History of the Automobile Industry

What began as a self-propelled mechanical experiment in 1769, has now grown into an
industry that caters to every budget and concept of a road-worthy vehicle. The journey of
the automobile industry from the Cugnot three wheeler, to the plush super car of today
has been long, but empowering...

Your automobile is probably the second most important investment made, after the home.
The simple or swanky addition to your persona has a fascinating history and makes
interesting reading. The cars on the road today are the products of consistent progression,
from horse-drawn carts to modern day automobiles. The primary function has always
been transporting passengers, with the help of a built-in motor or engine. The use of these
babies on the road for flaunting is restrained mostly to the rich, who can afford the burn-
out of fuel for a frivolous indulgence. Automobiles or motor-cars are designed to seat
between one and eight people. They run on four wheels, but may be customized further
according to the need and type of transportation.

The transgression of the French 'automobile' and the Greek autos and Latin 'mobilis' is a
journey from strength to strength. In the initial years, the 'movable vehicle' was propelled
either by an animal or another self-movable vehicle. The word we use, 'car', comes from
the Latin word 'carrus' and refers to a wheeled caravan.

History of the Automobile Industry:

The credit for the first ever 'designed' automobile is shared. But, careful consideration of
the records enables a realization that surpasses the names and designs. The sheer genius
of the involvement is fantabulous. In 1769, Nicolas-Joseph Cugnot built the first self-
propelled vehicle that was mechanized. The idea rooted, witnessed a number of
subsequent efforts made towards taking the unstable three-wheeler a step further.
Ferdinand Verbiest designed the first vehicle that was steam-powered, in 1672. However,
this toy for the Chinese Emperor was in fact the first auto (self propelled) mobile
(vehicle)! Richard Trevithick is credited with the first road worthy locomotive, designed
in the year 1801.

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The shortcomings of the steam-powered vehicle paved the way for contemporaries and
successors to back up the body with a motor that could sustain the required steam
pressure and be put to more practical use, than a way to spotlight an expensive
indulgence. In the 1780s, in Russia, Ivan Kulibin came up with a pedaled carriage having,
at that time, modern features like a gear box and brake-system. In 1806, François Isaac de
Rivaz of Switzerland designed the first automobile fitted with an engine that worked on
internal combustion. The fuel was a mix of hydrogen and oxygen! Immediately after that,
in what can be described as an automobile design boom, inventors like Samuel Brown
and Etienne Lenoir came up with similarly propelled answers to the carriages and carts.

In the year 1881, Gustave Trouvé of France, developed and exhibited a three-wheeled
automobile that was powered by man's greatest discovery then - electricity. The
exhibition at the International Exhibition of Electricity in Paris resulted in many like
minded innovators designing and experimenting with self-propelled vehicles. German
engineers applied full gusto dealing with the issues related to design or working of the
vehicles. While the likes of Gottlieb Daimler and Maybach battled design and road-
worthiness, Karl Benz came up with the ancestor of our modern day automobile.

In 1886, Karl Benz was granted a patent for his automobile designed to work on a four-
stroke cycle engine driven by gasoline. He founded Benz & Cie. in 1883 and
subsequently kept adding to components and technological add-ons. The vehicles hit the
market in 1888 and found a number of patrons. The inventions and glamorizing of the
vehicles resulted in the need for large-scale production. Line manufacturing or production
was adopted first in 1902, by Ransom Olds. The idea flourished under the supervision of
ambitious Henry Ford. What started with one car in every 12 and a half hours, reached
the zenith with a 15 minute production line!

Today, the cars we use and race are aptly fitted with intricate safety procedures and state-
of-the-art automotive technology. The designs have come a long way and have adapted to
environmental changes, when and as, accommodating even biofuels, to raise and
maintain the standard of living and quality of personal transportation.

History of the India Automobile Industry:

India is one of the fastest growing automobile industries in the world. After 1960, the
automobile industry saw rapid growth and many automotive manufacturers started
production. In 1920 one of the first companies was Hindustan Motors which produced
the Ambassador; later, Fiat entered a collaboration with Premier. Chrysler entered
India in the early 1960s. Hindustan Motors later tied up with Mitsubishi Motor
Corporation in 1997 and brought the Lancer followed by Cedia, Pajero and recently the
Outlander in 2008. The After 1990 Mercedes-Benz, Tata Motors, Ford, General
Motors, Hyundai, Toyota through Toyota Kirloskar, and Maruti (owned jointly by the
Government of India and Suzuki) grew to be major forces in the country's economy.
Honda came up in 1996 with the Honda City, then the Civic, CR-V, and the Accord.

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Also BMW started production for the local market due to import duty. Tata purchased
Jaguar and Land Rover from Ford Motor Company in 2008.

Other automotive manufacturers include:

Ashok Leyland, Bajaj Auto, Chinkara Motors, Eicher Motors, Force Motors,
Kinetic, Mahindra, Rajah Motors, San Motors, Swaraj Mazda, TVS Motors, Tara
and Tatra.

Reasons of Growth:

 Economic liberalization.
 Increase in per capita income.
 Tax relief policies.
 Easy accessibility of finance.
 Launch of new models.
 Exciting discount offers made by dealers.

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 India's Automobile Industry
In India there are 100 people per vehicle,
while this figure is 82 in China.
It is expected that Indian automobile industry
will achieve mass motorization status by 2014.

Indian Automobile Industry is growing at a much faster pace and is therefore recognizing
as a leading player in world marketplace. With the production of various types of
vehicles, the automobile industry is attracting many international pioneers.

India's automobile industry is characterized as 10th largest automobile industry with the
yearly production of nearby 2 million units. In coming years, it is expected to emerge out
as one of the leading global automobile industries in throughout the world.

Various types of vehicles are manufactured by the automobile industry. It includes

manufacturing of trucks, buses, passenger cars, defense vehicles etc. One can
differentiate the industry into car manufacturing, two wheeler manufacturing and heavy
vehicle manufacturing units.

Many international companies have make their pathways into the automobile marketplace
by varied ways like technology transfers, joint ventures, strategic alliances, exports
agreements etc. The said industry is boasting varied attractive schemes, rising purchasing
power and launching of new products.

Some of the pioneers of the Automobile Industry :

Maruti Udyog Ltd. Tata Motors

General Motors India Ford India Ltd.
Eicher Motors Bajaj Auto
Daewoo Motors India Hero Motors
Hindustan Motors Hyundai Motor India Ltd.
TVS Motors

Snippets:

 India is emerged out as the largest two wheeler manufacturer in throughout the
world.
 India is worldwide known as largest three wheeler market.
 India is known as second largest tractor manufacturer in all over world.
 India is known to be 5th largest commercial vehicle manufacturer in the world.
 India is emerged out as 4th largest car manufacturer in Asia.
 The first automobile in India rolled in 1897 in Bombay.
 India is being recognized as potential emerging auto market.
 Foreign players are adding to their investments in Indian auto industry.

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 Within two-wheelers, motorcycles contribute 80% of the segment size.
 Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
 Tata Motors dominates over 60% of the Indian commercial vehicle market.
 2/3rd of auto component production is consumed directly by OEMs.
 The number one global motorcycle manufacturer is in India.

Segment Knowhow:

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

market. Hero Honda contributes 50% motorcycles to the market. In it Honda
holds 46% share in scooter and TVS makes 82% of the mopeds in the country.

 40% of the three-wheelers are used as goods transport purpose. Piaggio holds
40% of the market share. Among the passenger transport, Bajaj is the leader
by making 68% of the three-wheelers.

 Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52%
share in passenger cars and is a complete monopoly in multi purpose
vehicles. In utility vehicles Mahindra holds 42% share.

 In commercial vehicle, Tata Motors dominates the market with more than
60% share. Tata Motors is also the world's fifth largest medium & heavy
commercial vehicle manufacturer.

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 Indian Automotive Industry – Development and Growth

Pre 1983 1983 - 1993 1993 - 2008

• Closed market • Suzuki, Japan and GOI joint venture •Delicencing of the sector in 1993.
• Growth of market limited by supply to form Maruti Udyog.
• Outdated models. • Joint ventures with companies in •Global major OEMs start assembly
commercial vehicles and in India (GM, Ford, Honda, Hyundai,
components. etc.)
•Imports allowed from April 2001;
Players Players alignment of duty on components and
• Hindustan Motors • Maruti Udyog parts to ASEAN levels.
• Premier • Hindustan Motors
• Telco • Premier •Implementation of VAT.
• Ashok Leyland • Telco
• Mahindra & Mahindra • Ashok Leyland
• Mahindra & Mahindra

India has begun an ambitious development programme for its automotive industry,
which it hopes will make it a global production hub by 2016.

To many in India, cars remain

illusive luxuries.

The initiative, which is backed by both the government and by the existing automotive
industry, relies on heavy investment both by domestic operators and non-Indian car
companies.
Many foreign firms are eager to participate in the likely profits to be derived both from
the growth of the Indian market and from the development of India as a major producer
and exporter of cars, motorcycles, commercial vehicles and automotive components.

Here is an overview of the relatively slow, albeit increasingly rapid, emergence of

India's automotive industry.

1940s

An embryonic automotive industry emerges in India

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1953

Efforts to create a manufacturing industry to supply the automotive industry with

components get underway, spearheaded by the Indian government and leading
entrepreneurs.

1970 to 1980

India's automotive industry begins to grow relatively fast, fuelled by six automotive
companies:
 Telco (now Tata Motors)
 Ashok Leyland
 Mahindra & Mahindra
 Hindustan Motors
 Premier Automobiles
 Bajaj Auto

However, having a car is still seen as a luxury.

This is at least partly because the sector's growth is held back by requirements for
production licences and restrictions on both production within India and on imports.

1980 to 1985

Rickshaws are still commonplace

in India.

Japanese manufacturers begin to build motorcycle, car and commercial vehicle factories
in India, often in partnership with Indian firms.

Component manufacturers also enter into joint-venture agreements, with European and
US firms.
Exports start to grow.

1985 to 1990

The auto component sector, which had been protected by high import tariffs, squares up
to competitors as the rules are changed.

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Maruti Udyog enters the passenger car segment.

During the following years, Japanese manufacturers started selling motorcycles and light
commercial vehicles.

1990 to1995

Taxis outnumber private cars in

many parts of India.
Economic liberalisation gets underway, allowing passenger car production without
licences, though import restrictions remained in place.

Hero Honda emerges as a major operator in the motorcycle market, while Maruti Udyog
becomes the leading passenger car maker.

1995 to 2000

India's streets are gradually getting fuller.

International car makers enter the Indian market, a trend that accelerates.
Advanced technology is introduced to meet competitive pressures, and environmental
and safety imperatives.

Automobile companies start investing in service network to support maintenance of on-

road vehicles.

Auto financing starts emerging as an important driver for demand.

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2000 to present

Liberalisation of the automotive industry gets underway, with the removal of many trade
and investment restrictions.

Cars developed and produced entirely in India for both the domestic and exports markets
emerge.

Financial services firms begin to offer car loans, in cooperation with the car industry.

Efficiency, capacity and environmental issues are identified, along with initiatives aimed
at encouraging research and development to address such issues.

Source: India's Ministry of Heavy industries & Public Enterprises Draft Automotive
Mission Plan 2006-2016.

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 PERFORMANCE OF THE INDIAN AUTOMOBILE INDUSTRY

Automobile Domestic Sales Trends

(Number of
Vehicles)
Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Passenger 902,096 1,061,572 1,143,076 1,379,979 1,549,882 1,551,880
Vehicles
Commerci 260,114 318,430 351,041 467,765 490,494 384,122
al Vehicles
Three 284,078 307,862 359,920 403,910 364,781 349,719
Wheelers
Two 5,364,249 6,209,765 7,052,391 7,872,334 7,249,278 7,437,670
Wheelers
Grand 6,810,537 7,897,629 8,906,428 10,123,988 9,654,435 9,723,391
Total

Domestic Market Share for 2008-09

Passenger Vehicles 15.96%

Commercial Vehicles 3.95%
Three Wheelers 3.60%
Two Wheelers 76.49%

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 Automobile Production Trends

(Number of Vehicles)
Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Passenger 989,560 1,209,876 1,309,300 1,545,223 1,777,583 1,838,697
Vehicles
Commercial 275,040 353,703 391,083 519,982 549,006 417,126
Vehicles
Three 356,223 374,445 434,423 556,126 500,660 501,030
Wheelers
Two 5,622,741 6,529,829 7,608,697 8,466,666 8,026,681 8,418,626
Wheelers
Grand Total 7,243,564 8,467,853 9,743,503 11,087,997 10,853,930 11,175,479

Automobile Exports Trends

(Number of Vehicles)
Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Passenger 129,291 166,402 175,572 198,452 218,401 335739
Vehicles
Commercial 17,432 29,940 40,600 49,537 58,994 42673
Vehicles
Three 68,144 66,795 76,881 143,896 141,225 148074
Wheelers
Two 265,052 366,407 513,169 619,644 819,713 1004174
Wheelers
Grand Total 479,919 629,544 806,222 1,011,529 1,238,333 1,530,660

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 TATA GROUP PROFILE:

Leadership with trust

Tata is a rapidly growing business group based in India with significant international
operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore),
of which 61 per cent is from business outside India. The group employs around 350,000
people worldwide. The Tata name has been respected in India for 140 years for its
adherence to strong values and business ethics.

The business operations of the Tata group currently encompass seven business sectors:
communications and information technology, engineering, materials, services, energy,
consumer products and chemicals. The group's 27 publicly listed enterprises have a
combined market capitalisation of some $60 billion, among the highest among Indian
business houses, and a shareholder base of 3.2 million. The major companies in the group
include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata
Chemicals, Tata Tea, Indian Hotels and Tata Communications.

The group’s major companies are beginning to be counted globally. Tata Steel became
the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among
the top five commercial vehicle manufacturers in the world and has recently
acquired Jaguar and Land Rover. TCS is a leading global software company, with
delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata
Tea is the second largest branded tea company in the world, through its UK-based
subsidiary Tetley. Tata Chemicals is the world’s second largest manufacturer of soda ash.
Tata Communications is one of the world’s largest wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the group is also
gaining international recognition. Brand Finance, a UK-based consultancy firm, recently
valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in
the world. Businessweek ranked the group sixth amongst the World’s Most Innovative
Companies and the Reputation Institute, USA, recently rated it as the World’s Sixth Most
Reputed Firm.

Founded by Jamsetji Tata in 1868, the Tata group’s early years were inspired by the spirit
of nationalism. The group pioneered several industries of national importance in India:
steel, power, hospitality and airlines. In more recent times, the Tata group’s pioneering
spirit has been showcased by companies like Tata Consultancy Services, India’s first
software company, which pioneered the international delivery model, and Tata Motors,
which made India’s first indigenously developed car, the Indica, in 1998 and recently

12
unveiled the world’s lowest-cost car, the Tata Nano, for commercial launch by end of the
financial year 2008-09.

The Tata group has always believed in returning wealth to the society it serves. Two-
thirds of the equity of Tata Sons, the Tata group’s promoter company, is held by
philanthropic trusts which have created national institutions in science and technology,
medical research, social studies and the performing arts. The trusts also provide aid and
assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies
also extend social welfare activities to communities around their industrial units. The
combined development-related expenditure of the Trusts and the companies amounts to
around 4 per cent of the group’s net profits.

Going forward, the group is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another Tata company), which in 2008 is ranked the
world’s fourth fastest. The group aims to build a series of world class, world scale
businesses in select sectors. Anchored in India and wedded to its traditional values and
strong ethics, the group is building a multinational business which will achieve growth
through excellence and innovation, while balancing the interests of its shareholders, its
employees and wider society.

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 Values and purpose

Purpose;
At the Tata group our purpose is to improve the quality of life of the communities we
serve. We do this through leadership in sectors of economic significance, to which the
group brings a unique set of capabilities. This requires us to grow aggressively in focused
areas of business.

Our heritage of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. This heritage is being continuously
enriched by the fomalisation of the high standards of behaviour expected from our
employees and companies.

The Tata name is a unique asset representing leadership with trust. Leveraging this asset
to enhance group synergy and becoming globally competitive is our chosen route to
sustained growth and long-term success.

Core values;
The Tata group has always been a values-driven organisation. These values continue to
direct the group's growth and businesses. The five core Tata values underpinning the way
we do business are:

 Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.
 Understanding: We must be caring, show respect, compassion and humanity for
our colleagues and customers around the world, and always work for the benefit
of the communities we serve.
 Excellence: We must constantly strive to achieve the highest possible standards
in our day-to-day work and in the quality of the goods and services we provide.
 Unity: We must work cohesively with our colleagues across the group and with
our customers and partners around the world, building strong relationships based
on tolerance, understanding and mutual cooperation.
 Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what
comes from the people goes back to the people many times over.

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The Tata group operates in seven business sectors. This section details the companies and
the business sectors they belong to, the products and services they offer, an overall roster
of all Tata companies, and the mergers and acquisitions that Tata enterprises have been
involved in since 2000

The seven business sectors

1. Information systems and communications:

The Tata group has well-established enterprises in the fields of software and other
information systems, telecommunications and industrial automation.

COMPANIES IN THIS SECTOR

Information systems:

CMC, INCAT, Nelito Systems, Tata Advanced Systems, Tata BusinessSupport Services,
TCS, Tata Elxsi, Tata Interactive Systems, Tata Technologies, Tata Technologies iKS.

Communications:

Nelco, Tata Communications, Tata Sky, Tata Teleservices, Tatanet, Virgin Mobile India.

2. Engineering:
The Tata group has a robust presence in engineering, with operations in automobiles and
auto components and a variety of other engineering products and services.

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COMPANIES IN THIS SECTOR

Automotive:

Tata Motors, Jaguar Land Rover, International Automotive, Knorr Bremse Systems for
Commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering, TACO
Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and
Plastics Division, TacoKunststofftechnik, TACO MobiApps Telematics, TACO Supply
Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa
Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata
Yazaki Auto Comp, TC Springs, Technical Stampings Automotive.

Engineering:

Tata Projects, TCE Consulting Engineers, Voltas, TAL Manufacturing Solutions, Telco
Construction Equipment Company, TRF.

3. Materials:
The Tata group is among the global leaders in this business sector, with operations in
steel and composites.

COMPANIES IN THIS SECTOR

Metals:
Tata Steel, Hooghly Met Coke and Power Company, Jamshedpur Injection Powder
(Jamipol), Jamshedpur Utility and Service Company Limited (JUSCO), Lanka Special
Steel, mjunction services, NatSteel, Sila Eastern Company, Tata Blue Scope Steel, Tata
Metallic, Tata Refractories, Tata Ryerson, Tata Sponge Iron, Tata Steel (Thailand), Tata
Steel KZN, Tayo Rolls.

Composites:
Tata Advanced Materials

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4. Services:
The Tata group has widespread interests in the hospitality business, as also in insurance,
realty and financial and other services.

COMPANIES IN THIS SECTOR

Hotels And Realty:

Indian Hotels (Taj group)
Taj Air, Roots Corporation (Ginger Hotels), THDC, Tata Realty and Infrastructure.
Financial Services:
Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management Tata
Capital, Tata Financial Services, Tata Investment Corporation
Other Services:
Tata Quality Management Services, Tata Services, Tata Strategic Management
Group, Tata Industrial Services.

5. Energy:
The Tata group is a significant player in power generation and is also involved in the oil
and gas segment.
COMPANIES IN THIS SECTOR
Energy:
North Delhi Power, Tata BP Solar, Tata Petrodyne, Tata Power, Tata Power trading.

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6. Consumer products:
The Tata group has a strong and longstanding business in watches and jewellery, and a
growing presence in the retail industry.

COMPANIES IN THIS SECTOR

Consumer products:
Alliance Coffee, Eight O’ clock Coffee, Good Earth Corporation, Landmark, Mount
Everest Mineral Water, Infiniti Retail, Tata Tea, Tetley Group, Tata Coffee, Tata
Tetley, Tata Tea Inc, Tata Ceramics, Tata McGraw Hill Publishing Company, Titan
Industries, Trent.

7. Chemicals:
The Tata group is one of the largest producers of soda ash in the world. Additionally, it
has interests in fertilisers and in the pharmaceuticals business.

COMPANIES IN THIS SECTOR

Rallis India, Advinus Therapeutics, Tata Chemicals, Brunner Mond, Tata Pigments.

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 TATA MOTORS PROFILE

Tata Motors Limited is India’s largest automobile company, with revenues of Rs.
35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products in
the compact, midsize car and utility vehicle segments. The company is the world’s fourth
largest truck manufacturer, and the world’s second largest bus manufacturer.

The company’s 23,000 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.”

Established in 1945, Tata Motors’ presence indeed cuts across the length and breadth of
India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954.
The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand),
Pune (Maharashtra), Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). 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 is establishing two new plants at Dharwad (Karnataka)
and Sanand (Gujarat). The company’s dealership, sales, services and spare parts network
comprises over 3500 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 and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. In 2004, it 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, with an option to
acquire the remaining stake as well. Hispano’s presence is being expanded in other
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 at the
Bangkok Motor Show 2008.

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

19
Asia and South America. It has franchisee/joint venture assembly operations in Kenya,
Bangladesh, 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 customer-
desired offerings through leading edge R&D. With over 2,500 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, 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. 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. When launched in India later in 2008, the car will be
available in both standard and deluxe versions. The standard version has been priced at
Rs.100,000 (excluding VAT and transportation cost).

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.

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 focussing
on environment-friendly technologies in emissions and alternative fuels.

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 labour and environment standards
in compliance with the principles of the Global Compact. In accordance with this, it plays
an active role in community development, serving rural communities adjacent to its
manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent
futur

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 CHAIRMAN’S PROFILE
Mr. Ratan N Tata (Chairman)

Ratan N Tata has been Chairman of Tata Sons, the holding company of the Tata group,
since 1991. He is also chairman of the major Tata companies, including Tata Motors,
Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian
Hotels, Tata Teleservices and Tata AutoComp Systems. During his tenure, the
group’s revenues have grown over ten-fold to annualised group revenues of $62.5
billion.

Mr Tata joined the Tata group in December 1962. After serving in various companies, he
was appointed director-in-charge of The National Radio & Electronics Company Limited
(NELCO) in 1971. In 1981, he was named chairman of Tata Industries, the group’s
other holding company, where he was responsible for transforming it into a group
strategy think-tank, and a promoter of new ventures in high technology businesses. He is
also the chairman of two of the largest private sector promoted philanthropic trusts in
India.

 Mr Tata is associated with various organizations in India and abroad in varying

capacities, some of which are:
 Chairman, government of India's Investment Commission.
 Member, Prime Minister's Council on Trade and Industry.
 Member, National Hydrogen Energy Board .
 Member, National Manufacturing Competitiveness Council.
 Serving on the International Investment Council set up by the president of the
Republic of South Africa.
 Serving the International Business Advisory Council of the British government to
advise the chancellor of the exchequer.
 Member, International Advisory Council of Singapore's Economic Development
Board.
 Member, Asia-Pacific Advisory Committee to the board of directors of the New
York Stock Exchange.
 Member, international advisory boards of the Mitsubishi Corporation, the
American International Group and JP Morgan Chase.

21
  President, court of the Indian Institute of Science, Bangalore.
 Chairman, council of management, Tata Institute of Fundamental Research,
Mumbai.
 Member, board of trustees of the Rand Corporation, Cornell University and
University of Southern California, and the Foundation Board of the Ohio State
University.
 Chair, advisory board of RAND's Center for Asia Pacific Policy.
 Member, Global Business Council on HIV / AIDS and the programme board of
the Bill & Melinda Gates Foundation's India AIDS initiative.

Mr Tata received a Bachelor of Science degree in architecture with structural engineering

from Cornell University in 1962 and worked briefly with Jones and Emmons in Los
Angeles before returning to India later that year. He completed the Advanced
Management Program at Harvard Business School in 1975.

The Government of India honoured Mr Tata with its second highest civilian award, the
Padma Vibhushan, in 2008. Earlier, in 2000, he had been awarded the Padma Bhushan.
He has also been conferred an honorary doctorate in business administration by the Ohio
State University, an honorary doctorate in technology by the Asian Institute of
Technology, Bangkok, an honorary doctorate in science by the University of Warwick,
and an honorary fellowship by the London School of Economics.

22
 Joint Venture, Subsidiary and Associate Companies

Tata Motors has several joint venture, subsidiary and associate companies:

Jaguar Land Rover

Tata Technologies Ltd. (TTL) and its subsidiaries
Telco Construction Equipment Co. Ltd. (Telcon)
HV Axles Ltd. (HVAL)
HV Transmissions Ltd. (HVTL)
TAL Manufacturing Solutions Ltd. (TAL)
Sheba Properties Ltd. (Sheba)
Concorde Motors (India) Ltd. (Concorde)
Tata Daewoo Commercial Vehicle Company Ltd (TDWCV)
Hispano Carrocera S. A. (HC)
Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL)
Tata Motors European Technical Centre plc
Tata Motors Finance Limited
Tata Motors Thailand
Tata Marcopolo Motors Ltd (TMML)
Tata Motors(SA) Proprietary Ltd (TMSA)
TML Distribution Company Ltd (TDCL)

23
 AWARDS

 Tata Motors wins award at the Bangkok International Motor Expo.

 Tata Motors - Investor Relations ranked first in India.
 Nirmal Gram Puraskar awarded to Potka panchayat.
 Tata Motors bags the NDTV Profit Business Leadership Award 2008.
 Tata Motors awarded the Top Exporter Trophy by EEPC.
 CVBU Pune wins Rajiv Gandhi National Quality Award for 2007.
 PCBU bags Handa Golden Key Award.
 Tata Motors receives Uptime Champion Award 2007.
 Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL.
 'NDTV Profit' Business Leadership Award.
 Tata Motors bags National Award for Excellence in Cost Management.
 Tata Motors' TRAKIT bags silver award for 'Excellence in Design'.
 Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality
Award.
 Tata Motors was awarded four prestigious honours, at the 'CNBC TV18-
Autocar
 Tata Motors chosen as India's Most Trusted Brand in Cars.
 Business Today selects Mr. P.P. Kadle as India's Best CFO in 2005.
 Pune Foundry Division bags prestigious Green Foundry Award.
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
 ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards.
 Jamshedpur bags National Energy Conservation Award for the fourth
consecutive year.
 Tata Motors bags the prestigious' CII-EXIM Bank award' for business
excellence.
 Tata Motors receives JRD QV awards for Business Excellence.
 'Car Maker of the Year' Award for Tata Motors.
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
 TNS Voice of the Customer Award for Indica Diesel.
 'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive
Director -.
 Tata Motors wins the prestigious 'Corporate Platinum' Award at the India
Manuf..

24
 Tata Motors wins 'Golden Peacock Award' for Corporate Social
Responsibility.
 Tata Motors CVBU Pune wins National Energy Award.
 Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'.
 Tata Motors wins the first CSIR Diamond Jubilee Technology Award.
 Tata Motors Training Division Wins "Golden Peacock National Training
Award 2004".
 Tata Motors Jamshedpur & Lucknow win awards.
 TATA MOTORS CASE STUDY WINS FIRST PRIZE IN IIIE
PRODUCTIVITY CONTEST.
 TATA MOTORS WINS AWARD FOR FAIR BUSINESS PRACTICES.
 Tata Indica and Tata Safari EXi win awards.
 Tata Motors-Car plant gets two ISO certifications.
 Tata Motors bags awards at 14th National Convention of INSAAN.
 Indica and Safari win accolades.
 TATA MOTORS PUNE AWARDED SECOND PLACE IN NATIONAL
LEVEL COMPETITION IN ENERGY CO..
 Tata Motors Receives "India's Best Employer" Award From The Employee.
 Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award
institute.
 CVBU RECEIVES COMMENDATION CERTIFICATE FOR 'STRONG
COMMITMENT TO TQM'.
 Tata Motors team wins The Runners Up Position at The Asian Business
Simulation C.
 THE PRESTIGIOUS BALANCED SCORECARD COLLABORATIVE
HALL OF FAME AWARD.
 Tata Motors receives all India trophy for Top Exporters.
 Tata Indigo ad campaign wins Effie award.
 Golden Peacock Environment Management Award - 2003.
 Industry and Technology Award, 2002.
 Advertising Awards.
 Tata Indigo - Most Exciting New Car of the Year - ICICI Bank & Overdrive
Award.
 Tata Engineering - A Socially Responsible Corporate, says TERI.
 'Prof. Vasant Rao Rolling Trophy' for Value Engineering - 2002.
 Tata Engineering was conferred Bharat Gaurav Puraskar.
 Best Value for Money Car of the Year - Tata Indigo CNBC Auto Car Auto

25
 Awards - 2.
 'Voice of the Customer Award' for 'Best Diesel Small Car' - Tata Indica by
NFO A.
 India CFO Award 2002.
 Tata Engineering bags INSAAN awards.
 National Best Training Establishment Award.
 Envirointernational.
 Good Corporate Citizen award.
 National Award for Successful Commercialisation of Indigenous
Technology.
 National Award for R&D Efforts.
 Regional Top Exporter's Trophy.
 Best Company Award at Workskills Competition.
 EEPC Award for Tata Engineering.

The Next People's Car

26
TATA NANO - THE LITTLE CAR THAT MIGHT
CHANGE THE WORLD

27
 Manufacturer Tata Motors
Parent company Tata Sons
Also called The People's Car
Production 2008—present
Predecessor none
Class City car
Body style(s) 4-door hatchback
Layout RR layout
2 cylinder SOHC petrol Bosch multi-point
Engine(s) fuel injection (single injector) all
aluminium 623 cc (38 cu in)
Transmission(s) 4 speed synchromesh with overdrive in 4th
Wheelbase 2,230 mm (87.8 in)
Length 3100 mm (122 in)
Width 1500 mm (59.1 in)
Height 1600 mm (63 in)
Kerb weight 580 kg (1,300 lb)-600 kg (1,300 lb)
Girish Wagh, Justin Norek of Trilix, Pierre
Designer
Castinel

28
The Tata Nano is a city car — rear-engined, four-passenger car aimed primarily at the
Indian market — first presented by India's Tata Motors at the 9th annual Auto Expo on
January 10, 2008, at Pragati Maidan in New Delhi, India.

Tata targets the vehicle as the least expensive production car in the world — aiming for a
starting price of Rs.100,000 (approximately US$2,000). On February 26, 2009, Tata
Motors announced that the commercial launch of Tata Nano will be on March 23, 2009.

The news magazine Newsweek identifies the Nano as a part of a "new breed of 21st-
century cars" that embody "a contrarian philosophy of smaller, lighter, cheaper" and
portend a new era in inexpensive personal transportation — and potentially, "global
gridlock". The Wall Street Journal confirms a global trend toward small cars, which
includes the Nano.

The prefix "nano-" derives from the Greek root 'nanos', meaning dwarf. "Nano" also
means "small" in Gujarati, the native language of the Tata family, founders of the Tata
Group.

Introduction of Tata Nano

29
“Dream-dream and dream, because dream gives vision, vision gives thoughts and
finally thoughts lead to the action". Each letter of these motivational words said by
India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata,
Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable
Car for the common man. Finally after the wait of five years, crossing all financial and
technological barriers, Ratan Tata kept his promise and unveiled Tata 'Nano' on 10th
January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool & smart,
launched by Tata Motors is world's cheapest Car with a price tag of $ 2500.

Description about Nano

 The project has literally become India's claim-for-fame in the international-media

due to Tata Motors' innovation in developing the car, as well as keeping it low in
price.
 The car itself is expected to boost the Indian Economy, create entrepreneurial-
opportunities across India, as well as expand the Indian car market by 65%.

30
  The car was envisioned by renowned industrialist, Ratan Tata, Chairman of the
Tata Group and Tata Motors, who has described it as an eco-friendly "people's
car".

 Nano has been greatly appreciated by many sources and the media for its low-cost
and eco-friendly initiatives which include using compressed-air as fuel and an
electric-version.

 Tata Group is expected to mass-manufacture the Nano in very large quantities,

particularly the electric-version, and, besides selling them in India, to also export
them world-wide.

Technical Specifications and Features

Make Tata
Model Tata NANO
Body Type Hatchback
Number of Doors 4

31
Seating Capacity 04 (Four)

Fuel Efficiency
City Mileage 20-25 kmpl
Highway Mileage T26 kmpl
Fuel Capacity 15 litres
Fuel Type Petrol (Diesel Version will be later)
Fuel Grade -
Fuel Injection Multi Point Fuel Injection (MPFI)

Specifications:
Length 3.1 meters
Width 1.5 meters
Height 1.6 meters
Engine All-aluminium, Rear Mounted, Rear Wheel Drive
Capacity 623cc
Power 33PS
Body Type Sheet Metal
Emission Norms Euro-IV, Bharat Stage-III compliant
Safety Norms Frontal Crash Tested
Versions Standard, Luxury
Gearbox 4-speed manual; Cable operated
Wheelbase 2230mm
Ground Clearance 180mm
Kerb Weight ~ 600kg

It will have 21% more interior space than Maruti 800 and it will be 8% small than
Maruti 800.

Reactions about Nano

 "It's a good historic moment for the Indian auto industry and also a proud one
indeed that an Indian company took a step forward on this road. Its an
upgradation for an auto wheeler rider to by a car now.”

Rajesh Jejurikar, Managing Director, Mahindra and Renault's.

32
 "It's good product but it's still too early to say whether it will overtake the 800
because it caters to a totally new market segment.”

Said Jagdish Khattar, Former MD of Maruti Udyog Limited.

 "Meeting the proper quality standards and safety is not feasible at all in such a
model.
Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group
Sales India.

 "I think it is a great thing for India because mobility is giving new opportunities. I
hope Tata drives to great success with the Rs one lakh car, but it is not included in
our plan.“

Thomas Kuehl, Board Member, Skoda Auto India.

What makes it so cheap!

 The Tata Nano uses plastics and adhesives rather than welding.
 Introducing the car with an artificially low price through govt-subsidies and tax-
breaks, or

 Using vertical-integration, or

33
 Partially using inexpensive polymers or biodegradable plastics instead of a full
metal-body.

 It has no AC, no power steering, no power windows, no power bells and whistles.

34
 Tata Nano booking acceptance opens on 9th; To continue till end of day April 25

 THE TATA NANO ARRIVES

 Tata Motors announces the launch of Tata Nano

 New plant for Nano to come up in Gujarat

 The story behind the Nano

 The Game Changers

 Nano indeed will meet a genuine need of thousands of our families

 Nano gets Geneva buzzing

 Nano - a star at the Show

 Tata: We may allow other firms to make Nano to meet demand

 Now, Nano turns heads in Geneva

 Tata to ride Nano to Geneva Motor Show

 What gave Nano a headstart

 Nano: Ratan Tata grows beyond business

 The man and his dream machine

 Nano drives automobile designers in world market

 Tata Nano - Can't deny aspirations

 Small wheels, big lessons

35
 How Ratan Tata created the Nano like Henry Ford

 The making of a modern classic

 How Nano was built

 Delhi upstaged Detroit with The Tata Nano

 Nano makes it to Time's most important cars of all time

NEW
PRICE
POINT
36
TATA’s Vs
COMPETITORS

Tata
Is Tata Sets New Price Point
King

Tata’s

37
 1 Lakh Car

Competitors

Trying To Reach
That Price Point How To Kill
That Price Point Others In Race
How To Reach
That Price Point

CARS BY PRICE POINTS

Rs. 1-2 Lakhs  TATA NANO

(New Price Point)

38
Rs. 2-3 Lakhs  Maruti 800, Maruti Alto, Omni
 Reva
Rs. 3-5 Lakhs  Ambassador
 Chevrolet Aveo U-VA, Chevrolet Spark, Chevrolet
Opel Corsa
 Fiat Palio, Fiesta, Ford Icon
 Hyundai Santro, Hyundai i10, Hyundai Getz
 Maruti Zen, Maruti Wagon R, Maruti Versa, Maruti
Esteem, Maruti Gypsy, Maruti Suzuki A-Star,
Maruti Suzuki Zen Estilo, Maruti Suzuki Swift,
Mahindra Logan
 Indigo XL, Indigo Marina
 Tata Indica, Toyota Qualis, Tata Indigo CS
Rs. 5-10 Lakhs  Chevrolet Swing, Chevrolet Aveo, Chevrolet
Tavera, Chevrolet Optra Magnum
 Fiat Linea, Fiat Adventure, Fiat Grande Punto, Ford
Fusion
 Hyundai Accent, Hyundai Elantra, Hyundai i20,
Hyundai Verna, Hyundai Sonata Embera, Honda
City ZX, Honda Jazz New
 Maruti Baleno, Maruti Suzuki Sx4, Maruti Suzuki
Swift Dzire, Mahindra Scorpio, Mitsubishi Lancer,
Mitsubishi Cedia, Mahindra Bolero
 Toyota Innova, Tata Sumo Victa, Tata Sumo
Grande, Tata Safari
 Skoda Fabia
Rs. 10-15 Lakhs  Chevrolet Forester
 Ford Mondeo & Ford Endeavour, Ford Focus
 Honda Civic
 Skoda Octavia & Combi
 Toyota Corolla, Toyota Corolla Altis
 Volkswagen Jetta
Rs. 15-30 Lakh  Audi A4
 Chevrolet Captiva
 Honda CR-V, Honda CRV 2008, Honda Civic
Hybrid, Honda Accord
 Maruti Suzuki Grand Vitara, Mitsubishi Pajero,
Mercedes C Class
 New Skoda Superb New
 Opel Vectra
 Skoda Laura
 Toyota Camry, Ford Endeavour Thunder Plus,
Terracan & Tucson, Toyota Fortuner New
 Volkswagen Passat , Volkswagen Jetta
Rs. 30-90 Lakhs  Audi A6, A8 & Audi TT, AUDI Q7
 BMW X5, 5 Series & 7 Series

39
  Mitsubishi Montero, Mercedes Benz S-Class,
Mercedes E Class, S Class, SLK, SL & CLS-Class
 Porsche Boxster, Cayenne, 911 Carrera & Cayman S
 Toyota Prado
 Volvo Xc90, Volvo S80
Above Rs. 1 Crore  AUDI R8
 Bentley Arnage, Bentley Continental GT & Flying
Spur, Bentley Azure
 Maybach
 Rolls Royce Phantom

Price of Tata Nano Car

The standard model, the CX and the LX are the 3 variants of the new Tata Nano.

40
The non AC standard version of the car comes with an ex-factory price of Rs 1 lakh and
will cost Rs 1.12 lakh at showrooms in Pant Nagar, where the company is making the car.
In Delhi, it will cost just over Rs 1.23 lakh (Rs 1.34 lakh in Mumbai). The AC version
would be priced at Rs 1.48 lakh in Delhi and Rs 1.6 lakh in Mumbai, while the deluxe
version would cost 1.72 lakh in Delhi (Rs 1.85 lakh in Mumbai). The booking amount
would range from Rs 95,000 to Rs 1.4 lakh for different versions.

Tata Nano Cars

Tata Nano Cx BSII Price Rs 145,000* Average(Kmpl)

(New Delhi) City 22.0 | Highway 26.0
Petrol

Tata Nano Cx BSIII Price Rs 148,361* Average(Kmpl)

(New Delhi) City 22.0 | Highway 26.0
Petrol

Tata Nano Lx BSIII Price Rs 172,360* Average(Kmpl)

(New Delhi) City 22.0 | Highway 26.0
Petrol

Tata Nano Std BSII Price Rs 120,000* Average(Kmpl)

(New dDelhi) City 22.0 | Highway 26.0
Petrol

CRISIL RESEARCH

41
42
43
About CRISIL Limited

CRISIL is India's leading Ratings, Research, Risk and Policy Advisory Company.

CRISIL offers domestic and international customers a unique combination of local

insights and global perspectives, delivering independent information, opinions and
solutions that help them make better informed business and investment decisions,
improve the efficiency of markets and market participants, and help shape infrastructure
policy and projects. Its integrated range of capabilities includes credit ratings and risk
assessment; research on India's economy, industries and companies; global equity
research; fund services; risk management and infrastructure advisory services.

About CRISIL Research

CRISIL Research is India's largest independent, integrated research house. We leverage

our unique, integrated research platform and capabilities spanning the entire economy-
industry-company spectrum to deliver superior perspectives and insights to over 600
domestic and global clients, through a range of subscription products and customised
solutions.

44
45
CRISIL Research has prepared these estimates by projecting the income demographic
transition pattern in India and the cost of ownership of existing and new entry-level cars.
Given the shape of the income distribution pyramid in India, the new price point
translates into a 65 per cent increase in the number of families that can afford a car. At
the significantly redefined threshold for car ownership in India, annual car sales in India
have the potential to increase by 20 per cent, over the annual sales expected in 2007-08.

46
COMPARISON
OF
SMALL CARS

47
 CARS

Sport Utility
SMALL Mid Size Premium Luxury
CARS Cars Cars Cars Cars

Small cars are classified according to the price range which varies from 1 to 3 lakhs. It
has the capacity to carry 4 passengers- 2 adults, 2 children. These are basically entry level
cars which are preferred by service group and middle income group.

These cars are basically manufactured by – Tata, Maruti Udyog and Reva. While
companies like Volkswagon and Reva are yet to launch their models in the market.

SMALL CARS
MODEL COMPANY
Tata Nano Tata Motors
Maruti Alto
 Alto Maruti Suzuki India Ltd
 Alto Lx
 Alto Lxi
Maruti 800
 Maruti 800 STD BS III Maruti Suzuki India Ltd
 Maruti 800 AC BS III
 Maruti 800 Duo
Maruti Omni
 5 seater Maruti Omni Maruti Suzuki India Ltd
 8 seater Maruti Omni
 LPG Maruti Omni
Reva
 Reva AC
 Reva Standard Reva Electric Car Co
 Reva Classe
 Reva i
Tata Magic Tata Motors

SMALL CARS AWAITED

MODEL COMPANY
Air Car OneCat Tata Motors
New Beetle Volkswagen
People's car Tata Motors
REVA Spl. Ed. Reva Electric Car Co.
Jazz Honda Motors

48
 FEATURES COMPARISON

Base Model Nano M800 Std Alto Santro Non-AC

Plus Air Nano CX/LX M800 AC Alto LX/LXi Santro GL/GLS
Conditioner
Plus Heater Nano CX/LX Feature Not Alto LX/LXi Santro GL/GLS
Available
Plus Tinted Nano CX/LX M800 AC Alto LX/LXi Santro GL/GLS
Glasses
Fully Loaded Nano LX M800 AC Alto LXi Santro GLS
Plus Front Nano LX Feature Not Feature Not Santro GLS
Power Available Available
Windows
Plus Body Nano LX Feature Not Feature Not Santro GLS
Colored Available Available (Only Body
Bumper,Door Colored
Handle & Bumper)
ORVM
Plus Central Nano LX Feature Not Feature Not Santro GLS
Locking Available Available
Plus Front & Nano LX Feature Not Feature Not Feature Not
Rear Fog Lamp Available Available Available

49
 PRICE COMPARISON

Tata Nano Base Maruti Suzuki Maruti Suzuki

800 Std - BS III Alto Std - BS III

Rs. 1,34,249 Rs. 1,97,255 Rs. 2,36,884

Tata Indica V2 Xeta Hyundai Santro Xing Maruti Suzuki

Non-AC Zen Estilo LX

Rs. 2,56,086 Rs. 2,72,488 Rs. 3,13,143

Maruti Suzuki Tata Indica Vista Hyundai i10

Wagon R

Rs. 3,22,215 Rs. 3,43,255 Rs. 3,45,746

50
 NANO
CARTOONS

51
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53
54
55
 REVIEW OF
LITERATURE

56
The success of any market research calls for the development of the most efficient plan
for gathering the needed information. Details gathered may be either primary or
secondary. The secondary data consists of information that already exists somewhere
having been collected for some other purpose. The secondary data provides a low cost
and easy accessibility. On the other hand, primary data collected is more relevant,
specific, accurate and reliable. For the completion of this project primary and secondary
data has been gathered.
While reviewing the literature I come across certain articles
dedicated to study about “Perception of People on TATA’s NANO CAR in Jalandhar
city”. Articles which to some extent relate to my project were the discussed below.
The first one was the “Low Cost Car”. It was submitted on
September 23, 2008 by Atiqur Rahman. This article tries to put focus on aspects of low
cost car around the world. The car manufacturers are in the race to develop the low cost
or ultra cheap cars and TATA with its proposed NANO is at the face of the row. But the
trend of low cost car is not new, as it stared with Ford Model-T which put America on
wheel. German and French manufacturers ventured Bubble Cars in early 1950's and then
BMC comes with MINI. The concept of low cost car differs from country to country on
the basis of its price. In a country like India a car of $5400 is considered as low cost car;
while in US a car of $15000 is considered as the same. The front runners in this race are
India and China. The Indian and Chinese car makers are coming up with various low cost
even ultra cheap cars. But every coin has two different sides and so does low cost car.
Traffic, pollution, mishap are some dark sides resulted by these cars.
The second was on “Patent or Perish: Why Your Innovation
Can Be Your Competitor's Free Lunch”. It was submitted on January 1, 2009 by
Navtej Saluja. This article drew an interesting comparison between Tata's much awaited
Nano and the colorful Crocs footwear. The funny-looking Crocs footwear that initially
elicited stares and snickers had suddenly become serious business after its launch.
However, since the beginning of 2008, the share price of Crocs has fallen by 97%. One of
the main reasons behind the mighty fall of Crocs is the wide availability of cheap
knockoffs, which Crocs would like to eliminate from its primary markets, but it does not
have the adequate patent protection to do so.

In a similar vein, the unveiling of Nano, at a price of about USD 2,500 by Tata Motors in
January 2008 has catapulted the image of the company, and renewed people's interest in
cheap and fuel-efficient cars. Unlike the Crocs-inspired Chery S16 compact car, the Tata
Nano is a smart-looking car, but is it innovative? Is this innovation sufficiently protected
by patents? How can the carmaker avoid the mistakes and pitfalls that have plagued
Crocs Inc.? These are some of the questions that Evalueserve has addressed in its recently
released article titled, 'Patent or Perish - Why your innovation can be your competitor's
free lunch?'

In this article, Evalueserve's analysis shows that in the last twenty years, Tata Motors has
only twelve Patent Cooperation Treaty (PCT) applications and two published patent
applications in the United Kingdom. Furthermore, it has no published patent applications
in any other jurisdiction such as the United States and European Patent Office.

57
The Nano was expected to go on sale in India in October 2008, but the launch was
delayed to March 2009 due to political protests at its manufacturing plant. Clearly, its
competitors and imitators worldwide will watch the Nano, and will use every misstep of
Tata Motors to their advantage.
The third was on the “TATA NANO: HOST TO A
GLOBAL DREAM”. It was published on January 20, 2008 by Chaudhuri, S; Sanyal.
This was on the showcasing of the Tata Nano at the Indian auto show on 10 January
2008, ushered in a whirlpool of apprehensions mainly because concrete answers were yet
to be found. On one hand emotions ran high terming the Nano as an automotive fantasy
that could create a different segment altogether. Critics, on the other hand, held on to
their views as to whether the Nano satisfied the requirements of the global automobile
consumer. The price hysteria surrounding the Nano, priced at a surprising $2,500 (1 lakh
Indian rupees) was the epicentre of all debates when Tata announced that the Nano
planned to claim the international market through global licensing. It was said that Tata
Motors was working on plans to hit the markets of Latin America, South East Asia and
Africa with the Nano. Given the strong distribution network of Tata Motors
internationally, the option could have been termed logical. Moreover, the rising market of
small cars cushioned Tata Nano's global dream. The future of the Nano in the
international automobile market was thus placed on a tight rope even before it hit the
roads. The world waited to discover if Tata had really created a wonder car to soothe all
expectations. The pedagogical objectives are to: (1) analyse the reasons behind the
upsurge in the market for small cars; (2) develop an insight into Tata motor's initiative to
develop the cheapest car for the global automobile consumer; and (3) debate if the Nano
had the potential to claim the global market in terms of price and quality.
The forth one was on the “Nano: Low Price and High
Performance”. It was submitted by Rahul Dosh on March 05, 2009. This article was on
Tata motors, India's largest auto maker is all set to launch the Tata Nano car. The
manufacturing brand deserves applause for making real, the conceptualization of Mr.
Tata, who once said that the Tata Nano car just happened by chance. The much awaited
Tata Nano is ready to hit Indian roads in March 2009.
With the launch, India will be the pioneer in introducing the world's least expensive car,
the Tata Nano and it is likely that may other auto manufacturers will follow suit. Tata
Nano, a compact hatch back is equipped with all the basic features without compromising
on quality and performance. Tata Nano is a two-cylinder driven car with an Engine
capacity of 625 CC powered with 33 BHP. Tata Nano can travel up to 20 to 25 km per
liter of petrol and can attain a maximum speed of 90 Km. Tata Nano car has passed the
necessary rigors of testing, such as the 'Full Frontal Crash', a test that evaluates the
impact strength of a car. What's more, Tata Nano has complied with Euro-4 emission
norms for environmental qualification tests.
The Flipside:
On the flipside, Tata Nano car in the base version is sans ac. The bumpers are just bonded
to the body. These steps have been taken to cut manufacturing costs but consumers are
assured of quality and performance. In order to reduce weight, Tata Nano makes use of
less or reduced steel and has an aluminum engine. Lightweight steel has been used
wherever required, contributing to the cheap price tag.
People's Car:

58
Tata Nano has been popularized as people's car and rightly so. It is every common man's
dream and will be transformed into reality very soon. The common man has begun bee
lining in the showrooms to book the Tata Nano car. The difference in pricing with other
cars is too wide and this seems to be quite encouraging for the car maker.
By deciphering the initial feedback on the small car, suitable up gradations will be made.
Most Indian families will be more than pleased to own a car, rather than a two wheeler.
Good things often come in small packages and this is exemplified by Tata Nano. The
fleet of cars on Indian roads is definitely going to be on the rise. Better infrastructure is
the need of the hour to evade traffic catastrophes.
Tata Nano car sans AC would be available for 1 lakh rupees while the one equipped with
AC will cost around 1.4 lakh rupees. Although the performance of the car and customer
satisfaction is yet to be seen, Tata Nano has certainly set the standards high as far as
small car pricing is concerned. This will encourage auto giants to come up with
competitive pricing for the models yet to be launched.
As the launch date is nearing, the excitement level is at its peak, to watch the first Tata
Nano roll out of the company dealerships. The nation is foreseeing resurgence in the auto
industry, and how the compact Tata Nano performs, time will reveal.

59
 OBJECTIVES OF THE STUDY
The subject matter for this research project is to study the
“Perception of People on “TATA’s NANO” Car in Jalandhar City.
This project consists of different objectives. They are as follows:

Objective of the Study:

 To know the people’s perception and awareness about Nano Car in Jalandhar city.

 To identify the various factors which may affect the purchase decision of Nano

 To understand their perception as People’s Car.

 To understand the effect of various demographic features & perception regarding

Nano.

60
 MARKETING RESEARCH

Marketing research plays an important role in the process of marketing. Starting with
market component of the total marketing talks. It helps the firm to acquire a better
understanding of the consumers, the competition and the marketing environment.

DEFINITION

“Marketing research is a systematic gathering, recording and

analysis marketing problem to facilitate decision making.”
- Coundiff & Still.
“Marketing research is a systematic problem analysis, model
building and fact finding for the purpose of important decision
making and control in the marketing of goods and services.
- Phillip Kotler .

Marketing Research Problem:

To find out the “Perception of People on TATA’s NANO Car in Jalandhar City”.

61
 USEFULNESS OF THE STUDY

 This study would be useful for companies to know what people perceive and
think about “Small Fight” that is NANO.

 This study would be useful to other students as a secondary data.

 This study would be useful to form strategies according to perception of people

about NANO.

62
 LIMITATIONS OF THE STUDY
It is said, “Nothing is perfect” and if the quite is true, I am sure that there
would be few shortcoming in this project also. Sincere effortshave been made
to eliminate discrepancies as far as possible but few would have reminded due
to the limitations of the study. These are:

 Limited Scope
The scope of this research study is limited to 70 respondents of Jalandhar City.

 Ambiguous Replies
A few respondents gave ambiguous replies for certain questions or omitted
the responses to some of them. The interpretation of such responses becomes
difficult and could generate wrong results.

 People were hesitant to disclose the true facts.

 It is only for short period of time.

63
 Research can be define as a Scientific and Systematic
search for relevant information on a specific topic i.e.
“Perception of People on TATA’s NANO Car”

Redman & Mory define Research as “Systematized Effort to Gain New Knowledge”

INSTRUMENTATION

 SOURCES OF DATA COLLECTION:-

PRIMARY - DATA:
Primary data is a data which did not exist earlier and is being collected by the researcher
first time for it’s specific objectives.In other words, direct collection of data from the
source of information, with the help of Questionnaire.

For my survey, Questionnaire has been used to collect the Primarydata.

SECONDARY - DATA:
And data which have been collected earlier for some purpose are the secondary data.
Indirect collection of data from sources containing past or recent past information like
company’s brochures, annual publication, books etc.

The secondary date has been collected from the following modes:

 Data through Internet Sources.

 Magazines.
 RESEARCH – DESIGN:-

Research Design is the arrangement of conditions for collection & analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.
A research design is a master plan or model for the conduct of formal investigation.
Research Design is the blue print that is followed in completing study.

64
The research conducted by me is a Descriptive Research. This is descriptive in nature
because study is focused on fact finding investigation in a well structured form and is
based on primary data. Descriptive Research describe the characteristics of a population.

 RESEARCH PLAN:-

Type of study: For completing my study I have gone for Sample Study because looking
at the size of population & the time limitation it was not convenient for me to cover entire
population. Hence I have gone for Sample Study rather than Census Study.

 SAMPLING PLAN:-
“A Sample is a Smaller Representation of the larger whole”
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure that researcher would adopt in selecting items
from sample. Sampling plan may as well lay down the member of items to be inched in
the sample i.e. the size of sample. Sampling plan is determined before data are collected.

 STEPS IN SAMPLING PLAN:-

SAMPLING - FRAME:

The list of sampling units from which sample is taken is called Sampling Frame.
Jalandhar city map was studied thoroughly and samples were selected from the places in
a scattered manner to get effective result.

SAMPLING - SIZE:
Total sample size is 70 Respondents.

SAMPLING - PROCEDURE:
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling was quite easy to measure, evaluate and co-operative.
3 types of sampling techniques were used:

 Convenient Sampling.
 Quota Sampling.
 Snowball Sampling.

 FIELD - WORK:
I have collected the data through medium called Questionaire collecting the responses
from 70 people in all.

65
I started my project very first educating the respondents about my entire project, and ask
them to co-operate with me. Mostly all the respondent were aware as the topic of my
project is Current. So I didn’t face any type of difficulty during my project in the
process of explaining and taking there responses on the questionnaire.
 QUESTIONNAIRES: -

Questionnaire (also known as self-administered survey) is a type of statistical survey

handed out in paper form usually to a specific demographic to gather information. A
document that contains a set of questions that has been specifically formulated as a means
of collecting information and surveying opinions,etc on a specified subject or theme etc.

A Questionnaire was constructed for my survey.

Through the questionnaire I was able to get an insight into the people’s mind and learn
about there perception about “NANO”. All of the questions mentioned in the
questionnaire were helpful to me in knowing the people’s perception on Tata’s Nano.

Questionnaire Design:

The questionnaire consists of 2 sections. Section I consists of 14 questions which help

me in accomplishing the objectives of my project. Section II consists of Demographic
Features.

 HYPOTHESIS TESTING:

“Hypothesis is an assumption or an infofmed guess made about a population

characteristic”
Conventional approach to hypothesis testing is to set up two hypotheses instead of one in
such a way that if one hypothesis is true, the other is false. Hypothesis, for this research,
are as follow:

Null Hypothesis – Ho
Alternative Hypothesis – Hi.

 Ho: There is Equal Liking for Nano.

P = 0.5
Hi: P ≠ 0.5

 Ho: Income and Nano as further car are independent.

Hi: Income and Nano as further car are not independent.

 Ho: Income and Nano Liking are Independent.

Hi: Income and Nano Liking are not Independent.

66
 Ho: There is equal liking of Nano for Male and Female in the population.
P1 = P2
Hi: P1 ≠ P2

 Data analysis method : Graphical method.

 Area of survey : Jalandhar City.

 Timing of survey : 9.00 am to 2.00 pm and

5.00 pm to 8.00 pm

67
 INTERPRETATION AND ANALYSIS

This has been classified in to two sections:

SECTION-I

(1) Showing the first thing, which comes into People’s mind when they think about
“NANO”.

Table-1

Category No. of Respondent Percentage of Respondent

Choti Si 16 23 %
1 Lakh Car 23 34 %
Compact 0 0%
Affordable 15 21 %
Economic 15 21 %
Leisure 01 1%
Total 70 100 %

Graph-1

68
Interpretation:-

The above graph shows that:

 Majority of the respondents i.e. 34% says that the first thing, which comes into
their mind when they think about “NANO” is 1 Lakh Car.

 23% of the respondents says that the first thing, which comes into their mind
when they think about “NANO” is Choti Si.

 21% of the respondents says that the first thing, which comes into their mind
when they think about “NANO” is Affordable and Economic.

 And only one respondent says it’s Leisure.

69
(2) DoYou like to buy Tata’s “NANO”.

Table-2

Category No. of Respondent Percentage of Respondent

Yes 37 53%
No 33 47%
Total 70 100 %

Graph-2

Interpretation:-

The above graph shows that:

 53% of the respondents like to buy Tata’s Nano while 47% of the respondents
do not like to buy Tata’s Nano.

 From the above table we can say that almost half of the respondents like to buy
Tata’s Nano while half don’t to buy Tata’s Nano.

70
If Yes, then which feature of “NANO” may attract your purchase decision.

Table-3

Category No. of Respondent Percentage of Respondent

Price 20 54%
Size 06 16%
Mileage 03 8%
Interior space 00 0%
Design 01 3%
Brand “TATA” 05 13%
Environment 01 3%
Friendly
Overall Economical 01 3%
Total 37 100%

Graph-3

71
Interpretation:-

 From the finding it came out that most of the respondents i.e. 54% consider Price
as the major purchasing factor.

As Tata creates New Price Point i.e. 1 Lakh – 2 Lakh and according to survey
it’s only the Price that attracts the purchase decision of most respondents.

 Another factor after price that attracts the purchase decision of respondents is Size
i.e 16% respondents consider Size as the major purchasing factor.

 13% respondents consider Brand Tata as the major purchasing factor or we can
say that 13% respondents are Brand Loyal.

 8% respondents consider Mileage as the major purchasing factor.

 3% each respondents consider Design, Environment Friendly and Economical

respectively as the major purchasing factor.

72
(4) If you purchase “NANO” then for what purpose would you like to use “NANO”.

Table-4

Category No. of Respondent Percentage of Respondent

Office Purpose 06 16%
Personal Purpose 19 51%
Joy Purpose 11 30%
Gift Purpose 00 0%
All Purposes within City 01 3%
Total 37 100%

Graph-4

Interpretation:-

 51% respondents said that they would like to use Nano for Personal Purpose.

 While 30% respondents said that they would like to use Nano for Joy Purpose
as it’s a small car.

 And yet other 16% respondents said that they would like to use Nano for Office
Purpose.

73
 Only 3% respondents said that they would like to use Nano for All Purposes
within city.

(5) If no, then why do you not like “NANO”,rank the following attributes.

Table-5a:- Ranking

No. Quality Aluminium Resale Top Small Design No Not Engine

Body value Speed car Hand suitable Rear
Break for
Long
drive
1 8 9 5 1 4 7 3 2 6
2 6 3 9 4 8 1 7 2 5
3 4 5 8 3 1 2 6 7 9
4 5 3 9 2 4 1 8 6 7
5 7 6 5 3 4 9 1 2 8
6 5 4 8 3 6 9 7 1 2
7 5 2 9 4 8 3 6 1 7
8 5 4 7 2 9 8 6 1 3
9 4 3 9 2 6 7 8 1 5
10 4 3 8 2 5 6 9 1 7
11 4 3 8 2 5 6 9 1 7
12 4 6 2 9 3 5 8 1 7
13 9 5 4 8 6 3 7 1 2
14 4 5 1 6 2 7 8 3 9
15 9 2 8 6 4 5 3 1 7
16 7 3 9 1 5 6 8 2 4
17 1 2 7 5 8 9 3 4 6
18 7 2 9 3 6 4 8 1 5
19 6 3 9 2 8 5 7 1 4
20 5 3 9 2 6 8 7 1 4
21 5 4 6 2 8 7 1 3 9
22 5 6 9 2 3 1 7 4 8
23 3 1 6 4 8 9 5 2 7
24 6 7 5 4 1 8 2 3 9
25 6 3 9 4 5 7 8 1 2
26 4 3 5 1 6 8 9 2 7
27 5 3 9 4 8 7 6 1 2
28 7 2 9 1 8 5 6 3 4
29 4 9 6 1 3 2 7 8 5
30 6 7 2 1 5 3 8 9 4
31 4 7 3 9 5 1 6 8 2
32 5 4 9 2 1 3 6 8 7
33 1 5 6 3 2 4 9 7 8

74
Table-5b:- Rating

RANK 1 2 3 4 5 6 7 8 9
RATE 10 9 8 7 6 5 4 3 2

No. Quality Aluminium Resale Top Small Design No Not Engine

Body value Speed car Hand suitable Rear
Break for
Long
drive
1 3 2 6 10 7 4 8 9 5
2 5 8 2 7 3 10 4 9 6
3 7 6 3 8 10 9 5 4 2
4 6 8 2 9 7 10 3 5 4
5 4 5 6 8 7 2 10 9 3
6 6 7 3 8 5 2 4 10 9
7 6 9 2 7 3 8 5 10 4
8 6 7 4 9 2 3 5 10 8
9 7 8 2 9 5 4 3 10 6
10 7 8 3 9 6 5 2 10 4
11 7 8 3 9 6 5 2 10 4
12 7 5 9 2 8 6 3 10 4
13 2 6 7 3 5 8 4 10 9
14 7 6 10 5 9 4 3 8 2
15 2 9 3 5 7 6 8 10 4
16 4 8 2 10 6 5 3 9 7
17 10 9 4 6 3 2 8 7 5
18 4 9 2 8 5 7 3 10 6
19 5 8 2 9 3 6 4 10 7
20 6 8 2 9 5 3 4 10 7
21 6 7 5 9 3 4 10 8 2
22 6 5 2 9 8 10 4 7 3
23 8 10 5 7 3 2 6 9 4
24 5 4 6 7 10 3 9 8 2
25 5 8 2 7 6 4 3 10 9
26 7 8 6 10 5 3 2 9 4
27 6 8 2 7 3 4 5 10 9
28 4 9 2 10 3 6 5 8 7
29 7 2 5 10 8 9 4 3 6
30 5 4 9 10 6 8 3 2 7
31 7 4 8 2 6 10 5 3 9

75
32 6 7 2 9 10 8 5 3 4
33 10 6 5 10 9 7 2 4 3
193 226 136 255 192 187 154 264 175
Table-5

Category Rating Ranking

Quality 193 4
Aluminium Body 226 3
Resale value 136 9
Top Speed 105 KM 255 2
Small car 192 5
Design 187 6
No Hand Break 154 8
Not suitable for Long drive 264 1
Engine Rear 175 7

Graph-5

76
Interpretation:-

The above graphs are drawn on the basis of Rating and Ranking.

 Rank 1 is given to the attribute “Not Suitable For Long Drive” as most of the
respondents don’t like NANO because it is not suitable for long drive.

 Rank 2 is given to the attribute “Top Speed 105 km”- as most of the respondents
don’t like NANO because it’s top speed is not according to people’s need.

 Rank 3 is given to the attribute “Aluminium Body”- as most of the respondents

don’t like NANO because it is made up of aluminium which is not good from
safety point of view.

 Rank 4 is given to the attribute “Quality”- as some respondents don’t like

NANO because of it’s quality.

 Rank 5 is given to the attribute “Small Car”- as some respondents don’t like
NANO because of it’s size.

 Rank 6 is given to the attribute “Design”- as some respondents don’t like NANO
because of it’s design.

 Rank 7 is given to the attribute “Engine Rear”- as some respondents don’t like
NANO because of it’s engine at rear and petrol tank at front.

 Rank 8 is given to the attribute “No Hand Break”- as some respondents don’t
like NANO because it does not have hand break which may create problem in
parking.

 Rank 9 is given to the attribute “Resale Value”- as some respondents don’t like
NANO because they think that a small car does not have much resale value.

77
 (6) Are you considering “NANO” as your Ist car or IInd car.

Table-6

Category No. of Respondent Percentage of Respondent

Ist Car 17 24%
IInd Car 26 37%
IIIrd Car 06 9%
No Answer 21 30%
Total 70 100%

Graph-6

Interpretation:-

The above graph shows that:

78
  37% of the respondents are considering Nano as their IInd Car.

 30% of the respondents give no answer, as most of the respondents who don’t
like Nano car are not considering Nano as their Ist car or IInd car or any other.

 24% of the respondents are considering Nano as their Ist Car.

 While 9% of the respondents are considering Nano as their IIIrd Car.

(7)Showing whether the Purchase Decision of “NANO” affects the Status of

respondents.

Table-7

Category No. of Respondent Percentage of Respondent

Yes 15 21%
No 42 60%
Can’t say 13 19%
Total 70 100%

Graph-7

Interpretation:-

79
Here the above graph shows that:

 Out of 70 respondents 42 respondents with 60% think that the Purchase

decision of NANO will not affect their status. Here respondents were thinking
in both the sense positively as well as negatively.

 Its followed by the respondents who were thinking that purchasing decision of
NANO will affect their status, there are 15 respondents with 21% falls in this
category.

 And yet other 19% respondents said that they don’t know whether Purchase
decision of NANO will affect their status or not.

(8) Showing perception of people to buy a Second hand car instead of Nano.

Table-8

Category No. of Respondent Percentage of Respondent

Yes 20 29%
No 41 59%
Can’t say 09 12%
Total 70 100%

Graph-8

Interpretation:-

The above graph shows that:

80
  Out of 70 respondents 41 respondents would like to purchase “NANO” instead
of any Second hand car with 59%.

 Where as 29% respondents i.e. 20 respondents would like to go for Second

hand car instead of Tata’s “NANO”.

 And yet other 12% respondents said that they don’t know whether to go for
Second hand car or “NANO”.

(9) Showing, If the price of “NANO” rises, then would you like to go for it.

Table-9

Category No. of Respondent Percentage of Respondent

Yes 11 16%
No 44 63%
Can’t say 15 21%
Total 70 100%

Graph-9

Interpretation:-

The above graph shows that:

81
  Majority of the respondents i.e. 63% said that if price of Nano rises then
they would not like to go for Nano.
It’s clear that Price is the most important factor which leads the people
towards Nano.
Graph 3 also supports this statement.

 Next to it are the respondents i.e.21% who are not sure whether they go for
Nano or not if the price rise.

 And 16% respondents said that they would go for Nano even if it’s price
rises.

(10) Instead of purchasing Bike, would you prefer to go for “NANO”.

Table-10

Category No. of Respondent Percentage of Respondent

Yes 35 50%
No 28 40%
Can’t say 07 10%
Total 70 100%

Graph-10

Interpretation:-

The above graph shows that:

82
  Most of the respondents i.e.50% want to purchase NANO instead of a Two-
wheeler.
Simply because of Car Advantages and Two-wheeler Disadvantages.

 Next to it are the respondents i.e.40% who want to purchase Two-wheeler

instead of a NANO.
Simply because of Two-wheeler Advantages and Car Disadvantages.

 And 10% respondents don’t know whether instead of purchasing Bike they
would prefer to go for “NANO” or not.

(11) Do you agree with Tata’s projection of “NANO” as “People’s car”.

Table-11

Category No. of Respondent Percentage of Respondent

Yes 43 61%
No 12 17%
Can’t say 15 22%
Total 70 100%

Graph-11

Interpretation:-
The above graph shows that:

83
  Majority of the respondents i.e.61% agree with Tata’s projection of
“NANO” as “People’s car”.And we can say that:
“Promotion of Tata NANO in the “Delhi’s Auto Expo” proved to be a great
success for NANO. And with the time before its launch on the roads it
(NANO) emerged as the people’s car”.

 22% respondents remain silent on this statement.

 17% respondents do not agree with Tata’s projection of “NANO” as

“People’s car”.

(12) Will there be traffic problem with the introduction of “NANO” on Indian
roads.

Table-12

Category No. of Respondent Percentage of Respondent

Yes 49 70%
No 15 21%
Can’t say 06 9%
Total 70 100%

Graph-12

Interpretation:-

84
The above graph shows that:

 Majority of the people i.e.70% believe that there will be a huge traffic problem
with the increasing number of “NANO” running on the roads.
It’s true that 1 NANO = 3 MOTOR CYCLES.

 21% respondents said that there will be no traffic problem with the introduction
of “NANO”.

 And few respondents were not sure whether there will be traffic problem or not
with the introduction of “NANO”.

(13) Can you trust “NANO” for safety.

Table-13

Category No. of Respondent Percentage of Respondent

Yes 26 37%
No 30 43%
Can’t say 14 20%
Total 70 100%

Graph-13

Interpretation:-

The above graph shows that:

85
  43% respondents can’t trust “NANO” for safety.

 37% respondents trust “NANO” for safety.

 20% respondents don’t know whether “NANO” is safe or not.

(14) Do you believe that NANO is a dream car of yours.

Table-14

Category No. of Respondent Percentage of Respondent

Yes 09 13%
No 55 79%
Can’t say 06 8%
Total 70 100%

Graph-14

Interpretation:-

The above graph shows that:

86
  Majority of the respondents i.e.79% do not think that “NANO” is their Dream
car.
When asked why, most of the respondents said that there Dream Car is Audi,
BMW, Mercedes.

 Just 13% respondents think that “NANO” is their Dream car.

SECTION-II

(1). GENDERWISE Bi-Furcation:-

Table-1

Gender No. of Respondent Percentage of Respondent

Male 47 67%
Female 23 33%
Total 70 100%

Graph-1

The above mention graph clearly states that out of 70 respondents , 47 are Male and
23 respondents are Female.

87
(2). AGE DISTRIBUTION.

Table-2

Age No. of Respondent Percentage of Respondent

18-30 27 39%
30-50 28 40%
Above 50 15 21%
Total 70 100%

Graph-2

 Most respondents are from the age group of 18-30 i.e.39% and 30-50 i.e.40%.
 And 21% respondents are from the age group of Above 50.

88
(3). PROFESSION:-

Table-3

Category No. of Respondent Percentage of

Respondent
Govt. Employee 09 13%
Business man 27 39%
Pvt. Employee 06 9%
Professional 07 10%
Student 11 16%
House Wife 07 10%
Retired 01 1%
Pensioner 01 1%
Farmer 01 1%
Total 70 100%

Graph-3

89
I have tried to cover all the people from different sectors. Here in my study there
are more number of Businessman, Government Employee, Student and Pvt. Sector
Employee covered than other sector.

(4). MONTHLY INCOME:-

Table-4

Income No. of Respondent Percentage of Respondent

7,500 – 15,000 17 31%
15,000 – 25,000 12 22%
25,000 – 35,000 07 13%
35,000 – 50,000 09 16%
Above 50,000 10 18%
Total 55 100%

Graph-4

90
The above graph shows the different Income Group of respondents.

HYPOTHESIS TESTING

 Test of significance of Single Proportion

(Z-test)

Like Nano = 37
Dislike Nano = 33

Ho: There is Equal Liking for Nano.

P = 0.5
Hi : P = 0.5

p–P
Z= ----------
√PQ

91
 N

Z= 37 – 0.5
70
-----------------
√ 0.5 * 0.5

70

Z = 0.47

Decision:
The calculated value of Z is less than 1.96 which is tabulated value at 5% level for 2-tail
test. Therefore the Null Hypothesis is Accepted.

Like Dislike Level of significance Decision

37 33 0.47 Insignificant

 Chi – Square Test

Ho: Income and Nano as further car are independent.

NANO AS INCOME
FURTHER CAR Below≤25000 Above-25000 Total
Ist Car 17 00 17
IInd Car 14 12 26
IIIrd Car 01 05 06
No Answer 11 10 21
Total 43 27 70

Table of Expected Frequency:

NANO AS INCOME
FURTHER CAR Below≤25000 Above-25000 Total

92
Ist Car 17 10.4 00 6.6 17
IInd Car 14 16.0 12 10.0 26
IIIrd Car 01 3.7 05 2.3 06
No Answer 11 12.9 10 8.1 21
Total 43 27 70

Expected Frequency:

17 * 43
E(17) = --------- = 10.4
70

26 * 43
E(14) = --------- = 16.0
70

6 * 43
E(1) = -------- = 3.7
70

Degree of Freedom:

D = (C-1) * (R-1)
= (1)*(3)
=3

Observed Expected O-E (O – E)2 (O – E)2

Frequency (O) Frequency (E) E
17 10.4 6.6 43.56 4.19
00 6.6 6.6 43.56 4.19
14 16.0 2.0 4.00 0.25
12 10.0 2.0 4.00 0.40
1 3.7 0 0 0
5 2.3
11 12.9 1.9 3.60 0.28
10 8.1 1.9 3.60 0.44
∑= 9.75

(O–E)
∑ = ----------- = 9.75
E

Now Degree of Freedom:

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D = 3-1 = 2

Table valueat 5% level of significance for 2 d.o.f = 5.991

Decision:

Comparing calculated and table values of Chi-Square, we find that calculated value is
more than the table value and as such Null Hypothesis does not hold good which means
that two attributes i.e. income and nano as further car are associated and the
association is not because of some chance factor but it exists in reality.

 Test for Independence of Attributes

(Chi-Square test)

Ho: Income and Nano Liking are Independent.

NANO LIKING INCOME

Below≤25000 Above-25000 Total
Yes 26 11 37
No 17 16 33
Total 43 27 70

N (ad – bc) 2
X2 = ------------------------------------------------------------------

(a+b)*(c+d)*(a+c)*(b+d)

94
 70(26*16 – 17*11) 2
2
X = ------------------------
37*33*43*27

X2 = 2.59

Degree of Freedom:
= (2-1)*(2-1)
=1

Decision:

The table value of Chi-Square at 5% level with 1 d.o.f = 3.841

Hence we accept the Null Hypothesis i.e.Ho and conclude that Income level and Nano
Liking are Independent.

 Test of Significance of Difference of Proportion

(Z – test)

Ho: There is equal liking of Nano for Male and Female in the population.
P1 = P2

Hi: P1 ≠ P2
Where P1= Male and P2= Female

(p1 – p2) - 0
Z= ----------------------------
√ P¯ Q¯ (1/ n1 + 1/ n2)

n1p1 + n2p2
P¯ = ------------------
n1 + n2

95
 47 * 25/47 + 23 * 12/23
P¯ = ---------------------------------------
70

P¯ = 0.5286

Q¯ = 1 - .5286 = .4714

25/47 – 12/23
Z= ---------------------------------
√.5286*.4714( 1/47 + 1/23)

Z= .085

.085 < 1.96 i.e. the calculated value of Z < the table value of Z at 5% level of
significance.
Hence we Accept Ho and conclude that there is no significant difference in P1 and P2.

FINDINGS AND SUGGESTIONS

 FINDINGS:

 I have found that all the respondents of Jalandhar City which covered under my
study are well aware about TATAs “NANO”.

 Majority of the respondents i.e. 34% says that the first thing, which comes into
their mind when they think about “NANO”, is 1 Lakh Car.

 In my study I have found that almost half of the respondents like to buy Tata’s
Nano while half don’t like to buy Tata’s Nano.

 From the finding it came out that most of the respondents i.e. 54% consider Price
as the major purchasing factor.

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 From the finding it came out that most of the respondents don’t like NANO
because it is not suitable for long drive.

 I have found that most of the respondents are considering Nano as their IInd Car.

 Out of 70 respondents 42 respondents with 60% think that the Purchase

decision of NANO will not affect their status. Here respondents were thinking
in both the sense positively as well as negatively.

 I have found that out of 70 respondents, 41 respondents would like to purchase

“NANO” instead of any Second hand car.

 Majority of the respondents i.e. 63% said that if price of Nano rises then they
would not like to go for Nano.
It’s clear that Price is the most important factor which leads the people towards
Nano.

 Most of the respondents want to purchase NANO instead of a Two-wheeler.

Simply because of Car Advantages and Two-wheeler Disadvantages.

 Majority of the people i.e.70% believe that there will be a huge traffic problem
with the increasing number of “NANO” running on the roads.
It’s true that 1 NANO = 3 MOTOR CYCLES.

 Majority of the respondents i.e.79% do not think that “NANO” is their Dream
car.

 SUGGESTIONS:

 Tata should consider various weaknesses of Nano, so that their would be

more liking for Nano among People.

 As people believes that NANO is people’s car, and will be affordable by a

common man which was a dream earlier for them. So the price should be
kept stable in future. Otherwise it will be out of their reach and People
believe in Mr. Ratan Tata’s statement of- “Promise is a Promise”.

 Tata should give exchange offer against a two/four wheeler so that those
consumers can be easily converted to NANO users.

 Safety measures can be enhanced, because people consider it as their

prime concern while purchasing.

 An option for customization should be available.

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During my study I had done a project on “Perception of People on Tata “NANO” car in
Jalandhar City”. I had learn a lot and get opportunity to know what people actually
thinks and what they perceive about TATA’s “NANO” because I had done field work
and I was in between the people only. I gain a practical knowledge which I haven’t got
anywhere.

I had used a Questionnaire as a tool through which I had gathered a lot of information. I
fill up 70 questionnaires of Jalandhar City; under my study I have covered different
class of people to know their perception and awareness level for “NANO”. I analyze
from my questionnaire that the first thing, which comes into People’s mind when they
think about “NANO”is 1 Lakh Car, and out of 70 respondents, 53% respondents like

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the TATA’s “NANO” and 47% not. I also found that majority of the respondents like
“NANO” because of its Price; it shows that the respondents, who like the “NANO” or
want to buy, prefer the “NANO” due to its Price. On the other hand, I found that most of
the respondents don’t like “NANO” because it is not suitable for long drive.

Moreover when I asked from respondents that “Do you believe that NANO is a dream
car of yours” most of the respondents i.e.79% respondents said “No”.

All this information will be benefited to know the “Perception of People on Tata’s Nano
in Jalandhar City”. It can be also benefited to “TATA MOTORS” as I had mentioned
all the likes and dislikes of the respondents in my Study.

BOOKS:

 Kotler Philip and Keller Kevin Lane, “Marketing Management”, Pearson, 12th
edition, 2008.
 Malhotra Naresh, “Marketing Research”, Pearson, 4th edition, 2008.
 Kothari C.R, “Research Methodology”, New Age International Limited, 2nd
edition, 2007.
 Kazmi Azhar, “Strategic Management”, Tata McGraw-Hill Limited, 3rd edition,
2009.

JOURNALS:

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  Venu Madhav Govindu, “The Nano and its Discontents”, TEHELKA, Mar 10,
2009

 Ghosal, “Launch of the Tata Nano - The People’s car”, India Briefing, Mar 23,
2009

 Gupta Mahesh, “Tata’s Nano to hit India’s streets in July 2009”,AutocarIndia,

March 23, 2009
 Ravi Kant, “The story behind the Nano”, Business Week, May 9th, 2008

 Rick Wagoner, “Nano gets Geneva buzzing”, Autocar Professional, March 26th,
2008

 Carlos Ghosn, “Nano - a star at the Show”, Business Line, March 9th, 2008

NEWSPAPERS:

 Prashant Mahesh, “A PROMISE IS A PROMISE”, Economic Times, 2009 Mar

29, Page: 3
 Nandini Sen Gupta & Chanchal Pal Chauhan, “Tata Motors revs up retail network
for selling Nano”, Economic Times, 2008 Sep 08, Page: 4
 Sutanuka Ghosal, “Nano may have Ace up its sleeve”, Economic Times, 2008
Sep 25, Page: 4
 Lijee Philip, “Tata asks dealers to get set for Nano ride”, Hindustan Times, 2009
Feb 20, Page: 20
 Pankaj Doval, “Singur not OK, Tata reverses Nano out”, Times Of India, 2008
Oct 04, Page: 1
 Rajesh Chandramouli & Kumar Shankar Roy, “Tata to roll out fewer Nanos”,
Financial Express, 2008 Dec 22, Page: 11

WEBSITES:

 www.tata.com
 www.tatamotors.com
 www.tatanano.com
 www.automobileindustry.com
 www.siam.com
 www.ibef.com
 www.bbcnews.com
 www.buzzle.com
 www.wikipedia.com
 www.autotantra.in
 www.surfindia.com/automobile/automobile-industry
 www.automobileindia.com/
 auto.indiamart.com/

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 www.siamindia.com/scripts/aboutus.asp
 www.autoblogs.in/
 news.bbc.co.uk/1/hi/business/6478685.stm
 www.crisil.com
 www.carwale.com
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/BBC%20NEWS
%20_%20Business%20_%20Timeline_%20India's%20automotive
%20industry.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Automobile
%20Industry%20India.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Automotive
%20industry%20-%20Wikipedia,%20the%20free%20encyclopedia.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Automobile
%20Industry%20In%20India,Indian%20Automobile%20Industry,Indian%20Auto
%20Industry.html.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/
Automobiles.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/Indian
%20Automobile%20Sector%20-%20A%20Booming%20Market.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/Production
%20Trend%20__%20SIAM.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/Export%20Trend
%20__%20SIAM.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Automobile
%20Industry%20In%20India,Indian%20Automobile%20Industry,Indian%20Auto
%20Industry.html.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Tata
%20Nano%20-%20Tata%20Nano%20price,%20Tata%20Nano%20Reviews
%20_CarDekho.com.htm.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Indian
%20Small%20Cars,Sport%20Compact%20Car,Small%20Car%20Reviews,Best
%20Small%20Car,Small%20Cars%20In%20India.html.
 file://localhost/C:/Documents%20and%20Settings/007/Desktop/car/Tata
%20Nano%20Base%20vs%20Maruti%20Suzuki%20Alto%20Std%20-%20BS
%20III%20vs%20Maruti%20Suzuki%20800%20Std%20-%20BS%20III%20vs
%20Maruti%20Suzuki%20Zen%20Estilo%20LX%20_%20Car%20Comparisons
%20-%20CarWale.com.htm.

 www.shvoong.com/exact-sciences/1744612-tata-nano-lakhtakia-car-car/ - 66k.

 www.shvoong.com/business-management/1872421-tata-nano-low-price-high / -
67k

 papers.ssrn.com/sol3/papers.cfm?abstract_id=1331899.

101
  www.topspeed.com/cars/car-news/tata-nano-to-europe-in-four-years-
ar52171 .html - 39k

 papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1272355_code517200.pdf?.

 www.thompson.com

APPENDICES

Questionnaire
SECTION – I

(1) What is the first thing, which comes into your mind when you think about
“NANO”?

Choti Si 1 Lakh Car Compact

Affordable Economic Any other…………….

(please specify)
(2) Do You like to buy Tata’s “NANO”?

Yes No

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 If Yes then go to Question No. 3&4

If No then go to Question No. 5

(3) Which of the following feature of “NANO” may attract your purchase decision?

Price Size Mileage

Interior space Design Brand “TATA”

Environment Any Other, (please specify) ……………………

Friendly

(4) If you purchase “NANO” then for what purpose would you like to use “NANO”?

Office Purpose Personal Purpose

Joy Purpose Gift Purpose

Any other, (please specify).................................

(5) If no, then why do you not like “NANO” ,rank the following attributes?

Quality Aluminium Body Resale value

Top Speed Small car Design

(105km)
No Hand Not suitable for Engine Rear
Break Long drive

Any Other, (please specify) …………………….

(6) Are you considering “NANO” as your Ist car or IInd car?

Ist car IInd Car Any other

(Specify Number)
(7) Do you think that Purchase decision of “NANO” will affect your status ?

Yes No Can’t say

(8) Would you like to buy a second hand car instead of “NANO”?

Yes No Can’t say

(9) If the price of “NANO” rises, then would you like to go for it?

Yes No Can’t say

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(10) Instead of purchasing Bike, would you prefer to go for “NANO”?

Yes No Can’t say

(11) Do you agree with Tata’s projection of “NANO” as ‘People’s car’?

Yes No Can’t say

(12) Do you think there will be traffic problem with the introduction of “NANO” on
Indian roads?
Yes No Can’t say

(13) Can you trust “NANO” for safety?

Yes No Can’t say

(14) Do you believe that NANO is a dream car of yours ?

Yes No Can’t say

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