Tata Motors
Tata Motors
Tata Motors
Tata Motors
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CARGO MOTORS
Preface
The underlying aim of the seminar on contemporary issue as an integral part of MBA program is to provide the students with practical aspects of the organization working environment. Such type of presentation helps a student to visualize and realize about the congruencies between the theoretical learning in the premises of college and actual followed by the organization. t gives the knowledge of application aspect of the theories learnt in the classroom. The seminar pro!ect in TATA M"T"#S is a complete e$perience in itself% which provide me with the understanding. This has become as inspirable of my knowledge of management being learned in MBA program.
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Table of contents
Executive summary Introduction Objective of the study Scope of the study Evolution of automobile industry Segmentation of Automobile Industry History Production area Vision and Values !ata motors in international mar"et !ata #ae$oo %ommercial Vehicle !ata novus &orld truc" 'uture plans (%) matrix of !A!A motors Product profile Opportunities and threats
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ission Statement
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#ata analysis and interpretation Observation and finding *imitations Suggestions %onclusion references
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EXECUTIVE SUMMARY
&ocus of the research is to '(eveloping the understanding of the consumer)s preferences towards the various heavy vehicle options*
Company Profile
Tata Motors +imited is ndia)s largest automobile company% with revenues of #s. ,-.-/.01 crores 23S( 1.1 billion4 in 5667861. T is the leader by far in commercial vehicles in each segment% and among the top three in passenger in vehicles market with winning products in the compact% midsize car and utility vehicle segments. The company is the world9s fourth largest truck manufacturer% and the world)s second largest bus.
Dealer Profile
:argo Motors +imited was established by late Shri ;.<. =anda% founder :hairman > Managing (irector of :argo Motors. ?e started his career in the Automobile ndustry around /@01 and in /@-@ seeing his enterprising abilities Telco awarded a (ealership to the :ompany for Sales and Service of Tata Aehicles% for the remote area of Butch at Candhidham in Cu!arat. :argo Motors continued to set landmarks for the automobile trading wherever :argo Motors9 business e$panded be it Cu!rat% <un!ab% #a!asthan or (elhi > =:#.
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The study will be helpful to know the consumer behavior towards the TATA Motors and nature of heavy vehicle industry.
<rimary "b!ectiveD To find out the consumer preference criteria for heavy commercial vehicles and consumer)s perception > attitude towards TATA Motors.
Secondary "b!ective To find out the various options people consider for heavy vehicles To determining the factors that will help to achieve customer satisfaction.
Researc" met"o#olo$y
/. #esearch design 5. Sampling plan ,. nstruments of collection of data 0. (ata analysis and interpretation
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Concl%sion
ndian ?:A users are more concern about resell value% insurance facilities and brand name. <rice and fuel efficiency are other parameters of buying ?:A. Tata Motors has made a great brand image in the mind of people. <eople are highly satisfied with Tata Motors. ?igh resell value and availability of spare parts and service center are ma!or advantages of Tata Motors. Ee can say Tata Motors is in the position of Market leadership. But to sustain this position it need to make strong strategies to fight with upcoming players. At the same time it should make some new plans to fight with e$isting players.
&imitation
Eithin the limit period of time it is too difficult to cultivate in a whole market. :ost is also a ma!or factor of pushing back to us in our research.
Recommen#ation
The price of Tata Motors vehicle is higher as compare to Ashok +eyland. So company can design some low cost ?:A to fight the low cost rivals. Spare parts of Tata ?:A are costlier so customers buy low Fuality parts. :ompany should work on higher price of spare parts.
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I'TR(DUCTI('
The purpose of this training was to have practical e$perience of working within the organization% in the field of marketing and to have e$posure to the important management practices in field of marketing. Ehile writing this report the language has been keep simple and the entire (iscussion has been logical and has coherent outlines. The main motto of the <ro!ect work was )*%yin$ be"a!ior of "ea!y !e"icle %sers an# t"eir perception an# e+perience abo%t Tata Motors, for Tata Motors- t includes market research of consumer preference criteria for heavy commercial vehicles and in detail consumer 2Satisfaction4 responses analysis% by surveying number of consumers. The pro!ect report is divided into two partsD /4 &irst part consists market research for finding consumer)s preferences towards the various heavy vehicle options and their level of satisfaction from Tata Motors. 54 Second part consist some assignments like gathering data 2&leet information4 from various ?:A owners% knowing their future possibilities to find out potential customers and convince them to preferred :argo Motors 2 Authorized dealer of Tata Motors4. &or that purpose attended 5 days training programme organized by MERCURI .(&DMA'' /I'DIA0 P!t- &t#- for the marketing people of Tata Motors on 1o2 to ma3e an effecti!e sales call-
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The study will also be helpful to know the consumer behavior towards the TATA Motors and nature of heavy vehicle industry.
Primary (b ecti!e5
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To find out the consumer preference criteria for heavy commercial vehicles and consumer)s perception > attitude towards Tata Motors.
Secon#ary (b ecti!e5 To study the consumer)s buying behavior for buying or re!ecting heavy vehicles.
To find out consumer)s e$pectations for authorized dealers and service stations.
To compare Tata Motors with its competitor. Market Surveyed to find the demand of Tata Aehicles
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The study helps the company to know that what is the ma!or parameters consumer looks before buying a vehicle.
The study also enables the company to focus on the consumer)s preferences and e$pectations of the product which they offer.
The study also helpful to know that what are customer e$pectations from the authorized distributor offering a vehicle.
The research was conducted at :hottorgarh and Bhilwara #esign only. The survey was conducted by visiting different places like ndustries 2G.k. :ement% Birla :ement etc.4% Transport offices and meet with people like (rivers% attachment contractors etc.
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Introduction of company
The time has gone when people !ust wanted to have vehicles as a means of transportation but nowadays they are more aware about the vehicle model% their price and various other features which make them owner of a commodity which makes their neighbors feel envy of their choice. As ndia opened its gates for the foreign companies various automobiles giants entered our country seeking it as their target market. Ee ndians also got a wide variety of commercial vehicle to choose from. MA= entered in ndia with a view to capture the small market segment earlier captured mostly by two giant ndian companies8 Tata Motors and Ashok +eyland. Tata is one of the company in which the ndians trust like anything. t has diversified itself in a number of sectors gaining the trust and proving its competence in every such field. t had a wide choice of commercial wheelers to satisfy the varied ndian choices. n the other hand Ashok leyland is also a well known brand in ndia. =ow these two companies even have to fight for their e$istence in this automobile sector and had to produce in conte$t of giving tough competition to the various foreign companies. f we think about !ust these two companies they are also tough competitor of each other since ages. They had always tried to give their
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customers the products to cherish upon. There are products which are liked by the customers in ndia and worldwide.
IAuto finance boom8 more IHntry of M3+% better product% players 2foreign banks > with government support non banking companies% better schemes. ISeller)s Market I+ong Eaiting <eriods
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&utomobile
Wheeler
3 Wheeler
Passenger Vehicle
Commercial Vehicle
L.C.V.
".C.V.
!.C.V.
#ruc%
#railer
#i$$er
Bus
+.:.A. 2+ight :ommercial Aehicle4 M.:.A. 2Medium :ommercial Aehicle4 ?.:.A. 2?eavy :ommercial Aehicle4
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'ndia is emerging as one of the most attractive automotive mar%ets in the (orld) and is $oised to become a %ey sourcing base for auto com$onents.
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The ndian automobile industry is highly competitive with a large number of players in each industry segment. Most of the global ma!ors are present in the passenger vehicle and two wheeler segments. n terms of volume% two wheelers dominate the sector% with nearly 16 per cent share% followed by passenger
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vehicles with /, per cent. The industry had few players and was protected from global competition till the /@@6s. After government lifted licensing in /@@,% /7 new ventures have come up. At present% there are /5 manufacturers of passenger cars% - manufacturers of multi utility vehicles 2M3As4% @ manufacturers of commercial vehicles% /5 of two wheelers and 0 of three wheelers% besides manufacturers of engines. Eith the arrival of global players% the sector has become highly competitive.
1istory5
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Hstablished in /@0-% Tata Motors is one of the ,5 publicly listed enterprises infer the Tata Croup% ndia)s largest business conglomerate. Tata Motors collaborated with Cermany)s (aimler Benz in /@0- for /- years to manufacture commercial vehicles .Since then% Tata Motors has grown enormously and produces several vehicles through their main (ivisions8 <assenger :ars% 3tility Aehicles and :ommercial Aehicles. n /@-@% they set up their first and largest #>( centre in Gamshedpur . n /@./% e$ports had begun and the first truck was shipped to Sri +anka. Another #>( :entre was started in <une in /@.. to support automobile research which produced the first commercial vehicle by /@1, and light commercial vehicles three years later. Eith increasing sales popularity% they sold their one millionth vehicle by /@@/ .Their interest in tapping the diesel engine market was evident through their !oint venture with :ummins Hngine :o. nc in /@@, for the production of high horsepower and emission friendly diesel engine. The company)s manufacturing base in ndia is spread across Gamshedpur 2Gharkhand4% <une 2Maharashtra4% +ucknow 23ttar <radesh4 and <antnagar 23ttarakhand4. &ollowing a strategic alliance with &iat in 566-% it has set up an industrial !oint venture with &iat Croup Automobiles at #an!angaon 2Maharashtra4 to produce both &iat and Tata cars and &iat powertrains. The company is establishing two new plants at (harwad 2Barnataka4 and Sanand 2Cu!arat4. The company)s dealership network comprises over ,-66 touch pointsJ Tata Motors also distributes and markets &iat branded cars in ndia. Tata Motors% the first company from ndia)s engineering sector to be listed in the =ew ;ork Stock H$change 2September 56604% has also emerged as an
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international automobile company. Through subsidiaries and associate
companies% Tata Motors has operations in the 3B% South Borea% Thailand and Spain. Among them is Gaguar +and #over% a business comprising the two iconic British brands that was acFuired in 5661. n 5660% it acFuired the (aewoo :ommercial Aehicles :ompany% South Borea)s second largest truck maker. Today two8thirds of heavy commercial vehicle e$ports out of South Borea are from Tata (aewoo. n 566-% Tata Motors acFuired a 5/K stake in ?ispano :arrocera% a reputed Spanish bus and coach manufacturer% with an option to acFuire the remaining stake as well. n 566.% it formed a !oint venture with the Brazil8based Marcopolo% a global leader in body8building for buses and coaches to manufacture fully8built buses and coaches for ndia and select international markets. n 566.% Tata Motors entered into !oint venture with Thonburi
Automotive Assembly <lant :ompany of Thailand to manufacture and market the company)s pickup vehicles in Thailand. Tata Motors is also e$panding its international footprint% established through e$ports since /@./. The company)s commercial and passenger vehicles are already being marketed in several countries in Hurope% Africa% the Middle Hast% South Hast Asia% South Asia and South America. t has franchiseeL!oint venture assembly operations in Benya% Bangladesh% 3kraine% #ussia and Senegal. n Ganuary 5661% Tata Motors unveiled its <eople)s :ar% the Tata =ano% which ndia and the world have been looking forward to. A development% which signifies a first for the global automobile industry% the =ano brings the comfort and safety of a car within the reach of thousands of families. Ehen launched in ndia later in
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5661% the car will be available in both standard and delu$e versions. The standard version has been priced at #s./66%666 2e$cluding AAT and transportation cost4. The years to come will see the introduction of several other innovative vehicles% all rooted in emerging customer needs. Besides product development% #>( is also focusing on environment8friendly technologies in emissions and alternative fuels. True to the tradition of the Tata Croup% Tata Motors is committed in letter and spirit to :orporate Social #esponsibility. t is a signatory to the 3nited =ations Clobal :ompact% and is engaged in community and social initiatives on human rights% labour and environment standards in compliance with the principles of the Clobal :ompact. t has been a long and accelerated !ourney for Tata Motors% ndia9s leading automobile manufacturer. Some significant milestones in the company9s !ourney towards e$cellence and leadership from the glorious year of /@0- till date it is working on it success road.
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Production area
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VA&UES
Trust Hthics :ustomer :entric nnovation Team Eork Simplicity ntegrity
Tata Motors has proven e$cellence over the years through its technologically advanced products% market e$pansion% customer satisfaction and increasing sales. Tata Motors consistently strives to increase shareholder value% build stronger customer relations and work with its business partners to provide the best value for money. The company is also involved in accelerating the country)s economic growth and protecting the environment.
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1. Tata Dae2oo Commercial Ve"icle 8 n 5660% Tata Motors acFuired the (aewoo :ommercial Aehicle :ompany of South Borea. Tata remains ndia9s largest heavy commercial
vehicle manufacturer and Tata (aewoo is the 5nd largest heavy commercial vehicle manufacturer in South Borea.
;- TATA 'o!%s : To e$pand the product portfolio Tata Motors introduced the 5-MT CAE TATA =ovus from (aewoo)s 2South Borea4 2T(:A4 platform. Tata plans to leverage on the strong presence of T(:A in the heavy8tonnage range and introduce products in ndia at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a ma!or improvement in the #oad infrastructure was done through then =ational ?ighway (evelopment.
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3.
=orl# Tr%c38 Tata Motors unveiled its MEorld Truck) range% developed !ointly with Tata (aewoo :ommercial Aehicles of South Borea in May)6@. The developing infrastructure in ndia makes it possible for transporters to reap the benefit of trucks with higher power% speed and carrying capacity. The new range from Tata Motors will meet those needs. t will also help it penetrate international markets more effectively and competitively.
4%t%re Plans5
The commercial launch of these trucks in ndia is scheduled during September8 =ovember 6@. They will debut in South Borea% South Africa% the SAA#: countries and the Middle8Hast by the end of the fiscal. The trucks will be made at the Gamshedpur facility and at Cunsan in South Borea. The company e$pects international volumes to be at par with numbers in ndia.
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Product Profile
Tata Motors constantly looks for ways to offer the customer the best value for money. Beginning with a single truck model way back in the /@-6s% Tata Motors manufactures more that /,6 models of light% medium and heavy commercial vehicles ranging from two tones to 06 tones. Tippers% trailers% 0$0 off road vehicles% multi8utility vehicles8our range is vast.
Tr%c3s
LPTA 713 Power : 119 HP Weight : GVW 7650 kg Drive : 4x4 Available in Right Hand Drive & e!t Hand Drive LPT 1109 Power : 90 HP Weight : GVW 11900 kg Drive : 4x" Available in Right Hand Drive
LPT 1112 Power : 1"5 HP Weight : GVW 11990 kg Drive : 4x" Available in Right Hand Drive
SE 1613 Power : 1"5 HP Weight : GVW 15660 kg Drive : 4x" Available in Right Hand Drive
LPT 1613 Power : 1#0 HP Weight : GVW 15660 $16"00 kg Drive : 4x"
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LPT 1518/1618 Power : 17% HP Weight : GVW 14900 kg Drive : 4x" Available in Right Hand Drive & e!t Hand Drive
LPT 1918 Power : 175 HP Weight : GVW 19000 kg Drive : 6x" Available in Right Hand Drive
LPT 2515 Power : 14" HP Weight : GVW "5000 kg Drive : 6x" Available in Right Hand Drive
LPT 2518 Power : 176 HP Weight : GVW "5000 kg Drive : 6x" Available in Right Hand Drive
LPT 2516 Power : 157 HP Weight : GVW "5000 kg Drive : 6x4 Available in Right Hand Drive
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Tippers
SK 1613 Power : 119 HP Weight : GVW 16"00 kg Drive : 4x" Tipper )eter o!" #o$ : %&5 '(bi' LPK 1615 Power : 145 HP Weight : GVW 16000 kg Drive : 4x" Tipper )eter o!" #o$ : %&5 '(bi'
LPK 1518/1618 Power : 17% HP Weight : GVW 14900 kg Drive : 4x" Tipper )eter o!" #o$ : 6*%&5 '(bi'
LPK 2516 Power : 176 HP Weight : GVW "5000 kg Drive : 6x4 Tipper o!" #o$ : 1"*14 '(bi' )eter Available in Right Hand Drive & e!t Hand Drive
SAK 1212 Power : 119 HP Weight : GVW 1"1%0 kg Drive : 4x4 Tipper o!" #o$ : 4&5 '(bi' )eter
LPK 2518 T% Power : 176 HP Weight : GVW "5000 kg Drive : 6x4 Tipper )eter+ o!" #o$ : 14 '(bi'
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Trailers
LPS 3516 Power : 160 HP Weight : GVW #5"00 kg Drive : 4x" Available in Right Hand Drive
LPS &923 T% Power : ""7 HP Weight : GVW 49000 kg Drive : 6x4 Available in Right Hand Drive
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LPS &018 Power : 177 HP Weight : GVW 40"00 kg Drive : 4x" Available in Right Hand Drive
(pport%nities
There are very few competitors available in the market. So Tata has opportunity to capture the market.
:ompany has brand eFuity in the eyes of customers% so its product can easily penetrates in the market.
:ompany can come with less price vehicle to compete the Ashok +eyland.
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Hnter the rural areas and capture a large segment there.
Tata can launch more engine capacity vehicle to fight the competition.
To e$pand the product line Tata Motors has !ointly worked with Tata (aewoo to develop trucks such as =ovus and Eorld Truck.
T"reats
ncreases in prices of raw materials
Tata Motors face intense competition from its domestic as well as foreign competitors including Ashok +eyland% Man Motors% Swara! mazda% M>M and so on.
Threat of new competitors entering in the market like MA=% &ord etc.
Covernment regulations regarding vehicle emission levels% noise% safety and levels of pollutants generated by its production facilities% increasing share of &oreign partners.
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<ublic e$pectations which are hard to fulfill and are always changing. f not fulfilled can damage the company)s image.
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(uring our pro!ect% we visited many ?eavy commercial vehicle users in :hittorgarh and Bhilwara region. &rom the data% we observed and found thatN.
/. Tata Motors has made a great brand image in the mind of the customers.
5. Mostly customers purchase the vehicle on the basis of higher resell value. <rice is another factor which influences the customer more.
,. Tata Motors and Ashok +eyland are ma!or players in ?:A market. The percentage of Tata Motors is more than the Ashok +eyland.
0. <eople prefer Tata because of good resell value. And in case of Ashok +eyland people buy it because of less price.
-. Ashok +eyland provides better financial help to customers than Tata Motors.
.. Availability of spare parts and service center is more in case of Tata Motors as compare to Ashok +eyland.
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7. #espondents have problems from Tata Motors regarding insurance facilities most. Ehereas Ashok +eyland users face problem like availability of genuine spare parts.
1. Tata motors vehicle has strong resell value as compare to Ashok +eyland.
@. n terms of maintenance Ashok +eyland need less maintenance as compare to Tata Motors.
/6. &uel efficiency of Tata Motors is much higher than Ashok +eyland.
/5. According to those people who have both companies trucks Tata Motors vehicles are better in performance as compare to Ashok +eyland.
/,. Mostly customers e$cept from authorized distributers that they should charge reasonable price from the customer for service and spare parts.
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/0. n other facilities they e$pect facilities like service guarantee% accommodation and food facilities for driver% availability of genuine spare parts% less hidden charges etc.
&imitations
#ural area was the ma!or problem in respect of language and convenience.
&indings are based on the views e$pressed by the consumers. So it may suffer from biased pre!udices.
Some of the respondents were not co8operative and many seem to be having no interest because of recession.
The study has not been intended on a very large scale% having the possibility of errors% which cannot be ruled out.
The respondents knows us as people from Tata Motors thereby they could have been bias.
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The time was itself a limitation as it was tough to meet too many respondents in the given time span.
S%$$estions
/. Tata Motors has made a great brand image in the mind of people so company should take the advantage of this brand image to diversify the customers of other competitors.
5. <eople look for resell value at the time of purchasing any ?:A. And vehicles of Tata Motors have a good resell value. :ompany should try to get benefit of this advantage.
,. The price of Tata Motors vehicle is higher as compare to Ashok +eyland. So company can design some low cost ?:A to fight the low cost rivals.
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0. There are very few numbers of ?:A manufacturers who can be considered as real competitors of Tata Motors. So this fact goes in favor of Tata Motors. t should try to achieve the market leadership position.
-. &ord Motors is planning to enter into the ndian lu$urious ?:A segment. =ow Tata Motors need to develop some lu$urious ?:A to compete with &ord Motors. +ike it can develop some A.:. enable ?:A.
.. MA= is coming with high capacity engine and powerful vehicle which are developed according the need of ndian geographical conditions. So Tata Motors can develop some high engine capacity vehicle to penetrate the market.
7. Tata Motors should provide more financial help to their customers so that it number of customer can be increase and it can achieve market leadership position.
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1. Maintenance and servicing of Tata ?:A vehicles is costlier from authorized service center. So Tata Motors need to make it cheaper so that the customers will service their vehicle from authorized service center rather than local garages.
@. Spare parts of Tata ?:A are costlier so customers buy low Fuality parts. So company should work on higher price of spare parts.
1&. Mostly customers exce"t from aut!ori'ed distri$uters t!at t!ey s!ould c!arge reasona$le "rice from t!e customer for ser ice and s"are "arts. (n ot!er facilities t!ey ex"ect facilities li#e ser ice guarantee) accommodation and food facilities for dri er) genuine s"are "arts) less !idden c!arges etc. so com"any s!ould !el" t!e "ro iders to accom"lis! t!eir ex"ectations.
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Conclusion
Tata Motors has proven e$cellence over the years through its technologically% advanced products% market e$pansion% customer satisfaction and increasing sales. Tata Motors consistently strives to provide the best value for money. n ?:A segment of automotive industry in ndia Tata Motors has a Market share of .0K which is a highest of ?:A segment. t has high growth in international market also. ndian ?:A users are more concern about resell value% insurance facilities and brand name. <rice and fuel efficiency are other parameters people looks for before buying ?:A. Tata Motors has made a great brand image in the mind of people. <eople are highly satisfied with Tata Motors. ?igh resell value and availability of spare parts and service center are ma!or advantages of Tata Motors.
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But there are some hinders in the path of success of Tata Motors like international competition% new entries in ?:A segment and customer dissatisfaction from Tata Motors regarding finance facilities. Ee can say Tata Motors is in the position of Market leadership. But to sustain this position it need to make strong strategies to fight with upcoming players. At the same time it should also make some new plans to fight with e$isting players.
References
=ebsites
*oo3s
Marketing Management
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#esearch methodology S< = Selling
'e2s Papers
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