Project Report on Tata Motors

INDUSTRIAL REPORT ON TATA MOTORS LTD Submitted for partial fulfillment of the requirement for the awards of Degree of Bachelor of Business Administration. (BBA) Submitted By: idance of: Vineet gupta

Under the Gu Prof. Rachna Chawla

Bharati Vidyapeeth University Institute of Management and Research An ISO 90001:2000 Certified institute NAAC Accredited grades A University .

STUDENT DECLARATION I Vineet Gupta hereby declare that the work presented in this project entitled Ta ta Motors Limited submitted towards completion of project in B.B.A at Bharatiya V idyapeeth University Institute of Management and Research, New Delhi, is an auth entic record of my original work carried out under the guidance of Ms. Rachna, P rofessors, BVUIMR, New Delhi. I have not submitted the matter embodied in this project for the award of any ot her degree.

Vineet Gupta

ACKNOWLEDGEMENT The successful completion of the project would have been far from reality withou t mentioning the people who made an indelible impression while making the projec t. All the very outset thanks to Ms. Rachna Chawla for instructing me and providing me the opportunity to participate in the project and sharing her invaluable kno wledge and experience with me. Her innovative ideas provided me clarity of thoug hts, which helped me to think in the right way. Without her help and guidance completion of the project report would have been v ery difficult. I would also like to give gratitude to all the other faculties wh o helped me in making the project worth wile and successful.

I would also like to express my gratitude to Dr. S.S Vernekar [Director], BVIMR, New Delhi for providing all needful facilities in the campus and the best facul ty for the students. Their thoughtful ideas, comments and conceptual insight into the subject kept me from floundering in my quest. Despite their busy schedule they spared valuable moments for reviewing and rectifying this project work. Due to the proper guidance the making of project report became an enjoyable expe rience and easy to workout. Vineet Gupta Certificate This is to certify that the project titled TATA MOTORS Is a benefice work carried out by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & R esearch, University of Pune. It is submitted in partial fulfillment of the requi rement for the award of the Degree of BBA under our guidance and direction. To the best of our Knowledge, it is an original piece of work.

Ms. Rachna Chawla

Certificate This is to certify that the project titled TATA MOTORs Is a bonafide work carried out by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & R esearch, University of Pune. It is submitted in partial fulfillment of the requi rement for the award of the Degree of BBA under our guidance and direction. To the best of our Knowledge, it is an original piece of work.

Director of BVIMR Dr.S.S.Vernekar

INDEX CURRENT INDUSRTRIAL SCENARIO CHAPTER: 1 COMPANY INTRODUCTION

..

9 11

1.1 GROUP INTRODUCTION 1.2: HISTORY OF GROUP 1.3: COMPANY PROFILE 1.4: NATURE OF BUSINESS 1.5 TYPE AND OWNERSHIP PATTERN 1.6: VISION 17: MISSION 1.8: BOARD OF DIRECTORS 1.9: REGISTERED OFFICE 1.10: SUBSIDIARIES

.. .. 12 ... 13 15 17 ... 18 . . 19 ... . 20 . . 21 .... . 21 ... .. 22

CHAPTER 2: PRODUCTS & MARKETING STRATEGY ....24 2.1: BRAND . . ..25 2.2: PRODUCT MIX . 25 2.3: PRODUCTS ... .27 2.4: PRODUCT LINE ... 30 2.5: TARGET CUSTOMER .31 2.6: PRESENCE OF THE COMPANY ... 32 2.7: NUMBER OF BRANCHES .. .33 2.8: DISTRIBUTIONAL CHANNEL COMPETITORS .. .. 2.9: MARKET SHARE . . 34 2.10: POSITIONING . 36 2.11: MARKETING STRATEGIES 37 2.12: ADVERTISEMENT EXPENSES . ..39

...33

CHAPTER 3: FINANCIAL ANALYSIS 40 3.1: STOCK EXCHANGE ON WHICH THE COMPANY IS LISTED .41 3.2: WEIGHT AGE IN INDEX 41 3.3: AUTHORIZED CAPITAL STRUCTURE .. 42 3.4: AUDITORS REPORT 42 3.5: AUDITING COMPANY 44 3.6: BALANCE SHEET ... .44 3.7: PROFIT AND LOSS ACCOUNT .....45 3.8: BALANCE SHEET FOR THREE Year s 47 CHAPTER 4: ORGANIZATION STRUCTURE ..48 4.1: ORGANIZATION STRUCTURE . .. ..49 4.2: EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES 4.3: TRAINING & DEVELOPMENT POLICIES .52 4.4: CONFLICT RESOLUTION MECHANISM .. .55 CHAPTER 5: FACTORY LOCATION 5.1: FACTORY LOCATION

..51

.....56 .. .57

CHAPTER 6: SWOT ANALYSIS OF TATA MOTORS ...58 6.1: STRENGTHS ...59 6.2: WEAKNESSES . . .60 6.3: OPPORTUNITY . . . ..60 6.4: THREAT . 61 MY LEARNINGS FROM THIS PROJECT . .62 BIBLIOGRAPHY ..63

CURRENT INDUSRTRIAL SCENARIO In a matter of few months, things have begun to appear gloomy for the auto compo nents sector. Rapid escalation in steel and iron prices, a key raw material, has literally pushed the players to the wall.

Though OEM customers have been dithering on the issue of price increase, in the current scenario manufacturers and suppliers would have to share the burden of t his price escalation in pig iron and steel, said DGM, Engineering and Business D evelopment, AM Divekar. Component suppliers point out that scrap steel, which wa s available on spot at around Rs 20-22 per kg till about three months back, is n ot available currently even at Rs 30 per kg, either on spot or cash basis. Scrap traders or dealers have been refusing to commit on any medium or long-term comm itment of supplying scrap metals even to their regular customers in anticipation of higher price realisations at a future date. The anticipation of higher price realisation is driving the prices more than any fundamental reasons and even pig iron suppliers are getting on to the bandwagon to take advantage of the situation, said Divekar. In current scenario, he added that players would have to be selective in their supply contracts with OEM cust omers, as it would not make much sense to continue with production and selling a t cost price or even loss. Smaller size foundries with castings and forging capacity of around 10,000 to 40 ,000 metric tonnes are the ones that are particularly badly hit by the metal pri ce increase. The problem is further compounded by the fact that most of these sm aller foundries supply non critical components to OEMs and getting a price hike from customers has been particularly difficult. Though critical component suppliers may not have a major problem in getting the necessary price increase from customers, the situation is clearly tenable and co uld lead to foundries going slow on their production rather than sell at a loss to OEMs, said Senior Manager, Projects at Precision Camshafts, AJ Jain. Precisio n Camshafts manufactures camshafts for passenger cars and tractors and counts Ta ta Motors, Hyundai and M&M among its key customers, in addition to having a majo r presence in the export market. Foundries have no choice but to be selective in terms of customers as they would continue to supply to OEMs willing to give price increase in tune with current market realities and stop supplies to ones that are not responding to the situat ion, said President, Rajkot Engineering Association, Bhaveshbhai Patel who also runs his own foundry Vijay Engineering. Rajkot has an estimated 500 foundries an d most are reeling under the rapid price escalation of steel and scrap/pig iron. Raw material forms around 40 to 60 percent of the total cost for a foundry. Fou ndries vary the percentage of scrap steel and pig iron used for manufacturing ca stings depending on the cost and availability of these inputs. The raw material price escalation has come at a time when foundries dependent on the automotive sector have seen a marked slowdown in all industry segments. Aut omotive sales have registered around seven percent fall in the period April 2007 to March 2008, according to data from the Society of Indian Automobile Manufact urers (SIAM). The unfolding credit crisis also has players on edge of their seat s in terms of continued demand for components from their global customers.

CHAPTER - 1 COMPANY INTRODUCTION

1.1 Group introduction  Jamsetji Nusserwanji Tata (1839 - 1904) was a pioneer of Indian industrialism as well as the founder of the Tata Group. TATA s first step in the business came in December 1859 when his father sends him to hongkong to open a branch with a sum of Rs. 21000. There he makes connections & buyers by the time he started a trading company & established it to the Japan , China, Europe, and the United States. IN 1969 he acquired a bankrupt oil mill in Queen Victoria was proclaimed Empress of India. In year 1868 Jamsetji Tata, started business with name as TATA since than compan y hasn t stop and became a global enterprise. Jamsetji were inspired by the spirit of nationalism which led the foot for the group. The group pioneered€several in dustries of national importance in India: steel, power, hospitality and airlines . In more recent times, the Tata group s pioneering spirit has been showcased by c ompanies like Tata Consultancy Services, India s first software company, with the international delivery model, and Tata Motors, which made India s first indigenous ly developed car, the Indica, in 1998 and recently unveiled the world s lowest-cos t car, the Tata Nano, for commercial launch by end of the financial year 2008-09 . Tata has a rapidly growing business group based in India with significant intern ational operations. Revenues in 2007-08 are estimated€at $62.5 billion (around R s251,543crore), of which 61 per cent is from business outside India. The group e mploys around 350,000 people worldwide. The Tata name has been respected in Indi a for 140 years for its adherence to strong values and business ethics. They hav e n number of companies in India and in collaboration with other foreign compani es Indian Companies: 4. TATA AIRLINE-CIVIL AVIATION well known as the chota nawab. 5. TATA CNSULTANCY

SOFTWARE one of the leading consultancy in the world

They also work for the welfare of the workers as they introduce; EIGHT-HOUR WORKING DAY in 1912. FREE MEDICAL AID in 1915 SCHOOLING FACILITY FOR CHILDREN in 1917 LEAVE WITH PAY WORKERS PF SCHEME in 1920 1.3: COMPANY PROFILE Tata Motors Limited is India s largest automobile company, with revenues of Rs. 35 651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehic les in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company i s the world s fourth largest truck manufacturer, and the world s second largest bus

manufacturer. The company s 23,000 employees are guided by the vision to be best in the manner in which we operate best in the products we deliver and best in our value system and ethics. Established in 1945, Tata Motors presence indeed cuts across the length and bread th of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Tata Motors, the first company from India s engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate compa nies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Amo ng them is Jaguar Land Rover, a business comprising the two iconic British brand s that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea s second largest truck maker. The rechristened Tata Daewoo C ommercial Vehicles Company has launched several new products in the Korean marke t, while also exporting these products to several international markets. Today t wo-thirds of heavy commercial vehicle exports out of South Korea are from Tata D aewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spani sh bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano s presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India an d select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and m arket the company s pickup vehicles in Thailand. The new plant of Tata Motors (Tha iland) has begun production of the Xenon pickup truck, with the Xenon having bee n launched in Thailand at the Bangkok Motor Show 2008. Tata Motors is also expanding its international footprint, established through e xports since 1961. The company s commercial and passenger vehicles are already bei ng marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly ope rations in Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the company s growth over the last 50 years is a deep understand ing of economic stimuli and customer needs, and the ability to translate them in to customer-desired offerings through leading edge R&D. With over 2,500 engineer s and scientists, the company s Engineering Research Centre, established in 1966, and has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and t he UK. It was Tata Motors, which developed the first indigenously developed Ligh t Commercial Vehicle, India s first Sports Utility Vehicle and, in 1998, the Tata Indica, India s first fully indigenous passenger car. Within two years of launch, Tata Indica became India s largest selling car in its segment. In 2005, Tata Motor s created a new segment by launching the Tata Ace, India s first indigenously deve loped mini-truck In January 2008, Tata Motors unveiled its People s Car, the Tata Nano, which India and the world have been looking forward to. A development, which signifies a fi rst for the global automobile industry, the Nano brings the comfort and safety o f a car within the reach of thousands of families. When launched in India later in 2008, the car will be available in both standard and deluxe versions. The sta ndard version has been priced at Rs.100,000 (excluding VAT and transportation co st). The years to come will see the introduction of several other innovative vehicles , all rooted in emerging customer needs. Besides product development, R&D is als o focussing on environment-friendly technologies in emissions and alternative fu els. Through its subsidiaries, the company is engaged in engineering and automotive s olutions, construction equipment manufacturing, automotive vehicle components ma nufacturing and supply chain activities, machine tools and factory automation so lutions, high-precision tooling and plastic and electronic components for automo tive and computer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and

spirit to Corporate Social Responsibility. It is a signatory to the United Natio ns Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compac t. In accordance with this, it plays an active role in community development, se rving rural communities adjacent to its manufacturing locations. 1.4 NATURE OF BUSINESS As it was established in 1945 its main business is to manufacture locomotive. Th e company manufactured its first commercial vehicle in 1954 in collaboration wit h "Benz AG. It is a global firms & one of the largest producer of CV & PV in comp etitive world. As it has the heavy raw material consumption in heavy quantity fo r producing heavy vehicles such as cars , trucks , mini trucks , railway coaches etc. It is India s top & leading manufactures of the vehicles. It is listed in th e top four commercial vehicle producer in the world. Its numerous joint ventures are going with different organizations across the world with DAEWOO & FORD so o n. There after they have produced numerous pro ducts in both commercial as well as in the passenger section. the company is als o engaged in engineering and automotive solutions, construction equipment manufa cturing, automotive vehicle components manufacturing and supply chain activities , machine tools and factory automation solutions, high-precision tooling and pla stic and electronic components for automotive and computer applications, and aut omotive retailing and service operations. In 2008, Tata Motors unveiled its People s Car, the Tata Nano, which India and th e world have been awaiting. A development, which signifies a first for the globa l automobile industry, the Nano brings the comfort and safety of a car within th e reach of thousands of families. In India, the car will be available in both st andard and deluxe versions. The standard version has been priced at Rs.100, 000. Tata Motors is committed in letter and spirit to Corporate Social Responsibility . It is a signatory to the United Nations Global Compact, and is engaged in comm unity and social initiatives on labour and environment standards in compliance w ith the principles of the Global Compact. In accordance with this, it plays an a ctive role in community development, serving rural communities adjacent to its m anufacturing locations. As all the Tata group companies are. 1.5 TYPE AND OWNERSHIP PATTERN TYPE OF THE COMPANY: Tata motor is a ompany holding is in the hands of the financial e is with the Tata sons. OWNERSHIP PATTERN: Tata Companies 33.42 % Daimler Chrysler 6.64 % MFs / Banks 15.97 % ADR/GDR Holders / Foreign Institutional Investors 16.96 % Other 14.08 %

public limited company. As 69% c institutions and around 31% stak Indian Financial Institutions / holders DR status 12.72 % Foreign Total 100.00 % 1.6 VISION

This year we will also be focusing on expanding our business internationally . This will demand that our products and services are globally competitive and that ou r enterprises operate to international standards in terms of quality and custome r service. We will need to be extremely aggressive in the marketplace and much m ore proactive than we have been in the past in order to be leaders in our fields of business. We need a change of mindsets that break with past tradition in wel coming rather than resisting change.

Become a globally networked enterprise seizing opportunities worldwide to genera te USD 25 million annual profits by 2008. Description of Vision

Achieved aggressive and profitable growth of business. Become a cohesive, integrated and synergized global entity providing horizontal and vertical reach and infrastructure to all our partners worldwide. Consistently achieved customer delight by focusing on value adding activities th roughout our value chain. Achieved best partner status with Group Companies in international business on a sustained basis. A strong global supply base for world class VEHICLES. Become a learning and knowledge rich organization acknowledged as thought leader s in international business. Institutionalized Tata Business Excellence Model and achieved best in class stat us. Become an exciting organization, which attracts and retains best talent worldwid e for global competitiveness. Become a proactive, integral and responsible member of our environment and commu nities. MISSION To be a competitive value provider in international business for Group companies and all our partners. Improve the quality of life of the communities. We serve through leader s ship in the sector of national economic significance. Tata Motors constantly looks for ways to offer the customer the best value for mo ney. Beginning with a single truck model way back in the 1950s, today we have ov er 150 models and variants of vehicles, designed to transport goods and passenge rs. Our commercial vehicles can haul loads ranging from 2 tonnes to 40 tonnes. L ikewise we have mini buses that can seat 12 people and buses that can accommodat e as many as 60. Tippers, Tractor-trailers, 4x4 off road vehicles, multi-utility vehicles-our range are vast. A significant breakthrough has been the developmen t and commercialization of the truly Indian cars- Tata Indica and Tata Indigo. Our vehicles are capable of meeting stringent Euro norms. And we have been able to do so by using technology, which is environmentally sustainable. 1.8

BOARD OF DIRECTORS

1. Mr.Ratan N Tata (Chairman) 2. MR. N A Soonawala 3. Dr. J J Irani 4. Mr. V R Mehta 5. Mr. Gopalakrishnan 6. Mr. Nusli N Wadia 7. Mr. S M Palia 8. Dr. R A Mashelkar 9. Mr. Nasser Munjee 10. Mr. Subodh Bhargava 11. Mr. Ravi Kant (Managing Director) 12. Mr. P M Telang (Executive Director (Commercial Vehicles) 1.9 REGISTERED OFFICE Tata Motors has its registered offices in Mumbai, India. Its address is: Is Bombay House, 24 Homi mody Street, Maharashtra, Mumbai 400001 1.10 SUBSIDIARIES Telco Construction Equipment (TCE) ltd-adr" \t "_top" Hitachi, which focuses on excavators and other construction equ ipment.

Telcon currently ranks among the top 40 Global Construction Equipment OEMs at th e 38th position. It was at the 47th position last year. Telcon volume sales registered 44% growth; from 5,360 units in FY07 to 7,698 uni ts in FY08. Telcon continues to be the market leader in excavator segment with a share of 53 %. Market share in wheel loaders and backhoe loaders improved from 10% to 11.5%. Several new products were launched by Telcon during the year such as Hitachi s ZAX IS 50U, a 5 Tonne Mini Excavator which is India s first zero tail swing Excavator, Hitachi ZW 220 Wheel Loader, which has many path breaking features that are set to redefine customer expectations from wheel loaders. TELCON is setting up a new State-of-the-Art Manufacturing Facility, Research and Development Centre. a Training School at Kharagpur in India . Tata Technologies Limited (TTL) TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91% of TTL s share capital. TTL is based in Pune (Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detro it and London respectively. It also has a presence in Thailand. Tata Technologie s is a software service provider in the IT services and BPO space. Its global cl ient list includes Ford, General Motors, Toyota and Honda, to name a few. It bou ght over the British engineering and design services company, Incat Internationa l Plc for Rs4b in August 2005. Incat specializes in engineering & design service s and product lifecycle management in the international automotive, aerospace an d engineering markets. With this acquisition, Tata Motors will have closer proxi mity to its global customers and be able to provide a wider range of services. Tata Daewoo CV (TDCV) TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acq uired in March 2004. TDCV is in the business of manufacture and sale of heavy co mmercial vehicles. Tata Daewoo is Tata Motors 100% subsidiary in Korea, with a ma rket share of 30%.Tata Motors will use the Daewoo technology to introduce higher tonnage trucks in the Indian market and use Tata Daewoo for exports globally. I n line with this strategy, it has already introduced the Novus, a high-end tippe r developed by Tata Daewoo for the Indian market.

CHAPTER - 2 PRODUCTS &

MARKETING STRATEGIES

2.1 BRAND Tata Motors is the brand which concentrates on every kind of customer. It s the brand of every one. It is best in compact as well as sedan and SUV cars. It s a brand due to its superior quality, low running cost, high comfort, low main tenance cost. Its commercial vehicle is the best among the other entire brand pr esent in the market. Some of the brands are the leading market capturer and won many awards for their distinct feature and quality. As the Tata Indica is the se cond largest selling car in India for successive years and in CV sector there is no matching in India of it. Some of the other brands are INDICA VISTA, INDIGO X , FIAT CAR 2.2: PRODUCT MIX PRODUCT MIX mainly comprises of how many types of product a company produces Breadth - the number of product lines carried. Depth - the variety of sizes, colors, and models offered within each product lin e. Tata motors has wide range of products in Indian and overseas market. In India T ata is the largest seller of both commercial sectors as well as in passenger one . As the company produces vehicles mainly in three segments they are; Passenger segment Commercial segment Military segment. First we highlighted the PV sector or Passenger vehicle. Passenger sector Tata Motors has N number of PV cars in the automobile market both in INDIA and A BROAD. They have designed the cars with the view of NEED, PREFRENCES, and how mu ch their pocket allow them to spend on cars, SO Tata s have every type of customer from lower middle to upper middle class which comprises half of Indian market. Tata has also purchased LAND ROVER and JAGUAR as to step in the luxury car marke t. Although the sales of cars has decreased continuously, due to economic slow down in the financial year 2008 but the sale s level is increasing at a decreased rate from last year results. Company also w orking on number of concept cars and NANO is one of them. It is the cheapest car ever made in the world at this level of production. It is stylish, good in perf ormance, has all the effective features and more over its price is ONE LAKH RUPE E in Indian currency. Next on the commercial sector; Commercial sector Tata motor is 4th largest producer of commercial vehicle in the world and it is the top most producers in Indian market. It has over 60% market share among the entire competitor. But its market share in abroad is less than 8% as it is on e the new or emerging brand. Though the economic slow down has affected the sales

volumes but hasn t a dramatic effect on is. Its condition is better than the PV sa les volumes. About product Tata motors changes their product with the change in the need of the customer, they are now emphasizing on the small trucks or the medium size trucks that can be used on daily bases and easy to drive, park and won t require to much space. In bus segment Tata has intro duce luxury buses for long tour purposes and for business uses. Some of them are , Last one military sector; Military vehicles Tata motors also manufacture military vehicles in India for Indian armed forces. Such as military trucks, jeeps, etc 2.3 PRODUCTS Tata motors has wide range of products in Indian and overseas market. In India T ata is the largest seller of commercial sectors & in passenger one has a market share of around 13%. As the company produces vehicles mainly in, Passenger Segment, Commercial Segment & Military Segment PASSENGER SEGMENT (PV) Some the brand names are here,

PASSENGER CARS INDICA VISTA INDIGO XL NANO FIAT CAR UTILITY VEHICALES SAFARI DICOR SUMO GRANDE SUMO XEMON XT

COMMERCIAL SEGMENT(CV) Tata Motors currently has Trucks and Buses in the automobile market. 

 Tata 407 Tata 709

Tata 809 Tata 1109 1510/1512 Tata 1610/1616 Tata 1613/1615 Tata 2515/2516 Tata Starbus Tata Globus Tata 3118 MILLITARY SEGMENT Tata Motors currently has 8 Military Vehicles in the military segment. Tata Tata Tata Tata Tata Tata Tata Tata

LSV 407 Troop Carrier LPTA 713 TC LPT 709 E SD 1015 TC LPTA 1615 TC LPTA 1621 TC LPTA 1615

2.4: PRODUCT LINE In product mix there are different products but in product line there is classif ication of one product on basis of color, accessories etc. A product line is a broad group of products, intended for similar uses and havin g similar characteristics. As Tata Motors deals in cars, trucks, Buses but here we are talking about Tata M otors which produces cars so its product line will be differentiated on the basi s of the size or class of the car, as a compact car, sedan, Muv, Suv. Because th ere are no other type of products so its product mix and product line will be al most same. The most recent inclusion in Tata is the world famous car NANO. It is included i n the list because of its price as it is the cheapest car in the world and provi des all the facilities which a car needed. Tata has launched NANO in India in 20 08, with its four models. The standard model is the cheapest one of one lakh (ex clusion of all taxes). In case of cars the Product Line will include different colors of a car, facilit y provided, accessories of the car. Like, in case of Tata, It comes in various colors. Like white, blue, red, black, etc. It has variance on basis of accessories provided like 1. Power steering, 2. Stereo, 3. Leather Seats etc. It has deviation on basis of engine. Like diesel, petrol, etc. 2.5: TARGET CUSTOMER Tata Motors has every kind of customer from lower middle to upper middle class w hich comprises of more than half of Indian automobile market. Tata Motors focuses on every customer as it is customer loyal brand it has produ

cts like, Tata Indica, Tata Marina which are cars simple but trendy cars for lower income group people. Tata Indigo is big size cars which are high performance, luxury cars. Tata safari, sumo, Vista is some Muv which is trendy, stylish and powerful. Tata Motors has a future planning to capture whole rural market, because they sa y no other brand focuses on that huge part of market and it will be an opportuni ty on our part to satisfy their emerging needs of automotive products. So it s very difficult to classify target customer for Tata Motor because they are modifying their products and company and are inventing new products to capture whole automobile market and each and every customer. PRESENCE OF THE COMPANY Tata motors established in 1945 and thereafter it has developed in different cou ntries like Japan, China, Europe, the United States, UK, Britain, Middle East As ia and south east.  SHAPE \* MERGEFORMAT  NUMBER OF BRANCHES It will not be false to say that Tata Motors is present in INDIA because it has its 29 regional sales centre, 1450 dealers, 500 independent dealer outlets, 2000authorized service centers At those place where other competitors don t have. 2.8

Distributional Channel Competitors

TATA MOTORS has about 19 distributors and over 1000 authorized retailer outlet b ut it is continuously trying to develop a better or correcting by making it bett er to cut down the complaint about the none availability of auto parts easily, s ervice centers, Original spare parts and so. Therefore they take some steps to c orrect out the deficiencies of its distributional channel in comparison its comp etitors. Strengthening the Distribution Channel They are co nstantly trying to make their distribution channel as widespread as possible and ensure that Tata Genuine Spare Parts are easily available. Distributors and authorized retailers: To identify authorized retailers, look for: €Tata Motors Glow Sign Boards displayed outside Retailer authorization certificate with customer code and name of authorized dis tributor. Retailer Authorization Certificate: Look for Tata M otors glow sign boards prominently displayed outside the authorized retail outle ts Retailer Authorization Certificate: Displayed by every Authorized Retailer in his shop bearing his customer code and name of Authorize d Distributor. Retailers Directory: To assist their customers in locat ing authorized retail outlets, they have published the retailer s directory, a fir st of its kind by any vehicle manufacturer in India. 2.9: MARKET SHARE Tata motors have a wide variety of products in different ranges for each section of society. There fore it is difficult to maintain the same share of each secto

r or for each product. But in case of Tata motors they are maintaining the progr essive rate with large variety in each section of its products in CV as well as PV sector. They have over 60% market share in CV sector and 12.66% in PV sector. The market share of Tata in recent p ast is shown in graphical form with the comparison with its competitive firms in last few financial years.  The tabular formation shows the competitive ratio s of Tata with its competitors i n PV SECTOR Indian Passenger Vehicle Market Competitive Scenario € MARUTI€ TATA€ HYUNDAI€ MAHINDRA€ TOYOTA€ HONDA€ Passenger Cars 52% 17% 19% - 1% 5% Utility Vehicles 2% 18% 1% 42% 21% 1% 4TH LARGEST VEHICALE IN ASIA The tabular formation shows the competitive ratio s of Tata with its competitors i n CV SECTOR. € TATA ASHOK LEYLAND €MAHINDRA € EICHER € FORCE SWARAZ MAZADA Medium & Heavy CV - Trucks 64% 24% 8% - 3% Buses L, M & HCV 40% 30% 7% 5% 10% 6% Light & Small Comm Veh Trucks 59%