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INTRODUCTION
“A promise is promise and I kept my promise”- this is the historical statement which Mr RATAN
TATA said when he la!nched his am"itio!s TATA NANO# the people$s car in India on %& rd march
%''( Tata has always )i*en *al!e prod!cts in the Indian Car Market whether it is path "reakin)
recently la!nched TATA NANO or TATA INDICA +which created )reat "rand into the car ind!stry
in the diesel se)ment,
Not only is the passen)er car e*en into the hea*y *ehicle se)ment TATA is the only sole leader in
India
TATA has created its "rand *al!e not only in India "!t e*en o!tside India it has created its "rand "y
ac.!irin) /a)!ar-0and Ro*er Cor!s 1teel d!rin) %''2-'3
TATA has "een named amon) top 4' "rand companies "y 5ort!ne Ma)a6ine in the year %''3 It has
)ot into top 4'' companies in the s!r*ey o7 1tandard 8 9oor Mody$s research in the year %''3
:ein) into most *al!ed "rand in world the cons!mer satis7action to its c!stomers is *ery important
7or TATA1 and th!s they are contin!o!sly workin) into this area where their o";ecti*e is to pro*ide
"est prod!cts with 7!ll *al!e o7 the money o7 their c!stomers
The TATA INDICA <I1TA has "een one o7 those prod!cts yo! ;!st cannot i)nore =hile it )ot
media co*era)e aro!nd the world the reactions tho!)h mi>ed 7lowed easily On the one hand there
has "een pride in the “=orld$s mid si6e small car” ta) as a )reat achie*ement 7or Indian ind!stry
The “=orld$s mid si6e small Car” ta) has "een well recei*ed with the hope that a whole new
cate)ory o7 people can look to "!y a car now
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4 1TUD? O5 T@ INDU1TR?
a, @istorical :ack)ro!nd
In India there are 4'' people per *ehicle while this 7i)!re is 3% in China It is e>pected that
Indian a!tomo"ile ind!stry will achie*e mass motori6ation stat!s "y %'4B
1ince the 7irst car rolled o!t on the streets o7 M!m"ai +then :om"ay, in 43(3 the A!tomo"ile
Ind!stry o7 India has come a lon) way D!rin) its early sta)es the a!to ind!stry was o*erlooked "y
the then o*ernment and the policies were also not 7a*ora"le The li"erali6ation policy and *ario!s
ta> relie7s "y the o*t o7 India in recent years has made remarka"le impacts on Indian A!tomo"ile
Ind!stry Indian a!to ind!stry which is c!rrently )rowin) at the pace o7 aro!nd 43 per ann!m has
"ecome a hot destination 7or )lo"al a!to players like <ol*o eneral Motors and 5ord
A well de*eloped transportation system plays a key role in the de*elopment o7 an economy and
India is no e>ception to it =ith the )rowth o7 transportation system the A!tomoti*e Ind!stry o7
India is also )rowin) at rapid speed occ!pyin) an important place on the Ecan*asE o7 Indian
economy
Today Indian a!tomoti*e ind!stry is 7!lly capa"le o7 prod!cin) *ario!s kinds o7 *ehicles and can "e
di*ided into '& "road cate)ories F Cars two-wheelers and hea*y *ehicles
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The 7irst a!tomo"ile in India rolled in 43(2 in :om"ay
India is "ein) reco)ni6ed as potential emer)in) a!to market
5orei)n players are addin) to their in*estments in Indian a!to ind!stry
=ithin two-wheelers motorcycles contri"!te 3' o7 the se)ment si6e
%
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G
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Unlike the U1A the Indian passen)er *ehicle market is dominated "y cars +2(,
Tata Motors dominates o*er H' o7 the Indian commercial *ehicle market
%&rd o7 a!to component prod!ction is cons!med directly "y OMs
India is the lar)est three-wheeler market in the world
India is the lar)est two-wheeler man!7act!rer in the world
India is the second lar)est tractor man!7act!rer in the world
India is the 7i7th lar)est commercial *ehicle man!7act!rer in the world
The n!m"er one )lo"al motorcycle man!7act!rer is in India
India is the 7o!rth lar)est car market in Asia - recently crossed the 4 million mark
B' o7 the three-wheelers are !sed as )oods transport p!rpose 9ia))io holds B' o7 the market
share Amon) the passen)er transport :a;a; is the leader "y makin) H3 o7 the three-wheelers
Cars dominate the passen)er *ehicle market "y 2( Mar!ti 1!6!ki has J% share in passen)er cars
and is a complete monopoly in m!lti p!rpose *ehicles In !tility *ehicles Mahindra holds B% share
In commercial *ehicle Tata Motors dominates the market with more than H' share Tata Motors is
also the worldEs 7i7th lar)est medi!m 8 hea*y commercial *ehicle man!7act!rer
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", C!rrent 1cenario
The )rowth o7 the Indian middle class alon) with the )rowth o7 the economy o*er the past 7ew years
has attracted )lo"al a!to ma;ors to the Indian market Moreo*er India pro*ides trained manpower at
competiti*e costs makin) India a 7a*o!red )lo"al man!7act!rin) h!" The attracti*eness o7 the
Indian markets on one hand and the sta)nation o7 the a!to sector in markets s!ch as !rope U1 and
/apan on the other ha*e res!lted in shi7tin) o7 new capacities and 7low o7 capital to the Indian
a!tomo"ile ind!stry Accordin) to the International ?ear"ook o7 Ind!strial 1tatistics %''3 released
"y United Nations Ind!strial De*elopment Or)anisation +UNIDO, India ranks 4%th in the list o7 the
world$s top 4J a!tomakers
Indian OMs Come o7 A)e
Indian ori)inal e.!ipment man!7act!rers +OMs, are makin) their mark today with Tata and
Mahindra 8 Mahindra as leadin) Indian OMs emer)in) on the )lo"al scene =ith increasin)
competition 7rom the )lo"al players Indian OMs ha*e !p)raded their technolo)y and are
man!7act!rin) s!perior-desi)ned *ehicles
E5r!)al n)ineerin)E has "ecome the hallmark o7 the Indian a!tomoti*e ind!stry with Indian OMs
le*era)in) the Indian lead in cost-e77ecti*eness and a hi)hly-skilled h!man reso!rce pool to "rin)
down the prod!ct de*elopment cost Additionally competencies o7 their s!ppliers ha*e also helped
to lessen costs and man!7act!rin) time In 7act )lo"al OMs are now lookin) at "ene7itin) 7rom the
India ad*anta)e "y !sin) India-"ased desi)n and de*elopment centres Tata Ace Indica and Nano
and MahindraEs 1corpio are e>amples o7 prod!cts de*eloped "y Indian OMs a7ter painstakin)
market research a"o!t the speci7ic needs o7 the Indian cons!mer
B
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9rod!ction
Altho!)h the sector was hit "y economic slowdown o*erall prod!ction +passen)er *ehicles
commercial *ehicles two wheelers and three wheelers, increased 7rom 4'3J million *ehicles in
%''2-'3 to 4442 million *ehicles in %''3-'( 9assen)er *ehicles increased mar)inally 7rom 422
million to 43& million while two-wheelers increased 7rom 3'% million to 3B4 million
In recent times India has emer)ed as one o7 the 7a*o!rite in*estment destinations 7or a!tomoti*e
man!7act!rers
<ol*o :!ses India is eyein) &J per cent )rowth in domestic sales this year at JJ'-H'' !nits
as a)ainst aro!nd BB' !nits sold in %''3
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Toyota Kirloskar Motor 9*t 0td +TKM0, the Indian s!"sidiary o7 /apan$s Toyota Motor
Corp is increasin) its in*estment "y U1L 4HB3 million at its man!7act!rin) site near
:an)alore to to!ch U1L 3%B&% million "y %'4H
G 5rench carmaker Rena!lt has completely recast its plans 7or India as part o7 a new
a))ressi*e approach that will see it prod!cin) cars in its Chennai plant "y %'44
G @y!ndai has made India its )lo"al h!" 7or man!7act!rin) small cars It will in*est U1L 4
"illion in its second plant in Chennai "y %'4& In addition it is also in*estin) U1L B' million
in its research and de*elopment +R8D, 7acility in @ydera"ad
G
G
eneral Motors has so 7ar in*ested a"o!t U1L 4 "illion into its Indian operations
Mercedes-:en6 will in*est a"o!t U1L HB %4 million in its plant at Chakan near 9!ne
Domestic Market
1ales o7 cars and commercial *ehicles ha*e "een impacted d!e to )lo"al economic slowdown
@owe*er in spite o7 that there has "een a mar)inal increase in the n!m"er o7 *ehicles sold in %''3-
J
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'( as compared to %''2-'3 Total n!m"er o7 *ehicles sold incl!din) passen)er *ehicles commercial
*ehicles two-wheelers and three-wheelers in %''3-'( was (2% million as compared to (HJ million
in %''2-'3 Accordin) to an rnst 8 ?o!n) analysis passen)er *ehicle sales in the co!ntry will
)row at a CAR o7 4% per cent to to!ch &2J million !nits "y %'4B as a)ainst 43( million !nits at
the end o7 %''3-'( =hile domestic market is e>pected to contri"!te %2J million !nits to the total
tally the remainin) 4 million !nits wo!ld contri"!te towards e>ports 0ikewise as per estimates "y
CAR Research the domestic two-wheeler sales will )row at a CAR o7 33 per cent "y %'4B at
44& million !nits *is-a-*is 2B& million !nits in %''3-'( @onda 1iel Cars India +@1CI, the Indian
s!"sidiary o7 the /apanese )iant @onda Motor Co said that its sales will re)ister do!"le di)it )rowth
in the c!rrent 7inancial year The company e>pects its total sales to "e aro!nd H''''-HJ''' !nits
d!rin) the c!rrent year !p 7rom JJ%J' cars sold in %''3-'(
>ports
Accordin) to the 1ociety o7 Indian A!tomo"ile Man!7act!rers +1IAM, a!tomo"ile sales +incl!din)
passen)er *ehicles commercial *ehicles two-wheelers and three-wheelers, in the o*erseas markets
increased to 4J& million !nits in %''3-'( 7rom 4%& million !nits in %''2-'3 >port o7 passen)er
*ehicles increased 7rom %43B'4 in %''2-'3 to &&J2&( !nits in %''3-'( The )rowth in e>port was
led "y @y!ndai Motor India 7ollowed "y others s!ch as M1I0 Mahindra Rena!lt 5iat India
A!tomo"iles eneral Motors India and @onda 1iel Cars India
9olicy
In order to make India a power to reckon with in the a!tomoti*e sector the )o*ernment la!nched the
A!tomoti*e Mission 9lan +AM9, %''H-%'4H The *ision o7 the AM9 is to emer)e as the destination
o7 choice in the world 7or desi)n and man!7act!re o7 a!tomo"iles and a!to components with o!tp!t
reachin) a le*el o7 U1L 4BJ "illion acco!ntin) 7or more than 4' per cent o7 the D9 and pro*idin)
H
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additional employment to %J million people "y %'4H As per the AM9 it is estimated that the total
t!rno*er o7 the a!tomoti*e ind!stry in India wo!ld "e in the order o7 U1L 4%% "illion-4J( "illion in
%'4H It is e>pected that in real terms India wo!ld contin!e to en;oy its eminent position o7 "ein) the
lar)est tractor and three-wheeler man!7act!rers in the world and the worldEs second lar)est two-
wheeler man!7act!rer :y %'4H India will emer)e as the worldEs se*enth lar)est car prod!cer +as
compared to the ele*enth lar)est c!rrently, and retain the 7o!rth lar)est position in world tr!ck
man!7act!rin) sector 5!rther "y %'4H the a!tomoti*e sector wo!ld do!"le its contri"!tion to the
co!ntryEs D9 7rom c!rrent le*els o7 7i*e per cent to 4' per cent
c,Ind!stry Analysis
*en as recession-hit international a!tomo"ile ma;ors are str!))lin) to maintain s!staina"le sales 7i)!rescar
e>ports 7rom India s!r)ed "y a remarka"le J2 per cent year-on-year in the recently-ended 0ed "y @y!ndai
Motor India 0td and Mar!ti 1!6!ki India 0td India-"ased car makers shipped a record n!m"er o7 *ehicles
mainly to !rope >ports )rew to &&4J&( cars 7rom %4444% a year earlier >ports had )rown "y a
comparati*ely mea)re 3( per cent in the pre*io!s year +%''2-'3, accordin) to 7i)!res released "y the the
1ociety o7 Indian A!tomo"ile Man!7act!rers The co!ntryEs lar)est e>porter @y!ndai mana)ed an e>port
)rowth rate o7 H& per sent at %&J&BJ !nits compared with 4BBBB' !nits in the year-a)o period Domestic
market leader Mar!ti 1!6!ki was a distant second re)isterin) &%J3 per cent )rowth in o*erseas sales at
H33&B !nits Mar!ti and @y!ndai la!nched new models in the past year incl!din) Mar!tiEs A-1tar and
@y!ndaiEs i%' tar)eted at the !ropean market which is cited as one reason 7or the ro"!st e>port n!m"ers
The weakness o7 the r!pee which 7ell more than %' per cent a)ainst the dollar in the ;!st-ended 7iscal year
also helped "y makin) Indian cars cheaper a"road >port )rowth was also ro"!st in the two-wheeler
cate)ory which re)istered %%J' per cent rise at 4''B42B !nits as a)ainst 34(24& !nits in the pre*io!s
7inancial year@owe*er with the )lo"al economy slowin) demand 7rom !rope may not hold !p analysts
said Meanwhile lendin) rates in India are at nearly 7i*e-year hi)hs as "anks worried a"o!t "ad loans hold
"ack 7rom 7inancin) *ehicle p!rchasesThe main concerns are a*aila"ility o7 7inance which incl!des
2
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li.!idity and hi)h interest rates Domestic car sales in the year ended &4 March )rew "y a mere 4& per cent
7rom a year earlier to 4%4 million cars 7rom 4% million in the pre*io!s year 0ocal car sales had clim"ed 4%
per cent in the pre*io!s 7iscal year Domestic sales o7 tr!cks and "!ses 7ell %% per cent to &3B4%% *ehicles
7rom B('B(B Motorcycle sales )rew 4% per cent to J3& million while scooters )ained (4 per cent at 44B
million Ind!stry e>ec!ti*es and analysts e>pect meas!res taken "y )o*ernment a!thorities to sp!r lendin)
while the introd!ction o7 new models co!ld sli)htly "oost domestic *ehicle sales this year
9assen)er *ehicle sales remained practically 7lat recordin) a mere '4& percent )rowth o*er the
pre*io!s year =ithin this se)ment passen)er cars and m!lti-p!rpose *ehicles )rew "y ;!st 4&4
percent and JH( percent respecti*ely d!rin) %''3-'( @owe*er sales o7 !tility *ehicles act!ally
declined 2(B percent D!rin) the month o7 March itsel7 passen)er *ehicle sales dropped 44J
percent o*er the same period last year The se)ment that was hardest hit "y the slowdown was
commercial *ehicles with tr!ck and "!s sales droppin) a massi*e %4H( percent d!rin) %''3-'(
o*er the same period last year Medi!m and hea*y commercial *ehicles declined "y an e*en lar)er
&&4H percent while the decline was less se*ere 7or li)ht commercial *ehicles which dropped 24'
percent In March %''( commercial *ehicle sales 7ell a s!"stantial %H%% percent compared to
March %''3 with medi!m and hea*y C<s droppin) B&B' percent and 0C<s 7allin) ;!st '42
percent Also medi!m and hea*y "!ses )rew "y a mar)inal 'J2 percent and li)ht "!ses dropped
H2% percent Three-wheeler sales 7ell "y B4& percent d!rin) the pre*io!s 7iscal year while
passen)er carriers )rew a solid 4B&H percent d!rin) %''3-'( oods carriers declined a massi*e
&2J% percent d!e to the slowdown in economic acti*ity In March this year three-wheeler sales
act!ally )rew "y 44B' percent o*er the same month last year
Two-wheeler sales also came !nder intense press!re in the last 7inancial year d!e to the s!dden
slowdown in lendin) to this se)ment "y "i) pri*ate 7inance companies This co!pled with weak
cons!mer sentiment has seen the se)ment report a mea)re %H' percent )rowth d!rin) %''3-'(
3
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=hile mopeds and scooters )rew "y B%% percent and (44 percent respecti*ely motorcycle sales
were partic!larly "adly hit )rowin) ;!st 44H percent lectric two-wheelers )rew "y B(B3 percent
al"eit 7rom a relati*ely smaller "ase D!rin) March %''( two-wheeler sales )rew at a sl!))ish &HJ
percent o*er the same month last year indicatin) that a s!stained reco*ery is still sometime away
>port o7 a!tomo"iles d!rin) %''3-'( )rew stron)ly showin) an increase o7 %&H4 percent with all
se)ments recordin) increases e>cept 7or commercial *ehicles which were a77ected d!e to the )lo"al
economic slowdown The e>port o7 passen)er *ehicles and two-wheelers )rew J&2& percent and
%%J' percent respecti*ely while three-wheeler e>ports )rew B3J percent @owe*er e>ports o7
tr!cks and "!ses declined "y %2H2 percent d!rin) this period Accordin) to Tata Motors its
domestic sales 7or March %''( were J%H3H !nits while total sales +incl!din) e>ports, were JBB3J
*ehicles 5or the entire 7inancial year ended March %''( total sales were B(3J34 which are 4B
percent lower than the J3%&(' !nits sold in the pre*io!s 7iscal The company "elie*es that the
7inancial stim!l!s packa)es anno!nced "y the )o*ernment partic!larly 7or commercial *ehicles
ha*e had a positi*e impact @owe*er it 7eels that the demand 7or tr!cks at the retail le*el wo!ld still
take some time to reach le*els 7rom the last 7iscal As a res!lt its March %''( domestic sales were
4& percent lower than those o7 March %''3 Meanwhile Mahindra said it sold %J2B3 !nits in March
%''( in the domestic market its hi)hest e*er monthly sales 7i)!res This compares with the %&4%3
!nits sold in March %''3 a solid &' percent increase in sales 7or the company$s !tility *ehicles This
incl!des the hi)hest e*er monthly sales 7or the 1corpio :olero and the 9ik-Up models which stood
at 4((2& !nits 7or March %''( as a)ainst 4J&HH !nits 7or the same period last year The newly
la!nched ylo m!lti-p!rpose *ehicle also sold stron)ly with &4%B !nits 7indin) "!yers in the Indian
market Accordin) to Anand Mahindra *ice-chairman and mana)in) director Mahindra 8
Mahindra “This is a clear *alidation o7 the 7aith reposed in o!r prod!cts "y c!stomers I am
especially pleased that o!r new Mahindra ylo has chan)ed the r!les o7 the )ame with impressi*e
sales 7i)!res” The :olero model has also done *ery well 7or the company sellin) a record JJ(%B
(
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!nits in %''3-'( Accordin) to Mahindra this makes the :olero the 7irst "rand in the 1U< U<
M9< se)ments to cross J'''' !nits 7or two consec!ti*e years
@y!ndai Motor India re)istered a 43 percent decline in c!m!lati*e sales d!rin) March %''( =hile
its domestic sales dropped 4J3 percent e>ports )rew "y %4H percent thanks to hi)her e>ports o7
i4' and i%' models to !rope Total March %''( sales were BH4H' !nits a)ainst B2''4 !nits in
March %''3 The Indian market acco!nted 7or %B2JB !nits compared to %(B'4 !nits 7or the same
month last year while the e>ports totaled %4B'H !nits in March %''( a)ainst 42H'' !nits o7
March %''3 Accordin) to Ar*ind 1a>ena senior *ice- president - Marketin) and 1ales “As we
ha*e stated earlier the ind!stry is 7ar 7rom seein) a t!rnaro!nd at this moment I7 we look at the
5e"r!ary and March %''( sales com"ined and compare them to %''3 7or the same period then we
ha*e re)istered a )rowth o7 BJ percent whereas March %''( sales o*er 5e"r!ary %''( ha*e )rown
"y 4H2 percent” Mar!ti also claimed a sales record in March %''( with its Alto model reportin) its
hi)hest e*er monthly sales o7 %&JH( !nits a ;!mp o7 %'(3 percent o*er the correspondin) period
last year @onda has also reported stron) n!m"ers thanks to the o*erwhelmin) pop!larity o7 its New
City which sold H'B' !nits d!rin) March %''( This is a partic!larly remarka"le 7eat )i*en the
di77ic!lt market conditions pre*ailin) at the c!rrent time Total sales 7or the /apanese carmaker
d!rin) the month )rew &% percent with 2&H3 !nits "ein) sold in March %''( a)ainst JJ2( !nits
sold in 5e"r!ary %''( 1IAM has pro;ected that Indian passen)er car sales d!rin) %''(-4' wo!ld
)row aro!nd 7i*e percent dri*en "y demand 7rom r!ral and semi-!r"an markets Commercial
*ehicle sales are estimated to rise "y as m!ch as se*en to 4' percent d!rin) the c!rrent 7iscal while
two-wheelers are e>pected to )row "y 7i*e percent in %''(-4' thanks to the )rowth in credit
a*aila"ility rowth in demand 7or passen)er *ehicles wo!ld accordin) to 1IAM "e dri*en "y the
a*aila"ility o7 se*eral new small cars incl!din) the Tata Nano Mar!ti Rit6 @onda /a66 and <=
9olo Other positi*es 7or the sector are the !pcomin) *ehicle repossession )!idelines 7rom the
Reser*e :ank o7 India and 7allin) interest rates
4'
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1ales o7 commercial *ehicles will start pickin) !p this year d!e to the e>tension o7 the J' percent
depreciation "ene7it )i*en to tr!ck owners 7rom March E'( to /!ne E'( Increased in7rastr!ct!re
spendin) "y the )o*ernment sho!ld also )i*e a "oost to *ehicle demand in %''(-4' The )rowth in
li)ht commercial *ehicles like the Tata Ace is also e>pected to contin!e 1ome carmakers howe*er
disa)ree with these pro;ections sayin) that they are o*erly optimistic
44
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% COM9AN? 1TUD?
a, @I1TOR? O5 TATA MOTOR1
4,+Company$s pro7ile,
The Company was incorporated on 4st 1eptem"er 4(BJ at M!m"ai to man!7act!re
diesel *ehicles 7or commercial !se e>ca*ators ind!strial sh!nter d!mpers hea*y
7or)in)s and machine tools The commercial diesel *ehicles which were known Tata
Mercedes :en6E +TM:, are now called TataE *ehicles a7ter the e>piry o7 the
colla"oration a)reement with Daimler-:en6 A =est ermany The company also
!sed to man!7act!re p!lp and paper makin) machinery In 4(H' the companyEs name
which was Tata 0ocomoti*e 8 n)ineerin) Company 0td was chan)ed to Tata
n)ineerin) 8 0ocomoti*e Company 0td In the year 4(32 the company !ndertook to
set !p a new 7or)e shop a hi)h o!tp!t 7o!ndry line a new paint shop as well as
a!)mentation o7 en)ine and )ear"o> man!7act!rin) 7acilities all at /amshedp!r
In 4((4 D!rin) the year the company entered into a colla"orati*e a)reement with an
internationally renowned en)ine research and de*elopment or)anisation to ;ointly
de*elop hi)her horsepower 7!el e77icient diesel and petrol en)ines to meet the 7!t!re
re.!irements o7 the company The last .!arter saw the company la!nchin) two new
passen)er *ehicles the 1IRRA and the 1TAT totally desi)ned and man!7act!red
in India The company ac.!ired a :I5R company Ms Nod!ron 5o!nders
4%
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Maharashtra 0td The total cost 7or Telco worked o!t to Rs43 crores as a)ainst settin)
!p o7 similar critical castin)s 7o!ndry D!rin) the year company la!nched a new earth
mo*in) e.!ipment T=K-&'&H Tata 5ront nd =heel 0oader Two new models in the
series o7 hydra!lic e>ca*ators were la!nched A 4' tonne pick and carry
artic!lated crane desi)ned and de*eloped in-ho!se was also introd!cedD!rin) the
year company entered into an a)reement with Nachi-5!;ikoshi Corporation /apan to
man!7act!re arc and spot weldin) ro"ots s!ita"le 7or a!tomo"ile man!7act!rin)
applications D!rin) the year company !ndertook to set !p a ;oint *ent!re with Asian
lass Co 0td /apan to man!7act!re 7loat )lass to "e !sed as wind shields 7or
a!tomo"iles ACC alon) with Tata >ports 0td participated in the ;oint *ent!re The
;oint *ent!re named as 5loathlass India 0td the Company wo!ld ha*e a stake o7
4H&& Tata C!mmins 0td Mercedes-:en6 +India, 0td Tata @olset 0td Tata
9recision Ind!stires 1in)apore and Nita Company 0td are the ;oint <ent!res o7 the
Company
Takin) ad*anta)e o7 the "road "andin) policy anno!nced "y the o*ernment o7
India the Company entered into a colla"oration a)reement with @onda Motor Co
0td /apan 7or the man!7act!re o7 their ACCORDE model o7 cars in India
On %%nd April an a)reement was entered into "etween Daimler-:en6 A and
Mercedes :en6 A ermany to set!p a ;oint *ent!re company Mercede6-:en6 India
to man!7act!re E class paneyer cans and en)ines in India
D!rin) the year 4((J a new do!"le pick-!p and Army <ersion o7 *ario!s Telco
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<ehicles were de*eloped A new petro en)ine and t!r"o diesel en)ine an !p-)raded
2'( 0C< new sports !tility *ehicle 1a7ari e>pected to "e la!nched shortly A %J
tonne H % tr!ck and a "!s with c!mmins en)ine were la!nched
Tata n)ineerin) and 0ocomoti*e Company +T0CO, has ac.!ired a second hand
paint shop machine line and cylinders 7rom the A!stralian !nit o7 the /apanese a!to
)iant Nissan T0CO is "elie*ed to ha*e picked !p the !nit 7or Rs 2' crore The
total cost o7 import d!ty wo!ld "e Rs 4'' crore D!rin) the year a machine tool
di*ision was e>panded so as to do!"le its machine "!ildin) capacity and si)ni7icantly
red!ce prod!ction times
The Company has la!nched TATA 1A5ARI in its M!lti !tility *ehicle se)ment
Tata @olsetEs t!r"o char)er plant ina!)!rated on No*em"er %J 4((H
In 4((2 the Tata n)ineerin) and 0ocomoti*e Company 0td +T0CO, has emer)ed
as n!mero !no in the Re*iew %'' s!r*ey cond!cted "y the 5ar astern conomic
Re*iew in association with Citi :ank The Company introd!ced a (-tonne *ehicle
which was well recei*ed in the market A B' tonne tractor trailer powered "y a Tata
C!mmins n)ineerin) was introd!ced The Company de*eloped a low 7loor "!s
chassis to meet the speci7ic needs o7 !r"an transport The Company si)ned a new
a)reement with @itachi 7or man!7act!re o7 !p)raded *ersions o7 e>istin) ran)e o7
e>ca*ators
The year 4((3- Tata n)ineerin) and 0ocomoti*e Company 0td +Telco, anno!nced a
tie-!p with Tata 5inance 0td and ANP rindlays :anks as the o77icial 7inanciers 7or
4B
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its small car Indica to "e la!nched in Decem"er Tata n)ineerin) 0ocomoti*e
Company 0td +Telco, sold its constr!ction e.!ipment "!siness into a new s!"sidiary
company Telco Constr!ction .!ipment Company 0td The Company in its small car
se)ment has la!nched Tata Indica which e*oked an o*erwhelmin) response in the
Indian market A new ran)e o7 c!mmins en)ine powered *ehicle which incl!de a &J
tonne and a B' tonne artic!lated tr!ck and two *ariants o7 "!ses
To make s!"stantial impro*ement in the .!ality o7 "!s "odies a*aila"le with TATA
*ehicles the Company enco!ra)ed colla"oration "etween 5!;i @ea*y Ind!stries o7
/apan and the A!tomo"ile Corporation o7 oa The new pro;ect !ndertakes prod!ction
o7 "odies on TATA chassis con7ormin) to the most e>actin) international standards
Concorde Motors 0td a /oint <ent!re "etween Tata n)ineerin) and /ardine
International Motors +Ma!riti!s, 0td was appointed as dealer 7or the CompanyEs
passen)er cars in se*eral cities across the co!ntry in 5e" 4((3
The year 4(((-Telco "ecame the 7irst Indian man!7act!rer to o77er commercial
*ehicles meetin) e!ro-I emission norms a year "e7ore they are d!e to "e introd!ced in
the co!ntry It is proposed to make TCC0 a one-stop shop 7or constr!ction
e.!ipment and earthmo*in) machinery In Oct 4((( the Company won the National
award 7or R8D 77orts in De*elopment o7 Indi)eno!s Technolo)y in the Mechanical
n)ineerin) Ind!stries 1ector instit!ted "y Department o7 1cienti7ic and Ind!strial
Research Ministry o7 1cience and Technolo)y 7or the year 4((( 1K5 :earin)s India
0td has si)ned an a)reement with Telco to s!pply h!" "earin)s 7or its latest model
4J
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Tata Indica
%''' saw the Company workin) towards introd!cin) two new petrol-dri*en *ariants
o7 its small car Indica powered "y a m!lti-point 7!el in;ection en)ine The Company
la!nched the Indica %''' the !ro II Complaint 2J :@9 m!lti-point 7!el in;ection
+M95I, *ersion o7 Indica The Company has won the National Technolo)y Award
7or indi)eno!s de*elopment and commerciali6ation o7 the Tata Indica car The
Company has la!nched its new hi-tech Indica %''' car with M95I petro en)ine in
!wahati
Tata n)ineerin) 8 0ocomoti*e Co is renamed as Tata n)ineerin) 0td It replaced
its three-shi7t prod!ction line with a one-shi7t daily sched!le startin) 7rom %Hth /!ne
In the same year 5ICCI-1D5- :!sinessworld-Compa. award 7or social
responsi*eness was awarded to the company The Central 9oll!tion Control :oard 7or
n*ironmental Technolo)y award has "een presented to Tata n)ineerin) in
reco)nition o7 its contri"!tion towards e77orts to conser*e the en*ironment TATA
n)ineerin) on 1eptem"er 4' anno!nced the addition o7 M95I petrol *ersion to the
Indica <% ran)e
In year %''% 5orei)n Instit!tional In*estors +5II, hike stake in the company to 4&&B
0a!nches si> new prod!cts in li)ht medi!m and hea*y *ehicles se)ments on /an 4J
d!rin) A!to >po Anno!nces 7inancial restr!ct!rin) Displays its Tata 1edan car at
the ene*a Motor 1how Indica ad;!d)ed top sellin) :-se)ment car in
%''%0a!nches two new motorsport cars +The Pero and Do!"le Pero 9ace cars, @i)h
4H
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Co!rt Appro*es Tata n)ineerin)Es 5inancial Restr!ct!rin) Tata n)) :9C0 tie !p
to market co-"randed l!"ricantsTata 1teelEs in*estment in Tata n)ineerin) has "een
hiked to Rs 442(3 crore o*er the last year Telco names 1edan as Tata
Indi)oUn*eils EE series o7 medi!m and hea*y commercial *ehicles Indica sales
cross two-lakh mark Colla"orates with Nippon-Arcelor 7or technical knowhow on CR
steel Recei*es TeriEs +The ner)y and Reso!rces Instit!te, CoR-:C1D +Corporate
ro!ndta"le on de*elopment o7 strate)ies 7or s!staina"le de*elopment and
en*ironment-"!siness co!ncil 7or s!staina"le de*elopment, corporate social
responsi"ility +C1R, awards 7or E'4-'% Unleashes 1a7ariEs petrol *ersion# priced at Rs
(&J lakh
The year %''&- Tata Un*eils CityRo*er Tata Motors 0td si)ned a "indin)
Memorand!m o7 Understandin) +MoU, with Deawoo Commercial <ehicle Company
0td +D=C<, Korea 7or the ac.!isition o7 this company It introd!ces Tata 15C B'2
T!r"o 0i)ht Commercial <ehicle +0C<, The Company chan)ed 7rom ET0CO E
to ETATAMOTOR1E we7 Decem"er %B %''& In the same year Tata 1a7ari ranks No
4 in MU<1U< se)ment
%''BF- The year o7 )lory Tata Motors la!nch an !p)raded *ersion Indica on /an!ary
4J %''B in a "id to shore !p sales o7 the small car
A!to >poF Tata !n*eils new *ersion o7 Indica Tata Motors !n*eils Indica <% Tata
Motors la!nches new Indica <% in Kerala Tata Motors introd!ces new EIndica"E 7or
to!r operators The m!ch hyped Rs one lakh passen)er car pro;ect o7 Tata Motors was
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)oin) ahead as planned Tata Motors enters a)reement with Ukraine "!s "!ildin)
7irm Tata Motors enters into a)reement with talon In a mo*e to consolidate its
presence in the li)ht commercial *ehicles se)ment Tata Motors has la!nched a new
*ariant o7 its B'2 series with increased pay load capacity called 15C B'2 Tata
Motors "!ys Daewoo tr!ck !nit 7or Rs BHJ crore Tata Motors !n*eils Tata 15C B'2
Tata Motors inks a)reement with A!strian 5rench companies Ac.!ires Daewoo
Commercial <ehicle Company 0td +D=C<, Korea Tata Motors la!nches most
anticipated new H-tn tr!ck in India
Tata Motors the co!ntryEs lar)est commercial *ehicles man!7act!rer !n*eiled the new
09T ('( T!r"o Tr!ck in Tamil Nad! Tata Motors and Tata A7rica !n*eiled a
ran)e o7 passen)er cars !tility *ehicles pick-!ps tr!cks and "!ses 7or the 1o!th
A7rican market Tata Motors has la!nched a 7ace li7ted *ersion o7 its m!lti!tility
*ehicle Tata 1!mo Tata mototrs rolls o!t Tata 15C B'2 :1 II t!r"o li)ht
commercial *ehicle
Tata Motors !n*eils Tata 1a7ari DICOR in Kerala market on A!)!st 44 %''J Tata
Motors rolls o!t % l!>!ry *ariants o7 Indi)o Tata Motors !n*eiled new Indica <%
T!r"o with a price ta) o7 Rs B4' lakh 7or D0 *ariant and Rs B&4 lakh 7or D0
Tata Motors ropes in C<Tech to make parts 7or its small car Tata Daewoo inks pact
with 9akistan co
Tata Motors has "een presented the olden 9eacock lo"al Award 7or Corporate
1ocial Responsi"ility +C1R, in the 0ar)e :!siness cate)ory "y the Instit!te o7
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Directors in %''2 Tata Motors "!ys Nissan 7acility in 1 A7rica Tata Motors has )ot
a presti)io!s order 7rom the Delhi Transport Corporation +DTC, 7or J'' non-AC
CN-propelled "!ses Tata Motors 0td has appointed Mr 9 M Telan) as >ec!ti*e
Director +Commercial <ehicles,
%,C!rrent 1cenario
9R5ORMANC O5 COM9AN? DURIN %''3-'(
Company 9er7ormance in Domestic C< 1e)ment
QB 5?'3- QB 5?'2- Chan)e
'(
M@C<s
0C<s
42(24
&4J2J
'3
B&33%
&3H3H
3%JH3
+J(',
+43B,
+B'',
5?'3-'(
3H2'B
4'3B33
4(J4(%
5?'2-'3
44%BB'
4'%32&
%4J&4&
chan)e
+%%(,
JJ
+(&,Total C<s B(JBH
Impacted "y se*ere li.!idity cr!nch and slowin) economy C< domestic sales
*ol!mes decreased "y B' y-o-y to B(JBH !nits in QB5?%''3-'( as compared to
3%JH3 !nits in QB5?%''2-'3
C< market share increased "y B%' "asis point at H2' 7or the .!arter# 7rom H%3 in
QB5?%''2-'3
4(
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C< ind!stry re)istered a s!"stantial *ol!me decline o7 B&( d!rin) QB5?%''3-'(
In a challen)in) en*ironment o7 non-a*aila"ility o7 *ehicle 7inancin) hi)h interest
rates and lower ind!strial )rowth and contraction o7 7rei)ht tra77ic M@C< market
recorded a decline o7 H4& y-o-y d!rin) the .!arter and 0C<$s declined "y %B&
Tr!ck market recorded a decline in sales in QB5?%''3-'( o*er correspondin) period
o7 last year The ind!stry *ol!mes in the M@C< tr!ck se)ment declined "y HJ% y-
o-y while ind!stry *ol!mes in the 0C< tr!ck se)ment declined "y &42 y-o-y
d!rin) QB5?%''3-'(
TM0$s *ol!me in M@C< tr!ck market declined "y H%3 d!rin) the .!arter +Oct-
Dec$'3, compared to the correspondin) period in the pre*io!s year @owe*er TM0$s
market share in the M@C< tr!ck market increased 7rom HJH in QB 5?%''2-'3 to
H(( QB 5?%''3-'(
TM0 per7ormance in M@C< "!s market saw a decline o7 4(' in Q&5?'(#
howe*er on the other hand 0C< "!s market saw )rowth o7 BB( in Q&5?'(
compared to correspondin) period last year dri*en "y the s!ccess o7 AC Ma)ic and
=in)er Tata Motors$ market share increased s!"stantially 7rom H3J in QB5?%''2-
'3 to 3H& in QB5?%''3-'( in 0C< passen)er carrier se)ment
D!rin) an e>tremely challen)in) .!arter Tata Motors has impro*ed its market share
position across e*ery C< cate)ory on the "ack o7 its prod!ct network stren)th as well
as the 7inancin) s!pport o7 TM5 and Tata Capital
%'
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o*ernment$s 7iscal stim!l!s packa)e R:I$s easy monetary policy and the diesel
price red!ction are e>pected to moderately help demand )eneration
9assen)er <ehicle 1e)ment
QB5?%''3-
'(
1mall Car
ntry
Mid-si6e
Car
U<
5iat
Total 9<
H4&3
4'44
B%432
44%H(
H%H
B(%3B
-BJJ
H4J
-4BB
%23%4
&B'B
4B%J'2
&'(H2
%&&(
4J&B2J
-4'%
BJJ
-24
%J%2&
(2HJ
QB5?%''2-
'3
&4HB&
J2BH
-%'4
H((
2B3%(
&HBJ&
4''44'
%''J(
-%J&
342
Chan)e 5?%''3-'(
5?%''2-'3
chan)e
9assen)er <ehicle Market 1hares +India,
QB 5?%''3-'(
1mall Car
ntry-le*el
Mid-si6e Car
U<
Total 9<
4J3
4&%
43H
4%(
42&
4&%
43%
4&(
4%H
%(H
QB 5?%''2-'3
4&H
%((
5?%''3-'(
443
&B&
5?%''2-'3
4J%
&'B
Domestic passen)er *ehicle sales stood at B%432 +incl!din) 4'44 5iat *ehicles,
d!rin) QB5?%''3-'(# down "y 4BB y-o-y Market share o7 Tata Motors *ehicles
stood at 4%( in QB5?%''3-'( The passen)er *ehicle ind!stry re)istered a *ol!me
decline o7 4HJ d!rin) QB5?%''3-'( primarily d!e to !na*aila"ility o7 7inance
and hi)h interest rates and hi)h 7!el prices Utility *ehicle se)ment declined the most
"y &J3 Impacted "y the ad-hoc d!ty imposed on this se)ment in /!ly In this
%4
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scenario the Company tried to arrest the decline thro!)h new prod!cts and increased
s!pport o7 the capti*e 7inancin) entity In 9assen)er *ehicle ind!stry Tata Motors$
+incl!din) 5IAT, market share increased
7rom 4%( in QB 5?%''2-'3 to 4&% in QB5?%''3-'( In the 1mall car se)ment
7ollowin) the s!ccess7!l la!nch o7 Indica <ista in A!)!st 5?%''3-'( and increasin)
sales o7 5IAT *ehicles Tata Motors$ +incl!din) 5IAT, market share impro*ed 7rom
44B in @4 5?%''3-'( to 4%H in Q& @owe*er TM0 )rowth in this se)ment was
limited "y the ramp !p capa"ility o7 prod!ction The entry-mid si6e car se)ment
contin!ed to clock a healthy )rowth TM0 maintained its stron) market position d!e
to contin!ed positi*e response to Indi)o C1 and TATA INDICA <I1TA
In the Utility <ehicle se)ment Tata Motors market share declined 7rom 43H in
QB5?%''2-'3 to 4J3 in QB5?%''3-'( d!e to competiti*e press!res 5iat *ol!mes
7or 5?%''3-'( were &B'B a )rowth o7 a"o!t BJJ Com"ined Tata-5iat market
share in the o*erall 9< ind!stry stood at 4&% 7or the nine month period Apr-
Dec$'3 Tata Motors cele"rated the 4'th anni*ersary o7 the la!nch o7 the Indica on
Decem"er &' %''3 To mark this milestone a 4'th Anni*ersary 0imited dition
Indica <ista was la!nched
%%
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9orterEs 7i*e 7orces analysis is a 7ramework 7or the ind!stry analysis and "!siness
strate)y It !ses concepts de*eloped in Ind!strial Or)ani6ation economics to deri*e
7i*e 7orces which determine the competiti*e intensity and there7ore attracti*eness o7 a
market
The 5i*e 5orcesF
4The threat o7 s!"stit!te prod!cts-As we know the Indian c!stomers
choices ran)e 7rom milea)e pick-!p power steerin) to *ario!s other thin)s
so s!"stit!te is *ery important aspect in this ind!stry as other prod!ct
a*aila"le in the market may act as the s!"stit!te to the "rands own e>istin)
prod!ct
%The threat o7 tJhe entry o7 new competitors-New completion 7rom the
new entrant or 7rom e>istin) company is also hi)hly potent 7orce which a
company m!st ha*e to take care o7 7or its market share and )rowth
&The intensity o7 competiti*e ri*alry-The *ery e77ecti*e way o7 p!ttin)
competitor o!t o7 track is pitchin) new *i"rant prod!cts in the market so a
company m!st "e aware o7 this tactics "y its ri*al company so that it can
cater the e77ect
BThe "ar)ainin) power o7 c!stomers-Another important aspect 7or a car or
%&
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a!to company where they ha*e to mana)e the pricin) control o7 their
prod!ct to sp!rt the sales in the market
JThe "ar)ainin) power o7 s!ppliers- The distri"!tion channel is *ery
important in co!ntry like India where the demand is hi)hly di77erent with
all across its dimension so s!pply is *ery m!ch re.!ired in the ind!stry 7or
a company
%B
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B, Or)ani6ation 1tr!ct!re
The :oardF No separate o77ice is maintained 7or the Non->ec!ti*e Chairman :ein) the ro!p
Chairman the Company does not reim"!rse e>penses inc!rred "y the Non->ec!ti*e Chairman 7or
maintenance o7 a separate Chairman$s o77ice
No speci7ic ten!re has "een speci7ied 7or the Independent Directors Mr 1etna and Mr 1 A Naik
Independent directors ha*e ten!res in the a))re)ate e>ceedin) a period o7 nine years
%J
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Rem!neration CommitteeF Details are )i*en !nder the headin) Rem!neration Committee$
1hareholder Ri)htsF A hal7 yearly declaration o7 7inancial per7ormance incl!din) s!mmary o7
si)ni7icant e*ents in the last si> months is sent to all the shareholders The 5inancial Res!lts are also
p!t !p on the Company$s we"site "esides "ein) a*aila"le on the 1:I$s we"site wwwse"iedi7arnic
A!dit Q!ali7icationsF D!rin) the year !nder re*iew there was no a!dit .!ali7ication in the
Company$s 7inancial statements The Company contin!es to adopt "est practices to ens!re a re)ime
o7 !n.!ali7ied 7inancial statements
Trainin) o7 :oard Mem"ersF The Directors interact with the mana)ement in a *ery 7ree and open
manner on in7ormation that may "e re.!ired "y them on orientation and 7actory *isits The
independent Directors are enco!ra)ed to attend trainin) pro)rammes that may "e o7 rele*ance and
interest to the Directors in dischar)in) their responsi"ilities to the Company$s stakeholders !nder the
emer)in) "!siness en*ironment
Mechanism 7or e*al!ation o7 non-e>ec!ti*e :oard mem"ersF The per7ormance e*al!ation o7
non-e>ec!ti*e mem"ers is done "y the :oard ann!ally "ased on criteria o7 attendance and
contri"!tions at :oard Committee Meetin)s as also role played contri"!tions other than at
Meetin)s
=histle :lower MechanismF The A!dit Committee had at its Meetin) held on A!)!st ( %''B
7ramed a =histle-:lower 9olicy and the same was re*iewed and amended "y the A!dit Committee
on /an!ary 4(%''( The 9olicy pro*ides a 7ormal mechanism 7or all employees o7 the Company to
approach the Mana)ement o7 the Company +A!dit Committee in case where the concern in*ol*es
the 1enior Mana)ement, and make protecti*e disclos!res to the Mana)ement a"o!t !nethical
"eha*io!r act!al or s!spected 7ra!d or *iolation o7 the Company$s Code o7 Cond!ct or ethics
policy The =histle :lower 9olicy is an e>tension o7 the Tata Code o7 Cond!ct which re.!ires
e*ery employee to promptly report to the Mana)ement any act!al or possi"le *iolation o7 the Code
or an e*ent he "ecomes aware o7 that co!ld a77ect the "!siness or rep!tation o7 the Company
%H
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T@ COD O5 CONDUCT 5OR T@ DIRCTOR1 IN TATA MOTOR1
The Company e>pects all Directors to e>ercise )ood ;!d)ment to ens!re the interests sa7ety and
wel7are o7 c!stomers employees and other stakeholders and to maintain a cooperati*e e77icient
positi*e harmonio!s and prod!cti*e work en*ironment and "!siness or)ani6ation The Directors
while dischar)in) d!ties o7 their o77ice m!st act honestly and with d!e dili)ence They are e>pected
to act with that amo!nt o7 !tmost care and pr!dence which an ordinary person is e>pected to take in
hisher own "!siness These standards need to "e applied while workin) in the premises o7 the
Company at o77site locations where the "!siness is "ein) cond!cted whether in India or a"road at
Company-sponsored "!siness and social e*ents or at any other place where they act as
representati*es o7 the Company
A adherence to the hi)hest standards o7 honest and ethical cond!ct incl!din) proper and ethical
proced!res in dealin) with act!al or apparent con7licts o7 interest "etween personal and pro7essional
relationships
: 7!ll 7air acc!rate timely and meanin)7!l disclos!res in the periodic reports re.!ired to "e 7iled
"y the Company with )o*ernment and re)!latory a)encies
C Compliance with applica"le laws r!les and re)!lations
D To address mis!se or misapplication o7 the CompanyEs assets and reso!rces
The hi)hest le*el o7 con7identiality and 7air dealin) within and o!tside the Company
%2
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COR9ORAT O<RNANC O5 TATA =IT@ CRTAIN RU01F-
In TATA the corporate )o*ernance is mana)ed *ery well with certain r!les which are )i*en "elow
and there are some people assi)ned to address the iss!e so o*erall the corporate )o*ernance in
TATA is in *ery so!nd position as their disclos!res d!rin) ann!al report or .!arterly report and *ery
clear to the share-holders and in*estors also pro*ided their codes o7 ethics are also *ery stron)
4 Any employee"!siness associate who "ecomes aware o7 a s!spected wron)7!l cond!ct is
enco!ra)ed to send hisher o"ser*ationsconcrete 7acts to the Direct To!ch Team either thro!)h
phone or written comm!nication complete with related e*idence +to the e>tent possi"le, witho!t 7ear
o7 reprisal or retaliation o7 any kind
% The in7ormation on s!spected wron)7!l cond!ct is s!ch in7ormation which the
mployees"!siness associates in )ood 7aith "elie*e e*idencesF
a A *iolation o7 any law or re)!lation incl!din) "!t not limited to corr!ption
"ri"ery the7t 7ra!d coercion and will7!l omission
" 9ass "ack o7 Commissions"ene7its or con7lict o7 interest
c 9roc!rement 7ra!ds
d Mismana)ement ross wasta)e or misappropriation o7 company 7!ndsassets
e Manip!lation o7 Company datarecords
7 1tealin) cashcompany assets# leakin) con7idential or proprietary in7ormation
) Uno77icial !se o7 Company$s materialh!man assets
h Acti*ities *iolatin) Company policies incl!din) Code o7 thics and Cond!ct
i A s!"stantial and speci7ic dan)er to p!"lic health and sa7ety
; An a"!se o7 a!thority
k An act o7 discrimination or se>!al harassmen
%3
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T@ COD O5 T@IC1 IN TATA MOTOR1
Commitment to ethical pro7essional cond!ct is a MU1T 7or e*ery employee at TATA- in all o7 its
"!sinesses !nits s!"sidiaries The code is intended to ser*e as a "asis 7or ethical decision-makin) in
the cond!ct o7 pro7essional work
Contri"!te to society and h!man well-"ein)
This principle concernin) the .!ality o7 li7e o7 all people a77irms an o"li)ation to protect
7!ndamental h!man ri)hts and to respect the di*ersity o7 all c!lt!res 1o employee in TATA
attempts to ens!re that the prod!cts o7 their e77orts will "e !sed in socially responsi"le ways will
meet social needs and will a*oid harm7!l e77ects to health and wel7are o7 others
In addition to a sa7e social en*ironment h!man well-"ein) incl!des a sa7e nat!ral en*ironment
There7ore all who are acco!nta"le 7or the desi)n de*elopment man!7act!re and promotion o7
TATA prod!cts m!st "e alert to and make others aware o7 any potential dama)e to the local or
)lo"al en*ironment
A*oid harm to others
@arm means in;!ry or ne)ati*e conse.!ences s!ch as loss o7 property property dama)e or
!nwanted health and en*ironmental impacts This principle prohi"its !se o7 men material and
technolo)y in ways that res!lt in harm to o!r cons!mers employees and the )eneral p!"lic
=ell-intended actions incl!din) those that accomplish assi)ned d!ties may lead to harm
!ne>pectedly In s!ch an e*ent the responsi"le person or persons are o"li)ated to !ndo or miti)ate
the ne)ati*e conse.!ences as m!ch as possi"le
%(
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:e honest and tr!stworthyF
@onesty is an essential component o7 tr!st =itho!t tr!st an or)ani6ation cannot 7!nction e77ecti*ely
1o they are e>pected not to make deli"erately 7alse or decepti*e claims a"o!t their prod!cts
systems "!t instead pro*ide 7!ll disclos!re o7 all pertinent limitations and pro"lems
:e 7air and take action not to discriminate
The *al!es o7 e.!ality tolerance respect 7or others and the principles o7 e.!al ;!stice )o*ern this
imperati*e Discrimination on the "asis o7 race se> reli)ion a)e disa"ility national ori)in or other
s!ch 7actors is an e>plicit *iolation o7 this code
9ractice inte)rity in o!r inter-personal relationships
In their relationships with collea)!es all sho!ld treat them with respect and in )ood 7aith# in the
same way we o!rsel*es wo!ld e>pect them to treat !s The principle to "e adopted to )!ard a)ainst
loose talk or in its worst 7orm- character assassination- is not to say anythin) "ehind one$s "ack and
ne*er !tter somethin) which cannot "e p!t in writin)
@onor con7identiality
The principle o7 honesty e>tends to iss!es o7 con7identiality o7 in7ormation The ethical concern is to
respect all o"li)ations o7 con7identiality to all stakeholders !nless dischar)ed 7rom s!ch o"li)ations
"y re.!irements o7 the law or other principles o7 this code
19CI5IC 9RO511TIONA0 R19ON1I:I0IT?
Ownership
This is o!r company =e accept personal responsi"ility and acco!nta"ility to meet "!siness needs
9assion 7or winnin)
&'
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=e all are leaders in o!r area o7 responsi"ility with a deep commitment to deli*er res!lts =e are
determined to "e the "est at doin) what matters most
9eople de*elopment
9eople are o!r most important asset =e add *al!e thro!)h res!lt dri*en trainin) and we enco!ra)e
8 reward e>cellence
Cons!mer 7oc!s
=e ha*e s!perior !nderstandin) o7 cons!mer needs and de*elop prod!cts to 7!l7ill them "etter
Teamwork
=e work to)ether on the principle o7 m!t!al tr!st and transparency in a "o!ndary less or)ani6ation
=e are intellect!ally honest in ad*ocatin) proposals incl!din) reco)ni6in) risks
Inno*ation
Contin!o!s inno*ation in prod!cts and processes is the "asis o7 o!r s!ccess
Inte)rity
=e are committed to the achie*ement o7 "!siness s!ccess with inte)rity =e are honest with
cons!mers with "!siness partners and with each
C, 0atest A!ditors Report
Ann!alres!ltsindetails
Mar E '( Mar E '2
Other income
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Raw material
9ower and 7!el
mployee e>penses
>cise
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Research and de*elopmente>penses
>penses capitalised
Other e>penses
(%J(2
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9ro*isions made
Depreciation
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Net pro7it loss
>tra ordinary item
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Mar E '( Mar E '3 Mar E '2 Mar E 'H Mar E 'J4''4%H %'%3(% 4(4&BH 4J%333 4%&H(J
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Ad;!sted 91 +Rs,
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T@ 5INANCIA0 ANANA0?1I1 O5 TATA MOTOR1
In the Octo"er-Decem"er .!arter o7 the 5inancial ?ear %''3-'( the a!tomoti*e sector
in India s!77ered se*ere contraction in demand arisin) 7rom ma;or 7inancial and other
market !phea*als This e>acer"ated the lack o7 li.!idity and !na*aila"ility o7
cons!mer 7inance This alon) with contraction in 7rei)ht mo*ement in many
se)ments o7 the ind!stry led to a massi*e drop in the M8@C< se)ment demand
@i)h interest rates and peak commodity prices also a77ected the ind!stry and the
s!pply chain The o*erall C< ind!stry declined "y B&( while TM0$s Commercial
*ehicle "!siness declined "y B'' s!pported "y a di*ersi7ied prod!ct port7olio
Conse.!ently Tata Motors )ained s!"stantial market share "oth in M@C< and 0C<
se)ments =hile the passen)er *ehicle ind!stry declined "y 4HJ a77ected "y hi)h
interest rate and restricted credit a*aila"ility TM0$s 9assen)er *ehicle "!siness
declined "y a lower 4BB The rate o7 decline was arrested d!e to enco!ra)in)
response to new prod!cts introd!ced S Indi)o C1 and Indica <ista oin) ahead
rampin) !p o7 the capacity o7 Indica <ista wo!ld help the company to arrest decline
in small car market share The e>port *ol!mes o7 the Company re)istered a decline o7
BB( d!rin) 5?'( d!e to )lo"al economic slowdown and credit cr!nch especially
in prime markets which witnessed ad*erse impact on a!tomoti*e demand
Tata Motors cele"rated the 4'th anni*ersary o7 the la!nch o7 the Indica on Decem"er
&' %''3 To mark this milestone a 4'th Anni*ersary 0imited dition Indica <ista
&B
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was la!nched In the 7irst decade close to (B'''' Indicas had "een prod!ced and the
plat7orm has spawned o77 close to 4% million *ehicles The Indica has remained a
"estseller thro!)ho!t in the ind!stry 7i)!rin) in the top & sellin) list o7 cars 7or most
o7 the years It achie*ed a peak sale o7 4BBH(' in %''H-'2 and the new )eneration
Indica <ista was la!nched in A!)!st this year to a contin!in) p!ll e*en in today$s
depressed market conditions
&J
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&, 1=OT ANA0?1I11TRNT@F
41tron) 9resence in the MarketplaceF-Tata Motors is the only company in India with
a "road"ased presence across the ind!stry in all se)ments o7 the commercial *ehicles market S
hea*y and medi!m commercial *ehicles li)ht commercial *ehicles pick-!ps s!" one-tonne
mini-tr!cks - and key se)ments - compact midsi6e car and !tility *ehicle se)ments - o7 the
passen)er *ehicles market
%Uni.!e Understandin) o7 C!stomer NeedF- =ith J' years$ presence in the a!tomoti*e
"!sinessTata Motors !nderstands c!stomer needs and de*elops prod!cts that meet their needsTo
consider a 7ew e>amples as early as 4(3's the company la!nched 0i)ht Commercial <ehicles
amidst /apanese competition in which it today stron)ly leads In the 4(('s anticipatin) the need 7or
an a77orda"le 7amily car it la!nched the now 7amo!s Tata Indica which occ!pies a leadin) position
amon) compact cars
&1kill :ase De*eloped O*er the 0ast B' ?earsF-Tata Motors is also *ery well-placed on
technolo)y capa"ilityThe company had set !p its n)ineerin) Research Centre as early as
4(HH=ith 4B'' scientists and en)ineers and state-o7-the-art de*elopment testin) and *alidation
7acilities it is this technolo)y capa"ility which has allowed Tata Motors o*er the decades to o77er
indi)eno!slyde*eloped prod!ctsThis stren)th has "een accent!ated with the incl!sion o7
TMTCTDC< and @ispano Carrocera in the R8D network "esides se*eral other specialist
e>ternal a)enciesThe company no lon)er needs to de*elop e*ery necessity itsel7Today it ;!st has to
&H
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mana)e the process o7 prod!ct creation drawin) !pon already a*aila"le R8D and skills 7rom
di77erent so!rces
B9eople 1tren)thF- The company$s key stren)th is its peopleThe o*er
%%''' employees comprise a *ery "road talent "ase with the re.!ired skills in e*ery aspect o7 the
ind!stry=ith increasin) international initiati*es "y the company this talent "ase is now )ettin)
enriched with the necessary competencies to respond to meet world-class standards o7
.!ality and cost The company will achie*e this "y de*elopin) and marketin) rele*ant prod!cts
on its e>istin) plat7orms and new ones which deli)ht cons!mers in e*ery market they are
introd!ced in
JTata Motors$ linka)es in !rope thro!)h 1!"sidiary CompaniesF- In Octo"er %''JTata
Technolo)ies 0td a 4'' per cent s!"sidiary o7 Tata Motors ac.!ired a (B& per cent stake in INCAT
International 0imited INCAT is a s!pplier o7 en)ineerin) 8 desi)n
prod!ct li7ecycle mana)ement and prod!ct-centric IT ser*ices to the a!tomoti*e aerospace and
d!ra"le )oods ind!stries
HTata Motors R8D in !ropeF- Deepenin) its en)a)ement with the !ropean
R8D space in 1eptem"er %''JTata Motors set !p the Tata Motors !ropean Technical Centre
a 4'' per cent s!"sidiary in the UK It is en)a)ed in desi)n en)ineerin) and de*elopment
o7 prod!cts 7or the a!tomoti*e ind!stry=orkin) syner)isticallyTMTC pro*ides the company with
desi)n en)ineerin) s!pport and de*elopment ser*ices complementin) and stren)thenin) the
company$s skill sets and pro*idin) !ropean standards o7 deli*ery to the company$s passen)er
*ehicles
2 n)ineerin)F-The Tata )ro!p has a ro"!st presence in en)ineerin) with operations in
a!tomo"iles and a!to components and a *ariety o7 other en)ineerin) prod!cts and ser*ices
3MaterialsF- The Tata )ro!p is amon) the )lo"al leaders in this "!siness sector with operations in
steel and composites
&2
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(1er*icesF The Tata )ro!p has widespread interests in the hospitality "!siness as also in ins!rance
realty and 7inancial and other ser*ices
4' ner)yF The Tata )ro!p is a si)ni7icant player in power )eneration and is also in*ol*ed in the oil
and )as se)ment
44ChemicalsF The Tata )ro!p is one o7 the lar)est prod!cers o7 soda ash in the world Additionally
it has interests in 7ertilisers and in the pharmace!ticals "!siness
O99URTUNITI1F
4 India$s h!)e )eo)raphic spread-This is one aspect where the company is lookin) 7or and its
di*ersi7ied ran)e o7 cars s!its *ery m!ch this area o7 car or say a!to ind!stry in co!ntry
% asier 7inance schemes- The c!rrent 7iscal stim!l!s and easy loan will s!rely )!ide the
company to post )ood sales as the c!rrent trend shows the cars sales has "een "oosted "y
easy loan norms in the co!ntry
& Replacement o7 a)in) 7o!r wheelers-One o7 *ery important reason where the car ind!stry
and commercial *ehicle can take ad*anta)e in comin) days
B Increasin) Road De*elopment olden Q!adrilateral-as we all know the in7rastr!ct!re
will s!rely "oost the a!to ind!stry as it is directly related to the this ind!stry and the
)o*ernment policy in spendin) the money ion in7rastr!ct!re will create )ood demand
J Increasin) dispensa"le income o7 r!ral a)ri sector-1ome how this year the r!ral demand
was *ery enth!siastic than the !r"an market which dri*e the a!to ind!stry so the
de*elopment o7 r!ral in7rastr!ct!re and condition will create handsome demand 7rom the
r!ral area
H @i)her D9 )rowth-=ith standin) tall d!rin) the slowdown o!r economy has shown the
ind!stry that demands will )ain moment!m in near 7!t!re *ery soon
&3
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2 Increasin) disposa"le income with the ser*ice sector-As the cons!mers ha*e money in
their hand de7initely there will "e demand 7rom their side so this is also *ery )ood
opport!nity 7or this sector
3 rad!atin) 7rom Two wheeler to 5o!r wheeler-The dream o7 “NANO” will "oost demand
7or 7o!r wheeler in the a!to ind!stry
T@RATF
4 Indian is lackin) in proper in7rastr!ct!re this is slowin) the pace o7 )rowth o7 a!to ind!stry
% lo"al crisis- this really h!rts the Indian )rowin) ind!stry and not only the a!to "!t tyre
ind!stry went 7or toss
& @i)h competition 7rom 7orei)n players-As the )iants like M A!di MRC etc are tryin)
to capt!re the hi)h se)ment market it is one o7 the *ery e77ecti*e threat to the company
=AKN11F
4The c!rrent 7inancial sit!ation o7 its recently ac.!ired 7irms like “Cor!s” and “0and
Ro*er-/a)!ar” is *ery "i) headache 7or the company and it sho!ld "e "ack to the track in
the near 7!t!re
% The hi)h ratio o7 de"t e.!ity ratio is also weakness o7 the company
& The small car se)ment is still not )ood 7or the company d!e to “mar!ti-s!6!ki” so it need
to tap this section also
BThe C< se)ment is "ecomin) hi)hly competiti*e "y new player like <ol*oand ri*al M
8M are comin) with new prod!cts to cater the TATA in the market as the r!ral area has
)i*en th!mps !p to M8M d!rin) this year
&(
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B, 0ARNIN 9RINC
The trainin) has helped me a lot in !nderstandin) the realities o7 the o!tsideworld I also came to know the real meanin) o7 the word marketin) There are "oth positi*eand ne)ati*e e>periences o7 the trainin) some o7 which are F
Real e>perience o7 the corporate world which helped me a lot in !nderstandin) how
really a corporate world 7!nctions
0earned how to deal with the c!stomers
It helped me in impro*in) my comm!nication skill presentation skill and how to
"eha*e in 7ront o7 corporate e>ec!ti*es
I can relate the theories which I learned in colle)e with practical e>perience
0earnin) di77erent thin)s like how to coordinate with team mem"ers and
mana)ement
0earnin) many thin)s re)ardin) marketin) strate)ies
0earnin) how to maintain "alance in personal and pro7essional li7e
B'
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9RO:0M AND R1ARC@ MT@ODO0O?
1TATMNT O5 T@ 9RO:0M
In the e*ent o7 a company does not adopt a 7air meas!re o7 the potential market It will
ha*e a direct impact on the sales o7 the prod!ct and the company may ha*e to pay
hea*y price in maintenance o7 the "!siness I7 the critical markets are not accorded
ade.!ate attention it may "e the determinant o7 an !ns!ccess7!l prod!ct
9UR9O1 O5 T@I1 R1ARC@ IN TO “ 1TUD? O5 :U?IN :@A<IOUR O5
CU1TOMR1 5OR TATA INDICA <I1TA”
O:/CTI<F The o";ecti*e is to st!dy those 7actors which can accelerate themarketa"ility o7 the TATA <I1TA compared to its competitors
To !nderstand the market potentiality 7or <I1TA
To determine the accepta"le price o7 the prod!ct
To determine the re.!irements and needs o7 the potential c!stomers
1TUD? 9O9U0ATIONF
1ample si6e- &'
ARA CON1IDRD 5OR T@I1 1TUD? ARF
A!tomo"ile history
Ind!stry in*estment
Ind!stry )rowth
<ehicle prod!ction
A!to e>port
A!to companies
B4
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0IMITATION1 O5 T@ 1TUD?
1t!dy is restricted to Allaha"ad and naini ind!strial areas only
Contin!o!s and relia"le in7ormation was not a*aila"le
1ome o7 the in7ormation was con7idential so m!ch in7ormation was not
re*ealed
The time span o7 the s!r*ey was short and hence only ma;or aspects were
considered
In7ormation pro*ided "y the respondent in terms o7 their 7!el !sa)e and their
e>pense co!ld not "e *ery acc!rate
A*aila"ility o7 the respondents amidst their "!sy sched!le did not permit
detailed st!dy
MT@ODO0O? O5 T@ 1TUD?
Method o7 AnalysisF
An analytical research was carried o!t to )ain insi)ht and proper !nderstandin) o7 the
market This was done thro!)h the .!estionnaire and personal interaction with the
B%
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mana)ers and s!per*isors o7 ind!stries This was 7ollowed "y comparati*e st!dy
analysis 1e*eral )raph and ta"les were prepared 7or "etter analysis o7 the market
Research Instr!mentsF
The research was "ased on the collection o7 primary data 1ince prod!ct is new to the
Allaha"ad market secondary data is not ad*ised
9rimary DataF
9rimary data was collected thro!)h a str!ct!red .!estionnaire
9ersonal interaction with the company mana)ers and s!per*isors
Interaction with ind!stry e>perts in Allaha"ad
B&
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JAnalysis o7 data
a, 1ale accordin) to s!r*ey
<I1TA AQUA<I1TA AURA<I1TA TRRAOT@R1
(3H2&'
&' %HH2 %' %&&& 4''
TOTA0
", 1ample o7 &' c!stomers accordin) to their income
1alary
4lakh
4lakh-&lakh
&-lakh-Jlakh
Jlakh
No o7 people
J
42
H
%
BB
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c, Car c!stomers
No o7 people
5irst time !ser
More than once
4&
42
BJ
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d, c!stomer satis7acton 7rom tata cars
C!stomer
satis7action
1atis7ied
Not satis7ied
44
4(
No o7 people
BH
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e, Tele media creates a "rand appeal
T< ads appeal
?es
No
No o7 people
2
%&
B2
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7, Tata 9assen)er Cars Creatin) "rand *al!e
:rand *al!e
?es
No
NO O5 9O90
4J
J
B3
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), 5actors a77ectin) "!yin) o7 c!stomers
5eat!res
9ower steerin)
Milea)e
9rice
Others
No o7 people
B
(
4J
%
B(
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H, 5INDIN1 8 1U11TION1
5INDIN1
4, TATA MOTOR1 is n!m"er three in passen)er car market a7ter mar!ti-s!6!ki 8 hy!ndai
4, Ma;ority o7 the c!stomers see TATA MOTOR1 with sa*in)s
%, Most o7 the c!stomers spend lar)e s!m o7 money
&, O!t o7 the samples people are hi)hly con*inced that TATA MOTOR1 will
yield them "etter res!lts
B, As the sales o7 Mar!ti )rows as well as @!ndai$s santro is still doin) well in
mid si6e and small si6e se)ment so the INDICA <I1TA may "e a )ood options
7or the company in this term 7or s!stainin) sales in lon) r!n as well as in the
c!rrent sit!ations
J, 9rod!ct will ha*e a )rad!al pro)ress :eca!se most ind!stries wo!ld wait 7or
the response a"o!t the prod!ct 7rom other Company
H, C!stomers were ed!cated "y me a"o!t 7!el e77icient cars "y TATA MOTOR1
J'
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1U1TION1
:ased on the 7indin)s 7rom the analysis the 7ollowin) s!))estions co!ld "e madeF
Demo o7 the prod!ct sho!ld "e made a*aila"le to C!stomers since most o7 the
p!rchase decisions are "ased on it
Technical details sho!ld "e made a*aila"le to the c!stomers in the most
acc!rate n!merical 7orm
The Indica has remained a "estseller thro!)ho!t in the ind!stry 7i)!rin) in the
top & sellin) list o7 cars 7or most o7 the years
The distri"!tion channel sho!ld "e more e77icient to cater the demand d!rin)
peak seasons like d!rin) dassraa diwali etc
The city like Allaha"ad is mostly dominated "y the workin) class like people
employed in hi)h co!rt A o77ice+ acco!ntant )eneral o77ice, and )o*ernment school
employees who this year are )ettin) more pay d!e to the recommendations made "y
the si>th pay commission so the sales 7or mid si6e car can "e enhanced in this
scenario
J4
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2, CONC0U1ION
The st!dy was cond!cted to meas!re” T@ CU1TOMR :@A<IOR in p!rchasin)
INDICA <I1TA The st!dy was cond!cted on &' C!stomers A .!estionnaire was
desi)ned to !nderstand the market and create awareness a"o!t TATA MOTOR1
:ased on the .!estionnaire data was collected and analy6ed and it was 7o!nd that the
c!stomers are willin) to "!y the Cars @owe*er they are also skeptic a"o!t it
1!))estions are pro*ided "ased on c!stomer re.!irements and market sit!ation An
earnest attempt has "een made to make the st!dy realistic and s!))esti*e "!t it is not
claimed that the 7indin)s and s!))estions in the report are per7ect
J%
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3, ANNUR
QU1TIONNAIR
4 =@AT I1 ?OUR 1A0AR?V 4 0AC4 0AK@ -& 0AK@ &0AK@-J0AK@ J0AK@
% =@IC@ <@IC0 DO ?OU O=NV WWWWWWWWWWWWWWWWWWWWWWWWWW & DID ?OU RID 1OM OT@R <@IC0 :5OR T@I1V ?1NO
B =@AT I1 ?OUR 9RINC 5ROM T@ 9R<OIU1 <@IC0V 1ATI15ID NOT 1ATI15ID
J =@IC@ I1 T@ MO1T 11NTIA0 T@IN ?OU 9R5R =@I0 :?IN <@IC0V 9RIC MI0A9O=R 1TRINOT@R1
H DO1 T< AD A99A0 ?OUV ?1NO
2 DO ?OU 0IK T< 9RORAMM1 ON CARV ?1NO
3 DO1 :RAND <A0U A55CT ?OUR DCI1ION ON :U?IN
(, :I:0IORA9@?
:OOK1F G KOT0R 9@I0I9 AND ARM1TRON AR? MARKTIN MANAMNT G MARKTIN R1ARC@ "y R Nanda)opal 8 K Ar!l Ra;an
MAAPIN1F G MON? TODA? G :U11IN11 =OR0D G OUT0OOK 9RO5IT G INDIA TODA?
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