Acknowledgement
“….. the beauty of the destination is half veiled and the fragrance of the success half dull until the traces of all those enlightening the path are left to fly with the wind spreading word of thankfulness…” Keeping this in view; it would be unfair on my part if I don’t thank the mentioned few. I express my sincere gratitude to Mr. Piush Shankar (marketing manager Tata Motors) who gave me the opportunity to get training in such a recognized company. His guidance and knowledge helped me to learn professionalism in the real sense. I would like to express my deep sense of gratitude to prof. chetan wakalkar, director ISMS, pune for providing me such an environment to achieve the goals and to prosper in the corporate world I am also grateful to my project guide prof.Anandikar ISMS, Pune Who extended his complete support to make me deliver my best.
Executive Summary Company profile Tata motors limited is India’s largest automobile company with revenues of Rs. 24,000 corers in 2005-06, have grown significantly in past 60 years since its establishment in 1945. The company 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 segment. The company is world’s fifth largest medium and heavy commercial vehicle manufacture.
Product profile TATA Motors has launched a new version of its small car. Christened Indicia V2 Xeta, the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmpl under standard test conditions.
Scope & objective The aim of the study made through this project is to know the consumer awareness about the product Tata xeta with the corporate clients, in Bokaro steel city and comparative analysis of the Tata-xeta and Maruti Alto with their product features and market share.
Research methodology 1. 2. 3. 4.
research design sampling plan instruments of collection of data data analysis and interpretation
2
Conclusion This project research is the analysis of consumer awareness towards the newly launched car xeta by the branded company Tata motors. People belonging to middle class generally preferred the Tata- xeta going on far its brand name its history goes with delivering value. The customer of tata-xeta just had one problem and they said they are not by the performance of the car in the sense of its mileage when compare to Maruti alto in the same segment and price.
Limitation With in the limit period of time it is too difficult to cultivate in a whole market. Cost is also a major factor of pushing back to us in our research.
Recommendation This project was about to study the customer orientation towards tata-xeta, many of the customers complained about the mileage given by the tata-xeta is quite less than that of maruti-alto. Many customers complained advertisement shown for tata-xeta which they called to be a confusing one.
Bibliography •
http://carsinindia.com/indicaxeta1.asp
•
http://ir.tatamotors.com/PushFile.php? filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdf
•
http://www.maxabout.com/automotive/auto_cars/companies/Tata.aspx
•
http://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html
•
http://www.carwale.com/Research/chooseCarsForComparison.aspx
ANEXTURE Questionnaire.
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Introduction The time has gone when people just wanted to have vehicles as a means of transportation but nowadays they are more aware about the vehicle model, their price and various other features which make them owner of a commodity which makes their neighbors feel envy of their choice. As India opened its gates for the foreign companies various automobiles giants entered our country seeking it as their target market. We Indians also got a wide variety of cars to choose from. Hyundai entered in India with a view to capture the small market segment earlier captured mostly by two giant Indian companies- Tata Motors and Maruti Udyog Limited. Tata is one of the company in which the Indians trust like anything. It has diversified itself in a number of sectors gaining the trust and proving its competence in every such field. Tata when come up with a small car segments it was welcomed by people in the same way as it welcomed all its products. It had a wide choice of four wheelers to satisfy the varied Indian choices. In the other hand Maruti also is said to capture the pulse of Indian middle class by giving them their Maruti 800.To its wing it added many other cars to competition to Tata motors. Now these two companies even have to fight for their existence in this automobile sector and had to produce in context of giving tough competition to the various foreign companies. If we think about just these two companies they are also tough competitor of each other since ages. They had always tried to give their customers the products to cherish upon. There are products which are liked by the customers in India and worldwide. In this context we are here to compare two premier models of these two auto companies, which will give us the ultimate result of what the customer genre thinks about these two companies. This project also thus deals with a comparative study of these companies with respect to their own products in the small car segment. As both the companies are eager to capture the small car segment of India which is mostly owned by the middle class society of India.
4
A product to be successful in the market needs the prospective customers to be aware of the product. Consumer awareness about their products is the company’s one of the primary objective which makes the company to end up at advertising. They invest a lot of money in creating consumer awareness about their newly launched and existing products. Objective It’s always better to start your search with a predefined objective, rather than beating around the bush. An objective will give you a direction to work upon and proceed your further research. Therefore, my project has in basic to objective •
To do comparative analysis of the Tata-Xeta and Maruti Alto with their product features and market share.
•
To study the consumer awareness about the product Tata-Xeta with the corporate clients, in Bokaro Steel City.
5
Research Methodology According to Green and Tall “A research design is the specification of the methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates which information is to be collected, from where it is to be collected and by what procedures” This research process based on primary data analysis and secondary data analysis will be clearly defined to meet the objectives of the study. •
I chose the primary sources to get the data. A questionnaire was designed in accordance with our mentor in Tata Motors. I chose a sample of about 75 corporate customers around the Bokaro Steel City from which I can get the instant information of whose analysis will give me the desired outcome of my research project.
•
I collected some data from the secondary sources like published Company documents, internet etc.
Research Design “A research design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures”. It is a descriptive cross sectional design .It is the conceptual structure with in which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. It is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money.
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In the preliminary stage, my research stage constituted of exploratory study by which it is clear that the existence of the problem is obvious .So, I can directly head for the conclusive research.
Sampling Plan “Sampling plan” is a distinct phase of research process. In this stage I have to determine who is to be sampled, how large should be the needed sample and how sampling unit is to be selected. Population In my research, I have defined my population as a complete set of customers of Bokaro Steel City. Sample Survey As compared to census study, a sample study has been conducted by us because of: Wide range of population, it was impossible to cover the whole population Time and money constraints. Sample Unit In this survey I took the list of customers from the dealers of Tata Motors in Bokaro Steel City. Sampling Technique Sampling technique implies the method of choosing the sample items, the two methods of selecting sample are: Probability method. Non-probability method. “Probability method” is those in which every item of the universe has an equal chance of the inclusion in the sample. “Non-probability methods” are those that do not provide every item in the universe with known cause of being included in the sample. The selection process is partially subjective. For my study, I employed the Non-probability sampling technique, in which I got the data of the customers from the dealer of Tata Motors in Bokaro Steel city. 7
Instrument of collection of data I have used one set of questionnaire to collect data from the customers. This questionnaire is structured and highly ordered. This includes both close ended and open ended questions. The close ended questions included both dichotomous and multiple choice questions. Data analysis and interpretations Large volumes of raw data were collected through questionnaires in my research study. This raw data has been further converted into significant statistical information before further interpretation so that I can answer my research objective well. The collected raw data was then edited and coded by the researchers to eliminate errors and to assign data to pertinent categories. The data was then tabulated and presented with the help of bar diagrams and pie charts.
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Company profile Tata Motors Limited Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 corers (USD 5.5 billion) in 2005-06. 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. 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.” As an enterprise under India’s largest multi holding company, Tata Motors has grown significantly in the past 60 years since its establishment in 1945.The company caters to three main market segments globally: the passenger cars, utility vehicles and commercial vehicles. A significant breakthrough for the company was the development and commercialization of the truly Indian cars-Tata Indicia and Tata Indigo. The company produced its first mini truck, first light and first heavy vehicle and many more fists in India ,being an innovator in their industry. It has followed a strategy of acquisitions and joint ventures in its mid-stage and launched new products at a rapid pace in different market segments. Today, Tata Motors enjoys the position of being India’s leading automobile manufacturer with increasing presence in Europe, South East Asia. Africa and the Middle East with a total income of US $4 billion in 2004-05.The company focuses on providing customers the best value for their money and meets European standards and environmentally regulations through their advanced technologies.
Established in 1945, Tata Motors is one of the 32 publicly listed enterprises infer the Tata Group, India’s largest business conglomerate. Tata Motors collaborated with Germany’s Daimler Benz in 1945 for 15 years to manufacture commercial vehicles .Since then, Tata Motors has grown enormously and produces several vehicles through their main 9
Divisions- Passenger Cars, Utility Vehicles and Commercial Vehicles. In 1959, they set up their first and largest R&D centre in Jamshedpur.In 1961, exports had begun and the first truck was shipped to Sri Lanka.Another R&D Centre was started in Pune in 1966 to support automobile research which produced the first commercial vehicle by 1983 and light commercial vehicles three years later. With increasing sales popularity, they sold their one millionth vehicle by 1991 .Their interest in tapping the diesel engine market was evident through their joint venture with Cummins Engine Co.Inc in 1993 for the production of high horsepower and emission friendly diesel engine. After the joint venture in 1993, a few others were pursued the following year. An agreement with Daimler-Benz in 1994, allowed Tata Motors to produce high end Mercedes Benz passenger cars for the Indian market .In 1998, they launched their first sports utility vehicle, Tata Safari. This was an important year as their sales doubled to 2 million vehicles and marked the munch of India’s first fully indigenous passenger car, Tata Indicia .The Indicia was a success and over 115,000 bookings with full payment Within a year of its launch. Tata Motors' presence indeed cuts across the length and breadth of India. Over 3.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across Jamshedpur, Pune and Lukhnow, supported by a nation-wide dealership, sales, services and spare parts network comprising about 1,200 touch points. 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. 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.
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These acquisitions will further extend Tata Motors' global 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, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D. With 1,400 engineers and scientists, the company's Engineering Research Centre, established in 1966, 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 Indicia, India's first fully indigenous passenger car. Within two years of launch, Tata Indicia became India's largest selling car in its segment. The pace of new product development has quickened. In 2005, Tata Motors created a new segment 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. 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 human rights, labour and environment standards in compliance with the principles of the Global Compact.
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Simultaneously, it also 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. It has been a long and accelerated journey for Tata Motors, India's leading automobile manufacturer. Some significant milestones in the company's journey towards excellence and leadership from the glorious year of 1945 till date it is working on it success road. In its senior management position Mr. Ravi Kant is the Managing Director of this company. Manufacturing 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 evolutiondesign, 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:
This was the first unit of the Company established in 1945 and is spread over an area of 822 acres. It consists of 3 divisions - Truck, Engine (including the Gear Box division) and Axle. The divestments in March 2000 hived off the Axle and Engine plants into independent subsidiaries. The Truck Division boasts of two assembly lines. The main assembly line, measuring 180 meters in length, has 20 stations with a vehicle rolling out every 8 minutes while the other line is dedicated to Special Purpose Vehicles (SPVs). State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up of a 5000 tonne Siempelkamp press line and a cut-to-length line for strip preparation purchased from M/s. Kohler of Germany makes it a fairly advanced production outfit. This is supported by a fully equipped Foundry, which supplies high-grade SG Iron castings for automobile components and excavators and is rated as one of the cleaner, better and highly automated foundries in the world. The Foundry has a sophisticated Kunkel Wagner high pressure molding line, which has a rated production capacity of 90 12
Pairs of moulds every hour. The Foundry has its own melting shop, core shop and sand plant. Other advanced facilities include Channel Furnaces, Computerized Testing Equipment etc. In 1993, the Foundry was ISO 9002 certified by the Bureau Verities Quality International and later followed it up with the more stringent QS 9000 certification from the BVQI in the year 2000. The unit is also equipped with a semi-automated forging line, with 40,000 mkg Bache hammer and state-of-the art presses from Kurimoto of Japan and is one of the most modern forging set-ups in the country. It produces critical forgings like crankshafts, front axle beams and steering parts for the automobile plant. The new forging line, installed on April 20, 1984, has the capability to forge front axle beams at 90 sec per piece and crankshafts at 120 sec per piece. Mechanical presses help produce a variety of heavy forgings. The sophisticated FIDIA Digit 165 CC graphite-milling machine links shop floor machines to the design workstation. The Forge has been certified as ISO 9002 and QS 9000 by the BVQI. Pune:
The Pune unit is spread over 2 geographical regions- Pimpri and Chinchwad and has a combined area of around 510 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. It houses a Vehicle manufacturing complex which is one of the most integrated automotive manufacturing centers in the country producing a large variety of individual items and aggregates. It is engaged in the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for the development of new ranges of automobile products. Its capabilities have enabled Tata Motors to introduce new products and improve existing ones without resorting to imports of dies or fixtures.
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Lucknow:
Established in 1991 and covering an area of 600 acres, the Lucknow Plant was established to assemble Medium Commercial Vehicles (MCVs) to meet the demand in the Northern Indian market. In 1995, the unit started manufacturing bus chassis of Light Commercial Vehicles (LCVs) and Tata Sumos. The unit is also equipped with facilities to manufacture spare parts.
Research & Development: Research provides the much-needed inspiration for the birth of new ideas, which in turn breathes new life into products. World-class automotive research and development are key factors that contribute to the leadership of the Company. Engineering Research Centre (ERC): The Research Centre at Jamshedpur regularly upgrades components and aggregates. A well-equipped torture track enables rigorous and exhaustive testing of modifications before they are used as regular fitments. The Engineering Research Centre in Pune was setup in 1966 and is among the finest in the country. It has been honored with two prestigious awards - 'The DSIR National Award for R&D Effort in Industry - 1999' and 'National Award for Successful Commercialization of Indigenous Technology by an Industrial Concern - 2000.' Central Tool Room, Jamshedpur: The Central Tool Room at Tata Motors, Jamshedpur is one of the most modern tool rooms in India. Equipped with the latest CNC Machines, Tryout Presses and Inspection
14
facilities, this tool room has the proven capability of developing tooling solutions for all applications.
Customers'Quote "We are happy to inform you that the feedback received from our Japanese personnel (after their visit to your plant) is very positive and hence have decided to set the die quality
of
Tata
Motors,
Jamshedpur
dies
as
benchmark."
STTI (Toyota), Bangalore March, 2004
Tata Motors has proven excellence over the years through its technologically advanced products, market expansion, customer satisfaction and increasing sales.Tata Motors consistently strives to increase shareholder value, build stronger customer relations and work with its business partners to provide the best value for money. The company is also involved in accelerating the country’s economic growth and protecting the environment. With the initial financial backing of the giant parent company,Tata Group, the division has built a strong business over the past 60 years and continues to show strong financial results. The continual improvement and introduction of new products in the market have allowed it to successfully enter as well as dominate the automobile industry in India. Tata Motors reported a record sale of 454,345 vehicles (including exports) for the fiscal year 2005-06, its highest ever, and a growth of 13.7 per cent over the 399,566 vehicles sold in 2004-05. Total sales (including exports) for the month of March 2006 were 56,406 units, the company’s highest ever monthly sales and an increase of 27 per cent over the 44,432 units sold in March 2005. In case of exports, The Company exported 6,508 vehicles in March 2006 as compared to 3,964 vehicles in March last year, an increase of 64.2 per cent. The cumulative sales from exports during the year at 50,539 vehicles, a new peak, have recorded a strong 65.7-per cent growth over the 30,496 vehicles sold last year.Tata Motors continues to make deep 15
inroads abroad with its strategy of focusing on select markets with relevant products from its commercial vehicles and passenger vehicles range.
With increasing sales, employees, product offering, manufacturing facilities and distribution centers along with expansion outside India, the company seems to have promising future.
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Product profile Tata Indicia Xeta
Webster's Dictionary circa 2050 Indica: A successful Indian product of truly Indian origins. The word is derived from the first automobile to be designed, manufactured and sold successfully by an Indian company. Several variants of its original hatchback design were spawned and eventually over one million vehicles based on the platform were sold. The diesel-engine vehicle sold in large numbers across the nation and even has the notable achievement of having been exported to several countries across the globe. The diesel-engine Indica received notable appreciation from all around, whereas the petrolfuelled versions played second fiddle on the sales graphs. TATA Motors has launched a new version of its small car. Christened Indica V2 Xeta, the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmpl under standard test conditions. The Xeta's engine, delivering 70 PS, is far more powerful than the earlier version. Besides common black and silver, the car is available in 17
three flashy hues. The Xeta is touted be among the first few small cars to sport beige interiors. Besides these compelling features, the pricing is also attractive, at Rs 2.94 lakh
for the AC model. The Xeta range is priced between Rs 2.69 to Rs 3.65 lakh exshowroom Delhi. Customers may avail themselves of loans of up to 90 per cent from select financiers over a seven-year period with EMIs as low as Rs 4,471. We can have some inside view of this wonderful car:
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Design and engineering The design of the Xeta is exactly the same as the Diesel version, no significant changes, except the upholstery and the beige dashboard. Xeta carries with it all the virtues, like space and comfort. Seats are reasonably good and the Air con is also quite good, but the spread of the vents could really have been better. There are a few things about Tata build quality that are quite frankly annoying. The door ajar warning switch has been placed right next to the door hinge; this results in the cabin lamp switching off, even when the door is in fact ajar! Tata has also used bolts to fit the wheels to the hubs, which is unlike the Japanese who normally use studs and nuts. The result is that it is quite hard to replace a flat tire. The Indica though, unlike its some of its Japanese competitors can easily accommodate 5 passengers with much space to spare, and the best part about the interiors of the Indica are its 2 front seats that provide excellent comfort and support. The rear seats though lacking in comfort compared to the ones in the front has great legroom for its passengers. This can be a big boon on long journeys helping reduce fatigue. Engine and transmission The entire design effort of this new car is concentrated on the engine alone, the engine although the same block as the diesel, displaces 1405cc and has been detuned to now pump 70ps and 14kgm of torque. The best part of this engine is not just that figure, it the way it's delivered. The Indica petrol ceases to be a rampage, a fuel-guzzling monster; it is now able to pump loads of torque into those front wheels. The Indica is now able to pull from as low as 800rpm. The crux of the changes incorporated in the new Indica. The New Indica Xeta now sports a slightly detuned 4-cylinder in line, 1405cc 32bit microprocessor controlled fuel injected petrol engine, which is able to pump out 70ps at 4600rpm 14kgm at 2600rpm. Tata Now claims that this engine, thanks to the torque it is able to generate will be able to churn out 19
efficiency of around 14kpl. Customers really impressed by the optimism, but when the car floored the accelerator Ride and Handling The Indica Xeta is a big car, as far as dimensions go, compared to the puny Alto and bigger compared to the Santro and Wagon R when it comes to weight almost 200kgs. So, the suspension does belong to big car category. The tread of the tire is wider by 10mm to the Wagon R VXi and the Santro by 10mm, this helps the car grip a bit better, and although we expected the slightly lower profile to play truant when in came to absorbing bumps, the intrusive rear suspension really did work out. The handling though is a bit of another story. The Indica being heavy does mean more cornering forces, and the extra weight also means a wee bit of extra roll, but the wide stance of the Xeta is able to cope with the cornering with aplomb. The steering though is just a bit heavy, which although is very helpful at higher speeds can be a bit of a drawback around those city runs. Verdict The Xeta now competes with tried and tested Japanese cars like the Maruti's Wagon R, Zen and Alto and the Korean Santro Xing. Compared to these cars, the XETA is able to provide far more space; thanks to its handling, it is able to hold the road much better also absorbing the undulations of road surface better the handling though seems a bit front heavy; the car, overall looks even heavier. Tata build quality is yet to really make its impact on Japanese car fans, but the fact that this 1400cc 70ps engine with oodles of torque is able to churn out excellent fuel economy should.
Pros
Cons
Silent engine, comparatively more refined
Tires have a tendency to lock up
Truck loads of space
Gearbox, bit too numb
Excellent ride; especially at higher speeds
The boot could've been much bigger
beige interiors and seats
Engine is not rev-happy
Excellent torque; especially low down
Engine doesn't feel like a 1.4
boot space quite good
Tata is still in its learning curve 20
Technical Comparison of Tata Xeta and Maruti Alto
Unit Price (ExShowroom Mumbai) EMI*
Rs. Rs.
Features Air Conditioner Power Steering Cup Holders Folding Rear-Seat Remote Fuel-Lid Child Safety Locks Dimensions and Weights Overall Length Overall Width mm Overall Height mm Wheel Base mm Ground Clearance mm Front Track mm Rear Track mm Front Headroom mm Front Legroom mm Rear Legroom mm Rear Shoulder mm Boot Space mm Gross litre
Tata Indica V2 Xeta GLS-BS III 2,99,470 3,977 More Details Tata Indica V2 Xeta GLS-BS III
Maruti Alto LXi - BS III 2,99,102 3,972 More Details Maruti Alto LXi - BS III
X
| Tata Indica V2 Xeta GLS-BS III
| Maruti Alto LXi - BS III
3675
3495
1665 1485
1495 1460
2400 170 1400
2360 166 1290
1380
1290
955 1080
1190
820 1335 217
900 1220 21
Vehicle Weight Kerb Weight Fuel Economy
kg
1395
1165
kg
995 Tata Indica V2 Xeta GLS-BS III
740 Maruti Alto LXi - BS III
15.3
18.3
11.1 11.9 Tata Indica V2 Xeta GLS-BS III
13.6 14.5 Maruti Alto LXi - BS III
5 37
4 35
5 Tata Indica V2 Xeta GLS-BS III 152 17.4
4 Maruti Alto LXi - BS III 137 21.5
20.7
21.7
Mileage (Highway) Mileage (City) km/litre Mileage (Overall) km/litre Capacities km/litre Seating Capacity Fuel Tank Capacity person No of Doors litre Performanc e Maximum Speed 0-100kmph kmph 1/4 Mile seconds 100kmph-0 (Braking) seconds 80kmph-0 (Braking) meters Engine meters Engine Type/Model Displaceme nt Power
cc PS@rp m Nm@rp m
Torque Valve Mechanism Bore Stroke mm Compressio n Ratio mm No of Cylinders Cylinder Configurati on cylinder Valves per Cylender Ignition Type valve
60.1 34.8 Tata Indica V2 Xeta GLS-BS III 475 SI Multi Point Fuel injection System with 32-bit microprocessor 1396
35.8 Maruti Alto LXi - BS III FC engine 796
70@4800
47@6200
122@2600
62@3000
75 79.5 9 4 In-line
3
2
4 22
Engine Block Material Block Head Material Fuel Type Fuel System Transmissio n Transmission Type Gears/Speed s Clutch Type Gear Final Reduction Gear Ratio Suspensions Front Suspension Rear Suspension Steering Steering Type Power Assisted Minimum Turning Radius Brakes meter Brake Type Front Brakes Rear Brakes Wheels and Tyres Wheel Type Wheel Size Tyres
Iron Iron Petrol
Petrol
MPFI Tata Indica V2 Xeta GLS-BS III
Maruti Alto LXi - BS III
Manual 5
Manual 5
3.76 Tata Indica V2 Xeta GLS-BS III Independent, Wish Bone type with McPherson strut, Antiroll Bar Independent, Semi trailing arm with coil spring mounted on hydraulic shock absorbers Tata Indica V2 Xeta GLS-BS III
MPFI
Maruti Alto LXi - BS III McPherson Strut with torsion type anti-roll bar Coil spring with double action telescopic shock absorbers Maruti Alto LXi - BS III
Rack and pinion Standard 4.9 Tata Indica V2 Xeta GLS-BS III Dual Circuit, diagonally split, vacuum assisted with PCR valves 231mm Ventilated Discs 180mm Drums Tata Indica V2 Xeta GLS-BS III Steel 4.5J x 13" 165 x 65 R13 Radial
Standard 4.6 Maruti Alto LXi - BS III Powerful 8-inch booster assisted front disc brakes halt instantly on braking Disc brakes Maruti Alto LXi - BS III 12" 145 / 80 R12
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Indian Automobile Industry India is emerging as one of the most attractive automotive markets in the world, and is poised to become a key sourcing base for auto components. The table below captures the highlights of the sector in India that illustrates its growing significance. Indian Automobile Industry •
Largest three wheeler market in the world.
•
2nd largest two wheeler market in the world.
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4th largest passenger vehicle market in Asia.
•
4th largest tractor market in the world.
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5th largest commercial vehicle market in the world.
The industry structure spans all segments and is concentrated in regional clusters The India automotive sector has a presence across all vehicle segments and key components. In terms of volume, two wheelers dominate the sector, with nearly 80 per cent share, followed by passenger vehicles with 13 per cent. The industry had few players and was protected from global competition till the 1990s. After government lifted licensing in 1993, 17 new ventures have come up. At present, there are 12 manufacturers of passenger cars, 5 manufacturers of multi utility vehicles (MUVs), 9 manufacturers of commercial vehicles, 12 of two wheelers and 4 of three wheelers, besides 5 manufacturers of engines. With the arrival of global players, the sector has become highly competitive. Concentrated in regional clusters Automobile manufacturing units are located all over India. These are, however, concentrated in some pockets such as Chennai and Bangalore in the south, Pune in the west, the National Capital Region (NCR, which includes New Delhi and its suburban
24
districts) in the north, Jamshedpur and Kolkata in the east and Pithampur in the central region. Following global trends, the Indian automotive sector also has most auto suppliers located close to the manufacturing locations of OEMs, forming regional automotive clusters. Broadly, the three main clusters are centered around Chennai, Pune and the NCR. Auto Components sector is highly fragmented The Indian automotive component industry is highly fragmented. There-are nearly 6,400 players in the sector, of which only about 6 per cent are organized and the remaining 94 per cent are small-scale, unorganized players. In terms of value added, however, the organized players account for nearly 77 per cent of the output in the sector. The sector manufactures components across all key vehicle systems. The break-up of the output from the organized sector, in value terms, across key vehicle systems, is shown in the figure.
The automotive sector is growing strongly in both domestic and exports markets Indian automobile industry has been performing well both in the domestic and the international markets. Automobiles - Domestic Performance The production anddomestic sales of the automobiles in India have been growing strongly. While production increased 25
from 4.8 million units in 2000-1 to 8.5 million units in 2004-05 (a CAGR of over 15 per cent), domestic sales during the same period have gone up from 4.6 million to 7.9 million units (CAGR 14.2 per cent).
A positive trend in the domestic market is that the growth has not been driven by one or two segments, but is consistent across all key segments. Two wheelers, which constitute the majority of the industry volume, have been growing at a rate of 14.3 per cent, three wheelers at a rate of 14 per cent and passenger vehicles at a rate of 11.3 per cent. Commercial vehicles have been growing at a higher rate of nearly23.5 per cent, although from a lower base Since nearly all macro-economic indicators – GDP, infrastructure, population,demographics, interest rates, etc. – are showing a favourable trend, the domestic market for automobiles in India is expected to continue on its growth trajectory. .
26
Commercial Vehicles The commercial vehicle production in India increased from 156,706 in 2001 to 350,033 in 2005.
This segment can be divided into three categories – heavy commercial vehicles(HCVs), medium commercial vehicles (MDVs or MCVs) and light commercial vehicles (LCVs). Medium and heavy commercial vehicles formed about 62 percent of the total domestic sales of CVs in 2004. These segments have also been driving growth, having grown at a CAGR of nearly 24.7 per cent over the past five years. The key trends facilitating growth in this sector are the development of ports and highways, increase in construction activities and agricultural output. With better roads and highway corridors linking major cities, the demand for larger, multi-axle trucks is increasing in India.
27
Passenger Vehicles
Passenger vehicles consist of passenger cars and utility vehicles.This segment has been growing at a CAGR of 11.3 per cent for the past four years.A key trend in this segment is that with rising income levels and availability of better financing options, customers are increasingly aspiring for higher-end models. There has been a gradual shift from entrylevel models to higher-end models in each segment. For example, in passenger cars, till recently, the Maruti 800 used to define the entry level car, and had a predominant market share. Over the last 3-4 years, higher-end models such as Hyundai Santro, Maruti Wagon R, Alto and Tata Indica have overtaken the Maruti 800.Another development has been the blurring of the dividing line between utility vehicles and passenger cars, with models like Mahindra & Mahindra’s Scorpio attracting customers from both segments. Upper end sports utility vehicles (SUVs) attract potential luxury car buyers by offering the same level of comfort in the interiors, coupled with on-road performance capability.
28
Exports of automobiles from India are booming While the domestic sales of automobiles have been increasing at a significant rate,exports have taken a quantum leap in recent years. The exports of automobiles from India have been growing at a CAGR of 39 per cent for the past four years.
Exports growth has been spearheaded by the passenger vehicle segment, which has grown at a rate of 57.4 per cent.As a result, the share of passenger vehicles in overall vehicle exports has increased from 18 per cent in 1998-99 to 26 per cent in 2004-05. Europe is the biggest importer of cars from the country while predominantly African nations import buses and trucks.The Association of South East Asian Nations (ASEAN) region is the prime destination for Indian two wheelers. Most of the key auto component manufacturers in India are very positive about the outlook for exports, and expect about 15 per cent of their revenue to come from exports over the next 3-5 years. It has been estimated that exports of auto components from India could be around US$ 20-25 billion by 2015
29
A diagram illustrating the structure of Indian automobile Industry
30
Competitive Advantages India has several competitive advantages in the automobile sector,which have been analysed using the following framework.Availability of skilled manpower with engineering and design capabilities India has a growing workforce that is Englishspeaking, highly skilled and trained in designing and machining skills required by the automotive and engineering industries. In a combined assessment of manpower availability and capabilities, India ranks much ahead of other competing economies (see figure).
Many Indian and global players are leveraging this advantage by increasingly outsourcing activities like design and R&D to their Indian arms. The Society of Indian Automobile manufacturers(SIAM) estimates that automotive vehicle manufacturers are expected to invest US$ 5.7 billion in the Indian market from 2005 to 2010. Of this, about US$ 2.3 billion will be on research and development and the rest probably on capex.
31
The Indian automobile industry is highly competitive with a large number of players in each industry segment. Most of the global majors are present in the passenger vehicle and two wheeler segments. In the components industry too,global players such as Visteon, Delphi and Bosch are well established,competing with domestic players.The presence of global competition has led to an overall increase in capabilities of the Indian auto sector. Increase in competition has led to a pressure on margins, and players have become increasingly cost efficient.Quality levels have gone up, and there is an increasing focus on compliance to TPM, TQM and Six Sigma processes. This has led to an increased confidence among domestic players, who are now focusing on opportunities abroad. Key players in the components sector like Bharat Forge and SundaramFasteners have become key global suppliers in their categories.
32
The outlook for India’s automotive sector appears bright The outlook for India’s automotive sector is highly promising.In view of current growth trends and prospect of continuous economic growth of over 5 per cent, all segments of the auto industry are likely to see continued growth. Largeinfrastructure development projects underway in India combined with favorable government policies will also drive automotive growth in the next few years. Easy availability of finance and moderate cost of financing facilitated by double income families will drive sales in the next few years. India is also emerging as an outsourcing hub for global majors.Companies like GM, Ford, Toyota and Hyundai are implementing their expansion plans in the current year. While Ford and Toyota continue to leverage India as a source of components, Hyundai and Suzuki have identified India as a global source for specific small car models.At the same time, Indian players are likely to increasingly venture overseas, both for organic growth as well as acquisitions. The automotive sector in India is poised to become significant, both in the domestic market as well as globally. Production, Domestic Sales and Exports Trend Automobiles
33
While Domestic Sales have been growing strongly since 2000-01, Exports have nearly tripled in the last 5 years
34
Commercial Vehicles
35
Growth in the economy and infrastructure development isdriving growth in this segment Passenger Vehicles
36
Market shares
37
Car Sale Surge in June 2006 The sale figures of several automobile companies for first quarter of the current financial year (2006-07) have been declared. I, covered select companies, viz, Maruti Udyog, Tata Motors, Hyundai India and General Motors, having presence only in the passenger vehicles (PV) and commercial vehicles (CV) segments. India ’s leading car marker Maruti Udyog has reported a 17.5 per cent increase in domestic sales at 44,626 units (in passenger cars, utility vehicles and multi purpose vehicles) during June 2006 as compared with 37,995 units in June 2005. Total sales (PV & CV) have grown by 17 per cent to 48,425 units in June 2006 as against 41,390 units in the previous year, including export of 3,799 units, up by 11.9 per cent from 3,395 units in June 2005. Sales of Maruti 800 have stood at 7,796 units, up by 22.1 per cent in June 2006 from 6,387 units a year ago. Sales in the domestic A2 segment (comprising Alto, WagonR, Zen and Swift) have grown by 10.2 per cent to 27,228 units in June 2006 compared with 24,703 units a year ago, while sales in the company’s A3 segment (Baleno and Esteem) have risen by 22.3 per cent to 2,680 units compared with 2,191 units sold in June 2005. Tata Motors has reported a jump of 37 per cent in total sales, including exports, at 45,223 vehicles in June 2006 as against 33,018 vehicles in June 2005. Its domestic sales of passenger cars have increased by 27.8 per cent to 18,463 units. Its Indica group has registered a growth of 41 per cent to 12,271 units over June 2005. The Indigo family has reported sales of 2,885 units, a decline of 1.7 per cent in June 2006. Sumo and Safari have accounted a rise of 17.5 per cent to 3,307 units; the new Safari range launched in the latter part of the month (June 2006) has recorded a sale of 1,011 units. On the commercial vehicles (CV) front, the company’s domestic sales in June 2006 have augmented by 38.9 per cent to stand at 21,565 units compared with 15,530 units in the same month a year ago. Sales of medium and heavy commercial vehicles (M&HCV) have stood at 11,808 units, a rise of 23.3 per cent over June 2005, 38
while that of light commercial vehicles (LCV) have stood at 9,757 units, a growth of 63.8 per cent. The company's total exports have galloped by 71 per cent at 5,195 vehicles in June 2006 as compared to 3,037 vehicles in June 2005. Hyundai Motors India has achieved a growth of 56.2 per cent in the passenger cars and utility vehicles segment in the domestic market by selling 17,032 vehicles in June 2006. Sale of passenger cars in the overseas market has stood at 10,219 units, a growth of 18.6 per cent over June 2005. The company’s total exports (PV) have increased by 18.6 per cent to 10,219 units as against 8614 units in June 2005. General Motor India has posted an increase of 53 per cent in domestic sales (including PV, CV) at 3,346 units in June 2006 compared to 2,183 units the June 2005. The company has sold 1,961 units of multi-utility vehicle Chevrolet Tavera, 379 units of sedan Chevrolet Optra and 1,006 units of the mid-size Chevrolet Aveo during June 2006.
39
Four-Wheeler update
Maruti Udyog Ltd Maruti Udyog (MUL) sold 39,574 vehicles in June 2004, including 3,159 units of exports, registering a 10% yoy growth over last year’s June sales of 36,038 units.
Segment
Models
A1
M800
C
Omni,Versa
A2
Alto,WagonR,Zen
A3 Total Passenger Car
Baleno,Esteem
MUV Total Domestic sales
Gypsy,Vitara
Export Sales Total Sales
AprilJune
June 2003
2004
13,126
10,761
4,557
yoy (%)
Apr 03-Mar 04 yoy (%)
2003
2004
-18
40,774
31,874
-22
167,561
4,888
7
13,879
14,755
6
59,526
10,337
18,768
82
32,885
59,201
80
176,132
1,074
1,252
17
3,132
4,075
30
14,173
29,094
35,669
23
90,670
109,905
21
417,392
272
746
174
851
1,479
74
3,555
29,366
36,415
24
91,521
111,384
22
420,947
6,672
3,159
-52
12,496
12,240
-2
51,175
36,038
39,574
10
104,017
123,624
19
472,122
The company expects to cross over 500,000 units this fiscal by increasing its share in the A3 or C segment. It enjoys huge market share in the mini segment and the compact segment but with the launch of new Esteem and the Baleno, it is looking to consolidate its position in the C segment as well.The decline in the sales of the Maruti 800 is not a concern as they are taken over by its Alto brand and to some extent by the other A2 models. Alto’s non-AC version starts at a price of Rs2.3lacs accounting for around onethird of overall Maruti sales.It is setting up a Rs3,500mn diesel engine plant at Gurgaon with technology from Fiat GM Power Train, targeting the diesel segment 40
Hyundai Motors India Ltd In June 2004, Hyundai Motor India Ltd (HMIL) recorded total sales of 17,889 units including exports of 5,694 units. ‘Santro Xing’ recorded a sale of 15,456 units, Accent recorded 1,602 units, Elantra stood at 701 units, Sonata registered sales of 85 units and the SUV Terracan sales stood at 45 units.It recorded all time high cumulative sales of 91,356 units for the first six months in 2004 growing 39% yoy.Some production constraints restricted sales and therefore the company could not fulfill the demand for its Elantra model.HMIL is in the process of investing US$220mn at its manufacturing facility near Chennai to expand production capacity to 250,000 units by the third quarter of the year 2004. Tata Motors Ltd Total Vehicle sales
Volumes
4-Jun
3-Jun
yoy (%)
Domestic
28,522
21,133
35
Exports
1,661
1,511
9.9
Total
30,183
22,644
33.3
Cumulative sales for the first three months in FY05 stood at 84,918 units registering a growth of 40.6%. Cumulative domestic sales for the fiscal at 80,658 units are growing by 42%. Passenger Vehicles
Domestic sales of passenger vehicles for the month of June stood at 15,077 units, registering a growth of 33.7% yoy. Cumulative sales for FY05 stood at 40,781 units, up 35.4% yoy.Indica registered sale of 9,426 units, it’s highest ever in a month at in June 2004 and cumulative sales stood at 25,136 units growing 37.6%. Indigo too, registered its highest ever sale in a month at 3,224 units in June. Cumulative sales stood at 8,971 units, 41
growing 55.9% yoy..Sumo and Safari registered a combined sale of 2,427 units in June, and a cumulative sale of 7,764 units. Commercial Vehicles (CV) Domestic Volumes
4-Jun
3-Jun
yoy (%)
M&HCV
9,355
6,465
44.7
LCV
4,090
3,393
20.5
Total
13,445
9,858
36.4
Cumulative sales for CV’s for the first three months of FY05 stood at 39,887 units increasing 49.7% from 26,641 units for the same period last year.The company is planning to raise production capacity by 50% in FY05, from about 1.5lac units currently. For this it plans to invest over Rs8,000mn in FY05 for this increase in capacity, product development and marketing.With the launch of the Sumo Victa, it has targeted a 10-15% expansion in sales of its MUV, Sumo, in FY05.
Mahindra & Mahindra Ltd Volumes
4-Jun
3-Jun
yoy (%)
Utility Vehicles
7,861
6,405
22.7
LCV's
915
744
23
Three-Wheelers
1,279
1,239
3.2
Total
10,055
8,388
19.9
Tractors
6,812
3,552
91.8
UV sales in June included 2,103 Scorpio, a growth of 11% from 1,897 for the same period last year.Due to good monsoons last year, the farm equipment segment recovered and M&M sold nearly 50,000 tractors in FY04. The June 2004 volumes, including exports, have nearly doubled on a yoy basis. 42
It will spend around Rs3,500mn during FY05 on account of capital expenditure for development of engines and transmissions, expansion of plant capacity and modernization and R&D. General Motors India Ltd In June 2004, GM India sold 2,418 cars registering a growth of 123.5% from 1,082 cars for the same period last year. It sold 804 units of the Chevrolet Optra, 800 units of the Chevrolet Tavera (MUV) and 786 units of the Opel Corsa. The growth in sales of GM in India is primarily due to its Chevrolet Optra and Opel Corsa models. Between March and June 2004, the company sold a total of 3,557 Chevrolet Optras. Along with these, GM India also manufactures the Corsa Sail and Swing at its facility in Halol, Gujarat, Chevrolet Forester and the imported Opel Vectra. The company sold 15,000 units in 2003. Ashok Leyland Ltd Volumes
4-Jun
3-Jun
yoy (%)
Apr04-Jun04
Apr03-Jun03
yoy (%)
Domestic
673
990
-32
1,837
2,115
-13.1
Exports
200
86
132.6
466
193
141.5
Domestic
2,491
2,532
-1.6
7,830
5,662
38.3
Exports
508
104
388.5
923
207
345.9
Domestic
25
33
-24.2
67
82
-18.3
Exports
1
30
-96.7
13
87
-85.1
Total
3,898
3,775
3.3
11,136
8,346
33.4
MDV Passenger
MDV Goods
LCV Goods
43
The domestic sales volumes declined 10.3% yoy in June 2004. Compared to this, exports in the month of June nearly trebled at 709 units against 220 units in June 2003. Total sales including exports went up 3.3% yoy in June 2004 and sales in the first three months of FY05 increased 33.4% yoy. Eicher Motors Ltd Eicher Motors sold 1,506 commercial vehicles in June, registering a growth of 12% yoy as compared to 1,344 units last year. Cumulative sales for the three months in FY05 stood at 3,657 units growing 19.5% from 3,059 units in the same period last year.
Maruti Udyog sold 9,867 MPV’s in April and May 2004 together whereas M&M sold 12 units for the same period - (Excluding UV’s shown above).
44
ANALYSIS
45
Annual Income
Less than Rs,150,000 Rs.1,50,000 Rs2,50,000 Rs. 2,50,000 Rs3,50,000 Above Rs.3,50,000
Annual income is always considered to be an important factor in selection of the target markets for any company. As Tata –Xeta is the middle class segment, so the customers earning less than Rs 1,50,000 is about 20%, the customers lying between Rs1,50,000 to Rs 2,50,000 is about 35%, those that in Rs 2,50,000 to Rs 3,50,000 is 25% and that above Rs 3,50,000 is 20 %. By this way we can conclude that at most the customers which are called to be the essence of the middle class own Tata- Xeta.
46
Vehicle Brand
Maruti Hyundai Tata Mahindra Others
Every company desires itself to be in the house of its target customers.The customers whom I sampled where mostly owing one or two cars.In most of the middle class segments there were about 20% Maruti cars,25% Hyundai cars , where as 45% was constituted by Tata cars and Mahindra and other section cars had a share of 5% each . I can here make a clear cut analysis that Tata-Xeta had the greates market share in the middle class segment.In this project where we are comparising with Maruti- Alto , I can make a judgment that Tata-Xeta is mostly owned by the customers rather than MarutiAlto.
47
Source of Knowledge about Tata-Xeta
50% 45% 40% 35% 30% 25%
Series1
20% 15% 10% 5% 0% TV Advertisement
Newspaper
Friends & Relatives
Others
Ours is a country where customers are highly influenced by the electronic media. Any new product that is in the market has a unique advertisement for itself, in order to attract its target customers in its unique way. This was also shown in my research as the electronic media had a total percentage of 45% ,followed by Newspaper by 30%. People are not eager to get to know about nay new brand by their friends and relatives which is shown by a total of just 15% ,while the options others took away 10%.
48
Reason for attraction towards Tata-Xeta
40% 35% 30% 25% 20%
Series1
15% 10% 5% 0% Product quality
Product price
Brand
Advertisement
People in India had always go for the famous brands and are really brand conscious. They at least trust the famous Indian brands ,who are giving their services and products to their high esteemed clients .When I studied this aspect I also got to know the same as the brand being the reason of attraction of the customers up to a maximum of 37% followed by the product quality by 27%. The product price is a aspect which attracts about just 23% of the customers. Purchasing a product just merely seeing a advertisement is not an Indian’s mind. Therefore it takes just about 12% of the total sample taken for study.
49
Media of advertisement for attraction
Print media Road shows TV- Advertisement Hoardings
Indians are attracted by the TV Advertisement as they think watching TV to be a famous mode of entertainment. There are also a number of commercial breaks between various TV shows. Companies target and try to occupy these spaces to get closer to their customers or rather make them acquainted of the product. This was also studied in my research as it occupied about 38%, followed by print media that is advertising through various newspaper and magazines contributes about 28%.Customers are also attracted by the hoardings which are put up by the company that amounts to a total of 22% ,where as only 12% of the customers are attracted by various Road shows.
50
Discount or free gifts attraction
80% 70% 60% 50% Series1
40% 30% 20% 10% 0% Yes
No
People of India are always attracted to the products which give them free gifts or discounts on the purchase price. Companies generally give such offers in case of any festivals or any marriage season locally known as “lagan”. People wait for this time to get free gifts or coupons or being a part of any lucky draw scheme. In my research also I came a total of about 73% of customers looking for such offers, but there where 27% of the customers who does not gets really attracted by such offers and purchase car as whne needed don’t even desire to get such gifts. 51
Factors which influence the purchase decision
Speed Price Brand Comforts Spareparts availability Looks After sales service
“Neighbours’s envy and owner’s pride” is a common rule followed by various Indians for which they go for looks. The car should be having good outlook so that even though a layman may also praise their choice .This aspect therefore was shown in my research also which contributed to about 26%.Customers are generally price conscious and when we are targeting the middle class customers who do not make a heavy investment, they go for the products which are within their budget limits. They are always attracted to the cars which are within their budget limits so that they can carry on with it in a well manner. About 25%.The aspect brand took a total of 20% share followed by comforts provided by the car which is about 14%. Speed, after sales service and spare parts availability took about 8%, 5% and 2% respectively.
52
Tata-xeta being well equipped with all the features of a small car
90% 80% 70% 60% 50%
Series1
40% 30% 20% 10% 0%
Yes
No
People in my sample units seemed to be satisfied by the performance of Tata-Xeta.. They agreed to the various features provided by Tata-xeta being a small segment car.About 81% of the total sample agreed to this, where as 19% disagreed to it showing their high expectations from the brand name which was not otherwise fulfilled .They said they are not satisfies by the performance of the car in the sense of its mileage when compared to Maruti-Alto in the same segment and the same price range.
53
Diffrences between Tata-Xeta and Maruti- Alto
Quality Price Looks Speed Comforts Mileage
Customers when they purchase a car generally do a lot of field study,through which they can easily differentiate between various cars. When I consulted in terms of Tata- Xeta and Maruti-Alto they were various options coming up.The difference in mileage was the most premium factor to be considered the mileage of Tata-Xeta and that of Maruti-Alto are 15.3km/lt and 18.3km/lt. It was pointed out by various customers there fore it contributed about 36%, followed by 22% about the quality they feel that Tata-xeta is having the more robust quality in comparison with Maruti-Alto.Speed was also a factor take into consideration with a total of 16%, followed by looks by 12%.Price differentiation took about 8% of the customers into consideration and comforts just took 6% of the total share. 54
Conclusion This project research is the analysis of customer orientation towards the newly launched car Xeta by the branded company Tata Motors. People belonging to the middle class generally preferred the Tata-Xeta going on for its brand name as its history goes with delivering the value. This was also shown in my research as the electronic media was the most attractive method of advertising Tata-Xeta. The customers sampled thought the car they had should have good exterior. . The customers of Tata-Xeta just had one problem with their car was the mileage given by their car in comparison with Maruti-Alto which is also a They said they are not satisfies by the performance of the car in the sense of its mileage when compared to Maruti-Alto in the same segment and the same price range. Thus , the view prevalent in my mind after this research was conducted that if Tata-Xeta would work on its mileage concept then would definitely it would emerge as a winner in small car segment and also will prove better than Maruti Cars.
55
Limitations of the study 1. Money was the major constraint during my project. 2. Duration of the study also limited for further intensive study. 3. Mostly stress was given on primary data collection and it was difficult to collect secondary data from organization and dealers. 4. Limited coverage area was also a major constraint while conducting the study.
56
Recommendations Tata Motors is a company which is maestro in its field, but there are some recommendations which I will like to give to even perform it better. •
This project was about to study the customer orientation toward Tata-Xeta, many of the customers complained about the mileage given by Tata-Xeta is quite less than that of Maruti Alto. The mileage given by that of Tata-Xeta is 15.3km/lt and that of Mruti –Alto is 18.3 km/lt. The customers who use this car for their business purpose get effected by this shortcoming. So for this case they prefer Maruti-Alto belonging to the same price range as the price of petrol is also shooting up.
•
Many customers complained about the advertisement shown for Tata-Xeta, which they called to be a confusing one. The advertisement didn’t showed clearly all the features of the car, rather it showed what fun a group of girls can make with the car. It should rather be changed.
57
Bibliography
•
http://carsinindia.com/indicaxeta1.asp
•
http://ir.tatamotors.com/PushFile.php? filename=/home/telcoindia/ir/pdf/2006/FY06_Review_Final.pdf
•
http://www.maxabout.com/automotive/auto_cars/companies/Tata.aspx
•
http://www.mouthshut.com/product-reviews/Indica_Xeta-925054185.html
•
http://www.carwale.com/Research/chooseCarsForComparison.aspx
58
Annexure
59
60
