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PROJECT REPORT
ON
Submitted by:
Azli Naaz
Roll No.: 0200776
Batch : BBA 2009-12
A
PROJECT REPORT
ON
Acknowledgement
I would like to express my sincere gratitude and regards to my external
guide Mr. Gaurav Kapoor for his constant inspiration, supervision and
invaluable guidance during the training. I would also like to thank
Mr. Saurabh Kataria, Joint General Manager of Tata Motors, Lucknow for
giving me such an opportunity to continue my training in the Tata Motors,
Lucknow and providing the facility.
At last I would also like to extend my sincere gratitude to all my
faculty members and specially Mr. Rohit Puri for giving their valuable
suggestions.
With regards
Signature of Student
Preface
A professional course in (Bachelor of business administration) is
incomplete unless the theoretical knowledge acquired in the class room is
backed up by practical exposure, as theories alone do not give perfection
to any discipline. The gap between theory and practiced is bridged by the
Project training, which has been an integral part of the syllabus.
This present Project report is an image of what I have done and observed
during my research project in Tata Motors, Lucknow
I was assigned a project in Tata Motors, Lucknow. This report is the result
of the work done during the training period...
STUDENT DECLARATION
TABLE OF CONTENTS
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial
joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat
and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts
network comprises over 3,500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile company. Through
subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea,
Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business comprising the
two iconic British brands that was acquired in 2008. JLR supports two state of the art
engineering and design facilities and three manufacturing plants (Solihull, Castle Bromwich &
Halewood) in the UK. In 2004, Tata Motors acquired the Daewoo Commercial Vehicles
Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial
Vehicles Company has launched several new products in the Korean market, while also
exporting these products to several international markets. Today two-thirds of heavy commercial
vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21%
stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the
remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata
Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building
for buses and coaches to manufacture fully-built buses and coaches for India and select
international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles
in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup
truck, with the Xenon having been launched in Thailand in 2008. Tata Motors (SA) (Proprietary)
Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd., has its assembly plant in
South Africa at Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The plant
can assemble, from semi knocked down (SKD) kits, light, medium and heavy commercial
vehicles ranging from 4 - 50 tonnes.
Tata Motors is also expanding its international footprint, established through exports since 1961.
The company's commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South
America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and
Senegal.
The foundation of the company's growth over the last 65 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 4,500 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world
have been looking forward to. The Tata Nano has been subsequently launched, as planned, in
India in March 2009. A development, which signifies a first for the global automobile industry,
the Nano brings the comfort and safety of a car within the reach of thousands of families.
Designed with a family in mind, it has a roomy passenger compartment with generous leg space
and head room. It can comfortably seat four persons. Its mono-volume design will set a new
benchmark among small cars. Its safety performance exceeds regulatory requirements in India.
Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall
pollutants, it has a lower pollution level than two-wheelers being manufactured in India today.
The lean design strategy has helped minimise weight, which helps maximise performance per
unit of energy consumed and delivers high fuel efficiency. 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.
In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping
with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In
their power, speed, carrying capacity, operating economy and trims, they will introduce new
benchmarks in India and match the best in the world in performance at a lower life-cycle cost. In
October 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover.
The Tata Aria redefines several benchmarks with its design and technologies, offering class
leading features that take comfort and safety to a new height.
Tata Motors is equally focussed on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
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.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas employability, education, health and environment. The activities touch the lives of
more than a million citizens. The company's support on education and employability is focused
on youth and women. They range from schools to technical education institutes to actual
facilitation of income generation. In health, our intervention is in both preventive and curative
health care. The goal of environment protection is achieved through tree plantation, conserving
water and creating new water bodies and, last but not the least, by introducing appropriate
technologies in our vehicles and operations for constantly enhancing environment care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
Definition
A recession is a decline in a country's gross domestic product (GDP) growth for two
or more consecutive quarters of a year. A recession is also preceded by several quarters of
slowing down.
Causes:
An economy which grows over a period of time tends to slow down the growth as a
part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go
into a recession for about six months to 2 years.
A recession normally takes place when consumers lose confidence in the growth of
the economy and spend less.
This leads to a decreased demand for goods and services, which in turn leads to a
decrease in production, lay-offs and a sharp rise in unemployment.
Investors spend less as they fear stocks values will fall and thus stock markets fall
on negative sentiment.
money to Indian markets. The whole of Asia would be hit by a recession as it depends on the US
economy. Asia is yet to totally decouple itself (or be independent) from the rest of the world.
October usually is considered to be the best month for car sales because of the festive
season. Unfortunately, this year it proved to be a curse for the Indian auto industry. At one end of
the spectrum, car manufacturers like Tata Motors, GM, Hyundai, Ford, Renault, Mahindra, and
Maruti Suzuki are investing huge amounts to establish new production plants and line up launch
of car models. At the other end of the spectrum, SIAM has cut down the growth forecast of
automotive sales from 12.5% to 9.5%.
This initiative taken by SIAM further forced few car manufacturers like Tata Motors
and Maruti Suzuki to cut down their production which further took away the job of almost 300
workers. Even Mahindra-Renault reduced the number of production units of their Logan.
In addition, the severe liquidity crunch in the U.S market has also forced many of the
car buyers to cut upgrades to bigger cars and many are pushed back from buying new cars. With
deteriorating car sales, even production has gone down to a great extent, which has eventually
put a negative impact on the auto component industry.
In October, overall car sales declined to about 9.05% over October 2007 and the car
production fell down to about 12.32%. Further to that even the month of November was not
successful in bringing some charm to the industry. Infact, November recorded the steepest fall in
car sales in the past five years.
Maruti Suzuki recorded a fall of 27%, Mahindra & Mahindra recorded a fall of about
40%, and Tata Motors showed 12% decline in the car sales.
It is also said that the recent Mumbai terror attack and the cyclonic rain in South India
have added to the woes of Indian car manufacturers.
Hyundai, a major automobile establishment of South Korea, has put in large sums of money in
India automobile market. As per its estimates, India auto industry could become a major center
for small car manufacturing organizations in future.
There are some other automobile companies of world who have shown interest in India auto
market. Major names among these are General Motors, Skoda Auto and Mercedes-Benz. These
companies have major plans lined up for India auto industry and are likely to invest a huge
amount of money in India automobile market
India domestic auto industry has been passing through a tough phase in 2008 and such a trend is
supposed to continue in 2009 as well. Leading members of India auto industry have forecast a
difficult path in 2009. Shinzo Nakanishi, managing director of Maruti Suzuki, has said that 2009
would present them with a number of challenges.
In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land
Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.The
purchase was completed on 2 June 2008
Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Ahmedabad and
Pune.
1. History
2.Cars
Tata Indica
After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle. After the
launch of three more vehicles, namely, Tata Estate (1992, a stationwagon design based on the
earlier 'TataMobile' [1989] a light commercial vehicle which some people may still think of as
Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports
utility vehicle); In 1998 Tata launched the Indica, the first fully indigenous passenger car of
India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy,
powerful engine and aggressive marketing strategy made it one of the best selling cars in the
history of the Indian automobile industry. A newer version of the car, named Indica V2, was a
major improvement over the previous version and quickly became a mass-favorite. A badge
engineered version of the car was sold in the United Kingdom as the Rover CityRover. 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. Note: In 1996-97 Tata launched the Tata
Sumo Deluxe and the Tata Sierra Turbo variants respectively.
3.Daewoo acquisition
Main article: Tata Daewoo Commercial Vehicle
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 worldwide. In 2004,
it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the
acquisition were:
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).
4. Joint ventures
Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi while
AC versions are used in Bangalore, Mumbai and Delhi alike
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21%
stake in Hispano Carrocera SA , Aragonese bus manufacturing company and introduced its highend inter-city buses in the country.
Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global
leader, lead by Brian Behrle, 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 Marcopolo will provide know-how in processes and systems for bodybuilding and
bus body design.
5. Tata Ace
6. 2007
Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009.
In 2007, Tata Motors generated revenues of Rs 31,884.69 crore.
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 Elegante concept-car during the Geneva Auto
Show.
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 a 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.
7.2008 onwards
8. Compressed air car
Motor Development International of Luxembourg has developed the world's first prototype of a
compressed air car, named OneCAT.In 2007, MDI owner Guy Negre was reported to have "the
backing of Tata"
It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In
2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3
minutes.There are no gasoline costs and no fossil fuel emissions from the vehicle when run in
town, but "the compressed air driving the pistons can be boosted by a fuel burner".
OneCAT 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 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car
but it is more efficient than any present Hybrid cars.
9. Tata Nano
Tata Nano
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 Rs. 1,00,000 (USD $2,000)The company unveiled
the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Bajaj
Auto and Mahindra-Renault have[when?] plans to launch cars in this price range.
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 strong opposition to the compulsory acquisition
of land for the proposed car factory in Singur West Bengal. NowTata Motors Limited plan to set
up the Nano factory in Sanand, Gujarat, because of the problems faced in West Bengal.
To solve this, Tata is goingto produce the E-Nano, an electric version, in partnership with
Miljbil Grenland AS
second quarter of 2008Tata will also gain the rights to the Daimler, Lanchester, and Rover brand
names.
In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in
UK. The key acquisition would be of the intellectual property rights related to the technologies.
11.Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle
Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica
would be launched locally in India in about 2010, without disclosing the price. The vehicle
would be launched in Norway in 2009.
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of Norway for
US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,
and plans to launch the electric Indica hatchback in Europe next year.
The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and
American markets.
With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its
intention to enter the sedan and sports car markets.
Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be
assembled in Thailand and Argentina.
Tata Prima was unveiled during the Geneva Motor Show in 2009. The Luxury Sedan was
designed by Pininfrina and has marked the entry of Tata into the international sedan market. The
car is to be sold in India by 2013 and around the world by 2015
Tata Motors has expanded its production and assembly operations to several other countries
including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in
Turkey, Indonesia and Eastern Europe.
13.Global brands
Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In
2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo
Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano
Carrocera SA, giving it controlling rights in the company.
On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford
Motor in a deal worth $2.3bn (1.15bn)Tata Motors has also acquired from Ford the rights to
three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that Tata was
in negotiations along with Fiat, General Motors and Renault-Nissan as a possible suitor for the
rapidly declining Chrysler, which is currently owned by Cerberus Capital Management 14.
Present global challenge
Tata Motors have some distinct advantages in comparison to other multi-national competitors.
There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of
sales in developed economies. Tata motors have extensive backward and forward linkages and it
is strongly interwoven with machine tools and metals sectors. Tata Group's strong expertise in
the IT based engineering solution for products and process integration has helped Tata Motors.
India has a large auto component industry noted for its world class capabilities. There is huge
demand in domestic markets due to infrastructure developments and Tata Motors is able to
leverage its knowledge of Indian market. There are favorable Government polices and
regulations to boost the auto industry.
However, some major automakers have moved their operations to India to cut costs. Volvo
entered India in 1998 to focus on production of its fully built buses. In India, it has focused on
providing economical transport solutions in consonance with its values of safety, quality, and
environmental care. Its competitive advantage is its high technology which makes the vehicle a
very comfortable option to travel through. Tata's trucks have long been reputed for their
unmatched performance, build, and technological advancements that are the flag bearers in their
production activities in India. It is still operating in the niche market of high end buses where the
Tata compete through its Hispano Carrocera and Marcopolo S.A. JV buses.
The Government of India announced an automobile policy in December 1997. The policy
required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in
equity if they wished to set up manufacturing projects in India. It also forced them to take on
export obligations to fund their auto part imports and required them to submit to a schedule for
increasing the share of locally made parts in their cars. Mere car assembling operations were not
welcomed.
An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh
investment guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be considered a part of the
minimum foreign investment made by it in an auto-making subsidiary in India. The move is
aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The
policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies
adopted by Government will increase competition in domestic market, motivate many foreign
commercial vehicle manufactures to set up shops in India, whom will make India as a production
hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in
near future, which might affect its growth negatively.
15.Future challenges
Tata Xover
Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.
Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M
has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in the CV
business. ITEC is the leader in medium and heavy trucks and buses in North America,
Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force Motors
has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty
vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the
16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per
annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in
the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia,
Asia and Africa. Further, the two companies have formed another JV to manufacture
buses in India from end-2007.
Tata Indigo SW
Tata Sierra
Tata Estate
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Indigo
Tata Winger
Tata Xenon XT
Concept vehicles
Tata Cliffrider
Tata StarBus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in
Delhi, Mumbai, Pune, Udaipur and Indore
Tata Ace
Tata 709 Ex
Military vehicles
Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
(AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international
expertise and financial strength,
refinancing
The paperwork is limited and the financing company's representative can be called even
at home to complete the formalities, including calculating the likely Equated Monthly
Installment (EMI) that the customer might have to pay.
Marketing Strategies
mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India,
to also export them worldwide[25][26]
Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in
road-accidents every year), and have also criticised the pollution that it would cause (including
criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised
that it would definitely release Nano's eco-friendly models alongside the gasoline-model
The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but
increasingly violent protests forced Tata to pull out October 2008. (See Singur factory pullout
below.) Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar
(Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat.]The company will
bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of
500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the
incentives offered by West Bengal government.
Cost Cutting features
The Nano's boot does not open, instead the rear seats can be folded down to access the
boot space
It has a single windscreen wiper instead of the usual Some exterior parts of it are glued
together, rather than welded.
Price
Tata initially targeted the vehicle as "the least expensive production car in the world"aiming for a
starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of March 22,
2009)6 years ago, despite rapidly rising material prices at the time
As of August 2008, material costs had risen from 13% to 23% over the cars development, and
Tata faced the choice of:
introducing the car with an artificially low price through government subsidies and taxbreaks
partially using inexpensive polymers or biodegradable plastics instead of a full metalbody raising the price of the car option.
Model versions
At its launch the Nano was available in three trim levels:
the basic Tata Nano Std priced at 123,000 Rupees has no extras;
the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow Colour Taxi
Version;
the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and
central locking
the Nano Europa, European version of the Tata Nano has all of the above plus a larger body,
bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards
and emission. The base model will have fixed seats, except for the driver's, which will be
adjustable, while the deluxe and luxury models will get air conditioning and body coloured
bumpers.
rail
(DICOR)
Quick Take
engine.
* Fuel Economy
Available Engines
2.0L
Inline-4,
67
bhp
diesel
Inline-4,
69
bhp
diesel
The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has
already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver
maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been
made apt for Indian roads especially with its driver & co passengers oriented positive attributes
such as :
Indigo LX Dicor
Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear
view window, black dials with chrome rings & star check as the new pattern for its
console&ACfascia.
Indigo LS Dicor
Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz
silver as the new pattern for console & AC fascia. It has no mounted LCD screens.
ENGINES
Petrol
Diesel
Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power 70 PS @ 4500 rpm Max. Torque - 13.5 kgm @ 2500 rpm
Dicor
32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail) 16-valve engine with Dual
Over Head Camshafts and a Variable Geometry Turbocharger(VGT) Max.power-70 PS@4000 rpm
Max.torque - 140Nm@1800-3000 rpm
According to the National Council for Applied Economic Research, or NCAER, rural India
accounts for 70% of Indias population, 56% of the national income, 64% of the total
expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets
pale before the huge potential they offer a company. Of the total sales (of consumer goods),
around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER
data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16
trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will
be about two-thirds of the rural economy by 2012-13.
Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of
which runs on cash. Tata motors ltd. are working on strategies to make inroads into these
markets.
collaborated
with
M/s.
Daewoo
of
Korea
and
manufacturing
Strength: 3500
manufactured/assembled at Lucknow.
The production is same as Jamshedpur. Except Daewoo collaboration
vehicles.
Lucknow plant is under the Head - Jamshedpur Plant.
various
Commercial Vehicles,
Mini truck
types of
Marina.
CHINCHWAD: Area
325 Acres.
Global Scenario:
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, Spain, Ukraine, Russia
and Senegal.
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 a global
automotive company.
In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicles
Company has already begun to launch new products.
MILESTONE
Year
Particulars
1945
1954
1986
launched.
The Millionth Tata Vehicle A million Indians are proud owners of
1991
Tata Vehicles.
Tata Estate Telco s Second passenger Vehicle launched.
1992
To start third factory in Lucknow.
1994
1998
2003
2004-05
and
Starbus brand name.
Tata Motors acquires 21 % stake in Hispano Carrocera SA, a wellknown international bus company.
Tata
Motors
listed
its
Depositary
programme
on
the
new
York
Stock
OBJECTIVES
There are different objectives for which the study has been completed. They
are as follows:-
RESEARCH METHODOLOGY
The main objective of the study is to determine and analyze the financial position
and Cost reduction of the Tata Motors Ltd. For this purpose, the information was
collected by two ways:
1. Primary Data:
Primary data is that which is not published but it is very useful data.
So the information was collected by discussion held with the executives of
accountsand finance department.
2. Secondary Data:
Secondary data consist of the information that already exists or someone has
collected it for specific purpose. This data was collected by:
A) The company profile was collected from website of Tata Motors Ltd.
(TML),
www.tatamotors.com
B) The other analytical information was collected from annual report and books and
discussion with finance manager.
EXECUTIVE SUMMARY
A Tata motors, with revenues of over US $ 6.0 billion (FY 2005-06), is a flagship
company of the Tata group. It is the world s largest company of the Tata group, it
is world s largest medium and heavy commercial vehicles model with the range of
light vehicle manufacturer and producers more than range of light, medium to
heavy duty trucks, buses and tractor and trainers. Tata motor is the second largest
player in the domestic passenger car market in India. Two of its five passenger
vehicle brands are among top ten.
Income statements of the Tata motors for years 99-00 to 05-06 are the business
mirrors, which reflect the financial position and operating strength and weakness of
the concern. Income statement analysis which is done by using ratio analysis and
trend analysis give the true picture of the company during1999-2000 to2005-
2006. Cost reduction is the true medicine for the revival of the company during the
decline of the company which is studied in this project.
Year 2000-01which was the black year Tata motor s history, which suffered from
huge loss. It wasn t any one factor that fueled Tata engineering s fall. The
market for commercial vehicles, the core of the company s business.
Tata motor which was running thorough bad phase during the gestation
period preferred cost reduction which was the best terminology at India s largest
automobile company.
The cost reduction initiative, which began in April 2000, is arguably the most
important element in the remarkable revival that has seen the Tata motor recover
from the loss of Rs 28 crores in the first quarter 2002-2003.
A quality improvement program based on the six sigma model, and the
other components of this revival, but it is in the cost reduction that the gains
have come thickest and fastest.
The big positive of the cost reduction initiative goes beyond the statistics of
money saved. The crisis unified the company. Companies have emerged from this as
phoenix.
a) Hiring Practices
Hiring the right talent is the greatest challenge in business environment and new and
innovative hiring strategies are the need of the hour if Indian companies have to succeed in
the changing global scenario. With Indian companies entering the phase of global mergers
and acquisitions, already there is a shift in standard hiring practices, the compensation
being offered, sharing the vision of the company and transmitting a sense of passion in the
company to the prospective employee will go a long way in attracting the right talent.
Some of the innovative hiring strategies could include hiring teams and not just individuals
and offering education and placement packages. Over the past few years HR is witnessing a
dramatic increase in lateral hiring of professionals with some years of experience, hiring
from the public sector as well as experienced people looking for second careers. The
challenge facing many firms is to hire with retention.
A smart and sophisticated workforce will be the most important corporate resource over the
next 20 The demand for this resource is sure to go up; however, the supply is already
dwindling.
At the time of recession its important task of hr personal to reorganize the structure of
the company.so as to avoid extra man force and duplication of work.
Human resourse manger should cut incentives of individuals.for ex-If marketing manager used to
get incentives for hotelling accommodations 2000 per day.it should be cut down to 1200 per
day..as already due to recession he will get equal amount of service by paying the less price.
They have not cut salaries of employees. But they have reduced the extra working hours, which
means the work which is to be done in two hours it has to be completed in two hours. They have
reduced delayes in work.
Operations Strategies
Tata motors has reduced its number of shifts frm 3 to 2 in a day and so as to control reduce
cost of production. And started making production according to the sales required.
b) Quality Management
c)Inventory Management
Costs can be substantial to store and move inventory. Innovative methods, such as Just-in-Time
inventory control, can save costs and move products and services to customers more quickly.
Conclusion
Over the period of time, fear of a slowdown in the United States of America have increased. The
impact of the subprime crisis along with a slowdown in mortgages has led to a significant
lowering of growth estimates. Since the United States dominates the global economy, any
slowdown there would have an impact on most of the global economic variables.
For India, it could mean a further appreciation in the rupee vis--vis the US dollar and a darkening
of business outlook for sectors dependent on US companies. The overall impact of a US
slowdown on India would, however, be minimal as the factors driving growth here are more
local in nature. Unlike the rest of Asia, India is a strong domestic demand story, so any slowing
in the US is likely to have a more muted impact on India. Strong growth in domestic
consumption and significant spending on infrastructure are the two pillars of Indias growth story.
No sector has a dominant influence on earnings growth and risks to our estimate are limited.
Corporate India is also learning to master the art of efficient capital management, reduction in
costs and delivery of value-added services to sustain profit margins. Further, interest rates are
expected to be stable primarily due to control over inflation and proactive measures undertaken
by the RBI
BIBLIOGRAPHY
[3] www.pearsoned.co.in/pkotler
[4] http://www.genmills.com/corporate/company/india.aspx
[5] http://www.utube.com
www.wikipedia.com
[6] http://iegd.institut.com
[7] http://www.rotman.utoronto.com