July 23, 2017 | Author: sourabhhanumanji | Category: Motor Vehicle, Automobiles, Vehicles, Automotive Industry, Wheeled Vehicles
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GROUP MEMBERS( GROUP 8) (in the order of roll nos.) • • • • • • •


The Road Ahead…………… • • • • •

Phase 1 – Entry into passenger vehicle Phase 2 – Launch of Indica Phase 3 – Launch of Indica V2 Phase 4 – New Launches Phase 5 – Tata’s Ambitious Project

THE ROAD AHEAD……PAST • Introduction and History of Tata motors • PHASE 1 Entry of Tata Motors from Commercial vehicles To Passenger vehicles segment

Automotive Industry • 50’s -80’s closed market, dominant player being Hindustan Motors Ltd. and Premier Auto Ltd. • In 1982- Maruti-Suzuki tie up • In 1983- Maruti 800 was introduced • From 83-93, Maruti 800 had monopoly • With 92’s liberalization policy,50% FDI was allowed.

Automotive Industry (Contd:) • TELCO entered the passenger car market, introducing three multi-utility vehicles, "Tata Estate" and "Tata Sierra" in 1991-92 and "Tata Sumo" in 1995-96. • Even after liberalization, Maruti was a dominant player in smaller passenger car segment.

Maruti’s dominance in market:

THE ROAD AHEAD……PAST • PHASE 2 Entry into the compact Car segment with Launch of India’s first indigenously developed car INDICA

INDIA • India Satellites into space, but no indigenous car • TELCO’s initiative

Basic Concepts of new Car • • • • • •

Space Easy entry and exit Safety Economy of diesel Price Contemporary design

 TELCO’s low cost, $400 mn Vs.$2 bn  Purchase of Nissan plant

PLAYERS IN THE COMPACT SEGMENT • Maruti Udyog Ltd. Zen, WagonR • Hyundai motors India Ltd. Santro • Daewoo Motors India Ltd. Matiz • Fiat India Automobiles Pvt. Ltd. Uno

MARKET SHARE Market shares till 1998 Matiz 15%

Uno 6%

Maruti Santro Maruti 57%

Santro 22%

Matiz Uno

Market shares after Indica launch, Dec. '99 Indica 18% Uno 7% Matiz 12%

Maruti 36%

Santro 27%

Maruti Santro Matiz Uno Indica

THE ROAD AHEAD……PAST • PHASE 3 Failure of Indica and Subsequent launch and Success of Tata Indica V2.

INDICA: India’s Car, India’s Pride • A car exclusively for the middle class Indian. • A car designed for India rather than a car adapted for India • More car, per car • Value for money • Pre launch promotions and brand building exercises “We give you value for your money. Coming up shortly, so wait for it…”

Sales…. • First Year – 55758 cars • Cumulative sales for Indica were growing by 37% • Target Audience – Middle class family man – Young working Executive

• Loyalty Programme – Indica Club

Openness to Problem-Solving • Tremendous hype because market leader in other products • Different set of customers with a different set of requirements • Problems – Uneven tire wear, belt noise • Rectified the technical glitches • Extended the warranty period • Modifications at the production end

Openness to Problem-Solving • Mid 2000 – More Complications • Tackled – Improved version launched • Version – Indica V2

Power &Technology -Indica V2 • Buried the truck building mentality • “Very soft” or “hard” suspension. • Deluxe Goods give as standardised features • Marketing Jargon

Branding The V2 • • • • •

Only announcements ads Highlight the improvements Feature Specific Titan watches Indica club

Branding The V2 ….contd • • • •

Asha Bhosale and Daler Mehndi Newsletters Dealer panels and Customer meets Independent Customer Satisfaction Surveys • 390 problems per 100 vehicles to 273 problems per 100 vehicles

Changes in Business Policies • Change in the top management • Working Capital mgt • Quality Initiatives for Clear and visible results

Changes in Business Policies • • • •

Gearing up with CRM Getting the right systems Customer’s Safety First Partnering Again


Present Sales Figures– Tata Motors 2005-06



454345(tot inc 399566 exports ) 56406 (march – 44432 cumulative) 6508 (exports) 3964


22609 (PV -march)



27% 64.2%

Present Sales Figures– Automotive Industry •12 percent growth overall •31.55 percent growth in exports

New Launches—Tata Novus

New launches– Tata Safari DiCOR

New Launches – Tata Ace

CHANGES IN TATA OUTLOOK • Focus on the youth • Car changed to make it more zippy with good mileage • More focus on CRM • Focus on women consumers • International look and feel

THE ROAD AHEAD…… FUTURE • PHASE 5 Tata’s 1 Lakh Car • Ratan Tata’s Statement "It is my dream to make the car a reality within the five years I remain as Tata chairman."


PORTER ANALYSIS • New entrants : Bajaj ,TVS Motors • Substitutes – quadricycles • Competitors – Skoda, Maruti, Hyundai,GM,Reva • Distributors – New Distribution network • Suppliers – Supply chain


Car Features • • • •

Car bigger than Maruti 800 Engine lighter 5 seat, rear engine vehicle Positioned between two wheeler and Maruti 800 • Targeting the two wheeler segment, with a small pie from Maruti 800

Proposed Innovations • Bolted or glued panels instead of welded bodies • Small satellite units instead of Dealers

Changes in Business Policy • At present , adopt technology, develop a product and then improve upon it • 1 lakh car will be a System, in which Tata will be a systems integrator. Tata will develop the System and co – manufacture the Product.

Changes in Business Policy… • At Present, Tata manufactures a product and the pricing is then set accordingly • Now, the price for the car as well as all its components being fixed, the manufacturing is then looked upon

Change in TATA Outlook • • • •

Tie up with local manufacturers Rural training – rural employment Focus on two wheeler segment buyers Car design, technology outsourced

Plant Location to minimize costs • • • •

Plant location – West Bengal Tata Steel and Tata Metaliks also in WB Plant Location – Jamshedpur Good auto components base, Tata HCV and LCV manufacturing base present • Plant location – Uttaranchal • Site for hugely successful ACE, offers significant excise relief

Competitor responses to the 1 lakh car • Maruti – Mr. Khattar – not possible to sell at the quoted price • Maruti 800 sales rebound this March • Flank 800 against 1 lakh car with price cut+ cut in excise duty • Hyundai– will compromise on safety, emission norms etc • Bajaj – we can make better car

Thank You

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