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Introduction of Industry
The automotive industry in India is one of the largest automotive markets in the world. It had
previously been one of the fastest growing markets globally, but is currently experiencing flat
or negative growth rates. India's passenger car and commercial vehicle manufacturing
industry is the sixth largest in the world, with an annual production of more than 3.9 million
units in 2011. According to recent reports, India overtook Brazil to become the sixth largest
passenger vehicle producer in the world (beating such old and new auto makers as Belgium,
United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, and Brazil). Throughout the
course of 2011 and 2012, the industry grew 16-18%, selling around three million units. In
2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of
passenger cars.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the
second (after China) fastest growing automobile market in the world in that year. According
to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to
increase to 4 million by 2015, no longer 5 million as previously projected.
The majority of India's car manufacturing industry is based around three clusters in the south,
west and north. The southern cluster consisting of Chennai is the biggest with 35% of the
revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and
the northern cluster around the National Capital Region contributes 32%.Chennai, houses the
India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors,
Daimler, Caparo, Mini, and Datsun. Chennai accounts for 60% of the country's automotive
exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's
largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune,
Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda,
Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and
Force Motors having assembly plants in the area. Nashik has a major base of Mahindra and
Mahindra with a SUV assembly unit and an Engine assembly unit. Aurangabad with Audi,
Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in
the state of Gujarat with manufacturing facility of General Motors in Halol and further
planned for Tata Nano at their plant inSanand. Ford, Maruti Suzuki and Peugeot-Citroen
plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda
and Bangalore with Toyota are some of the other automotive manufacturing regions around
the country.
Industry History
The first car on India's roads in 1897. Until the 1930s, cars were imported directly, but in very
small numbers. An embryonic automotive industry emerged in India in the 1940s. Hindustan
was launched in 1942, long time competitor Premier in 1944. They built GM and Fiat
products respectively. Mahindra & Mahindra was established by two brothers in 1945, and
began assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the
Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. In 1953 an import
substitution programme was launched, and the import of fully built-up cars began to be
impeded. However, the growth was relatively slow in the 1950s and 1960s due to
nationalisation and the license raj which hampered the Indian private sector. Total restrictions
for import of vehicles were set and after 1970 the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a
major luxury item. In the 1970s price controls were finally lifted, inserting a competitive
element into the automobile market. By the 1980s, the automobile market was still dominated
by Hindustan and Premier, who sold superannuated products in fairly limited numbers.
During the eighties, a few competitors began to arrive on the scene.
To promote the auto industry the government started the Delhi Auto Expo which was had its
debut showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers
showing how the Indian Automotive Industry was absorbing new technologies and promoting
indigenous research and development for adapting these technologies for the rugged Indian
conditions. The 9 day show was marked by then Prime Minister Rajiv Gandhi.
COMPANY ANALYSIS
Name and Address of the Industry and Place of Registered Office
Tata Motors
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinationalautomotive manufacturing company headquartered in
Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include
passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It
is the world's seventeenth-largest motor vehicle manufacturing company, fourth-largest
truck manufacturer and second-largest bus manufacturer by volume.
Registered Office:
Bombay House 24, HomiMody Street, Mumbai 400 001
Tel: +91-22-6665 8282
Fax: +91-22-6665 7799
Email: inv_rel@tatamotors.com
Website: www.tatamotors.com
Type of Organization:Public and a subsidiary of the Tata Group.
Year of Incorporation
Established in 1945.
Tata entered the commercial vehicle sector in 1945 after forming a joint venture with
Daimler-Benz of Germany. After years of dominating the commercial vehicle market
in India, Tata Motors entered the passenger vehicle market in 1991 by launching the
Tata Sierra, a multi utility vehicle.
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Company Vision
Most admired by our customers, employees, business partners and shareholders for the
experience and value they enjoy from being with us.
Company Mission
To be passionate in anticipating and providing the best vehicles and experiences that excite
our customers globally.
Goal and Core Values
Inclusion
Integrity
Accountability
Customer
Innovation
Concern for the environment
Passion for excellence
Agility
About 66 percent of the equity capital of Tata Sons is held by philanthropic trusts endowed
by members of the Tata family. The largest of these trusts are the Sir Dorabji Tata Trust and
the Sir Ratan Tata Trust, which were created by the families of the sons of Jamsetji Tata, the
Founder.
Tata Industries
Tata Industries was set up by Tata Sons in 1945 as a managing agency for the businesses it
promoted. Following the abolition of the managing agency system, Tata Industries' mandate
was recast, in the early 1980s, to promote Tata's entry into new and high-tech businesses.
Tata Industries has initiated and promoted Tata ventures in several sectors, including control
systems, information technology, financial services, auto components, advanced materials,
telecom hardware and telecommunication services.
Senior Management
Name of Chairman& Non-Executive Director:Mr. Cyrus P Mistry
Executive Director (Commercial Vehicles): Mr. RavindraPisharody
Executive Director (Quality): Mr. Satish Borwankar
President and Chief Financial Officer: Mr. C Ramakrishnan
President and Head, Advanced and Product Engineering:Dr. Timothy Leverton
President (Passenger Vehicle Business Unit): Mr. MayankPareek
President (International Business CVBU & PVBU): Mr. Ranjit Yadav
Senior Vice President (Head Mfg Operations, CVBU): Mr. PrasannChobe
Senior Vice President (Product Planning & Program Management, PVBU): Mr. Girish
Wagh
Senior Vice President (Commercial, CVBU): Mr. R Ramakrishnan
Senior Vice President (Business Planning & Controlling): Mr. AbhijitGajendragadkar
Chief Human Resources Officer: Mr. GajendraChandel
Vice President (Internal Audit): Mr. NageshPinge
Scholarship Programmes
Co-Curricular activities
Aarogya
Addressing Malnutrition
Kaushalya
Vasundhara
Name of Products
Cars & Utility Vehicles
Tata Nano
Tata Bolt
Tata Zest
Tata Vista
Tata Indica
Tata Indigo
Tata Manza
Tata Safari Storme
Tata Safari Dicor
Tata Sumo Gold
Tata Movus
Tata Venture
Tata Xenon XT
Tata Aira
Tata Prima
Tata Construck
Tata Light Trucks
Tata M&HCV
Tata Pickups
Tata Super Ace
Tata Ace
Tata Buses
Tata Winger Platinum
Tata Winger
Tata Venture
Tata Magic
Tata Magic Iris
Tata Ace Zip
Tata Defence
Tata Ultra
Construction Company
Businessman
School
Individual Units
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Defence
Transport Company
MARKETING DEPARTMENT
Senior General Manager and Head of Sales & Marketing - M&HCVs at Tata
Motors: VinodSahay
Product Planning Department
Tata Motors owes its leading position in the Indian automobile industry to
its strong focus on indigenisation. 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.
Tata Motors entered the passenger vehicle market in 1991 with the
launch of the Tata Sierra.
In 2008 launched the Tata Nano, the world's most affordable car.
Generate Ideas
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Screen Ideas
Evaluate acceptance
Product mix
Product mix, also known as product assortment, refers to the total
number of product lines that a company offers to its customers.
Product Line
A group of related products manufactured by a single company is product
line. Product line of Tata Motors are:
Cars & Utility Vehicles
Tata Nano
Tata Bolt
Tata Zest
Tata Vista
Tata Indica
Tata Indigo
Tata Manza
Tata Safari Storme
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Tata Prima
Tata Construck
Tata Light Trucks
Tata M&HCV
Tata Pickups
Tata Super Ace
Tata Ace
Tata Buses
Tata Winger Platinum
Tata Winger
Tata Venture
Tata Magic
Tata Magic Iris
Tata Ace Zip
Tata Defence
Tata Ultra
Product Depth
Depth of a product mix pertains to the total number of variations for each product.
Variations can include size, flavor and any other distinguishing characteristic.
AutomobilesCommercial vehicles
Coaches
Buses
Construction equipment
Military vehicles
Automotive parts
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MARKETING STRATEGY
Market Potential
Tata Motors sales has surged by 48% in the last one year and the rally is likely to
continue.
Jaguar Land Rover will continue to be a major revenue and margin driver for the
company with continued sales growth.
Government change in India and a likely shift in monetary policy will support local
growth for cars and commercial vehicles.
Tata Motors is working on a strong pipeline of new products and technologies
keeping in view the changing market, customers' aspirations and regulatory needs.
The company is at an inflexion point with its entire product portfolio being
revamped with relevant and exciting products for their target customers. Initiatives
on cost-erosion and customer experience are being pursued with great rigor to help
transform the organization into a more competitive and profitable business in the
coming years.
Marketing Strategy
Product, Branding, and Advertising strategy leads Tata Motors Limited to become the
largest automobile producer in India market. It also focus to low income earner customers
by developing a product of low price.
Strategy Adopted: Tata Motors adopted both cost leadership and differentiation strategy.
Pricing Strategy
In case of TATA NANO, management used penetration pricing, since their objective was
market development by encouraging those people to use cars, who were previously unable
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PROMOTIONAL ACTIVITIES
Methods of Recruitment
Recruitment through advertising in newspapers, magazines, trade papers and internal
vacancy lists. It also makes college recruitment.
Selecting Procedure
Interview
Psychometric testing assessing the personality of the applicants.
Aptitude testing assessing the skills of applicants.
In-tray exercise activity based around what the applicant will be doing, e.g. writing
a letter to a disgruntled customer.
Presentation looking for different skills as well as the ideas of the candidate.
Induction Programme
The Tata Management Training Centre (TMTC) is the learning arm of the Tata group's
human resources function. Established in 1966 in Pune, India, TMTC has developed into
one of the leading management training institutes in the country, with national and
international tie-ups. Over the years, TMTC has organised programmes on almost every
subject relevant to the development of corporate managers.
provides young managers multiple opportunities for professional growth and makes
them part of a talent pool that could be tapped by companies across the Tata
organisation.
Tata Business Leadership Award: Initiated in 2004, this an annual business school
event organised by the Tata group. It offers students from select management
institutions a unique opportunity to compete with the brightest and display their
business acumen.
Training Method
On the job training:
Management Development
The management development program are:
fulfil.
Tata Management Training Centre-Set up by JRD Tata in 1959 with the mission of
creating and grooming leaders for the future.-It aims to provide training to high
performers within the group and act as a catalyst of change for Tata executives.
Welfare Measures
Canteen Facility
Hospital
Education
Medical Reimbursement
Transportation
Housing
Maternity/Paternity leave
Insurance
Bonus
Compensation policy
It includes Pay for person, position & performance
Mode of Promotion
Employee promotion is based on Merit basis.
Performance Appraisal Technique
Performance Appraisal is defined as the process of assessing the performance and progress
of an employee or a group of employees on a given job and his / their potential for future
development. It is done by:
Establishing performance standards
Communicating the Standards
Measuring Performance
Comparing the actual with the standards
Discussing the appraisal
Taking Corrective Action
The methods used are:
In 2010 Tata motors signed a wage agreement with the Tata Motors Employees
Union in Pune. The companys Commercial Vehicles Business Unit has given its
workers a salary hike of Rs. 6,501.
FINANCE DEPARTMENT
Function of Department
Source of Fund
Tata Motors Limited is India's largest automobile company, with consolidated total
revenues of Rs. 233,662 crores (USD 38.6 billion) in 2013-14.
Non-Convertible Debenture & Long Term Borrowing, Short Term Loans.
Share capital, Reserve & Surplus.
Units Produced
443,202
562,224
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Units Sold
432,600
587,946
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Environmental Policy
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Quality Policy
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CORPORATE
India's 2nd Most Reputed Company in the Nielsen Corporate Image Monitor (CIM)
Study 2012-13.
India's Most Valuable Corporate Brand in the annual study done by Brand Finance.
Accredited with the 'Sustainable Plus' marque (Gold category) the world's first
Corporate Sustainability label by CII.
Forbes Fab50 list of the best publicly traded companies in Asia-Pacific, for thriving
amid decelerating growth in Asia.
Star Performer Award 2011-12 by Indian Engineering Export Promotion Council
(EEPC).
Bankers Choice Award at the Asian Banker Leadership Awards 2012.
Golden Peacock Global Award for Sustainability 2012 for significant contribution
towards corporate sustainability.
ET Now World CSR Award for Best CSR Practice.
Only Indian company to feature among top 15 in R&D in emerging economies
OECD Inclusive Development Report.
Best Learning Organisations of Asia (2011-12).
Annual Gartner Top 25 Asia Pacific Supply Chain Organisations 2012.
Most Preferred CV of the Year at the Northeast Consumer Awards 2012.
IT Business Excellence Award by the Computer Society of India.
Rural Marketing Association of India Award for Best CSR by a Brand & Best Longterm Rural Communication Initiative.
Champions of the Champions trophy at the Association of Business Communicators
of India (ABCI) Awards.
BRANDS
The Tata Indigo eCS enters Limca Book of Records for a non-stop nation-wide
endurance drive, across 19 states, covering over 14,000 kms, in just 15 days.
Tata Nano rated Most Trusted 4-wheeler brand - Brand Trust Report India Study
2013 and 2nd most trusted brand (4-wheeler) - ET Brand Equity Survey 2012.
MANUFACTURING
Tata Motors PVBU plants, Pune & Ahmedabad were conferred the pinnacle Safety
Award - Sword of Honour Award - by the British Safety Council (UK).
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Year
2015
13991.02
2014
9892.61
2013
13516.50
2012
9273.62
2011
2240.08
Year
(X-Average profit)
(X-Average profit)^2
2015
13991.02
4208.218
17709098.74
2014
9892.61
109.808
12057.79686
2013
13516.50
3733.698
13940500.76
2012
9273.62
(509.182)
259266.3091
2011
2240.08
(7542.722)
56892655.17
(0.18)
88813578.78
N=5
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ANNEXTURE
Organizational Structure
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Tata Motors Distribusi Indonesia launched the Prima Truck at the IIMS 214. At the launch
event, Mr Ravi Pisharody, ED, Commercial Vehicles handed over the first Prima Truck to a
customer.
Team Tata Motors and Team Elsecom, at the launch of the Tata Motors Passenger Cars in
Algeria.
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