PROJECT REPORT ON (BBA-312)

ON

Undertaken at

“SUCCESS STORY OF TATA MOTORS”

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of submitted by

DR. ASHUTOSH BAJPAI HARSHIT GROVER

FACULTY GUIDE BBA – VI Sem DIV(B)

10317001719

Session: 2020-21

CONTENTS
 TABLE OF CONTENT

S Topic Page No
No
1 Certificate -
2 Acknowledgement
3 Executive Summary -
Chapter I: Introduction -
Chapter II: Review of Literature -
Chapter III: Research Methodology
Chapter IV: Data Interpretation,
Presentation & Analysis
Chapter V: Findings , Suggestions &
Conclusions
References/ Bibliography
Appendices
- List of Tables
- List of Figures
 Acknowledgement

To Whom It May Concern

I _Harshit Grover______________________, Enrolment No.

10317001719______________from BBA-VI Sem, Shift_________ of the Tecnia
Institute of Advanced Studies, Delhi hereby declare that the Project Report (BBA-
312)
entitled__________________________________________________________________
___________________________at ________________________________ is an
original work and the same has not been submitted to any other Institute for the
award of any other degree. A presentation of the Project Report was made on
_______________________ and the suggestions as approved by the faculty were duly
incorporated.

Date: Signature of the

Student

Certified that the Project Report submitted in partial fulfillment of Bachelor of

Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi by
_________________________, Enrolment No. ________________ has been completed
under my guidance and is Satisfactory.

Date: Signature of the Guide

Name of the Guide:

DR. Ashutosh Bajpai

Designation:
EXECUTIVE SUMMARY
Tata Motors is among the top multinational companies in India. It is an operating subsidiary of the Tata
Group. Tata Motors was established in the year 1945 and since then it has become the country's largest
automotive producers. It is listed on both the Bombay Stock Exchange and the New York Stock
Exchange. In 2005 this multinational company featured alongside the top ten firms in India procuring
annual revenue of Rs 320 billion. Tata Motors is ranked amongst the top employers of the country. The
current strength of employees in the company stands as 50,000. In the year 2010 the total revenue earned
by Tata Motors was $20.572 billion posting a growth rate of almost 64.2 per cent.
Tata Motors Limited is a multinational automotive corporation headquartered in Mumbai, India. Part of
the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata
Motors is Indias largest automobile company, with consolidated revenues of USD 20 billion in 2009-10.
It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has
products in the compact, midsize car and utility vehicle segments. The company is the world's fourth
largest truck manufacturer, the world's second largest bus manufacturer, and employs 24,000 workers.
Established in 1945, when the company began manufacturing locomotives, the company manufactured
its first commercial vehicle in 1954 in a collaboration with Daimler-Benz 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 2005, was ranked among the top 10 corporations in India with an annual
revenue exceeding INR 320 billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of
'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times.
Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was
established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial
vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the
success of its commercial vehicles, Tata realized his company had to diversify and he began to look at
other products. Based on consumer demand, he decided that building a small car would be the most
practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car.
Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian
market. It was also exported to Europe, especially the UK and Italy.
 Chapter- 1
INTRODUCTION

1.1 Introduction:

Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the
first rolled out in 1954. The company's manufacturing base in India is spread
across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar
Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The company is
establishing a new plant at Sanand (Gujarat). 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.
Tata Motors is also expanding its international footprint, established through
exports since 1961. The foundation of the company's growth over the last 50
years is a deep understanding of economic stimuli and customer needs, and the
ability to translate them into customer-desired offerings through leading edge
R&D. With over 2,000 engineers and scientists, the company's Engineering
Research Centre, established in 1966, has enabled pioneering technologies and
products. 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. In
January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which
India and the world have been looking forward to the years to come will see
the introduction of several other innovative vehicles, all rooted in emerging
customer needs. Besides product development, R&D is also focusing on
environment-friendly technologies in emissions and alternative fuels.

1.2 History and Background of Tata Motors:

Tata Motors Limited is India‘s largest automobile company, with consolidated

revenues of Rs.1, 23,133crores (USD 27 billion) in 2010-11. It is the leader in
commercial vehicles in each segment, and among the top three in passenger
vehicles with winning products in the compact, midsize car and utility vehicle
segments. The Company is the world's fourth largest truck manufacturer, and
the world's third largest bus manufacturer. The Company's over 25,000
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 5.9 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
3500 touch points; Tata Motors also distributes and markets Fiat branded cars
in India. 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 and
Spain. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South 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 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 and South America. It has franchisee/joint
venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal
and South Africa. The foundation of the Company's growth over the last 50
years is a deep understanding of economic stimuli and customer needs, and the
ability to translate them into customer-desired offerings through leading edge
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 centers in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was
Tata Motors, which developed the first indigenously developed Light
Commercial Vehicle, 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,
COMPANY PROFILE

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons.
The company was established in 1950 as a locomotive manufacturing unit and later
xpanded its operations to commercial vehicle sector in 1954 after forming a joint venture
with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata
realized his company had to diversify and he began to look at other products. Based on
consumer demand, he decided that building a small car would be the most practical new
venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car.
Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the
Indian market. It was also exported to Europe, especially the UK and Italy. After years of
dominating the commercial vehicle market in India, Tata Motors entered the passenger
vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch
of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'Tata
Mobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998,
India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous
passenger car of India. Though the car was initially panned by auto-analysts, the car's
excellent fuel economy, powerful engine and aggressive marketing strategy made it one of
the best selling cars in the history of the Indian automobile industry. A newer version of the
car, named Indica V2, was a major improvement over the previous version and quickly
became a mass-favorite. Tata Motors also successfully exported large quantities of the car to

South Africa. The success of Indica in many ways marked the rise of Tata Motors.

3.1 Production
Although the sector was hit by economic slowdown, overall production (passenger
vehicles, commercial vehicles, two wheelers and three wheelers) increased from
10.85 million vehicles in2007-08 to 11.17 million vehicles in 2008-09. Passenger
vehicles increased marginally from 1.77million to 1.83 million while two-wheelers
increased from 8.02 million to 8.41 million. In recent times, India has emerged as one

of the favorite investment destinations for automotive manufacturers.

• Volvo Buses India is eyeing 35 per cent growth in domestic sales this year at 550-

600 units as against around 440 units sold in 2008.

• Toyota Kirloskar Motor Pvt Ltd (TKML), the Indian subsidiary of Japan’s Toyota

Motor Corp, is increasing its investment by US$ 164.8 million at its manufacturing
site near Bangalore, to touch US$ 824.32 million by 2016.

• French carmaker, Renault, has completely recast its plans for India as part of a new,

aggressive approach that will see it producing cars in its Chennai plant by 2011.

• Hyundai has made India its global hub for manufacturing small cars. It will invest

US$ 1 billion in its second plant in Chennai by 2013. In addition, it is also investing
US$ 40 million in its research and development (R&D) facility in Hyderabad.
• General Motors has so far invested about US$ 1 billion into its Indian operations.

• Mercedes-Benz will invest about US$ 64. 21 million in its plant at Chakan near

Pune.

3.2.1 Exports
According to the Society of Indian Automobile Manufacturers (SIAM), automobile
sales (including passenger vehicles, commercial vehicles, two-wheelers and three-
wheelers) in the overseas markets increased to 1.53 million units in 2008-09 from
1.23 million units in 2007-08. Export of passenger vehicles increased from 218,401 in
2007-08 to 335,739 units in 2008-09. The growth in export wailed by Hyundai Motor
India, followed by others such as MSIL, Mahindra Renault, Fiat India Automobiles,
General Motors India and Honda Siel Cars India
3.3 Policy
In order to make India a power to reckon with in the automotive sector the
government launched the Automotive Mission Plan (AMP) 2006-2016. The vision of
the AMP is "to emerge as the destination of choice in the world for design and
manufacture of automobiles and auto components with output reaching a level of US$
145 billion accounting for more than 10 per cent of the GDP and providing additional
employment to 25 million people by 2016." As per the AMP, it is estimated that the
total turnover of the automotive industry in India would be in the order of US$ 122
billion-159 billion in2016. It is expected that in real terms, India would continue to
enjoy its eminent position of being the largest tractor and three-wheeler manufacturers
in the world and the world's second largest two-wheeler manufacturer. By 2016, India
will emerge as the world's seventh largest car producer (as compared to the eleventh
largest currently) and retain the fourth largest position in world truck manufacturing
sector. Further, by 2016, the automotive sector would double its contribution to the

country’s GDP from current levels of five per cent to 10 per cent.
3.4 VISION AND MISSION

3.5 PRODUCT RANGE

 Tata Sumo

Production 1994–present
Assembly Pune, India
Successor Victa, Victa DI, Sumo Grande
Class MUV, SUV (Sumo Grande)
Body style 5-door, Body on Frame
Layout Front Engine, Rear Wheel Drive
Engine 2.0L IDI
Transmission 5-speed manual
Wheelbase 2,400 mm (94.5 in)
Length 4,450 mm (175.2 in)
Width 1,756 mm (69.1 in)
Height 1,906 mm (75.0 in)

Tata Safari
Manufacturer Tata Motors
Also called Tata Dicor
Production 1998–present
Class SUV
Body style 5-door SUV
Engine 2.0L turbodiesel I4
2.2L turbodiesel I4
3.0L turbodiesel I4
Transmission 5-speed manual
Wheelbase 2,650 mm (104.3 in)
Length 4,650 mm (183.1 in)
Width 1,918 mm (75.5 in)
Height 1,925 mm (75.8 in)
Kerb weight 1,920 kg (4,233 lb)
Related Tata Sumo

Tata Indica

"Tata Indica V2"

Manufacturer Tata Motors

Production 1998–present

Assembly Pune, Maharashtra, India

Class Supermini car

Layout FF layout

Tata Nano

Manufacturer Tata Motors

Also called one-lakh car
Production 2008–present
Assembly Pantnagar, Uttarkhand, India[1]
Charodi, Gujarat, India (since June 2010)[2]
Class City car
Body style 4-door
Layout RR layout
Engine 2 cylinder SOHC petrol Bosch multi-point
 fuel injection (single injector)
allaluminium 624 cc (38 cu in)
Transmission 4 speed synchromesh with overdrive in 4th
Wheelbase 2,230 mm (87.8 in)[3]
Length 3,099 mm (122.0 in)[3]
Width 1,495 mm (58.9 in)[3]
Height 1,652 mm (65.0 in)[3]
Designer Justin Norek of Trilix, Pierre Castine[4]

ALL Products:

 Passenger cars and utility vehicles :

1. Tata Sierra (Discontinued)

2. Tata Estate (Discontinued)
3. Tata Sumo/Spacio
4. Tata Sumo Grande
5. Tata Safari
6. Tata Indica
7. Tata Vista
8. Tata Indigo
9. Tata Manza
10. Tata Indigo Marina
11. Tata Winger
12. Tata Magic
13. Tata Nano
14. Tata Xenon XT
15. Tata Aria
16. Tata Venture
17. Tata Iris

 Concept vehicles

1. 2000 Aria Roadster

2. 2001 Aria Coupe
3. 2002 Tata Indiva

4. 2004 Tata Indigo Advent

5. 2005 Tata Xover

6. 2006 Tata Cliffrider

7. 2007 Tata Elegante

8. 2009 Tata Pr1ma

9. 2010 Tata Versa

10. 2010 Tata Essota

11. 2011 Tata Pixel

 Commercial vehicles

1. Tata Ace
2. Tata Super Ace
3. Tata TL/Telcoline/207 DI Pickup Truck

4. Tata 407 Ex and Ex2

5. Tata 709 Ex
6. Tata 809 Ex and Ex2
7. Tata 909 Ex and Ex2
8. Tata 1109 (Intermediate truck)
9. Tata 1512 (Medium bus chassis)

10. Tata 1612/1616 (Heavy bus chassis)

11. Tata 1618 (Semi Low Floor bus chassis)

12. Tata 1623 (Rear Engined Low Floor bus chassis)

13. Tata 1518C (Medium truck)

14. Tata 1613/1615 (Medium truck)

15. Tata 2515/2516 (Medium truck)
16. Tata Starbus (Branded Buses for city, inter city, school bus and standard

passenger transportation)
17. Tata Divo (Fully built luxury coach)

18. Tata CityRide (12 – 20 seater buses for intra-city use)

19. Tata 3015 (Heavy truck)

20. Tata 3118 (Heavy truck) (8×2)
21. Tata 3516 (Heavy truck)
22. Tata 4018 (Heavy truck)
23. Tata 4923 (Ultra-Heavy truck) (6×4)
24. Tata Novus (Heavy truck designed by Tata Daewoo)

25. Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

 Military vehicles

1. Tata LSV (Light Specialist Vehicle)

2. Tata Mine Protected Vehicle (4×4)
3. Tata 2 Stretcher Ambulance
4. Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions
5. Tata LPTA 713 TC (4×4)
6. Tata LPT 709 E
7. Tata SD 1015 TC (4×4)
8. Tata LPTA 1615 TC (4×4)
 9. Tata LPTA 1621 TC (6×6)
10. Tata LPTA 1615 TC (4×2)
11. Tata Winger Passenger Mini Bus

3.6 MARKETING STRATEGIES ADOPTED BY TATA

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. Marketing strategy includes all basic and long-
term activities in the field of marketing that deal with the analysis of the strategic
initial situation of a company and the formulation, evaluation and selection of market-
oriented strategies and therefore contributes to the goals of the company and its
marketing objectives.

3.6.1 SALES STRATEGY

3.6.1.1 Sales promotion

According to American Marketing Association, sales promotion refers to “those

activities other than personal selling, advertising & publicity that stimulate consumer
purchasing & dealer effectiveness, such as display shows & exhibitions and various
other non-recurrent selling effort not in ordinary routine.”

3.6.1.2 Sales Promotion Objectives

 To increase the sales & encourage the present consumers to use more
frequently.
  To attract new customers by means of incentive campaigns etc.

 To build buying habit.

 To motivate & attract the sales force and get their cooperation.

 To improve manufacturer-dealer relationship.

 To help the new product enter into existing and new market.

3.6.1.3 Importance of Sales Promotion

 Spread Information.
 Stimulate Demand.
 Creates Product Identity.

3.6.1.4 Sales Promotion Method

SALES
PROMOTION MEANING OBJECTIVES
METHOD

Offering a product at a lower than the To encourage immediate

1.Price Offers
normal price. sales, attract non-
users,etc.

When the consumer is entitled to To encourage product trail,

2.Coupon redeem a specific standard certificate build loyalty, trade – up regular
for a product free or in part payment. users, stimulate re-purchase rate.
 Other than normal trade & cash To push more sales to trade,
3.Discounts
discount. early cash recovery.

Where participating dealers are invited To increase sales, buy dealer’s

4.Dealer Sales
to compete in terms of the sales loyalty; motivate dealer’s staff
Contests
performance. to sell more.

Offer of useful articles & attractive

To improve dealer relations,
5.Dealer gifts gifts to dealers for his personal, family
make impact on consumer.
or office use.

3.6.1.5 SALES PROMOTION STRATEGY

A. Tata True Value Outlet:-

Tata has aided customers by providing them the facility to bring their vehicle to a
'Tata True Value' outlet and exchange it for a new car, by paying the difference. They

are offered loyalty discounts in return. This helps them retain the customer.

B. Tata Call Center:-

Tata has proper customer complain handling cell under the CRM department. The
customer care will help the customers solving all their problems and answer all their
grievances.

C. Tata Insurance:-
It is launched in 2002 Tata provides vehicle insurance to its customers with the help
of National Insurance Company, Bajaj Allianz. The service was set up by the
company with the inception of two subsidiaries Tata Insurance Distributors Service
Pvt. Ltd. And Tata Insurance Brokers Pvt. Ltd

1.6.1.6 Promotional Strategies

 Road Shows

The company plans to stage road shows, to display vehicles in the pavilions during
various college festivals and exhibition. This car will appeal to youngsters more.

 Television advertisements

Advertisements to promote and market our product will be shown on leading

television channels. Major music and sports channels will promote and they will reach
out to the youth will be promoted through Star, Zee, etc as it has more viewers.

 Radio

Radio is the medium with the widest coverage. Studies have recently shown high
levels of exposure to radio broadcasting both within urban and rural areas, whether or
not listeners actually own a set. Many people listen to other people's radios or hear
them in public places. So radio announcements will be made and advertisements will
be announced on the radio about the product features and price, qualities, etc.

 Print Ads
 Daily advertisements in leading newspapers and magazines will be used to promote
the product. Leaflets at the initial stage will be distributed at railway stations, malls,
college areas and various other locations.

 Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people
aware about the companies past performance and product features, its affordability
and usage, vast distribution network. Road shows will be conducted where free trials
of the car would be given.

3.7 COMPETITVE ADVANTAGE OF TATA

 Dealer network across the country

Wide dealership network allows the company to service customers over a wider geogr
aphical area than competitors. Currently, there are 140 outlets of Tata Motors.

 True Value Operations

MUL providing its customers an opportunity to resale their car to MUL or exchange
with anew Tata car under its ‘True Value´ network has proven really beneficial. In
FY07True Value network touched 10000 units a month and more than 90% of that
resulted in the exchange of a new car
 Chapter- 2
Literature Review
Review of literature forms an integral as well as an essential part of modern research
studies. No research study is considered complete unless an extensive literature
review is made by the researcher. The basic purpose of undertaking this exercise is
to find the research gap between, studies conducted so far or literature available, and
also to finalize precisely the topic of research and to get insight into the research
topic selected for study. In this sense this exercise becomes a sort of exploratory
research.

Keeping these facts in view researcher has undertaken an extensive exercise of

literature review and came to the conclusion though some books are available on the
topics related to the research topic chosen by the researcher, but all of these have been
written in some other perspectives and none of these are having direct relation to the
topic of this research. In fact researcher intended to examine the sustainability of
small cars in Indian automobile sector, in the light of new developments taking place
in the Indian auto sector like introduction of big cars by number of aut
o
manufacturers in Indian market in the recent past, increase in personal and disposable
income, better and improved road conditions, shift in consumer’s behavior from to
save to consume, easy financing and loan facility, installment payment facility, status
symbol, etc. These facts also lead to a query that whether small car will be able to
withstand in the market and will it be the preferred choice of Indian car buyers. None
of the books researcher gone through has been written from this perspective.
Similarly a number of research studies have been conducted on the subject related to
research topic, some of these have studied the consumer/buyer behavior of these
cars, some of the have studied some other aspects, like environmental sustainability
or economic sustainability, but none of them have studied from the angle , researcher
intended to study.

A brief account of the review of literature made by the researcher is being presented
here,
The idea to build small cars for the Indian market is almost as old as India’
s
independence. Already by the late 1950s, the Indian Government established a
Commission with the task to look at costs and prices of motor vehicles produced in
the country and invited proposals for the production of an ‘Economy Car’. In
response, different manufactures submitted proposals. Tata, for example, submitted a
proposal for the license production of a DKW light car. In 1959, it was Premier
Automotive Limited (PAL) that was allowed to enter into collaboration with the Fiat
Motor Company for the production of the Fiat 500 which was later replaced by the
Fiat 1100 (Mohanty et al. 1994). While there were ever few commissions looking into
the question of mass-producing the small cars, there was no real effort to realize the
endeavour before the 1980s. (Venkataramani -1990) argues in this context. From time
to time committees appointed by the Government purported to study the issue of
initiating the manufacture of a small, economical, “people’s car.” But the persistence
of the notion in high Government circles and in the Planning Commission that the
passenger car was a luxury item that catered to the needs of a small section of the
population inevitably promoted inaction. (Venkataramani, 1990: p. 12)

India’s entire production of passenger cars and MUVs rose in the 1960s to 1980s
only slowly to around 40.000 vehicles annually. Low production volumes and high
prices put passenger car ownership quite deliberately out of reach of average middle
class consumers. The stagnation was above all related to India’s post independence
State- led investment regime that favored capital goods production (favoring
commercial
vehicle production and busses), restricting market competition through a licensing
system and shielding of the national economy by a protectionist trade and FDI
regime. Thus, while the demand for passenger cars – even for a small car like the Fiat
500/Padmini – is restricted by stringent price controls and high taxes, the supply side
is equally restricted by a licensing system and protectionism that curb production,
domestic competition and locking out international players (Becker-Ritterspach &
Becker-Ritterspach, 2008).

In the early 1970s the idea of mass producing a small car was taken up again. It was
Sanjay Gandhi, then Prime Minister Indira Gandhi’s son, who revived the idea of
producing a car for the people. On the 16th of November 1970, Sanjay Gandhi
founded a private limited company named ‘Maruti technical services private limited’.
The stated mission of the enterprise was the development of a ‘people’s car’ – an
affordable, cost-effective, low maintenance and fuel efficient car – for India’s middle
class that was indigenously designed and produced. Following Sanjay Gandhi’s
initiative, Prime Minister Indira Gandhi's cabinet proposed the production of a
‘people’s car’ and passed a unanimous resolution for its development and production.
Although Sanjay Gandhi neither had any prior experience in automobile production
nor a clear design proposal or tie-ups with another corporation, he was awarded the
contract and the exclusive production license (Venkataramani, 1990). To produce the
car a second company called ‘Maruti limited’ was incorporated in 1971 under the
Indian Companies Act. Under patronage of Indira Gandhi’s Government the company
received land, tax breaks and funds (Shirali, 1984; Shenoy, 2003). However, despite
all government backing and support, Maruti – named after the Hindu God of the
winds – didn’t take off. The young company proved incapable of producing a single
marketable car. A part of the problem lay in the inexperience in automobile
production of the Nehru-Gandhi family members who comprised the company’s top
management. Maruti limited’s problems culminated in the company’s liquidation in
1977 (Becker-Ritterspach, 2007).
Trying to rehabilitate her family name, Indira Gandhi tackled the unresolved Maruti
problem. Eventually the ‘Maruti Scandal’ came to a close when in October 1980 the
Government of India took over Maruti limited and incorporated it in February 1981
by an Act of parliament (Maruti Limited Acquisition and Transfer of Undertaking
Act) as a Public Limited Company. Rechristened Maruti Udyog Ltd., the company
was incorporated under the provisions of the Indian Companies Act, 1956.Realizing
that the company – as well as the industry as a whole – could only succeed with
foreign cooperation; bids for foreign collaboration were invited. What is more, the
Indian Government not only sought to turn Maruti into a success story, but pursued a
wider political agenda with the project that drove the search and selection for a
foreign Joint Venture partner.

According to Venkataramani, the “Project report forManufacture of passenger cars

and light utility vehicles”, dated 27. May 1982
revealed that among the major goals associated with Maruti were:

1. Modernization of the Indian automobile industry;

2. Production of fuel efficient vehicles;
3. A large output of motor vehicles;
4. Import of foreign technology and equity participation by the collaborator
5. Production of a “people’s car” suited to Indian driving and climatic
conditions
6. Creating potential for earning foreign exchange by export of Maruti
products; and
7. Generating employment through establishment of ancillary
industries (Venkataramani, 1990: p. 65)

Although there was an earlier intention to produce light commercial vehicles and
medium sized-cars, the idea of producing a fuel efficient small car prevailed. In 1981,
Maruti’s board of directors decided that the vehicle to be manufactured would be a
 small car and that the engine size should be kept below one liter (Venkataramani, 1990).
The decision was driven by the rationale that the Maruti project could only succeed if mass
production was realized. This, in turn, was tightly linked to the car’s affordability and cost
of operation. The decision was further supported by market research findings as listed
below.

While the 1980s saw the emergence of India’s small car in sales and production terms and
for the first time higher production of passenger cars compared to commercial vehicles,
research and development (R&D) for small cars played a marginal role. Basically all
product and production competence lay in the hands of the foreign partner Suzuki. First
efforts to set up R&D in Maruti, mainly aimed at minor product adaptation to local road
and climate conditions (Mohanty et al., 1994). By the same token, production was firmly
focused on domestic demand. As the figure below shows overall exports remained
negligible until the 2000s

Change and Continuity of India’s Small Car From the 1990s onward :

In the 1990s and especially in the 2000s, India’s small car continued to develop and grow
stronger. While it was still the domestic demand structure that sustained the small car in
sales and production terms, the emergence of small car export and R&D additionally
strengthened the small car market. As the small car market developed further, there were
changes in the market’s qualitative and quantitative terms. These changes were largely
rooted in India’s economic reforms that started in the 1990s and received a new boost in
the 2000s.
 Chapter- 3
Research Methodology
The process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interviews, surveys and other
research techniques, and could include both present and historical information.
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods or techniques but also the methodology

Market research requires two types of data i.e. secondary data and primary data. Primary data has
been used abundantly for the study. Well-structured questionnaires were prepared & the survey
was undertaken. Feedback for the display has been taken by asking questions & observation has
also done to gather primary information.
There is also a use of secondary data, collected from the various journals, books, and websites &
from company managers.
The selection of respondents were accordingly to be in a right place at a right time
and so the s a m p l i n g w e r e q u i t e e a s y t o m e a s u r e , e v a l u a t e a n d c o - o
p e r a t i v e . I t w a s a r a n d o m l y a r e a sampling method that attempts to obtain the
sample of convenient.

PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.

SECONDARY:
The secondary data has been collected from the following modes:
 Magazines
 Newspaper
 Data through internet sources
 Data collected from organization
Area of research: Delhi

Research approach: Survey method

 CHAPTER-4
Data Interpretation, Presentation
and Analysis

a) Sale according to survey

INTERPRETATION
By analyzing the datas available about the sales figure it can be noted-
Vista Aqua is the most selling car amongst the other cars. Next comes the Vista Aura and
Vista Terra. These three cars constitute most of the sales. All other cars of tata have around
23.33
 b) Aer Carwareness of all versions of Tata Passeng

Are you aware of all versions of Tata Indica Passenger car?

Cumulativ
Frequen Percent Valid e Percent
cy Percent
ValidYES 29 29.0 29.0 29.0
NO 71 71.0 71.0 100.0
Total 100 100.0 100.0

Awareness of all versions of Tata Passenger Car

80

71

60
Percent

40 29

20

YES NO

Are you aw are of all versions of Tata Indica Passenger car?

INTERPRETATION
From the above data we find out that most of the people surveyed are not aware
of all the versions of Tata Indica passenger car. Therefore more measures must
be taken to promote and create awareness about the cars available.
 c) Sample of 30 customers, according to their income.

INTERPRETATION
The above chart shows the annual income level of the 30 chosen samples. 17 samples have
income ranging between 1 lakh and 3 lakhs. 6 people have income between 3-5 lakh. 5
samples have income below 1 lakh. And the rest have income above 5 lakh.
 d) Car customers

INTERPRETATION
The above chart shows that out of 30 samples chosen for the survey, 13 are first time users
and the rest have used Tata cars more than once and they are satisfied an happy with the car
and they do not want to change to some other car.

e) Tele media creates a brand appeal.

T.V. ads appeal No.of people

Yes 7

No 23
INTERPRETATION
The above chart indicates that tele media does not actually create a brand appeal. Amongst
the 30 samples, 23 feel that tele media is not so important in creating a brand appeal. The
performance, average and features create a brand appeal.

f) Customer Satisfaction from Tata cars.

Customer satisfaction No.of people

Satisfied 11

Not satisfied 19
INTERPRETATION
Tata passenger car users are not so satisfied from the tata cars though it gives the best average
amongst all same segment cars available and it is very economical. 19 out of 30 samples are
not satisfied with car and expect something better than the available cars.
f) Tata Passenger Cars, Creating brand value

Brand value No.of people

Yes 15

No 5
INTERPRETATION
The above chart shows that Tata Passenger cars do create a brand value. It is a big competion
to the other related brands available in the market. Only 5 out of 20 people feel that Tata cars
do not create a brand value.

g) Factors affecting buying of customers

INTERPRETATION

The above chart shows that 4 samples prefer Tata cars because it provides power steering at a
very low cost as compared to other cars. People say that Tata cars give the best mileage and it
is very economical, 14 people prefer Tata Motors because of the mileage it gives. Most of the
people prefer Tata Motors as it sells the cheapest cars and at the same time provides features
which cannot be found in other cars in the same segment. It offers best features at least price.

I) Searching Information before buying car

Did you search information for buying the car?

Cumulative
Frequency Percent Valid Percent Percent
Valid YES 49 49.0 49.0 49.0
NO 51 51.0 51.0 100.0
Total 100 100.0 100.0

Searching Information before buying car

60

50 51
49

40
Percent

30

20

10

YES NO

Did you search information for buying the car?

INTERPRETATION

The above chart shows that 51% people do not actually search for information before buying
a car. They just simply buy a car according to their budget and the brand value. They do not
usually search for various cars in the same segment. The rest of people prefer to do a detailed
research on various cars and its features before buying a new car.

j) Rating of Mileage given by vehicle

How will you rate the mileage given by your vehicle?

Cumulative
Frequency Percent Valid Percent Percent
Valid Very good 17 17.0 17.0 17.0
Good 65 65.0 65.0 82.0
Neither good nor poor 13 13.0 13.0 95.0
poor 5 5.0 5.0 100.0
Total 100 100.0 100.0

Rating of Mileage given by vehicle

70

65

60

50

40
Percent

30 17
13

5
20

10

Very Good Good Neither good nor poor Poor

 How w ill you rate the mileage given by your vehicle?

INTERPRETATION

Tata cars are best in terms of mileage as they have been made for the common man. From the
data collected it was found that 17% of the samples feel that the mileage of Tata cars is very
good. 65% people have rated it as good. Some people say that the mileage of the cars is not
so good and not so bad also at the same time. Only 5% of the chosen samples think that the
mileage of the Tata cars is poor.
 CHAPTER-5
Findings, Suggestions and
Conclusions

FINDINGS

➢ TATA MOTORS is number three in passenger car market after maruti-suzuki &
hyundai.

➢ Majority of the customers see TATA MOTORS with savings.

➢ Most of the customers spend large sum of money

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

➢ As the sales of Maruti grows as well as Hundai’s santro is still doing

well in mid size and small size segment so the INDICA VISTA may be
a good options for the company in this term for sustaining sales in long
run as well as in the current situations.

➢ Product will have a gradual progress. Because most industries would

wait for the response about the product from other Company

➢ Customers were educated by me, about fuel efficient cars by TATA MOTORS
SUGGESTIONS AND RECOMMENDATIONS

➢ Demo of the product should be made available to Customers, since most

of the purchase decisions are based on it

➢ Technical details should be made available to the customers in the most

accurate numerical form

➢ The Indica has remained a bestseller throughout in the industry figuring

in the top 3 selling list of cars for most of the years.

➢ The distribution channel should be more efficient to cater the demand

during peak seasons like during dushera, diwali, etc .The city like
Allahabad is mostly dominated by the working class like people
employed in high court, AG office (accountant general office) and
government school employees who this year are getting more pay due to
the recommendations made by the sixth pay commission so , the sales
for mid size car can be enhanced in this scenario.
 CONCLUSION

The study was conducted to measure,” THE CUSTOMER BEHAVIOR in

purchasing INDICA VISTA. The study was conducted on 30 Customers. A

questionnaire was designed to understand the market and create awareness

about TATA MOTORS. Based on the questionnaire, data was collected and

analyzed and it was found that the customers are willing to buy the Cars.

However they are also skeptic about it. Suggestions are provided based on

customer requirements and market situation. A nearest attempt has been

made to make the study realistic and suggestive, but it is not claimed that

the findings and suggestions in the report are perfect.

 REFRENCES

BOOKS:

• KOTLER PHILIP AND ARMSTRONG,

• GARY MARKETING MANAGEMENT

• MARKETING RESEARCH by R Nandagopal & K Arul Rajan

MAGAZINES:

• MONEY TODAY

• BUSSINESS WORLD

• OUTLOOK PROFIT

• INDIA TODAY

WEBSITES”

• Tatamotors.com,

• Yahoofinance.com,

• Valuereseacrhonlin