MANAGEMENT THESIS

ON

ldquoRepositioning Strategy of Tata Motors and its acceptance level in customer

A study in Rourkela Marketrdquo

By

(PRANAB MISHRA)

MBA 2008-2010

MANAGEMENT THESIS

ON

ldquoRepositioning Strategy of Tata Motors and its acceptance level in customer

A study in Rourkela Marketrdquo

By

(PRANAB MISHRA)

(INC Rourkela)

A report submitted in partial fulfillment ofthe requirements of

THE MBA PROGRAM (The Class of 2010)

DECLARATION

CERTIFICATE

This is to certify that the Management Thesis titled ldquoRepositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Marketrdquo submitted during Semester (IV) of the MBA Program (The Class of 2010) embodies original work done by me

Signature of the Student

Name (in Capitals) PRANAB MISHRA

Enroll Number 8NBRU032

Campus INC ROURKELA

Signature of the Faculty Supervisor

Name (in Capitals) MRS ASMITA JHA

Designation HR FACULTY

Campus INC ROURKELA

TABLE OF CONTENTS

1 Acknowledgements

2 Introduction

3 Objectives

4 Limitations

5 Research Methodology

6 Results and analysis

7 Findings

8 Conclusions

9 Appendices

10 References

ACKNOWLEDGEMENTS

Any accomplishment requires the effort of many people and this work is not different I am thankful to my faculty supervisor Mrs Asmita Jha for supporting me and guiding me throughout the project This report would not have been possible without her help I would also like to express my gratitude towards Mr Bishan Singh INDERA MOTORS Rourkela for his cooperation and giving his valuable time and information for my thesis preparation

I am equally thankful to the Principal INC Rourkela Mr D P Das for encouraging me and inspiring me to do my project with full dedication

PRANAB MISHRA

INTRODUCTION

The rapid pace of change and intense competitive pressure in todays marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position In this context brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning Biel for example has defined brand positioning as building (or rebuilding) an image for a brand The goal of positioning and repositioning strategies relates to the management of consumers perceptions However positioning focuses on the creation of brand associations - consumers perceptions of the attributes that differentiate the brand from competitive offers ndash while repositioning also implies managing existing brand associations The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment while honoring the brand equity heritage

Repositioning can be required as the market changes and new opportunities occur Through repositioning the company can reach customers they not intended to reach in the first place If a brand has been established at the market for some time and wish to change their image they can consider repositioning although one of the hardest actions in marketing is to reposition a familiar brand

According to Solomon position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made The ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand During repositioning the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand But in some circumstances a repositioning is necessary to gain credibility if the brand is eroded Whenever a reposition is in question it has to be of relevance from a customer perspective is this achievable Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

MANAGEMENT THESIS

ON

ldquoRepositioning Strategy of Tata Motors and its acceptance level in customer

A study in Rourkela Marketrdquo

By

(PRANAB MISHRA)

(INC Rourkela)

A report submitted in partial fulfillment ofthe requirements of

THE MBA PROGRAM (The Class of 2010)

DECLARATION

CERTIFICATE

This is to certify that the Management Thesis titled ldquoRepositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Marketrdquo submitted during Semester (IV) of the MBA Program (The Class of 2010) embodies original work done by me

Signature of the Student

Name (in Capitals) PRANAB MISHRA

Enroll Number 8NBRU032

Campus INC ROURKELA

Signature of the Faculty Supervisor

Name (in Capitals) MRS ASMITA JHA

Designation HR FACULTY

Campus INC ROURKELA

TABLE OF CONTENTS

1 Acknowledgements

2 Introduction

3 Objectives

4 Limitations

5 Research Methodology

6 Results and analysis

7 Findings

8 Conclusions

9 Appendices

10 References

ACKNOWLEDGEMENTS

Any accomplishment requires the effort of many people and this work is not different I am thankful to my faculty supervisor Mrs Asmita Jha for supporting me and guiding me throughout the project This report would not have been possible without her help I would also like to express my gratitude towards Mr Bishan Singh INDERA MOTORS Rourkela for his cooperation and giving his valuable time and information for my thesis preparation

I am equally thankful to the Principal INC Rourkela Mr D P Das for encouraging me and inspiring me to do my project with full dedication

PRANAB MISHRA

INTRODUCTION

The rapid pace of change and intense competitive pressure in todays marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position In this context brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning Biel for example has defined brand positioning as building (or rebuilding) an image for a brand The goal of positioning and repositioning strategies relates to the management of consumers perceptions However positioning focuses on the creation of brand associations - consumers perceptions of the attributes that differentiate the brand from competitive offers ndash while repositioning also implies managing existing brand associations The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment while honoring the brand equity heritage

Repositioning can be required as the market changes and new opportunities occur Through repositioning the company can reach customers they not intended to reach in the first place If a brand has been established at the market for some time and wish to change their image they can consider repositioning although one of the hardest actions in marketing is to reposition a familiar brand

According to Solomon position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made The ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand During repositioning the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand But in some circumstances a repositioning is necessary to gain credibility if the brand is eroded Whenever a reposition is in question it has to be of relevance from a customer perspective is this achievable Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

DECLARATION

CERTIFICATE

This is to certify that the Management Thesis titled ldquoRepositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Marketrdquo submitted during Semester (IV) of the MBA Program (The Class of 2010) embodies original work done by me

Signature of the Student

Name (in Capitals) PRANAB MISHRA

Enroll Number 8NBRU032

Campus INC ROURKELA

Signature of the Faculty Supervisor

Name (in Capitals) MRS ASMITA JHA

Designation HR FACULTY

Campus INC ROURKELA

TABLE OF CONTENTS

1 Acknowledgements

2 Introduction

3 Objectives

4 Limitations

5 Research Methodology

6 Results and analysis

7 Findings

8 Conclusions

9 Appendices

10 References

ACKNOWLEDGEMENTS

Any accomplishment requires the effort of many people and this work is not different I am thankful to my faculty supervisor Mrs Asmita Jha for supporting me and guiding me throughout the project This report would not have been possible without her help I would also like to express my gratitude towards Mr Bishan Singh INDERA MOTORS Rourkela for his cooperation and giving his valuable time and information for my thesis preparation

I am equally thankful to the Principal INC Rourkela Mr D P Das for encouraging me and inspiring me to do my project with full dedication

PRANAB MISHRA

INTRODUCTION

The rapid pace of change and intense competitive pressure in todays marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position In this context brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning Biel for example has defined brand positioning as building (or rebuilding) an image for a brand The goal of positioning and repositioning strategies relates to the management of consumers perceptions However positioning focuses on the creation of brand associations - consumers perceptions of the attributes that differentiate the brand from competitive offers ndash while repositioning also implies managing existing brand associations The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment while honoring the brand equity heritage

Repositioning can be required as the market changes and new opportunities occur Through repositioning the company can reach customers they not intended to reach in the first place If a brand has been established at the market for some time and wish to change their image they can consider repositioning although one of the hardest actions in marketing is to reposition a familiar brand

According to Solomon position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made The ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand During repositioning the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand But in some circumstances a repositioning is necessary to gain credibility if the brand is eroded Whenever a reposition is in question it has to be of relevance from a customer perspective is this achievable Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

TABLE OF CONTENTS

1 Acknowledgements

2 Introduction

3 Objectives

4 Limitations

5 Research Methodology

6 Results and analysis

7 Findings

8 Conclusions

9 Appendices

10 References

ACKNOWLEDGEMENTS

Any accomplishment requires the effort of many people and this work is not different I am thankful to my faculty supervisor Mrs Asmita Jha for supporting me and guiding me throughout the project This report would not have been possible without her help I would also like to express my gratitude towards Mr Bishan Singh INDERA MOTORS Rourkela for his cooperation and giving his valuable time and information for my thesis preparation

I am equally thankful to the Principal INC Rourkela Mr D P Das for encouraging me and inspiring me to do my project with full dedication

PRANAB MISHRA

INTRODUCTION

The rapid pace of change and intense competitive pressure in todays marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position In this context brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning Biel for example has defined brand positioning as building (or rebuilding) an image for a brand The goal of positioning and repositioning strategies relates to the management of consumers perceptions However positioning focuses on the creation of brand associations - consumers perceptions of the attributes that differentiate the brand from competitive offers ndash while repositioning also implies managing existing brand associations The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment while honoring the brand equity heritage

Repositioning can be required as the market changes and new opportunities occur Through repositioning the company can reach customers they not intended to reach in the first place If a brand has been established at the market for some time and wish to change their image they can consider repositioning although one of the hardest actions in marketing is to reposition a familiar brand

According to Solomon position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made The ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand During repositioning the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand But in some circumstances a repositioning is necessary to gain credibility if the brand is eroded Whenever a reposition is in question it has to be of relevance from a customer perspective is this achievable Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

ACKNOWLEDGEMENTS

Any accomplishment requires the effort of many people and this work is not different I am thankful to my faculty supervisor Mrs Asmita Jha for supporting me and guiding me throughout the project This report would not have been possible without her help I would also like to express my gratitude towards Mr Bishan Singh INDERA MOTORS Rourkela for his cooperation and giving his valuable time and information for my thesis preparation

I am equally thankful to the Principal INC Rourkela Mr D P Das for encouraging me and inspiring me to do my project with full dedication

PRANAB MISHRA

INTRODUCTION

The rapid pace of change and intense competitive pressure in todays marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position In this context brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning Biel for example has defined brand positioning as building (or rebuilding) an image for a brand The goal of positioning and repositioning strategies relates to the management of consumers perceptions However positioning focuses on the creation of brand associations - consumers perceptions of the attributes that differentiate the brand from competitive offers ndash while repositioning also implies managing existing brand associations The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment while honoring the brand equity heritage

Repositioning can be required as the market changes and new opportunities occur Through repositioning the company can reach customers they not intended to reach in the first place If a brand has been established at the market for some time and wish to change their image they can consider repositioning although one of the hardest actions in marketing is to reposition a familiar brand

According to Solomon position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made The ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand During repositioning the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand But in some circumstances a repositioning is necessary to gain credibility if the brand is eroded Whenever a reposition is in question it has to be of relevance from a customer perspective is this achievable Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

INTRODUCTION

The rapid pace of change and intense competitive pressure in todays marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position In this context brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning Biel for example has defined brand positioning as building (or rebuilding) an image for a brand The goal of positioning and repositioning strategies relates to the management of consumers perceptions However positioning focuses on the creation of brand associations - consumers perceptions of the attributes that differentiate the brand from competitive offers ndash while repositioning also implies managing existing brand associations The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment while honoring the brand equity heritage

Repositioning can be required as the market changes and new opportunities occur Through repositioning the company can reach customers they not intended to reach in the first place If a brand has been established at the market for some time and wish to change their image they can consider repositioning although one of the hardest actions in marketing is to reposition a familiar brand

According to Solomon position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made The ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand During repositioning the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand But in some circumstances a repositioning is necessary to gain credibility if the brand is eroded Whenever a reposition is in question it has to be of relevance from a customer perspective is this achievable Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic For example while the soft drink brand Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence Levis Jeans has been losing market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand as trendy

The strategic importance of brand repositioning in preserving and enhancing brand equity coupled with the mixed results of repositioning attempts underscores the need to develop a better understanding of the dynamics of brand repositioning Specifically questions of whether when and how brands should be repositioned need to be addressed Research into brand repositioning is relevant not only to the development of brand management theory but also extends to corporate strategy through an examination of corporate brands

Indian Automobile Industry

The automotive industry in India grew at a computed annual growth rate (CAGR) of 115 percent over the past five years the Economic Survey 2008-09 tabled in parliament on 2nd Julyrsquo09 said

The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy a finance ministry statement said

The automobile industry which was plagued by the economic downturn amidst a credit crisis managed a growth of 07 percent in 2008-09 with passenger car sales registering 131 percent growth while the commercial vehicles segment slumped 217 percent

Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest MampM Xylo The industry is highly competitive with a number of global and Indian companies present today It is projected to be the third largest auto industry by 2030 and just behind to US amp China according to a report The industry is estimated to be a US$ 34 billion industry

Indian Automobile industry can be divided into three segments ie two wheeler three wheeler amp four wheeler segment The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda Bajaj Auto Honda Motors TVS Motors and Suzuki etc Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country And India is considered as strategic market by Suzuki Yamaha etc Commercial Vehicle market is catered by players like Tata Motors Ashok Leyland Volvo Force Motors Eicher Motors etc

The major players have not left any stone unturned to be global Major of the players have got into the merger activities with their foreign counterparts Like Maruti with Suzuki Hero with Honda Tata with Fiat Mahindra with Renault Force Motors with Mann

Key Factsbull India ranks 12th in the list of the worlds top 15 automakersbull Entry of more international players

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

bull Contributes 5 to the GDPbull Production of four wheelers in India has increased from 93 lakh units in 2002-03 to 23 lakh units in 2007-08bull Targeted to be of $ 145 Billion by 2016bull Exports increased from 84000 units in 2002-03 to 280000 units in 2007-08

OBJECTIVES To understand the market potentiality for TATA Motors

To determine the acceptable price of the product

To determine the requirements and needs of the potential customers

To know what people perceive and thinking about Tata Motors and its products

To analyze the brand repositioning strategies of Tata Motors

To study consumer awareness and perception about the brand repositioning strategies of Tata Motors

To find out the satisfaction level of people

To find out the awareness level of customer

To find the satisfaction amongst the customers of TATA Motors

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

LIMITATIONS

The study is confined to Rourkela area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive

Continuous and reliable information was not available

Some of the information was confidential so much information was not revealed

The time span of the survey was short and hence only major aspects were considered

Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate

Availability of the respondents amidst their busy schedule did not permit detailed study

This study will be limited to only some areas of Rourkela

Lack of professional approach since researcher is a student

The sample size is only 50 so the sample may not be truly representative of the Rourkela population

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

COMPANY PROFILE

TATA MOTORS LIMITED

Tata Motors Limited is Indias largest automobile company with consolidated revenues of Rs70 93885 crores (USD 14 billion) in 2008-09 It is the leader in commercial vehicles 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 is the worlds fourth largest truck manufacturer and the worlds second largest bus manufacturer

The companys 24000 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 breadth of India Over 4 million Tata vehicles ply on Indian roads since the first rolled out in 1954 The companys manufacturing base in India is spread across Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) and Dharwad (Karnataka) Following a strategic alliance with Fiat in 2005 it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains The company is establishing a new plant at Sanand (Gujarat) The companys dealership sales services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India

Tata Motors the first company from Indias 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 companies Tata Motors has operations in the UK South Korea Thailand and Spain Among them is Jaguar Land Rover a business comprising the two iconic British brands that was acquired in 2008 In 2004 it acquired the Daewoo Commercial Vehicles Company South Koreas second largest truck maker The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market while also exporting these products to several international markets Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

commercial vehicle exports out of South Korea are from Tata Daewoo In 2005 Tata Motors acquired a 21 stake in Hispano Carrocera a reputed Spanish bus and coach manufacturer and subsequently the remaining stake in 2009 Hispanos presence is being expanded in other markets In 2006 Tata Motors 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 and select international markets In 2006 Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck with the Xenon having been launched in Thailand in 2008

Tata Motors is also expanding its international footprint established through exports since 1961 The companys commercial and passenger vehicles are already being marketed in several countries in Europe Africa the Middle East South East Asia South Asia and South America It has franchiseejoint venture assembly operations in Kenya Bangladesh Ukraine Russia Senegal and South Africa

The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customer-desired offerings through leading edge RampD With over 3000 engineers and scientists the companys Engineering Research Centre established in 1966 has enabled pioneering technologies and products The company today has RampD centers in Pune Jamshedpur Lucknow Dharwad in India and in South Korea Spain and the UK It was Tata Motors which developed the first indigenously developed Light Commercial Vehicle Indias first Sports Utility Vehicle and in 1998 the Tata Indica Indias first fully indigenous passenger car Within two years of launch Tata Indica became Indias largest selling car in its segment In 2005 Tata Motors created a new segment by launching the Tata Ace Indias first indigenously developed mini-truck

In January 2008 Tata Motors unveiled its Peoples Car the Tata Nano which India and the world have been looking forward to The Tata Nano has been subsequently launched as planned in India in March 2009 A development which signifies a first for the global automobile industry the Nano brings the comfort and safety of a car within the reach of thousands of families The standard version has been priced at Rs100 000 (excluding VAT and transportation cost)

Designed with a family in mind it has a roomy passenger compartment with generous leg space and head room It can comfortably seat four persons Its mono-volume design will set a new benchmark among small cars Its safety performance exceeds regulatory requirements in India Its tailpipe emission performance too exceeds regulatory requirements In terms of overall pollutants it has a lower pollution level than two-wheelers being manufactured in India today The lean design strategy has helped minimize weight which helps maximize performance per unit of energy consumed and delivers high fuel efficiency The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

In May 2009 Tata Motors introduced ushered in a new era in the Indian automobile industry in keeping with its pioneering tradition by unveiling its new range of world standard trucks called Prima In their power speed carrying capacity operating economy and trims they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels It has developed electric and hybrid vehicles both for personal and public transportation It has also been implementing several environment-friendly technologies in manufacturing processes significantly enhancing resource conservation

Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas ndash employability education health and environment The activities touch the lives of more than a million citizens The companys support on education and employability is focused on youth and women They range from schools to technical education institutes to actual facilitation of income generation In health our intervention is in both preventive and curative health care The goal of environment protection is achieved through tree plantation conserving water and creating new water bodies and last but not the least by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care

With the foundation of its rich heritage Tata Motors today is etching a refulgent future

HISTORY OF TATA MOTORS

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use excavators industrial shunter dumpers heavy forgings and machine tools The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB) is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG West Germany The company also used to manufacture pulp and paper making machinery In 1960 the companys name which was Tata Locomotive amp Engineering Company Ltd was changed to Tata Engineering amp Locomotive Company Ltd In the year 1987 the company undertook to set up a new forge shop a high output foundry line a new paint shop as well as augmentation of engine and gearbox manufacturing facilities all at Jamshedpur

In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

horsepower fuel efficient diesel and petrol engines to meet the future requirements of the company The last quarter saw the company launching two new passenger vehicles the SIERRA and the ESTATE totally designed and manufactured in India The company acquired a BIFR company Ms Noduron Founders Maharashtra Ltd The total cost for Telco worked out to Rs18 crores as against setting up of similar critical castings foundry During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader Two new models in the EX series of hydraulic excavators were launched A 10 tonne pick and carry articulated crane designed and developed in-house was also introduced During the year company entered into an agreement with Nachi-Fujikoshi Corporation Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications During the year company undertook to set up a joint venture with Asian Glass Co Ltd Japan to manufacture float glass to be used as wind shields for automobiles ACC along with Tata Exports Ltd participated in the joint venture The joint venture named as Floathlass India Ltd the Company would have a stake of 1633 Tata Cummins Ltd Mercedes-Benz (India) Ltd Tata Holset Ltd Tata Precision Industries Singapore and Nita Company Ltd are the joint Ventures of theCompany

Taking advantage of the broad banding policy announced by the Government of India the Company entered into a collaboration agreement with Honda Motor Co Ltd Japan for the manufacture of their `ACCORD model of cars in India On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG Germany to setup a joint venture company Mercedez-Benz India to manufacture `E class paneyer cans and engines in India

During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed A new petro engine and turbo diesel engine an up-graded 709 LCV new sports utility vehicle Safari expected to be launched shortly A 25 tonne 6 X 2 truck and a bus with cummins engine were launched

Tata Engineering and Locomotive Company (TELCO) has acquired a second hand paint shop machine line and cylinders from the Australian unit of the Japanese auto giant Nissan TELCO is believed to have picked up the unit for Rs 70 crore The total cost of import duty would be Rs 100 crore During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times

The Company has launched TATA SAFARI in its Multi utility vehicle segment Tata Holsets turbo charger plant inaugurated on November 25 1996

In 1997 the Tata Engineering and Locomotive Company Ltd (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank The Company introduced a 9-tonne vehicle which was well received in the market A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced The Company developed a low floor bus chassis to meet the specific needs of urban transport The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car Indica to be launched in December Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company Telco Construction Equipment Company Ltd The Company in its small car segment has launched Tata Indica which evoked an overwhelming response in the Indian market A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses

To make substantial improvement in the quality of bus bodies available with TATA vehicles the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa The new project undertakes production of bodies on TATA chassis conforming to the most exacting international standards Concorde Motors Ltd a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd was appointed as dealer for the Companys passenger cars in several cities across the country in Feb 1998

The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms a year before they are due to be introduced in the country It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery In Oct 1999 the Company won the National award for RampD Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research Ministry of Science and Technology for the year 1999 SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model

Tata Indica2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica powered by a multi-point fuel injection engine The Company launched the Indica 2000 the Euro II Complaint 75 BHP multi-point fuel injection (MPFI) version of Indica The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati

Tata Engineering amp Locomotive Co is renamed as Tata Engineering Ltd It replaced its three-shift production line with a one-shift daily schedule starting from 26th June In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range

In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 1334 launches six new products in light medium and heavy vehicles segments on Jan 15 during Auto Expo Announces financial restructuring Displays its Tata Sedan car at the Geneva Motor Show Indica adjudged top selling B-segment car in 2002Launches two new motorsport cars (The Zero and Double Zero Pace cars) High Court Approves Tata Engineerings Financial Restructuring Tata Engg BPCL tie up to market co-branded lubricantsTata Steels investment in Tata

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Engineering has been hiked to Rs 11798 crore over the last year Telco names Sedan as Tata IndigoUnveils EX series of medium and heavy commercial vehicles Indica sales cross two-lakh mark Collaborates with Nippon-Arcelor for technical knowhow on CR steel Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for 01-02 Unleashes Safaris petrol version priced at Rs 935 lakh

The year 2003- Tata Unveils CityRover Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV) Korea for the acquisition of this company It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV) The Company changed from TELCO to TATAMOTORS wef December 24 2003 In the same year Tata Safari ranks No 1 in MUVSUV segment

2004- The year of glory Tata Motors launch an upgraded version Indica on January 15 2004 in a bid to shore up sales of the small car

Auto Expo Tata unveils new version of Indica Tata Motors unveils Indica V2 Tata Motors launches new Indica V2 in Kerala Tata Motors introduces new Indicab for tour operators The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned Tata Motors enters agreement with Ukraine bus building firm Tata Motors enters into agreement with Etalon In a move to consolidate its presence in the light commercial vehicles segment Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX Tata Motors buys Daewoo truck unit for Rs 465 crore Tata Motors unveils Tata SFC 407 EX Tata Motors inks agreement with Austrian French companies Acquires Daewoo Commercial Vehicle Company Ltd (DWCV) Korea Tata Motors launches most anticipated new 6-tn truck in India

Tata Motors the countrys largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu Tata Motors and Tata Africa unveiled a range of passenger cars utility vehicles pick-ups trucks and buses for the South African market Tata Motors has launched a face lifted version of its multiutility vehicle Tata Sumo Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle

Tata Motors unveils Tata Safari DICOR in Kerala market on August 11 2005 Tata Motors rolls out 2 luxury variants of Indigo Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 410 lakh for DLG variant and Rs 431 lakh for DLX Tata Motors ropes in CVTech to make parts for its small car Tata Daewoo inks pact with Pakistan co

Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007 Tata Motors buys Nissan facility in S Africa Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC CNG-propelled buses Tata Motors Ltd has appointed Mr P M Telang as Executive Director (Commercial Vehicles)

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

CURRENT SITUATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India The motor group was established in 1945 as part of the larger Tata Group They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market Currently Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups trucks tractor trailers tippers and buses Both product lines of the Tata Motors group have seen success but much of this has been built upon the more deeply established commercial vehicle product line

Tata Motors commercial line has been established for several years in many market segments such as Europe Africa The Middle East Australia Southeast Asia and South Asia Tata Motors has expanded their business and market share around the world through a series of acquisitions In 2004 they acquired Daewoo commercial vehicle Company in South Korea which was South Korearsquos second largest truck manufacturer This acquisition gave Tata Motors a significant presence in the Korean market They have also entered into joint ventures with companies such as Thonburi Automotive in 2006 which allowed them to manufacture and market pickup trucks in Thailand

Tata Motors have been making global headlines in the auto industry lately the largest news being their acquisition of Jaguar and Land Rover from Ford ldquoTata paid 23 billion dollars to Ford for the two brands that cost Ford 53 billionrdquo (Carty USA Today) This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time Tata like many new businesses it acquires is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business ldquoTata will give us some space They want us to run our business be a premium British car companyrdquo (Mike OrsquoDriscoll managing director of Jaguar) This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Porters five forces analysis is a framework for the industry analysis and business strategy It uses concepts developed in Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market

The Five Forces1The threat of substitute products-As we know the Indian customers choices range from mileage pick-up power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

2 The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth

3 The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect

4 The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market

5 The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so supply is very much required in the industry for a company

PRODUCTS OF TATA MOTOR

1 Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI Indica Vista

Tata Sierra Tata Estate Tata Sumo Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT

Tata Xover

2 Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante

2009 Tata Prima

3 Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace

Tata TL Telcoline 207 DI Pickup Truck Tata 407 Ex and Ex2

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 15101512 (Medium bus) Tata 16101616 (Heavy bus) Tata 16131615 (Medium truck) Tata 25152516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

4 Military vehicles Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier available in hard top soft top 4x4 and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

SWOT ANALYSIS

STRENGTH Strong Presence in the Marketplace-Tata Motors is the only company in India with a

broad based presence across the industry in all segments of the commercial vehicles market ndash heavy and medium commercial vehicles light commercial vehicles pick-ups sub one-tonne mini-trucks - and key segments - compact midsize car and utility vehicle segments - of the passenger vehicles market

Unique Understanding of Customer Need - With 50 yearsrsquo presence in the automotive business Tata Motors understands customer needs and develops products that meet their Needs To consider a few examples as early as 1980s the company launched Light Commercial Vehicles amidst Japanese competition in which it today strongly leads In the 1990s Anticipating the need for an affordable family car it launched the now famous Tata Indica which occupies a leading position among compact cars

Skill Base Developed over the Last 40 Years-Tata Motors is also very well-placed on technology capability The company had set up its Engineering Research Centre as early as 1966With 1400 scientists and engineers and state-of-the-art development testing and validation facilities it is this technology capability which has allowed Tata Motors over the decades to offer indigenously developed products This strength has been accentuated with the inclusion of TMETC TDCV and Hispano Carrocera in the RampD network besides several other specialist external agencies The company no longer needs to develop every necessity itself Today it just has to manage the process of product creation drawing upon already available RampD and skills from different sources

People Strength - The Companyrsquos key strength is its people The over 22000 employees comprise a very broad talent base with the required skills in every aspect of the industry With increasing international initiatives by the company this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost The company will achieve this by developing and marketing relevant products on its existing platforms and new ones which delight consumers in every market they are introduced in

Tata Motorsrsquo linkages in Europe through Subsidiary Companies - In October 2005 Tata Technologies Ltd a 100 per cent subsidiary of Tata Motors acquired a 943 per cent stake in INCAT International Limited INCAT is a supplier of engineering amp design product lifecycle management and product-centric IT services to the automotive aerospace and durable goods industries

Tata Motors RampD in Europe - Deepening its engagement with the European RampD space in September 2005 Tata Motors set up the Tata Motors European Technical Centre a 100 per cent subsidiary in the UK It is engaged in design engineering and development of products for the automotive industry Working synergistically TMETC provides the company with design engineering support and development services

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

complementing and strengthening the companyrsquos skill sets and providing European standards of delivery to the companyrsquos passenger vehicles

The internationalization strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market The benefit is that Tata has been able to exchange expertise For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time

OPPURTUNITIES Indiarsquos huge geographic spread-This is one aspect where the company is looking for

and its diversified range of cars suits very much this area of car or say auto industry in country

Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country

Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days

Increasing Road Development Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand

Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so the development of rural infrastructure and condition will create handsome demand from the rural area

Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon

Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so this is also very good opportunity for this sector

Graduating from Two wheeler to four wheeler-The dream of ldquoNANOrdquo will boost demand for four wheeler in the auto industry

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

THREAT Indian is lacking in proper infrastructure this is slowing the pace of growth of auto

industry

Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss

High competition from foreign players-As the giants like GM Audi MERC etc are trying to capture the high segment market it is one of the very effective threat to the company

Other competing car manufacturers have been in the passenger car business for 40 50 or more years Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer This could impact its underpinning competitive advantage Obviously as Tata globalizes and buys into other brands this problem could be alleviated

Since the company has focused upon the commercial and small vehicle segments it has left itself open to competition from overseas companies for the emerging Indian luxury segments For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum Other players developing luxury cars targeted at the Indian market include Ford Honda and Toyota In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra Maruti Udyog General Motors Ford and others

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts The price of steel and aluminium is increasing putting pressure on the costs of production Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market

WEAKNESS

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

The current financial situation of its recently acquired firms like ldquoCorusrdquo and ldquoLand Rover-Jaguarrdquo is very big headache for the company and it should be back to the track in the near future

The high ratio of debt equity ratio is also weakness of the company

The small car segment is still not good for the company due to ldquomaruti-suzukirdquo so it need to tap this section also

The CV segment is becoming highly competitive by new player like Volvoand rival M ampM are coming with new products to cater the TATA in the market as the rural area has given thumps up to MampM during this year

The companys passenger car products are based upon 3rd and 4th generation platforms which put Tata Motors Limited at a disadvantage with competing car manufacturers

Despite buying the Jaguar and Land Rover brands (see opportunities below) Tat has not got a foothold in the luxury car segment in its domestic Indian market Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India

One weakness which is often not recognized is that in English the word tat means rubbish Would the brand sensitive British consumer ever buy into such a brand Maybe not but they would buy into Fiat Jaguar and Land Rover

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

MARKETING STRATEGIES

1 Launch of Tata Nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it ldquoThe Peoplersquos Carrdquo Itrsquos a sweet looking small car just enough to take four people around the city 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked

Following TATA Nano car specs in comparison with Maruti 800 Overall Length of Nano is 3100 MM which is 7 shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4 wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14 taller than Maruti 800 Overall inside Space of Nano is 21 bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder Maruti 800`sgot 3Cylinders Power 33BHP less than Maruti 800 Top Speed 120 Kmph Top Speed lower than Maruti 800 Fuel efficient

TATA Nano will hit the roads and as it is a definite threat to Maruti 800 TATA stated that the initial production of this car will be of 250000 a year After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now

The introduction of the Nano received media attention due to its targeted low price The car is expected to boost the Indian economy create entrepreneurial-opportunities across India as well as expand the Indian car market by 65 The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly peoples car Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano) Tata Group is expected to mass manufacture the Nano particularly the electric-version and besides selling them in India to also export them worldwide

Critics of the car have questioned its safety in India (where reportedly 90000 people are killed in road-accidents every year) and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri) However Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline model

The Nano was originally to have been manufactured at a new factory in Singur West Bengal but increasingly violent protests forced Tata to pull out October 2008 Currently Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat The company will bank on existing dealer network for Nano initially The new Nano Plant could have a capacity of 500000 units compared to 300000 for Singur Gujarat has also agreed to match all the incentives offered by West Bengal government

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

The Tata Nano is a rear-engined four-passenger city car built by Tata Motors aimed primarily at the Indian market The car is very fuel efficient achieving around 2600kml on the highway and around 2200kml in the city It was first presented at the 9th annual Auto Expo on January 10 2008 at Pragati Maidan in New Delhi Nano had a commercial launch on March 23 2009 and a booking period from April 9 to April 25 generating more than 200000 bookings for the car The sales of the car begin in July 2009 with a starting price of Rs 115000 (rupees) This is cheaper than the Maruti 800 its main competitor and next cheapest Indian car priced at 184641Rupees

DESIGN

Ratan Tata the Chairman of Tata Motors began development of the worlds cheapest production car in 2003 inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles The Nanos development has been tempered by the companys success in producing the low cost 4 wheeled Ace truck in May 2005

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw The Times of India reported the vehicle is a properly designed and built car The Chairman is reported to have said It is not a car with plastic curtains or no roof mdash its a real car

To achieve its design goals Tata refined the manufacturing process emphasized innovation and sought new design approaches from suppliers The car was designed at Italys Institute of Development in Automotive Engineering mdash with Ratan Tata requesting certain changes such as the elimination of one of two windscreen wipers Some components of the Nano are made in Germany by Bosch such as Fuel Injection brake system Value Motronic ECU ABS and other technologies

The Nano has 21 more interior space (albeit mostly as headroom due to its tall stance) and an 8 smaller exterior compared to its closest rival the Maruti 800 Tata offered the car in three versions the basic Tata Nano Std the Cx and the Lx The Cx and Lx versions each have air conditioning power windows and central locking Tata has set its initial production target at 250000 units per year

COST CUTTING FEATURES

The Nanos trunk does not open Instead the rear seats can be folded down to access the trunk space

It has a single windscreen wiper instead of the usual pair It has no power steering Its door opening lever was simplified It has three nuts on the wheels instead of the customary four It only has one side view mirror

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

PRICE

Tata initially targeted the vehicle as the least expensive production car in the worldmdash aiming for a starting price of 100000 rupees or approximately despite rapidly rising material prices at the time

As of August 2009 material costs had risen from 19 to 29 over the carrsquos development and Tata faced the choice of

middot Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the carmiddot Using vertical-integration to artificially boost profits on cars at the expense of their materials industriesmiddot Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car

Nano is available in three trim levels

The basic Tata Nano Std priced at 123000 Rupees has no extras The deluxe Tata Nano CX at 151000 Rupees has air conditioning The luxury Tata Nano LX at 172000 Rupees has air conditioning power windows and

central locking The Nano Europa European version of the Tata Nano has all of the above plus a larger

body bigger 3-cylinder engine anti-lock braking system (ABS) and meets European crash standards and emission norms

The base model will have fixed seats except for the drivers which will be adjustable while the deluxe and luxury models will get air conditioning and body coloured bumpers

Technical Specifications

According to Tata Groups Chairman Ratan Tata the Nano is a 33 PS (33 hp24 kW) car with a 623 cc rear engine and rear wheel drive and has a fuel economy of 455 L100 km (2197 kmL 517 mpg (US) 62 mpg (UK)) under city road conditions and 385 L100 km on highways (25974 kmL 611 mpg (US) 733 mpg (UK)) It is the first time a two-cylinder non opposed petrol engine will be used in a car with a single balance shaft Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano with powertrain accounting for over half of them The project head Girish Wagh has been credited with being one of the brains behind Nanos design

Much has been made of Tatas patents pending for the Nano Yet during a news conference at the New Delhi Auto Expo Ratan Tata pointed out none of these is revolutionary or represents earth-

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

shaking technology He said most relate to rather mundane items such as the two-cylinder enginersquos balance shaft and how the gears were cut in the transmission

Though the car has been appreciated by many sources including Reuters due to the way it has tweaked existing technologies to target an as-yet untapped segment of the market yet it has been stated by the same sources that Nano is not quite revolutionary in its technology just low in price Moreover technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version technologies on which Tata is reportedly already working though no official incorporation-date for these technologies in the new car has been released

According to Tata the Nano complies with Bharat Stage-III and Euro-IV emission standards Ratan Tata also said The car has passed the full-frontal crash and the side impact crash Tata Nano passed the required homologationrsquo tests with Pune-based Automotive Research Association of India (ARAI)This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise amp vibration and can now ply on Indian roads Tata Nano managed to score around 24 km per litre during its lsquohomologationrsquo tests with ARAI This makes Tata Nano the most fuel efficient car in India Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIrsquos tests on its windshield According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 another technically innovative peoples car A concept vehicle similar in styling to the Nano also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production The eventual new Mini was much larger and technically conservative The independent and now-defunct MG Rover Group later based their Rover CityRover on the Tata Indica

Tata is also reported to be contemplating offering a compressed air engine as an option

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

2 MODIFICATION IN TATA SUMO

The Toyota Qualis and now competes with Chevrolet Tavera The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo The Sumo has seen a series of changes in terms of refinement in this decade It has been the favorite choice for cab owners as it is rugged and affordable

The Tata Sumo has been enjoying its position in the MUV market since 1994 It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle but in fact is a carryover of the old Sumo with some cosmetic changes The Sumo comes in nine Victa variants CX 107 Str DI CX 7910 Str DI EX 79 Str DI GX 79 Str DI LX 79 Str EX 107Str GX 7 Str GX TC 7 Str and LX 107 Str All variants except the Victa DI variants are powered by a 2- litre Inline-4 diesel engine The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp The Victa DI variants get a 3-litre turbocharged diesel engine Refinement both internal and external is evident across the variants Tatas latest three variants under the Sumo Grande category are LX EX and GX available in 2-seater 7- seater and 8-seater configurations Sumo Grande boasts of a powerful 22-L Direct Injection Common Rail(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407 The prominent visual difference was the presence of round headlamps instead of the rectangular lamps A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets After the facelift the Spacio inherited the styling elements of the older Tata Sumo In 2007 the Victa became available with the Spacios 3000 cc engine And in terms of styling the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle This model comes in 8 and 10 seater variants and is very much popular with private transporters amp contract taxi vendors because of its lower cost

SUMO VICTAThe new Sumo Victa released in 2004 featured power windows power steering dual AC central locking clear lens multi reflector head lamps crystal finish tail lamp cluster anti-glare ORVMS with electronic control remote keyless entry tachometers LCD monitors voice warnings multiple trip odometers are all either standard or available options

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10 2008 powered with a new generation 2200 cc 120 bhp (89 kW 122 PS) DICOR (Direct Injection Common Rail) engine It is the most up market version of the Sumo available and features completely different body work It lies below the Tata Safari in Tatas product portfolio

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

3 NEW VERSIONS OF INDIGO INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bulls eyes The beefy amp bony structured sedan has the capacity to deliver maximum torque of 140Nm 1800 - 3000 rpm The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver amp co passengers oriented positive attributes such as

Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3 with headrest mounted LCD screens 14-litre as rail diesel engine

Indigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window black dials with chrome rings amp star check as the new pattern for its console amp AC fascia

Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror black dials amp Benz silver as the new pattern for console amp AC fascia It has no mounted LCD screens

4 TAPPING OF RURAL MARKET

According to the National Council for Applied Economic Research or NCAER rural India accounts for 70 of Indiarsquos population 56 of the national income 64 of the total expenditure and one-third of the total savings So the difficulties faced in cracking these markets pale before the huge potential they offer a company Of the total sales (of consumer goods) around 55 come from rural India and going ahead the contribution is likely to grow NCAER data suggests that in real terms at 1999 prices the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08 The share of non-farm income will be about two-thirds of the rural economy by 2012-13

Noticing this huge potential Tata motors now plans to tap the rural market 60 per cent of which runs on cash Tata motors ltd is working on strategies to make inroads into these markets

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

REVIEW OF LITERATURE

Released on 3rd August 2009

Tata Motors July sales at 48054 nos growth of 18MampHCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48054 vehicles a growth of 18 over 40729 vehicles sold in July 2008 The companyrsquos domestic sales of Tata commercial and passenger vehicles for July 2009 were 45599 nos a 23 growth over 37033 nos sold in July last year

Cumulative sales (including exports) for the company for the fiscal at 171168 nos was lower by 1 compared to 172462 nos sold last year

Commercial Vehicles The Companyrsquos sales of commercial vehicles in July 2009 in the domestic market were 28408 nos a 27 growth compared to 22381 vehicles sold in July last yearLCV sales were 17750 nos a growth of 44 over July last year MampHCV sales stood at 10658 nos turning positive after almost a year with a growth of 6 over July last year and the highest since September 2008

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100464 nos a growth of 7 over last year Cumulative LCV sales were 63180 nos agrowth of 32 over last year while MampHCV sales stood at 37284 nos was lower by 19 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19881nos (17191 Tata + 2690 Fiat) in the domestic market in July 2009 a 32 increase compared to 15064 nos (14652 Tata + 412 Fiat) in July last year Sales of Tata cars at 14537 nos grew by 21 over July 2008 Dispatches of the Tata Nano began during the month and the sales were 2475 nos The Indica range sales were 8563 nos a growth of 14 over July lastyear The Indigo range recorded sales of 3499 nos lower by 22 over July last year The UVSUV range of SumoSafari accounted for sales of 2638 nos flat compared to July last year

The company began the sale and deliveries of the Jaguar and Land Rover range through the brandsrsquo flagship store in Mumbai The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70572 nos (63028 Tata + 7544 Fiat) against 67559 nos (65746 Tata + 1813 Fiat) last year a growth of 4 Nano sales were 2475 nos Cumulative sales of the Indica range

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

at 37412 nos reported a growth of 13 Cumulative sales of the Indigo family were 12422 nos lower by 29 Cumulative sales of the SumoSafari range were 10690 nos lower by 29

ExportsThe Companyrsquos sales from exports at 2455 vehicles in July 2009 were lower by 34 compared to 3696 vehicles in July last year The cumulative sales from exports for the fiscal at 7676 nos were lower by 40 over 12855 nos in the same period last year

Released on 27th July 2009

Tata Motors First Quarter Stand-alone net revenue Rs6405 CroresPAT grows 58 to Rs514 crores

- R S Sardha

Tata Motors today reported revenues (net of excise) of Rs640463 crores on a standalone basis for the quarter ended June 30 2009 of the financial year 2009-10 a decline of 76 compared to Rs692844 crores in the corresponding quarter previous year

The companyrsquos continued focus on cost efficiencies coupled with reduction of raw material prices inventory reduction and improvement in sales realisation yielded considerable benefits resulting in the operating margin to 114 (from 71 in the previous year) with operating profits at Rs72800 crores an increase of 479 as compared to the corresponding period of the previous year

Profit before Tax for the quarter grew by 588 to Rs54804 crores (Q1 2008-09 Rs34509 crores) and Profit after Tax was Rs51376 crores (Q1 2008-09 Rs32611 crores) an increase of 575 The interest cost (net) at Rs25345 crores for the quarter increased by 1256 due to increased debt taken by the company during the previous year to support its product programmes investments and working capital requirements and depreciation at Rs22912 crores was higher by 267 reflecting the increased investments in new products and supporting capabilities For the quarter ended June 30 2009 there was an exceptional notional foreign exchange valuation loss of Rs554 crores (previous year loss of Rs16159 crores)

Improvement in liquidity increased reach across the country and introduction of new products and variants improved the companyrsquos sales except in the case of the heavy truck segment The heavy truck segment is recovering albeit slowly in response to infrastructure development Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives

The companyrsquos domestic sales volume at 122120 vehicles recorded a marginal decrease of 14 over the corresponding quarter of the previous year whilst the exports at 5220 vehicles continued to be severely impacted (negative 43) in the wake of continuing tumultuous global environment resulting in total sales volume at 127340 vehicles a decline of 43 as compared to the corresponding quarter of the previous year The company gained market share in commercial vehicles to 674 during the quarter compared with 61 in the corresponding

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

quarter of previous year on the back of a marginal 11 growth in domestic sales to 72216 units Tata passenger vehicles declined by 10 in the domestic market to 45846 units but have been growing sequentially every month of the quarter breaking into positive growth in June The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 125 and for the period being at 113 Along with Fiat the company has a joint market share of 123 in the industry

The company continues to upgrade its resources to leverage emerging opportunities In commercial vehicles the company unveiled its new range of world standard trucks in May 2009 comprising multi-axle trucks tractor-trailers tippers mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time An all-new Starbus range of buses has also been introduced A new mileage enhancing automatic stop-start technology developed in-house has been introduced in the Ace mini truck Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM

In passenger vehicles the company has completed the process of allotment of Tata Nanos following the carrsquos launch in March 2009 Deliveries to the allottees have since begun The company also opened the first Jaguar Land Rover showroom in India at Mumbai Along with the Fiat Linea Fiat 500 and the Palio the company has commenced the distribution of the Fiat Grande Punto in June 2009

The audited stand-alone financial results for the quarter ended June 30 2009 are enclosed The consolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course

Released on 17th July 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R Karm

Tata Motors is pleased to announce that Mr Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano Mr Vichare received his choice the Tata Nano LX (Lunar Silver) at the hands of the Chairman of Tata Sons and Tata Motors Mr Ratan N Tata at the companyrsquos dealership Concorde Motors today Speaking on the occasion Mr Tata said ldquoI hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern contemporary emission-friendly city carrdquo

Along with Mr Vichare two other customers Mr Ashish Balakrishnan (Tata Nano LX ndash Sunshine Yellow) and Kores India Limited (Tata Nano LX ndash Lunar Silver) also received their cars today

As planned Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country Dispatches to dealerships have begun from the Pantnagar plant where the car is being produced in accordance with schedules informed to customers

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Released on 1st July 2009

TATA Motorsrsquos June 2009 DOMESTIC SALES at 43244 nos- G Lata Sure

Tata Motorsrsquo total sales (including exports) of Tata commercial and passenger vehicles were 45399 vehicles a decline of 4 over 47245 vehicles sold in June last year The companyrsquos domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43244 nos a 1 decline over 43814 nos sold in June last year

Cumulative sales (including exports) for the company for the quarter at 123113 nos declined by 7 compared to 131733 nos sold last year

Commercial VehiclesThe Companyrsquos sales of commercial vehicles in June 2009 in the domestic market were 26205 nos a 2 decline compared to 26797 vehicles sold in June last year LCV sales were 16256 nos a growth of 17 over June 2008 while MampHCV sales stood at 9949 nos a decline of 23 over June 2008 but an increase of 15 over May 2009

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72056 nos a growth of 1 over last year Cumulative MampHCV sales stood at 26626 nos a decline of 26 over last year while LCV sales for the quarter were 45430 nos a growth of 27 over last year

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19513 nos (17039 Tata + 2474 Fiat) in the domestic market in June 2009 an 11 increase compared to 17567 nos (17017 Tata + 550 Fiat) in June 2008 and an increase of 178 over 16563 nos (15388 Tata + 1175 Fiat) of May 2009 The Indica range grew for the fifth consecutive month at sales of 10210 nos -- a growth of 19 over June 2008 The Indigo family recorded sales of 3522 nos a 26 decline over June 2008 but a growth of 244 over 2832 nos of May 2009 The SumoSafari range accounted for sales of 3307 nos a decline of 11 compared to June 2008 but a growth of 297 over 2550 nos of May 2009

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50691 nos (45837 Tata + 4854 Fiat) against 52495 nos (51094 Tata + 1401 Fiat) in the same period last year Cumulative sales of the Indica range at 28849 nos reported a growth of 12 Cumulative sales of the Indigo family were 8923 nos a 32 decline over the same period last year Cumulative sales of the SumoSafari range were 8065 nos a decline of 35

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Exports The Companyrsquos sales from exports at 2155 vehicles in June 2009 declined by 37 compared to 3431 vehicles in June 2008 The cumulative sales from exports for the fiscal at 5220 nos declined by 43 over 9159 nos in the same period last year

Released on 28th June 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rovers official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr Ratan N Tata Chairman of Tata Sons and Tata Motors

Jaguar and Land Rovers award-winning vehicles are well known around the world Jaguar has become one of the worlds leading producers of beautiful fast cars Land Rover produces the worldrsquos most versatile all-terrain vehicles combining refined luxury with a true breadth of capability

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF XFR and XKR and Land Rover Discovery 3 Range Rover Sport and Range Rover Further details including specifications are available on the new Jaguar India website (wwwjaguarin) and Land Rover India website (wwwlandroverin)

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli Mumbai will offer a wide range of both Jaguar and Land Rover vehicles with a dedicated showroom section for each brand It aims to establish a benchmark experience in luxury car sales in India with plans to develop the dealer network throughout 2009 and 2010

Mr Ratan N Tata Chairman of Tata Sons and Tata Motors said We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands accompanied by a parts and service network We hope that they will delight customers in India just as they have done in markets the world over

Mr David Smith CEO of Jaguar Land Rover said Jaguar Land Rover is delighted to have officially opened our first showroom in India It is an exciting time to be entering the Indian market a country with increasing affluence and an economy which is still growing We believe 100 that the Indian market holds significant growth potential in the long term and we hope to tap the demand for premium vehicles from discerning customers

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Released on July 7 2009

TATA MOTORS TO INTRODUCE AIR CARndash Ben MaGreow

Tata Motors is taking giant strides and making history for itself First the Landrover-Jaguar deal then the worlds cheapest car and now it is also set to introduce the car that runs on air compressed air to be specific

With fuel prices touching nearly $150 per barrel it is about time we heard some breakthrough

Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle The Air Car developed by ex-Formula One engineer Guy Negravegre for Luxembourg-based MDI uses compressed air as opposed to the gasand- oxygen explosions of internalcombustion models to push its engines pistons Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009

The Air Car called the MiniCAT could cost around Rs 350000 ($ 8177) in India and would have a range of around 300 km between refuels

The cost of a refill would be about Rs 85 ($ 2) Tata motors also plans to launch the worlds cheapest car Tata Nano priced famously at One lakh rupees(pound1200) by October

The MiniCAT which is a simple light urban car with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air Microcontrollers are used in every device in the car so one tiny radio transmitter sends instructions to the lights indicators etc There are no keys - just an access card which can be read by the car from your pocket

According to the designers it costs less than 50 rupees per 100Km (about a tenth that of a petrol car) Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving) a factor which makes a perfect choice in cities where the 80 of motorists drive at less than 60Km The car has a top speed of 105 kmph Refilling the car will once the market develops take place at adapted petrol stations to administer compressed air In two or three minutes and at a cost of approximately 100 rupees the car will be ready to go another 200-300 kilometers

As a viable alternative the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours Due to the absence of combustion and consequently of residues changing the oil (1 litre of vegetable oil) is necessary only every 50000Km] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Released on 26th June 2009

Consolidated Revenue in 2008-09 Rs 7093885 croresLoss after Tax Rs 250525 crores

Tata Motors today reported consolidated gross revenue of Rs7415121 crores in 2008-09 The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008 In 2007-08 the consolidated gross revenue was Rs4034079 crores

The consolidated revenues (net of excise) in 2008-09 amounted to Rs7093885 Crores (2007-08 Rs 3566007 crores) On a consolidated basis the company reported a Loss after Tax in 2008-09 of Rs 250525 crores in 2007-08 the company had reported a Profit after Tax of Rs 216770 crores

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs(5688) (2007- 08 Profit of Rs 5624) for its consolidated operations

Tata Motors has already reported on May 29 2009 that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs2566079 crores and Profit after Tax for the year was Rs100126 crores

Business Highlights

Jaguar Land Rover Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008 However the global meltdown especially after July 2008 with vehicle financing and demands drying up impacted the auto industry worldwide including Jaguar Land Rover In 2008 therefore Land Rover sales fell considerably However Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan

The company has actively responded to this changed situation by taking a number of urgent and long term measures These include cutting costs drastically and working on a plan of substantial cost reduction aligning production with demand and tight control over cash flows In addition Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover brands and is to unveil the all new XJ sedan shortly

TDCVWhile market illiquidity and high interest rates in South Korea impacted the companyrsquos domestic performance it strongly grew exports The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments as also product development initiatives

TelconThe company has launched several new products but was impacted by the credit squeeze in the third quarter of the year It expects demand revival supported by infrastructure spend in the country

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

HVAL amp HVTLThough impacted by lower volumes on the back of decline in medium and heavy trucksthe two companies significantly reduced variable costs to counter the slowdown Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad

TMFLIn line with Tata Motorsrsquo sales in 2008-09 there was a decline in disbursals It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage

Tata TechnologiesThe company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects and has expanded presence in aerospace design and aero structures While the year ahead is challenging it has developed appropriate business structures and processes to strengthen relationship with strategic clients

Released on 29th May 2009

Tata Motors Net Revenue in 2008-09 lower at Rs2566079 croresand Net Profit lower at Rs100126 crores due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs2859927 crores (2007- 08 Rs3309393 crores) in 2008-09 a year marked by severe demand contraction in the automobile industry

Revenues (net of excise) for the year were Rs 2566079 crores compared to Rs2873941 crores in 2007-08 a decline of 107 The Profit before Tax was Rs101376 crores compared to Rs257647 crores in 2007-08 a decline of 607 The Profit after Tax for the year was Rs100126 crores compared to Rs202892 crores a decline of 507

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year particularly in the October-December quarter post the global financial market upheavals The impact on heavy commercial vehicles was more severe abetted by reduction in freight movement in different segments and customer concerns on economic conditions Small commercial vehicles like the Tata Ace and the Tata Magic have continued to improve penetration

Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales as in the automobile industry but growth is yet to revive to earlier levels

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure The company accelerated cost reduction measures and proactively managed

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

working capital to contain the impact as best as it could The total 2008-09 sales volume (including exports) is 506421 units compared to 585649 units in the previous year The company retained its domestic leadership position in commercial vehicles and continued to be amongst the top three in passenger vehicles Domestic commercial vehicles sales amounted to 265373 units (2007-08 312935 units) The company increased market share in commercial vehicles to 638 (2007-08 622) aided by its wide product offering Domestic passenger vehicles sales amounted to 207512 units (2007-08 218055 units)The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 131 for the year (2007-08 14) and a March exit share of 145 Tata Motorsrsquo exports were 33536 numbers (2007-08 54659 numbers) impacted by the worldwide downturn in the industry

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea both of which have been received well In commercial vehicles too new products introduced during the year or the previous year offering benefits like higher fuel efficiency grew at a faster rate and helped enhance market share

The landmark events of the year were the acquisition of Jaguar Land Rover on June 2 2008 and the launch of the Tata Nano on March 23 2009 Over 203 lakh fully paid bookings were received for the Tata Nano the deliveries of which will begin from July 2009 The Pantnagar plant began producing the Tata Nano during the year while the Sanand plant is rapidly progressing towards completion

DIVIDENDThe Board of Directors has recommended a dividend of Rs6- per Ordinary share and Rs650 per lsquoArsquo Ordinary share of Rs10- each for the financial year 2008-09 (2007- 08 Rs15- for Ordinary share) The dividend is subject to approval of shareholders tax on the dividend will be borne by the Company

The Audited Financial Results for the financial year ended March 31 2009 are enclosed

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research work This includes the overall research design data collection method the field survey and the analysis of data

SOURCE OF DATA COLLECTION

PRIMARYFor my survey primary data have been used as a questionnaire to collect the data

SECONDARYThe secondary data has been collected from the following modes

Magazines Books Newspaper Data through internet sources

RESEARCH DESIGNResearch Design is the arrangement for conditioned for data collection amp analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure

A research design is a master plan or model for the conduct of formal investigation It is blue print that is followed in completing study

The research conducted by me is a descriptive research This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data

RESEARCH PLAN

Type of study For completing my study I have gone for sample study because looking at the size of population amp the time limitation it was not convenient for me to cover entire population Hence I have gone for sample study rather than census study

SAMPLING PLANA sample design is a definite plan for obtaining a sample from a given population It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample ie the size of sample Sampling plan is determined before data are collected

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

STEPS IN SAMPLING PLAN

SAMPLING FRAMEThe list of sampling units from which sample is taken is called sampling frame Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result

SAMPLING SIZETotal sample size is 50 The following sample size according to area wise is as follows

10 CIVIL TOWNSHIP 10 CHHEND 10 BASANTY COLONY 10 KOELNAGAR 10 SECTOR

SAMPLING PROCEDUREThe selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure evaluate and co-operative It was a randomly area sampling method that attempts to obtain the sample of convenient

ANALYSISThe important factors and datarsquos collected were sequentially analyzed and graphed

FIELD WORKI have collected the data through medium called questionnaire collecting the responses from 50 people in all I had done my field work in the following area

CIVIL TOWNSHIP CHHEND BASANTY COLONY KOELNAGAR SECTOR

I started my project very first educating the respondents about my entire project and ask them to condashoperate with me Mostly all the respondent were aware of this type of surveys So I didnrsquot face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

RESULTS AND ANALYSIS

Tata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale ndash Poor Average Above Average Good and Excellent The factors related to showrooms that were provided to the respondents for rating are ndash store ambience sales personnel after sales service and display of watches

Consumer perception of store ambience

36 of the 50 respondents have rated store ambience as ldquoGoodrdquo and 7 each rated as ldquoAbove Averagerdquo and ldquoExcellentrdquo This proves that store ambience plays an important role in consumer perception of service quality

Consumer perception of sales personnel

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

With respect to sales personnel 35 respondents rated them as ldquoGoodrdquo while 4 each rated as ldquoPoorrdquo and ldquoAveragerdquo 7 respondents gave rating of ldquoAbove Averagerdquo

Consumer Perception about after sales service

In the survey 31 out of 50 respondents rated after sales service asrdquo Goodrdquo 4 each as ldquoAveragerdquo ldquoAbove Averagerdquo ldquoExcellentrdquo while 7 respondents rated as ldquoPoorrdquo

Consumer perception of Display of cars

Most of the respondents have given high ratings to the display of watches in Tata`s showroom 22 respondents rated it as ldquoExcellentrdquo 24 respondents as ldquoGoodrdquo and only 4 respondents gave rating of ldquoAveragerdquo

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Overall perception about Tata showrooms

The respondents were also asked to give overall rating to Tata`s exclusive showrooms It was found that out of total 50 respondents 30 rated as ldquogoodrdquo while the remaining considered the showrooms to be ldquoexcellentrdquo

Around 50 of the respondents rated all the variables related to Tata`s exclusive showrooms as ldquogoodrdquo This shows that the store ambience sales personnel after sales service and display of cars in the showrooms play a major role in determining the customer perception about brand

Car customersNo of people

First time user 23More than once 27

23 were first time users and 27 reported that they have used car more than once

Customer satisfaction from Tata carsCustomer satisfaction No of people

Satisfied 21Not satisfied 29

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

21 of people were satisfied but 29 were not satisfied

Tele media creates a brand appealTVads appeal No of people

Yes 17No 33

17 people agreed that TV ads do create brand appeal whereas 33 were against it

Tata Passenger Cars Creating brand valueBrand value No of people

Yes 15No 5

15 people were favorable towards Tata passenger cars creating brand value whereas 5 were against it

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Factors affecting buying of customersFeatures No of people

Power steering 10Mileage 12

Price 20Others 8

10 replied power steering while 12 mileage 20 price and 8 other factors

Associated with Tata MotorsNo of people

1 year 01-3 years 03-5 years 05-10 years 30

Above 10 years 20

30 people replied that they were associated with Tata motors for more than 5 years whereas 20 replied that they own Tata car for more than 10 years

Knowledgeable salespersonNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 36

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Strongly agree 14

36 people agreed that the sales persons are knowledgeable and 14 strongly disagreed that the sales persons are knowledgeable

Employee spent enough time with you before salesNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

0

Agree 34Strongly agree 16

34 people agreed that the sales persons spent enough time with them before the sales and 16 strongly agreed with this

Employee spent enough time with you during salesNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 32Strongly agree 14

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

62 agreed that sales persons spent enough time with them during the sales while 34 strongly agreed that the sales persons spent enough time with them during sales and only 4 disagreed with this

Availability of the productNo of people

Strongly Disagree 0Disagree 4

Neither disagree nor agree

0

Agree 31Strongly agree 5

31 agreed that the availability of the product was there 5 strongly agreed that the availability was there while only 4 said they disagreed with this

Prices are affordableNo of people

Strongly Disagree 0Disagree 2

Neither disagree nor agree

5

Agree 21Strongly agree 22

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

22 strongly agreed that the prices are affordable 21 agreed that the prices are affordable whereas only 5 said that they neither disagreed nor agreed with this

Attractive discounts offeredNo of people

Strongly Disagree 0Disagree 6

Neither disagree nor agree

0

Agree 27Strongly agree 17

27 agreed that the discounts offered are attractive 17 strongly agreed with this while 6 disagreed and said that the discounts offered were not attractive

Offered test driveNo of people

Strongly Disagree 0Disagree 20

Neither disagree nor agree

0

Agree 24Strongly agree 6

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

24agreed that the test drive was offered to them 6 strongly agreed that the test drive was offered while 20 disagreed with this

Responds to complain quicklyNo of people

Strongly Disagree 0Disagree 9

Neither disagree nor agree

11

Agree 20Strongly agree 10

20 agreed that the response to complaints is quick 10 strongly agreed 11 neither agreed nor disagreed and 9 disagreed with this

Careful with personal informationNo of people

Strongly Disagree 0Disagree 0

Neither disagree nor agree

8

Agree 35Strongly agree 7

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

35 agreed that yes they were careful with personal information 7 strongly agreed with this and 8 neither agreed nor disagreed

Commitments are fulfilledNo of people

Strongly Disagree 0Disagree 7

Neither disagree nor agree

0

Agree 6Strongly agree 37

37 strongly agreed that all the commitments were fulfilled and 6 agreed with this

Brand recallNo of people

Indica 13Indigo 0Safari 10Sumo 11Xenon 0Nano 36

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

13 recalled indica model while 10 safari 11 sumo and 36 nano

Reasons for brand preferenceNo of people

Design 39Price 7

Brand image 22Good quality 25

39 replied they prefer brand due to design while 7 price 22 brand image and 25 quality

Major advertisement mediaNo of people

TV 46Magazines 25

Newspapers 36Radio 4

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

46 responded TV while 25 magazines 36newspapers and 4 radio

Awareness of brand ambassadorNo of people

Yes 6No 44

6 people are aware of tata`s brand ambassador while 44 are not aware of this

Overall opinion about TATANo of people

Very bad 0Bad 0

Neither bad nor good 0Good 4

Very good 96

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

96 said that there overall opinion about TATA was that it is very good while 4 said that it is good

Overall opinion about TATANo of people

Very unlikely 0Unlikely 0

Neither unlikely nor likely 0Likely 10

Very likely 90

90 people said they would very likely recommend TATA to other people and 10 said they would likely recommend TATA to others

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

FINDINGS

Tata Motors is number three in passenger car market after maruti-suzuki amp hyundai

Majority of the customers see TATA MOTORS with savings

Most of the customers spend large sum of money

Out of the samples people are highly convinced that TATA MOTORS will yield them better results

As the sales of Maruti grows as well as Hundairsquos santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations

Product will have a gradual progress Because most industries would wait for the response about the product from other Company

Customers were educated by me about fuel efficient cars by Tata Motors

Improving the marketing Strategies

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Analysis the business strategies of competitors

Making the decision to capture the rural market

More test drives should be offered

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer

Advertisement in mass media such as television newspapers and magazines are best means to spread awareness about brand repositoning

CONCLUSION

The study was conducted to measurerdquo Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market ldquo The study was conducted on 50 Customers A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market Based on the questionnaire data was collected and analyzed and it was found that the customers are willing to buy the Cars However they are also skeptic about it Findings are provided based on customer and market situation An earnest attempt has been made to make the study realistic and suggestive but it is not claimed that the findings and suggestions in the report are perfect

The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors are as follows

To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways

Invest more in RampD as customer expectations are changing rapidly

Make use of internet to spread awareness among consumers about the brand

Brand Appeal and Endorsement

Performance Characteristics

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

Quality

The two ways firms compete are by either a differentiation strategy or a low cost strategy However as weve seen the route TML has taken involves competing on both strategies While the Nano targets the price conscious common man the Jaguar Land Rover deal shows us that TML is now targeting brand conscious high-end consumers TML needs to have a similar differentiated strategies focusing separately on these brands

TMLrsquos vision is to be ldquobest in the manner in which we operate best in the products we deliver and best in our value systems and ethicsrdquo TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain The Tata Indica and Tata Nano are prime examples of the companyrsquos innovation capabilities and bear testimony to the strength of the companyrsquos RampD efforts This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally

APPENDICES

QUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following(1ndashPoor 2-Average 3-Above Average 4-Good 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom ndash

2) Which vehicle do you own

3) Did you ride some other vehicle before this 1048576 Yes 1048576 No

4) What is your experience from the previous vehicle 1048576 Satisfied 1048576 Not satisfied

5) Which is the most essential thing you prefer while buying vehicle 1048576 Price 1048576Mileage 1048576 Power steering 1048576 Others

6) Does TV ad appeal you

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

1048576 Yes 1048576 No

7) Do you like TV programs on car 1048576 Yes 1048576 No

8) Does brand value affect your decision on buying vehicle 1048576 Yes 1048576 No

9) How long have you been associated with Tata Motors

10) How would you rate TATA Motors on the following parameter

Strongly disagree

Disagree Neither agree nor disagree

Agree Strongly agree

a) Knowledgeable salesperson

b) Employees spent enough timewith youbefore salesDuring salesAfter sales

c) Availability of the product

d) Prices are affordable

e) Attractive discounts offered

f) Offered a test drive

g) Responds to complaints quickly

h) Careful with personal information

i) All the

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

commitments are fulfilled

11) What is your overall opinion about Tata Motors Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5

12) How likely would you recommend Tata Motors Very Unlikely Very Likely 1 2 3 4 5

REFERENCES

BOOKSbull ICFAI Journal of Marketing Management

bull ICFAI Journal of Brand Management

bull ICFAI Strategic Marketing Management

bull ICFAI Business Strategy

INTERNET

bull wwwtatacom

bull wwwtatamotorscom

bull httpenwikipediaorgwikiTata_motors

bull httpenwikipediaorgwikiTata_group

bull httpenwikipediaorgwikiIndian_automobile_industry

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom

bull httpwwwcarwalecomresearchcarstata

bull httpwwwtatamotorscomour_worldpress_releasesphpID=458ampaction=Pull

bull httpwwwtatamotorscomour_worldpress_releasesphpID=500ampaction=Pull

bull wwwscribdcom

bull wwwthehindubusinesslinecom