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AUTOMOTIVE INDUSTRY
MARUTI SUZUKI V/S TATA MOTORS
V/s
QUANTITATIVE TECHNIQUES BASED DECISION MAKING GROUP NUMBER - 4
SUBMITTED BY: PRIYANKA KUMARI (2011147) ROHIT SRIVASTAVA (2011160) SAVI AHUJA (2011172) SHWETA MANOHAR (2011186)
TABLE OF CONTENT
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CONTENT
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IMPLICATION
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BIBLIOGRAPHY
INTRODUCTION
ABOUT THE INDUSTRY:-
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations. The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%). According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.
It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in New Delhi
Tata Motors Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45% Tata Motors Limited is Indias largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has 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 second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4 million vehicles in India.
A COMPARATIVE VIEW ON THE TWO COMPANIES:Maruti Suzuki Founded In 1981 (as Maruti Udyog Limited) 1945 JRD Tata Mumbai 123,133 crore 9274 crore Tata Group Tata motors
Key Person(s) Mr. Shinzo Nakanishi, M.D and CEO Headquarters Revenue Net Income Parent New Delhi 37,522.4 crore 2,288.6 crore Suzuki Motor Corporation
Objectives of Study:The main objectives of the study concerning the two major companies are to provide with: Determine the mean sales turnover of both the companies. Determining of the measure of central tendency and variability of the data of both companies.
Testing of the Hypothesis stating that the means of both the companies are equal. 2.
Tata Motors
Sales Turnover (in
Rs. Cr.) Earnings per Share (in Rs.)
9231.3 9203.8 11392.5 13458.2 14898.8 17358.4 21200.4 23381.5 32174.1 40590.5
78.91 5.07 18.76 29.55 41.16 54.07 59.91 42.18 86.45 79.21
8710.05 10700.66 15298.47 20262.61 23490.55 31089.69 33123.54 28538.2 38364.1 52135.97
-1.98 9.38 22.96 34.19 39.94 49.65 52.63 19.48 39.26 28.55
Calculations:Maruti Suzuki Ltd. Tata Motors Earnings per share 29.406 300.7842 17.34313 58.97820408
Sales Turnover
Measures
Mean Variance Standard Deviation Coeff. Of Variation
Sales Turnover
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TEST OF HYPOTHESIS Let N be the population sizes be the population mean Let a sample of size n is drawn from the population Let x be the sample mean. Step 1: Null hypothesis: Ho : 1 = 2 i.e. mean sales turnover of Maruti Suzuki is equal to the mean sales turnover of Tata Motors Alternative hypothesis: H1 : 1 2 i.e. mean sales turnover of Maruti Suzuki is not equal to the mean sales turnover of Tata Motors Step 2: Level of significance, =5% Step 3: Test statistic t x1 - x2 )-(1 - 2 )]/ (s12/n1 )+(s22/n2)] t ~> t(n1+n2-2) degrees of freedom
Since 1=2, our test statistic becomes as under: x1 - x2 )/ s2(1/n1 )+(1/n2)] x1-x2=-6882.434 By assuming the population variance to be equal for both the populations, the combined variance can be estimated as: s2=[(n1-1)s12+(n2-1)s22]/(n1+n2-2) s2=142661811.8 s2(1/n1 )+(1/n2)]= 11944.11201
t=-0.576219814
Step-4:
Step 5: Inference If |t|<te, reject the null hypothesis and conclude that mean sales turnover of Maruti Suzuki is not equal to the mean sales turnover of Tata Motors.
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Future Prospects:-
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BIBLIOGRAPHY
BOOKS REFERRED: STATISTICS FOR BUSINESS AND ECONOMICS BY ANDERSON, SWEENEY, WILLIAMS STATISTICS FOR MANAGEMENT BY GERALD KELLER
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