents 75 25
Percentage 75% 25%
If not, how many yeas you required: Source: Questionnaire
Interpretation 8: 100% of the respondents 75% of the customers are satisfied with the two years warranty providing on the Mahindra Tractors. And the rest of the 25% of the customers are not satisfied. Observation: Most of the customers are satisfied with the two years of the warranty of the Mahindra Tractors, as for y advice the company have to find out the customers those who are not satisfying with the two years warranty to decrease the dissatisfaction of the customers.
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9) Are you getting total value of the money with M&M tractor? S. no 1 2 3 4 Options High Value Total Value Somewhat Value Nothing No of Respondents 35 55 10 0 Percentage 35% 55% 10% 0
Interpretation 9: 55% out of the 100% of the respondent customers are getting total value of the Mahindra Tractors, 35% of the respondent people are get the high value of the Tractors. 10% of the customers are getting some what value of the Mahindra Tractors. And according to my survey 0% of the customers are responding nothing on the Mahindra Tractors. Observation: As for the above diagram high percentage of the customers are satisfying with total value of the money of the Mahindra Tractors.
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10) Who influence to purchase M&M tractor? S. no 1 2 3 4 Options Self decision Friends Others Family No of Respondents 15 8 28 49 Percentage 15% 8% 28% 49%
Interpretation 10: From the above chart 49% of the customers are responding that Family Members are influence to buy the Mahindra Tractor. As well as 28% of the customers responding that by motivating other people like a sales executives neighbors. 15% of the customers are responding that they have taken self decision to by a Tractor for their agriculture purpose and commercial purpose. And 8% of the customers are saying that Friends are influence to by the Tractor of the Mahindra Company.
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Observation: I have done my survey on the customers satisfaction at the Zaeerabad region; all the customers are bought the Mahindra Tractors agricommercial purpose.
11) Availability of Spare parts of M&M tractor? S. no Options 1 2 3 Hardly Available Available Easily Available No of Respondents 5 50 45 Percentage 5% 50% 45%
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Interpretation: The availability of the spare parts 50% of the customers are responding that spare parts are available, 45% of the customers are responding easily available spare parts of the Tractors and the less 5% of the customers are responding that spare parts Hardly available. Observation: According to the above chart the availability of the spare parts are less percentage of the people are saying that spare parts are hardly available. My suggestion on the availability of the spare parts of the Mahindra Tractors the company have to satisfy the customers, some of the customers are requesting to open the service centers on the weekends. The spare parts for the Mahindra Tractors is available for every 20 km. for this M&M company make a more contribution to set up this type spare parts net work availability.
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12) Do you want to give any suggestion about any change in the Tractors? Some of the customers have suggested that to change the gearing system from the right side to left side. To maintain the quality of the color Some of the customers suggesting that to fix the horn system on the middle of steering wheel.
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CHAPTER-V
66
FINDINGS
According to my survey, out of 100, responds 31% of the people says neither agree nor disagree about overall service provided by sree krishna Automobiles. Out of 100 respondents 32% of the people moderate about tools & techniques. From the source of field survey, out of 100 respondents 56% of the customers agree with sufficient & genuine spares, According to my survey 60% of the customers says service charge is very high in Mahindra authorized service center. 9% of the respondents are dissatisfied with the delivery of vehicle timings. From the source of field survey nearly 80% of Customers facing the problems of servicing because of service center kept close on Sundays, help full to them, that the service station will opens on Sundays. 67
SUGGSESTIONS
Management should make availability of sufficient tools and techniques and genuine spare parts at all authorized automobile dealer. Management should try to reduce service charges as much as possible. Management should maintain delivery timings and on road break down services. As they promised to their customers. Majority of the customers wants to keep the service station open on Sundays the management should try to provide service and suggestions on Sundays also.
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CONCLUSION
The Mahindra & Mahindra tractors was playing a vital role in tractors segmentation, it is the market leader of the tractors. Mahindra & Mahindra capture the market share of 30% in the tractor segment of automobile industry. Most of the customers will prepare for Mahindra tractors because of. 1. Brand image 2. Fuel Efficiency 3. Availability of spare parts One of the best feature of Mahindra is 15 liters fuel tank Where others could providing 13 liters. M&M providing two years warranty, where other could providing 1 year warranty
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ANNEXURE
Questions to the customers:
1) Are you a satisfied with Mahindra Tractor? Yes No you most?
2) If Yes Which factor you consider is satisfies Feature Looks Low Maintenance after Sales Service
3) Your general perception about Mahindra Tractor? Very Good Average Good Bad
4) Do you satisfied with the Safety and Comfort measures of 70
Mahindra Tractor? Extremely Satisfied Neutral Satisfied Dissatisfied
5) Are you satisfied with the Design? Satisfied Neutral Dissatisfied
6) Do you satisfied with Maintenance cost? Satisfied Neutral Dissatisfied
7) Are you satisfy with the fuel consumption of Mahindra Tractors? Extremely Satisfied Neutral Satisfied Dissatisfied
8) Are you satisfied with providing of two years warranty on Mahindra Tractors? Satisfied Not satisfied
If not, how many yeas require: 9) Are you getting total value of the money with M&M tractor? High Value Total value Nothing
Somewhat Value
10) Who influence to purchase M&M tractor? 71
Self Decision Others Hardly Available Easily Available
Friends Family Members Available
11) Availability of spare parts of M&M tractor?
12) Do you want to give any suggestion about any change in the Tractors?
a) Name: c) Age: e) Address: d) Income:
b) Occupation: g) Modal of the tractor:
BIBLIOGRAPHY
I have done some field work in order to get the data about customer satisfaction by asking some questions to different customers at different service stations. Some data was collected from sree Krishna automobiles Zahirabad. Reference Books: 72
Marketing Management, Philip Kotler 12th edition Market Research, Naresh K. Malhotra Reference websites: www.mahindratractors.co.in www.automobile.com www.google.com
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Customer Satisfaction with Mahindra Tractors

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Customer Satisfaction with Mahindra Tractors

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CHAPTER-1

Customer Satisfaction Strategies Followed By M&M

Customer Relationship Management

METHOD TO MEASURE CUSTOMER SATISFACTION

OBJECTIVES OF THE STUDY

To provide suggestions, in improving the customer satisfaction and

the company sales and profitability.

NEED AND SCOPE OF THE STUDY

PURPOSE OF THE STUDY

DATA COLLECTION TOOLS:

LIMITATION OF THE STUDY

INDIAN AUTOMOBILE INDUSTRY

Tractors manufacture association

Current manufacturers of tractors in India

HISTORY OF THE COMPANY

COMPETITORS MAHINDRA TRACTORS

These tough and reliable tractors are designed to perform multiple 44

7 STEPS TO SATISFY A CUSTOMER

2. Respond to Messages Promptly & Keep Your Clients Informed

DATA ANALYSIS & INTERPRETATION

No 1 2 Yes No 85 15 85% 15%

Low maintenance Looks After sales service

Options Very good Good Average Bad

Percentage 12% 38% 50% 0%

Options Extremely satisfied Satisfied Neutral Dissatisfied

Percentage 15% 51% 26% 8%

Options Satisfied Neutral Dissatisfied

Percentage 80% 20% 0%

Options Satisfied Neutral Dissatisfied

Percentage 72% 22% 16%

7) Are you satisfy with the fuel consumption of TRACTOR? 58

Options Extremely satisfied Satisfied Neutral Dissatisfied

Percentage 7% 56% 33% 4%

Options Satisfied Not Satisfied

Percentage 75% 25%

If not, how many yeas you required: Source: Questionnaire

4) Do you satisfied with the Safety and Comfort measures of 70

Mahindra Tractor? Extremely Satisfied Neutral Satisfied Dissatisfied

5) Are you satisfied with the Design? Satisfied Neutral Dissatisfied

6) Do you satisfied with Maintenance cost? Satisfied Neutral Dissatisfied

10) Who influence to purchase M&M tractor? 71

Self Decision Others Hardly Available Easily Available

Friends Family Members Available

11) Availability of spare parts of M&M tractor?

a) Name: c) Age: e) Address: d) Income:

b) Occupation: g) Modal of the tractor:

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