A SUMMER TRANING PROJECT ON MARKETING STRATEGIES & CUSTOMER SATISFACTION FOR TATA MOTORS

Report submitted in partial fulfillment of the requirement for the degree

DECLARATION I hereby declare that the project report entitled: MARKETING STRATEGIES & CUSTOMER SATISFACTION FOR TATA MOTORS submitted in partial fulfillment of the requirement for the degree is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes. Place: Date: ________

CERTIFICATE This is to certify that A Market Research Project Report on Marketing Strategies of Tata Motors highlighting automobile industries leading company and top economic conditions in India for the project entitled Marketing Strategies and Customer Satisfaction for Tata Motors, is approved and is acceptable in quality and form.

Internal Examiner

external examiner (Mr. ________)

ACKNOWLEDGEMENT Before I got things I would like to add a few heartfelt words for the people who were part of this project in numerous ways. My sincere gratitude to all the FACULTY MEMBERS, for their valuable guidance, encouragement, useful suggestion, critical evaluation and unending support which helped us accomplishes the project. Although I have expressed our gratitude and heartfelt thanks to organization guide who helped me in reaching at this stage, through this acknowledgement, I would like to thanks to all those people who has provided me all the informations directly or indirectly throughout this project report has been successfully completed. I appreciate the co-operation by the management in stock effects on commodities market in India.

TABLE OF CONTENTS
EXCUTIVE SUMMARY 5 INTRODUCTION TO THE INDIA AUTOMOTIVE INDUSTRY 6 OBJECTIVE OF STUDY 10 SCOPE OF STUDY AREA OF BUSINESS HISTORY TATA MOTORS CAR IN INDIA TATA NANO RESEARCH METHODOLOGY 61 GRAHPHICAL DATA INTERPRETATION 64 ANALYSIS & FINDING 85 LIMITATION&CONCLUSION 90 SUGGETION&RECOMODATION 97 BIBLIOGRAPHY 100 ANNEXTURE & QUESTIONAIRES 103

EXECUTIVE SUMMARY In Todays competitive Scenario it becomes very necessary for the manufacturers to woo the prospective customer by offering the desired features in product & more value on product quality, look but all of them on affordable price. Now a days Throat cut competition is going on in every area. Same is in car market too. So Due to this car manufactures launch different different model car in market. In this series Tatas launch a unique type of car which comes in market for 1st time. This type of Low price car never use by consumer. So this is a Question that what will be response for Nano car in market? What is expectation & Nano car can fulfill? What will be its impact on sales of two wheeler of 2nd hand costly car? As the part of this my department gave me the task to carrying out the study about TATA Motors and result shown consumers focusing on price, design, brand image, comfort during purchasing car. Impact on sales of two wheeler is reduced. My study clearly shows that buyers have great expectations from Nano car.

INTRODUCTION

INTRODUCTION TO THE INDIAN AUTOMOTIVE INDUSTRY The Indian automotive industry has the potential to emerge as one of the largest in the world. India ranks number two globally in the twowheeler segment next only to China. It ranks 11th in car production and 13th in commercial vehicle production globally. With increasing industrial production and growing spending power of the Indian middle class households, the country is expected to make it to the top five markets in the cars and commercial vehicles segment by 2020.

Figure 1: Indian Automotive Industry- Development and Growth

In the year 2006-07, sales of the Indian automotive industry crossed the historic landmark of 10 million units. Sales (domestic as well as exports) of the industry had grown from 5.51 million units in 2001-02 to 11.12 million units in 2006-07, at an impressive Compound Annual Growth Rate (CAGR) of 15.5 per cent. This extraordinary growth had been driven by a buoyant economy, increasing purchasing power of the Indian middle class, new product launches and attractive finance schemes from automobile manufacturers and financial institutions. Of the total sales, roughly 10per cent was contributed by exports to various countries. In terms of volume, the two wheelers segment with sales of 8.48 million units in 2006-07 had the highest share of more than 76 per cent in the industry, followed by passenger vehicles, three wheelers and commercial vehicles. The maximum growth, however, had occurred in the commercial vehicles segment, which grew at a CAGR of 26.6 per cent in the last five years to reach a sales figure of roughly 518,000 units in 2006-07. The next highest growth was witnessed in the three wheelers segment, which grew to roughly 548,000 units. The Indian automotive industry is highly competitive with a number of global and Indian companies present in the market. The foreign companies are present in India either through joint ventures with local partners wholly/partially owned technology tie-ups or as subsidiary companies of their parent companies. Most players are present in more than one segment. The industry is also witnessing diversification by players into other segments. The passenger cars and commercial vehicles industries in particular are poised to witness the entry of new players.

OBJECTIVE OF STUDY

TATA MOTORS PROFILE Established in 1945, Tata Motors is India's largest automobile company. With a portfolio that extends across commercial, passenger and utility vehicles, the company generated revenues of Rs 32,426 crore (USD 7.2 billion) in 2006-07. It was the first Indian automobile company to list on the New York Stock Exchange. The company began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. Today Tata Motors is India's largest commercial vehicle manufacturer; it is also among the world's top five manufacturers of medium and heavy trucks and the world's second largest medium and heavy bus manufacturer. Having entered the passenger vehicles segment in 1991, Tata Motors now ranks second in India's passenger vehicle market. The company enjoys the prestige of having developed Tata Ace, India's first indigenous light commercial vehicle; Tata Safari, India's first sports utility vehicle; Tata Indica, India's first indigenously manufactured passenger car; and the Nano, the world's least expensive car. In March 2008, Tata Motors entered into a definitive agreement with Ford for the purchase of Jaguar Land Rover.

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Scope of study

Tata Motors' product range covers passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles for goods and passenger transport. PASSENGER CAR The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. The next car to be rolled out will be the Nano, unveiled in January 2008. Tata Motors already distributes Fiat-branded cars in India. UTILITY VEHICLES Tata Sumo was launched in 1994 and Tata Safari in 1998. Variants of these models are also available in the market.

COMMERCIAL VEHICLES The company entered the mini-truck segment in 2005 with Tata Ace. The commercial vehicle range extends from the light two-tonne truck to heavy dumpers and multi-axle vehicles in the above 40-tonne segment. Through the Tata Daewoo Commercial Vehicle Company it offers high horsepower vehicles of 220 HP to 400 HP for dump trucks, tractor-trailers, mixers and cargo applications. The company also manufactures and sells passenger buses 12-seaters to 60-seaters in the light, medium and heavy segments, including Magic, a four-wheeler public transport developed on the Ace platform, and Winger, a maxi-van.

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ASSOCIATES Tata Motors is pursuing growth internationally through exports and acquisitions. It has a joint venture with Marco polo, the Brazil-based maker of bus and coach bodies. It has also entered into a joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. Tata Motors and Fiat Auto have entered into an agreement for a Tata license to build a commercial vehicle at Fiat's facilities in Cordoba, Argentina. The company has made substantial investments in building a network of associate and subsidiary companies and joint ventures that complement and support its business activities. These include:

Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of Tata Motors in the business of heavy commercial vehicles. It is South Korea's second largest truck maker and the largest exporter of heavy trucks. Telco Construction Equipment Company makes construction equipment and offers allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction Machinery Company, Japan. Tata Technologies provides specialized engineering and design services, product lifecycle management and product-centric information technology services. It has two operating companies, INCAT and Tata Technologies iKS. Tata Cummins manufactures high horsepower engines used in the company's range of commercial vehicles. HV Transmissions and HV Axles are 100 per cent subsidiaries that make gearboxes and axles for heavy and medium commercial vehicles. TAL Manufacturing Solutions is a 100 per cent subsidiary that provides factory automation solutions and designs and manufactures a wide range of machine tools. Tata Motors European Technical Centre is a UK-based 100 per cent subsidiary engaged in design engineering and development of products. TML Financial Services is a 100 per cent subsidiary in the business of financing customers and channel partners of Tata Motors. Hispano Carrocera is a reputed Spanish bus manufacturing company in which the company has acquired a 21 per cent stake.

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Tata Auto Comp Systems (TACO) is a holding company for promoting domestic and foreign joint ventures in auto components and systems. It is also engaged in engineering services, supply chain management and after-market operations for the auto industry. Concorde Motors is a 100 per cent subsidiary that retails Tata Motors' range of passenger vehicles

CORPORATE SOCIAL RESPONSIBILITY Tata Motors is a signatory to the United Nations Global Compact. It focuses on health, education, water management, environment and employment generation issues in areas where it operates. These continuing initiatives have received national recognition: Tata Motors was conferred the 'CII-ITC Sustainability Award 2006 for Significant Achievement on the Journey towards Sustainable Development' and the 'Golden Peacock Award for Corporate Social Responsibility'. Tata Motors has led the Indian automobile industry's antipollution efforts through a series of initiatives in effluent and emission control. The company introduced emission control engines in its vehicles in India before the norm was made statutory. Modern effluent treatment facilities, soil and water conservation programmers and tree plantation drives at its plant locations contribute to the protection of the environment and the creation of green belts. LOCATION Tata Motors' plants are located at Jamshedpur (eastern India), Pune (west), Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a common manufacturing facility at Ranjangaon, near Pune. The company is establishing two new plants at Dharwad (south) and Singur (east).

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HISTORY Tata Motors is a part of the Tata and Sons Group, founded by Jamshetji Tata. The company was established in 1945 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. 1960-1986

http://en.wikipedia.org/wiki/Image:Tatamilestone_1.jpg

Tata Motors launches its first truck in collaboration with MercedesBenz Tata Motors started its commercial vehicle operations in 1960 with the manufacturing of first commercial vehicle (a copy of a Daimler Benz model) in Pune. It took five years for the company to begin the commercial production of heavy commercial Vehicles. Considering the road infrastructure of the country which does not support heavy vehicles the company adopted a route for light commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986. 1987-1996 Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993, it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It was an effort made to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines. 1997-2006 In 2000, it launched compressed natural gas (CNG) buses and also filled the product line gap through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is useful for medium
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tonnage loads. Post 2000, the company introduced a variety of new models. It introduced the Ex- series vehicles with high tonnage capacity and high pick up and also came out with the entirely new LCV (207 DI) with direct ignition technology to cater to the customers' requiring one and same vehicle for commercial as well as personal use. TATA INDICA

http://en.wikipedia.org/wiki/Image:AutoExpoIndica.jpg

After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle by launching hatch-back car, the Tata Indica. Indica was the first car indigenously designed in 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. A re-badged version of the car, known as City Rover, was sold in the United Kingdom. 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. DAEWOO ACQUISITION

http://en.wikipedia.org/wiki/Image:Tata_novus_ra06.JPG

Tata Novus is one of the best selling commercial trucks in South Korea. With the success of Tata Indica, Tata Motors aimed to increase its presence world-wide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:15

Companys global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoos (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus).

JOINT VENTURES In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its high-end inter-city buses in the country. Tata Motors has also formed a 51:49 joint venture with Marco polo S.A., a Brazil-based global leader in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marco polo will provide know-how in processes and systems for bodybuilding and bus body design. A venture with British carmaker MG Rover saw the launch of the City Rover in 2003. This car was based on the Tata Indica and built alongside it in India, but sales were not strong and production finished in April 2005 when MG Rover went bankrupt. MG Rover was purchased by Nanjing Automobile of China three months later, but

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when car production resumed in 2007, the City Rover was not part of the production plans. TATA ACE Tata Ace, India's first indigenously developed sub-one ton mini-truck was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Auto line Industries. By 2005, Auto line was producing 300 load bodies per day for Tata Motors. Tata Ace has also been exported to several European, South American and African countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division.

2007

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Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009. In 2007, Tata Motors launched several concept models and future designs of existing models. It also formed joint ventures with various local companies in several countries to assemble Tata cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegant concept-car during the Geneva Auto Show.
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Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel engine technology. Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. The project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoos design was not in sync with the needs of sophisticated European customers. The company has formed a joint venture with Thailands Thonburi Company, an independent auto assembler, in which Tata Motors will hold a 70% stake. 2008 ONWARDS COMPRESSED AIR CAR

Tata Motors and Motor Development International of Luxembourg have jointly developed the world's first commercially-viable prototype of a compressed air car, named One CAT. It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug. MDI plans to also design a gas station compressor, which would fill the tanks in 3 minutes.
http://en.wikipedia.org/wiki/Tata_Motors - cite_note-Harrabin-12#cite_note-Harrabin-12

There are no gasoline costs and no fossil fuel emissions from the vehicle. There is cost, pollutant emissions, and greenhouse gas emissions from the generation of the electricity used to compress the air. These emissions can be mitigated or eliminated; depending on the source of the electricity (e.g. coal fired power plant, nuclear, solar, etc.). One CAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. It is actually a dual fuel car but it is more efficient than any present Hybrid cars.

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TATA MOTORS CARS IN INDIA Small Cars Mid Size Cars Premium Cars Luxury Cars Sport Utility Vehicle Browse Cars by Company TATA MOTORS LIMITED Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 crores in 2005-06. Its name comes first in the category of commercial vehicles and the second largest in the passenger vehicles, mid size car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer.
http://auto.indiamart.com/automart/index.cgi?database=auto classiTata

Over 3.5 million Tata vehicles are moving on Indian roads, since 1954. Its manufacturing plant is located at Jamshedpur, Pune and Lucknow. MODELS OF TATA MOTORS CARS MODEL-TYPE Safari Dicor

Safari DICOR VX Safari DICOR EX Safari DICOR LX Safari DICOR 2.2 VTT -SUV Tata Indigo

Petrol Variants
o o o
Indigo GLE Indigo GLS Indigo GLX Indigo LX Indigo LS

Diesel Variants
o o

Tata Indigo LS Dicor

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Tata Indigo LX Dicor -Mid-Size Tata Indigo SX

Petrol Diesel -Mid-Size Tata Indica

Tata Indica V2
o o o o
DLX DLG DLS DLE

Tata Indica V2 Xeta o GLX

o o o
GLG GLS GLE DLG

Tata Indica V2 Turbo

o
DLX

-Mid-Size

Tata Indigo Marina

Indigo Marina -Diesel

o o
Indigo Marina LS Indigo Marina LX Indigo Marina GLE

Indigo Marina -Petrol

o o o

Indigo Marina GLS

Indigo Marina GLX

Indigo Marina Dicor -SUV Tata Magic-Small size Tata Sumo

Sumo Victa Sumo SE+ Sumo SE 4*4 Sumo 4*4 Sumo Spacio ST Sumo Spacio
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Sumo Grande -SUV AWAITED MODEL OF TATA MOTOR CARS MODEL-TYPE Air car OneCat -Small Size Car People's car -Small Size Car Tata Elegant-Mid Size Car

TATA NANO

http://en.wikipedia.org/wiki/Image:Nano.jpg

Tata has developed a car, named Tata Nano that aims to sell in 2008. It is the least expensive production car in the world: the price is about 100 000 (USD $2,500). The company unveiled the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Tata has faced controversy over developing the Nano. Some environmentalists are concerned that the launch of such a low-price car could lead to mass motorization in India with adverse effects on pollution and global warming. There was also a strong opposition to the compulsory acquisition of land for the proposed car factory in Singur.

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JAGUAR CARS AND LAND ROVER As of March 26th 2008, Tata Motors reached agreement with Ford to purchase their Jaguar Land Rover operations for two billion dollars. The sale is expected to be completed by the end of the second quarter of 2008.[18] Tata will also gain the rights to the Daimler, Lanchester.

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NANO CAR: A PASSAGE FROM DREAM TO REALITY. Start at the beginning In 2003, a four-member team from Tata Motors was asked to work on a new project. The brief was very fluid. "It began as an advance engineering project. The idea was to try and create a very low cost transportation with four wheels - it was not even defined as a car," says Nikhil A Jadhav, industrial designer, INCAT, who has been working on the project since inception. "What was defined was the cost: Rs1 lakh, about $2500 (at the time the smallest car cost around Rs2.5 lakh), without compromising on aesthetics, value to the customer, or safety and environment requirements, says Jai Bolar, senior manager (development), ERC, and a member of the initial team. The project was a Herculean challenge indeed... The road less traveled The design team first looked at alternative ways of constructing a vehicle. Many concepts were explored and inspiration was sought from existing small cars. The team also debated whether doors were necessary, whether plastics could be used instead of metal, whether interiors could be cut to a minimum, whether a low powered engine would suffice. The focus was always the cost factor and so different technologies were tried. But one question was a consistent driving factor: 'What is the bare minimum a customer will accept'." While it was sure that the design could never go down the auto rickshaw route, the team looked at other concepts: a door-less car with a bar as a safety measure, having soft doors in vinyl with plastic windows, a cloth roof, two big doors (instead of four). But all these kept getting turned down by Mr Tata; he was very clear that it had to be a complete car. "In hindsight, after seeing the kind of joy people got by looking at the Nano, we see how important it was to have a complete car," says Mr Jadhav.

Body building Various themes were explored which set the

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Styling direction, with inputs from the Institute of Development in Automotive Engineering, Italy. Differently shaped Headlights, larger and more vertical, Were designed giving the front of the car the appearance of a little kid, with big eyes in a small face. But Mr Tata asked them to try something different. Horizontal rear lamps were tried out before the vertical lamps (much like the Indica) were finalized. While the constant design changes were frustrating, it also added to the interest factor, feels Mr Jadhav. "If you look at the early renderings of the car, it has metamorphosed into something completely different. But we were always kicked with the fact that in spite of the changes, the car never looked ordinary and boxy. The basic shape and size of the car was always very nice, especially after the lamps changed. In fact that was the point when my interest came back from 70 per cent to 100 per cent." A feature of the new Indica - a spine on the bonnet - was added to the Nano and that changed the front volume and the car started looking more interesting. As the team put it, "It was just a smile in the beginning and the spine accentuated that. That was an important point where the car really started looking nicer; not just a plain car or just another car." The overall shape was developed keeping in mind that this car had to feel large; the wheels at the corner accentuate the car and give an interesting graphic on the road. There was an interesting debate on the bottom end of the glass: there was an inclined wedge till the doors and then a step-up at the quarter window which was tied-in with the bonnet line. But the design team kept debating with Mr Tata where the line should be. They thought that the kick up added a lot of character, but he felt that it reduced the length of the car and asked them to extend it along the lines. This made the car look longer. In the last week of July 2007, just when the team thought it had it all together and could begin work on the virtual phase, there was one more hiccup. Mr Tata felt that the nose of the car looked snub; while the team felt that the nose gave the car a sportier look. But they went back and did some renderings to increase the nose; it actually helped
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increase the length of the car as well as internal volume. The new design was presented to Mr Tata, at the end of August as a virtual model, and immediately received his sign off. "And that's the car you saw in Delhi," concludes Mr Jadhav with a smile. More beautiful on the inside The design work on the interiors of the car Was even more interesting with maximum Scope for innovation. Here again the focus Was on cost reduction, but without Compromising on the comfort factor. The directive from Mr Tata was that The customer has to perceive value. So there was a constant tussle in balancing value to customer and cost to company. The styling was focused on comfort and functionality. "The inside volume was quite large and we were always faced with the challenge that with so much space if we reduce things, it will actually look like there are less things. So we tried to integrate functionality in components. It may cost a little more but you are getting two functionalities at the cost of one," says Siva S Aittili, manager (Industrial Design), ERC. According to him, the exteriors define the character of the car but the interiors drive the user experience. "It's when a person sits inside the car and experiences the comfort and ambience, that he gets the final overall feeling about the car," he explains. So every detail was benchmarked with a luxury or best-in-segment car and the thinking took a different route to manage within the costing. Working closely with the sourcing team led to many interesting inputs on what was possible and what was not. The driving instrument cluster is uniquely placed in the centre, giving the car an open look and enabling everyone in the car to look at it. It also makes the dashboard equally amenable to left hand and right hand driving. Initially the cluster was a simple circular shape; then Mr Tata suggested the shape be changed to an ellipse like the Tata logo. There was a lot of exploration in terms of colors. "We looked at harmony in the colors for the dashboard, the door trims and the seats, to give a good feeling to the customers," says Mr Aittili.
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The seating also went through a lot of concept changes with the team and Mr Tata looking at furniture catalogues for inspiration. Frames with tensile fabrics were thought of, but were rejected as too expensive. The final choice was a conventional looking seat with a structure made of metal and the headrest integrated with the seat to save on costs. The team also wanted the wheels to look different but alloy wheels were too expensive. The final design is called style in- steel wheels a concept that looks like alloy but is made of pressed steel; and the cost is almost the same as a normal steel wheel. Other interesting and unique concepts include a central exhaust and the scoop (air way) required to cool the engine, which became part of the design, part of the door feature. Now that the car has been unveiled, Mr Jadhav and Mr Aittili are finetuning the details, listening to feedback and working on it. And after that: "We will begin work on taking this to the world in a whole different way" .

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THE HEART OF THE NANO The original thought was to have a conventional front engine and a front wheel drive. But then the team started thinking differently. Abhay Deshpande, assistant general manager-Vehicle Integration, ERC explains, "Most high-end cars have a front engine to reduce the complexity of the controls; but the engine drives the rear wheels. While driving from the rear is a more efficient way of transferring power; driving from the front is more cost effective as you don't have to take the power to the rear. We thought of taking advantage of both by having a rear engine with front wheel drive. It made the car more low-cost, more efficient and more compact (we could manage with a length of almost 3 meters). The idea of putting the engine in the rear also turned out to be a major turning point in the design process, a breakthrough of sorts. (The engine was designed to fit in the space behind the rear seat). The sourcing team went shopping worldwide for a suitable small 35hp engine that could be used in a city car, but could not find anything that fit the budget. In a review meeting, Mr Tata asked whether the engine could be built in-house. And that was a task in itself. A rear engine also meant that all controls had to be changed. "The cables that run in front from the engine to the accelerators etc now have to travel from the back. This makes them more complex, says Mr Deshpande. Fitting the engine, the gearbox and the exhaust system into the space behind the rear seats was yet another challenge. The engine is actually inclined at an angle of 14 degrees to complement the rear seat incline. Starting with a 554cc, the team has managed to increase the engine to 624cc with 27hp. The engineering team is very proud of the many innovations that have gone into the Nano. The weight in the rear of the car meant that vehicle dynamics were affected; this led to using different tyres for the front and the rear. "The ride and handling is quite optimized for the vehicle. We focused on simple designs and tried to incorporate innovations in that," says Marinara Kumar Jain, Dy GM, engines, ERC. A drum brake system and non-collapsible steering were added to the package, and the car in fact has the smallest turning circle. Manufacturing planning the interesting challenge here was that aiming for a very low cost car meant the entire organization had to be leaned
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down - not just manufacturing, but materials, design, human resources, and so on. "Mr Tata gave us valuable inputs here - he suggested that the team look at benchmarking themselves not just against other automobile companies but also against other consumer product companies. As a result, the team has taken the benefit of best practices from other industries such as cycle manufacturing or PC manufacturing that involve mass manufacture and assembly," says Santosh Bannur, senior manager, planning, Passenger Car Business Unit (PCBU). "Mr Tata would frequently join us and give inputs on styling, manufacturing processes etc. We also took internal benchmarking inputs from our teams in Jamshedpur and Lucknow," adds Atul Vaidya, assistant general manager, planning, PCBU. The planning team was joined by members from other processes - the paint shop, weld shop, press shop, assembly shop. "Normally, different departments step in at different stages. But in this project manufacturing, planning, maintenance, etc were all involved from the beginning. The entire vehicle was designed and built in a collaborative manner," says Jaydeep M Desai, assistant general manager, Small Car Manufacturing Planning. Over the months the 120-member manufacturing team was built through a systematic process, through interviews and evaluations. People were taken from within Tata Motors, as well as from outside, graduate trainee engineers from IIT Kharagpur and Jadavpur University. "There was a mix of experience and youthfulness," says Ajay Tiwari, assistant general manager, HR, Small Car Project. "Though the members were from diverse areas, the team worked well together because the overriding objective was the focus for everyone. There was also a huge amount of transparency as the role of each person was clearly defined." The diversity of the team helped in generating unique and fresh ideas. Since around 30 per cent of the capital investment in an automotive industry goes into the paint shop, the team looked at alternate options. "But we did not want to compromise on any of the five parameters: safety, quality, delivery, cost and morale. Finally we used the pre-treatment and electro-deposition (PTED) process that is used in conventional cars," says Mr Bannur.

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In an effort to reduce capital costs, the Nano team discussed options with top Japanese and German paint shop manufacturers. "We have ensured that this will still be the cheapest car as far as the paint shop is concerned. Working with Krug, Germany, one of the best paint shop manufacturers in the world, we have managed to bring down capital costs and variable costs to a great extent. We have also ensured that we keep to the environmental norms in Maharashtra and West Bengal," says Bannur. Production concerns Another cost cutting exercise that was attempted was to reduce the number of tools to make the components while at the same time, increasing the life of the dies used, by three times the norm. "It made the design and manufacture of the dies more complicated. We tried special materials and received a lot of help from the product design team in meeting the target," says another production engineer. Initially Vivek Suhasrabuddhey, divisional manager, Small Car Project Office, was skeptical about meeting the projected cost because ''the car looked like an Indica, with the same volume but the targeted price was a quarter of the cost of the Indica. But then I realized we could do many things." They started with benchmarking all parts and sub assemblies with vehicles ranging from a two-wheeler to a high-end fancy car. They also did an exercise called design for manufacturing and assembling whereby the design efficiency of each of the assemblies was worked out. ''Basically this means determining how many useful parts there are in the design. We involved the suppliers also in this exercise and they realized that some functions could be integrated in parts. That is how we got some cost benefit," he says. Because the Nano is a rear-engine car, serviceability and accessibility was a big concern. ''We had to make the car more serviceable and accessible from the customer's point of view. So we did some design modifications to allow this," says Nagabhushan R Gubbi, head of engineering, Passenger Cars. An innovative approach, creating a statistical tolerance sheet for critical failures in product design, gives the team critical control parameters. The car has undergone all required safety testing. "We have done the full frontal crash testing. The offside frontal is required for Europe and will be required in India too. We have completed all simulations etc and are ready. The car also conforms to all environment norms,

30

including Bharat Stage III," says RG Rajhans, project manager, Body Systems Engineering Automation, INCAT.

31

VENDOR DEVELOPMENT This team had a major contribution to make in lowering the cost of the car because majority of the parts were to be outsourced and had to be procured at low cost. The team evaluated and selected vendors who could deliver quality at the required price and then worked with them to ensure that the parts were made to the right critical parameters on the drawings given by ERC. "There were two primary challenges for us," says Sachin Singh, assistant general manager, Strategic Sourcing Group." The first was to contain the prices, because every time there was a change in design or specification, the cost changed. The second and unique challenge was to convince the vendors about the volumes." Not surprising since talking volumes of two million over five years was not heard of in the four-wheeler industry. "A major task was to interact with them, to figure out their processes and optimum capacity to which they could deliver," he adds. E Balasubramoniam, head - Sourcing, small car project, PCBU says, "A lot of engineering has been contributed by our suppliers. We have about 100 vendors, of which 50 will be co-located at the vendor park at Singur. Of these 15-20 would be integrated facilities." Some of the vendors are from the Tata Group. The TACO group companies include - TACO IPD, Tata Toyo Radiators, Tata Johnson Controls, Tata Visteon, Tata Yazaki, Tata Ficosa, Tata GS Yuasa Batteries. There-s also Tata Ryerson for the steel service centres and roll form sections, Tata Bearings for bearings and Tata Steel Tubes for the engine cradle. The big task now is to get the plant operational with the 50 vendors setting up their facilities, clearing all the testing and validation, looking at timelines, the production and ramp rate. "In a normal set up, machines are running and processes are established; here the 4Ms of production - man, machine, material and method, are all new. It is like setting up 50 factories," says Mr Balasubramoniam. The difficulty also lies in the fact that the product and the location are both new. The team is doing its best not to repeat mistakes from the Indica launch. "We are taking definite measures to minimize problems. We have started the early vendor involvement initiative. It is
32

a unique initiative (3P - production, preparation, process methodology) used by Toyota for their supplier base," he adds. RAMPING UP With the unveiling of the Nano, the main focus now is to get the plant sites ready - to ensure that the equipment is ordered, erected and commissioned as per the plan. With the company looking at very high volumes, the major task for the manufacturing and planning team is to ensure a very fast ramp up. There are some unique things in this project that have happened for the first time in Tata Motors," says Jaydeep M Desai, assistant general manager, Small Car Manufacturing Planning. Quality systems have been thought about, put in place and well documented so implementation becomes easier. The maintenance practices - failure mode analysis and development - have been completed. "We have ensured all this during the planning phase itself and this will reduce the breakdowns when we start," he avers. With the car now unveiled and appreciated, the team is looking to provide the finishing touches. The four-year journey has a new beginning. The Nano will be launched in India later in 2008. The car will be available in both standard and deluxe versions. Both versions will offer a wide range of body colors and other accessories so that the car can be customized to an individual's preferences.

33

NANO SPECIFICATION Stylish, comfortable Designed with a family in mind, the Nano has a roomy passenger compartment with generous leg space and head room. Can comfortably seat four persons. Four doors with high seating position make ingress and egress easy. With a length of 3.1 meters, width of 1.5 meters and height of 1.6 meters, with adequate ground clearance, it can effortlessly man oeuvre on busy roads in cities as well as in rural areas. Its mono-volume design, with wheels at the corners and the power train at the rear, enables it to uniquely combine both space and maneuverability, which will set a new benchmark among small cars. Why Nano? The name 'Nano' was chosen as it denotes high technology and small size. Most eagerly waited car People world over were keen to see limited resources.

Fuel-efficient engine The Nano has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc, 33 PS, multi point fuel injection petrol engine. This is the first time that a two-cylinder gasoline engine is being used in a car with single balancer shaft. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine management system. Meets all safety requirements The Nano's safety performance exceeds current regulatory requirements. With an all sheet-metal body, it has a strong passenger compartment, with safety features such as crumple zones, intrusionresistant doors, seat belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tubeless tyres further enhance safety.

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Environment-friendly The Nano's tailpipe emission performance exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. FORTH COMING COMPETITOR OF NANO CAR AJANTA TO CHALLENGE NANO WITH ELECTRIC CAR RAJKOT: There is competition for Tata's Nano from Gujarat. The new entrant in the small car sector is the Morbi-based world famous clockmaker Ajanta group. The company is planning to manufacture an electric car at its unit at Samkhiyali in Kutch district and market it at a price lower than Rs 1-lakh Nano. Ajanta group director Jaysukh Patel told TOI: "The company is already manufacturing electric scooters and bikes under Oreva' brand. Production of electric car is not difficult for us as the technology is almost similar and 70 per cent of its parts can be produced in-house, giving us an edge over the vehicle's pricing." The R&D team was exploring the viability of the small car project under the conditions in India, he said. Sources said the company has imported eight electric cars of different brands, and they were being tested and studied by the technical staff for necessary modification under Indian conditions." TARA TINY CHALLENGES Tata rocked the automotive world when it fulfilled its promise of delivering a car that costs just $2,500 with the unveiling of the Nano minicar last month, but Indian carmakers are confident the bar can be set even lower. Tara International, an arm of the Bengal Enamel, claims it will deliver a car priced slightly lower than the Nano and in the process earn the title of manufacturer of the worlds cheapest car. Tara has taken a significantly different route for the development of its car than the one Tata took. For example, Tara has partnered with Chinese electric giant Aucma to source an electric powertrain for its car (the Nano runs on petrol).

35

MARUTI PLANS CHALLENGE TO NANO NEW DELHI: The battle for the small car is getting hotter. Soon after the Tatas stunned the world with an Rs 1 lakh car, Nano, Bajaj announced a small car with Renault's support and then Hyundai stated its intention to come out with a car that could cost less than Rs 2 lakh and hit the road by 2011. And now, TOI learns auto biggie Maruti-Suzuki too is ready with a hot recipe for a dish of a small car. Maruti-Suzuki is tight-lipped, even in the denial mode, but a number of vendors who have been entrusted with the challenge of developing components for Suzuki's small car say the company's reticence is only evidence of the seriousness of its intent. The little car could hit the road, they say, as early as the end of this year or early 2009. From what TOI learns, the Suzuki car will come closest to rival Nano. It will sport a Suzuki 660cc engine - as against Nano's 623cc - and wear a tag of around Rs 1.5 lakh on road (that is, excluding insurance) - a little higher than Nano, which is expected to be Rs 1.25 lakh on road. Suzuki, say several vendors, is confident of overcoming the price difference by virtue of its high brand equity in the auto mart. When contacted, a Maruti spokesman in Delhi first said the company had no comments to offer. When asked for a written response, the spokesman wrote back saying the company has "no plans" for such a car. The small car project, said vendors, is being mothered by Suzuki at its headquarters at Hamamatsu in Japan, although it will be eventually manufactured in India. A vendor said that Suzuki has codenamed the project "Under A" as the proposed car would be positioned below the A segment, which is driven by Maruti 800 at present. Micro to become macro? GM looking at competing with the Nano

36

GM's going to pile on, too. The Lutz cites GM's part-ownership stake in Wuling Motors, a Chinese manufacturer of sub-$3,000 utility vehicles as a possible source of a GM Nano competitor. Lutz went on to say that one way to make an inexpensive car for the developing world is to repurpose a legacy platform that has become obsolete. The tooling and design will have long been paid off, and there'll be plenty of experience from the manufacturing side, too. This is essentially what GM China is already doing with the Daewoo Matiz/Chevrolet Spark. It might smack of dumping an old product that isn't safe or clean enough for mature markets, but is "good enough" in other parts of the world. That said, it could also be a way to maximize the life of an investment while also providing developing markets with a better product than they'd have otherwise. Lutz also called into question whether the average Nano would sell for its rock-bottom $2,500 price of entry, anyway. Adding extra amenities will likely push the price of most Nanos higher,

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40

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RESEARCH METHODOLOGY

42

RESEARCH OBJECTIVES TOPIC: A STUDY OF POTENTIAL BEHAVIOUR FOR TATAS NANO CAR AREA: NOIDA POINTS OF STUDY: AFTER LAUNCHING NANO CAR IN NOIDA (1)What Response will Aggregates give to Nano Car? (2)What Aggregates think Nano Can fulfill their expectations? (3)If yes Why? (4)To find out impact of selling of Nano Car on two wheeler market in NOIDA. (5)To Find out Aggregates feeling about Nano car & its impact on Car market. (6)To find out opinion of Aggregates about impact on traffic and how should authority take it? (7) To find out Aggregates Preference between IInd Hand car (Whos company price in Lakhs 7 Above) & Nano Car on same price Range. RESEARCH INSTRUMENTS: - Questionnaires. A set of questions present to respondent. These questionnaires developed carefully tested before they are administered on a large scale. Question is related with all above given point of Study. Question are of closed end which has all possible answers & opened end in which respondents give own views. CUSTOMER BUYING

43

GRAPHICAL DATA INTERPRETATION

44

DATA ANALYSIS CUSTOMERS DATA ABOUT DIFFERENT- DIFFERENT INCOME LEVEL

5L TO AB 30%

1L TO 3L 47%

3L TO 5L 23%

Q1. When we talk of a car what do you look into it before buying? (a) Price (b) Comfort (c) Craze

36% 50% 14%

a b c

OVER ALL BASES

45

25 22 20 15 10 5 0 5 6 4 4 14 14 12 19

1L to 3 L 3 L to 5 L 5 L & Above

ON INCOME BASES Q2. If you are going to purchase a NANO car why shall you purchase it? (a)Because of Design (d) Any other (b)Because of Internal space (c) Because of Price

1%

35%

a b c d

49%

ON OVER ALL BASES

25 20 15 10 5 0

15% 21 18 16 13 8 4 3 4 0 0 b c d 1 12 1L TO 3L 3L TO 5L 5L TOABOVE

46
a

ON INCOME LEVEL Q3. Do you think that NANO will live up to your expectation? (a) Yes (b) No

36% a b 64%

OVER ALL BASES

ON INCOME LEVEL

Q4: If yes why (a)Because of Tata Brand at its back (d)Not Attempt

47

(b)Because of its uniqueness (c) Because of your faith on it.

30% 36% a b c d

14%

20%

ON OVER ALL BASES

16 14 12 10 8 6 4 2 0 a 2 2 1 9 8 13 11 11

16

11 9 1L TO 3L 3L TO 5L 5L TO ABOVE

ON INCOME LEVEL

Q5:

Is it the price only which shall motivate you to purchase this car or anything else? (a) Price (b) Other (Please Specify

48

21%

a b

79%

ON OVER ALL BASES

40 40 35 30 25 20 15 10 5 0 a b 7 4 19 20 1L TO 3L 3L TO 5L 10 5L TO ABOVE

ON INCOME LEVEL Q6: What impact will the Launch of NANO car make in the two wheeler market? (A) Decline in Sales (b) Same Sale as before (c) Stagnant Sales

49

13% a b 33% 54% c

ON OVER ALL BASES

25 20 16 15 10 7 5 0 13 8 6 4 3 1L TO 3L 3L TO 5L 5L TOABOVE 25

18

ON INCOME LEVEL

Q 7: Is this car according to you worth the hype created by it? (a) Yes (b) No

50

28% a b 72%

ON OVER ALL BASES

35 30 25 20 15 10

33

21 18 14 9 5 1L TO 3L 3L TO 5L 5L TO ABOVE

5 0 a b

ON INCOME LEVEL

Q 8: As an Indian are you proud of NANO car. (a) Yes (b) No

51

11%

a b

89%

ON OVER ALL BASES

45 40 35 30 25 20 15 10 5 0

41

27 21 1L TO 3L 3L TO 5L 5L TOABOVE 6 2 a b

ON INCOME LEVEL Q 9: After the launch will there be an excess booking for this car. (a) Yes (b) No (c) Cant say

52

27% a b 8% c 65%

OVER ALL BASES

35 30 25 20 15 10 5 0 a 5 3 0 b c 15 10 5 12 18 1L TO 3L 3L TO 5L 5L TO ABOVE

32

ON INCOME LEVEL

Q10: If you happen to get one NANO car how you shall feel? (a) Great (b) So- So (c) No impact nn
53

11%

42%

a b c

47%

OVER ALL BASES

30 25 20 15 10 5 0 14 10 18

27

1L TO 3L 11 9 6 2 a b c 3 3L TO 5L 5L TOABOVE

ON INCOME LEVEL

Q11. What would be its impact on traffic? (a) Horrible situation (b) So- So (c) None

54

6% a b 43% 51% c

OVER ALL BASES

25 20 15 10 5 0 20 18 13 9 10 1L TO 3L 3L TO 5L 5L TO ABOVE 3 1 a b c 24

ON INCOME LEVEL Q12. If Horrible how should the authority take it? (a) Strictly (b) As it is in present (c) Any other

55

25%

48%

a b c

27%

OVER ALL BASES

18 16 14 12 10 8 6 4 2 0 a b c 5 6 7 1L TO3L 3L TO 5L 5L TO ABOVE 15 17

16

16

16

ON INCOME LEVEL

Q13. What should be the criteria of allocating this car? (a)Only to those who have two wheeler & want to purchase a car (b)Only to those who do not have any vehicles & want to purchase a car (c) Only to those whove more than one car & want additional car for show off or as a status symbol.
56

(d)Any other

18%

1%

a b 53% c d

28%

OVER ALL BASES

25 22 20 16 15 10 5 0 14 14 11 10 5 3 3 0 0 a b c d 1 1L TO 3L 3L TO 5L 5L TO ABOVE

ON INCOME LEVEL Q14. Will this car totally revolutionize the car market? (a) Yes (b) No

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1% 26% a b c 73%

OVER ALL BASES

35 30 25 20 15 10 5 0 a b 4 1 c 0 0 19 21 1L TO 3L 13 9 c 3L TO 5L 5L TO ABOVE 33

ON INCOME LEVEL Q 16. Choose among :(a) Nano car (b) 2nd hand car whose cost is more than 3 lakh (c) ANY OTHER

58

c 9% b 20% a 71%

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FINDINGS & ANALYSIS

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FINDINGS & ANALYSIS This study has various findings, which are important to understand the consumer needs, expectations & Preferences these findings also gives information about impact on traffic & How to manage it. I analyzed my Data on over all Bases as well as Income level per annum basis. 1. Price has great role in buying a car than comfort comes my survey show strong indication towards this fact still. Agarites are price sensitive in case of buying car, 50% of total respondent are strongly agree with this. 2. Noida consumer preferring price is the cause of purchasing car 49% are strongly showed in favors for these options. But 35% are purchasing Nano car because of Design which likes very much by Agraites space is at third with 15%. 3. Noida consumers have faith in Nano car on live up their expectations. 64% consumers were said that they have faith in Nano car, which can fulfill their expectation. 36% are not satisfied. But those who are satisfied are give reason. 30% believe that Nano car is of Tata Brand & this Brand has great goodwill in India. But 20% are Believe because of uniqueness like small size, expectations of good average. 14% said believe in Nano is because of live up to their expectation. 4. Price has great role in future for purchasing Nano car No Doubt. Result come from my analysis 79% are strongly satisfied only 21% give another reason such as small size, design, good average, eco. Friendly etc. 5. Nano car price range in near to may two wheeler even less than many two wheeler like how launching Enfield India, Yamaha etc. with 54% Noida customer satisfied that there is decline in sales because in less prize if four wheeler available than why should two wheeler but 33% said same sales as before they give reason for Infrastructure such as narrow Road, etc. 6 Nationality is matter for NOIDA consumers 89% Agarites is proud of ` worlds 1st cheapest car 7. Many of respondent consumers of Noida believe that after launching Nano car these will be excess booking for it This show clear positive attitude towards Nano car 65% respondent clearly mentioned it, but 27% were said no & 8% respondent said wait & watch, now at present it is tough to say something. 8. 42%Respondent feel great when they get Nano car &47% respondent so so. This Data show that before launching this car at least 42% are feel great. Its positive sign. 9. Because of its price what respondents said, middle class along with upper class too will prefer to purchase this car & this decrease in
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selling of two wheelers. But this adversely impact traffic, 51% respondent believes it. But 43% said so-so impact only 65% said no to impact on traffic. 10. In horrible situation Agraites give their opinion for control is that, 48% controlled strictly by laws & order. 27% said to increase basic facilities in infrastructure of traffic system that is widening of Road, Will equipped traffic system but 25% said by present situation it can be controlled. 11. It is in itself a unique type of car with low price range & because of this there is great demand for it. In this context, when asked question, what should be the policy for allocating this car, 52% customer said those who have two wheeler should get car 1st but 28% said that those who have no any vehicles should get 1st car & 17% said for show off or status symbol. 12. 73% believe that this car totally revolutionize the car market because of :a. Low price b. Small size but with appropriate internal space. c. Design And this give a passage to another car manufactures for making this type of low price car. Because of price this car will easily available to middle class people. But 26% still said no revolution & 1% said cant say anything 13. On same price range (range of Nano Car price) 73% respondent purchase 1st hand Nano car only 18% prefer to go with 2nd hand car whose company price is 3 lakes & above. 9% said it depend on situation which is better if 2nd hand car is better than they prefer to go with 2nd hand car otherwise Nano.

62

LIMITATION & CONCLUSIONS

63

CONCLUSIONS 1 L TO 3 L INCOME LEVEL Income level of 1 to 3 L. mostly respondent is concerning comfort 1st than price when they make a plan to purchase any company car. 47% respondent favoring for comfort & 40% are with Price. But they going to purchase Nano car in such conditions 45% will purchasing because of price & 38% will because of Design. Respondents under 1 to3L Income Level Believe that Nano will live up their expectation but 36% said no. 23% give Reason for live up their expectation because of brand. For uniqueness 19%, 23% give it because of faith on car so we can say on behalf of this data is that Brand & faith has great role for purchasing in 1 L to 3 L Range income level. In Income Level 1 to3L 85% believe price is motivational factor for them other reason is important only for 7%. 62% of Income Level 1 L to 3 L believes that there is Decline in sales of two wheeler & 29% were Believe that same sale as before. 68% of this Income Level group believes that there will be an excess booking after launch 27% cant say about it. 42% is Income level of 1 L to 3 L believe that there is horrible situation on traffic after launching Nano. But 34% said that as Present situation is sufficient to control it but again 34% said that there should be in facilities of basic infrastructure of traffic such as widening Road. Traffic light system etc. On the Response of Question Criteria for allocating car 47% said only to those who have two wheeler & want to purchase car, but 30% favor for only to those who do not have any vehicles & want to purchase car 21% were consider it for show off. 70% under Income level 1 L to 3 L believed that Nano car Revolutionize the car market because of uniqueness small size, low price & this give passage to other car manufacture for producing new car. 78% Respondent under this Income level group prefer to purchase Nano Car Company to 2nd hand car whose comp. price is 32% above & available in price of Nano Car.

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3 L to 5 L Respondent who are come under 3 L to 5 L per annum gives their opinion about before purchasing car 60% are concerned price & go with comfort? Craze is at 3rd Position with 17%. When this Income group will purchase car then 69% buying car because of Price 17% concerned design. Under this Income group 52% are believe that Nano car can fulfill there expectations with 34% said Tata Brand as a reason & 8%, 8% for uniqueness & faith on it. But 48% still is not believed that Nano can fulfill expectation. In this Income group 82% said that Price is motivating factor for then 17% said other reason such as size, internal space. 56% of these Income group believe that of his launching Nano car there is decline in two wheeler sales, 36% said same sale as before. 91% are proud of Nano car which is one of unique types of car in world. 65% under this Income group believe that there will be excess booking for this car after Launching. 48% feel that so-so under this Income group when they get one Nano car. But 43% feel great when they get one Nano car. 56% believe that after launching Nano car in market. There will be horrible situation. 30% believe so-so not Horrible & 69% believe to control strictly Traffic. 21% consider as it is on accordance with present situations. On the response of the question criteria for allocating car 69%go with only to those who have two wheeler & want to purchase a car. 33% consider both other options. 22% under this Income group believe that this car totally revolutionize car market because of size, uniqueness & low price & this force to other manufacturer to Launch small size, low price range car in market.

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5 L & Above Under this Income group 46% consider price as important role factor purchasing a car&40% comfort means price sensitivity is an issued. In case if this group is going to purchase Nano car 43% consider design as motivational factor & 40% still Price, Internal Space is not making space very much in mind of this Income group. 66% respondents of this group believe that Nano car lives up to these expectations with 43% consider Tata Brand as a Back, 23% uniqueness. But 33.3% said Nano car cant live up to their expectations because of engine capacity & body strength. 66% of this Income group considers Price as a motivation factor only around 34% go with other reason such as color, design, size etc. There is impact on sales of two wheeler after launching Nano car this is believe by 53% respondents of this group, 26.6% believe same sales 7 205 said stagnant in sales of two wheeler. 905 of this Income group proud of as an Indian National whose nation manufacturer Nano car. 60% believe that after launching this car in market excess booking will before this car. 60% feel great when they get this car 30% so so 7 10% feel no impact. After launching of this car there is Horrible impact on traffic because middle class Car also purchase this is believe by 60% respondent of this group 33.3% believe so- so. In case of Horrible situation strict should be taken 56% respondent consider it & 23.3%. Any other reason such as improvement traffic infrastructure. 46% of this Income group believe that ones who have two wheeler should allocated car 1st 36% consider those who do not have any vehicles get 1st; 56.6% respondent of this group believes that they prefer to purchase Nano Car Company to 2nd hand car whose comp. price is more than 3 lakh Rs.

66

SUGGESTIONS & RECOMMENDATIONS

67

SUGGESTIONS & RECOMMENDATIONS On the Behalf of my conclusions I reach at some suggestions recommendations:1. Consumers are still price conscious & than consider comfort in buying car. In this conditions on reliable price with comfort car should be appropriate. 2. For Nano car purchasing, price has great role then design & internal space. So In this context company should be launching car with different different design with different different color on reliable price. 3. Nano car is still not launching in market but most of our respondents believe on it for live up their expectations because of Tata Brand & car uniqueness so when company launch this car in market company should maintain uniqueness in features which make car different from other especially on size, average, & Price front. 4. My findings clearly indicate towards price as main motivational factor for buying Nano so company should try to maintain. Price as low as possible well other reason such as size, colors, Average is another important factor what our respondents want too look in. 5. Two wheeler with latest Attractive features can cause problems for Nano car. So company should try to implement changes time to time. 6. There is good news for company about positive attitude for excess booking of car after launching. So company should try to maintain faith of consumer on features, comfort, and engine & Price front because there are main four factors which customer consider frequently. 7. Company should strength body of car because at mostly respondent fear of Narrow Road car can easily destroyed & this thing should be consider and give proper attention on body strength. 8. Most of my respondents preferring to purchase Nano car at the Place of 2nd hand costly Nano car on same price range. 9. Engine capacity is still issue for my respondents which have needed to clear about it & use standard engine which fulfill needs of customer. 10. Design of car should like this during peak hour of traffic car can move in minimum space.

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BIBLIOGRAPHY

69

BIBLOGRAPHY

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5LT 3L 1L 25 15 10 11 17 20 12 30 A B 5 0 MA PR De In AN Vis CO RE DA ED DE Re

KE ES dic this AL itin LL SE UC TA OA TO VE FIN sponse TH EN atio stag YZ g3L EC AR AT PR BO 5L LO forE

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