A Summer Project Report

On
MARKETING STRATEGY OF TATA NANO OF TATA MOTORS

A report submitted to Ishan Institute of Management & Technology, Greater Noida as a

partial fulfillment to full time Post Graduate Diploma in Management.
UNDER THE GUIDENCE OF
Mr. VIKASH ANAND
2011-2013

SUBMITTED TO

SUBMITTED BY

Dr. D. K. Garg,

PRABHASH KUMAR

Chairman,

ENR NO- BM 18032

Batch-18th

IIMT, Gr. Noida

Ishan Institute of Management & Technology

1A, Knowledge Park 1, Greater Noida, Dist. - G. B. Nagar (U.P.)
Website: www.ishanfamily .com
E-Mail: student@ishanfamily.com
1

PREFACE
All students learn theoretical subjects in their classroom, but as we are the management
students, apart from theoretical studies we need to get a deeper insight into the practical
aspects of those theories by working as a part of organization during our summer training.
Training is a period in which a student can apply his theoretical knowledge in practical field.
Basically, practical knowledge and theoretical knowledge have a very broad difference. So
this training has high importance as to know how both the aspects are applied together.
The study of management acquires most crucial position in the business administration. In
order to be successful, it is necessary to give priority to the management in an organization.
But it cant be denied that the study of management would be more educational, materialistic
and even more interesting, if it is to be paired with the work in organization as an employee.
The training session helps to get details about the working process in the organization. It has
helped me to know about the organizational management and discipline, which has its own
importance. The training is going to be a lifelong experience.
Management in India is heading towards a better profession as compared to other professions.
The demand for professional managers is increasing day by day. To achieve profession
competence, manager ought to be fully occupied with theory and practical exposure of
management. A comprehensive understanding of the principle will increases their decisionmaking ability and sharpens their tools for this purpose. During the curriculum of
management programmers a student has to attain a practical exposure of an organization on
live project in addition to theory he/she studies.
This Project Report has been completed in Partial fulfillment of my management Program,
Post Graduate Diploma in Marketing Management (PGDMM) in the company TATA
MOTORS Patna.

ACKNOWLEDGEMENT
The duration for summer training in the esteemed organization Bihar motors (Tata
motors)Darbhanga, started from 12th Of May and lasted up to 22th June, as a part of course
curriculum of PGDBM from Ishan Institute of Management, Gr.Noida. The experience in the
summer training was a homogeneous mixture of challenge, hard work, interest, and learning,
attaining knowledge and having a broad outlook of the real corporate world. It is true that a
single emperor can rule no kingdom. This was also applicable in case of my summer training.
I am highly thankful and grateful to be blessed by a number of well-wishers without whom,
success was lying unreachable to my whole time and I and effort of training would have run
into vain.
For successful accomplishment of task apart from hard work the most requisite is the right
direction & guidance. And for a student these become the major part for the study. This right
direction and guidance is provided by my guide, regional sales manager and all the
executives of the concerned department, in the form of necessary information & exhibits
that gave me a great help in completing my work.
First of all, I would like to thank Dr. D.K.Garg, Chairman, Ishan Institute of Management
and Technology , Gr. Noida for helping me since from assigning a marvellous and
challenging project and continuously assisting me while preparing the basic outlines of the
project, And also I would like to extent my sense of gratitude towards, Mr. Vikash Anand
(SalesManager) for selecting and allowing me to have summer training and also thankful to
all staff of Bihar motors Limited, Divisional Office Dharbhanga for their cooperation and
inspirational motivation. At last but not the least I express high degrees of gratitude to my
parents, friends for standing by my side whenever I felt it hard to perform.
In spite of all sincere efforts there might be some mistakes or errors in the due course of
project and in this report, any error or mistake committed is requested to look over
sympathetically and may please pointed out to improve my level of performance.

WITH REGARDS,
PRABHASH KUMAR
ENR No. BM 18032

DECLARATION
The summer training project on MARKETING, title MARKETING STRATEGY OF TATA
NANO OF TATA MOTORS under the guidance of MR. VIKASH ANAND is the original
work done by me. This is the property of the Institute & use of this report without prior
permission of the Institute will be considered illegal & actionable.

Date

Signature:
Prabhash Kumar
ENR NO. BM 18032

TABLE OF CONTENTS

INTRODUCTION
OBJECTIVE OF THE STUDY

CHAPTER 01:Indian Car Market:

Growth in the car market
New car
Second Hand car

CHAPTER 02:TYPES OF CAR

For Lower Income Group
For Medium class
For High class

CHAPTER 03:
Types of specific Cars:
Sports Cars
Ambulances
Transport Vechiles

CHAPTER 04:Prominent Manufactures and their products.

CHAPTER 05
Tata group of Companies in Car Market.
History of Tata Nano Car
Present scenario

CHAPTER 06
Marketing Strategy of Tata Cars
Advertising and Publicity

CHAPTER 07:

Special efforts in marketing of Tata Nano Car

Special Advertisig Compaign
Special Discount and Incentives to Customers
Incentives to Dealers
After Sales Service of Tata Nano Cars

CHAPTER 08: Camparision with other low cost cars

CHAPTER 09: Customers Opinion

Dealers/ sales executives opinion

CHAPTER 10:

Findings
Conclusion & Recommendations
Annexure
Bibliography.

EXECUTIVE SUMMARY
Marketing is a very crucial activity in every business organization. Every product produced
within an industry has to be marketed otherwise it will remain as unsold stock, which will be
of no value. I have realized this fact after completion of my summer training project. During
my training my objective of project was Visit the weak area where the Tata motors have less
market and try to know the reason in Patna There are other than this I have performed
marketing activities which includes demonstration of Schemes and Service in order to
increase its sales & demand.
The results of the study reveal that Market activation is a fundamental tool in the promotional
activities of any organization. In the Market Activation we apply all the marketing
activation material for the advertisement of the products and creates brand image for the
company. These activation elements also play a vital role in the launch of any new scheme
and product. All the advertising and promos are done with the help of these marketing
elements.

INTRODUCTION
Tata Motors Limited is India's largest automobile company, with consolidated revenues of
INR 1,65,654 crores (USD 32.5 billion) in 2011-12. 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. It is the world's fourth largest truck and
bus manufacturer.
The Tata Motors Groups over 55,000 employees are guided by the vision to be ''best in the
manner in which we operate, best in the products we deliver, and best in our value system and
ethics.''
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) 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's dealership, sales, services and
spare parts network comprises over 3,500 touch points.
Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile
company. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a
business comprising the two iconic British brands that was acquired in 2008. JLR supports
two state of the art engineering and design facilities and three manufacturing plants (Solihull,
Castle Bromwich & Halewood) in the UK. In 2004, Tata Motors acquired the Daewoo
Commercial Vehicles Company, South Korea's 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. Hispano's 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 company's 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 (SA) (Proprietary) Ltd., Tata
Motors' joint venture with Tata Africa Holding (Pty) Ltd., has its assembly plant in South
Africa at Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The plant can
assemble, from semi knocked down (SKD) kits, light, medium and heavy commercial
vehicles ranging from 4 - 50 tonnes.
8

Tata Motors is also expanding its international footprint, established through

exports since 1961. The company's commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle East, South East Asia, South
Asia, CIS, Russia and South America. It has franchisee/joint venture assembly operations in
Bangladesh, Ukraine, and Senegal.
The foundation of the company's growth over the last 66 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 4,500 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres 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, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a
new segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. 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.
In May 2009, Tata Motors 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. In October 2010, Tata Motors launched the Tata Aria, the first Indian fourwheel drive crossover. The Tata Aria redefines several benchmarks with its design and
technologies, offering class leading features that take comfort and safety to a new height.
Tata Motors is equally focussed 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 employability, education, health and environment. The activities touch the lives
of more than a million citizens. The company's 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.
Company history
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 commerical 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 1946 Tata Engineering undertook manufacture of 5000 'KC' broad gauge open wagons for
the Indian Railway. The Managing Agency Tata Sons was transferred to Tata Industries on
July 1, 1946. The Managing Agency system continued till it was abolished by an act of
Parliament in 1970.
In 1959 Tata set up its Research and Development Center set up at Jamshedpur and In 1960
The company's name, which was Tata Locomotive & Engineering Company Ltd., was
changed to Tata Engineering & Locomotive Company Ltd. In 1970 Consequent to the
amalgamation of Central Bank of India, Ltd., the company issued and allotted to the
shareholders of erstwhile Central Bank of India, Ltd., 11,39,208 - 7.75% mortgaged
debentures of Rs.100each on 1st October. Option was given to convert 50% of their face
value of a block of 5 debentures into one equity share of the Company at a premium of
Rs.150 per share. Consequently 3,19,825 debentures were submitted to convert 50% of their
face value into 63,965 No. of equity shares. These shares were issued on 31st March 1975.
Subsequently, 3,19,824 debentures of Rs.50 each were consolidated into 1,59,912 debentures
of Rs.100 each. As per the terms of issue, these debentures were to be redeemed at par
anytime between 1.10.1975 to 30.9.1982. In 1984 The Govt. approval was received for
increasing the vehicle manufacturing capacity to 35,520 vehicles per annum thereby bringing
the total licensed capacity to 78,000 vehicles. A letter of intent was received for setting up a
new plant for the manufacture of 9000 vehicles per annum in U.P which was later converted

10

into an industrial license.

Collaboration with M/s Hitachi Construction

Machinery Co. Ltd. , Japan, for manufacture of hydraulic excavators.

In 1985 All the dies and many of the machine tools and production devices required for the
new `TATA 407' and `TATA 608' series were produced by the Company in Capital Goods
Division. The company started making CNC machines in Capital Goods Division and its
engineers were receiving know-how and training from Nachi-Fujikoshi and Niigata of Japan
with whom the Company was collaborating in these fields. A new electronics centres was
also commissioned at Pune to support the manufacture and maintenance of this new
generation of CNC machines.
In 1989 The company acquired 25% of the market share in the light commercial vehicles.
The company signed an agreement with Hitachi Construction Machinery Co.Ltd. Japan for
the manufacture of a more advanced series of hydraulic excavators i.e. `EX'series.
In 1992 During these period two new models in the EX series of hydraulic excavators were
launched. And a 10 tonne pick and carry articulated crane, designed and developed in-house
was also introduced. With the help of Hitachi Construction Machinery Co. Ltd., EX-400
model Hydraulic excavator was introduced during the year. The Company undertook to
establish a joint venture with Mercedes-Benz to manufacture automobile products for sale in
India and to meet the needs of export markets. The project also included the possibility of
manufacture of a Mercedes Benz passenger car for the domestic and foreign markets.
Mercedes-Benz India Pvt. Ltd. was incorporated on November 1994 which commenced
initial assembly of cars in March 1995. 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
16.33%. Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata Holset Ltd., Tata Precision
Industries, Singapore and Nita Company Ltd., are the joint Ventures of the Company.
In 1994 During the year company introduced the Tata SUMO and LPT 709. The company
developed a new fuel injected, 4 cylinder petrol engine with the assistance of AVL Austria.
The Company successfully launched high performance, low emission and fuel efficient
medium commercial vehicles with cummins engines in Kuwait, Kenya, Zambia and Ghana.
The Company also proposed to introduce vehicles with cummin engines in the heavy
11

commercial vehicles segment. 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.
In 1995 a new double pick-up and Army Version of various Telco Vehicles were developed.
A new pero 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.
In 1998 Telco proposes to set up authorized service stations every 100 km on every highway.
The Company in its small car segment has launched "Tata Indica" which evoked an
overwhelming response in the Indian market.
In Oct 1999, the Company won the National award for R&D 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. The company obtained shareholders' approval for hiving off the division into a
100 per cent subsidiary, Telco Construction Equipment Company Ltd (TCECL), at an extra
general body meeting (EGM) held here in Mumbai today.
In 2004 Tata Motors launch an upgraded version Indica on January 15, 2004, in a bid to shore
up sales of the small car. In Auto Expo: Tata launched new version of Indica .
In 2006 Tata Motors launches Cliffrider. In 2007 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. Tata Motors has got a prestigious order from the Delhi
Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses.
Tata Motors is one of the largest companies in the Tata Group with a total income of US$
2.35 billion. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant
force in the Indian automobile industry. Tata Motors is India's only fully integrated

12

automobile manufacturer with a portfolio that covers trucks, buses, utility

vehicles and passenger cars. It would be no exaggeration to say that Tata Motors provides the
wheels for
India's growth.
Tata Motors has the unique distinction of giving India its first and only indigenously built
passenger car - The Tata Indica and the premium feature sedan - The Tata Indigo. The Indica,
launched in 1998, reached the 2,50,000 sales mark within 52 months of launch.
Tata Motors owes its leading position in the Indian automobile industry to its strong focus on
indigenization. This focus has driven the Company to set up world-class manufacturing units
with state-of-the-art technology. Every stage of product evolution-design, development,
manufacturing, assembly and quality control, is carried out meticulously. Their
manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow
in the North. Tata Motors Ltd (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM) is
a multinational corporation headquartered in Mumbai, India. Part of the Tata Group, it was
formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors has
a consolidated revenue of USD 16 billion after the acquisition of British automotive
brands Jaguar and Land Rover in 2008.
It is India's largest company in the automobile and commercial vehicle sector with upwards
of 70% cumulative Market share in the Domestic Commercial vehicle segment, and had a
0.81% share of the world market in 2007 according to OICA data. The OICA ranked it as
the 19th largest automaker, based on figures for 2007. and the second largest manufacturer
of commercial vehicles in the world. The company is the worlds fourth largest truck
manufacturer, and the worlds second largest bus manufacturer. In India Tata ranks as the
leader in every commercial vehicle segment, and is in the top 3 makers of passenger cars.
Tata Motors is also the designer and manufacturer of the iconic Tata Nano, which
at INR 100,000 (ex-factory) or approximately USD 2300, is the cheapest production car in
the world. Established in 1945, when the company began manufacturing locomotives, the
company manufactured its first commercial vehicle in 1954 in a collaboration with DaimlerBenz AG, which ended in 1969. Tata Motors is a dual-listed company traded on both
the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in

13

2005, was ranked among the top 10 corporations in India with an annual
revenue exceeding INR 320 billion.
In 2004 Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo
Commercial Vehicle, in South Korea. It also acquired Hispano Carrocera SA, now a fullyowned subsidiary. In March 2008, it acquired the Jaguar Land Rover (JLR) business from
the Ford Motor Company, which also includes the Daimler and Lanchester brands. and the
purchase was completed on 2 June 2008.

Tata

Motors

has

auto

manufacturing

and

assembly

plants

in Jamshedpur, Pantnagar, Lucknow, Ahmedabad, Sanad and Pune in India, as well as in

Argentina, South Africa and Thailand.

The Tata Nano is a city car manufactured by Tata motors. Made nd sold in India, the nano is
the cheapest car in the world today. Before it went on sale a price of 100,000 ,was widely
touted. Since its 2009 debut, the price has increased and while the Nano remains the lowest
cost four wheeled passenger vehicle in india . its significantly more expensive than a
motorcycle, a popular means of cheap transport in the country. I t i s m a n u f a c t u r e d
b y Tat a M o t o r L i m i t e d , t h e l a r g e s t automobile company in India. Its Chairman,
Mr Ratan Tata envisions that Tata Nano to become a Peoples car which is affordable by
almost everybody. Tata Nano was first launched in India on 1st A p r i l 2 0 0 9 a n d
expected to be in Indian market by July 2009. Since launching, it has
created a huge buzz all over India. Within the first two days of lunching, it has
14

received 5500 booking. The figures keep increasing every day since the
launching. What makes Tata Nano so cheap? Basically, by making things smaller,
lighter, do away with superficial parts and change the materials wherever
possible without compromising the safetyand environmental compliance. It is said that
Tata Nano has better millage than Toyota Prius andsame gas emission as a scooter.Tata
Nano will be imported to Malaysia by Tata Industries in parts. It will be
assemblein
itst w o
factories i.e
in Shah
Alam, Selangor and Pasir Gudang, Johor Bahru.
There are
f o u r distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang,
Johor Bahru andKuantan. All Tata Nano cars will be distributed through these distribution
centres only. Order can be made vide these distribution centres or its web site.There are
three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata
NanoLX. However, due to hot weather in Malaysia, only Nano CX will be
brought to Malaysia andw i l l b e s o l d h e r e . T h e s e l l i n g p r i c e o f N a n o C X
i n M a l a y s i a i s R M 1 3 , 7 0 4 p e r u n i t . I t i s estimated that gross profit for the first
year would yield xxx, second year xxx and third year xxx.Estimated monthly instalment
payment is xxx for seven years period. With this price, the targetmarket is very wide
which includes those with income RM 2000 per month, students, female workers
and scooters riders.

15

OBJECTIVES OF STUDY

The objectives of the study as regards the summer training

project are as follows:

To analyse the marketing strategy of TATA AUTOMOBIES IN

DARBHANGA . .
To know the different promotional strategies adopt by TATA

AUTOMOBILES..
To know the interest of Dealers towards TATA AUTO MOBILES product
How far Indian Auto market stands in the world of technology.
To know about the features and history of Tata Nano .
To study the basics of the Indian Auto market.& customers choices.
To study the evolution, function, importance of customer satisfaction in Indian

Auto market With help of TATA AUTOMOBILES.

To study the selling procedure, depositories financial process, transfer,
transmission procedure of vehicles in the market.

16

Mr. Ratan Tata Chairman

Sir Ratan Naval Tata ( Born on 28 December 1937) is an Indian businessman who became
chairman (1991 ) of the Tata Group, a Mumbai-based conglomerate company. He is a
member of a prominent family of Indian industrialists and philanthropists.
Among many other honours accorded him during his career, Tata received the Padma
Bhushan, one of Indias most distinguished civilian awards, in 2000 and Padma Vibhushan in
2008. He has also been ranked as India's most powerful CEO.
Early life
Ratan Tata was adopted to famous Tata, a prominent family belonging to
the Parsi community. Ratan is the grandson of Tata group founder Jamsedji Tata. His
childhood was troubled, with his parents separating in the mid-1940s when he was merely
seven and his younger brother Jimmy was five years old. Their mother moved out and both
Ratan and his brother were raised by their grandmother Lady Navajbai.
Tata started his schooling at Campion School and finished at Cathedral and John Connon
School both in Bombay.Ratan Tata completed his B.S. in architecture with structural
engineering from Cornell University in 1962, and the Advanced Management Program
from Harvard Business School in 1975.He is a part of the Alpha Sigma Phi fraternity.

Career at Tata Sons

When he returned to India in 1962 after turning down a job with IBM on the advice of JRD,
he was sent to Jamshedpur to work on the shop floor at Tata Steel with other blue-collar
17

employees, shovelling limestone and handling the blast furnace. In 1971, he

was appointed the Director of National Radio and Electronics (Nelco), which was in dire
straits when he came on board: with losses of 40% and barely 2% share of the consumer
electronics market. However, just when he turned it around (from 2% to 25% market share),
the Emergency was declared. A weak economy and labour issues compounded the problem
and Nelco was quickly near collapse again.
For his next assignment, in 1977 he was asked to turn around the sick Empress Mills, which
he did. However, he was refused a Rs 50 lakh investment required to make the textile unit
competitive. Empress Mills floundered and was finally closed in 1986.
In 1981, JRD Tata stepped down as Tata Industries chairman, naming Ratan as his successor.
He was heavily criticized for lacking experience in running a company of the scale of Tata
Industries.
In 1991, he was appointed group chairman of the Tata group. As group chairman, he has been
responsible for converting "the corporate commonwealth" of different Tata-affiliated
companies into a cohesive company. He has been responsible for the acquisition
of Tetley, Jaguar Land Rover and Corus, which have turned Tata from a largely India-centric
company into a global business, with 65% revenues coming from abroad. He also pushed the
development of Indica and the Nano. He is widely credited for the success of the Tata Group
of companies, especially after the liberalization of controls after the 1990s.
In August 2007, Ratan Tata lead Tata Group's acquisition of British steel maker Corus. At that
time, this was the largest takeover of a foreign company by an Indian company, and resulted
in Tata Group becoming the fifth largest steel producer in the world. According to the BBC,
however, some analysts criticized the move, saying that Tata Group had overpaid for Corus
and had prioritized national pride before its shareholders.Tata is set to retire in December
2012 to be succeeded by Cyrus Mistry, the 42-year-old son of Pallonji Mistry and managing
director of Shapoorji Pallonji Group.
Mr. Tata holds a B.Sc. (Architecture) degree with structural engineering from Cornell
University, USA and has completed the Advanced Management Program at Harvard Business
School, USA. He joined the Tata Group in 1962. As Chairman of Tata Industries Limited
since 1981, he was responsible for transforming the Company into a Group strategy thinktank and a promoter of new ventures in high technology businesses. In 1991, Mr Tata was
appointed Chairman of Tata Sons Limited, the holding company of the Tata Entities and
currently holds the chairmanships of major Tata companies. During his tenure, the Group's
revenues have grown over ten-fold to annualised Group revenues of $62.5 billion. Mr. Tata is
on the Central Board of the Reserve Bank of India, a Member of the Prime Minister's Council
on Trade and Industry besides being a member of various global councils. He is also the
chairman of two of the largest private sector promoted philanthropic trusts in India. Mr. Tata
is associated with various organisations in India and abroad.
The Government of India honored Mr. Tata with its second highest civilian award, the Padma
Vibhushan, in 2008. Earlier, in 2000, he had been awarded the Padma Bhushan. He has also
been conferred an honorary doctorate in business administration by the Ohio State University,
an honorary doctorate in technology by the Asian Institute of Technology, Bangkok, an
18

honorary doctorate in science by the University of Warwick, and an honorary

fellowship by the London School of Economics. Mr. Tata has been on the Company's Board
since over 19 years including 13 years in an executive capacity and is actively involved with
product development and other business strategies pursued by the Company. One of his
achievements include designing and developing an indigenous Indian car - "Indica" which
besides creating a record of sorts, is one of the leading products in its category in the car
market
Mr. Prakash Telang holds a Bachelor's Degree in Mechanical Engineering and is an MBA
from IIM, Ahmedabad. Mr. Telang has over three decades of functional expertise in the
automotive industry and machinery manufacturing. After spending the first three years of his
career with M/s Larsen & Toubro, he joined the House of Tatas through the prestigious TAS
(Tata Administrative Service) cadre. Ever since he has been with the Company, he is
responsible for product development, manufacturing, sales and marketing functions of the
Strategic Business unit of Light & Small Commercial Vehicles.
Mr. Telang was Executive Director (Commercial Vehicles) of the Company since May 2007
and was elevated as the Managing Director India operations w.e.f. June 2, 2009.
Board of Directors as Vice-Chairman
Mr. Ravi Kant holds a Bachelor of Technology degree from the Indian Institute of
Technology, Kharagpur and a Masters in Science from the University of Aston, Birmingham,
UK. Mr. Kant has wide and varied experience in the manufacturing and marketing field,
particularly in the automobile industry. Prior to joining the Company, he was with Philips
India Limited as Director of Consumers Electronics business and prior to which with LML
Ltd. as Senior Executive Director (Marketing) and Titan Watches Limited as Vice President
(Sales & Marketing).
Mr. Kant was also employed with Kinetic Engineering Limited and Hawkins Cookers
Limited. Mr. Kant has been with the Company since July 2000 as the Executive Director
(Commercial Vehicle Business Unit) and as Managing Director of the Company since July
2005. Upon retiring from his Executive position on June 1, 2009. Mr. Ravi Kant continues to
be on the Companys Board of Directors as Vice-Chairman.

Mr. N N Wadia Director

Educated in the UK, Mr. Wadia is the Chairman of Bombay Dyeing & Manufacturing
Company Limited and heads the Wadia Group.
He is also the Chairman/Trustee of various charitable institutions and non-profit
organisations. Mr. Wadia has been on the Company's Board since December 1998.

MR. S M Palia Director of the Company

19

Mr. S M Palia, a B.Com., LL.B., CAIIB and AIB (London) is a Development

Banker by profession. He was with IDBI from 1964-1989 during which period he held
various responsible positions including that of an Executive Director. He has also acted as an
advisor to Industrial Bank of Yemen, Saana (North Yemen) and Industrial Bank of Sudan,
Khartoum ( Sudan ) under World Bank Assistance programmes.
He was also the Managing Director of Kerala Industrial and Technical Consultancy
Organisation Limited, set up to provide consultancy services to micro enterprises and small
and medium enterprises. Mr. Palia is on the Boards of various companies in the industrial and
financial service sectors and is also actively involved as a trustee in various NGOs and Trusts.
He was appointed as a Director of the Company w.e.f. May 19, 2006.

Dr. Mashelkar
Dr. Mashelkar is an eminent chemical engineering scientist having recently retired from the
post of Director General from the CSIR, the largest chain of industrial research and
development institutions in the world with about 38 laboratories and about 20,000 employees.
During his tenure at CSIR for over 11 years, his leadership transformed CSIR into a user
focused, performance driven and accountable organisation.
Dr. Mashelkar is the President of Indian National Science Academy (INSA), National
Innovation Foundation, Institution of Chemical Engineers, UK and Global Research Alliance,
a network of 60,000 scientists from five continents and has been honored with honorary
doctorates from 26 universities, including Universities of London, Salford, Pretoria,
Wisconsin and Delhi.
Dr. Mashelkar has also been elected as Fellow / Associate of Royal Society (FRS), London,
National Academy of Science (USA) in 2005, US National Academy of Engineering (2003),
Royal Academy of Engineering, UK (1996) and World Academy of Art & Science, USA
(2000). Dr. Mashelkar has won over 50 awards and medals at national and international
levels, including the JRD Tata Corporate Leadership Award and the Stars of Asia Award
(2005).
In the post liberalised India, Dr. Mashelkar through leadership of various organisations/
Government Committees has propagated a culture of innovation and balanced intellectual
property rights regime and played a critical role in shaping India's S&T policies. The
President of India honored D.r Mashelkar with the Padmashri (1991) and the Padmabhushan
(2000).
He was appointed as a Director of the Company w.e.f. August 28, 2007.

Mr. Munjee

20

Mr. Munjee holds a Bachelor's degree and a Master's degree from the London
School of Economics, UK. His journey in financial sector began with HDFC where he served
for over 20 years at various positions including as its Executive Director. He was the
Managing Director of Infrastructure Development Finance Co. Ltd. (IDFC) up to March
2004. Presently he is the Chairman of Development Credit Bank (DCB) since June 2005 and
is also on the Board of various Multinational Companies and Trusts. Mr. Munjee has deep
interest for rural development, housing finance, urban issues, specially the development of
modern cities and humanitarian causes. Mr. Munjee is a Technical Advisor on the World
Bank-Public Private Partnership Infrastructure and Advisory Fund. He is also associated with
several public and private institutions as Chairman and Member of the Board or Trustee.

Mr subodh bhargava
Mr. Subodh Bhargava holds a degree in Mechanical Engineering from the University of
Roorkee and retired from Eicher Group of Companies as Group Chairman and Chief
Executive in March 2000. He was the past President of the Confederation of Indian
Industry(CII) and the Association of Indian Automobile Manufacturers; and the Vice
President of the Tractor Manufacturers Association. He was also a member of the Insurance
Tariff Advisory Committee, the Economic Development Board of the Government of
Rajasthan. He has held various prominent positions on various Chambers/Associations in the
field of research in engineering and technology; and technical and management education and
is currently associated as a Director of several Indian corporates, including Tata
Communications Limited and Tata Steel Limited.
He was appointed as a Director of the Company w.e.f. June 27, 2008.
Mr V K jairath
Mr. V K Jairath holds Bachelor of Arts Degree in Public Administration and Bachelor of
Laws Degree, both, from the Punjab University, Masters in Economics from the University of
Manchester, U K and joined Indian Administrative Service in 1982.
Mr. Jairath served as the Principal Secretary (Industries), Government of Maharashtra before
he took voluntary retirement from Government Services on March 31, 2008. He is presently
providing Consultancy and Advisory Services on Legal, Financial and Regulatory issues
related to Infrastructure Development and Industrial Investment to a US based fund and some
European Manufacturing Companies
Mr. Jairath has over 25 years of experience in public administration, rural development,
poverty alleviation, infrastructure, finance, industry, urban development, environmental
Management and a touch of the private sector occupying various important positions in the
Government of India and the State Government of Maharashtra.

21

He has held various positions as the Managing Director of SICOM, Secretary

to the Governor of Maharashtra, Municipal Commissioner of Kolhapur, Collector of Wardha,
besides being an Independent Director on the Boards of Public Sector Companies and Banks.
He is currently on the Boards of Maharashtra Airport Development Company and Avantha
Power and Infrastructure Limited.
He was appointed as a Director of the Company w.e.f. March 31, 2009.
Mr. Ranendra sen
Mr. Ranendra (Ronen) Sen, after graduating from St. Xaviers College, joined the Indian
Foreign Service in 1966. He has served in various capacities in our Embassies and Consulates
General in Moscow, San Francisco and Dhaka; as Deputy Secretary and Joint Secretary in the
Ministry of External Affairs and as Secretary to the Atomic Energy Commission. He was also
the Joint Secretary to successive Prime Ministers, responsible for foreign and defence
policies, atomic energy, space and other tasks, as assigned to him, from time to time. During
this period and thereafter he had a number of assignments as Special or Personal Envoy of the
Prime Minister for discussions with Heads of State or Government of neighbouring and other
countries.
Mr. Sen was also assigned as Ambassador to Mexico (1991-1992), Russia (1992-1998)
reunified Germany (1998-2002), as High Commissioner to the United Kingdom (2002-2004)
and as Ambassador to the United States (2004-2009).He is the first Indian to serve as envoy
to three P-5 and four G-8 capitals and has participated in about 180 multilateral and bilateral
summits.
He was appointed as a Director of the Company w.e.f. June 1, 2010.
Dr. Ralf speth
Dr. Ralf Speth was appointed to the post of Chief Executive Officer at Jaguar Land Rover on
February 18, 2010. He is on the Board of Jaguar Land Rover Limited, UK and is also the
Chairman and Chief Executive Officer of the two wholly-owned subsidiary companies,
Jaguar Cars Limited and Land Rover in UK.
Dr. Speth earned a Doctorate of Engineering in Mechanical Engineering and Business
Administration from Warwick University. Gaining a degree in Engineering from Rosenheim
University, Germany, Dr. Speth worked as a Business Consultant for a number of years
before joining BMW in 1980.
Prior to this appointment, Dr. Speth was Head of Global Operations at the International
Industrial Gases and Engineering Company, The Linde Group, having joined the Company as
Vice President of Operations in 2002. Having served BMW for 20 years, Dr. Speth joined
Ford Motor Company's Premier Automotive Group as Director of Production, Quality and
Product Planning.
He was appointed as a Director of the Company w.e.f. November 9, 2010.
Mr. Cyrus p. mistry

22

Mr Mistry is a graduate of Civil Engineering from Imperial College, UK and

has an MSc in Management from the London Business School. He joined the Board of
Shapoorji Pallonji & Company Limited as Director in 1991 and was appointed the Managing
Director, Shapoorji Pallonji Group, in 1994. He joined the Board of Tata Sons Limited in
2006 and was appointed as Deputy Chairman in November 2011. He is also a Director of
Tata Industries Limited, Tata Steel Limited, Tata Power Company Limited, Tata Teleservices
Limited and Tata Consultancy Services Limited.
He was appointed as a Director of the Company w.e.f. May 29, 2012.
Mr. P. M. Telang
Mr. Prakash Telang holds a Bachelor's Degree in Mechanical Engineering and is an MBA
from IIM, Ahmedabad. Mr. Telang has over three decades of functional expertise in the
automotive industry and machinery manufacturing. After spending the first three years of his
career with M/s Larsen & Toubro, he joined the House of Tatas through the prestigious TAS
(Tata Administrative Service) cadre. Ever since he has been with the Company, he is
responsible for product development, manufacturing, sales and marketing functions of the
Strategic Business unit of Light & Small Commercial Vehicles.
Mr. Telang was Executive Director (Commercial Vehicles) of the Company since May 2007
and was elevated as the Managing Director India operations w.e.f. June 2, 2009.

23

CHAPTER - 01.

INDIAN CAR MARKET:

GROWTH IN CAR MARKETNEW CAR CONCEPT OF TATA MOTORS.

24

INDIAN CAR MARKET

The automobile industry in India is one of the largest in the world and one of the fastest
growing globally. India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world with an annual production of more than 3.7 million units in
2010. According to recent reports, India is set to overtake Brazil to become the sixth largest
25

passenger vehicle producer in the world, growing 16-18 per cent to sell around
three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest
exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached
as Asia's third largest exporter of passenger cars, behind Japan and South Korea
beating Thailand.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the
second fastest growing automobile market in the world. According to the Society of Indian
Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by
2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in
car volumes with approximately 611 million vehicles on the nation's roads.
The majority of India's car manufacturing industry is based around three clusters in the south,
west and north. The southern cluster near Chennai is the biggest with 40% of the revenue
share. The western hub near Maharashtra is 33% of the market. The northern cluster is
primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the
India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and
BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's
automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the
country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor
near Pune, Maharashtra is
the
western
cluster
with
companies
like General
Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land
Rover, Fiat and
Force
Motors having
assembly
plants
in
the
area. Aurangabad with Audi, Skod and Volkswagen also forms part of the western cluster.
Another emerging cluster is in the state of Gujarat with manufacturing facility of General
Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki
and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkatta with Hindustan
Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive
manufacturing regions around the country.
The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5
million each year. The dominant products of the industry are two-wheelers with a market
share of over 75% and passenger cars with a market share of about 16%. Commercial
vehicles and three-wheelers share about 9% of the market between them. About 91% of the
vehicles sold are used by households and only about 9% for commercial purposes. The
industry has a turnover of more than USD $35 billion and provides direct and indirect
employment to over 13 million people.

26

The supply chain is similar to the supply chain of the automotive industry in
Europe and America.
Interestingly, the level of trade exports in this sector in India has been medium and imports
have been low. However, this is rapidly changing and both exports and imports are
increasing. The demand determinants of the industry are factors like affordability, product
innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high
and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the
advantages of this sector in India are yet to be leveraged.
With a high cost of developing production facilities, limited accessibility to new technology,
and increasing competition, the barriers to enter the Indian Automotive sector are high. On
the other hand, India has a well-developed tax structure. The power to levy taxes and duties is
distributed among the three tiers of Government. The cost structure of the industry is fairly
traditional, but the profitability of motor vehicle manufacturers has been rising over the past
five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about
80% but are recording profits after tax of about 6% to 11%
The level of technology change in the Motor vehicle Industry has been high but, the rate of
change in technology has been medium. Investment in the technology by the producers has
been high. System-suppliers of integrated components and sub-systems have become the
order of the day. However, further investment in new technologies will help the industry be
more competitive. Over the past few years, the industry has been volatile. Currently, India's
increasing per capita disposable income which is expected to rise by 106% by 2015 and
growth in exports is playing a major role in the rise and competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment with a market share of about
64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of
46%. Hyundai Motor India Limited and Mahindra and Mahindra are focusing expanding their
footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26% of
the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58%
of the three-wheeler market.
Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In
2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars.
Steel is the major input used by manufacturers and the rise in price of steel is putting a cost
pressure on manufacturers and cost is getting transferred to the end consumer. The price
of oil and petrol affect the driving habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour flexibility, and
capital efficiency. Having quality manpower, infrastructure improvements, and raw material
availability also play a major role. Access to latest and most efficient technology and
27

techniques will bring competitive advantage to the major players. Utilising

manufacturing plants to optimum level and understanding implications from the government
policies are the essentials in the Automotive Industry of India.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive
industry. The Indian government should facilitate infrastructure creation, create favourable
and predictable business environment, attract investment and promote research and
development. The role of Industry will primarily be in designing and manufacturing products
of world-class quality establishing cost competitiveness and improving productivity in labour
and in capital. With a combined effort, the Indian Automotive industry will emerge as the
destination of choice in the world for design and manufacturing of automobiles.The Indian
market offers endless possibilities for investors.
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in
very small numbers.
Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was
established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A
utility vehicles under license from Willys. The company soon branched out into the
manufacture of light commercial vehicles (LCVs) and agricultural tractors.
Following the independence, in 1947, the Government of India and the private
sector launched efforts to create an automotive component manufacturing industry to supply
to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s
due to nationalisation and the license raj which hampered the Indian private sector. After
1970, the automotive industry started to grow, but the growth was mainly driven by tractors,
commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers
entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number
of foreign firms initiated joint ventures with Indian companies.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international operations.
India's robust economic growth led to the further expansion of its domestic automobile
market which has attracted significant India-specific investment by multinational automobile
manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000
units and has since grown rapidly to a record monthly high of 182,992 units in October
2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with
only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in
Switzerland for example) this progression is unlikely to stop in the coming

28

decade. Congestion of Indian roads, more than market demand, will likely be
the limiting factor.
SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and
international, in India.

Type of Vehicle

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Passenger Vehicles

1,061,572

1,143,076

1,379,979

1,549,882

1,551,880

Commercial Vehicles 318,430

351,041

467,765

490,494

384,122

Three Wheelers

307,862

359,920

403,910

364,781

349,719

Two Wheelers

6,209,765

7,052,391

7,872,334

7,249,278

7,437,670

Total

7,897,629

8,906,428

10,123,988

9,654,435

9,723,391

Automobile Sales

Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in
March 2012 were 100,414 vehicles, a growth of 20% over 83,363 vehicles sold in March
2011. The company's domestic sales of Tata commercial and passenger vehicles for March
2012 were 95,047 nos., a 23% growth over 77,431 nos. sold in March last year.
Cumulative sales (including exports) for the company for the fiscal are at 906,768 nos. a
growth of 13% over 803,339 nos. sold last year.

Commercial Vehicles
The company's sales of commercial vehicles in March 2012 in the domestic market were
58,063 nos., highest ever in a month and a 17% growth compared to 49,753 vehicles sold in
March last year. LCV sales were 36,091 nos., a growth of 37% over March last year.
M&HCV sales stood at 21,972 nos., lower by 6%, over March last year.
29

Cumulative sales of commercial vehicles in the domestic market for the fiscal
are 529,980 nos., highest ever in a year and a growth of 19% over last year. Cumulative LCV
sales are 322,971 nos., a growth of 27% over last year, while M&HCV sales stood at 207,009
nos., a growth of 8% over last
year.
During the year, Tata Motors launched the Tata Divo Luxury Coach, the Tata Starbus Ultra,
the Tata Magic IRIS and the Tata Ace Zip.

Passenger Vehicles
The passenger vehicles business reported a total sale and distribution off take of 38,399 nos.
(36,984 Tata + 1,415 Fiat) in the domestic market in March 2012, higher by 30%, compared
to 29,520 nos. (27,678 Tata + 1,842 Fiat) in March last year. Sales of Tata passenger vehicles
for March 2012 are at 36,984 nos., highest ever in a month and a growth of 34%, over 27,678
vehicles sold in March 2011. Sales of the Tata Nano are 10,475 nos., highest ever in a month
and higher by 20% over 8,707 nos., in March 2011. The Tata Indica range sales were 11,420
nos., higher by 65% over March last year. The Tata Indigo range recorded sales of 8,295 nos.,
higher by 15% over March last year. The Sumo/ Safari/ Aria/ Venture range accounted for
sales of 6,794 nos., highest ever in a month and higher by 40% over March last year.
Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the
fiscal are 329,805 nos. (313,710 Tata + 16,095 Fiat), against 319,580 nos. (298,514 Tata +
21,066 Fiat) last year, a growth of 3%. Cumulative sales of Tata passenger vehicles were
313,710 nos., highest ever in a year and a 5% increase compared to 298,514 nos., over last
year. Cumulative sales of the Tata Nano are 74,527 nos., a 6% increase compared to 70,432
nos., last year. Cumulative sales of the Tata Indica range at 105,706 nos., are higher by 8%.
Cumulative sales of the Tata Indigo family are 77,733 nos., lower by 12%. Cumulative sales
of the Sumo/Safari/ Aria/ Venture range are 55,744 nos., higher by 32%.
During the fiscal, Tata Motors launched the Tata Sumo Gold, the Tata Indica Vista, the Tata
Aria 4X2 and the Tata Nano 2012
Jaguar Land Rover sales in India, continued their upward trend since launch in June 2009.
Cumulative sales of Jaguar Land Rover vehicles in India for this fiscal are at 2,288 nos., a
157% increase, compared to 891 nos., over last year.

During the fiscal, Jaguar Land Rover started assembly of the Land Rover Freelander 2 at the
plant in Pune, India. Jaguar Land Rover expanded its range by introducing the Range Rover
Evoque, the Jaguar XKR-S and the Jaguar 12 MY range.

NEW CAR CONCEPTS OF TATA MOTORS

TATA MEGA PIXEL
30

The Tata Megapixel, a range extended electric vehicle (REEV), is a new four-seater city-smart global
car concept for the performance-seeking and environment-conscious motorist anywhere in the world.
Combining a lithium ion phosphate battery and an on-board petrol engine generator for recharging on
the move, the Tata Megapixel offers a range of up to 900 km (with a single tank of fuel), pathbreaking CO2 emission of just 22 gm / km and fuel economy of 100 km / litre (under battery only
power). The at-home charging system is an as innovative induction charging system. The car has
simply
to
be
parked
over
the
induction
pad
for
charging
to
begin.
The class-leading 'Zero Turn' drive system of the Tata Pixel (shown at the 2011 Geneva Motor Show)

has been taken to an even higher level of manoeuvrability in the Tata Megapixel. The car's
electric drive has four independent electric motors, one at each wheel. When parking, the
electric hub motors drive the wheels in opposite directions, while the front wheels are turned
at an acute angle, enabling an exceptional 2.8 metre turning radius.
The Tata Megapixel is as distinctive in elegantly melding Indian uniqueness - in colours,
graphic themes or materials - with global styling preferences. The integrated lamp and grille
graphics sweep back over the front wheel arches to render a dynamic front end. It is echoed
on the panoramic roof, creating a harmony between sun & shade and sense of interior space.
The floating C-pillar and wrap-around belt line finisher integrate perfectly with the sculpted
body surface, flowing freely to the rear and encapsulating the 5-spoke wheel design .
A double-sliding door system and the car's B-pillar less design make entry/exit easy, besides
superb visibility. The battery layout and hub motors maximize the interior package. So, the
Tata Megapixel comfortably accommodates for adults with luggage. The front seats are
cantilevered on the central tunnel, releasing floor space for additional storage. Light leather
trims and rose metal details accentuate the joyous marriage of richness
of tradition and
innovativeness oftechnology.
This fusion is heightened by an advanced human machine interface (HMI). The console docking point
can connect a smart phone with the car. The built-in large touchscreen HMI, at the centre of the
instrument panel, thus becomes a common access point for the repertoire of the smart device and for
controlling the functions of the car, like temperature, ventilation, driving modes and performance.
The Tata Megapixel denotes Tata Motors' progression from the Tata Pixel, based on the Tata Nano and
a city car concept for Europe, reflecting the company's future design direction.

31

TATA PIXEL

Tata Motors presented at the 81st Geneva Motor Show the Tata Pixel, a new city car concept
for Europe. Based on the Tata Nano, the Tata Pixel - at just over three metres in length - is the
most package efficient four-seater in the world, comfortably accommodating four adults,
unlike a typical city car which is either a two-seater or can accommodate two adults and two
children only.
Speaking on the occasion, Mr. Carl-Peter Forster, Managing Director and Group CEO of Tata
Motors, said, "Tata Motors holds true to its belief that there is an opportunity in Europe for a
city car, which is optimal in space, manoeuvrability and environment-friendliness. The Tata
Pixel is a reflection of Tata Motors' idea of what such a car should be."
The Tata Pixel's ability to manoeuvre and park in the tightest of spaces is made possible by its
Zero Turn toroidal traction-drive Infinitely Variable Transmission (IVT), which assists
rotation of the outer rear wheel forwards and the inner rear wheel backwards, while the front
wheels turn at acute angles. The result is a turning circle radius of just 2.6 metres. The
'scissor' doors rotate upwards from the front to allow passengers to effortlessly enter or exit
the Tata Pixel, even in the tightest of spaces.
A forward sweeping roofline, with minimal front and rear overhangs, accentuates the
youthful styling. The Tata Pixel is also designed to provide a high level of connectivity. Key
functions are controlled by the driver's smart phone, running 'My Tata Connect' - the first
integrated human-machine interface (HMI) concept from Tata Motors.

32

TATA ARIA COUPE

This car is built on the Tata Aria roadster concept that Tata had unveiled at year 2000 Geneva
Auto Show. The Tata Aria coupe and roadster are on the same platform as Tata's B-segment
5-door hatchback car offering - the 1.4 litre Tata Indica.
The Tata Aria Coupe has been conceptualised to be powered by a high performance 1.6 litre 2.0 litre petrol engines, and has been styled in Italy

33

CHAPTER 02
TYPES OF CAR
FOR LOWER INCOME CLASS
FOR MEDIUM CLASS
FOR HIGH CLASS

34

TYPES OF CAR
Automobiles' body styles are highly variable. Some body styles remain in production, while
others become less common or obsolete. They may or may not correlate to a car's price, size
or intended market classification. The same car model might be available in multiple body
styles comprising a model range. Some distinctions, as with four-wheel drive
vs. SUV models or minivan vs.MPV models, the distinction between body style and
classification can be particularly narrow.
While body styles have historical and technical definitions, in common usage such definitions
are broad and may be ambiguous. For example, one person may call a 4-passenger sport
coup a "sports car", while another may define a sports car strictly as a two-place vehicle.

SEDAN

A sedan or saloon car is a passenger car in a three-box configuration and principal

volumes articulated in separate compartments for engine, passenger and cargo. The passenger
compartment features two rows of seats and adequate passenger space in the rear
35

compartment for adult passengers. The cargo compartment is typically in the

rear, with the exception of some rear-engined models, such as the Renault Dauphine Tatra
T613, Volkswagen Type 3 and ChevroletCorvair It is one of the most common car body
styles.

Sedans are a good choice for most automobile shoppers. The enclosed trunk offers security,
while the rear doors allow easy entry for rear-seat passengers. Most luxury vehicles are fourdoor sedans because they're more comfortable than most other body styles. The smallest
available in the US are sub-compact sedans like the Hyundai Accent and Chevrolet Metro.
Slightly larger are compact models like the Honda Civic and Ford Focus. Mid-size sedans
include the Honda Accord, Toyota Camry, Ford Taurus, and Chevrolet Lumina, while the
Ford Crown Victoria and Buick LeSabre are considered large sedans. Automotive marketers
have created a new "near-luxury" sedan category, meaning any new sedan priced between
$30,000 and $40,000, while the traditional luxury sedan costs over $40,000 when new. Nearluxury sedans are usually mid-sized; luxury sedans are usually large, though there are a few
exceptions to the size and price limitations.

COUPE

A coup or coupe is a closed car body style the precise definition of which varies from
manufacturer to manufacturer, and over time. Classic coups are hardtopped sports cars or
sporty variants of sedan (saloon) body styles, with doors commonly reduced from four to
two, and a close-coupled interior (i.e., the rear seat placed further forward than in a standard
sedan) offering either two seats or 2+2 seating (space for two passengers in the front and two
occasional passengers or children in the rear). The coupe could be a classic coupe or fourdoor coupe. This definition was accepted by german manufacters, german press and german
automotive environments, after presented in 2005 the first four-door coup Mercedes-Benz
36

CLS. In their opinion four-door coupe belongs exactly to coupe body style, not
sedan. By this change the previous definition of coupe has been reviewed as a classic.
However, in the most common public beliefs four-dour coupes are still often not coupe, but
as usuall luxury-sport sedans with classic coup-like proportions. The Definition
from Society of Automotive Engineers (SAE) is very accurate in measures. This definition is
not commonly known and as usuall not accepted by automotive environments and society. By
this definition some two-door classic coup cars are not really coupes, but they are two-door
sedans. Before the days of motorized vehicles, the word referred to the front or after
compartment of a Continental stagecoach. First coup cars were required to have only one
side window per side, but this consideration has not been used for many years. However the
definition of coupe is changing over time, it is not fair to expand it also for other variations of
coupe(without four-door version), because they are not or not yet accepted enough by other
manufacters, press and automotive environments. When car enthusiasts think of a coupe, they
usually visualize a car with aerodynamic styling, one or two rows of passenger seats and two
doors. Coupe is a popular marketing term, but it is also a specific category of automobile. The
body style, number of doors or rows of seats does not determine whether a car is classified as
a coupe.
STATION WAGON

A station wagon is an automobile with a body style variant of a sedan/saloon with its roof
extended rearward over a shared passenger/cargo volume with access at the back via a third
or fifth door instead of a trunk lid. The body style transforms a standard three-box design
into a two-box designto include an A, B, and C-pillar, as well as a D-pillar. Station wagons
can flexibly reconfigure their interior volume via fold-down rear seats to prioritize either
passenger or cargo volume.
The American Heritage Dictionary defines a station wagon as "an automobile with one or
more rows of folding or removable seats behind the driver and no luggage compartment but
an area behind the seats into which suitcases, parcels, etc., can be loaded through a tailgate.
When a model range includes multiple body styles, such as sedan, hatchback and station
wagon, the models typically share their platform drivetrain and bodywork forward of the Apillar. In 1969, Popular Mechanics said, "Station wagon-style ... follows that of the
production sedan of which it is the counterpart. Most are on the same wheelbase, offer the
same transmission and engine options, and the same comfort and convenience options."]
37

Station wagons have evolved from their early use as specialized vehicles to
carry people and luggage to and from a train station, and have been marketed worldwide.

HYBRID

A hybrid is a vehicle that derives its power from two sources. These power sources are
typically a combination of a bank of batteries and a gasoline engine. Recent technological
advancements have led to the introduction of diesel hybrids vehicles. Automakers can make
hybrids of any model of vehicle, including cars, trucks and SUVs.
The concept for most hybrids is similar. The engine charges the batteries and provides power
under peak load conditions, such as quick accelerations. The batteries, in turn, propel the
38

vehicle when power demands are minimal or constant such as short trips or
once the vehicle reaches highway cruising speed. In some recent models regenerative power
from the brakes can charge the batteries. The hybrid system is designed to automatically
switch from one power source to the other as required. There are generally 3 types of
hybrids: parallel hybrids, series hybrids, and mild hybrids

ROADSTER

39

This open-air vehicle usually has only one row of seats with a luggage
compartment in the rear that may or may not be configured into a rumble seat. A roadster
typically has a ragtop, but this design feature is changing as manufacturers are now
producing cars with removable or retractable hard tops. While a hard top isnt a traditional
design element of roadsters, modern car designs are expanding and redefining this classic
category of vehicle with sporty handling.

SPORTS UTILITY VEHICLES (SUV)

sport utility vehicle (SUV) is a generic marketing term for a vehicle similar to a station
wagon , but built on a light-truck chassis. It is usually equipped with four-wheel drive for onor off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not

40

all four-wheel-drive vehicles are termed as SUV. Some SUVs include the towing capacity of
a pickup truck with the passenger-carrying space of a minivan or large sedan. Since SUVs are
considered light trucks and often share the same platform with pick-up trucks, they were
regulated less strictly than passenger cars under the two laws in the United States, the Energy
Policy and Conservation Act for fuel economy, and the Clean Air Act for emissions. Starting
in 2004, the United States Environmental Protection Agency (EPA) began to hold sport utility
vehicles to the same tailpipe emissions standards as cars.
The term is not used in all countries, and outside North America the terms "off-road vehicle",
"four-wheel drive" or "four-by-four" (abbreviated to "4WD" or "4x4") or simply use of the
brand name to describe the vehicle like "Jeep" or "Land Rover" are more common. However,
not all SUVs have four-wheel drive capabilities. Conversely, not all four-wheel-drive
passenger vehicles are SUVs. Off-road vehicle is a broad class of vehicles, built primarily for
off-road use. However, this distinction is often not made by the general public and the media.
Although some SUVs have off-road capabilities, they often play only a secondary role, and
SUVs often do not have the ability to switch among two-wheel and four-wheel-drive high
gearing and four-wheel-drive low gearing. While auto makers tout an SUV's off-road prowess
with advertising and naming, the daily use of SUVs is largely on paved roads and in urban
areas.

CONVERTIBLE

41

Convertibles are simply cars without roofs. They can be referred to as ragtops because of
the vehicles fabric-covered retractable roof. The car has side windows that you can raise
along with the roof to create a weather-proof vehicle interior. A convertible has side windows
with a roll up and down design. This characteristic differentiates a convertible from an openair roadster.
A convertible roof is attached to an articulated frame that you can raise manually or electromechanically. The roof contains the rear window and secures it to the front windscreen. A
tonneau cover is used to protect the open areas of a convertible that are not in use. While
most convertibles use a soft top, there are current models that are equipped with removable or
retractable hardtops.
A safe and reliable car is essential to the success of most working families. Child care, jobs,
groceries, medical appointments, and so many other everyday tasks are often out of reach for
families without a car. Yet, buying, financing, and keeping a reliable car is fraught with
dangers for everyone and simply not possible for some families.
Working Cars for Working Families is fighting to ensure that families get a fair deal when
buying and financing a car and that the lack of a car does not stand in the way of families
ability to become economically successful. We seek to bring about policy reform to bring
transparency and fairness to the markets for used cars and car finance. We also promote
policy and practice solutions to help non-profit ownership programs that help struggling
families get a car.

LOWER CLASS CAR OF TATA MOTORS.

42

TATA NANO

Indian carmaker Tata Motors gave the world its cheapest car in the form of Nano.
This has become a benchmark for other carmakers who are now trying to come up with a rival for
TataNano.
Maruti Suzuki is one such company that is soon going to launch a new car called Cervo, which would
be available in Rs 1.5- to 2.2-lakh price range. This cheapest car fight has been an ongoing one and
there seems no end to it anytime in the future. While the carmakers slog it out to give you the cheapest
of all cheap cars let us take a look at the five cheapest cars currently present in the country. This is a
benchmark in engineering and has very basic features. The car gives excellent fuel economy and has a
very efficient engine. The car offers a rear-wheel drive with its two cylinders 623 cc engine

offering 33ps power. The engine is a multi-fuel injection petrol type. It is the first time the car
is using a two-cylinder gasoline engine along with a balance shaft added to it. Tata Nano has
features such as crumple zones, intrusion-resistant doors, seat belts, strong seats, anchorages,
rear tailgate glass attached to the body of the car and tubeless tyres.

43

TATA INDICA

The Tata Indica is a hatchback automobile range manufactured by Tata Motors of India. It is
the first passenger car from Tata Motors and is also considered India's first indigenously
developed passenger car. As of August 2008, more than 910,000 Indicas were produced, and
the platform had spawned off close to 1.2 million vehicles. The annual sales of Indica has
been as high as 144,690 units in 200607. Current monthly sales of Indica is around 8000
units. The models have also been exported to Europe, Africa and other countries since late in
2004.

44

MEDIUM CLASS CAR OF TATA MOTORS

TATA SUMO

Tata Sumo is a multi-utility vehicle produced by India's largest automotive company Tata
Motors. The vehicle was launched in 1994 and was one of the first passenger vehicles
designed in India. The Sumo received an extensive facelift in 2004 and was renamed
the Sumo Victain face of competition from relatively modern competitors. The Sumo is said
to have got its name from Mr Sumant Moolgaonkar, (Su-Mo) who was instrumental in a
number of revolutionary changes in TELCO and bringing about significant progress. The
Sumo is based on Tata Motors' pick-up platform and thus shared most of its other mechanics
with other Tata vehicles like the Tata Sierra, Tata Estate. The Tata Sumo originally came with
a 1948cc normally aspirated diesel engine. Later, an option of a turbocharged version of the
same engine was also offered.
Prior to the Sumo, the Indian market had stagnated, where the most modern vehicles in the
same class were from Mahindra and Mahindra, primarily derived from the original Willys
Jeep models. Upon release, Tata Sumo quickly captured a major segment of the utility
automobile market in India.
Within three years of its launch Tata Motors sold 100,000 Sumo vehicles.

45

HIGH CLASS OF TATA CAR

TATA SAFARI

The Tata Safari is an SUV produced by Tata Motors of India. It is the first SUV to be
designed, developed and manufactured "entirely" in India. [ The SUV was first released in
1998 with a 2.0 litre turbo I4 Diesel engine. It was later upgrade in 2003 as a part of next
improved Versions first EX and then EX2 along with Limited edition rollout with improved
interiors and Mechanics which included Power steering , fuel pump ,electricals By far the
TCIC EX2 2003-2006 models were the most reliable and refined TCIC safari The Safari was
extensively modified in August 2005, which included the addition of a new 3-litre DiCOR
engine along with modified interiors and exteriors. This 3-litre engine is the first diesel
engine from Tata Motors with commom rail technology. A 2-litre petrol engine[MPFi] was
also added to the range that same year. It was this modified version that won the Motor
Forum's Car of the Year for 2007, in the SUV category. Voted by the users in India, it beat out
rivals such as the Toyota RAV4, Land Rover Freelander and Honda CR-V.
In October 2007 Tata unveiled the 2.2-litre Safari DiCOR which had an increased power
output of 143 PS (105 KW). But it was shortly replaced by the more advanced DiCOR 2.2
VTT (Variable Turbine Technology) engine which had a power output of 140 PS (103 kW) at
4000 rpm and a torque output of 320 Nm (236 lbfft) at 1700 rpm. It is widely regarded as
the best engine used by Tata Motors.
Tata recently launched a new variant of safari called Safari GX. The new Safari GX sits just
below current top end variant Safari VX. Safari Gx gets dual tone exteriors, unique leather
cum fabric upholstery, Reverse Guide System (without a camera which along with the Screen
in the Internal Rearview Mirror is only available in the VX variant). Another new feature is
indicators on the Outer Rear View Mirrors.

46

TATA ARIA

The Tata Aria is a crossover SUV produced by Tata Motors of Tata. Tata Aria was launched
on 5 January 2010 at Auto Expo, Delhi, and was launched to customers on 12 October 2010
and priced at 1.3 to 1.5 Million Indian Rupees or ($25K to $30K ) It is based upon the Tata
Xover concept showcased in 2006 Geneva Motor Show. Tata Aria was also a series of
concept cars introduced by Tata Motors at Geneva Auto Show 2000
Launched in the Indian markets in October 2010, the Tata Aria with the Crossover tag,
represented something absolutely fresh and unattempted in the Indian passenger car market.
Becoming the first real crossover with 4X4 capabilities, the Aria gained quite a bit of
recognition primarily because of its multi-functional performance capabilities coupled with
its great styling and its upmarket comfort quotient.
Tata has also introduced a 4X2 version, of its flagship Aria model, which not only makes its
model range more comprehensive, but also results in a price drop from 13.25 lakhs for the
base model of the 4X4 model, to 11.61 lakhs for the base 4X2 model.
Seeing the potential for better business and increased sales of the Aria model with the
introduction of this 4X2 model, Mr. P M Telang, Managing Director - India Operations, Tata
Motors said, "As the first Indian 4x4 crossover, the Tata Aria has broken a new path for Tata
Motors. With the introduction of the Aria 4x2, we make the range comprehensive. The
pleasure of the Aria, combining the finesse of a sedan with the muscle of an SUV, can now be
availed by a larger customer segment."
Even in its 4x2 avatar, the Aria offers its customer the same muscle and power output through
its advanced 2.2 litre Direct Injection Common Rail (DICOR) engine, with variable turbine
technology and 32-bit ECU that delivers 140 PS power and 320 Nm torque.
47

The Tata Aria 4x2 has been launched in three trim levels, the Aria Prestige at
the top end, the Aria Pleasure and the base level Aria Pure variant. The Tata Aria Pride has
been reserved only for the 4x4 segments.

CHAPTER 03
TYPES OF SPECIFIC CARS
SPORTS CARS
AMBULANCES
TRANSPORT VEHICLE

48

SPORTS CARS
In an Australian automotive context, as categorised by the Federal Chamber of Automotive
Industries (FCAI), a sports car is classed as a vehicle that is powerful or fast, sleek or coupe
like in style, a convertible, a coupe-convertible, and with a maximum of two doors not
including a rear lift back or hatchback door unless we are referring to the Freestyle doors as
featured on the Mazda RX-8 sports car.
Traditionally, a sports car was usually a two-door (2DR) coupe, with low-slung styling for
racy looks, rear-wheel drive (RWD) and front-engined.
A sports car could also be a convertible a soft top (there were no real retractable hardtop
convertibles until the late 1990s) that could be flung back and down in an instant for that
classic (and clichd) wind in your hair feeling.
As safety legislation temporarily persuaded carmakers to abandon the soft top in the 1970s,
hatchbacks rose to the fore, and many of the sleeker models started to fall under the sports car
category. Typical examples included the Toyota Celica and Renault Fuego.
Most of these family car-based sports cars were front-wheel drive (FWD) or well on their
way to switching from RWD to FWD, and so in the 1980s and 1990s, consumers were given
a huge choice of inexpensive coupes that were classed as sports cars.
However, with the turn to the 20th Century, many traditional sports car buyers matured into
SUV buyers, or settled for fast sedans or wagons that did not compromise on rear-seat and
cargo space in the way those old-time sports cars and coupes did.
So many of the coupes of 20 years ago have morphed into small-car based convertibles today,
and most have a folding hardtop roof that mixes the visual excitement of a coupe with the
fresh-air feel of a convertible but without the accompanying safety, security and
compromised refinement issues.
Meanwhile, there have been mainstream oddities like the Holden Monaro, more serious
performance and driving dynamic-focused sports cars ranging from the evergreen Mazda
MX-5 to Porsche 911, Lamborghini and Bentley, luxury personal coupes and convertibles
defined by the BMW 3 Series and Saab 9-3, and raw-and-ready club specials like the Lotus
Elise and Caterham. All are defined as sports cars

49

Sports cars are divided into three categories according to the FCAI Sports
Under $80,000 (the most popular), Sports Over $80,000, and Sports Over $200,000.

Would you believe diesels models are now classed as sports cars? Petrol-electric hybrid
sports cars are also looming, as carmakers seek to combine eco-sheik with style thats sleek.
All sorts of engines are used in sports cars from 1.3-litre rotary engines to V12 petrolpowered behemoths, with four, five, six, eight and 10 cylinders in between.

Sports cars are available in front-wheel drive (FWD), rear-wheel drive (RWD), and all-wheel
drive (AWD) and thats also known as 4WD (four-wheel drive).

Sports cars are often the lightest and greenest models in a carmakers portfolio, simply
because less weight means more performance and improved driving dynamics. So there is a
happy positive green knock-on effect at work here.
The petrol-electric hybrid sports cars promise to bring some real fuel consumption and
emissions outputs cuts over the next few years, particularly among the lardier of the sports
car fraternity.
Diesel sports cars are here now, and while they do have lower CO2 carbon dioxide levels
than many petrol engines, as well as improved fuel economy, they also emit more nasty NOX
Nitrogen Oxide.

Sports cars are generally more fun to drive, more fun to be seen in, and more fun to look at.
Smaller sports cars are often perfect for the city because they can be so light and
manoeuvrable.
Sports cars can have a positive image effect on the person inside one.
Sports cars can be a great self-reward gift for yourself especially if you love to drive hard
and fast.
Sports cars are often the first to get a new technology.

Sports cars often cost a lot more to buy, service, run and insure.
Sports cars are most susceptible to changes in fashion, and so can become deeply
unfashionable much more quickly than a sedan. This is because many designers like to give
50

their creations the hottest look going at the time and fashion is a very fickle
and finicky mistress.
Sports cars are often inflicted with tight packaging, poor luggage space, a hard ride, noisy
exhausts and highly-strung engines.
Sports cars are often a sign of a mid-life crisis especially very expensive ones.

Price is no real reliable sign of greatness in a sports car some of the worlds best are among
the cheapest (such as the Mazda MX-5).
Sports cars do seem to have more differentiating characteristics among each other than other
types of automobiles, and many are very well developed look at how well the 45 year-old
Porsche 911 concept is still holding.

The most popular sports cars in their respective categories include the BMW 3 Series Coupe
and Coupe-Convertible, Porsche 911, Volkswagen EOS, Audi TT and Holden Astra
Convertible.

Tata Motors Limited is India's largest automobile company, and is revered as one of the
most dynamic, reliable and futuristic automobile manufacturers of the world. Tata Motor cars
and vehicles are favored worldwide for their versatile technology features and utility. With
more than 130 auto models spanning a wide range of passenger cars, commercial vehicles,
and multi-utility vehicles, Tata Motors stands out as a premiere growth booster of Indian
automobile industry. Tata Motors cars are not the only popular renditions of the legendary car
maker. The company's name comes first in many other categories as well. For instance, Tata
commercial vehicles have a very dominant presence in the domestic automobile market. Tata
passenger vehicles, Tata mid size cars and Tata utility vehicles also have significant market
positioning. In fact, Tata Motors is the second largest in the aforesaid segments, and the
world's fifth largest in the medium and heavy commercial vehicles segment.
Over 3.5 million Tata vehicles including Tata Motors cars are presently plying on Indian
roads since 1954. The company's manufacturing plant is located at Jamshedpur, Sanand, Pune
and Lucknow. The popular brands of Tata Motors, or to be more specific, the popular Tata
Motors cars models in India include Tata Indigo, Tata Indica, Tata Safari and Tata Sumo.
Tata Motors believe in constant evolution in technology. So, it keeps lunching new vehicles
in the market. Tata Nano was a landmark launch in the small car category. Of the new Tata
cars that are to be launched soon in India, is Tata Aria. A cross-over between a multi-utility
vehicle and SUV, Tata Aria car is going to be a big hit amongst Indian car lovers who vie for
the versatility of Tata cars.

51

Tata Motors-owned Jaguar on Thursday said it will re-enter the sports segment with its 'FType' super car by the middle of next year that will be offered in a range of variants with
differentpetrol engines.
"We showed the C-X16 concept in September 2011 and the reaction to it has been so positive
that we've accelerated our development of an all-new Jaguar sports car. That car will be
called the F-Type and it will be unveiled in production form later this year," Jaguar
Cars Global Brand Director Adrian Hallmark said in a statement.
Speaking at the New York auto show, he said F-Type will mark the British marque's re-entry
into a segment that it has been absent from for too long.
"Full F-Type technical and range details will be announced later in 2012. It will go on sale in
mid-2013," the company said. The company will produce the new vehicle at its Castle
Bromwich plant in the UK, it added.
Elaborating about the new product, Jaguar said the F-Type will be an all-aluminium
convertible and a two-seater car.
"A range of petrol engines will be available, including a new powerplant family, and all will
deliver stunning sports car performance ... The core appeal of Jaguar's cars is their sporting
heart and that heart will beat stronger than ever before in the F-Type," it added.
The F-Type will join the existing range of cars, the XF saloon and Sportbrake, XJ saloon and
XK convertible.
On Jaguar's re-entry into the sports car segment, Jaguar Director of Design Ian Callum said:
"The C-type, D-type and E-type Jaguars were all sports cars that held true to principle in their
era, and the F-TYPE will hold true to that same principle in its time, a time that is soon to
arrive."
Jaguar Land Rover (JLR) had earlier announced to roll out 40 new products in the next 4-5
years. Last month, JLR had raised 500 million pound (over Rs 4,000 crore) through issue of
bonds.
Earlier, the company had said in an investor update at Tata Motors website said that it is
expected to increase its planned 1.5 billion pound investment in this fiscal on new products
and ramping up capacities.
In April 2011, JLR had said it will invest 1.5 billion pound every year for the next five years,
mainly on product development as it looks to catch up with global luxury car makers and
position itself as a top premium brand.
52

Besides, JLR will invest 3.5 billion yuan (over Rs 2,800 crore) in its recentlyannounced joint venture with Chery Automobile in China to commence local assembly
there.
The company is currently investing 355 million pound in an engine plant in the UK. It also
planning to set up an engine manufacturing facility in India.

This is Tata Aria.

"The market is small for a sports car in India but the Aria would be very attractive in the
international market. We are looking for a location to manufacture this even outside India'',
Mr Tata said. There were a number of issues to be sorted out before the Aria could be product
ionised such as whether the body should be in steel or fibre glass. Plans for launch of the
Magna, a premium segment sedan which was displayed at the last Auto Expo in 2000, appear
to have been put on the backburner. Mr Tata said: "There are a number of players in that
segment now. We will wait for the dust to settle in the market and will take a decision at an
appropriate time.''

Tata Magna

53

Aug 29, 2000: Tata group chairman Ratan Tata had said that the launch of the Magna was an
year to 18 months away at the Auto Expo in the capital in January this year (i.e. latest by mid2001). However, Dube said that the Magna would be commercially launched only around
mid-2002. Magna would be positioned in the premium car segment.

Rajah Motors Kazwa

KOCHI, July 17 1998: Rajah Motors, part of the Rs 50-crore beedi major Rajah Group, will
roll out Kazwa, the first multi-purpose vehicle (MPV) in the country on Saturday. The
company will start full-fledged commercial production of the vehicle next month. The
Chavakkad-based small scale unit is also planning to introduce a small car by the year 2000.
Directors of the company said here on Friday that the eight-seater car had all the latest
features like power windows, power steering, dual air conditioner, central locking and alloy
54

wheels. The custom-made car has been priced in the range of Rs 6.5 lakh to Rs
lakh.

Rajah
Motors
1.5
Lakh
car
KOCHI, July 17 1998:The company's production unit in Chavakkad at present has a capacity
to produce 150 cars per annum. This year's target is 50 cars for which the booking is already
over,
they
added.
They said the company, despite being in the small-scale sector and highly labour-intensive in
nature, has not so far got any excise duty exemptions. If the government extend duty
concession, that would help the finances of the company in a big way. That would also help
the company to slash the price of the vehicle considerably, they added.
They said the company would bring out a mini four-seater car by the turn of the century. They
said the two-cylinder diesel car would be priced around Rs1.5 lakh.

AMBULANCE
55

56

A world of space and

comfort is what makesthe
recently launched Tata
Winger stand out from
other commercial vehicles. Tata Motors has unveiled this Maxi Van that offers the comfort of
a car and the spaciousness of a bus. Tata Winger is available in 11 variants and is priced
between Rs. 4.70 Lakh to Rs. 6.55 Lakh.
Tata Winger has been designed to meet the demands for commercial passenger vehicles in the
rural
and
urban
Model

Cummins 6BT - 5.9 TC

Type

6 cylinder inline, watercooled direct injection

turbo-charged
diesel
engine

Max Engine Output

119 HP @ 2500 rpm

Max Torque

400 Nm (40.8 mkg) at 1400 - 1700 rpm

Capacity

5883 CC

Emission Norms

Euro I

Gearbox
Model

GBS 40

No of Gears

5 Forward 1 Reverse

Suspension
Type

Semi elliptical leaf spring at front and rear

Shock Absorber

Hydraulic double acting telescopic type at front

axle and at rear axle

Frame
Ladder type heavy duty frame with riveted /
bolted cross members. Side members are of
channel section depth - 219mm (max) width - 58
mm(max)
Brakes
Service Brake

Dual air over hydraulic

system
57

Clutch
Type

Single plate dry friction

type

CHAPTER 5

Tata group of companies in car market

58

At Tata's Engineering Research Center , near the bucolic surroundings of the Tata Motor
factory in Pune , India there are two cars on display.
One is a complete prototype of the Nano, the $2,500 compact car Tata unveiled in January,
which has all the essentials and safety features of India's higher-priced automobiles along
with a sticker price that will forever change the economics of low-cost cars. The other is a
neat bisection, with the car's innards clearly visible.
"Every day we invite people to come and examine the car and ask: 'How can we make more
savings?'" says Tata Motors Chief Executive Ravi Kant.

Inside the Tate Group Empire

Tata Company Profile

That quest to build the world's cheapest car hasn't ended. The Nano [ Images ] should be
available this fall, but the mission began back in 2003, when Ratan Tata [ Images ], chairman
of Tata Motors and the $50 billion Tata conglomerate, set a challenge to build a "people's
car."
Tata gave an engineering team, led by 32-year-old star engineer Girish Wagh, three
requirements for the new vehicle: It should be low-cost, adhere to regulatory requirements,
and achieve performance targets such as fuel efficiency and acceleration capacity. The design
team initially came up with a vehicle which had bars instead of doors and plastic flaps to

59

keep out the monsoon rains. It was closer to a quadricycle than a car, and the
first prototype, Wagh admits candidly, "lacked punch."
Even a bigger engine, which boosted the power by nearly 20%, was still dismal. "It was an
embarrassment," says Wagh.
But the failure was also the catalyst for Tata's decision to build a proper car, not an upgraded
scooter on four wheels or anything flimsy or cheap-looking. "We didn't want an apology for a
car," says Ravi Kant. "We were conscious of the fact that whether it was a $2,500 car or not,
it ought not to have looked like a $2,500 car."
Becoming a part of history
The tale of the creation and design of the Nano is one of innovation and ingenuity, both inside
and outside Tata's own organization.

IT Offshoring South of the Border

Top 10 'Greensourcers'

First, Ratan Tata called a meeting of his top parts suppliers and, after showing them the early,
earnest but flawed prototypes, asked them to help. Companies including Germany's
[ Images ] Bosch, which makes the computer that is the heart of car's engine, were skeptical.
So were local Indian players.
But Tata persisted, pointing out that not only could a company's specific developments for the
Nano help to make history but they could also improve their companies' businesses and
bottom lines. Soon most of Tata's traditional suppliers were on board.
Rane Group, for instance, makes a rack and pinion steering system. It focused on reducing
the weight of the materials used, replacing the steel rod of the steering with a steel tube -- a
major cost-reducer. Typically, the product is made of two pieces, but it was redesigned as one
to save on machining and assembling costs.
According to Harish Lakshman, director of the $317 million company: "The world has seen
this sort of integration of two pieces into one, but applied differently -- not for a new car, and
not to reduce costs."
GKN Driveline India, a subsidiary of global auto parts leader GKN, made the driveshaft -the component that transfers power from the engine to the wheel. The team spent a year
developing 32 experimental variants to create the perfect driveshaft for the Nano. It roped in
designers from the company's French and Italian operations and changed the design to make
it lighter and easier to manufacture.
For the Nano's rear-wheel drive system, GKN designed a smaller diameter of shaft, which
made it lighter and saved on material costs. "We thought if we were successful in this, we

60

could dictate terms to the market, and every other car manufacturer would want
to work with us," says Rajendra Ojha, chief executive of GKN Driveline India.

Taking the pulse of the project

All the suppliers have similar stories. And although none would disclose specific cost
savings, most stuck to Tata's mandate to cut costs. That was, as Kant acknowledges, the
biggest hurdle for the company -- "then, now, and in the future," -- particularly as the price of
raw materials like steel have more than doubled in the past four years, and the company has
to follow new, tighter industry regulations.
Kant, who recently led negotiations to acquire luxury auto brand Jaguar Land Rover
[ Images ], has little time to get involved in day-to-day details of Tata's many projects.
However, with the Nano, "every cost, every component price, has to be run by me," he says.
Coordinating the vendors with Tata Motors' team was a whole new exercise in logistics.
Wagh quickly realized it was necessary to bring everyone on board, "else it leads to lastminute heartache and delays."
Every morning, he would spend an hour or two on the floor of the Pune factory, insisting that
everyone involved -- designers, manufacturing teams, vendor development people -- be there
to accelerate decision-making and problem-solving. "We had to have the pulse of the project
and know exactly where the hurdles were," Wagh remembers.
Over time, Wagh's team grew to comprise some 500 engineers, an impractically large group
to gather on a daily basis. So instead, a core team of five engineers gathered every day at 3
p.m. to discuss the latest developments. Each engineer represented a different part of the car:
engine and transmission, body, vehicle integration, safety and regulation, and industrial
design.

Attention to detail pays off

Fitting the parts of the car together required lots of little, head-breaking details, recalls Wagh.
The engine, for instance, was designed three times. Initially, Wagh thought they'd buy an offthe-shelf engine and so studied all the small-capacity engines available. They were
unsuitable, so in early 2005 he decided to build his own.
The first was a 540 CC engine that, when fitted on the prototype, lacked the necessary power.
So its capacity was increased by 9%, then by another 9%, before Wagh finally settled on a
623 CC engine. Then the foot pedal had to be realigned to create more legroom.
=The body had to be changed because Ratan Tata, over six feet tall himself, wanted it to be
easy for tall people to get in and out of the car. "Imagine the plight of the body designer -- he
61

went through hundreds of iterations, then at the last minute the car length was
increased by 100 millimeters!" Wagh says.
The attention to detail paid off: When the car rolled onto the dais at the Auto Show in New
Delhi [ Images ] in January, and Ratan Tata stepped out of the driver's seat with ease, it made
an immediate impact.
What shook the automobile world most was the fact that the designers seem to have done the
impossible: The sleek, sophisticated Nano doesn't look flimsy or inexpensive. If it had been
an upgraded scooter on four wheels, Tata still would have been applauded for making a
family of four safer on Indian roads. The Nano, however, affords both safety and status.
"The innovation wasn't in technology," Kant recalls. "It was in a mindset change." The Nano,
he adds, has put an end to all discussions of having variants of scooters or quadricycles as
passenger vehicles on India's roads.

Organizational innovation
Still, the story of the Nano is not confined to its impact on the auto industry. It's a tale that
illuminates the India of today -- an eager, ambitious nation with a combination of engineering
talent, a desire for low costs and value, and the hunger of young managers looking to break
from a hidebound corporate environment.
Indeed, the team that worked on the Nano -- on average aged between 25 and 30 -- has
helped to flatten Tata Motors' stodgy, multilayered management structure, which has resulted
in an unexpected side-benefit Wagh calls "organizational innovation".
The factory in Singur, Bengal, is still being built, and machinery is being installed. Wagh now
spends most of his time away from his Pune home, supervising the work at Singur leading up
to the launch date in fall.
Tata Motors is determined to succeed in its mission, Ravi Kant says. "We are hungry for
growth -- and innovation is a by-product of that."

No other car launch in the history of Indian auto industry has received as much global press
as the "people's car", the Tata Nano. For good reason. A report from Business Today
No other car promised to revolutionise motoring as the Nano has. Clever marketing apart,
some frugal and out-of-the-box engineering has gone into the making of Nano. BT's Krishna
Gopalan and Kushan Mitra met the Nano's design team at the Engineering Research Centre in
Pune
to
put
together
this
report.
It's not yet a week since Ratan Tata unveiled his dream car at the Auto Expo in Delhi to
unprecedented global media, well, hysteria, but at Tata Motors' sprawling plant in Pimpri near
62

Pune, it's business as usual. There are no 'we've-done-it' banners festooned

inside or outside the plant, no puffed-up chests striding around the facility, or even smug grin
on anyone's face. At the south-western corner of the 160-acre facility, home to the
Engineering Research Centre, where a young chief engineer and his team of 500-odd
engineers have slogged over the last four years, putting in 12-14 hours a day, six days a week,
there's even less of back-patting. Instead, Girish A. Wagh, barely 37 years old, is thinking five
years ahead - he's already got some designs ready for the small car, Nano, variants that Tata
Motors
could
offer
in
the
years
ahead.
Typical engineers? You could say so. But what's atypical about Wagh and his team is their
handiwork. They've just created automotive history, that too out of one of the most unlikely
places on earth. They've taken their Chairman Ratan Tata's dream - much like what Henry
Ford had in the beginning of the 20th century in the US-of offering Indians ultra low-cost
cars and turned it into a reality. The "people's car" unveiled on January 10 at the Auto Expo
was stunningly good looking for the price tag it sports: a bare Rs 1 lakh, or $2,500, for the
base model. The feat has so shaken the automotive world-from Detroit to Stuttgart to
Nagoya-that Tata Motors' rivals, who never really considered it as a serious threat in
passenger
cars,
are
scurrying
back
to
their
own
drawing
boards.
That's hardly surprising. At Rs 1-lakh, the Nano is the world's cheapest car and holds out the
same promise as Ford's Model-T did when it was launched in 1908 at a price of $825, and
which is to make motoring affordable to millions of Indians when it hits the road in
September or October this year. Even its 'deluxe' model, featuring air-conditioning and power
windows, won't cost more than Rs 1.2 lakh on road-a good Rs 80,000 cheaper than the
cheapest car currently in the country, the Maruti 800.

Passenger cars and utility vehicles

Concept vehicles

Commercial vehicles

Military vehicles

63

Passenger cars and utility vehicles

Tata Prima concept car

64

Tata Nano Europa

Tata Starbus Low Floor 1610

Tata Marcopolo buses in the Delhi BRT

Tata Aria

Tata Sierra
The Tata Sierra, and later Tata Sierra Turbo, was a three door sport utility vehicle produced
by Tata Motors of India.. It was based on the Tata TL. It was the first automobile to be
designed and produced in India. The vehicle also forms the basis for DC Design's Arya
Concept vehicle. The Sierra is powered by a 1.9 litre turbodiesel. Initially it had a naturally
aspirated engine but later versions were Turbocharged. The later version had distinguishable
plastic fender flares and remodelled headlamps shared with Tata Estate. Tata used to provide
4WD models on special request.

65

Engine specifications

Type: Four-cylinder, in-line, longitudinal location, diesel

Displacement: 1948 cc + 750 cc turbo

Bore Stroke: 83 90 mm (3.3 3.5 in)

Cylinders: Four

Maximum power: 90 PS (66 kW; 89 hp) @ 4500 rpm

Maximum torque: 19 kgm (190 Nm; 140 lbft) @ 2500 rpm

Compression ratio: 22:5:1

Transmission: Manual

Number of gears: 4 Forward, 1 Overdrive and 1 Reverse

Dimensions

Length: 4,410 mm (173.6 in)

Width: 1,710 mm (67.3 in)

Ground clearance: 170 mm (6.7 in)

Wheelbase: 2,400 mm (94.5 in)

TATA SUMO

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Tata Sumo is a multi-utility vehicle produced by India's largest automotive

company Tata Motors. The vehicle was launched in 1994 and was one of the first passenger
vehicles designed in India. The Sumo received an extensive facelift in 2004 and was renamed
the Sumo Victa in face of competition from relatively modern competitors. The Sumo is said
to have got its name from Mr Sumant Moolgaonkar, (Su-Mo) who was instrumental in a
number of revolutionary changes in TELCO and bringing about significant progress.
The Sumo is based on Tata Motors' pick-up platform and thus shared most of its other
mechanics with other Tata vehicles like the Tata Sierra, Tata Estate. The Tata Sumo originally
came with a 1948cc normally aspirated diesel engine. Later, an option of a turbocharged
version of the same engine was also offered.

Prior to the Sumo, the Indian market had stagnated, where the most modern vehicles in the
same class were from Mahindra and Mahindra, primarily derived from the original Willys
Jeep models. Upon release, Tata Sumo quickly captured a major segment of the utility
automobile market in India.

Sumo Victa Turbo DI Specifications

Tata Motors launched the upgraded version of the Spacio Gold Plus variant. Christened as
Sumo Victa DI, the power-train was carried over from the Spacio and the body styling and
interiors were carried from Sumo Victa viz the positioning of the spare wheel was changed
from the rear tailgate to the underbody of the vehicle. This model comes in 7 and 9 seater

67

variants and is very much popular with private transporters & contract taxi

vendors because of its lower cost and good fuel economy.

Tata Sumo Grande
Sumo Grande (2008-2010
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 features
completely different body work. It lies below the Tata Safari in Tata's product portfolio. The
Sumo Grande was designed in the UK by Concept Group International LTD.

The 2008 Sumo Grande

Sumo Grande MK II (2010)
It is an upgraded version of Sumo Grande. The Grande MK II seeks to deliver added value to
customers through substantial changes in the exteriors and interiors combined with
improvements in drivability, ride and handling and comfort. The exteriors have been
accentuated by a new chrome lined grill, side rub rails with chrome inserts and indicators on
ORVMs. The interiors have been refreshed to give the vehicle a completely new,
contemporary look with a two tone theme complemented by a new faux wood centre console
and new fabric up holster . The changed drive ratio in the Grande MK II gives a boost to low
speed performance in city driving conditions. While a modified suspension ensures a
comfortable ride, particularly for second and third row occupants, optimised anti-roll bars
68

reduce body roll to a minimum during cornering. The NVH levels have been
further refined.

Tata Grande (2011-present)

Tata has now dropped the "Sumo" tag from this product. It has now renamed as "Tata
Grande". New product line now comes with body stickers emphasizing the new name "Tata
Grande". Another change from product line up is that the turbo model has been discontinued.

TATA SAFARI
The Safari was extensively modified in August 2005, which included the addition of a new 3litre DiCOR engine along with modified interiors and exteriors. This 3-litre engine is the
first diesel engine from Tata Motors with common rail technology. A 2-litre petrol engine was
also added to the range that same year. It was this modified version that won the Motor
Forum's Car of the Year for 2007, in the SUV category. Voted by the users in India, it beat out
rivals such as the Toyota RAV4, Land Rover Freelander and Honda CR-V.
In October 2007 Tata unveiled the 2.2-litre Safari DiCOR which had an increased power
output of 143 PS (105 KW). But it was shortly replaced by the more advanced DiCOR 2.2
VTT (Variable Turbine Technology) engine which had a power output of 140 PS (103 kW) at
4000 rpm and a torque output of 320 Nm (236 lbfft) at 1700 rpm. It is widely regarded as
the best engine used by Tata Motors.
Tata recently launched a new variant of safari called Safari GX. The new Safari GX sits just
below current top end variant Safari VX. Safari Gx gets dual tone exteriors, unique leather
cum fabric upholstery, Reverse Guide System (without a camera which along with the Screen
in the Internal Rearview Mirror is only available in the VX variant). Another new feature is
indicators on the Outer Rear View Mirrors.

Tata Safari seen on a road in Cyprus

69

A 2006 Safari Dicor LX 3.0 in white.

A 2009 Safari 2.2 DiCORVX 4x4

First generation
Launched in 1998 in Turbo Diesel form, the Safari had 87 PS (64 kW) power. It came with a
synchromesh forward five-speed manual gearbox, with a 4X4 option. However, it was
regarded to be grossly underpowered, and had a lot of body roll.
The new Tata Safari standing for "Direct Injection Common Rail engine") is powered by a
3000 cc inline-four cylinder engine that develops 116 PS (85 kW) at 3000 rpm and 300 Nm
(221 lbfft) of torque between 1600 and 2000 rpm. The engine is taken from the Tata 407, a
truck manufactured by Tata Motors. The new engine is mated to a five-speed gearbox, with a
new, sporty gear lever.

2007 revision
Tata displayed the Euro 4 compliant 2.2-litre engine with 140 PS (103 kW) and 320 Nm
(236 lbfft) of torque at the 2006 Bologna Motor Show. It was launched on October 5, 2007.
It has some improved interior features like two-tone upholstery and leather seats. The high
end version of the Safari comes with full safety features like airbags and ABS with EBD.
Additional features like rear AC vents, reversing camera, DVD player with LCD screens in
the front seats headrests and dimming lights too are also available as an option. Four-wheel
70

drive options are available on EX, GX and VX variants which, uses a Borg
Warner shift on the fly transfer case.
India's leading automotive portal CarWale recently did a series of off-road trails on a Tata
Safari DiCOR 2.2 44. The only modifications done to the Safari were removal of running
boards and addition 15 inch rims shod with 235/75 R 15 Radial tyres. The off-road
performance of the Safari was highly praised by them.
The car has been described as slow, unrefined and "pedestrian" when used on the roads,
although its off-road performance has been given praise by some reviewers. European
reviews have also drawn attention to the standard of the interior and the original engine being
underpowered, sluggish, noisy and idling poorly when cold. With respect to its power and
handling, British television program "Fifth Gear" referred to the Safari as having "about as
much finesse as a three-legged giraffe".

TATA INDICA

The Tata Indica is a hatchback automobile range manufactured by Tata Motors of India. It is
the first passenger car from Tata Motors and is also considered India's first indigenously
developed passenger car. As of August 2008, more than 910,000 Indicas were produced, and
the platform had spawned off close to 1.2 million vehicles. The annual sales of Indica has
been as high as 144,690 units in 2006-07. Current monthly sales of Indica is around 8000
units. The models have also been exported to Europe, Africa and other countries since late in
2004
On 30 December 1998, Tata Motors (previously called TELCO) introduced the most modern
car ever to be designed by an Indian company: the Indica. Initially introduced with the
caption "More car per car," the ad campaign focused on roomy interiors and affordability.
Within a week of its unveiling in 1999, the company received 115,000 bookings. In two
years, the Indica became the number one car in its segment.
Partly designed and developed by Tata Motors, it is a five-door compact hatchback with a
1.4 L petrol/diesel I4 engine designated as 475DL internally. This is a homegrown engine
which is derived from the engine used by Tata in their line of pickups and SUVs earlier but
with a reduced stroke. The original engine was designated as 483DL which stood for 4cylinder and 83 mm stroke.

71

The Indica offered options like air conditioning and electric windows, which were previously
restricted to only up market imported cars in India. Three years later the Indica was exported
to European markets for the first time, and from 2003 the Indica was badge engineered and
sold in the UK as the Rover CityRover. This vehicle ceased production in April 2005 when
MG Rover went bankrupt, and did not resume production when new owners Nanjing
Automobile launched its own versions of the MG Rover range in 2007.

Indica V1 and V2 (1998-present) (1st generation)

Tata Indica, India

72

When first launched, the Indica prompted many complaints from early purchasers, who
claimed that the vehicle did not deliver horsepower and gas mileage as promised. In response
to the customer complaints, Tata Motors re-engineered the internals of the car and launched it
as Indica V2 (version 2), which solved most of the complaints and emerged as one of the
most sought after cars in the Indian automobile industry. Later, it was again updated, now
marketed as the "Refreshingly New Indica V2". This was followed by the next variant of
Indica, current in early 2008, called the Indica V2 Xeta Petrol, which delivers 70 PS (51 kW;
69 hp) of power at a fuel efficiency of 14 km/l (about 33 mpg U.S., fuel consumption of 7.1
L/100 km) under standard test conditions. In Indian city conditions, fuel economy can drop to
about 10 km/l (about 23.5 mpg U.S., 10 L/100 km).
Since the V1 and V2 which were visually identical, Tata had applied styling updates to the
Indica in 2004 and 2007.
In India, three versions were available with different trim levels.

Indica V2 1.4 L diesel (naturally aspirated engine in the DLE and DLS;
turbocharged option in the DLS; turbocharged and intercooled DLG and DLX; DiCOR
engine offered in the DLS and DLG);

Indica V2 Petrol 1.4l Petrol Carbureted (Indica 2000) 1.4L petrol with Hitachi
ECU, 1.2L and 1.4L petrol with Bosch ECU (Indica Xeta), 1.2 L LPG (GLE & GLS
versions only);

Indicab 1.4 L naturally aspirated diesel (DL and DLE), a low-price car with the
same framework but fewer features and luxuries, aimed at cab and contract transport
business fleets. Very popular among transport business people.

Originally offered with 1.4L petrol and diesel engines, a turbocharged diesel engine was
introduced in October 2005; a 1.2L petrol engine in November 2006 and a DiCOR (Direct
Injection Common Rail) diesel version of Indica V2 was launched in January 2008. It
features 16 valves, double overhead camshafts, a variable geometry turbocharger and an
intercooler. The top end GLG, GLX, DLG, DLX versions and the turbo and DiCOR diesel
engines, as well as the 1.4L petrol engines have been phased out with the introduction of the
next generation Indica Vista. The turbocharged engine was reintroduced in August 2010 as
the turbomax in the DLE and DLS Trim levels in metros where BS IV norms were
introduced. Later in March 2011, the Indica eV2 was launched with a 'CR4' engine similar to
the earlier DiCor engine with features like Auto-Drive Assist and Clutch-To-Start and claims
a class leading ARAI mileage of 25kmpl
A compressed natural gas (CNG) was launched in 2001.[ It is offered as an option through
OEM Bedini kits offered by Shrimanker Gas Services India on the Indica V2 XETA.
Faced with numerous CNG-related complaints, TATA organized a systematic recall and
retrofit of Bedini equipment which included a new improved Lamda sensor / electronic
control unit, Bedini emulator and new wiring harness approved and tested by both TATA and
73

ARAI (Automotive Research Association of India) from 2831 May 2007.

With the new system, TATA aims to improve gas delivery and performance.
In its home market, the Indica offers good interior capacity and competes with the
Maruti Suzuki Swift, Maruti Wagon-R, Maruti Alto, the Hyundai Santro and the Fiat Palio.
The diesel versions, however, have little or no competition since few diesel cars exist in the
Indica's price bracket.
The slightly higher-than-average net weight makes for a slightly more comfortable ride
compared to lighter cars. Fit and finish continue be criticized compared to offerings from Fiat
and Maruti.
In the UK a badge engineered version was imported by the MG Rover Group and sold as
the Rover CityRover. Other popular foreign markets include South Africa where the Indica
and the Indicab models (known as B Line) are sold.
The Indica platform spawned a number of variants, including the Tata Indigo threebox saloon which includes the shorter Indigo CS, Long wheelbase XL and the Indigo Marina
estate.
Accessories and optional extras The following range of accessories were available for the
Indica:

Power steering

HVAC - Heater, ventilation, and air conditioning

Turbocharger and intercooler

Alloy wheels

Power windows

Central locking with remote key-less entry

Ventilated disc brakes

4 spoke steering wheel

Tinted windshields

Powerful fog lamps

Rear spoiler with integrated LED stop lamp

Luxurious beige/black interiors

Night adjust rear-view mirror

74

Chrome tip on silencer, chrome lining on grill and bonnet

Audio warningsdriver/passenger seat belt warning, door open warning

Tachometer (selected models)

child lock on rear doors (selected models)

alloy pedals

Indica Vista
The Indica Vista was unveiled at the 9th Auto Expo in New Delhi. The Indica Vista is not a
facelift of the Indica. It is built on a platform and shares nothing with the existing Indica. This
new version is bigger than the previous Indica, it is 3,795 mm (149.4 in) long with a
wheelbase of 2,470 mm (97.2 in). The Indica Vista has two new engines, a 1.3 L Quadra Jet
common rail direct injection diesel and a 1.2 L Safire MPFI VVT petrol engine. The 1.4 L
TDi was available until April 2010, but was discontinued as it did not meet the Bharat Stage
IV emission norms. The Quadra Jet (Fiat JTD) is produced in Ranjangaon by the Tata-Fiat
joint venture. The Indica Vista, rumoured as the Indica V3 till then, was launched in August
2008. Subsequently, a 1.4l, 90ps petrol variant was also launched. The Vista 1.2l Petrol
version, also known as Safire is criticized for its low mileage which can range from 5 to
9 km/ltr of petrol with in the city

Tata Indica Vista Specifications

Top speed

1.4 TDI

1.3 Quadrajet

1.2 Safire

1.4 Safire

75

0 to 100 km/h
(62 mph)

Engine Type

475 IDI Turbo

Displacement

1.3L SDE Common, Quadrajet

1.2L, MPFI, Safire Petrol 1.4L, MPFI, Safire Petrol

Diesel engine

engine

engine

1,405 cc (85.7 cu in)

1,248 cc (76.2 cu in)

1,172 cc (71.5 cu in)

1,368 cc (83.5 cu in)

71 PS (52 kW; 70 hp) @

75 PS (55 kW; 74 hp) @ 4000

65 PS (48 kW; 64 hp) @

90 PS (66 kW; 89 hp) @

4500 rpm

rpm

5500 rpm

6000 rpm

135 Nm (100 lbfft)

190 Nm (140 lbfft) @1750

96 Nm (71 lbfft) @3000

116 Nm (86 lbfft)

@2500 rpm

rpm

rpm

@4750 rpm

Inline 4

Inline 4

Inline 4

Inline 4

Fuel Type

Diesel

Diesel

Petrol

Petrol

Fuel System

ID TC

CRDI

MPFI

MPFI

14 in (360 mm)

14 in (360 mm)

13 in (330 mm)

14 in (360 mm)

175 / 65 R14 (tubeless)

175 / 65 R14 (tubeless)

175 / 70 R 13 (tubeless)

175 / 65 R14 (tubeless)

165 mm (6.5 in)

165 mm (6.5 in)

165 mm (6.5 in)

165 mm (6.5 in)

Power

Torque

Valve Mechanism

Cylinder
Configuration

Minimum Turning
Radius

Wheelsize

Tyres

Ground Clearance

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TATA Indigo (2002-2009) (1st generation)

]Indigo Sedan (2002-2009)
Tata Indigo

In 2002, Tata introduced India's competitive indigenous sedan: the Indigo. Designed inhouse, it is a sedan version of the Tata Indica, with which it shares a large number of parts.
Launched with a Turbo diesel and Petrol engines, An intercooled 'TDI' Engine, and Dicor
engines were added. A minor redesign was done in 2006 which added dual chamber
headlamps and different bumpers. It was superseded by Tata Indigo Manza in 2009.

Indigo Marina (2004-2010)

The station wagon version called the Indigo Marina (called the Indigo SW in export
markets) was unveiled at the New Delhi Auto Expo 2004.The various advance features
embedded to Indigo Marina variants are front and rear cabin lamp with spot reading lamp,
HVAC system, 4 spoke wheel, aluminum gear shift knob, power windows, body colored
bumpers, roof rails, rub rails on door, full wheel covers, digital clock, retractable luggage
77

cover, side impact beams, collapsible steering column. As of 2010, the

production of the Marina has been cut back, and the vehicle is no longer readily available in
most Tata dealerships.

Indigo XL (2007-present)
The Long Wheel Base Version called the Tata Indigo XL went on sale in January 2007. It is
the long-wheelbase version of the Indigo sedan. It has a 200 mm (7.9 in)
stretched wheelbase and a 101 hp engine.The Petrol model has MPFI 16 valve twin cam
engine,whereas the diesel variant features a DICOR engine developed in-house. Some
features are powered front seats (driver and passenger), rear air conditioning console with
separate controls, all four power windows with auto power down function, and car
phone.More to add Tata Indigo XL is also equipped with excellent high end characteristics
like 32 bit microprocessor, 1396 cc, 16 valve engine, Power of 100 PS (74 kW; 99 hp),
200 mm (7.9 in) extended wheelbase, Fuel tank capacity : 42 L (9.2 imp gal; 11.1 US gal)

Indigo CS (2008-present)
Tata launched the Tata Indigo CS at the 2008 Auto Expo in New Delhi. CS stands for
compact sedan and is the world's shortest sedan. The Indigo CS is subjected to low excise
duty. There are three models each in petrol and diesel version. Indigo CS petrol has a 1.2 litre,
65 PS (48 kW; 64 hp), MPFI engine variant and a 1.4 litre TCIC engine for the diesel version.
The Indigo CS was initially launched with the Indica Grille and Headlights, and with the
Indigo Dual chamber headlights and grille in 2009. A DiCOR option was also added.
In 2010, it received a new BS-4 compliant Common rail CR4 engine and upgrades in
technology class and design, under the name Indigo CS e-series.
Features:- Indigo CS is world's shortest sedan car, size of a hatchback and spaciousness of a
sedan car. Beige interiors, new AC facia, reading lamp, sporty steering wheel, the instrument
panel, New styled Front Grille, front and rear bumper, Soft touch finest quality seats, Centre
Cluster & Air Conditioning Controls, Anti-glare Inner Rear View Mirror, and trunk space of
380 litres with Independent McPherson struts equipped suspension system.

78

Indigo in use in the Indian Army

Facelifted Indigo Marina

Facelifted Indigo Marina Rear

Indigo CS

Indigo XL

Indigo Manza (2009-present) (2nd generation)

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Tata Indigo Manza

Tata Motors launched the Indigo Manza on 14 October 2009. The variant is based on the Tata
X1 platform which was displayed by Tata Motors in its prototype form called Elegante
Concept during the 2007 Geneva Motor Show. It is priced between Rs 4.8 lakhs and Rs 6.75
lakhs. The launch coincided with the phasing out of the earlier sedan version of Indigo. Four
variants are the Aqua, Aura, Aura (ABS) and the Aura +. with engine options of a 1.4 liter
petrol and a 1.3 liter diesel engine, shared with the Fiat Linea.
Tata Motors have confirmed that the Indigo Manza will remain as a standalone platform and
will not spawn other variants,like in the previous generation.
A Facelifted version of the Manza, known as The Tata Manza Elan was launched in February
7, 2011. It sports new looks like the Chrome inserts in Fog Lamps, Rub rails, Bumper etc. It
also has the Biege n' Burgundy Dual tone interiors, Silver and Black dual tone Alloys and
also, Elan comes in an Exclusive Colour of Tyrian Wine.
A limited edition Manza Elan was also launched. This model was known as the Tata Manza
Elan Celebration. It had some limited edition features like Reverse Parking Sensor,
Celebration Badging, Ebony black and White interior colour scheme and Leather Feel Seats.
The Celebration Edition costs just Rs.15000 more than the in stock Elan

Features
Manza has some of the most luxurious features like a 2 DIN music system which supports
USB, AUX and Bluetooth connectivity, driver information system, steering mounted audio
controls, ABS, Dual front airbags, Alloy Wheels, colour changing tachometer needle which
turns red when the car reaches to the redline, engine immobilizer and central locking based
on the variants available.

TATA MAGIC
The Tata Magic is a launched by Tata Motors in June 2007. The Magic is the passenger
version of the Ace mini-truck, the new Magic features an all-steel cabin. It offers a flexible
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seating capacity of 4-7 passengers with adequate legroom. Powered by a

16 bhp (12 kW), 700 cc water-cooled diesel engine, the Magic offers high fuel efficiency and
very low maintenance. The 12-inch tyres provide higher ground clearance, and the rigid front
axle is designed to handle tough roads. The Magic's turning radius of 4.3 metres (14.1 ft) is
nimble enough to navigate the bylanes and traffic of India's crowded cities. The Magic has a
clearly visible instrument cluster, utility tray and a digital clock in the dashboard and also a
provision for fitting a radio.
The Magic meets BS-III emission norms and has been developed for use in any market be
it urban, semi-urban or rural. It is backed by a 36,000 km/12-month warranty. The Magic
range starts at Rs 2.60 lakh (ex-showroom, Pune). Tata Motors' two new vehicles, Magic and
Winger, are expected to cater to the two ends of the taxi segment. The Winger, which is a
sturdier and more refined product, will attempt to wrestle market share in the staff (ITES/
BPO employees) transportation segments, Hotel & Inter-urban Tourist segments, airport drop
and pickup.

TATA NANO
Seeing an opportunity in the great number of Indian families with two-wheeled rather than
four-wheeled vehicles, Tata Motors began development of an affordable car in 2003. The
purchase price of this no frills auto was brought down by dispensing with most nonessential
features, reducing the amount of steel used in its construction, and relying on low-cost Indian
labour.
The introduction of the Nano received much media attention due to its low price and the car

was available to buy throughout India in early 2011.

The Tata Nano is a city car manufactured by Tata Motors. One of the smallest as well as
lowest powered cars in the world, it was designed to be the affordable car in India aimed
mainly at the entry level segment in the Indian domestic market. TATA nano is highly fuel
efficient (25.3Kmpl, confirms to latest emission norms in INDIA (as on 2012) has best in
class AC, more roomy interior(21%) than its rival the now discontinued(in 13 indian cities)
Maruti 800 which sans these features

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TATA ARIA
The Tata Aria is a crossover SUV produced by Tata Motors of India. Tata Aria was launched
on 5 January 2010 at Auto Expo, Delhi, and was launched to customers on 12 October 2010
and priced at 1.3 to 1.5 Million Indian Rupees or . It is based upon the Tata Xover concept
showcased in 2006 Geneva Motor Show. Tata Aria was also a series of concept cars
introduced by Tata Motors at Geneva Auto Show 2000.

Tata Venture
The Tata Venture is a minivan unveiled on 5 January 2010 at the 10th AutoExpo in Pragati
Maidan by Tata Motors in India. It is in competition with the prevalent MPV and vans
from Maruti, Mahindra, Toyota, Chevrolet and Force Motors. Venture is powered by a 1.4litre turbo diesel engine delivering 90 hp (67 kW) power, it boasts of the best-in-class fuel
efficiency among diesel MPVs in the INDIA and is available in 5-, 6-, 7- and 8-seater
arrangement. It comes with features such as dual heating, ventilation and air-conditioning
(HVAC), reverse parking sensor, power windows, keyless entry and power steering.

Tata Venture in India

On 6 January 2011 - Today, India's leading auto manufacturer Tata Motors has launched its
awaited passenger vehicle Tata Venture in the Indian auto market. In India, Tata Venture will
be available in three variants and all of its variants are equipped with 1.4-litre, 1405 cc
Turbochargeddiesel engine. The 1.4 l, Turbocharged diesel engine with five-speed manual
transmission gearbox delivers maximum power of 71 PS at 4500 rpm with 135 Nm of
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maximum torque at 2500 rpm. The all-new MPV Tata Venture is launched with
a price tag of Rs 4.05 lakh to Rs 5.07 lakh (ex-showroom, Jaipur).
The Tata Venture is affixed with power steering and power windows, keyless entry, reverse
parking aid along with engine immobilizer and the rear wipers too. The car will come in
five-, seven- and eight-seater options divided in three-row front-facing configuration. The
new car will come in five bright colour options to choose from.
The new car Tata Venture is a family car and can accommodate eight passengers easily. The
van is loaded with 1.4-litre turbo diesel power train which offers excellent fuel efficiency
among the ones available in the domestic auto market. The new MPV offers a mileage of
15.42 kmpl, certified by ARAI.

Tata Venture Models in India

This is the base variant of Tata Venture that comes with the seating capacity
Tata Venture
of five passengers and some standard features like power steering, power
Five Seater
windows.
Tata Venture It comes with the seating capacity of seven passengers and with similar
Seven Seater features of base variants. It comes with three rows front facing seats.
It comes with the seating capacity of eight passengers and with similar
Tata Venture
features of base variants. It comes with three rows front facing seats. It
Eight Seater
would be available as commercial vehicle.

TATA XENON
Tata Xenon

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Tata Xenon is a pickup truck manufactured by Tata Motors. It was debuted as

redesigned Tata TL at the 2006 Bologna Motor Show. Released in late 2007 as the Tata
Xenon. The Xenon is powered by newly developed 2.2L common rail turbodiesel 140 PS
84

(103 kW) engine (DICOR)[i.e. Direct injection Common Rail]. This also
featured the extended cab (X-Tend cab) for the first time but to the selected markets. The new
Xenon will be launched in many countries around the world, whereas in India its platform
also gives rise to the Tata Sumo Grande, a passenger variant from Tata.
The car is assembled in Thailand by Tata-Thonburi JV[4], and in Argentina by Tata-Fiat JV.
[5]
Fiat's first body-on frame pickup will have the same styling as Tata Xenon and is to be
named Fiat Terra[6][7]. A variant, Xenon XT (Cross Terrain), a life style 4-door, 5-seater pickup was launched in 2009. The vehicle combines stylish on-road presence and comfortable
interiors with off-road capabilities of a 4x4. The Xenon has been well received in Europe
especially in Spain and Italy.

Commercial vehicles

Tata Motors Xenon CNG

Development
SPRINT was the code name of the project for development of Tata's World Pick-up (truck), it
was designed by the Concept Group UK along with the Tata Sumo Grande. World Pick-up
market (other than USA) is dominated by Japanese Auto majors like Toyota, Isuzu,
Mitsubishi, Nissan. As per the study conducted by Tata Motors, there is a big opportunity for
TML to grab substantial market share of world Pick-up market. Tata initiated an in-depth
market study was conducted in various countries in Europe, Middle East, S Africa, Thailand,
Australia, LAT AM etc. to understand needs of target segments from a new Pick-up.

85

Tata Ace

Tata Ace

The Tata Ace is a mini-truck (similar to Japanese Kei truck) launched in May 2005 by Tata
Motors in India. It is in competition with the prevalent three-wheeled goods carriers
from Bajaj Auto, Piaggio, Mahindra and Force Motors.
History

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In December 2000 Girish Wagh was given a brief by Ravi Kant to create a new
very light truck line that would add to Tata's current truck range. It was to be economical and
to take on the three-wheeled cargo auto rickshaws in the Indian market.[1] Based on this brief
Wagh approached users of three-wheel cargo rickshaws and got their feed back on Tata's
future four-wheel cargo vehicle. The feedback indicated the need for a economical vehicle
that could take light loads over short distances. Additionally the feedback also revealed that
future owners would prefer owning a four-wheeler cargo vehicle for the perceived prestige it
would offer over a three-wheeled vehicle
Launch and Reaction
Tata Motors launched the Ace truck in May 2005 for just above Rs 2 lacs, Rs 200,000 . The
new vehicle was a big hit, selling 100,000 in just 20 months. As of May 2010 Tata Motors has
sold over 500,000 Aces in just 5 Years. The Ace has created another historical event in the
commercial vehicle industry. TATA Ace is produced in Pantnagar plant of Tata Motors.
Variants of TATA Ace running on CNG fuel and with more environmental friendly engines
have been launched. Riding on the success of TATA Ace, Tata Motors has developed TATA
Super Ace and TATA Ace Zip. TATA Super Ace is a one ton payload carrier, while TATA Ace
Zip is a micro truck with 0.5 ton carrying capacity.
TATA OK
Tata OK is the certified pre-owned commercial vehicles program of Tata Motors Limited and
provides ultimate convenience to customers trying to buy a pre-owned commercial vehicle or
sell their existing truck. Tata OK started the project in south India with 4 key dealers and it
has now been rolled out across the 4 southern states and Maharashtra. At present Tata OK
covers only Tata Ace.
TATA SUPER ACE
TATA SUPER ACE is powered by a four cylinder, 475 IDI turbo intercooled diesel engine
producing 70 bhp, power steering that translates to a reasonably powerful small truck with a
carrying capacity of one ton, and can attain a top speed of 125 kmph. The load area is larger
at (LxW) 8.63 X 4.79 feet. Loading capacity is 1 Tonnes. The Tata Super Ace looks slightly
different with a different grille. The company says that the Super Ace offers a lot more by
way of driver comforts such as lockable glovebox, Bucket seating at front, provision for
mobile charger, rear view mirrors on both sides and sun visor.
The Super Ace comes with power steering. Tata Super Ace comes with a 12 month/50,000
km warranty. TATA MOTORS sold more than 20000 Super Ace in the domestic market.
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Super Ace is accepted in the market due to Its stylish look and
performance.This appears great look than previous model of ace due to its front lights&grill
and with its larger wheel size.
New segment

Tata Ace has created a new mini segment in India. Priced between 2.25 to 3.35 lakhs INR, the
company aims to convert three-wheeler users to 4-wheelers. One of the ideas that prompted
the launch of this vehicle might be the government policy in India that bans HMVs
(categorized as vehicles weighing above 3 tonnes) to enter cities after 7 p.m. to reduce traffic
jams and pollution. TATA has found the gap in the market and released Ace. The 700 cc
engine delivers a power of 16 hp (12 kW) at 3200 rpm and a torque of 3.8 mkgf (37 Nm) at
2000 rpm gives a tough competition to Piaggio's mini truck (3-wheeler). It has a permissible
loading capacity of 750 kg (1650 lb). It also has a modern cabin compared to its threewheeler rivals. It is best suited for use by villagers in carrying goods over short distances. The
project was headed and executed by Girish Wagh.

Manufacturing locations
The mini truck is now produced at the facility in Pantnagar, Uttarkhand although it was
initially manufactured at Pune. The Tata Ace succeeded in creating an entirely new segment
that competitors are known to be working on different models to compete against the Tata
Ace.
A new higher variant Ace II has also hit the roads.
Tata Magic
In June 2007 Tata Motors launched the passenger variant of the Ace, named Magic featuring
an all-steel cabin. It offers a flexible seating capacity of 4-7 passengers with adequate
legroom. Powered by a 16 bhp (12 kW), 700 cc water-cooled diesel engine, the Magic offers
high fuel efficiency and very low maintenance. The 12-inch tyres provide higher ground
clearance, and the rigid front axle is designed to handle tough roads. The Magic's turning
radius of 4.3 metres (14.1 ft) is nimble enough to navigate the bylanes and traffic of India's
crowded cities. The Magic has a clearly visible instrument cluster, utility tray and a digital
clock in the dashboard and also a provision for fitting a radio.

88

The Magic meets BS-III emission norms and has been developed for use in any
market be it urban, semi-urban or rural. It is backed by a 36,000 km/12-month warranty.
The Magic range starts at Rs 2.60 lakh (ex-showroom, Pune). Tata Motors' two new vehicles,
Magic and Winger, are expected to cater to the two ends of the taxi segment. The Winger,
which is a sturdier and more refined product, will attempt to wrestle market share in the staff
(ITES/ BPO employees) transportation segments, Hotel & Inter-urban Tourist segments,
airport drop and pickup.
Both the Magic and the Winger are being launched nation-wide, starting with Maharashtra
and Gujarat, after which availability will be extended to other parts of the country in a phased
manner.

Tata TL

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Tata TL is a pickup truck made by the Indian automaker Tata Motors.

First generation

Tata Mobile 207 was introduced in 1988 and is currently producing.

Second generation

The second generation Tata 207 DI was launched in 2002.It is a Pick Up vehicle designed for
both urban and rural use. The TATA 207 DI is powered with the same engine as in TATA 407
and is India's first 1.13 Ton payload Pick Up with Power Steering. Its 60 HP - 3-litre(2956cc)
[58 BHP @ 3200 RPM 16.55 kgm @ 1500 RPM] engine minimizes fuel consumption and
maximizes driving pleasure and refinement.
Third generation

In 2005, Tata TL 4x4 was released in Indian market. It was Tata's first (and India's second)
offering in the lifestyle pick-up truck segment. It was a spruced up version of Tata's hugely
successful Tata 207 DI pick-up which was popular with commercial transport operators. It
even sold in Britain as a working vehicle.
It featured a turbo charged 1948 cc diesel engine that produces 91 bhp (68 kW). In addition
there were extra accessories such as a bull-bar, roll-over bar, power steering & air
conditioning, power windows. The Pick-Up was available in both - single cab & double cab
versions. The Tata TL 4x4 is a heavy duty pickup truck, probably one of the most heavy duty
and reliable in its category. In some countries people tended to fit a
2.0l Toyota turbodiesel engine for more power. Value for money the Tata Telcoline was
probably one of the best pick-ups as it was much cheaper compared to other vehicles in its
class such as the Toyota Hilux and the Ford Ranger.
Fourth generation
Fourth generation

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A redesigned Tata TL debuted at the 2006 Bologna Motor Show. Released in late 2007 as the
Tata Xenon. The Xenon is powered by newly developed 2.2L common
rail turbodiesel 140 PS (103 kW) engine (DICOR). This will also featured the extended cab
(X-Tend cab) for the first time but to the selected markets. The new Xenon will be launched
in many countries around the world, whereas in India its platform also gives rise to the Tata
Sumo Grande, a passenger variant from Tata.
The car is assembled in Thailand by Tata-Thonburi JV,[1] and in Argentina by Tata-Fiat JV.
[2]
Fiat's first body-on frame pickup will have the same styling as Tata Xenon and is to be
named Fiat Terra.[3][4] A variant, Xenon XT (Cross Terrain), a life style 4-door, 5-seater pickup was launched in 2009. The vehicle combines stylish on-road presence and comfortable
interiors with off-road capabilities of a 4x4. The Xenon has been well received in Europe
especially in Spain and Italy.

Background
SPRINT was the code name of the Project for development of Tata's World Pick-up ( truck).
World Pick-up market ( other than USA ) is dominated by Japanese Auto majors like Toyota,
Isuzu, Mitsubishi, Nissan. As per the study conducted by Tata Motors, there is a big
opportunity for TML to grab substantial market share of world Pick-up market. Tata initiated
an in-depth market study was conducted in various countries in Europe, Middle East, S
Africa, Thailand, Australia, LAT AM etc. to understand needs of target segments from a new
Pick-up.

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Aggressive Timeline is the major highlight

While a new product development timeline takes between 36 to 50 months, It is said that so
far only Toyota has achieved the Timeline of 18 months. Hence, the name SPRINT which
signifies and continuously reminded project team about the Speed of the project. The team
worked round the clock relentlessly, applied principles of "Concurrent Engineering",
distributed work load in 9 different countries in order to crash timeline by overlapping
maximum possible key activities. The team delivered project in 17 monthsfrom styling
freeze in Dec 2005 to SOP (Start of Production) in May 2007.

Launches / Motor Shows

Bologna Motor Show 2006 (Dec) was the occasion when Xenon was unveiled for public
display and later in March 2007, it was also displayed at Geneva Motor Show 2007. Till date
Xenon has been launched in 14 countries in Europe, Middle East, Latin America, Africa and
SE Asia.
Xenon is available in 3 cab types-double, single and space cab,LHD and RHD,2 engine
options - 3L and 2.2 L,4x4 (All wheel drive) and 4x2(2 wheel drive) and two interior theme
options(Dark Grey and Beige)

Tata 1510/1512
Tata 1510/1512

A Tata 1510c of Infosys all dressed up for Dussera

Festival, Pune, India.

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The Tata 1510/1512 is the largest selling bus model seen regularly in India and neighbouring
countries and the Seychelles. Made by the industrial giant, Tata Motors, it combines good
features and low ownership cost.
It is a 60-seat sturdily built bus with the following features:

Front-mounted Tata-Cummins turbocharged engine driving the rear wheels with shaft.

5 forward + 1 reverse gears, all Synchromesh

Power Steering

Retarder enabled engine

Tata builds the chassis/cowl with engine and other framework. There are many contracted
suppliers which in turn build the bodies over the chassis as per customer requirements.
This bus is used by all, from the low cost service providers like state transport, municipal
metro bus services to the up market private transporters providing high-cost
intercity/interstate services.

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latest models are 1510c & 1512c. 1510c comes with CUMMINS turbo engine
& 1512c comes with CUMMINS turbo, inter-cooler engines.
Tata Starbus

Tata Starbus

Tata Starbus is a range of buses manufactured by Tata Motors. Tata Starbus is available in
comprehensive range of variants, with or without low floor, with seating capacity of 16 to 67,
it is available with options of diesel engine and also more environmentally friendly hybrid
and CNG power plant. The Starbus range includes Standard, Deluxe, Low Floor and School
bus options - each with a customised set of features.
Variants

Starbus Skool

Incorporating over 19 essential features from the many others prescribed by the Government,
the Starbus Skool provides the safest and most comfortable journey for school children. Is
available in a range of 17, 32 and 52 seater.
1. Starbus Skool 17 - Chassis Platform - SFC 407/31
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2. Starbus Skool 32 - Chassis Platform - LP 709/38

3. Starbus Skool 52 - Chassis Platform - LP 1510/52

Starbus Standard

Available in 16, 18, 20, 32, 54, and 67-seater configurations, Starbus Standard is built to
handle varying road conditions without compromising passenger safety.
1. Starbus 16 - Chassis Platform - SFC 407/27
2. Starbus 18 CNG - Chassis Platform - LP 407/31 CNG
3. Starbus 20 - Chassis Platform - SFC 407/31
4. Starbus 32 - Chassis Platform - LP 709/38
5. Starbus 54 - Chassis Platform - LP 1510/53
6. Starbus 67 - Chassis Platform - LPO 1610/62

Starbus Deluxe

Designed to allow inter-city travellers to commute quickly, comfortably and affordably

between destinations. Starbus Deluxe variants are available in 18, 20, 28 and 35-seater
configurations.
1. Starbus Dlx 18 - Chassis Platform - SFC 713/38
2. Starbus Dlx 20 - Chassis Platform - LP 407/31
3. Starbus Dlx 28 - Chassis Platform - LP 709/38
4. Starbus Dlx 35 - Chassis Platform - LPO 916/42

Starbus Low Floor

With an ultra-modern, low floor design have a floor height of 650 mm and broad doors allow
passengers to board and alight quickly and easily. You can also opt for Ultra Low Floor City
Buses, with a floor height of only 380mm.
1. Starbus LF - Chassis Platform - LPO 1610/59
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2. Starbus ULF CNG - Chassis Platform - LPO 1623/62

Tata Prima

Tata Prima

A Tata Prima truck in Karnataka, India.

Tata Prima is a range of heavy trucks produced by Tata Daewoo, a wholly owned subsidiary
of Tata Motors of India. It was first introduced in 2008 as the company's 'global' truck. The
trucks have a combined loading capacity of 40 tonnes, ideal for heavy duty shipment.The
interior of the Prima is equipped with modern features like GPS, air conditioning, 4-way
adjustable driver and co-driver seats, etc.
The first in line of the Prima trucks is the Prima 4028S tractor with a 266PS Cummins ISBE
engine bearing a 9 speed ZF transmission. The tractor also has ABS and dedicated axles
along with a trailer to aid in heavy goods transportation. Besides focusing on the mechanics,
the tractor also focuses on driver comfort which include an air-conditioned cabin with
reclining seats, arm rest and an adjustable steering wheel. Global Positioning System (GPS)
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is a standard feature. There are ten major variants in the Prima range which
include trucks, tractors and special application vehicles.
Tata Motors's Prima truck range was conferred with a prestigious South Korean award the
Grand Prize of 2009 Good Design Selection of Korea, in 2009.

Product Range :
Tata Safari (SUV): The Tata Safari is the first SUV indigenously developed in India. One
might consider it a bit obese and massive, but the Safari is a model to reckon with, due to its
symbolism with the indigenous effort. Tata (SUV) The Tata Safari with its diesel variants
targets the middle class consumer and offers Tata SUV cars between rupees seven and nine
lakhs. Tata Safari variants include.

A. Safari DL 4 x2 LX TCIC (Diesel): Safari DL 4 x2 LX TCIC is the entry level variant

of the upgraded model of Tata Sumo. New cars have a show room price of around
Rs.6,51,000 and on-road price of around Rs.7,30,000. Safari DL 4 x2 LX TCIC car
prices vary with the car dealer's location.
B. Safari DiCOR LX 4x2 (Diesel): New cars in this series have a showroom price
ranging from around seven lakhs to around eight lakhs inclusive of all charges like
insurance, octroi, RTO, etc. Safari DiCOR LX 4x2 car prices vary with the car
dealer's location.
C. Safari DiCOR Exi 4x2 (Petrol): This variant is packed with attractive looks, powerful
engine and everlasting performance and reliability features. At the showroom, this car
costs around Rs.8,24,000 with an on-road price of around Rs.9,23,000. This includes
standard ancillary charges also.
D. Safari DiCOR EX 4x2 (Diesel): Safari DiCOR EX 4x2 is equipped with sporty looks
and attractive features. The Safari DiCOR EX 4x2 is now available at a showroom
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price of around Rs.8,25,000 with an on road price of around

Rs.9,25,000 including supplementary charges.
E. Safari DiCOR LX 4x4 (Diesel): This variant is packed with attractive looks, powerful
engine and everlasting performance and reliability features. New cars have a show
room price of around Rs.8,53,000 and on-road price of around Rs.9,60,000.
F. Safari DiCOR EXI 4X4 (Petrol): New cars in this series have a showroom price
ranging from around nine lakhs to around ten lakhs inclusive of all charges like
insurance, octroi, RTO, etc. Safari DiCOR LX 4x2 car prices vary with the car
dealer's location.
G. Safari DiCOR EX 4X4 (Diesel):

Safari DiCOR EX 4X4 promises enduring

performance and complete reliability with its robust looks and powerful engine. At
the showroom, this car costs around Rs.9,14,000 with an on-road price of around
Rs.10,23,000. This includes standard ancillary charges also.
H. Safari DiCOR VX 4X2 (Diesel): Safari DiCOR VX 4x2 is equipped with sporty
looks and attractive features.

New cars have a show room price of around

Rs.10,25,000 and on-road price of around Rs.11,47,000. Safari DiCOR VX 4X2

(Diesel) car prices vary in lakhs upon the car dealer's location.
I. Safari DiCOR VX 4X4 (Diesel):

Safari DiCOR VX 4X4 boasts for advanced

technology engine and attractive looks. At the showroom, this car costs around
Rs.11,19,000 with an on-road price of around Rs.12,51,000. This includes standard
ancillary charges also.

Tata Winger (SUV): The Tata Winger is a versatile maxi van based on an older generation
Renault van - Trafic. It is designed to seat 9 to 13 passengers with generous interior space,
more head and leg room, and a wide luggage space. The new Winger takes care of passenger
comfort by providing all front facing seats that are equipped with magazine pockets, bottle
holders, spot lamps, grab handles, and a music system.

A. Winger Luxury Long WB Flat Roof AC (Diesel): The Winger Luxury is the top most
variant in the Winger family. It has top range price tag along with several features.
The mode has nine individual bucket seats with adjustable headrest, armrest and seat
belts. Body coloured exteriors add up to its attractive looks. It is the ideal vehicle for
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its pleasure trips to nearby destination, corporate and business use and
for large families also. The plush car like interiors provides a good ambience of
luxury as well as space.
B. Winger Designer Car by Dilip Chhabria : Recently launched Tata Winger got rave
reviews from all over the world. Offering mobility for passengers, this vehicle can
take care of corporate, school, and institutional requirements. Safety apart, brightly lit
interiors, cool ambience and plush furnishing provide an incentive to passengers who
always seek to avoid the drudgery of city or long distance travels.

Tata (Hatchback): Popular Tata hatchback car prices begin from Tata hatchback cars at a bit
above rupees two lakhs eighty thousand to Tata hatchbacks at a bit above rupees four lakhs
seventy-thousand. Popular Tata hatchback models include.

Tata Indica (Hatchback): The most desirable car of the Indian auto market for its great
styling, price and low maintenance. Tata (Hatchback) The Tata Indica with its diesel variants
targets the middle class consumer and offers an on-road price range between rupees two and
five lakhs. Tata Indica variants include.

A. Indica Xeta GLE (Petrol): New cars in this series

have a showroom price ranging from around two
lakhs to around three lakhs inclusive of all charges
like insurance, octroi, RTO, etc. Indica Xeta GLE
(Petrol) car prices vary with the car dealer's location.
B. Indica Xeta GLS (Petrol): The midsized Indica Xeta GLS hatchback throws a tough
competition in its segment for its economical price range with exclusive features. At the
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showroom, this car costs around Rs.2,95,000 with an on-road price of

around Rs.3,30,000. This includes standard ancillary charges also.
C. Indica Xeta GLG (Petrol): This petrol variant of Indica Xeta possesses classy looks and
powerful engine. The Indica Xeta GL is now available at a showroom price of around
Rs.3,20,000 with an on road price of around Rs.3,55,000 including supplementary
charges.
D. Indica V2 DLE (Diesel): Indica V2 DLE promises enduring performance and complete
reliability with its attractive looks and powerful engine. At the showroom, this car costs
around Rs.3,42,000 with an on-road price of around Rs.3,83,000. This includes standard
ancillary charges also.
E. Indica Xeta GLX (Petrol): The perfect combination of power, style and performance is
Indica Xeta GLX. The Indica Xeta GLX is now available at a showroom price of around
Rs.3,45,000 with an on road price of around Rs.3,86,000 including supplementary
charges.
F. Indica V2 DLS (Diesel): The advanced technology engine, attractive looks and decent
performance makes Indica V2 DLS different from others in its segment. New cars have a
show room price of around Rs.3,60,000 and on-road price of around Rs.4,00,000. Indica
V2 DLS car prices vary with the car dealer's location.
G. Indica Dls Turbo (Diesel): New cars in this series have a showroom price ranging from
around three lakhs to around four lakhs inclusive of all charges like insurance, octroi,
RTO, etc. Indica Xeta GLE (Petrol) car prices vary with the car dealer's location.
H. Indica Dlg Turbo (Diesel): The advanced technology engine, attractive looks and decent
performance makes Indica DLG Turbo different from others in its segment. At the
showroom, this car costs around Rs.3,92,000 with an on-road price of around
Rs.4,40,000. This includes standard ancillary charges also.
I. Indica Dlx Turbo (Diesel): The advanced technology engine, attractive looks and decent
performance makes Indica DLG Turbo different from others in its segment. The Indica
Xeta GLX is now available at a showroom price of around Rs.4,10,000 with an on road
price of around Rs.4,60,000 including supplementary charges.
Tata Wagons: Tata wagons have always held a special place in the market. Currently, Tata
markets only one model, the Tata Indigo Marina, across seven variants including both diesel
and petrol.

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Tata Indigo Marina (Wagon): The Tata Marina is essentially modeled on the
lines of a station wagon that combines the luxury of the sedan along with the roomy features
and sizeable appearance of a MUV. Tata Wagons The Tata Indigo Marina with its diesel
variants targets the middle class consumer and offers Tata wagon cars between rupees five
and seven lakhs. Tata Indigo Marina variants include.
A. Indigo Marina GLS (Petrol): Indigo Marina GLS is the entry level variant of the
Indigo model equipped with impressive interiors and all the latest features available in
its segment. New cars have a show room price of around Rs.4,55,000 and on-road
price of around Rs.5,10,000. Indigo Marina GLS car prices vary with the car dealer's
location.
B. Indigo Marina GLX (Petrol): New cars in this series have a showroom price ranging
from around four lakhs to around five lakhs inclusive of all charges like insurance,
octroi, RTO, etc. Indigo Marina GLX (Petrol) car prices vary with the car dealer's
location.
C. Indigo Marina LS (Diesel): Indigo Marina LS promises enduring performance and
complete reliability with its decent looks and powerful engine. At the showroom, this
car costs around Rs.5,00,000 with an on-road price of around Rs.5,65,000. This
includes standard ancillary charges also.
D. Indigo Marina LX (Diesel): Indigo Marina LX is marked for its advanced technology
and impressive performance. The Indigo Marina LX is now available at a showroom
price of around Rs.5,45,000 with an on road price of around Rs.6,10,000 including
supplementary charges.
E. Indigo Marina GSX (Petrol): Indigo GSX is desirable for its eye-catching looks and
high fuel efficiency. New cars have a show room price of around Rs.5,70,000 and onroad price of around Rs.6,40,000. Indigo Marina GSX car prices vary with the car
dealer's location.
F. Indigo Marina Lx Dicor (Diesel): Indigo Marina Lx Dicor wins millions of heart of
the Indian customers with its elite exterior as well as interior features.

101

At the

showroom, this car costs around Rs.6,00,000 with an on-road price of

around Rs.6,70,000. This includes standard ancillary charges also.

102

HISTORY OF TATA NANO

103

Background Story of Tata Nano Car

Tata Nano many not need any introduction to you. Yes readers, I am talking about worlds
cheapest car produced by Indian car manufacturer Tata Motors. Tata Nano will go on sale
later this year for only Rs. 100,000 ($2,500). So, Tata Nano is reportedly going to be exported
some other car markets in different parts of the world. Now, let us take a look at the
background story of Tata Nano, dubbed as peoples car.
Ratan Tata, chairman of Tata Motors Limited (ADR) (NYSE:TTM, came up with the idea of
making worlds cheapest car in 2003. Design engineers first came up with a car which had
bars, in stead of doors, along with plastic flaps which would protect the passengers from rain.
However, that design looked poor and the company turned it down.
In fact, Tata wanted to introduce a proper car with all the common features of a typical car.
First Tata made the prototype of Tata Nano and called on its top suppliers to help to make this
car possible. Tata received help from both local and foreign suppliers and engineers.
Businessweek reported:
GKN Driveline India, a subsidiary of global auto parts leader GKN, made the driveshaftthe
component that transfers power from the engine to the wheel.
The team spent a year developing 32 experimental variants to create the perfect driveshaft for
the Nano. It roped in designers from the company's French and Italian operations and
changed the design to make it lighter and easier to manufacture. For the Nano's rear-wheel
drive system, GKN designed a smaller diameter of shaft, which made it lighter and saved on
material costs.
Fitting the parts of the car together required lots of little, head-breaking details, recalls Wagh.
The engine, for instance, was designed three times. Initially, Wagh thought they'd buy an offthe-shelf engine and so studied all the small-capacity engines available. They were
unsuitable, so in early 2005 he decided to build his own. The first was a 540 CC engine that,
when fitted on the prototype, lacked the necessary power. So its capacity was increased by
9%, then by another 9%, before Wagh finally settled on a 623 CC engine. Then the foot pedal
had to be realigned to create more legroom.
104

Tata Motors is now a bit worried about the future. As the prices of steel and
other raw materials are increasing day by day, the company will have to face strong challenge
to stick to this price tag.
Tata Nano has created a new segment in the car market. It is true that it is targeted at the
segment A or entry level consumer. However, considering the price tag, you can not put it in
this segment. Those who were earlier thinking of buying second hand car, will defiantly
consider Tata Nano car. The markets of three wheelers and motor bikes will also be affected
because of Tata Nano. The company is also planning to make an updated version of Tata
Nano with a little bit higher price tag. So, it seems that Tata Nano is still without any strong
competitor in this segment. However, much of its success will be proven, only if it runs well
and satisfy the car users of India and abroad.

HOW NANO WAS BUILT

No other car launch in the history of Indian auto industry has received as much global press
as the "people's car", the Tata Nano. For good reason. A report from Business Today
No other car promised to revolutionise motoring as the Nano has. Clever marketing apart,
some frugal and out-of-the-box engineering has gone into the making of Nano. BT's Krishna
Gopalan and Kushan Mitra met the Nano's design team at the Engineering Research Centre in
Pune to
put
together
this
report.
It's not yet a week since Ratan Tata unveiled his dream car at the Auto Expo in Delhi to
unprecedented global media, well, hysteria, but at Tata Motors' sprawling plant in Pimpri near
Pune, it's business as usual. There are no 'we've-done-it' banners festooned inside or outside
the plant, no puffed-up chests striding around the facility, or even smug grin on anyone's face.
At the south-western corner of the 160-acre facility, home to the Engineering Research
Centre, where a young chief engineer and his team of 500-odd engineers have slogged over
the last four years, putting in 12-14 hours a day, six days a week, there's even less of backpatting. Instead, Girish A. Wagh, barely 37 years old, is thinking five years ahead - he's
already got some designs ready for the small car, Nano, variants that Tata Motors could
offer in
the
years ahead.
Typical engineers? You could say so. But what's atypical about Wagh and his team is their
handiwork. They've just created automotive history, that too out of one of the most unlikely
places on earth. They've taken their Chairman Ratan Tata's dream - much like what Henry
Ford had in the beginning of the 20th century in the US-of offering Indians ultra low-cost
cars and turned it into a reality. The "people's car" unveiled on January 10 at the Auto Expo
was stunningly good looking for the price tag it sports: a bare Rs 1 lakh, or $2,500, for the
base model. The feat has so shaken the automotive world-from Detroit to Stuttgart to
Nagoya-that Tata Motors' rivals, who never really considered it as a serious threat in
passenger
cars,
are
scurrying
back
to
their
own
drawing
boards.
That's hardly surprising. At Rs 1-lakh, the Nano is the world's cheapest car and holds out the
same promise as Ford's Model-T did when it was launched in 1908 at a price of $825, and
which is to make motoring affordable to millions of Indians when it hits the road in
105

September or October this year. Even its 'deluxe' model, featuring airconditioning and power windows, won't cost more than Rs 1.2 lakh on road-a good Rs 80,000
cheaper than the cheapest car currently in the country, the Maruti 800.

A BREAK THROUGH CAR

So, how did a company best known for its lumbering trucks (and much later, its sub-compact
car, Indica) end up designing a "cute-as-a-bug" car that its rivals said could not be built to the
target price of Rs 1 lakh? What sort of out-of-the-box thinking did the engineering team have
to do? What were the rules of car making that they had to rewrite? Before we tell you that,
here's a quick look at the team that built the Nano. The man in charge of the small car project
is Girish A. Wagh, who was also very closely involved with the design of the Ace, a fourwheeler that serves as a load carrier. E. Balasubramoniam is the Head of Sourcing for the
project. The graduate from IIT Madras is 45 years old and was earlier with Maruti Udyog
(now Maruti Suzuki). Nikhil Jadhav, 29, is possibly the youngest member of the team.
Jadhav, an alumnus of IIT Bombay, is the designer on the small car project. Abhay M.
Deshpande is Tata Motors' Assistant General Manager-Vehicle Integration at the ERC.
Deshpande, 44, is in charge of vehicle integration, vehicle performance and chassis design.
Vendor development is what Rakesh Mital, 44, is in charge of. He was earlier with Yamaha
Motors.
While the Nano's design has received rave reviews, the team had to go through several
iterations before the style could be frozen. "The entire body was designed twice while the
engine was designed thrice," points out Wagh. If that sounds surprising, the floor was
designed 10 times and the seats too an equal number of times. Wagh recalls that the car's
dashboard had two concepts running simultaneously. Both had detailed designs with
respective cost estimates. The one that was eventually chosen was what the Nano team
thought would look more attractive to the customer. "There were two concepts and we
thought the second one added more utility. We went for it since it was also more
contemporary" says Tata Technologies' Industrial Designer, Nikhil A. Jadhav. Some Tata
group companies lent their resources for the small car project and Tata Technologies was one
of
them.
The car had three concepts to begin with. "We picked the one that we thought looked the best,
and from that we made a full-scale model," says Jadhav. In mid-2005, one model was
completed, which then went through a stage of refinement. This was where the initial volume
of the car was defined. "It was here where we got into details like lamps and doors. From that
point onwards, we actually did another model, which was a second stage model. Eventually, a
final refined model was done by design house, I.D.E.A., which was brought here." adds
Jadhav. The style for the Nano was frozen in mid-2006-exactly a year after the first model
was completed. Understandably, this stage was important since it had to be in line with the
cost targets. From then, the story was about engineering development.

106

ENGINEERING THE NANO

According to Wagh, the prototypes were put in place with that design. Again, it was not as if
the job was done. Tata Group and Tata Motors Chairman, Ratan Tata, felt that a slight change
in the front part of the car was required. "Finally, we ended up increasing the length of the car
by 100 mm," says Wagh. It is not as if there is no room for further change in styling or
design. By Wagh's own admission, there will not be any change in the Nano's exterior
although there could be a few changes in the interior of the car.
While the bit about design and styling took a while, the decision with respect to having a rear
engine was less complicated. "We had decided on a rear engine four years ago. This was with
the objective of getting the best, optimal layout," states the Jai Bolar, Senior Manager
(Development), ERC. If there was one thing from which the focus could not be taken away, it
was obviously cost. That was often easier said than done, since the rising input costs were
beyond the company's control. "Rising input costs made our engineering targets difficult. For
example, if steel prices went up, we had no choice but to reduce the amount of steel in the
car," says Wagh. Again, it was important to look beyond costs as well. "The price of the car is
what the customer pays in the beginning. Later on, what matters is the performance of the
car,"
he
adds.
Ideas for the Nano came from unexpected quarters and they were looked at closely before a
decision was taken. For instance, in addition to the vendors, a small group of mechanics was
part of the development phase. This was really a part of the serviceability and accessibility
workshop. Wagh recalls that one of the suggestions was to have an additional opening on the
rear floor which would provide access to the intake manifold and starter. "We were trying to
avoid this for cost reasons but the mechanics were vehement," he says.

COSTS OUTSOURCING & BEYOND

The importance of balancing design changes with their respective cost implications cannot be
overstated. Every design, therefore, had to cater to three key requirements-cost, regulatory
requirements and acceptable performance standards. As Wagh puts it, "We did not want to
make something that was an embarrassment of a car." Clearly, while the cost was hugely
critical, the company was unwilling to make any kind of compromise on other areas. Fuel
economy, according to Narendra Kumar Jain, Deputy General Manager (Engines), ERC, is a
major driver for selling a vehicle in India. "It was important, for instance, to ensure that the
car could be manoeuvred in the city. If your car requires less parking, then the material
required
is
also
less,"
he
adds.
107

Of course, there was the advantage of having learnt from the Indica and the Ace. Wagh,
whose father was on the Indica R&D team, was very closely involved with the design of the
Ace as well. "Clearly, the Nano was a tougher cost target. In a commercial vehicle, endurance
is of prime importance. It is also important in the case of a car, but sometimes other aspects
like touch and feel are more critical," he explains. Possibly, the biggest plus point through the
launch of the Indica and the Ace is that the development process at Tata Motors has matured
to
a
great
extent.
According to Wagh, every component in the Nano has been studied from a functionality, cost
and performance requirement. There was no other way to reduce costs. From an outsourcing
perspective, the company put in place an Early Vendor Integration Programme. "We had a lot
of design inputs from vendors that either facilitated manufacturing or brought the cost down.
This could be for lamps or seats, for example," says Balasubramoniam. Elaborating on the
outsourcing for the lamp, he explains that the surface was provided. "It was within that
surface where the lighting mechanism had to be made operational" explains
Balasubramoniam.
The Nano is completely indigenised, save for the fact that it will be using Korean and
Japanese steel from Posco and JFE to begin with, as Tata Steel's expansion at Jamshedpur is
not yet complete. Importantly, over 85 per cent of the vehicle will come from outside
vendors. Tier-I ancillary manufacturers, based in and around the small car plant at Singur will
manufacture complete sub-assemblies. The logic for this, says Wagh, is to make
manufacturing as simple as possible. Balasubramoniam, meanwhile, has thus been flying all
over the country, not only to the three established 'auto' manufacturing belts in India - the
National Capital Region (NCR), Pune, Aurangabad, Nashik and Chennai - but also to the
upcoming small car plant in Singur to plan the layout of the vendor park. This is with the
objective of ensuring that parts between vendors and the assembly line move smoothly and
just
in
time.
Not surprisingly, the vendors have had it anything but easy as far as the small car project is
concerned. There are those who thought that the pressures on costing were just not working
to their advantage. "We felt that it was not feasible for us to compete for the basic model of
the Nano because the costing was too tight," says Sanjay Labroo, Managing Director, Asahi
India Glass, but adds that he did plan to bid for the 'Deluxe model'.
Those who are on the project think it is worth the effort. "This car is not over-engineered like,
say, German cars are, this is a great example of frugal cost-effective and relevant
engineering," says Surinder Kapur, Managing Director, Sona Group, which has made the
steering column and the transmission. Lumax Industries too was heavily involved in the
project. The company made and designed the head and tail light fixtures on the car. "The
opportunity to work on this car also gave our engineers a chance to showcase their skills,
because most other car products are designed abroad and we just have to manufacture
components to a specific blueprint. In this project we designed light fixtures that meet all
regulatory needs, fit the car and are low-cost", says Deepak Jain, Executive Chairman,
Lumax Industries. The company got involved in the project at a very early stage and Jain
thinks
that was one major reason by which costs were reduced.
Keeping costs down was a major problem for vendors, and they found innovative ways
around it. "A long-life bulb that might last 10 years adds a lot to the cost, so we fit a standard108

life bulb that met regulatory and warranty issues but kept costs low," explains
Jain. "When we figured out that the car would be rear-wheel drive, we knew that the steering
column could be engineered differently since the front wheels would not hold the weight of
the engine. So we kept the steering column hollow," says Kapur.
Tata Motors, for its part, looked at various ways to cut costs across the spectrum. "For
instance, a normal wheel mounting has four pins while we have three. We have also reduced
the thickness of the bumpers," explains Wagh. That is, of course, apart from the fact that the
car has only one wiper instead of the more conventional two. Electronic sourcing has been
another effort to cut costs. Wagh goes back to a time when Tata Motors was recovering from
huge losses - that was in 2001 - when the company took a lot of initiatives to cut costs. "One
of the ways we decided to do it was through e-sourcing. It was used extensively for the Ace
and now for the Nano. It provides good benefits as long as product specifications are firm,"
he
adds.
By Wagh's estimate, there has been a saving of around 10 per cent as far as the Indica and the
Ace are concerned. The actual numbers for the Nano are still being worked out. As things
stand, the standard version of the car - what is being referred to, as the Rs 1 lakh car in that
sense - will not have an air-conditioner or power windows or a central locking system. That
apart, it will not have body-coloured bumpers or fabric-trimmed seats. All these features are
expected
to
be
a
part
of
the
deluxe
model.
According to Wagh, in any automotive development programme, the cost reduction continues
not till just the time the car is launched but much beyond that. "Initially, we were looking at
cost prevention, which involved selecting a design concept with the least cost. Today, it is a
clear cost-reduction effort," he says.

SAFETY ISSUES
While there has been concern generally on the issue of safety, the small car team outlines the
fact that the Nano caters to safety norms at two levels. "The Nano meets all regulations in the
Indian market. The package protected car also meets all future regulations in Europe as well,
which includes offset frontal and side impact," says Wagh. Environment has been another
controversial area, though the company points out that all norms have been met. "Currently,
the car meets Bharat III norms, which are applicable in 11 cities while it meets the Bharat
Stage II norms in the rest of the country. We will meet the Bharat Stage IV and Euro IV
requirements as well," says R. G. Rajhans, Project Manager (Body Systems), Tata
Technologies.
For now, the focus is on getting the car on the road, which Wagh thinks should be possible
during the second half of 2008-09 financial year, that is after September. It is expected that
the plant in Singur will produce around 1,000 cars per day. There are a couple of other things
too
that
are
being
looked
at.
"There are alternate fuel technologies under development such as CNG and LPG", he says
and he even hints that a future model "could have a diesel engine". If that is not enough,
Wagh is also working on technologies that Ratan Tata mentioned in an interview to this
109

publication that the car "in the future might well have continuously variable or
automatic transmission." Wagh adds that the roadmap will be to have a second generation of
the
vehicle
in
the
next
5-7
years.
The Nano story, it seems, has barely unfolded.

The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the Nano
is the cheapest car in the world today. Before it went on sale a price of 1 lakh (US$1,800),
was widely touted. Since its 2009 debut, the price has increased, and, while the Nano remains
the lowest cost four-wheeled passenger vehicle in India, it's significantly more expensive than
a motorcycle, a popular means of cheap transport in the country.

110

Details

Nano

DIMENSIONS
Overall Length

3099 mm

Overall Width

1495 mm (Without ORVMs)

Overall Height

1652 mm

Wheelbase

2230 mm

Ground clearance

180 mm

Minimum Turning Circle

Radius

4m

Seating Capacity

4 persons

Fuel Tank Capacity

15 Litres

Kerb Weight
Nano

600 kg

Nano CX

615 kg

Nano LX

635 kg

Boot Space

With rear seat folded: 500 Litres

Without rear seat folded: 80 Litres

ENGINE & TRANSMISSION

SUSPENSION
BRAKES
WHEELS & TYRES

Announced as the least expensive production car in the world, Tata aimed for a price of
one lakh rupees, or 100,000, which was approximately $2,000 US at the time. Only the
very first customers were able to purchase the car at that price, however, and, as of
2012, the price for the basic Nano is around 150,000. Increasing material costs may be
to blame for this rapid rise in price.
Comparing with Volkswagen Beetle it has relatively lower price, for example the price
of this model was $5,300 in the 1990, from Mexico factory(in 2012 inflation dollars:
111

9428).. The Ford Model T initial price was about 850$(circa today 21,000$)

Cost cutting features

The Nano's design implements many measures that make its manufacture cheap.

The Nano's trunk is only accessible from inside the car, as the rear hatch does
not open.

One windscreen wiper instead of the usual pair

No power steering, unnecessary due to its light weight

Three lug nuts on the wheels instead of the usual four

Only one wing mirror

Radio or CD player is optional

No airbags on any model

624cc rear engine has only 2 cylinders

No air conditioning in base model

About 70% of final car assembly is done by robots

112

Technical specifications
The Nano (2012) is a 38 PS (28 kW; 37 hp) car with a two-cylinder 624 cc rear engine.
The car complies with BS4 Indian emission standards and can also meet European
mission standards as well.
The development of the Nano had led to 31 Design and 37 Technology patents being
filed
Engine:

2 cylinder petrol with Bosch multi-point fuel

injection (single injector)
all aluminium 38
metric horsepower (28 kW) 624 cc (38 cu in)
Value Motronic engine
platform from Bosch

management

2 valves per cylinder overhead camshaft

Compression ratio: 9.5:1

bore stroke: 73.5 mm (2.9 in) 73.5 mm

(2.9 in)

Power: 38 PS (28 kW; 37 hp) @ 5500 +/500rpm

Torque: 51 Nm
500 rpm

(38 ftlbf)

3000

Layout
Rear wheel drive
and
Transmissi
on
4-speed manual transmission

Steering

mechanical rack and pinion w/o servo

113

+/-

Turning radius: 4 metres

Performan Acceleration:
ce
seconds

0-60 km/h

(37 mph):

Maximum speed: 105 km/h (65 mph)

Fuel efficiency (overall): 25.35 kilometres

per litre (4.24 litres per 100 kilometres
(66.6 mpg-imp; 55.5 mpg-US))

Body and Seat belt

dimension
s
Trunk capacity: 150 L (5.3 cu ft)

Suspensio Front brake: 180 mm drum

n, Tires &
Brakes
Rear brake: 180 mm drum

Front track: 1,325 mm (52.2 in)

Rear track: 1,315 mm (51.8 in)

Ground clearance: 180 mm (7.1 in)]

Front suspension: McPherson

lower A arm

strut with

Rear suspension: Independent coil spring

12-inch wheels

114

Supplier

Part/system

Texspin

Clutch Bearings

Bosch

Oxygen sensor, Gasoline injection system

(diesel will follow), starter, alternator, brake
system

Continental AG

Gasoline fuel supply system, fuel level

sensor

Caparo

Inner structural panels

HSI AUTO

Static sealing systems (Weather Strips)

Delphi

Instrument cluster

Rane Madras
Steering Assembly
Limited

Denso

Windshield wiper system (single motor and

arm)

FAG
Kugelfischer

Rear-wheel bearing

Federal-Mogul

Pistons, Piston rings, Spark plugs, Gaskets,

Systems protection

Ficosa

Rear-view mirrors, interior mirrors, manual

and CVT shifters, washer system

Freudenberg

Engine sealing

GKN

Driveshafts

115

INA

Shifting elements

ITW Deltar

Outside and inside door handles

Johnson
Controls

Seating

Mahle

Camshafts, spin-on oil filters, fuel filters

and air cleaners

Saint-Gobain

Glass

TRW

Brake system

Ceekay
Daikin/Valeo

Clutch sets

Vibracoustic

Engine mounts

Visteon

Air induction system

ZF
Friedrichshafe
n AG

Chassis components, including tie rods

Behr

HVAC for the luxury version

Drr

Lean Paint Shop

Tata Motors is known to offer its consumers with cars that are not only durable and easy to
maintain but are stylish and easy on pocket simultaneously. Tata Motors officially launched
Tata Nano also known as Worlds cheapest car in March 2009 and since then it took no
time in becoming one of the most loved and appreciated car amongst the Indian consumers.
On Nov 21st 2011, Tata Motors delightedly launched the brand new and improved Tata Nano
2012. This new compact car is loaded with some exciting features and is powered with a
116

much powerful petrol engine and keeps the skill to deliver a striking mileage of
25.4 km per litre. Apart from the engine, Tata Motors have also worked on the interiors of the
car and gave it a more luxurious feel. The major highlight here is the all new Tata Nano price
will be available the same as before.

Taking about the engine of the car, 2012 Tata Nano comes with powerful petrol engine with a
displacement of 624 cc. the engine churns out a good amount of 38 PS of power instead of 35
PS along with 51 Nm of torque, which was 48 Nm in the previous model. The engine is
highly fuel efficient and delivers a whopping mileage of 25.4 km per litre, which was 23.6
km per litre in the current variant. Tata Motors have worked extra hard to boost up the
mileage, which in turn ensures that new Tata Nano has the lowest carbon dioxide emission
when compared to other cars in the Indian market.

Moving ahead from the engine, the 2012 Tata Nano does have an awesome pick-up and
acceleration. The car takes hardly any time to touch the top speed of 105 km. Furthermore,
this compact car keeps the ability to handle inclines with the grade-ability of around 30%
together with great turning radius of just 4 meters that makes the car a flawless combination
of performance and power.

Being such a great performer, 2012 Tata Nano has an outstanding ride and handling
capabilities. Tata Motors revamped its suspension set-up, which include anti-roll bar at the
front accompanied with the smooth steering mechanism. In the Nano LX and Nano CX
model, booster assisted brakes added charm and now the standard model of Tata Nano will
also be adorned with these brakes. More exterior appeal is added with the tip-tap mirrors on
the either side of the doors, which makes the driving more convenient and easier.

The firm has also managed to work successfully on the interiors of the all new Tata Nano.
The color usage is bold and sophisticated and gives the whole interiors a lush and plush feel.
The seats are upholstered with high quality fabrics that make the car more comfortable and
relaxing for the passengers. The exteriors of the new 2012 Tata Nano are fabulous. Full wheel
caps add so much of distinctiveness to the car. Moreover, Tata Motors has given the
consumers a wide range of color choices to choose from, which include Mojito Green, Aqua
Bleu, Papaya Orange, Serene White, pearl White, Sunshine Yellow, Champagne Gold, Meteor
Silver, Rouge Red and Neon Rush.

During the launch of the new Tata Nano, PM Telang, the MD of Operations, Tata Motors
India stated that around 90% of the Tata Nano owners are extremely satisfied with Tata Nano
and have been providing regular feedbacks. And keeping those feedbacks in mind, Tata
Motors have developed the new Tata Nano. In future too, the firm will continue to add on
technologically enhanced features in its cars.
117

With new Tata Nano, Tata Motors have proved to the critics and to the consumers that it is
capable of proffering the consumers with the cars, which are not only pocket friendly but are
also stylish and chic. Some of the other highlights of 2012 Tata Nano comprise of electronic
trip meter, front power windows, provision for 12 V socket, fog lamps, door handles, rear
spoilers, cup holders intelligently placed in the front console, tip-tap mirrors, body colored
bumper, full wheel covers and booster aided brakes.

In its entirety, 2012 Tata Nano is perfect amalgamation of style, power and performance and
to add more charm and appeal, the luxury features, such as power windows, upholstered seats
and booster aided brakes do full justice to this new compact car. Whats more in store is that
Tata Motors provide the consumers with 60,000 kms or 4 years, whichever is earlier
unrivaled warranty.

Tata Nano Models

Tata Nano Models

Tata Nano Std BSIII

Tata Nano Std

This variant now complies thoroughly with the BSIII emission

standards. Features in Std BS IV variant will be same in Std BS III.
This variant now complies thoroughly with the BSIV emission
standards. This is the base variant of Tata Nano, which is now
offered with a driver side external rear view mirror, clear
headlamps, tubeless tyres, booster assisted brakes and frontssuspension with anti-roll bar and three color options - Rouge Red,

118

Aqua Blue and Serene White.

Tata Nano Cx BSIII

This variant now complies thoroughly with the BSIII emission

standards. Features in CX BS IV variant will be same in CX BS III

Tata Nano Cx

This variant now complies thoroughly with the BSIV emission

standards. This is the mid variant of Tata Nano offered with an
addition of five colors, the Rouge Red, Neon Rush, Serene White,
Meteor Silver, Papaya Orange along with the Champagne Gold
exteriors. The external mirrors on passenger and the driver side
make way into the car. The air-conditioner is a brand new
addition, with heating feature, the foldable rear seats with nap
rest, half wheel covers, booster assisted brakes and parcel shelf
are the new features added.

Tata Nano Lx BSIII

This variant now complies thoroughly with the BSIII emission

standards. Features in LX BS IV variant will be same in LX BS III

Tata Nano Lx

This variant now complies thoroughly with the BSIV emission

standards. The top variant is offered with a choice of 4 new spicy
colors with the existing Sunshine Yellow and Champagne Gold still
on the platter. Pearl White, Papaya Orange, Mojito Green, and
Meteor Silver are the new options. The central locking, front
power windows, cup holder for front passengers, body colored
bumpers, fog lamps electronic trip meter, rear spoiler and full
wheel covers are newly added on the car.

Tata Nano Mileage

119

The <strong>624 cc petrol engine of Tata Nano 2012</strong> has seen a significant
improvement with the peak power mounting to 38 Ps from 35 PS, a remarkable 10% increase
in the power output. The maximum torque now produced is 51 Nm from 48 Nm earlier. The
fuel efficiency is another key point especially when the petrol engine is under question with
the heaping petrol price in the background. The 25.4 kmpl is a substantial improvement
from the 23.6 kmpl to work in favour of the Tata Nano, which has never letdown a
consumer with low fuel efficiency so far. Tata Nano is now considered to be one of the best in
the small cars with extremely low CO2 emissions promoting the greener environments in the
country with just 92.7 gm/kg CO2 gas emission maintaining a low kerb weight of 600 kg.
The low kerb weight is one of the factors to work in favour of the car to surpass the latest
BSIV emission requirements. There is a refinement in the engine which now sedately reaches
the top speed of 105 kmph, an improvement from 100 kmph mark. The extreme compact size
has once again come into aid keeping the low turning radius of 4 m proving its efficiency yet
again.

Power of Tata Nano

The 624 cc Multi Point Fuel Injection (MPFI) petrol engine is tweaked to emerge out to be
more powerful than ever before. The petrol engine now exudes 38 Ps from 35 PS, a
120

remarkable 10% increase in the power output. Themaximum torque now

produced is 51 Nm from 48 Nm earlier. The fuel efficiency is worked upon to deliver better
mileage of 25.4 kmpl over 23.6 kmpl as certified by ARAI. The 105 kmph top speed is
another point to remove the last shred of disappointment from the consumers side, who might
have faced with 100 kmph maximum speed earlier.

CHAPTER 6
MARKETING STRATEGY OF TATA CARS

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MARKETING
Marketing is a societal process by which individual and groups obtain what they need and
want through creating, offering and freely exchanging products and services of value with or
other wise it is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods. Services to create exchanges that satisfy individual and
organizational goals.
MARKETING STRATEGY
Marketing strategy is a set of objective polices and rules that leas the company's
marketing efforts. It is the marketing approach to accomplish the bread objective of the
marketing plan. The several of marketing strategy are given below.
1. Selecting largest markets segmentation.
2. Positioning
3. Product
4. Price
5. Place
6. Promotion
7. Research and Development
8. Marketing research
The main important part of a marketing company is distribution channel. If this
process is not as per the requirement of the customer then the whole company will not
survived in this competition market. So, every company always concentrates on their
distribution process/channel.
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MARKETING MIX
Marketers, in order to bring out desired responses from their target markets, use a number of
tools that form a marketing mix. Marketing mix is defined as the set of marketing tools that
an organization uses to follow its marketing objectives in the target market. McCarthy has
classified these tools as the 4Ps of marketing which are product, price, place and
promotion. The 4Ps are the ideas to take into account while marketing a product. They
constitute the root of the marketing mix. In order to efficiently market a product, it is
therefore imperative to get an optimally correct mix of the 4Ps. In an ideal situation, if a
company is able to plan a promotion for the right product, at the right price and to get it to
their preferred market, in the right place then it is highly effective for the company. A brief
description of the four elements of marketing mix is as follows1:
1

TARGET MARKET

. Product: The first element of marketing mix is product. A Product is anything that can be
offered to a market for attention, acquisition, use, or consumption that might satisfy a want or
need. Products include physical objects, services, events, persons, places, ideas or mixes of
these. This element involves decisions concerning product line, quality, design, brand name,
123

label, after sales services, warranties, product range, etc. An appropriate

combination of features and benefits by the small firm will provide the product with USP
(unique selling proposition). This will enhance the customer loyalty in favour of its products.
Products and services are broadly classified into consumer products and industrial products.
Consumer products are bought for final consumption; where as Industrial products are bought
by individuals and organisations for further processing or for use in conducting business.
Other ways of classifying products are as follows:
a. Convenience products: These are consumer products that the customer buys very
frequently, without much deliberation. They are low priced of low value and are widely
available at many outlets. They may be further subdivided as:
Staple Products: Items like milk, bread, butter etc. which the family consumes regularly.
Once in the beginning the decision is programmed and it is usually carried on without
change.
Impulse Products: Purchase of these is unplanned and impulsive. Usually when the
consumer is buying other products, he buys these spontaneously for e.g. Magazines, toffees
and chocolates. Usually these products are located where they can be easily noticed.
Emergency products: Purchase of these products is done in an emergency as a result of
urgent and compelling needs. Often a consumer pays more for these.
For example while traveling if someone has forgotten his toothbrush orshaving kit; he will
buy it at the available price.
b. Shopping products: These are less frequently purchased and the customer carefully
checks suitability, quality, price and style. He spends much more time and effort in gathering
information and making comparisons. E.g. furniture, clothing and used cars.
c. Specialty products: These are consumer goods with unique characteristics / brand
identification for which a significant group of buyers is willing to make a special purchase
effort. For example, Mitsubishi Lancer, Ray ban glasses,Cars.
d. Unsought product: These are products that potential buyers do not know exist or do not
yet want .For example Life Insurance, a Lawyers services in contesting a Will.

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The above product decisions are very important to ensure the sale of products.
A product has both tangible and intangible components. While buying a product, the
customer does not merely look for the physical product, but a bundle of satisfaction. Thus the
impact that any product has upon a buyer goes well beyond its obvious characteristics. There
is a psychological dimension to all customer purchases; what a customer thinks about a
product is influenced by far more than the product itself. For example, the buyer of an air
conditioner is not purchasing cooling machine only. He looks for attractive colour and design,
durability, low noise, quick cooling, etc. These influencing factors must be considered by the
small firms to meet the requirements of different kinds of customers.
2. Price: The second element is the price, which affects the volume of sales. It is one of the
most difficult tasks of the marketing manager to fix the right price. The variables that
significantly influence the price of a product are: demand of the product, cost, competition
and government regulation. The product mix includes: determination of unit price of the
product, pricing policies and strategies, discounts and level of margins, credit policy, terms of
delivery, payment, etc. Pricing decisions have direct influence on the sales volume and profits
of the firm. Price, therefore, is an important element of the marketing mix. Right price can be
determined through pricing research and by adopting test-marketing techniques. Small firms
should think of pricing as a method whereby prices are set with regard to costs, profit targets,
competition and the perceived value of products. Because of their simplicity, cost-pluspricing are attractive to small businesses, though this is not the only mode of pricing utilized
by small firms. For example, the profit margin in the cost-plus approach may well be fixed
after examining both the nature of the market and the competitor activity within it. It is a
mistake for small firms to rely wholly on cost-plus, but very often small firms do that to the
detriment of profits and market share.
The pricing policies mainly followed by the small firms are:
a. Competitive pricing: This method is used when the market is highly competitive and the
product is not differentiated significantly from the competitors products.
b. Skimming-the-cream pricing: Under this pricing policy, higher prices are charged during
the initial stages of the introduction of a new product. The aim is to recover the initial
investment quickly. This policy is quite effective when the demand for a product is likely to
be more inelastic with respect to price in its early stages; to segment the market into segments

125

that differ in price elasticity of demand and to restrict the demand to a level,
which a firm can easily meet.
c. Penetration pricing: Under this policy, prices are fixed below the competitive level to
obtain a larger share of the market. Penetration pricing is likely to be more successful when
the product has a highly elastic demand; the production is carried out on a large scale to
achieve low cost of production per unit; and there is strong competition in the market.
3. Promotion: Promotion refers to the various activities undertaken by the enterprise to
communicate and promote its products to the target market. The different methods of
promoting a product are through advertisement, personal selling, sales promotion and
publicity.
4. Place or Physical Distribution: This is another key marketing mix tool, which stands for
the various activities the company undertakes to make the product available to target
customers. Place mix or delivery mix is the physical distribution of products at the right time
and at the right place. It refers to finding out the best means of selling, sources of selling
(wholesaler, retailers, and agents), inventory control, storage facility, location,warehousing,
transportation, etc. This includes decisions about the channels of distribution, which make the
product available to target customers at the right time, at the right place and at the right price.
By selecting wrong distribution channels or by using the ones it has traditionally used, a
small firm could be depriving it of new market opportunities. In a situation where a small
firm has only one primary product, the general rise and fall of sales will lead to a rise and fall
of the firm, unless the firm learns to consistently adjust its marketing mix to match consumer
demand.
PRODUCT PRICING POLICY
Product Range :
Tata (Sedan): Popular Tata sedan car prices start with Tata cars at a bit below rupees four
lakhs to Tata cars at a bit above rupees eight lakhs. Tata sedan cars include.
Tata Indigo (Sedan): Tata Indigo is India's first Sedan model - a mid size C' segment
completely indigenous sedan. For the price that it is offered, this model is quipped with a
host of features that offer extravagant comfort and imposing luxury, offering complete value
for money. Tata (Sedan) The Tata Indigo with its petrol and diesel variants targets the middle
126

class consumer with Tata Sedan cars between rupees four and eight lakhs. Tata
Indigo variants include.
A. Indigo CS GLE (Petrol): The Indigo CS GLE is the base level version in the Indigo
CS range of Tata Motors. New cars have a show room price of around Rs.3,80,000
and on-road price of around Rs.4,15,000 inclusive of all charges such as insurance,
octroi, RTO, etc. Indigo CS GLE car prices vary with the car dealer's location.
B. Indigo CS GLS (Petrol): The Indigo CS GLS is the upper level version with higher
price in the Indigo CS range of Tata Motors. New cars in this series have a showroom
price ranging from around four lakhs to around four lakhs fifty thousand inclusive of
all charges like insurance, octroi, RTO, etc.
C. Indigo CS LE (Diesel): The Indigo CS LE is the higher level version in the Indigo CS
range of Tata Motors featuring diesel transmission. At the showroom, this car costs
around Rs.4,20,000 with an on-road price of around Rs.4,60,000. This includes
standard ancillary charges also.
D. Indigo CS LS (Diesel): The Indigo CS LS is the top level version with higher price in
the Indigo CS range of Tata Motors. The Indigo CS LS is now available at a
showroom price of around Rs.4,50,000 with an on road price of around Rs.4,95,000
including supplementary charges.
E. Indigo GV (Petrol): Indigo GV is the entry level petrol variant of the Indigo series.
New cars have a show room price of around Rs.3,85,000 and on-road price of around
Rs.4,30,000 inclusive of all charges such as insurance, octroi, RTO, etc.
F. Indigo GVE (Petrol): This variant of the Indigo V series is packed with superior
looks and features as available in its segment. New cars in this series have a
showroom price ranging from around three lakhs to around four lakhs inclusive of all
charges like insurance, octroi, RTO, etc. Fiesta 1.4 Duratec Zxi car prices vary with
the car dealer's location.
G. Indigo V (Diesel): Indigo V is marked for its advanced technology and impressive
performance. At the showroom, this car costs around Rs.4,30,000 with an on-road
price of around Rs.4,80,000. This includes standard ancillary charges also.
H. Indigo GVS (Petrol): Indigo GVS is equipped with advanced features and facilities to
provide you with maximum comfort and control. The Indigo GVS (Petrol) is now
available at a showroom price of around Rs.4,35,000 with an on road price of around
Rs.4,85,000 including supplementary charges.
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I. Indigo VE (Diesel):

The perfect combination of power, style and

performance is Indigo VE. New cars have a show room price of around Rs.4,45,000
and on-road price of around Rs.5,00,000. Indigo VE car prices vary with the car
dealer's location.
J. Indigo GLS (Petrol): New cars in this series have a showroom price ranging from
around four lakhs to around five lakhs inclusive of all charges like insurance, octroi,
RTO, etc. Fiesta 1.4 Duratec Zxi car prices vary with the car dealer's location.
K. Indigo VS (Diesel): At the showroom, this car costs around Rs.4,65,000 with an onroad price of around Rs.5,21, 000. This includes standard ancillary charges also.
L. Indigo GLX (Petrol): The Indigo GVS (Petrol) is now available at a showroom price
of around Rs.4,90,000 with an on road price of around Rs.5,45,000 including
supplementary charges.
M. Indigo LS (Diesel): The advanced technology engine, attractive looks and decent
performance makes Indigo LS different from others in its segment. New cars have a
show room price of around Rs.4,90,000 and on-road price of around Rs.5,50,000.
Indigo LS car prices vary with the car dealer's location.
N. Indigo XL (Petrol): New cars in this series have a showroom price ranging from
around 5.30 lakhs to around 5.90 lakhs inclusive of all charges like insurance, octroi,
RTO, etc. Indigo XL car prices vary with the car dealer's location.
O. Indigo LX (Diesel): At the showroom, this car costs around Rs.5,30,000 with an onroad price of around Rs.5,95, 000. This includes standard ancillary charges also.
P. Indigo LS Dicor (Diesel): The Indigo GVS (Petrol) is now available at a showroom
price of around Rs.5,35,000 with an on road price of around Rs.5,95,000 including
supplementary charges.
Q. Indigo LX Dicor (Diesel): The Indigo LS Dicor is the mid level variant in this series
with top range price tag and high end features. New cars in this series have a
showroom price ranging from around 5.80 lakhs to around 6.50 lakhs inclusive of all
charges like insurance, octroi, RTO, etc. Indigo LX Dicor car prices vary with the car
dealer's location.
R. Indigo XL (Diesel): This diesel variant of the Indigo collection is now available at a
showroom price of around Rs.6,20,000 with an on road price of around Rs.6,85,000
including supplementary charges.
S. Indigo XL Grand (Petrol): The entry level grand version of Indigo model is equipped
with impressive interiors and all the latest features available in its segment. New cars
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have a show room price of around Rs.6,70,000 and on-road price of

around Rs.7,45,000. Indigo XL Grand car prices vary with the car dealer's location.
T. Indigo XL Grand (Diesel): New cars in this series have a showroom price ranging
from around seven lakhs to around eight lakhs inclusive of all charges like insurance,
octroi, RTO, etc. Indigo XL Grand car prices vary with the car dealer's location.

Tata (SUV): Popular Tata SUV car prices begin with Tata SUVs at a bit above rupees four
lakhs fifty thousand to Tata SUVs at a bit below rupees ten lakhs. Tata SUV models include.
Tata Sumo (SUV): The Tata Sumo is now renamed as Tata Sumo Victa with vastly improved
features and design. Tata (SUV) The Tata Sumo with its petrol and diesel variants targets the
middle class consumer with Tata SUV cars between rupees four and seven lakhs. Tata Sumo
variants include.

A. Sumo CX-10 Seater (Diesel): Sumo CX-10 Seater boasts for its space and power
features. New cars in this series have a showroom price ranging from around five
lakhs to around six lakhs inclusive of all charges like insurance, octroi, RTO, etc.
Indigo XL Grand car prices vary with the car dealer's location.
B. Sumo Victa LX (Diesel): Sumo Victa LX is the entry level variant of the upgraded
model of Tata Sumo. New cars have a show room price of around Rs.5, 33,000 and
on-road price of around Rs.6, 00,000. Sumo Victa LX car prices vary with the car
dealer's location.
C. Sumo Victa EX (Diesel): New cars in this series have a showroom price ranging from
around five lakhs to around six lakhs inclusive of all charges like insurance, octroi,
RTO, etc. Sumo Victa EX car prices vary with the car dealer's location.
D. Sumo Victa GX 7 Seater (Diesel): Sumo Victa GX 7 Seater (Diesel) throws an open
challenge to others in its segment for space, power and performance. The Sumo Victa
GX is now available at a showroom price of around Rs.6,24,000 with an on road price
of around Rs.7,00,000 including supplementary charges.
E. Sumo Victa Gx 8 Seater (Diesel):Sumo Victa GX 8 Seater (Diesel) throws an open
challenge to others in its segment for space, power and performance.

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At the

showroom, this car costs around Rs.6,30,000 with an on-road price of

around Rs.7,00,000.

Tata Nano Pricing Strategy

Objectives- increase in sales
Repositioning
expansion
Tata initially targeted the vehicle as "the least expensive production car in the world" aiming
for a starting price of 100,000 rupees or approximately $2050 US despite rapidly rising
material prices. As of August 2008, material costs have risen from 13% to 23% over the cars
development,and Tata now faces the choice of:
introducing the car with an artificially low price through govt-subsidies and tax-breaks, or
foregoing profit on the car, or
using vertical-integration, or
partially using inexpensive polymers or biodegradable plastics instead of a full metal-body,
or raising the price of the car
An increased price on the Nano will likely decrease demand.
TATA unveils the worlds cheapest car:
The Nano is also much lighter than comparable models as a result of efforts to reduce the
amount of steel in the car (including the use of
an aluminum engine) and the use of lightweight steel where possible. The car currently meets
all Indian emission, pollution, and safety standards, though it only attains a maximum speed
of about 65 mph. The fuel efficiency is attractive - 50 miles to the gallon.
Hearing all this, many Western executives doubt that this new car represents real innovation.
Too often, when they think of innovation, they focus on product innovation using
breakthrough

technologies;

often,

specifically,

on

patents.

Tata Motors has filed for 34 patents associated with the design of the Nano, which contrasts
with the roughly 280 patents awarded to General Motors [ Images ] every year. Admittedly
that figure tallies all of GM's research efforts, but if innovation is measured only in terms of
patents, no wonder the Nano is not of much interest to Western executives.
Measuring progress solely by patent creation misses a key dimension of innovation: Some of
the most valuable innovations take existing, patented components and remix them in ways
that more effectively..

130

Indian Tata Motors (ITM) will release its 4th quarter earnings on May 19th.
According to the median estimates of a survey of 15 analysts, heres what to expect:
- Indica compact car wins customers from market leader Maruti Udyog Ltd.
- Net income may jump 30 per cent to a record 5 billion rupees ($111 million)
- Sales may rise 22 per cent to 65 billion rupees
- Tata Motors annual profit may rise 13 per cent to 15.71 billion rupees
- Tata Motors sold 48,361 passenger cars in the quarter, an increase of 14 per cent from last
year, giving it an estimated 19 per cent of Indias car market
- Tata Motors, which earns almost two-thirds of its revenue selling trucks and buses, is also
introducing new commercial vehicles, such as a 1-ton mini truck, the Ace.

And the good news keeps rolling in for Tata.

On Saturday, Rediff reported that the Ace model, launched in May 2005 as the base model in
Tata's commercial vehicles segment, has surpassed the companys target of 30,000 units in its
first year of operations.
Tata's Ace was introduced as a competitor for three-wheel vehicles that have a truck bed to
carry cargo. The company decided to focus on the ROI-sensitive customer who would be
willing to pay a slightly higher price, but would require lower operating costs. Tata Motors
also had to address a key concern of commercial vehicle buyers - lead (time taken to travel a
distance) and load (weight it could take). Hence, the Ace was built to achieve top speeds of
64 kmph compared to 50-56 kmph in the case of three-wheelers.
With an aggressive pricing strategy, Tata Motors launched the Ace in Tamil Nadu, Kerala,
Karnataka, Andhra Pradesh, and Maharashtra where 70% of the subcontinent's three-wheeler
sales take place. At a value price point of Rs 220,000, the Ace was targeted to attract buyers
who would otherwise buy three-wheelers at price points from Rs 120,000-Rs 190,000.
Keep an eye on this stock.
TTM 1-yr chart: ata Motors is India's largest company in the commercial vehicle sector. The
company is the world's fourth largest truck manufacturer and second largest bus manufacturer
in the world. In India, Tata Motors is the leader in every commercial vehicle segment and it is
the third largest passenger car maker.
Tata Motors is able to produce more than 4 million different types of vehicles such as cars,
trucks, commercial vehicles, SUVs and many more since the company began in 1945.
The marketing strategy of Tata Motors is one of the most successful marketing strategies used
by a car maker in the car industry. The car company lays emphasis on the Product Branding
131

and Advertising. Advertising is the common way to make public aware of the
new product. Besides, advertising also help to create a brand image. Over the years, Tata
Motors have been successful in their own might in creating a brand image for itself.
Tata Motors also stresses on the packaging, innovations and quality control of a product. Tata
Motors is being able to provide many innovative features to lure customers. E.g., the Tata
Safari 4X4 Dicor with its "Reverse Guide System", where a weather-proof camera is fixed to
the rear end of the car to help the driver while reversing the car.
The pricing policy of Tata Motors is always appreciated by the public. The price of a car can
be determined by factors such as market condition, cost incurred to build a car, profit by
company and dealer profit. Tata Motors makes use of strategies such as discount and special
promotions every now and then. This attracts car lovers to opt for a Tata car. Tata Motors
gives discounts based the company's profit or from dealer's profit at a certain range.
Tata Motors has felt its presence across India and abroad with its showrooms. This is another
marketing strategy of Tata Motors that boosts sales of vehicles.
The car company has established many servicing centres as well which stands as a back bone
for the company to connect with the people. Tata Motors easy access to the general public has
made the brand grow in size and stature. Tata, due to its presence in the commercial as well
as the passenger vehicle segment, know the pulse of the people unlike many other car
makers.Tata which is a huge conglomerate has branched its business into various segments
like finance, banking, public sectors domains and other major fields apart from automobiles
which has made Tata a household name in India and abroad.
Tata Motors' ambitious World Truck or Prima hasn't quite got the start Tata would have
wanted. Its sales target deficit is a massive 80 per cent plus, so now the company is working
overtime to rework price points and look at quickly introducing new variants.
With the Nano on one end and the Land Rover-Jaguar deal at the other, is Tata Motors [ Get
Quote ] trying to do too much, in too little time?
Last fortnight, when Tata Group chairman Ratan Tata [ Images ] unveiled the company's Rs
1-lakh car, it was in a loud, crowded, chaotic gathering, prompting Financial Times to
comment that the event was a possible indicator of what could happen on Indian roads, when
the car is launched later this year.
On his part, Tata would prefer to not be distracted by such remarks, as the development of the
Nano has seen opposition from various quarters; politicians, environmentalists, competitors.
"The toughest part was continuing to believe that we could do it," Tata told journalists
covering the Auto Expo in New Delhi [Images ], where he unveiled the lowest-priced car in
the world. He added that "a promise is a promise", hinting at the ability of his company to
deliver even in the face of brutal scepticism.
But Nano is just one reason why the world is looking at Tata Motors, the Tata Group's
automobile venture. The other big event is the company's likely association with American
132

auto maker Ford's [ Images ] premium brands Land Rover [ Images ] and
Jaguar.
Here, Tata is competing with a group of private equity players including one with Jacques
Nasser, former Ford CEO, at the helm. Recent reports, though, indicate that Tata is the
frontrunner. Between launching the Rs 1-lakh Nano and the Land Rover and Jaguar that are
priced anywhere between 30 and 100 times more, Tata Motors is aiming for a presence across
the spectrum.
At one level Tata might well compete with two-wheeler manufacturers - Ratan Tata has
admitted that Nano has been inspired by the vision of middle-class Indian families, complete
with children, balanced precariously on two-wheelers.
On another front, the company aspires to compete with giants like BMW [ Images ],
Mercedes [ Images ] and Audi, if it bags the Jaguar, and take on the Landcruisers of the world
with the Land Rover acquisition. What drives the Tata Motors strategy? Will the company be
able to pull it off?

Too much, but too late?

The answer could be as complex as the question, say analysts. But they add that the company
has little choice, particularly if it is nursing global ambitions like its group companies Tata
Steel [ Get Quote ], Tata Tea [ Get Quote ] and others.
Already shackled by government regulations and licensing norms, Indian automakers are at
least two, if not five, decades behind their global peers. "If Tata Motors wants to be at the
forefront of the global automobile scene, it has to take the fast-track route to progress," says
an automobile industry analyst. The company declined to comment.
Both the Nano, widely promoted as the common man's automobile, and the luxury brands are
capable of doing exactly this: instantly push Tata Motors onto global centrestage.
"Smaller automobile companies like Tata Motors or the French automaker Renault [ Images ]
have little option but to develop low-cost cars to grab global attention," says another analyst.
His rationale: all the bigger car makers are concentrating on developing bigger, sturdier and
more powerful cars, because that is where the demand is. In most developed car markets,
even the small car (hatchback) is no longer a sub-1,000 cc car, but a more powerful 1-litre
(1,000 cc), if not 1.4-litre engine.
"No automobile company today can survive with presence in one single market alone. You
have to go global," states Dilip Chenoy, director general of the Society of Indian Automobile
Manufacturers (SIAM).
Chenoy adds that companies need to grow volumes in other markets, not just by exporting
but by establishing manufacturing facilities in these countries. For instance, the Tata Group
133

has started production facilities in Thailand and South Africa [ Images ] for its
commercial vehicles (it also has assembly lines for cars).

One in a billion
The 623-cc Nano targets a market that has been left vacant and unguarded by most global
players. The Nano may meet not just the requirements of the Indian market, particularly in
the smaller, tier-three and tier-four towns, but could also find a huge export market in other
South Asian, African or Latin American countries.
The speedometer and other instruments panel in the Nano are, therefore, kept in the centre of
the dashboard, rather than facing the driver, to make it easy - and cheaper - to switch the
position of the steering wheel from the right to the left.
The Nano could also give Tata Motors crucial global-scale volumes and access to a larger
distribution network, besides helping it to churn its models faster.
Typically, India [ Images ]n car models roll out of plants for a far longer time than any global
car. For instance, it took Tata's first car, the Indica, about nine years to roll out a million cars.
Even that was a record, of sorts, in India.
In comparison, for a global manufacturer, it may take just three or four years. That's because
the market is huge globally, with the US market itself estimated at 14 million units a year.
Compare that with India - just 1 million units a year, although the market is growing rapidly
and is expected to touch 3 million units by 2012 (source: industry estimates).
The surge in demand and access to more markets means that Indian car makers will be able to
develop cars with better technology, much like their global peers. "It takes roughly Rs 3,0004,000 crore (Rs 30-40 billion) to develop a vehicle from scratch. But global auto
manufacturers can do it more regularly because they recover their investments faster, given
their access to larger markets," says an industry analyst. (True, the Tata Nano [ Images ],
much like the Indica, was developed at a cost of Rs 1,700 crore, including the cost of the
plant that will build it. Being able to do that 10 years down the line since Indica is quite a
feat. But both cars are essentially machines with no-frills.)
If the opinion of consultants matter, Tata's Nano has all the makings of a winner. "Going
forward, even other companies present will make India their hub for production of small cars.
India will be the small car hub for the world," says Yezdi Nagporewalla, national industry
director of management consultancy KPMG.
He adds that the country has an edge in terms of labour cost and flexibility that put India in
the best place as far as the Asia-Pacific region is concerned.
According to KPMG's just-released India Automotive Study 2007, "India's low labour costs,
high level of available management and engineering skills have maintained the
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competitiveness of domestic auto companies and made it an attractive location

for direct manufacturing investors."
The report, however, hints that cost competitiveness could be threatened if infrastructure
bottlenecks continue in India.
Brands or high technology?
If the Nano is intended to reach the masses across the globe, much like the global small cars
Model-T, Beetle and Mini did in the 20th century, what is the strategy behind bidding for the
Land Rover and Jaguar? That's a question others, too, have pondered.
Internationally, media reports are a mixed bag. While some feel that the Tatas can leverage
the benefits of the acquisition with their existing business, others pooh-pooh the suggestion.
"These are marquee brands, and pride of ownership - which is what the equity analysts fear could be a factor driving the desire to acquire them," is the comment in a India
Knowledge@Wharton article (Tiger by the tail: the Tatas are closing in on Jaguar and Land
Rover).
But analysts agree that the legacy of both the Land Rover and Jaguar brands could be a shot
in the arm for the Tatas as the company powers its global ambitions in automobiles. Both
Land Rover and Jaguar are well recognised badges in the upmarket SUV (sports utility
vehicle) and luxury car segments, respectively.
"The Jaguar-Land Rover deal is meant to fuel Tata Motors' global aspirations. This buy-out
will establish its global footprint as a company with premium brands," says Nagporewalla.
Also, the acquisition can give Tata Motors access to a readymade product pipeline and
technology. Developing a car from scratch could otherwise take the company anywhere
between two and five years. The Nano, for instance, has been talked about for more than four
years.
However, the technology that propels top-end cars is changing. "Hybrid technology will take
over luxury cars in a decade," predicts an auto expert. Post the takeover, will the Tatas be left
with obsolete technology? No, says the expert. "In the interim, Ford's existing technology
will fill the need gap for the Tatas."
He predicts that at a later stage, the company could acquire a hybrid powerplant manufacturer
or enter a strategic technology development venture with an established car maker to meet
their technology requirements.
"Couple the heritage of Jaguar and new-age technology and you can see a winner emerging,"
he adds. Tata Motors is unlikely to follow the Toyota-Lexus route and wait for three decades
before attacking the luxury car market with its own brand.
But is the Tata Group capable of bringing that little extra to the table for Land Rover and
Jaguar - something more than what Ford could? An industry observer says that marketing
skills is certainly one extra.
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"Indian companies like the Tata group will respect and protect the legacy of
these brands," he says. Proof: the Tata acquisition of another UK brand, tea major Tetley, has
worked to the brand's advantage.
The red lights
The road taken by Tata Motors is not without risks. The Nano is certain to make an impact on
the existing small car market in India. A reaction from a wounded Maruti [ Get Quote ], the
market leader, could be devastating, warn analysts. "Maruti could take a price cut for the M800, which would dent Nano sales. Indian buyers may prefer the M-800 for its good resale
value," points out a Mumbai-based auto analyst.
Tata himself fears that rising costs of steel and rubber could play havoc with the car's pricing.
"My greatest fear is inflation. With steel and tyre prices going up, we can't hold the price that
we have held emotionally," he said at the Auto Expo.
Another risk is a change in government regulations that could affect the prospects of the
Nano. In the mid-1990s, Pune-based auto maker Kinetic [ Get Quote ] developed a 700-cc,
low-cost car but the plan had to be abandoned after the government revised excise regulations
so that all automobiles above 650 cc pay a similar excise. With a 623-cc engine, the Nano is
safe. For now. You never know what next month's Budget will bring.
Then, what works for small cars may not work with Land Rover and Jaguar. Tata Motors may
not be able to take advantage of its low-cost manufacturing skills in the premium end - Ford
may be unwilling to sell to a company that could shut plants in the UK immediately after the
acquisition, given that trade unions play a vital role in clearing or opposing a deal.
"At least in the short-to-mid term, Tata will have to take the costs of manufacturing abroad
into consideration," says an expert. KPMG's Nagporewalla, however, is confident that the
company can leverage synergies like sourcing of components at cheaper prices from locations
like India. "These will be really long term benefits," he says.
The other issue is the current performance of both the brands. While Land Rover is a
profitable machine, the same cannot be said about Jaguar - according to the
IndiaKnowledge@Wharton report, Land Rover is expected to post profits in excess of $1
billion for 2007, while Jaguar's losses are estimated at $500 million for the same period.
Nagporewalla, however, maintains these are good buys.
"Buying now will get the Tatas two global brands at a very fair price. They will get better
operating efficiency," he says. That remains to be seen. Meanwhile, there's no doubt that Tata
Motors has an interesting ride ahead.

This article is tagged with: Consumer Goods, Auto Manufacturers - Major,India

136

Tata Motors - Strategy Analysis Document Transcript

1. Tata Motors Stage 42009Sariya Ahmad / Natalie Ballard / Henry Jenkins / Robert
ReevesFEMBA 10C Group 18/1/2009rightcenterOverviewTo avoid depending on the cyclical
automotive economy of India, Tata Motors (TTM) began expanding into new products and
markets, both domestically and internationally, in 1997. This expansion resulted in a greater
Asian market presence. TTM appears to execute the following strategy: researching countries
with products and/or markets countercyclical to India, finding a strategic partner in that
market, selling TTM-branded products within the target market and then exporting their
products regionally. The stage 3 analysis of TTM in Malaysia suggested that the most
successful strategy is to continue this trend. One potential partner was singled out for TTM -a Malaysian vendor called Proton, a local auto manufacturer with existing knowledge of the
large and medium automotive market in Malaysia. If Proton was unwilling to take part in a
joint venture, an alternative for TTM would be to collaborate with a larger auto component
supplier that was looking to vertically integrate into the passenger vehicle segment using
primarily local management and local branding. That strategy addressed the risks of the
Malaysian market while leveraging strengths and opportunities (TTMs management style,
government support and the labor pools knowledge and skills). This paper presents the major
market and non-market factors influencing a decision to further penetrate the Asian
automotive market by focusing on Vietnam as a possible manufacturing location. The factors
undergoing a detailed analysis are the Vietnamese auto market, its economy, FDI and
government assistance, the impact of trade relations and Vietnamese culture and work force.
Comparing Vietnam to Malaysia, it is apparent that TTM should manufacture and distribute
from Malaysia. The recommendation is that TTM focuses on manufacturing its ultra low-cost
passenger vehicle (Nano) in Malaysia and export to AFTA-participating countries (including
Vietnam).Automotive MarketThe automobile industry in Vietnam is relatively young.
However, the accession into WTO and strong indicators of growth are set to spur the activity
in Vietnam's automobile sector. Vietnam's production of automobiles registered an average
growth rate 30.67% annually for the past six years. While the General Office of Statistics
does not break out automobile exports, its Machinery, transport and equipments export
category has grown from $1.3 billion in 2002 to $5.6 billion in 2007. However, automotive
exports appear to be a small portion of that as manufacturers are focused on the domestic
market. That may be an opportunity for a manufacturer such as TTM to build a plant focused
on exports.Domestic demand is growing, as Vietnamese are spending more on automobiles in
areas that have a reasonably developed infrastructure. They are changing their lifestyle as
they become more affluent. With a general increase in income per head, more Vietnamese are
electing to switch from motorcycles and purchase cars. A flexible bank loan structure has also
propelled growth in the passenger vehicle segment. On the other hand, the government
recently imposed a 50% luxury tax, making cars too expensive for most mass-market
customers and almost crippling demand. These indicators signal a significant potential market
for this economy, assuming government intervention doesnt ruin it. According to the
Vietnamese Automotive Manufacturing Association (VAMA), car sales tripled in the second
quarter of 2008 in comparison to the previous year, during an economic slowdown. This
surge was attributed to an increase in the income of Vietnamese and an all time low of car
137

prices. VAMA also revealed that domestic sales recorded by 16 car

manufacturers surged 180% and reached 34,095 units during the period January-March 2008.
Only in March, the sale figures grew almost three times of what was recorded in the same
month last year (at 13,091 units). Moreover, the countrys import of Completely Built Units
(CBUs) in 2007 was around 28,000, 224% high from a year before. Annualized demand
calculates to 164,000 units. Approximately 80 million Vietnamese work in the farming
industry and are one of the larger customer segments for the car industry as they require small
vehicles for transportation. Till 2006, spending on buses, coaches, and taxis had increased
and it is showing high demand for road transportation. In this scenario, cost effective and low
cost passenger cars may see a healthy future ahead. While domestic demand is much lower
than other countries, the Nano competes in a segment between motorbikes and four-wheeled
vehicles a segment likely much broader than current demand statistics reveal.There has
been some reduction of risk associated with the automotive industry since the government
has greatly invested in large infrastructure development. Some of this construction was
evident in the highways and bridges outside of the heart of Saigon observed during the
FEMBA international residential (IR). Unfortunately there is no consistency with government
action. Fred Burke, Managing Partner at Baker Mackenzie, stated that the Vietnamese
government did not have a structured funding mechanism in place (e.g., a functioning bond
market) for infrastructure development. Based on personal observations of Ho Chi Minh City
(HCMC) and its surrounding along with the opinion of Baker Mackenzie, it was evident that
the urban areas lacked sufficient roads, parking, and other facilities that support any
significant expansion of automobiles. While there was significant future opportunity to build
up developing rural areas to support automobiles, this expansion may be years away. Nothing
punctuated the point more than the late arrival of Jean-Marc Merlin, Chairman of Apple-Tree
Group. He was over an hour late to the IR speaking engagement due to excessive flooding on
the roads in HCMC. Companies expanding into Vietnam have faced many challenges when
partnering with local Vietnamese companies. Domestic automotive manufacturers are staterun, so profits are second to employment. Foreign vehicle manufacturers such as MercedesBenz and Ford are already established in Vietnam, setting the state for potential red-ocean
competition. Some companies have stated that the Ministry of Industry should support
foreign interest in Vietnam since the long-term effects could be extremely lucrative for the
country. To have a successful vehicle market, the automotive components, accessories and
other related peripheral industries must significantly develop. While TTM is effective in
creating joint ventures to enter a market, the challenges involved in working with local
Vietnamese companies may not yield success.Economy It is evident both from research and
from the entrepreneurs who spoke to the class (especially Mr. Merlin), Vietnam has a
dynamic market. HCMC, Hanoi and Da Nang are developing into major cosmopolitan cities
with high business potential. Since 2006, Vietnam has developed many attractive qualities for
foreign companies including rapid growth in consumer demand, a generally accommodating
government, increased social stability and a young, hard-working labor pool. Following a
similar direction as China, the Vietnamese economy is changing from a planned economy to a
market economy. With the Communist Party in Vietnam encouraging market reforms (doi
moi) that include greater transparency of laws and regulations, Vietnam has become a
country with a high degree of activity in foreign direct investment. Further, the open market
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has triggered the open expression of an already entrepreneurial culture.

Because of these reforms, Vietnam is among the fastest growing economies in the world with
real GDP growth between 6-8%. Even in the current global recession, Vietnams GDP is
expected to grow by 4.2%. Poverty is on the decline; a sustained increase in per capita
income and an increase in the number of small businesses have created a large demand for
imports. As raised by Messrs. Merlin and Burke, Vietnam presents many legal and political
issues that require more clarity and consistency to easily start and maintain
businesses.Vietnam has the advantage of possessing a large amount of natural resources and a
beneficial geographic location for trade. It shares a border with China and is in close
proximity to Thailand and Singapore. These states have positively influenced Vietnam though
venture capital projects, particularly in the high-tech activities. For example, in February
2006, Intel was awarded a license to invest $600 million in a semiconductor and test
manufacturing facility in HCMC. This location was chosen over India and China, primarily
because of the cost advantage Vietnam has over its rivals. During the visit to Intel, the
Finance Controller stressed the importance of heavy government backing during construction
of the site. Intel worked with local Vietnamese companies on the massive construction site to
build a large fabrication plant. There were many months of delay due to accidents during
construction, creation of processes for safety and general issues with paperwork. Issues like
these can be major roadblocks to starting a business when other more business-friendly
locations in Southeast Asia exist.Foreign Direct Investment / Official Developmental
AssistanceThe increase in foreign direct investment (FDI) spurred the Vietnamese
government to announce a list of 17 major projects to improve the countrys infrastructure by
2020. This improvement includes additional roads, creating opportunities for the use of
passenger vehicles in areas that were previously not reached by automobile traffic. These
projects will be funded by Official Developmental Assistance (ODA) and FDI. The estimated
total cost of initiating these projects is $68 billion. The proposed infrastructure improvements
include: the North-South expressway, Ho Chi Minh Highway and other expressways that
connect various cities in Vietnam; ports in the North (at Lach Huyen) and the South (at Van
Phong), in which the state-run Vinalines has heavily invested; airports in the provinces of
Dong Nai and Kien Giang; and additional terminals added to existing airports. All of these
improvements create the potential to move goods in and out of the country en masse,
enabling higher volumes of trade. Long Thanh airport will be developed into Vietnams
biggest international airport at an estimated cost of $2 billion. It will be able to handle the
Airbus A380 airliner, and will receive 100 million passengers and five million tonnes of
cargo each year. Even with all of this actual and promised infrastructure development,
supply-chain issues continue to be a major headache for many of the companies visited in
HCMC. From furniture to textiles to beverages to semiconductors, all the companies
struggled to get their products to market in Vietnam. How TTM would be able to move large
numbers of its vehicles around Vietnam in a timely manner could be very challenging.Trade
RelationsAs WTO member, Vietnam has the opportunity to establish itself in the permanent
normal trade relations (PTNR) category and increase long-term bilateral trade and
investment. The Vietnamese government has made a clear commitment to obey international
standards that are required by the WTO. With its WTO membership, booming economy and
increased FDI, the Vietnamese economy is projected to double in the next decade. This
139

economic expansion will create more demand for foreign goods and services,
further attracting foreign exporter and investors.With the achievement of the Bilateral Trade
Agreement between Vietnam and the United States in 2001, two-way trade has increased by a
decade. The BTA was the result of President Clintons elimination of the trade embargo on
Vietnam. The U.S saw new opportunities in Vietnam after reducing tariffs and deletion of
market barriers. Not coincidentally, the U.S. is among the top ten investors in Vietnam.
Furthermore, majority of Vietnamese products are exported to the U.S. U.S.-Vietnam trade
relations have been increasing rapidly within the last decade. Two-way trade revenue rose
from $1.2 billion in 2001 to $10 billion in 2006. This boom in trade is thanks to Vietnams
strong economic growth and the US companies provision of equipment, materials,
technology and management skills to developing industrial establishments of Vietnam. This
increase in trade between the two countries should create a rise in domestic disposable
income, as well as make Vietnam a convenient stepping stone into the U.S. market. These are
both potential benefits to TTM. Culture and Workforce The Vietnamese culture is one of the
oldest cultures in the Asian Pacific. Its cultural heritage dates back to the ancient Dong Son
culture during the Bronze Age. The Dong Son people were known to be skilled in cultivating
rice, farming buffaloes and pigs, fishing, sailing and bronze casting. This history has
positioned the Vietnamese as an agrarian civilization, concentrating their crops on rice.
Vietnams history includes a millennium of domination by China (part of the East Asia
Culture Sphere / Chinese Cultural Sphere). Much later, Vietnam was dominated by French
colonial influence, where the Vietnamese were influenced by European merchants. The
spread of Catholicism and the Latin alphabet also came through the European merchants.
Currently Vietnam is the only non-island nation of Indochina which uses the Latin alphabet
to write the national language.Whether through research or direct interactions with
expatriate business owners, Vietnamese are portrayed as kind, hardworking people with the
capability of creating good quality products. They are said to value their time away from
work, so they rarely work overtime. In the event where overtime is a necessity, Vietnamese
prefer working Saturdays, allowing their Sundays free of work, to enjoy life. The majority
of Vietnamese do not volunteer for a seven-day work schedule. Vietnamese take pride in their
work and expect respect. You cannot treat them very strictly, and you cannot scold them or
shout at them in front of other workers," said Tsai of Return Gold. " They will feel ashamed.
You have to respect them. If you treat them well, they will do their best for you." This
attitude, observers say, comes from the sense independence and pride gained during the
French rule. In discussions with factory owners and tour guides, it was clear that many
Vietnamese in urban areas tend to work more than one job to support themselves and their
families. The working conditions appeared deficient with respect to American standards of
safety. As TTMs mission and values articulates a concern for social responsibility, this may
be disconcerting to management.Strikes are common, especially with respect to
compensation and overtime. Strikes may last for a couple hours or a few days depending on
the negotiations through labor union and the government mediators. These strikes impinge on
the work schedules that cause frustrations among foreign companies and customers. To avoid
these issues, foreign companies start Vietnamese workers at higher rates than nationally
required. Further, companies try to avoid these issues by motivating workers through daily
meetings that discuss goals, quality and any concerns from the employees. This additional
140

overhead erodes margins that companies attempt to achieve by targeting a

lower cost of production nation. Both strikes and upward spiraling wages destroy profitability
for companies like TTM that produces low-cost, low-margin products. Approximately twothirds of Vietnamese are under the age of 35, with a national literacy rate of 90-95%. The
country has a large young and educated workforce. Many of the expatriate managers visited
stated that the young Vietnamese workforce is comprised of dedicated workers, but with
some complications. Observed in the factory tours were issues with the quality of the labor
market that were not revealed by research. The culture tends to be tolerant of stealing and
cheating, requiring increased security costs. This was demonstrated in the form of security
guards at the factories and the discussion of surveillance cameras installed by Apple-Tree
Group. Turnover is extremely high (50-60%), increasing onboarding and training costs. A
domestic management pool is almost non-existent; almost every location visited used
expensive expatriate management. Intel clearly demonstrated the problems in their efforts to
bring in local Vietnamese that were properly skilled. They needed to significantly invest in
internal and external training. Also, workers lack an appreciation of workplace etiquette since
they move from jobs frequentlyespecially in the management tier. One manager described
a behavior as no safety culture in plants. They arent used to the quality and safety levels,
said Bruno Le Roy, of France-based Technip. Several of the factory owners referenced these
problems as serious issues related to labor and the costs. Further, as Mr. Merlin noted,
workers will continue to steal from their employer until they are caught (through surveillance
or any other kind of evidence), admit to the crime because they see no wrong in it, and move
to another job. Naturally, high turnover, safety issues and pilferage are not conducive to the
smooth operations of an automotive plant. While the labor pool has great potential, it appears
to be a huge negative for the automotive industry when compared with other neighboring
countries.Vietnam vs. MalaysiaEconomically and politically, Malaysia has a pro-business
focus consisting of regulations, commercial laws and economic policies that facilitate foreign
direct investment. Malaysia is ranked one of the easiest places in Asia to do business by the
World Bank. Malaysias commercial jurisprudence is based on English common law and an
independent judiciary, therefore a fair outcome is more likely. Contract law is enforced
efficiently, compared to other Southeast Asian countries (Global Insight) and especially
Vietnam. This is an advantage when committing large amounts of capital to build a plant, hire
workers, and sell a relatively expensive consumer product. The Malaysian government is
concerned with price stability and economic growth, pursuing fiscal policies to keep deficits
and currency fluctuations. The economy has a higher proportion of middle-class consumers
and is growing faster than the population. If TTM chooses to invest in Malaysia, they would
be placing a manufacturing operation in a nation where all of the major political parties are
focused on price stability and economic growth, maintaining a pro-business environment.On
the other hand, Vietnams annual inflation rate runs between 6-10%. Their skilled labor wage
rates are increasing at a high rate, according to the business owners visited during the
residential. The dong is unofficially pegged to the U.S. dollar, meaning that Vietnam will
likely import inflation as the dollar continues to devalue. Manufacturing inputs and the
overall cost of business will likely get more expensive in Vietnam. Mr. Burke from Baker
Mackenzie discussed how these are still significant issues in Vietnam, particularly that
commercial law jurisprudence is still developing and venue shopping for judges does not
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ensure a reliable outcome. Without judicial consistency, enforcing laws and

creating a culture of compliance requires a lot of time and enforcement. If TTM chooses
Vietnam they would face many challenges. The Vietnamese government has sent mixed
messages in the automotive industry for foreign companies. While the government has
announced a long wish-list for infrastructure improvements, little has been accomplished. The
government has reduced the auto-component import tax while increasing the luxury tax and
driving domestic demand off a cliff. The Vietnamese auto market is extremely competitive
(red ocean) with many existing auto-manufacturing currently operating in the country
fighting over 180,000 potential sales per year. The workforce of Malaysia is a better fit for
TTM because of the quality of their education and the large percentage that already have
experience in the auto industry. Manufacturing TTM vehicles requires great attention to detail
and precision to ensure durability and reliability. This implies a need for an educated, skilled
labor pool at both the manufacturing and management level. Malaysia has a well-educated
workforce, one-third of whom work in the manufacturing sector. English is the lingua franca
for Malaysia and the government has started promoting English as the countrys primary
language in schools. There are very few Malaysian unions and strikes require government
approval, meaning that in practice they are very rare. In addition, there is no minimum wage
and no unemployment insurance so labor costs are reduced, although overtime and the length
of the work week are highly regulated by the government. The Vietnamese workforce, while
young and educated may not provide TTM with an appropriate labor pool. While the
Vietnamese worker is consistently described as hard-working, they have several
disadvantages. They require extensive in-house training, turnover is extremely high, pilferage
is a problem and safety regulations are followed with the same compliance as traffic law. All
of these factors drive up cost while driving down quality.Both Malaysia and Vietnam are
springboards for exports based on their bilateral trade relations and both are ASEAN Free
Trade Area (AFTA) signatories. However Vietnam still has extensive gaps to fill in its
infrastructure before facilitating the level of exporting for which Malaysia is known.
Malaysia has a bilateral free trade agreement with Japan and is negotiating free trade
agreements with Pakistan, Chile, the United States and other nations. Free trade agreements,
while generally positive in aggregate for consumers and countries, can present difficulties for
specific companies. Free trade creates downward pressure on prices in the local market,
although it creates more opportunities for exports abroad. Within ASEAN, tariffs are capped
at 5% by AFTA so regional competition would still be a factor. However, tariffs do help to
price out European and American offerings, giving TTM some time to develop its production
before being beset by a truly global competitive landscape. Vietnam has entered into WTO
and bilateral trade agreements with the United States. It is a signatory to AFTA
(http://www.us-asean.org/afta.asp) but will not be required to implement lower tariffs until
2012. Between the two countries, Malaysia has the mature infrastructure and shipping
environment for exports that can be leveraged to supply AFTA signatories.ConclusionLow
wages do not make up for a lack of infrastructure, poor domestic demand, high labor turnover
and whimsical government policy. To choose Vietnam would mean that TTM commits a great
deal of time and treasure to leverage countrys long-term potential. However, that is a very
uncertain future. If the Vietnamese domestic market is the target, export to it. If the goal is to
choose a country as an export platform, choose one that offers the best infrastructure and
142

relatively low-cost workforce in the region. From the analysis above, Malaysia
provides TTM with better opportunities to realize a return on its investments. Malaysia offers
a welcoming business environment, a stable government, a slow but steadily growing
economy and an excellent distribution system. Vietnam has a booming economy, a nascent
(but growing) automotive market and requires extensive work on its infrastructure. Within a
few years, AFTA will take effect between Thailand, Singapore, Malaysia, Philippines,
Indonesia, and Brunei, lowering the cost of exporting to those countries. By 2012, AFTA will
spread to Myanmar, Cambodia, Laos and Vietnam. It is the conclusion of this paper that
investing in Malaysia to build automobiles for export will augment Tata Motors investment
in Thailand and position the company to take advantage of the increased demand for small
and midsized cars in Asia and beyond. References

Advertisement & Publicity

Publicity of tata motors
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to
Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and
is engaged in community and social initiatives on labour and environment standards in
compliance with the principles of the Global Compact. In accordance with this, it plays an
active role in community development, serving rural communities adjacent to its
manufacturing locations.
Tata Motors believes in technology for tomorrow. Our products stand testimony to this. Our
annual expenditure on R&D is approximately 2% of our turnover. We have also set up two inhouse Engineering Research Centres that house India's only Certified Crash Test Facility. We
ensure that our products are environmentally sound in a variety of ways. These include
reducing hazardous materials in vehicle components, developing extended life lubricants,
fluids and using ozone-friendly refrigerants. Tata Motors has been making conscious effort in
the implementation of several environmentally sensitive technologies in manufacturing
processes. The Company uses some of the world's most advanced equipment for emission
check and control.

143

Tata Motors concern is manifested by a dual approach

1. Reduction of environmental pollution and regular pollution control drives
2. Restoration of ecological balance.
Our endeavours towards environment protection are soil and water conservation programmes
and extensive tree plantation drives. Tata Motors is committed to restoring and preserving
environmental balance, by reducing waste and pollutants, conserving resources and recycling
materials.
Reducing Pollution:
Tata Motors has been at the
forefront of the Indian
automobile industry's antipollution
efforts
by
introducing cleaner engines.
It is the first Indian
Company
to
introduce
vehicles with Euro norms
well ahead of the mandated
dates. Tata Motors' joint
venture
with
Cummins
Engine Company, USA, in
1992, was a pioneering
effort to introduce emission
control technology for India.
Over the years, Tata Motors
has also made investments in
setting up of an advanced
emission-testing laboratory.

Restoring Ecological Balance:

Tata Motors has set up effluent treatment facilities in its
plants, to avoid release of polluted water into the
ecosystem. In Pune, the treated water is conserved in lakes
attracting various species of birds from around the world
thus turning the space into a green belt.
Tree plantation programmes involving villagers and Tata
Motors employees, have turned acres of barren village
green. Tata Motors has planted as many as 80,000 trees in
the works and the township and more than 2.4 million trees
have been planted in Jamshedpur region. Over half a
million trees have been planted in the Pune region. Tata
Motors has directed all its suppliers to package their
products in alternate material instead of wood.

With the intention of

protecting the environment,
Tata Motors has upgraded
the performance of its entire
range of four and six
cylinder engines to meet
international
emission
144

standards. This
has been accomplished with
the help of world-renowned
engine
consultants
like
Ricardo and AVL. These
engines are used in Tata
Motors vehicles in the Indian
market, as well as in over 70
export markets.
Tata Motors is constantly
working towards developing
alternative
fuel
engine
technologies.
It
has
manufactured CNG version
of buses and followed it up
with a CNG version of its
passenger car, the Indica.

Tata launches Nano advertisement

145

Tata Motors, which launched world's smallest car, Tata Nano could not successfully sell the
brand in big numbers, thanks to few teething issues like fire accidents reported in Mumbai
and Delhi. Though, the company fixed the issue, sales started plumetting like never before.
Obviously, the firm, refusing to go on back foot, after putting in lot of efforts to bring this
marvel car, has launched a fresh campaign on You Tube. The firm really worked on the
sentiments of typical middle-class Indians with an all important punch line: 'Key to your
happiness'.

The advertisement campaign is mindboggling as it begins with a girl inquiring her granny, as
to when the Nano would reach home. As the girl peeps through her binocular, seeing Nano
coming home, dances with joy. While the girl looks through her binocular, the vehicle's
acceleration and space are shown, while two-wheeler riders park their vehicles on the way
side and admires the car's pickup, flabergasted. What is more, the visuals show the rough and
bumpy road and how the car negotiates with much ease. Once the car arrives her home, it
brings in joy along with itself and the girl is shown rushing through the staircase and hugging
the car.

146

Furthermore, the family welcomes the car like a bahu enters home for the first time, showing
aarathi. Then the camera rolls to all balconies, where the neighbours casting evil eye on Nano, the
little girl takes Khajal from her yes and applies it on the car to ward off evil eyes. The message is
loud and clear that those who commute on three-wheelers and two-wheelers, can transform
themselves into a Nano with its four year warranty and amazing attributes. Very aesthetically
done campaign, Tata Motors, in all probability will impress the growing middleclass with this
advertisement. Good show Tata! Kudos. To enjoy this ad campaign, you might as well as.

Successful mantra of advertisement

Tata Motors is India's largest company in the commercial vehicle sector. The company is the
world's fourth largest truck manufacturer and second largest bus manufacturer in the world.
In India, Tata Motors is the leader in every commercial vehicle segment and it is the third
largest passenger car maker.
Tata Motors is able to produce more than 4 million different types of vehicles such as cars,
trucks, commercial vehicles, SUVs and many more since the company began in 1945.
The marketing strategy of Tata Motors is one of the most successful marketing strategies used
by a car maker in the car industry. The car company lays emphasis on the Product Branding
and Advertising. Advertising is the common way to make public aware of the new product.
Besides, advertising also help to create a brand image. Over the years, Tata Motors have been
successful in their own might in creating a brand image for itself.
147

Tata Motors also stresses on the packaging, innovations and quality control of a
product. Tata Motors is being able to provide many innovative features to lure customers.
E.g., the Tata Safari 4X4 Dicor with its "Reverse Guide System", where a weather-proof
camera is fixed to the rear end of the car to help the driver while reversing the car.
The pricing policy of Tata Motors is always appreciated by the public. The price of a car can
be determined by factors such as market condition, cost incurred to build a car, profit by
company and dealer profit. Tata Motors makes use of strategies such as discount and special
promotions every now and then. This attracts car lovers to opt for a Tata car. Tata Motors
gives discounts based the company's profit or from dealer's profit at a certain range.
Tata Motors has felt its presence across India and abroad with its showrooms. This is another
marketing strategy of Tata Motors that boosts sales of vehicles.
The car company has established many servicing centres as well which stands as a back bone
for the company to connect with the people. Tata Motors easy access to the general public has
made the brand grow in size and stature. Tata, due to its presence in the commercial as well
as the passenger vehicle segment, know the pulse of the people unlike many other car
makers.Tata which is a huge conglomerate has branched its business into various segments
like finance, banking, public sectors domains and other major fields apart from automobiles
which has made Tata a household name in India and abroad.

148

149

CHAPTER 7

Special efforts in marketing of Tata Nano car

Special adv campaign

Special discount and incentives to customers
Incentives to dealers
After Sales Service of Tata Nano Cars

150

Publicity takes form of Nano merchandise like T-shirts, key chains; firm takes online route,
gives television a miss. If the Nano is all about innovation, the advertising strategy isnt far
behind.

Group Chairman Ratan Tata told reporters today that the company was looking at
unconventional mediums like web search, viral marketing and innovative public relationsdriven campaigns, where the news in brief is called Nano news in some papers and
television advertisement breaks are called Nano breaks. There will be many more such
innovations.
Tata Nanos print campaign was unveiled today. Unlike most car launches, this one will not
be supported by a TV campaign. The company booked all web search engines to serve popup ads on Monday evening (at the time of the official launch) encouraging internet users to
book the car.
Other initiatives include online games, merchandise and accessories like Nano branded Tshirts, key chains, teddy bears and watches. We have launched Tata Nano-related
merchandise for people awaiting the car, said Ravi Kant, managing director, Tata Motors.
The car is expected to hit the roads by July. And going by the success of the accessories line
in Geneva, where Nano-related accessories were unveiled, it will be a big hit, said experts.
The unconventional advertising strategy has also resulted in huge savings for the company, as
the Nano has become a household name much before its launch. The company has already
got publicity worth over Rs 500 crore due to its public relations campaign, where it made
global news due to the fact that it is an Indian manufacturer building the worlds cheapest car.
And also for the wrong reasons, like the Singur controversy, said an advertising professional
who works on Chevrolet Sparks creative account and adds, Now, the most critical task for
the company is to deliver and sustain the hype that it has created.
The company will also save on account of not running a TV commercial. Typical car
launches have advertisement budgets of Rs 20-30 crore, with a large percentage of this
devoted to TV. For instance, the Mahindra Xylo had a budget of Rs 15-18 crore for the first
six weeks of the cars launch, said Joe Thaliath, chief operations officer, Interface
Communications, the creative agency for Mahindra Xylo. The size of the Tata Nano account
is estimated at no more than Rs 5 crore. Mahesh Chauhan, group chief executive officer,
Rediffusion Y&R, the creative agency for the Tata Nano says, We are certain that this
business will be a large account over time.
With the West Bengal Government issuing newspaper advertisements announcing a
rehabilitation package for Singur land losers, Tata Motors Limited expressed hope that the
Government's initiative would evoke a positive response.
"Tata Motors appreciates and supports the recent initiatives of the West Bengal Government
for Singur residents where it has acquired land for the small car project," Tata Motors said in
a statement.
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The statement said, "Tata Motors hopes these initiatives will evoke a positive
response from the residents of Singur and that all stakeholders will contribute to creating a
congenial environment for the long-term sustained operations of an industrial enterpise."
The West Bengal government today placed display advertisements in newspapers announcing
a rehabilitation package for those persons whose land had been acquired for setting up the
small car plant at Singur.
The company had earlier suspended work at the project on grounds that the atmosphere has
not been congenial for carrying out operations there.

Special adv campaign

Advertising is one of the most common ways to make car buyer or car enthusiast aware of the
new car with special promotion price. Another more important way of advertisings to create
an image or brand image. Take BMW Z3 for example, it was introduced in 1996 and shortly
the car has-been used in the famous James Bond movie. Over the years Tata Motors have
been successful in creating their brand image.
The packaging, innovations, and quality control. Tata Motors provide many innovative
features to attract car lover. One of these innovations is the
Tata safari Dicor that has Reverse Guide System. A weather-proof camera is fixed tothe
rear car to help the driver while reversing the car.
There are various factors to determine a price of a car. These factors are such as market
condition (it cant be too low or too high with the prices of same vehicle from competitors, it
has to be at par), cost incurred to build a car, profit by company, dealer profit. Giving
discount every month and special promotion for certain type of vehicle also one of the strong
strategy use by Tata Motors. Discount can be made from Companys profit or from dealers
profit ascertain range.
Place of dealership does play an important role. The channel of distribution, physical
location, and dealership method of distribution and sales is generally adopted. The
distribution of vehicle must be in a very systematic way, from the plant to dealership and to
end user. This is not only in India itself but also to the world-wide dealership.

152

Tata Nano over the last couple of years has registered in my mind as a car that created history
by being so inexpensive that everyone could realise their dreams of owning a car. The tagline
of "now you can" bolstered that hope of making ones dream real. A strong bond was
established.
But now when I look at this Tata Nano ad that appeared in today's newspaper, I feel that the
push of "now you can" is being given up for strength of the product. Is that bad? No No thats
not what I mean. I just feel that making consumers feel they can add miles to their mileage
would have been more appealing and in alignment with the "now you can" theme.
I had observed earlier that it will be INTERESTING TO SEE HOW TATA NANO WILL
BUILD UP ON THE NEWS MILEAGE the car has received. As of now I can only say that
I'm still confused on who the tata nano advertisements are targetted at. With incidents of
Nanos catching fire should they have taken an approach to do promote safety and appropriate
use of the vehicle.
Ad Campaign for Tata Nano

AD CAMPAIGN FOR NANO

An advertising campaign is a series of advertisement messages that share a
single idea and theme which make an integrated marketing communication (IMC).
Advertising campaigns appear in different media across a specific time frame. What is
Advertisement Campaign??
TARGET AUDIENCE TARGET AUDIENCE Middle Class Lower Middle Class
Buying media is a specialized skill, which requires knowledge of your target clients,
consumer behavior, the media, and the criteria used to measure the value of TV and radio
programming, for that we need to establish our own &quot;in-house advertising
agency&quot; to buy our media advertising. MEDIA BUYING
Electronic Radio MEDIA Print Outdoor Advertising
Exactly were you are targeting your ads for customers. Your sales representatives
should be able to identify the most efficient programs for your target audience
Advertisement Placement Ad placement will be on national level with national language

Budget

Outdoor Media

Total Expenditure on Outdoor advertising is Rs. 1,08,36,480/- Budget: Outdoor

Advertising (Billboard) Location Size (cm) Rate of 3 billboards for 2 months (Rs.) Billboard
in Cities. 400 x 500 36,11,880/- Billboard on Highways. 720 x 2400 54,20,040/- Billboard at
Airports. 400 x 500 18,04,560/Small Is Beautiful !!!
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Big On Protection, Small In Dimension, But Only The Mini Attracts
Attention. Tata Nano

Electronic Media
Budget : Television Aaj tak rates for full day window ticker for 3 months = Rs
9,00,000 Channels Timings (Slots) 1 day cost for airing the ads for 8 times. (30 seconds) (Rs.)
Total Cost for 3 months. (Rs.) Star Plus 7pm 11pm 20 lakh 18,00,00,000/- Zee TV 7pm
11pm 4.5 lakh 4,05,00,000/Radio
Budget : Radio (Radio One) Timings (Slots) Cost for airing a 10 second ad once.
(Rs.) Cost for airing the ads thrice. (Rs.) Total Cost for 2 months. (Rs.) 8am 10am 4000/12,000/- 7,20,000/- 10am 11am 3000/- 9000/- 5,40,000/- 18pm 22pm 3000/- 9000/5,40,000/Print Media

Budget :Newspaper 5,93,04,960 2 months 24,71,040 8,23,680 Full-Page

Newspapers Size (Color ad) Rates for 1 day (Rs.) Total Rates for 3 days in a week. (Rs.)
Duration Total Cost for 2 months. (Rs.) The Times Of India Full-Page 14,85,000 44,55,000
2 months 10,69,20,000 Hindustan Times Full-Page 12,87,000 38,61,000 2 months
9,26,64,000

Total Budget Radio advertisement = Rs 18,00,000 Television advertisements =Rs

22,14,00,000 Newspaper advertisements = Rs 25,88,88,960 Outdoor advertisements = Rs
1,08,36,480 TOTAL BUDGET OF AD CAMPAIGN = Rs 49,29,25,440

Tata Motors announces discount offers on Indica,Indigo XL Sumo Grande and

Safari
The Tata Nano effect has rubbed on different sectors in strange ways. Corporate sector HR's
are now contemplating on offering Nano as an incentive to its employees.
Given that the attrition rate is high and companies want to retain junior level executives is
now thinking of offering the Rs one lakh car as an incentive.
The HR executives are sure that the Nano will certainly make a great offer for junior level
executives. However, they are yet to decide on the employee groups that can be brought
under the
incentive
scheme.
They said that sales representatives will come first in the list of targeted employees. The other
groups that could be included are the skilled workers in manufacturing sectors, middle level
managements,
and
the
junior
software
engineers.
The attractive price band has driven the HR department to look at Nano has an attractive
154

proposition for its employees. At Rs 1.45 lakh, the ultra low cost car could
replace several other more costly incentives like the foreign tours, LCD TV, high-end laptops
and
others.
Nano is not only cost effective, but it is a small car that can carry five persons, is fuel
efficient and maintenance cost is low. It is a marked improvement from the motorbike that the
junior
level
executives
purchase
soon
after
gaining
employment.
Many of the companies are also thinking of scrapping away the two wheeler loan schemes
with that of Nano. Those sectors which have a high employment of on field- like the pharma
can also offer Nano at a more competitive price than the currently offered two wheeler loans.
Companies could even attract employment by offering these cars as employee benefits.
The Human Resource executives believe that the small car Nano will provide more safety to
its employees than the two wheeler. People who drive to office and back to their residences
can travel without carrying the risk attached to two wheeler riders.
Moreover Indian companies having overseas operation could also offer the Indian small car
to its foreign employees. Instead of shelling three of four times the cost of Nano on European
or Japanese car brands, the Indian companies could offer the small car.
This will not only cuts the cost of perks by its employees but also help swell the company
exchequer.
However these measures will not be available until the Nano cars are available abundantly in
the showrooms. Tata Motors has been pleasantly surprised by the new scheme. It may be
recalled that similar schemes were offered when then Maruti Udyog launched 800. However,
then the targeted employees section were the top management executives. They usually
rivaled it against the stately ambassadors and Fiat Premier or Fiat Padmini. Owning a Maruti
800
was
considered
a
status
symbol
among
executives.
The Nano car has created a new class for car owners and 800 may not be sufficient to retain
executives anymore.
It raining offers! now its Tata Motors to exhibit the generosity to lure the customers. Buy any
Tata product (except the newly launched Indica Vista and best seller Indigo CS) and avail
cash benefits of upto Rs66,000. You will also get a scratch card and if your lucky you could
win a sumo grande,10 Indica Xeta LPG, Blackberry 8830 and a range of exciting products
from Tata Indicom. Here are details of discount offers on specific models
* All the variants of previous generation Indica NA (DL,DLE and DLS). comes with a
discount of Rs30000
* Rs 30000 discount on all varaints of Indica turbo and Indica DICOR
* Indica Xeta (excluding the LPG variant) gets a cash dicount of Rs30000
* Tata Motors offers Rs40000 discount on Indica Xeta LPG

155

* Indigo Marina and Indigo XL is offered Rs40000 discount

* Sumo,Sumo Victa and Spacio is given Rs40000 discount
* Rs60000 cash discount, 1 year free extended warranty worth Rs6000 and a matt kit on all
variants of Sumo Grande
* 2007 introduced Safari DICOR comes with a Rs25000 cash discount offer
* You can avail a loyalty bonus of Rs5000 on Indigo CS LS variant. But there is no discount
on Indigo CS LX variant.

Tata Motors is really wants its small wonder Nano to do well. The company is concerned
since its sales dropped drastically in the month of November 2010. So Tata Motors came with
different offers for Nano like 4 year warranty on brand new car, loan passed in 48 hours and
more recently zero down payment from Tata Motors finance. Now the company is targeting
its large employee base to increase the sales of Nano. Tata Motors is offering a special
finance scheme to purchase the small car for people earning a monthly salary of Rs 12,500
and above.

As per the scheme Tata Motors employees can secure a four-year loan, carrying an interest
rate of 2% per annum as against the 14% interest charged from other customers for a 100%
loan scheme. The offer, which is valid till the New Year, comes without processing charges.

156

An internal circular sent to the employees early this week said blood relatives
are also permitted under the scheme as long as the monthly instalment can be debited from
the salary accounts. Tata Motors has a total of 24,000 employees.

Schemes of tata motors

TMF offers finance schemes for tenures ranging from 1 year to 4 years in multiples of 6
months. The schemes are:
Standard Equated Monthly Installment (EMI) Scheme
This is TMF's most popular scheme. Under this scheme, the value of the contract (which
comprises of Finance Amount + Finance Charges which is applicable for the scheme) is
divided by the tenure of the contract (in months) to arrive at an Equated Monthly
Installment (EMI), which is then to be repaid on a monthly basis by the customer.
For further details on vehicle finance or financing options, please contact your nearest
Tata Motors office, the dealer or write to us at: ( svv@tatamotors.com )
Staggered Scheme
This scheme offers customers the flexibility to plan the repayment schedule based on
their Annual Cash Flow.
For further details on vehicle finance or financing options, please contact your nearest
Tata Motors office, the dealer or write to us at: ( svv@tatamotors.com )
Advance EMI Scheme
This scheme is an extension of the basic EMI scheme where installment(s) is/are paid in
advance. Under this scheme the customer would have to pay a lower rate of interest.
For further details on vehicle finance or financing options, please contact your nearest Tata
Motors office, the dealer or write to us at: ( svv@tatamotors.com )
Customised Schemes
In this scheme, the customer is assisted in making a choice between one or more of the
schemes mentioned above, thereby customising repayment to suit individual requirements.

157

For further details on vehicle finance or financing options, please contact your
nearest Tata Motors office, the dealer or write to us at: ( svv@tatamotors.com
Tata Motors offers special scheme on Tata Nano for defence personnel
Tata Motors today formally announced a special scheme on Tata Nano for all defence
personnel. As part of the scheme, Tata Motors is offering free comprehensive maintenance
package for 4 years/ 60,000 km (whichever is earlier). This offer is over and above the
prevalent market offer. This comprehensive package covers normal wear and tear of the car
(except, tyres and batteries), thus, providing complete freedom from all maintenance worries.
This
offer
is
valid
till
28th
February
2011.
Tata Nano is available through CSD for Officers and PBOR's (Personnel below officer rank).
About
the
Tata
Nano
The Tata Nano offers an incredibly spacious passenger compartment which can comfortably seat four
adults. With a length of just 3.1 metres, width of 1.5 metres and height of 1.6 metres, the Tata Nano
has the smallest exterior footprint for a car in India but is 21% more spacious than the smallest car
available today. A high seating position makes ingress and egress easy. Its small size coupled with a
turning radius of just 4 metres, makes it extremely manoeuvrable in the smallest of parking slots.
The

three

trim

levels

and

their

key

features

are:

Tata Nano Standard: The standard version, in three colour options, single-tone seats, and fold-down
rear
seat;
Tata Nano CX: In five colour options, with heating and air-conditioning (HVAC), two-tone seats,
parcel
shelf,
booster-assisted
brakes,
fold-down
rear
seat
with
nap
rest;
Tata Nano LX: With the features of CX plus complete fabric seats, central locking, front power
windows, body coloured exteriors in three premium colours, fog lamps, electronic trip meter, cup
holder in front console, mobile charger point, and rear spoiler. Many of these features are not
available
on
current
entry-level
small
cars
in
the
country.

Tata Motors offers special scheme on Tata Nano for defence personnel
Mumbai: Tata Motors, today, formally announced a special scheme on the Tata Nano for
all defence personnel. As part of the scheme, Tata Motors is offering free comprehensive
maintenance package for four years / 60,000km (whichever is earlier). This offer is over
and above the prevalent market offer. This comprehensive package covers normal wear
and tear of the car (except tyres and batteries), thus, providing complete freedom from all
maintenance worries. This offer is valid till February 28, 2011.
The Tata Nano is available through CSD for officers and personnel below officer rank.

The Tata Nano offers an incredibly spacious passenger compartment which can comfortably seat four a
158

With a length of just 3.1 metres, width of 1.5 metres and height of 1.6 metres, the Tata Nano h
smallest exterior footprint for a car in India but is 21 per cent more spacious than the smallest car ava
today. A high seating position makes ingress and egress easy. Its small size coupled with a turning radius
four metres, makes it extremely manoeuvrable in the smallest of parking slots.
The three trim levels and their key features are:
Tata Nano Standard: The standard version, in three colour options, single-tone seats,
and fold-down rear seat.
Tata Nano CX: In five colour options, with heating and air conditioning (HVAC), twotone seats, parcel shelf, booster-assisted brakes, fold-down rear seat with nap rest.
Tata Nano LX: With the features of CX plus complete fabric seats, central locking,
front power windows, body-coloured exteriors in three premium colours, fog lamps,
electronic trip meter, cup holder in front console, mobile charger point, and rear spoiler.
Many of these features are not available on current entry-level small cars in the country.
Performance and specifications
Performance: The two-cylinder, 624-cc engine delivering 35PS at the rate of
5,250rpm and a torque of 48Nm at the rate of 3000rpm enables the car to have a top
speed of 105kmph and negotiate inclines with a gradeability of 30 per cent.
Fuel efficiency: 23.6 km/litre, certified by the Automotive Research Association of India
(ARAI) under mandated test conditions, which is the highest for any petrol car in India.
Emission: The high fuel efficiency, with a low kerb weight of 600kg, ensures that the
Tata Nano at 101gm/km has the lowest CO2 emission among cars in India.
Safety: The Tata Nanos safety performance exceeds current regulatory requirements
it passes the roll-over test and offset impact, which are not regulated in India. It has an all
sheet-metal body, reinforced passenger compartment, crumple zones, intrusion-resistant
doors, besides mandatory seat belts and complies fully with existing Indian safety
standards. Tubeless tyres among which the rear ones are wider, endowing extra
stability enhance safety.
Warranty: Four years / 60,000km, whichever is earlier.
To book a Tata Nano, defence personnel can sms NANOCSD to 5616161 or call on
18002097979.

SALES SERVICE OF TATA NANO CARS

With the basic objective of increasing customer satisfaction and loyalty, the Customer Service
is always at work to exceed the customer expectations. The department works as strong link
between the company and the customer.

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The department continuously meets the end customers to ascertain the evolving
needs and capture feedback for enhancing the product quality. The meetings are in the form
of visits, technical seminars, dealer/TASS conferences etc. With a vast and strong network of
Dealers and Tata Authorised Service Stations (TASS) across the country, the department is
fully equipped to handle all the service needs of a Tata Commercial Vehicle customer.
t is our constant endeavor to minimize downtime,
reduce repeat failures, decrease the cost of service and
to address the concerns of the customer, we are
providing a variety of offerings in form of certified
garages Suvidha, Mobile Van Service, Workshops of
Dealers & TASSs in all nook & corner of the country,
continuous training and honing of skills of authorised
workshops, and many more.
We also have a Customer Assistance Center which is a
24x7 operations with a toll free no - 1800 209 7979. It
gives assistance on any Sales/Service/Product issues
and Spares parts availability to all our customers in
India.
In the international markets, we have a strong local presence in focus markets. A TATA team
is resident in these markets to oversee & resolve all customer issues. A network of dealers
spread across these countries ensure our presence today in about 40 markets world wide.
Tata Motors has now come up with Tata Motors Service Edge, a widespread & extensive
customer service enterprise. The company's service network covers 800 service centres
located in 500 cities and towns of the country. 'Response in minutes, resolve in hours';
'Service with unmatched reliability' and 'Assured value for money' are the three core
characteristics
of
this
initiative.
Speaking about the this novel concept, Mr.Anupam Misra, President, Concorde Motors (I)
Ltd said, "The Service Edge initiative is a great stride in our path to increase our reach &
support to our valued customers. At Concorde, we believe in customer focus. We will
continually strive to delight our customers across locations through the Tata Motors Service
Edge program.
Response in minutes, resolve in hours:
Tata Motors Service Edge will bring speedy assistance to customers when in need.
24X7 On-road assistance programme: In association with MyTVS, Tata Motors has launched
a breakdown assistance programme and towing assistance across the country accessed
through a toll free helpline (1800 209 7979) and serviced by a dedicated network of over
2,000 authorized service providers. Quick response is ensured within 60 minutes in city
limits, 90 minutes on state or national highways and within 120 minutes on hilly roads and
160

other

places.

Rapid repair: Rapid repair is a cost effective, quick and specialized body repair programme
offered across the Tata Motors dealership network. Small dents, scratches and such body jobs
are attended with an assurance of the car delivered on the same day.
e-Service appointments: Through an online service appointment facility, customers can select
a time slot, date and a dealer of their choice for servicing their vehicle. Customers can also
list down on-line job orders based on the repairs required. Post the on-line registration, the
respective dealership customer relations officer responds instantly and confirms the
appointment.
Speed-O-Service: Speed-O-service has been designed to offer quick repair service within 60
to 120 minutes using specialized manpower and infrastructure. Tata Motors can repair 6
vehicles per bay per day through this process, ensuring faster response and increasing service
efficiency.
Service with unmatched reliability:
The company is ensuring that problem diagnosis and the related solution is comprehensive.
Symptom based diagnostics: A state-of-the-art diagnostic system ensures quick and
comprehensive check of the vehicle. At each dealership a technician has been intensively
trained as Diagnostic Expert Technician (DET). They attend to challenging repair
requirements on the basis of symptoms indicated by the customers.
Flying doctors: A pool of 10 on-call technical experts has been set up across the country for
higher level diagnostics to address any issues where dealers & DETs need support.
Quality repairs: Under this programme each vehicle is subjected to standard quality checks to
identify repair requirements not noticed or reported by the customer, ensuring that complete
health of the vehicle is assessed, attended to and customers are apprised. Over 15,000
technicians are trained annually to provide quality service through 8 training centres across
the country. The company plans to build a world class training centre in Sanand.

Assured value for money:

Assuring value for money has consistently been a core attribute of Tata Motors' products and
services. Tata Motors Service Edge further strengthens it. The company has standardised and
regulated service & repair charges which are reasonable across the network.
Value care: The company offers customised maintenance plan for service, minor and major
repairs including wear & tear with flexible payment options. The Value care plan covers
labour, parts, consumables, and guarantees substantial savings through price protection
against inflation and ensures appropriate resale value for the vehicle at the time of exchange.
Thus, customers accrue huge savings on cost of maintenance over a period of time.

161

Tata Motors' Original Parts (TOP): Tata Motors is the only manufacturer in the
industry to provide 1 year warranty on its genuine spare parts, which are trademarked as
'TOP'. Available across all Tata Motors dealerships, the spare parts are competitively priced
and customers can avail of the warranty if the parts are fixed in a Tata Motors authorised
service workshop. Tata Motors has also designed various cost effective repair kits which
further
add
value
to
customers.
Tata Motors Insurance: The insurance scheme offers convenience of on-line policy issuance
& near cashless repairs facility across the Tata Motors authorised network. The industry-best
depreciations on composite parts under Tata Motors Insurance provide substantial savings.
The company plans to launch a zero depreciation cover policy in the future.
Extended Warranty: A protection against unforeseen breakdowns, the programme extends
warranty benefits for up to 4 years or 150,000 kms, applicable to all Tata passenger vehicles.
The 'Nano Secure Extended Warranty' allows Tata Nano customers to choose from an
extended warranty of 12 months/40,000 kms or 24 months/ 60,000 kms.
Gold Club: It is a privileged 2-year membership programme offering priority services and
attractive discounts. A customer can become a member of the Gold Club for only Rs. 499/-.

As a measure to further strengthen the customer care in the state, Tata Motors plans to add 20
more Tata Auto Service Centres (TACSs) in Orissa during the current fiscal.
These centres will come up in three formats namely service centre, service point and service
station which will strengthen the after sales service facility offered by the company.

With the opening of these additional TACS, the total number of such centres in the state will
increase to 25.Tata Motors has 5 TACS in the state in places like Rourkela, Keonjhar,
Balasore, Cuttack and Jharsuguda.
We have 5 TACs in the state at present and will be adding 20 more such centres during the
current fiscal, Rajesh Sarangi, territory manager (CSM), Tata Motors, Orissa said.
Talking to the media on the sidelines of the arrival of the much awaited Nano at the city
based Swapna Motors here, Sarangi said, the company is in the process of adding two more
dealerships at Cuttack and Angul in the next couple of months.
This will take the total number of dealership of the company in the state to 5 from 3 at
present, he added.
Acknowledging that the sales of the company both in the car and the utility vehicles segment
were marginally impacted during the October-December quarter due to the economic
slowdown, he said, the sales have increased at a faster rate between December 2008 and

162

March 2009.The company sold about 3000 utility vehicles and 5000 cars in the
state last fiscal.
On the new sensation Nano, B N Saha, managing director, Swapna Motors said, the
booking for the car will start from 9th April to 25th April.
The financiers will be present at Swapna Motors and car will be given to the customers to be
decided through a lottery. The delivery will start from 1 July 2009. While the company will
pay 8.5 percent interest on the booking money if the customer does not get the car in a year, a
penalty of Rs 300 will be collected from the customers who cancel the booking. The
showroom expects to sell about 350 to 400 cars per months across the models during the
current fiscal.
Car purchase is a long term investment. The major point of concern after car purchase is its
proper maintenance and care.Appropriate maintenance and care of the car can save your
thousands of bucks thereby, making your vehicle more durable and long lasting. Regular
check of every car is one of the important factors to maintain your dream machine which
most of the car buyers neglect and later on it turns out to be a huge investment. Tata Nano is
the cheapest and smallest car available in India. Proper maintenance of Tata Nano is much
required for its long lasting. Here are some tips which will surely help you to maintain Tata
Nano :-

1.Tata Nano is blessed with very cute and sporty design and if you want that the cars color
does not fade, use wax coating on your car before the rainy season because the dry and
alternate spells can fade the paint.

2.Regular Service check is very necessary to maintain your cars performance. It also alarms
you if your car persists with any critical problem.

3.Tata Nanos engine is very smooth and silent, the engine oil of the car needs to be changed
at frequent intervals so that the old and useless oil can be removed from the oil cabinet and
the smoothness of the engine is maintained.

4.It is most often seen that people use clutch of the car in excess while accelerating or if the
vehicle is standing on a traffic signal, this hampers the clutch plate of the car, so avoid usage
of clutch in excess.

5.Tata Nano does not comes equipped with features like ABS (Anti-lock Braking System)
and EBD (Electronic Brake-force Transfer), therefore it is very much needed that we keep a
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regular check of braking of Tata Nano so that efficient braking can help us in
case of critical circumstances.

6. Tata Nano maintenance is very much in relation to its tyre pressure. It is very much
needed to get the tyre pressure checked atleast once in a fortnight. The volume of tyre
pressure in Tata Nano matters a lot, if the tyre pressure of the car is high it can lead you to
unbalanced driving and lots of tweaks, as the suspension of Tata Nano are not the hydraulic
suspensions. On the other hand, if the tyre pressure of the car is low it can affect the wheel
axle thereby incurring more maintenance cost of the car.

7.Tata Nano is the most fuel efficient car which normally offers mileage of 22 kmpl in city
conditions. You need to keep a frequent log of mileage you get from the car. If you think that
the car mileage is very low you need to get the service check.

8.Do not race with your car as it is not a smart idea for a car like Tata Nano as the engine
capacity of Tata Nano is 624 cc. Accelerating excessively for attaining high speeds builds
pressure on your vehicle ?s engine which can in turn be damageable and cautious incurring
high maintenance cost of the car.

164

CHAPTER 08

COMPARISION WITH OTHER LOW COST CAR

165

A comparison between Maruti 800 and Tata Nano

COST
Maruti 800: Rs 1.97 lakh (ex-showroom Delhi) = 2.25 lakh (on road)
Tata Nano: 1.26 lakh (on road)
Engine
ENGINE
Maruti800: 800 cc
Tata Nano: 623 cc (Better fuel efficiency than maruti 800)
Top Speed
TOP SPEED
Maruti800: 120 km/h (75 mp)
Tata Nano: 90 Km/h
Dimensions
DIMENSIONS
Maruti 800
length of 3.335 metres
width of 1.440 metres
height of 1.405 metres
Tata nano
length of 3.1 metres
width of 1.5 metres
height of 1.6 metres

166

A Comparision between Tata Indica vs Chevrolet Beat

The Chevrolet Beat is an economical car, but can it stand the economy of the Tatas. Tata car
showever loud they are or however bad they look, they conquer the bottom line of an
argument and this is what matters. The Vista is an old concept which is being retuned over a
period of time. The new Indica has a lot to offer to the Indian customer. From improved
handling to superb killer looks the Indica is geared up for new attacks.
The Chevrolet Beat on the other hand is superb and won over different cars which are top
notch. The Beat has the capacity to take over other cars in different segments. It does not
target the weak but scratches on the important points.

Chevrolet Beat

Tata Indica Vista

Engine Type

In-Line Engine

In-Line Engine

Engine Description

1.2L 80bhp S-TEC II engine

New 1.2L, MPFI, and Safire Petrol engine

Engine Displacement (cc)

1199

1172

No. of Cylinders

Maximum Power

80 @ 6200 rpm

65 PS @ 5500 rpm

Maximum Torque

108 @ 4400 rpm

96 Nm @ 3000 rpm

167

Valves per Cylinder

Valve Configuration

DOHC

NA

Fuel Supply System

MPFI

MPFi

Turbo Charger

No

No

Super Charger

No

Yes

Transmission Type

Manual

Manual

Gear box

5 Speed

5 speed

Transmission

Suspension System

Front Suspension

McPherson

Strut-Type

with Anti-Roll Bar

Independent;

lower

wish

bone;

McPherson Strut with Coil Spring

Semi-Independent;

Rear Suspension

Compound Link Type

Shock Absorbers Type

Gas Filled

NA

Steering Type

Power

Power

Steering Column

Tilt

NA

Front Brake Type

Disc

Ventilated Disc

Rear Brake Type

Drum

Drum

Mileage-City (kmpl)

14.5

12.1

Mileage-Highway (kmpl)

18.6

15.8

beam

coil spring and shock absorber

Steering

Brake System

Fuel

168

twist

with

Fuel Type

Petrol

Petrol

Fuel Tank Capacity (liters)

50

37

Tire Size

155/70 R14

175 / 70 R13 (tubeless)

Tire Type

Tubeless Radial Tire

Tubeless Radial

Wheel Size

14 inches

13 Inch

Seating Capacity

No of Doors

Country of Assembly

India

India

Country of Manufacture

India

India

Warranty Time

3 years

NA

Warranty Distance

100000 km

NA

Mumbai

Rs3, 80, 094

Rs4, 06, 969

Delhi

Rs3, 62,353

Rs3, 99, 937

Tires

Other Specifications

General Car Details

Price ex-showroom

Interiors and looks

The interiors of the Beat and vista are bit similar. They match according to space and
interiors. The cabin of Vista is quite spacious which can accommodate 5 adults with their
luggage. Lots of features are added in the Vista which makes it attractive. The standard
variant of Beat does not have much features like the Vista. The dials are not that great in the
Vista as they are revamped ones of Indica.Handling and feel
The Beat is much bigger than the Vista. Handling the Beat is bit easy since it has tuned
handling systems. The Vista has a smooth handling which is quite surprising. The reason its
surprising is because Indica is famous for bad steering.
Engine feel

169

The engine of Beat is quite responsive and so is the Vista. Only point which lacks in the Beat
is power. Vista is quite powerful when it comes to power shifting. Beat feels bit
uncomfortable while taking turns. The car does not handle like the way it should on turns.
The Indica turns out to be superb when it comes to handling on turns.

CHAPTER 9

Customer opinion
Dealers/sales executives opinion

170

TATA Motors peoples were not interested to solve the problems and not able to
resolve the problems, we request to send an Engineer from TATA Motors (Selling
Dealer code: 91698, purchase date: 16-06-2011, Date of delivery : 16-06-2011,
Chassis No. MAT 614064 BRF 00953, Engine No. 2.2L QICOR 09 EYYJ10580,
Model: TATA - Aria- Pride 4 x 4, Reg. No. TN 45 AT 1771). But, still date there is
no response from TATA Motors. As we already explained our mail dated 24th May
2012, the complaint attend by the VST Service station, Trichy was not useful and
they could not able to repair the car, with in 5000 Kms again the clutch system has
failure and they cant able to solve other complaints. For our, 24th dated mail
there is no response from their side and VST Service station. As such, on 8th June
2012 at 28,000 kms, we have sent the car to VST Service Station, Trichy for the
same repeated complaints.
They have simply keep the car 8th, 9th, 10th and on 11th June 2012, they have
found the clutch system failure and informed us Clutch plate has to be changed.
This was informed by us over phone call, it was understood the Service engineer
may be visit to VST Service station, Trichy on 19th June 2012. And then we have
to wait for another 9 days for engineer visit? Again and again, we like to inform
that, The quality of materials, performance of the Car and service are very poor.
The car is failure model. The clutch system is not with stand even on road
condition for 10000kms. But, we have purchased 4 wheel drive car at high cost.
We dont know what usage of the 4 wheel driving system is and how to use the 4
wheel driving in sandy soil with this failure clutch system. With in 28,000, we
need to change the clutch plate 3 times.
The Navigation is not working properly. You could not able to rectify it for more
than 9 months. Beeping this car, you cant identify the fault in the wiring system
and not rectified. The rear door fixed by the VST body shop is not good quality
and not fitted in correct position, heavy dust flow from the door. The wiper water
171

spray is not working satisfactorily. The Lifting Jack supplied by the TATA motors
is not satisfactorily. We have suffered 2 times on road and it was replaced by the
VST Service Station. (Because of, it was not working). The Phone- Blue tooth
system not working properly. Heavy wobbling, the tyre fully damaged with in
25,000 Kms, there is no needful action from their side. The reverse light is not use
full we cant use the light at night time for taking reverse the car. For our
complaints, there is no action taken by the TATA Motors. because of the non
performance of the car and poor quality of materials and poor quality of service by
TATA Motors and VST Service Station, Trichy.
Even though, the car is in the warranty period, we are facing so many problems
( lacking of service, no spare parts availably, all are major repairs, high cost of
spares, long duration for each and every service (minimum 5 days), as such we
dont have a hope TATA motors will take care beyond the warranty period. As
such, we cant bear with TATA Motors for long time for the repeated complaints.
Already we have approach the VST Service station, for more than 20 times within
28,000 Kms.
The TATA Motors cheated us, by collecting very huge amount of Rs. 18, 50,000/for this car. Please take necessary action to find the permanent remedy
immediately, and we need TATA motors Confirmation on these complaints to do
not occur in future. Please take back the car and repay the money or replace a new
car at your earliest. I bought a Tata Indica Vista Aura Quadrajet ABS (invoice
number- RagEP-R-1112-00591) from Raghuvanshi Motors, Dilshad Garden on
4th of September, 2011. This car has been giving trouble since the first day of
purchase. The car started showing problem in the Engine (engine no. 100A20000160296, chassis no MAT611460BPF52051 I took the car to the service centre
and they kept the car for 2 days. The problem of the car as stated by the service
center: Glow Plug controller changed, Glow Plug Timer Changed, Fuel Injection
Pump Timing changed. On 2nd week the car again started to show issue with the
Engine.
The timer too changed. Right from the day 1 of purchase I have been complaining
about the mileage, numerous mileage tests have been taken and it confirms our

172

problem, however, calls made to the company (Tata Motors Regional Office) as
well as to the dealer is going down the drain without any proper feedback. The
mileage as of now is coming out to be 8.0 kmpl. The refund cheque for the car is
also due till now.
The marketing manager and the service head have stopped picking the phone at
Raghuvanshi Motors. I want them to replace the product with similar or superior
one or I want them to refund my money I have purchased Tata Indica eV2 on 0108-2011,

delivered

on

03-08-2011

at

19:00

hrs

(chassis

number

mat600459bpg57150, engine number -1.4crgil08gyyw22928, receipt number- 792

from tafi access limited). I run just 100 kms. Even Registration not done, within
one week time, this sad accident happened. On 09-08-2011, due to heavy rain and
wind, a big tree uprooted and fell on the car shed where I parked the car. The car
severely damaged.
I informed to the Tata motors and Insurance ((Tata insurance affiliated national
insurance) immediately. They came within one hour. Spot photos taken. The next
day taken to the Tata motors workshop by the Tata motors company persons. Tata
motors workshop taken to repair approximately four months. Till date insurance
people are processing. It is been so long they havent delivered the car back to us.
Since it is been 4 months I want them to speed up the work and deliver the car to
me immediately. I purchased Tata Indigo CS GLX (Petrol) on 16th Oct., 2009,
Financed through HDFC Bank for 4 years. I am paying EMI of Rs. 8954/-,
problem arises from 1STyear itself. Details of the vehicle are TATA INDIGOCS
GLX LTD. VERSION (PETROL) 2009 MODEL, DATE OF PURCHASE :
16TH OCT., 2009, DEALER : A-ONE MOTORS ( ELEGANT MOTORS,
PAPADGANJ, NEW DELHI), CHASIS NO : MAT6016539WH32399, ENGINE
NO.: 475SI56HQZP83687, Accessories : Music System with two front speakers,
took kit, wheel wrench etc, Finance : HDFC BANK FOR 4 YEARS 12% P.A.
(LOAN AMOUNT 3.40 LAKHS). The problems I faced are within short span of
one year alternator had to be changed, originally fitted/provided Exide battery has
worn out and had to be changed. In the second year Front window (steering side)
part had to be changed. Air circulator makes noise once it was switched off.
Exhaust/ radiator keep running for about 20-30 minutes even after closure of the
173

vehicle (keys removed). Check engine keeps glowing. Originally bought stereo
gives current leakage problem. Within short period of two years I had to call up at
least 30-40 times on road service to start my vehicle and visit the workshop. On
trying to get an exchange offer of December, 2011, I was shocked with the
evaluation price of my vehicle done by TATA authorized workshop as Rs. 70,000/only.
If TATA can itself quote only Rs. 70000/- for its vehicle whose original cost is Rs.
4.5 lakhs, whose installments still are being paid. My humble request is kindly
refund my money as early as possible as I cannot take any more burden and
harassment of talking to workshop people explaining my problems again and
again with no proper solution. I personally feel I am being harassed by TATA
being a lady owner with minimum knowledge of vehicle parts, but have been
driving the vehicles (Maruti, Hyundai) for almost 7 years now (including TATA
for last 2 years) I booked TATA Nano Car in the month of May 2009 through State
Bank of India, Phaphadih Branch, Raipur (C.G) (ID No. 113554024). My vehicle
registration number is CG 04 HC 0312. My name was in the returns list in June
2009 booking result. By sticking to the returns list, I converted it to Car Loan
through SBI, Phaphadih Branch, Raipur (CG). The car loan A/c No. is
30918777062 and on 4th August 2010. I got the car from National Garage, Raipur,
CG.
I took this opportunity to remind you that TATA Motors has announced that it will
pay all customers covered under returns list 8.5% interest for the booking amount
of Rs. 1,20,000/- from booking date to car delivery date. The same is also
mentioned in the letter issued by TATA Motors. TATA Motors has sent Cheque
No. 653188 for Rs. 2,431/- (Rs. Two thousand four hundred and thirty one only)
for the period from 23rd June 2009 to 18th September 2009 which I encashed.
But, actually, I was supposed to get the interest from 23rd June 2009 (date of
returns list) to 4th August 2010 (delivery date). In this regard, I contacted the
customer care service several times. Every time I was assured for the difference of
payment and was asked to wait for one more week. Then I started sending mails
and letters in this regard but in vain till date. I, therefore, once again request you
to look into the matter and arrange payment of interest 8.5% for the period from
174

19th August 2009 to 4th 2010 (which works out approx. Rs. 9,780/-). I purchased
a Tata Nano from the dealer ARASPV, Madurai. The vehicle registration number
is TN63 Q 4786. The invoice number is 1011-00607. The transaction number
printed in the invoice is n.p.manickam110222327- 3006950. From the date of
purchase I am facing problems with the vehicle. The car frequently breaks down.
The dealer is located 90 kilometers away from my place.
Whenever I plan an outing with my family, the car doesnt start. I have to make
50 phone calls to the dealer at Madurai or Karpagamoorthy Service Centre at
Karaikudi. They say the mechanic has to come from Madurai. I am completely
frustrated with the vehicle. It does not serve the purpose at all. Recently, my car
was kept idle at the service center, Karaikudi for nearly a month on grounds that
new battery has to be supplied by the dealer at Madurai. Apparently the new
battery was changed at a cost of Rs. 5200/-. The car ran smoothly for few days
and again had a break down. I am not able to use it for the past 10 days. The
dealer is not responding even after continuous phone calls. I want Tata to respond
immediately and refund the money, since I do not want to continue this mental
agony. this car is a real crap. the millege is ok but th ride quality is very poor. the
finish is also bad. tata is the worst car manufacture in india. though the indica
vista with fiats multi jet engine is a good car. the marina is not a good car to buy.
the best option would a swift desire or swift itself.
I purchased a new Tata Indica Xeta Car in August 2006, which started giving
consistent problems from the beginning. The problems were so frequent that I
have to send the car to TATAs authorized workshop for around 20 times in the
first 18 months that were covered under the warranty. Each time car was kept for 2
to 6 days and repairs were done including changing of parts. Subsequently, the
condition became more severe and workshop also started billing heavy amount to
me after the warranty period. Under the compelling situation I filed a Complaint
(No. 112/2009) with the Consumer Forum, Noida. The District Consumer Dispute
Redresser Forum G B Nagar (Noida) passed a detailed order on 21 March 2011
against TATA Motors to take back the defective Tata Indica Xeta Car (UP16M7808) and return the full cost with some penalty to the customer. However, TATA
Motors instead of executing the order has filed an appeal at State Consumer Court,
175

Lucknow and managed a stay against the judgment of District Consumer Court
with next date of hearing after seven months. Thus TATA Motors has been able to
further delay the resolution for another three years. This has become a case of
acute harassment making my life miserable by TATA Motors, first by selling a
sub-standard defective car to me then using the financial missile to delay the
resolution of my grievance. The car is a big liability on me as after every 500 kms
it needs some repair, consuming on my time and money.
Please help or suggest some way out to get rid-off my mental and physical torture
on account of said car. I want the company to immediately return the full cost of
the vehicle along with the compensation I had purchased Tata Indigo Manza on
4th Dec-09 from Sai Motors Kanpur. Vehicle registration number is UP 35 N
8853. My car met with an accident on Jul-10. All the repair work was done by
Tata authorized dealer M/s Society motors Kanpur. After repair I had found the
trouble in pickup and I had again registered my complaint. Again repair done but
problem remain the same (Also called Tata On road service).I am working in
Faridabad, Haryana so that it was necessary for me to come and join the company
in Faridabad. So that I had taken my car and came back to Faridabad. On my third
service I had registered same complain in Triumph Auto(Authorized dealer in
Faridabad) after service, problem was same.
Again I had registered the complaint, that time the service advisor suggested me
to done the 4th service, as per him the problem will resolve after 4th service. My
4th service was not due, but I agreed over the service and I had paid 11000 rupees,
but problem remain same. When I went to take my car that time the manager says
that the Turbo is faulty and need to replace. I said ok, car is under warranty please
replace. He said no, Turbo Have dent mark so that warranty laps and it will cannot
be replaced in warranty. I had registered with Tata motors Customer care, but my
problem is as it was. Tata Consumer Complaint numbers are.1-13068034379 and
1-13288377518. I want them to repair the defect free of cost. I have purchased a
Tata Indigo XL Dicor Classic in January, 2008 from SRMT in Visakhapatnam. My
car registration no is AP31 AW 0060. Right from the beginning my car has been
having repeated problems with the injectors. A brief history of the problem. 1.
7/11/08 injectors leak and injectors have been changed. 2. 27/12/08 injectors leak
176

and washers have been changed 3 .4/6/09 injectors leak and entire head has been
replaced. 4. 13/8/09 injectors leak and washers have been changed. 5. 24/7/10
injectors leak and washers have been changed. 6. 24/9/10 injectors leak and
injector and washers have been replaced. 7. 11/3/11 injectors leak and washers
have been changed. 8. 22/7/11 injectors leak and entire head has been replaced. 9.
Sometime in 2009 the car stalled because of injector failure and the injectors have
been replaced. 10. Many more instances of washers being changed. From the
above it can be observed that 1. head was replaced twice over a period of 31/2
years which I think is not normal, 2. injectors have been replaced at least on three
occasions. 3.injector washers have been replaced countless number of times. I
have been complaining about this problem to the Tata motors through their toll
free no, and the grievance box on their website. Every time I complain, I am
directed to the service station for the necessary repairs and every time the problem
keeps repeating.
I have been undergoing a lot of mental trauma and discomfort due to the fact that
my car has to be taken to the service station so many times other than the regular
services, and being left without a car for many days to resolve the problem, and
the cost of consumables and repair so far, because of warranty coverage, I have
been saved from massive bills, but what is my fate after the warranty expires in
Jan 2012??. From the above, it is clear that I was sold a car with a defective
engine and injection system.
I want them to replace the car. My name is Mohd Ateeq. I purchased a Tata indigo
car from Autofin Hyderabad in 2008. The vehicle number is AP 9 BQ 6487. After
3 years when I wanted to sell my car I got a shock of my life when I was told that
the car is damaged and all major parts of my car are replaced by the manufacturer
during this 3 years. I used my car very carefully without a scratch so there is no
scope for any accidents or major repairs. When I approached Autofin they denied
any access to the information of car as they are no more dealers of Tata motors
they cant help me. When I approached Tata motors head office in Hyderabad they
are not co operating with any sharing information, apart from showing any
sympathy and helping me out with the situation. Instead they are asking me stupid
questions like what all I was doing all this 3 years. Mr Srinivas some manager
177

clearly told me to go to any extent as they will not entertain such complaints.
My query is when I buy a brand new car from the showroom and being a normal
man I cant see that doors are changed unless it is a physical damage. You cant
inspect the vehicle as a mechanic. It is only when I went for my car valuation I
came to know about the internal damages of my car since delivered to me. I want
to file a cheating case upon auto fin India ltd and Tata motors India ltd for
cheating me by selling me damaged car by taking a price of new car. I want them
to refund the money I ha I went to Tata Gold Rush service center at Lucknow. My
vehicle number is UP 32 DS 4034.
There I met Mr. Vajpayee who was assigned to us by the showroom for handling
our complaint for mere 6kmpl average of Tata Manza. My father who is 61 yrs old
was also with me. There instead of handling our complaint, he started
misbehaving with my father and started abusing. I had no choice but to come in
between and ask him to behave. On this he called guards and we were pushed and
hit by guards and Mr. Vajpayee. I had to call police by dialing 100. But everyone
fled.
The GM Mr. Satish Rai of that service center started blackmailing us that if we do
not co-operate our car will never be repaired and we will have to face
consequences. I have lodged FIR against these bullies in Lucknow. My car is still
giving average of 6kmpl, and no one from Tata is listening. I want to return my car
and get my refund. It is only 2 months old and has run only 2200 km. I know these
employees will keep working in Tata and the company will take no action against
them. I want them repair my car or refund the amount. I have purchased TATA
MANZA last 4th Feb. 2011. My vehicle registration number is TN 30 AK 3480.
While I got the delivery, I found that the air-conditioner is not working. Next day I
have contact the person, he said fuse problem we will clear. Then I took my car to
my temp residence. Then also its not work, again I have contacted the nearest
TATA service center Tirupur.
They said your a/c compressor is the problem so contact your dealer. Then I took
car to Salem then they cleared. After 1500 km again its not working. Again I have
contact service GM he said this time we will clear. They took 5 days time and they
178

replaced the compressor. After 1 month again problem has came again. I called
him and he referred Coimbatore TATA dealer. I went there. They said condenser
problem and they took two days time and changed. After 20 days again my car a/c
is not working. Now I am with Coimbatore TATA service center. I dont know
what to do.
Every time I plan to go with my family in the car and its not successful. My
family members say that we have spent 7 lakhs but what is the use. I am so upset.
Now, I want them to replace the car. I have complained to the customer care of
TATA.
They took my complaint and the reference number is 1-13097531711 I purchased
Tata Indica V2 (chasis number- MAT600732APJ69905) on Jun 25th. Even though
I took the vehicle with temporary registration within a day I found faulty, wiper
and the accessories Blue vision doesnt have remote control. Later I spoke to
concern people and they promised me it will be taken care while registration.
Within next 2 days I found Gas transfer mechanism is not functioning. First they
told me I need to fill full tank then only it works. But even after it is failing, they
took my car on July 4th and as of today it was not returned. They told me there is
faulty kit and that will replace soon (in between they asked me to take the vehicle
but refused becaz I am not ready to accept faulty new car). As of today I am
waiting for my new car needs to be delivered. The local dealer is Hanuman
motors, where I got pathetic after sale service. I contacted Tata motor still they
asking me to take the faulty vehicle, which I am not ready. I sent following email
to Tata motors I didnt get reply so far. First I met Hanuman motors during the
month of May, they agreed for car exchange (Maruthi Dezire) and convinced me
to go for Indica V2, (but my ignorance I thought it was ev2) but anyway I
appreciate their salesmanship, even though I didnt interested in white color and
convinced me to go for white color since later I believe the vehicle is available
immediately.
Finally I had promised to deliver the car on Jun 25th and they delivered the
car...invited me to office 4PM and delivered the car 7:30 PM the reason is
insurance goof-up. While delivering the following item not delivered Light bulbs

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forced them to clean the dirty scratches (screen, near Gas inlet), Remote control
for Blue vision, FM radio not working (antenna is missing), Steering cover
(promised during delivery), Carpet flooring (promised during delivery). With this
I took the car and drove towards home. While driving I found my Wiper is making
sound and before reaching home my blue vision mirror is dangling. I told this
thing and they promised me to rectify it within 2 days and they took the car on
return to me on the same day evening and claimed that they replaced wiper, and
seat cover has been put but no steering cover and I reminded then and they put the
same.
While driving home, I again found wiper making sound and when switch over to
gas it works for 5 min and then automatically switchover to Petrol. When I
enquired they asked me to put more Gas and maintain pressure, which I did it and
but didnt work. It is been so many days but the car is not repaired. I want them to
replace it with a new car. Please help me. We had booked TATA NANO car
(NANO CX BS2 lunar Silver) for which we had made a payment of Rs 1,20,000
via cheque number 264645, Account number 0124-K3xxxx Indu sind bank on
25/04/09. The account was debited on 12/06/09 by Tata motors ltd. The Dealers
were G. P. Motors, Civil Lines, ALLAHABAD, U.P the application form of Tata
nano booking had a clause i.e. if our car is not allotted in the first 1,00,000 then
our amount was to be refunded. On 23th June 2009 these cars were allotted as per
the showroom information, gathered from Sujeet Kumar Singh, sales manager
Tata nano (08874204108). On which our account was to be credited with the paid
amount.
On approaching the G. P. Motors office (opp. state bank, civil lines, Allahabad)
several times, they kept giving us next confirmation dates, also after a few meets
they said our amount was refunded but to a wrong account, which is not possible,
if it was to be refunded it would be credited to our stated account number it self or
the account from which they had withdrawn the amount. Hence, on numerous
visits nothing substantial took place.
We even sent mails to the Bombay office, to Divya Srivastava, on her quit,
Navneet Trehan, and on his quit, Samuel C Finney and now the dealers (G. P.

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Motors) claim that he has quit the company too. Also I had written mails and even
had Telephonic communication with Mr. Vikat, the regional/territorial officer in
Uttar Pradesh.
Even he kept on promising that he shall look into the matter but nothing was done
by him. On reply to the Bombay e-mails they asked for the bank statements and
our complaint details that we had done we provided them with the bank statement
and the complaint requirements, after which no reply was given. Since then we
have been visiting the G. P. motors office for our refund, and they keep on making
excuses and now we have no way left to get our amount back. I want the company
to refund my booking amount as also mentioned in the registration clauseI own a
Tata Nano car purchased on Jan 26, 2010. On Apr 30, 2011, the car suddenly
stopped in the middle of the road. I called the Tata Nano toll free number and they
sent a local assistance. He checked the vehicle and informed me that the SALF of
the car is burnt out. He pushed the vehicle and it started. After 2 kilometers the car
stoppd again. I left the car in the roadside and came back home. Next day I called
the Toll free number and they tow the car to the service center GP Motors Private
Limited. Now it is almost 12 days, my vehicle has not been repaired. The reason is
non-availability of damaged part. It shows the standard of the car and the quality
of service provided by the company. I want them to immediately service my car
free of cost I am driving tata cars for the last 7 years firstly indica then indigo. I
exchanged my indigo with a new indica vista saffire on 2 november 2010 from
Truimph Auto Faridabad. I went to the dealer to buy a drivetech 4 indica vista
. They only had white colour and that too at an additional cost of Rs. 3000. But
they told me to take a euro 3 car. They told me there is no difference in euro 3 and
euro 4 car. So I asked them to give me discount on euro 3 car, and they gave a
discount of Rs. 25000/-. On January 2011 when I received my R.C, the
manufacturing date on that was mentioned as January 2009, which makes the car
already 2 years old, which I would have never bought if I knew that. They totally
hided the manufacturing dates from me, and sold me a 2 year old car. The car was
already rusted from several parts, which they tried to rectify but not fully. The
registration number of the vehicle is HR 29Y 5762 and chassis number is
611221AQZP00087. I contacted Tata regional office north, nothing happened. I
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spoke to the dealer but they refused to exchange the car, but they rectified few
problems. I contacted Tata corporate office, nothing happened till date. I want
them to replace my car.
I Veenu Tandon purchased Nano Lx car DL 9CZ 1630 on 01/04/2011 from
Techno Automobiles Pvt Ltd, Dwarka. Invoice number is TechAu-R-1011-03630,
and the cars purchase receipt number TechAu-R-1011-008800.The car was driven
only for 87km till 6th April 2011 at 700am while my driver driving car, my car
engine started giving smoke and engulf in flame within no time. With the help of
some passerby we could control the flame. I call mechanics from Techno
Automobiles (p) ltd to repair it because of the poor quality of car. On examining
the root cause of what went wrong with the engine it was found that the engine
had manufacturing defects. An engineer by profession has pointed out to me that
NANO has these problems from the beginning and never started again. When
contacting the company they failed to repair the car. After financing 2.40lakh for
purchasing the car and it was done only 87km.I am just asking the dealer a simple
question what is the life of the engine they produce if the car has not met with an
accident? I suppose they do not have an answer for this, while buying my car they
claimed that on technology and safety front the NANO comes with a host of
technologically advanced safety features. They claimed that warrantee is given for
extended period of 4 years. I say where this claim stands when the engine is burnt
off. It may be noted that the vehicle in question is lying in the TATA MOTORS
WORKSHOP since 06 APRIL 2011. I tried to contact the company regarding this
issue but still there is no response from them. I am calling the company again and
again but still no proper response from the company. I just want them to
understand the problem and change my vehicle immediately as I cannot drive a
vehicle that engulf in flame within 6 days from the date of purchase, which I think
they should.
I purchased Indica Vista Sapphire anniversary edition car on 31st Dec 2009.
Chasis number 611241. The car was delivered to me on 2rd Jan 2010 in a bad
shape. It had already run 250 kms before delivery. I informed the customer care
department about the issue, but no response. The car gave me trouble all through
an year. On 29th Jan 2011 I faced alignment problem and hence I took the car to
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Wheel Point at Indirapuram, Ghaziabad.

Shockingly I got to know that out of 5 tyres 4 are of size 145/70/R13 and 1 of
size 145/70/R14, which was a reason of poor mileage and damage of jumping
bush. I am shocked how could a company like TATA can cheat on their customers.
It was my first car and I was My car had a starting problem and therefore I called
Exide batteries to inspect the car, as despite purchasing a new battery on their
advice, the starting problem did not resolve. The old battery Exide was only two
years old. Then they asked me to do charge the battery every time at Rs. 100/- per
charge. Still the problem did not resolve. Then they sent me on a wild goose chase
asking me to repair my alternator, central locking, internal wiring etc costing
around Rs. 10,000/-. Finally they sent their staff and after investigation suggested
that there was a problem with the cars heater plug. Therefore I called Tata motors
breakdown service, who got the car started and said that I needed to replace the
heater plug.
I paid Rs. 550/- for the breakdown service and towing. The car was then collected
by Tata Motors authorized dealer Bharati Motors, Jogeshwari (E) (full address
given below). After the car was taken to the workshop Bharati Automobiles, the
works manager Mukul said that I would need to spend around Rs. 20,000/- or Rs.
45,000/- to repair or replace the fuel injection pump respectively. I was shocked at
the huge repair cost because contrary to Tata Motors and Exide diagnosis to
replace the heater plug which would have cost around 2000/- (two thousand) this
diagnosis by Bharati to repair/replace the fuel injection pump costed Rs. 20,000 45,000/- rupees. Suspecting exaggerated service from Bharati Automobiles, I
asked them to kindly return the vehicle without repairs as soon as possible.
However, they retained the car for two-three days despite my visits to collect my
car. Finally, when I took inspection, I was shocked to find that fuel was leaking
under the bonnet.
They assured me that fuel leak was temporary and would stop as they had bled
the engine. Surprisingly, they also charged me Rs. 2200/- stating that they had
opened the engine already. This was done without my approval and also no cost
was mentioned to me. They told that I could not take the vehicle if I dont pay

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their inexplicable charges. Having no option I paid the charges and took my car to
another garage, who said that the fuel injection pipes were damaged and needed
urgent repairs and thats why the fuel was leaking. They also replaced the heater
plug. Total cost around Rs. 1600/- and now my car is working fine since three
months. Not only did Bharati Automobiles a) purposefully damaged my car for
not approving their exorbitant charges & unnecessary repairs b) put my life at risk
as the leaking fuel could catch fire due to engine heat b) charged me for nothing c)
provided frivolous advice costing exorbitant amounts for a simple problem. d)
Made me visit their workshop several times to get my car back during office
hours. Booked Tata Nano on 14th Arp 2009. The allotment of the car was limited
which opened in July 2009. I did not get the car. I opted for refund if could not get
the car in first allotment. As per the agreement, I was supposed to get the refund
within Sept. 2009 time. Its been more than 16 months and more than 20 calls were
made to the company but no refund yet. Every time we get to know that the refund
will be made within 15 days. Kindly help me getting the refund. Application
Details, Application 112330267, booking no. CMP 308112, booking amount Paid:
Rs. 95000/-, chq. no. 104300, Dtd: 14-04-09, debited on: 17-04-2009, A/c No.
30046XXXXX, bank: SBI, Branch: ektanagar Bareilly, UP. I have purchased a
tata sumo grande ex 8 seater (D+7), Chassis no: MAT456164A9A00345 and
engine no: 2.2LDICOR07PQZJ17648, on dated 24/02/2010 from K.B. MOTORS
PVT. LTD (tax invoice no. CR01-10-18595354938) at Alipore showroom, 2/3
judges Court Road, kolkata-700 027, PH-033 40212700, Authorized dealers of
Tata Motors. On dated-21/01/2011, when I was travelling from Kolkata to
Rampurhat around 9.45 AM, suddenly our car failed to move forward at Durgapur
Highway. Then we have called to Tata Motor helpline no:18002097979, then they
sent B.D.MOTORS LTD people for inspection. They took the car to their
workshop and gave a list of particulars (Assy 240 dia cl disc, Assy240 dia
cl.cover-luk india, Assy cl rel.brgw/plastic sleeve-texspin) which need to be
changed. They are charging me Rs9765. But my vehicle is still under warranty but
they are saying that these particulars do not come under any warranty. I want them
to repair the vehicle free of costI have purchased Tata Indica Vista Terra TDI
(temporary registration no. K22T5312) on 3/11/2010 from Manickbag Motors,
Belgaum, vide invoice no.101100448. Before purchasing the vehicle, the dealer
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assured me to give Rs15000/- discount on purchase of new car. He asked me to

make the full payment from which he assured to refund Rs 15000. But after
purchasing the vehicle, he is refusing to refund my amount. Now dealer is telling
that the sales person has wrongly committed to me. There is no offer for the
vehicle. So please help me to get my money bacI bought a Tata Sumo Grande in
May 2008 from T C Motors, Howrah. Inspite of fulfilling all the formalities, my
car was in break down condition several times.
On 28.05.2010 myself and my families were in dangerous position in the jungle at
night (maoist area) for this vehicle as it suddenly broke at 10:00 pm. It stopped at
44862 km although a checkup was made for the vehicle at 43546 km. Again on
08.08.2010 on the return way from Puri, the power window failed. On 24.12.2010
the car again stooped. The vehicle has warranty till 60000 km. Whenever I have
taken it to the service station, they have repaired the vehicle and assured that it
would not have any further problem. But since last 2 years I have been facing
these problems. So I want replacement of my vehicle

CHAPTER 10

FINDINGS
185

CONCLUSIONS & RECOMMENDATIONS

ANNEXURE
BIBLIOGRAPHY

FINDINGS
Every study conducted may have certain shortcomings and
unfortunately ours is also a similar case. A few errors have crept in
despite our best effort to avoid them but it is expected that still our
study and findings are very much relevant.

We have takeDarbhanga as our area of sample but some of the

area have been left out because those areas comes under

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UNPROPER MANNER so an error may occur in the data collection.

An error may have been due to the data was taken different
department of organization
Personal bias or error of the interviewer might also have crept in:
some cases, while interpreting the different department
Certain questions which are not properly responded by the
different department .
Some of the department have not responded totally.
Most of data was kept only for employ of organization.

FOR

A PROCESS FOR WHICH THERE CAN BE NO MECHANICAL SUBSTITUTES.

YOU ANALYSES FINANCIAL STATEMENTS

ONE GENERELLY

WHEN

FACE FOLLOWING

LIMITATIONS.

Use ratios to get clues to ask the right question:

BY THEMSELVES RATIOS RARELY PROVIDE ANSWERS, BUT THEY DEFINITELY HELP
YOU TO RAISE THE RIGHT QUESTIONS OR ISSUES.

187

Be selective in the choice of ratios:

YOU CAN COMPUTE SCORES OF DIFFERENT RATIOS AND EASILY DROWN
YOURSELF INTO CONFUSION.

FOR

MOST PURPOSES A SMALL SET OF RATIOS-

THREE TO SEVEN-WOULD SUFFICE.

FEW

RATIOS, APTLY CHOSEN, WOULD

CAPTURE MOST OF THE INFORMATION THAT YOU CAN DERIVE FROM FINANCIAL
STATEMENTS.

Employ proper benchmarks:

IT IS A ROOM THE FOREGOING DISCUSSION, IT IS CLEAR THAT FINANCIAL
STATEMENT ANALYSIS CANNOT BE TREATED AS A SIMPLE, STRUCTURED EXERCISE.

IT

IS A PROCESS REQUIRING CARE, SOPHISTICATIONS, EXPERIENCE, AND BUSINESS

JUDGMENT AND IMAGINATION COMMON PRACTICE TO COMPARE THE RATIOS

(CALCULATED FROM
BENCHMARKS. THESE

SET

OF

FINANCIAL

STATEMENTS)

AGAINST

SOME

BENCHMARKS MAY BE THE AVERAGE RATIOS OF THE

INDUSTRY OR THE RATIOS OF THE INDUSTRY LEADERS OR THE HISTORIC RATIOS OF

THE FIRM ITSELF.

Know the tricks used by accounts: SINCE FIRMS TEND TO MANIPULATE THE
REPORTED INCOME, YOU SHOULD LEARN ABOUT THE DEVICES EMPLOYED BY
THEM.
Read the footnotes:
FOOTNOTES SOMETIMES CONTAIN VALUABLE INFORMATION. THEY MAY REVEAL
THINGS THAT MANAGEMENT MAY TRY TO HIDE. THE MORE DIFFICULT IT IS TO
READ A FOOTNOTE, THE MORE INFORMATION-LADEN IT MAY BE.
Remember that financial statement analysis is an odd mixture of art and science:
FINANCIAL STATEMENT ANALYSIS CANNOT BE REGARDED AS A SIMPLE, STRUCTURE
EXERCISE. IT IS A PROCESS REQUIRING CARE, THOUGHT, COMMON SENSE, AND
BUSINESS JUDGMENT- A PROCESS FOR WHICH THERE ARE NO MECHANICAL
SUBSTITUTES.

Conclusion
TATA MOTORS is a one of the prestigious organization of its range . Company
is producing light, medium, heavy and medium heavy vehicle. Company follows
ethical rules and code of conduct. Company provides training to the employees
at regular basis. Company pays excise duty and bond at regularly to government.
It has separate department of every stream.

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TATA MOTORS RETURN OF EXCISABLE GOODS

In month of April.
quantity manufactured=7233
quantity cleared=6858
assessable value=5867487349.64
duty payable=883607057.53

RECOMMENDATIONS

In metro City it must provide Whole night visit to a showroom

Tata motors should improve after sale service to its customers.
Have different market Segmentation, according to changing in Marketing
scenario.
Must have more Variation in its Product range.

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 Instead of focusing upper class customers tata motors should focus on

consuming class.
Tata motors should launch new models for youth generation.
It should increase its show rooms in rural areas also.
Products knowledge and demo services can be improved

Initial Services to new customers must be provided to make the new

customers familiar with the product.

ANNEXURE

Conversion of electrical heating into gas heating system of washing machines.

Installation of CFL and LED bus bar indicators. Use of 24Wx4 T5 lamps for street
lights, electronic ballasts, LED street lights, 160W LED High bay lights at
Dharwad Plant.
Installation of Light pipes & Transparent Polycarbonate sheets, Solar water
system for canteen, and 25KWp Solar Power plant at Company's Lucknow plant.
Initiative towards use of "ON-Site" Green Power (Wind-Solar Hybrid System) for
Company's Dharwad Plant.
These changes have resulted in energy saving of 2.3 crore units of electricity,
285KL of LDO, 10KL of HSD, and 173MT of Propane. The whole effort resulted
in cost savings for the Company of around 14.92 crores and annual

190

CO2 reduction of 20,456 tCO2.

BIBLIOGRAPHY

Secondary sources:

www.tatamotors.com
www.snap.com
www.indiatimes.com
www.moneycontrol.com
www.google.com
www.yahoo.answer.com
www.wikipedia.com

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