Potential Market For TATA Nano

Potential Market for TATA Nano
INTRODUCTION
Tata Motors Limited is India's largest automobile company, with revenues of

Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in
commercial vehicles in each segment, and the second largest in the
passenger vehicles market with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's
fifth largest medium and heavy commercial vehicle manufacturer, and
the world's second largest medium and heavy bus manufacturer.
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 is spread across
India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west,
and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand).
The nation-wide dealership, sales, services and spare parts network
comprises over 2,000 touch points. The company also has a strong auto
finance operation, TML Financial Services Limited, supporting customers to
purchase Tata Motors vehicles.
In India there are 100 people per vehicle, while this figure is 82 in China. It
is expected that Indian automobile industry will achieve mass motorization
status by 2014.
Since the first car rolled out on the streets of Mumbai (then Bombay) in
1898, the Automobile Industry of India has come a long way. During its
early stages the auto industry was overlooked by the then Government and
the policies were also not favorable. The liberalization policy and various
1
tax reliefs by the Govt. of India in recent years have made remarkable
impacts on Indian Automobile Industry. Indian auto industry, which is
currently growing at the pace of around 18 % per annum, has become a hot
destination for global auto players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development

of an economy, and India is no exception to it. With the growth of
transportation system the Automotive Industry of India is also growing at
rapid speed, occupying an important place on the 'canvas' of Indian
economy.
Today Indian automotive industry is fully capable of producing various

kinds of vehicles and can be divided into 03 broad categories: Cars, two-
wheelers and heavy vehicles.
Segment :
Among the two-wheeler segment, motorcycles have major share in the

market. Hero Honda contributes 50% motorcycles to the market. In it Honda
holds 46% share in scooter and TVS makes 82% of the mopeds in the
country.
In commercial vehicle, Tata Motors dominates the market with more than
60% share. Tata Motors is also the world's fifth largest medium & heavy
commercial vehicle manufacturer.
2
INDIAN AUTOMOBILE HISTORY:
During the 1920s, cars exhibited design refinements such as balloon tires,
pressed-steel wheels, and four-wheel brakes.
In Brief:
The origin of automobile is not certain. In this section of automobile history,
we will only discuss about the phases of automobile in the development and
modernization process since the first car was shipped to India. We will start
automotive history from this point of time.
The automobile industry has changed the way people live and work. The
earliest of modern cars was manufactured in the year 1895. Shortly the first
appearance of the car followed in India. As the century turned, three cars
were imported in Mumbai (India). Within decade there were total of 1025
cars in the city. The dawn of automobile actually goes back to 4000 years
when the first wheel was used for transportation in India. In the beginning of
15th century Portuguese arrived in China and the interaction of the two
cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered
engine models was developed, but it took another century before a full-sized
engine-powered vehicle was created.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back
door that suited more to the needs of families. In 1930s, vehicles were less
boxy and more streamlined than their predecessors. The 1940s saw features
3
like automatic transmission, sealed-beam headlights, and tubeless tires.
STATEMENT OF THE PROBLEM:
Potential market for TATA Nano
OBJECTIVES OF STUDY:
1. To know potential market for TATA Nano
2. To know which income level people are willing to buy TATA Nano
3. To know whether TATA Nano is suitable for the business uses
4. To know the impact of the TATA Nano in local car market
NEED FOR THE STUDY:
This survey helps the researcher to understand the potential market for Tata
Nano, as well as why the consumers are ready to buy and also helps the
respondents to take the correct decision, choosing the appropriate place for
their valuable money. The basic need of undertaking this survey is to submit
a project report to the institute as the part of the academics.
4
METHODOLOGY:
From 2 sources data can be collected
⇒ External sources.
⇒ Internal sources.
This data can be classified into
 Primary data
 Secondary data
Primary data have been collected directly with the help of questioners or
by survey method.
The secondary data have been collected from the internet and Maxine’s.
Sample Size: 100 Respondents
Sample Area: Hubli (Vidyanagar)
Sampling Technique: Non- probability sampling – (Judgmental)
5
ANALYSIS OF DATA (TOOLS):
The data and information obtained from the respondents are put into spss
form. Then the data is been organized in such a way that they would yield
specific results to the objective of the study. The data is organized in the
tally marks and various charts, graphs & pie charts that will help to have
overview of the fact and figures. All the work is done under the data, which
is collected, form the respondents. From the process data the research loudly
speaks of its findings and implications that aid in arriving at a conclusion
LIMITATIONS:
• All experienced things can’t put on the paper.

• It is conducted in open market, things tend to change rapidly.
• Because of the busy schedule respondents may not have answered
properly which may not hold true in case they would have been given
lot of time to answer.
• The research was conducted in Hubli city only, so analysis and
recommendations may not be applicable to other cities.
• Sample size was 100; I feel this small size cannot represent the whole
consumer’s opinion.
6
• The time period was between July 10th 2009 to August 18th 2009, For
30 days
OVERVIEW OF AUTOMOBILE INDUSTRY
In India there are 100 people per vehicle, while this figure is 82 in China. It
is expected that Indian automobile industry will achieve mass motorization
status by 2014.
Industry Overview:
Since the first car rolled out on the streets of Mumbai (then Bombay) in
1898, the Automobile Industry of India has come a long way. During its
early stages the auto industry was overlooked by the then Government and
the policies were also not favorable. The liberalization policy and various
tax reliefs by the Govt. of India in recent years has made remarkable impacts
on Indian Automobile Industry. Indian auto industry, which is currently
growing at the pace of around 18 % per annum, has become a hot
destination for global auto players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development

of an economy, and India is no exception to it. With the growth of
transportation system the Automotive Industry of India is also growing at
rapid speed, occupying an important place on the 'canvas' of Indian
7
economy.
Today Indian automotive industry is fully capable of producing various

kinds of vehicles and can be divided into 03 broad categories: Cars, two-
wheelers and heavy vehicles.
Snippets:
• The first automobile in India rolled in 1897 in Bombay.

• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto
industry.
• Within two-wheelers, motorcycles contribute 80% of the segment
size.
• Unlike the USA, the Indian passenger vehicle market is dominated by
cars (79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle
market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the
world.
• The number one global motorcycle manufacturer is in India.
8
• India is the fourth largest car market in Asia - recently crossed the 1
million mark.
Segment:
Among the two-wheeler segment, motorcycles have major share in the

market. Hero Honda contributes 50% motorcycles to the market. In it Honda
holds 46% share in scooter and TVS makes 82% of the mopeds in the
country.
40% of the three-wheelers are used as goods transport purpose. Piaggio

holds 40% of the market share. Among the passenger transport, Bajaj is the
leader by making 68% of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has
52% share in passenger cars and is a complete monopoly in multi purpose
vehicles. In utility vehicles Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than
60% share. Tata Motors is also the world's fifth largest medium & heavy
commercial vehicle manufacturer.
Miscellaneous:
9
Hyderabad, the Hi-Tech City, is going to come up with the first automobile
mall of the country by the second half of 2008. It would be set up by city-
based Prepay Engineers Syndicate in area of more than 35 acres. This 'Auto
polis' would have facilities for automobile financing institutions and
insurance services to create a complete range of services required for both
auto companies and customers. It will also have a multi-purpose convention
centre for auto fairs and product launches.
INDIAN AUTOMOBILE HISTORY
During the 1920s, cars exhibited design refinements such as balloon tires,
pressed-steel wheels, and four-wheel brakes.
In Brief:
The origin of automobile is not certain. In this section of automobile history,
we will only discuss about the phases of automobile in the development and
modernization process since the first car was shipped to India. We will start
automotive history from this point of time.
The automobile industry has changed the way people live and work. The
earliest of modern cars was manufactured in the year 1895. Shortly the first
appearance of the car followed in India. As the century turned, three cars
were imported in Mumbai (India). Within decade there were total of 1025
cars in the city.
The dawn of automobile actually goes back to 4000 years when the first
10
wheel was used for transportation in India. In the beginning of 15th century
Portuguese arrived in China and the interaction of the two cultures led to a
variety of new technologies, including the creation of a wheel that turned
under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered
vehicle was created.
• By 2010, India is expected to witness over Rs 30,000 crore of

investment.
• Maruti Udyog has set up the second car with an investment of Rs
6,500 crore.
• Hyundai will bring in more than Rs 3,800 crore to India.
• Tata Motors will be investing Rs 2,000 crore in its small car project.
• General Motors will be investing Rs 100 crore and Ford about Rs 350
crore.
• Ashok Leyland and Tata Motors have each announced over Rs 1,000
crore of investment.
Why India
The economy of India is emerging. The following table shows the ranking
of India in the past four years.
Rank 2005 2004 2003 2002

1 China China China China
11
2 India Thailand Thailand Thailand

3 Thailand India USA USA
4 Vietnam Vietnam Vietnam Indonesia
5 USA USA India Vietnam
6 Russia Russia Indonesia India
7 Korea Indonesia Korea Korea
Twin Advantages:
• Scaling costs
• Optimizing resources
Note: Excellent source for IT based engineering solutions - for products &
process integration.
Facts & Figures

The automobile industry in India is on an investment overdrive. Be it
passenger car or two-wheeler manufacturers, commercial vehicle makers or
three-wheeler companies - everyone appears to be in a scramble to hike
production capacities. The country is expected to witness over Rs 30,000
crore of investment by 2010.
Over the next one year, some 20 new cars will be seen on Indian roads. Take
note of this, Maruti Udyog is coming up with new Zen and the diesel
version of Swift during the next few months. Hyundai will also be
unmasking the Verna and a brand new diesel car. General Motors will be
launching a mini and may be a compact car.
12
Most of the companies have made their intentions clear. Maruti Udyog has
set up the second car plant with a manufacturing capacity of 2.5 lakh units
per annum for an investment of Rs 6,500 crore (Rs 3,200 crore for diesel
engines and Rs 2,718 crore for the car plant itself). Hyundai and Tata
Motors have announced plans for investing a similar amount over the next 3
years. Hyundai will bring in more than Rs 3,800 crore to India.
Toyota announced modest expansion plans even as Honda Seal has

earmarked Rs 3,000 crore over the next decade for India - a sizeable chunk
of this should come by 2010 since the company is also looking to enter the
lucrative small car segment.
Some new entrants will also taste the water. They are the big names in
passenger cars like Citroen, Volkswagen AG, Nissan (separately, apart from
its tie-up with Suzuki), Alfa Romeo, Maserati, Land Rover and Aston
Martin.
Talking about the commercial vehicle segment, Ashok Leyland and Tata
Motors have each announced well over Rs 1,000 crore of investment.
Mahindra & Mahindra's joint venture with International Trucks are expected
In two-wheelers segment, Chinese bike major Lifar and the iconic US brand
Harley-Davidson are expected to enter India soon. Hero Honda is about to
establish its fourth manufacturing plant. Bajaj Auto and TVS Motors are
moving to the excise-free zones of Himachal Pradesh and Uttaranchal for
putting up new capacity.
13
INDIAN AUTOMOBILE INDUSTRY GROWTH:
The passenger car and motorcycle segment in Indian auto Industry is

growing by 8-9 per cent.
Current Scenario:
• The Indian automobile industry crossed a landmark with total vehicle

production of 10 million units.
• Car sales was 8, 82,094 units against 8, 20,179 units in 2004-05.
• The two-wheeler market grew by 13.6 per cent with 70, 56,317 units
against 62, 09,765 units in 2004-05.
• Commercial vehicles segment grew at 10.1 per cent with 3, 50,683
units against 3, 18,430 units in 2004-05.
• India, sourcing base for global auto majors.
Facts & Figures:

India, in auto sector, is turning to be a sourcing base for the global auto
majors. The passenger car and the motorcycle segment is set to grow by 8-9
per cent in coming couple of years, says the ICRA report. The industry is
14
likely to maintain the growth momentum picked up in 2002-03.
The ICRA's analysis points on the auto sector that the passenger car market
in the country was inching towards cars with higher displacements. The
sports-utility-vehicle (SUV) that was getting crowded everyday, would
witness intense competition as many SUVs had been competitively priced.
Honda, Suzuki, General Motors and Hyundai, the global automakers had
already launched their premium SUVs in the market to broaden their
portfolio and create product excitement in the segment estimated at about
10,000 units annually.
In the two-wheeler segment, according to the report, the motorcycles would

clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and
mopeds. Scooters sales would decelerate and mopeds would also see the
same. Overseas market would present huge opportunities for the two-
wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent.
Heavy commercial vehicles market would rise at 5.5 per cent and sales of
light buses and trucks would achieve 4.7 per cent growth. For the tractors,
the report predicts a growth at 4.6 per cent.
Indian Auto Market Growth for the year 2005-06
• The domestic automobile industry sales grew 12.8 per cent at 89,
10,224 units as against 78, 97,629 units in 2004-05.
15
• The automotive industry crossed a landmark with total vehicle

production of 10 million units.
• According to the Society of Indian Automobile Manufacturers
(SIAM), car sales was 8, 82,094 units against 8, 20,179 units in 2004-
05.
• The growth of domestic passenger car market was 7.5 per cent
• Car exports stood at 1, 70,193 units against 1, 60,670 units in 2004-05
• The two-wheeler segment, the market grew by 13.6 per cent with 70,
56,317 units against 62, 09,765 units in 2004-05.
• Motorcycles had the upward march, 17.1 per cent in domestic market
touching 58, 15,417 units against 49, 64,753 units in 2004-05.
• Scooter segment grew by 1.5 per cent, fall at 9, 08,159 units against 9,
22,428 units in 2004-05.
• Medium and heavy commercial vehicles managed a growth of 4.5 per
cent against 23 per cent growth in the year ended March 31, 2005.
• Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237
units against 1, 19,924 units in 2004-05.
• Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3,
07,862 units in 2004-05.
Market Advantage:
• Fast paced urbanization to rise from 28% to 40% by 2020.

• Upward migration of household income levels.
• Middle class expanding by 30-40 million every year.
• Growing working population.
16
Vehicle Production in India:
India is the 11th largest Passenger Cars producing countries in the world and
4th largest in Heavy Trucks
Indian Market Analysts are jubilant over the fact that India has the fastest
growing automobile industry (passenger cars segment) in the world today.
This is seen as the result of rapid increase of middle-class population
The findings of International Organization of Motor Vehicle Manufacturers
revealed that in India the car production had grown to 30% in 2004, thus
leading the table, Brazil came a distant second with the increase of 17%.
Automobile Industry is the largest industry in India with an impressive
growth in the last two decades. The reason behind the growth was abolition
of licensing in 1991 and permitting automatic approval and successive
liberalization of the sector.
According to estimation the compound annual growth rate (CAGR) of

Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008
million by 2010. The figure for FY05 was 8.45 million units. To tap this
large opportunity, the Indian Auto Companies along with the global giants
have announced huge expansion plans.
Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06

followed by Tata Motors. Hyundai did well but the difference was nearly
half of Tata Motors.
Current Scenario:
17
• The growth rate of Passenger Cars in 2004 was 30% in India where as
the average growth rate of top 12 Passenger Cars producing countries
were just 5.1%. In Heavy Trucks it was 32% and 14.6% respectively.
• Component industry's growth was only 9% between 1997-2000. But
between 2000-2005, it has grown to 20%. It is projected 17% between
2005-2014.
• Largest industry in India.
Production of 4-Wheelers
Types of Vehicle 2002-03 2003-04 2004-05 2005-06
Passenger Vehicles 557400 782550 960480 1045880
Utility Vehicles 114470 146330 182020 196380
Multipurpose Vehicles 51450 60670 67370 66665
Total 723320 989550 129870 1308925
PROFILE OF THE ORGANISATION
RATAN TATA:
Under him the Tata Engineering and locomotive company was incorporated
in the year 1945 in Jamshedpur for the manufacture of commercial vehicles.
The company's manufacturing base is spread across India - Jamshedpur
(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in
Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being
set up in Singur (close to Kolkata in West Bengal) to manufacture the
company's small car
18
Tata Motors Limited is India's largest automobile company, with revenues

of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in
commercial vehicles in each segment, and the second largest in the
passenger vehicles market with winning products in the compact, midsize
car and utility vehicle segments. The company is the world's fifth largest
medium and heavy commercial vehicle manufacturer, and the world's
second largest medium and heavy bus manufacturer.
The company's 22,000 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." Tata Motors helps its employees realize their
potential through innovative HR practices. The company's goal is to
empower and provide employees with dynamic career paths in congruence
with corporate objectives. All-round potential development and
performance improvement is ensured by regular in-house and external
training. The company has won several awards recognizing its training
programmers.
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 is
spread across India - Jamshedpur (Jharkhand) in the east, Pune
(Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and
Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to
Kolkata in West Bengal) to manufacture the company's small car. The
nation-wide dealership, sales, services and spare parts network comprises
over 2,000 touch points. The company also has a strong auto finance
19
operation, TML Financial Services Limited, supporting customers to

purchase Tata Motors vehicles.
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. In 2004, it acquired the Daewoo
Commercial Vehicles Company, 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, with an option to acquire the
remaining stake as well. Hispano's presence is being expanded in other
markets. In 2006, it formed a joint venture with the Brazil-based Marco
polo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India and select international
markets. Tata Motors also entered into a joint venture in 2006 with
Thonburi Automotive Assembly Plant Company of Thailand to
manufacture and market the company's pickup vehicles in Thailand. In
2006, Tata Motors and Fiat Auto formed an industrial joint venture at
Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and
Tata cars and Fiat power trains for the Indian and overseas markets; Tata
Motors already distributes and markets Fiat branded cars in India. In 2007,
Tata Motors and Fiat Auto entered into an agreement for a Tata license to
build a pick-up vehicle bearing the Fiat nameplate at Fiat Group
20
Automobiles' Plant at Córdoba, Argentina. The pick-up will be sold in

South and Central America and select European markets.
These linkages will further extend Tata Motors' international footprint,

established through exports since 1961. While currently about 18% of its
revenues are from international business, the company's objective is to
expand its international business, both through organic and inorganic
growth routes. The company's commercial and passenger vehicles are
already being marketed in several countries in Europe, Africa, the Middle
East, Australia, South East Asia and South Asia. It has assembly operations
in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company’s growth 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. The R&D
establishment includes a team of 1400 scientists and engineers. The
company's Engineering Research Centre was established in 1966, and has
facilities in Pune, Jamshedpur and Lucknow. The ERC 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. Within two years of launch, Tata Indica
became India's largest selling car in its segment. The ERC in Pune, among
whose facilities are India's only certified crash-test facility and hemi-
anechoic chamber for testing of noise and vibration, has received several
awards from the Government of India. Some of the more prominent
amongst them are the National Award for Research and Development
21
Efforts in Industry in the Mechanical Engineering Industries sector in

1999, the National Award for Successful Commercialization of Indigenous
Technology by an Industrial Concern in 2000, and the CSIR Diamond
Jubilee Technology Award in 2004.
The company set up the Tata Motors European Technical Centre (TMETC)
in 2005 in the UK. TMETC is engaged in design engineering and
development of products, supporting Tata Motors' skill sets. Tata Daewoo
Commercial Vehicle Company and Hispano Carrocera also have R&D
establishments at Gunsan in South Korea and Zaragoza in Spain.
The pace of new product development has quickened through an

organization-wide structured New Product Introduction (NPI) process. The
process with its formal structure for introducing new vehicles in the market
brings in greater discipline in project execution. The NPI process helped
Tata Motors create a new segment, in 2005, by launching the Tata Ace,
India’s first indigenously developed mini-truck. 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.
Through its subsidiaries, the company is engaged in engineering and

automotive solutions, construction equipment manufacturing, automotive
vehicle components manufacturing and supply chain activities, machine
tools and factory automation solutions, high-precision tooling and plastic
and electronic components for automotive and computer applications, and
automotive retailing and service operations.
22
True to the tradition of the Tata Group, Tata Motors is committed in letter
and spirit to Corporate Social Responsibility. It is a signatory to the United
Nations Global Compact, and is engaged in community and social
initiatives on labor and environment standards in compliance with the
principles of the Global Compact. In accordance with this, it plays an
active role in community development, serving rural communities adjacent
to its manufacturing locations.
With the foundation of its rich heritage Tata Motors today is etching a
refulgent future.
Tata Motors (Previously known as Tata Engineering and Locomotive Co) is

the youngest passenger car company in the world. It was established in the
year 1945. Initially, they were into the manufacturing of trains. However,
Tata motor is solely responsible for showcasing India's automotive industry
to the rest of the world. It did so by designing and developing its own
indigenous cars and thus placing India on the world automobile map. Tata
Motors much like its parent company (Tata Group) has far fetched vision
and always thrives for excellence.
It was established with a vision of becoming a global car manufacturer from

India. And today, it has indeed achieved its feat of becoming a global player
in the automobile industry. It has a wide range of automobiles varying from
commercial vehicles to passenger vehicles to multi-utility vehicle etc. Tata
Motors is very committed to issues like Corporate Social Responsibility,
Human Rights, Labor, and Environmental Standards. They are partners to
the United Nations Global Compact.
23
Tata Motors is India's largest automobile company and the sixth biggest
commercial vehicle manufacturer in the world. In the year 2004, it became
the first Indian Engineering Company to be listed in the New York Stock
Exchange. The company had earned revenue of Rs 24,000 crores for the
financial year of 2005-06. Hence, making its' presence felt on the Indian
roads on a regular basis. Since, 1954 (when the first Tata vehicle was
launched) till today, over 3.5 million Tata vehicles ply on the Indian roads.
Today, Tata is a global player having markets in Europe, Africa, South Asia,
South East Asia, Middle East and Australia. This leap in the global market
started from 1961. Once, the export division was established.
Tata Motors initially started by manufacturing trucks by collaborating with
Daimler Benz of Germany form 1954 till 1969. At that point of time, the
trucks that were manufactured were known as Tata Mercedes-Benz Trucks.
However, after the collaboration period was over, the trucks were then
called Tata Trucks.
But it was just the starting for them. Later, in the early 90's they entered the
passenger vehicle segment by launching the Tata sierra, (India's first sports
vehicle) and the Tata Estate. However, the biggest achievement came later
in 1998, when Tata developed the first indigenously developed small car of
India called the Tata Indica. And then Tata Indigo was launched in 2002.
The name "Indica" came from the words "India's Car". And very soon Tata
Indica became the most popular car in this segment. Then, later in 2005 they
launched India's first indigenously developed Mini- Truck called the Tata
Ace.
24
Recently, in order to fulfill its global dream, Tata Motors has acquired the
Daewoo Commercial Vehicles Company, Korea's second largest truck
manufacturer, in the year 2004. In 2005, they acquired 21% stake in
Hispano Carrocera, a Spanish bus and coach manufacturer. They have
manufacturing plants in Jamshedpur, Pune and Lucknow. They also have
assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine,
Russia and Senegal.
The success story of Tata Motors can be based on the facts that they have
excellent foresight, they understand the needs and the wants of their
customers very well, they have a well organized and efficient R&D
department and that they have high aims and standards which are fulfilled
but not at the cost of quality and efficiency.
AREAS OF BUSINESS:
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.
Utility vehicles;
The company entered the mini-truck segment in 2005 with Tata Ace. The
commercial vehicle range extends from the light two-tone truck to heavy
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dumpers and multi-ax led 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.
Research and development:

Tata Motors has over 1400 engineers and scientists in six R&D centers in
India, South Korea, Spain and the UK. The company's R&D facilities
include India's only certified crash-test facility and a hemi-anechoic
chamber for testing of noise and vibration.
Exports:
Tata Motors' vehicles are exported to Europe, Africa, the Middle East, South
and South East Asia and South America. The company has joint ventures
and franchisee operations in Bangladesh, Ukraine, Kenya, Russia and
Senegal.
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 Córdoba, Argentina.
26
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.
• Tata Motors European Technical Centre is a UK-based 100 per cent
subsidiary engaged in design engineering and development of
products.
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
27
towards Sustainable Development' and the 'Golden Peacock Award for

Corporate Social Responsibility'.
Tata Motors has led the Indian automobile industry's anti-pollution 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.
Manufacturing Units:
Tata Motors owes its leading position in the Indian automobile industry to
its strong focus on indigenization. This focus has driven the Company to set
up world-class manufacturing units with state-of-the-art technology. Every
stage of product evolution-design, development, manufacturing, assembly
and quality control, is carried out meticulously. Our manufacturing plants
are situated at Jamshedpur in the East, Pune in the West and Lucknow in the
North.
Jamshedpur:
Established in1945, the Jamshedpur unit was the company's first unit and is
spread over an area of 822 acres. It consists of 4 major divisions - Truck
Factory, Engine Factory, Cab & Cowl Factories, and the Novus.
28
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri (800 acres)
and Chinchwad (130 acres). It was established in 1966 and has a
Production Engineering Division, which has one of the most versatile tool
making facilities in the Indian sub-continent.
Lucknow:
Tata Motors Lucknow is one of the youngest production facilities among
all the Tata Motors locations and was established in 1992 to meet the
demand for Commercial Vehicles in the Indian market.
instead of purchasing a bike will you prefer to go for Nano?
Cumulative
Frequency Percent Valid Percent Percent
Valid Cant say 4 4.0 4.0 4.0
No 15 15.0 15.0 19.0
Yes 81 81.0 81.0 100.0
Total 100 100.0 100.0
29
100
80
60
40
Frequency
20
0
Cant say No Yes
instead of purchasing a bike will you prefer to go for Nano?
INTERPRETATION: 81% of population agrees to purchase Nano instead

of going for bike where as 15% says no and 4 % of them say cant say. So
most of the population would like to go for Tata Nano
Is cost inspires you to go for the nano?
Cumulative
Valid not at all important 3 3.0 3.0 3.0
not important 12 12.0 12.0 15.0
average 7 7.0 7.0 22.0
important 24 24.0 24.0 46.0
highly important 54 54.0 54.0 100.0
Total 100 100.0 100.0
30
Is cost inspires you to gofor the nano?

60
50
40
30
Frequency
20
10
0
not at all important average highly important
not important important
Is cost inspires you to go for the nano?
INTERPRETATION: 54% population agrees to satisfy the consumer’s cost

comfortable highly important, where as 24% says important, 12% says not
important, 7% average and 3% says not at all important. So many customers
would like to attractive to buy the Nano car.
Is design inspires you to go for the nano?
Cumulative
Valid average 2 2.0 2.0 2.0
important 54 54.0 54.0 56.0
Total 100 100.0 100.0
31
Isdesigninspiresyoutogofor nano?
60
50
40
30
Frequency
20
10
0
average important highly important
Isdesigninspiresyoutogofor thenano?
INTERPRETATION: 44% of customer Says it is highly important, 54% of

the Nano customer says it is important & only 2% of the customer says it is
Average.
32
Is mileage inspires you to go for the nano?
Cumulative
important 54 54.0 54.0 58.0
Total 100 100.0 100.0
Ismileageinspiresyoutogofor nano?
60
50
40
30
Frequency
20
10
0
Ismileageinspiresyoutogofor thenano?
INTERPRETATION: 54% of the customers say the mileage is important,

whereas 42% of the Nano Customers says it is highly important, & 4% of
the Customer says the Mileage is Average.
33
Is comfortab inspires you to go for the nano?
Cumulative
Valid not important 1 1.0 1.0 1.0
average 3 3.0 3.0 4.0
important 65 65.0 65.0 69.0
Total 100 100.0 100.0
70
60
50
40
30
Frequency
20
10
0
average highly important
Is comfortabinspiresyoutogofor thenano?
INTERPRETATION: 65% of the customers are says they are comfortable,

where as 31% of the customers say they are highly comfortable, 3% of the
customers are not comfortable.
34
Is engine capacity inspires you to go for TATANano
Cumulative
important 59 59.0 59.0 62.0
Total 100 100.0 100.0
70
60
50
40
30
Frequency
20
10
0
Is enginecapacity inspires youtogofor TATANano
INTERPRETATION: 59% of the customers are says they are Engine

capacity, where as 38% of the customers say they are highly imp, 3% of the
customers are average.
35
Is Offers inspires you to go for the nano?
Cumulative
average 6 6.0 6.0 8.0
important 61 61.0 61.0 69.0
Total 100 100.0 100.0
Is Offers inspires youtogofor nano?

70
60
50
40
Frequency
30
20
10
0
average highly important
Is Offersinspiresyoutogofor thenano?
INTERPRETATION: 61% of the customers are says they are offer, where
as 31% of the customers say they are highly comfortable, 2% of the average
and 6% of the customers are not important.
36
Is brand image inspires you to go for the nano?
Cumulative
average 1 1.0 1.0 2.0
important 58 58.0 58.0 60.0
Total 100 100.0 100.0
70
60
50
40
30
Frequency
20
10
0
average highlyimportant
37
INTERPRETATION: 58% of the customers are says important they are

brand image, where as 40% of the customers say they are highly imp, 1% of
the customers are not imp and average 1%.
Is availability inspires you to go for the nano?
Cumulative
Valid not at all important 1 1.0 1.0 1.0
not important 2 2.0 2.0 3.0
average 3 3.0 3.0 6.0
important 70 70.0 70.0 76.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
not at all important average highly important
Is availability inspires youtogofor thenano?
38
INTERPRETATION: 70% of the customers are says they are availability,

where as 24% of the customers says they are highly available, 2% of the
customers are not available, 1% of the not at all important and 3% of the
average.
3.
do you like to give this car to your children
Cumulative
Valid No 81 81.0 81.0 81.0
Yes 19 19.0 19.0 100.0
Total 100 100.0 100.0
39
100
80
60
40
Frequency
20
0
No Yes
do you like to give this car to your children
INTERPRETATION: 19% of the customer says that they are going to give a
car to there children, and 81 % of the customers says that there not ready to
give a car to there children.
do you like to use this car for your family purpose
Cumulative
Valid No 60 60.0 60.0 60.0
Yes 40 40.0 40.0 100.0
Total 100 100.0 100.0
40
do youliketouse this car for your family purpose

70
60
50
40
30
Frequency
20
10
0
No Yes
do you like to use this car for your family purpose
INTERPRETATION: 60% of the customers says that they are not ready to
use the car for family purpose, where as 40 % of the customers says that
they are ready to use the car for family purpose.
do you like to use this car for your business purpose
Cumulative
Valid No 62 62.0 62.0 62.0
Yes 38 38.0 38.0 100.0
Total 100 100.0 100.0
41
Yes
No
INTERPRETATION: 62% of the customers are not ready to use the car for
business purpose; where as 38% of the customers are ready to use the car for
business purpose
42
Do you like to use this car for your depending on sitution
Cumulative
Valid No 41 41.0 41.0 41.0
Yes 59 59.0 59.0 100.0
Total 100 100.0 100.0
No
Yes
INTERPRETATION: 59 % of the customers say that they are ready to use

the car in situation, where as 41% customers say that they are not ready.
43
can low level people buy the Nano
Cumulative
Valid No 91 91.0 91.0 91.0
Yes 9 9.0 9.0 100.0
Total 100 100.0 100.0
100
80
60
40
Frequency
20
0
No Yes
can low level people buy the Nano
INTERPRETATION: The Survey report shows that 9% of the people say

low level people can buy the car, where as 91% of the people say they can
not buy the car.
44
can middle level people buy the Nano
Cumulative
Valid No 9 9.0 9.0 9.0
Yes 91 91.0 91.0 100.0
Total 100 100.0 100.0
100
80
60
40
Frequency
20
0
No Yes
can middle level people buy the Nano
middle level people can buy the car, where as 9% of the people say they can
not buy the car.
45
can high level people buy the Nano
Cumulative
Valid No 50 50.0 50.0 50.0
Yes 50 50.0 50.0 100.0
Total 100 100.0 100.0
60
50
40
30
20
Frequency
10
0
No Yes
can high level people buy the Nano
middle level people can buy the car, where as 50% of the people say they
can not buy the car.
46
would you like prefer maruti 800 to buy
Cumulative
Valid No 59 59.0 59.0 59.0
Yes 41 41.0 41.0 100.0
Total 100 100.0 100.0
70
60
50
40
30
20
Frequency
10
0
No Yes
would you like prefer maruti 800 to buy
INTERPRETATION: 41% of the people says that they would like to prefer
Tata Maruti800 car to buy, where as 41 % of the people says they wont
prefer car to buy.
47
would you like prefer Tatanano to buy
Cumulative
Valid No 17 17.0 17.0 17.0
Yes 83 83.0 83.0 100.0
Total 100 100.0 100.0
100
80
60
40
Frequency
20
0
No Yes
would you like prefer Tatanano to buy
Tata Nano car to buy, where as 17 % of the people says they wont prefer car
to buy.
48
would you like prefer Indica to buy
Cumulative
Valid No 89 89.0 89.0 89.0
Yes 11 11.0 11.0 100.0
Total 100 100.0 100.0
100
80
60
40
Frequency
20
0
No Yes
would you like prefer Indica to buy
Indica car to buy, where as 89 % of the people says they wont prefer car to
buy.
49
would you like prefer other cars to buy
Cumulative
Valid No 98 98.0 98.0 98.0
Yes 2 2.0 2.0 100.0
Total 100 100.0 100.0
120
100
80
60
40
Frequency
20
0
No Yes
would you like prefer other cars to buy

others car to buy, where as 98 % of the people says they wont prefer car to
buy.
50
FINDINGS:
 Promotional activities are not carried out
 Major customers are professional and middle class people
 There is more scope for TATA Nano car and about the TATA group
 Tata is giving very good services for their customers
SUGGESTION:
• Employees should be increased in number to concentrate more

attentively towards customer.
• Giving good service and quick respond towards the complaint is also
increasing the sales and usage.
• Finally I hope TATA service is very good better then the other car
companies.
• The Hubli-Dharwad market is very large in compare to the market as

well as it is more challenging market.
51
• It is necessary for all the car major companies to provide those

products, which are easy to available and affordable to the consumers.
It is right that the profit margin is very low in the Nano products, but
at the same time the market size is much large in the Hubli-Dharwad
cities, as well as in India the companies can improve their product by
increases the costs on the advertising because the Hubli-Dharwad
consumers need attractive colors and service. Application of 4A* is
also a major task for the major companies in this area.
CONCLUSION:
There is wide scope for TATA Nano car because now days the standard
of living style is increasing day by day and the car rate also very less
compare to the other A’s segment cars so people are interested to buy the
Nano car.
As I analyzed the various data based on questionnaire, a fact has come into
light that Tata’s products are the most known and popular. Cheaper cost,
brand loyalty, good publicity and advertisement, the Hubli-Dharwad
consumers generally prefers the products of Tata’s in all segments. Accept it
people firstly prefer for good quality and comparatively low prices products.
52
BIBLIOGRAPHY:
Reference Books:
Marketing Management - Philip Kotler, K.D.Basava
Websites:
www.tatamotors.com
www.Indianautomobiles.com
www.carawle.com
Others:
News Paper & Magazines
53

Potential Market For TATA Nano

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Potential Market for TATA Nano

Tata Motors Limited is India's largest automobile company, with revenues of

A well developed transportation system plays a key role in the development

Today Indian automotive industry is fully capable of producing various

Among the two-wheeler segment, motorcycles have major share in the

INDIAN AUTOMOBILE HISTORY:

like automatic transmission, sealed-beam headlights, and tubeless tires.

STATEMENT OF THE PROBLEM: