Research Project on Automobile Sector

Description
The automotive industry is a term that covers a wide range of companies and organisations involved in the design, development, manufacture, marketing, and selling of motor vehicles, towed vehicles, motorcycles and mopeds. It is one of the world's most important economic sectors by revenue.

DECLEARTION
I hereby declare that the project entitled “Sectoral Research” is submitted in partial fulfillment of my PGDM Degree ?2010-2012? was carried out with sincere intention .

To the best of my knowledge it is an original piece of work done by me and it has neither been submitted nor published at any where before.

Name: V Specialization Fin+Mkt) Date: Place: Pune

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AKNOWLEDGEMENT

I wish to acknowledge my sincere gratitude to all persons who whole-heartedly contributed their sincere support that helped me for the successful completion of my summer internship project. My sincere thanks are to Dr S B Chordiya founder President and chairman Suryadatta institute of management study for his encouragement towards the project which made easier and motivated me to complete the report. My sincere thanks to my FACULTIES who with their emotional support and encouragement enabled me to successfully complete my project. Above all, I offer my heartiest thanks especially to the Prof. Mahesh R. for the His fullest support and wonderful guidance that enabled me to complete in time my project work.

PLACE: DATE:

V (Fin. + Mkt.)

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Table of contents
Titles Pages no.

Automobile Sector in India Introduction of Automobile sector Toyota Motors History of Company Board of directors Product portfolio Customer relationship SWOT Analysis/ Financial Statements Future plans TATA Motors History of company Awards/Achievement Head office /Branch offices Board of Directors Product portfolio Customer Relationship Supply Chain management SWOT Analysis Financial statements Future plan Mahindra & Mahindra History of Company Regional/Branch offices Board of Directors Product Portfolio SWOT Analysis Financial Statement Future Plans Swaraz Mazda History of company Product portfolio SWOT Analysis/Financial Statements

04 5to9 10to11 12 13to15 16to17 18to20 21to22

23to24 25 26 27 28to29 30to31 32 33 34to36 37

38 39 40 41to43 44 45to47 48 49to50 51 52to55
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AUTOMOBILE SECTOR

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Introduction to Automobile Sector:Overview - Indian Automobile Industry:Over a period of more than two decades the Indian Automobile industry has been driving its own growth through phases. The entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. By late-90's the industry reached self reliance in engine and component manufacturing from the status of large scale importer. With comparatively higher rate of economic growth rate index against that of great global powers, India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capita income, more people are ready to Own private vehicles including cars and two-wheelers. Product movements and manned Services have boosted in the sales of medium and sized commercial vehicles for Passenger and goods transport. Side by side with fresh vehicle sales growth, the Automotive components sector has witnessed big growth. The domestic auto components Consumption has crossed rupees 9000 Crores and an export of one half size of this figure.

Overview of Automobile Industry:The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years. As per Society of Indian Automobile Manufacturers (SIAM) the market share of each segment of the industry is as follows:.

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The market shares of the segments of the automobile industry:The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years. Consistent growth and dedication have made the Indian automobile industry the secondlargest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the customers‘ needs to a large extent. Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales. There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological advancements. Besides, there are many new projects coming up in the automobile industry leading to the growth of the sector. The Government of India has liberalized the foreign exchange and equity regulations and has also reduced the tariff on imports, contributing significantly to the growth of the sector. Having firmly established its presence in the domestic markets, the Indian automobile sector is now penetrating the international arena. Vehicle exports from India are at their highest levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle East and African and Asian markets. The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena.

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Consumption trends:About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion gallons of gasoline and diesel fuel yearly. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.The sustainable transport movement focuses on solutions to these problems. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive markets are Iran and Indonesia. History:The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-

distance trip in August 1888 (from Mannheim to Pforzheim and back) that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event. Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle; Bernardi enlarged the tricycle in 1892 to carry two adults.

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Export and Import of Automobile In India:In auto export, passenger vehicle exports have grown over five times from the start of the decade and two-wheeler exports have reached more than double. Current Scenario:?

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Foreign auto makers, including Ford Motor Co. , General Motors Corp., Honda Motor Co. Ltd., Toyota Motor Corp., DaimlerChrysler AG and Hyundai Motor Co. Ltd., are looking to increase their presence in India and use it as an export hub. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.

Overview Snippets:? ? ? ?

In 2003-04 the export of the industry was 55.98%. Two-wheelers are mostly exported from India. The reason behind the export is cost competitiveness in terms of labor and raw material. The export of auto components has grown to 19% from the start of the decade.

Facts & Figures:The Indian automotive export industry presently is finding a good recognition globally. The auto industry along with the component industry is contributing to the export effort of the country. In 2002-03, the export of the automobile industry had registered a growth rate of 65.35%. In 200304, it was 55.98%. The following table briefs about the 2003-04 and 2004-05 (upto April-Dec. 2004) automobile export in numbers. The automobile exports are at an all time high as was indicated by Society of Indian automobile Manufacturers in a report released in 2006. According to the report, the passenger car segment saw a rise of 9% in January 2006.

The following table will provide a clear picture of the rapid rise of automobile Export in India. Types of Vehicle Passenger Vehicles Utility Vehicles Multipurpose Vehicles Total 2002-03 70250 1180 570 72000 2003-04 125300 3050 915 129265 2004-05 160650 4510 1225 166385 2005-06 170200 4490 1100 175790

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List of Major Established companies:? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? AUDI AG BMW Manufacturing Corporation Chrysler Group LLC Daimler AG Ford India Private Limited General Motors Company Hindustan Motors Limited Hyundai Motor Company Honda Motor Co., Ltd Jaguar Cars Limited Land Rover Maruti Suzuki India Limited Mercedes-Benz USA, LLC Mitsubishi Motors Corporation Nissan Motor Co., Ltd Tata Motors Limited

Toyota Auto Body Co., Ltd.

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TOYOTA MOTOR CORPORATION

About the Company:The story of Toyota Motor Corporation began in September 1933 when Toyota Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyota. Soon thereafter, the division produced its first Type A Engine in 1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936.Although the Toyota Group is most well known today for its cars, it is still in the textile business and still makes automatic looms (fully computerized, of course), and electric sewing machines which are available worldwide. Toyota Motor Co. was established as an independent company in 1937. Although the founding family name is Toyoda, the company name was changed to: ? ? ? Signify the separation of the founders' work life from home life; Simplify the pronunciation, and Give the company an auspicious beginning.

Toyota is considered luckier that Toyoda in Japan, where eight is regarded as a lucky number, and eight is the number of strokes it takes to write Toyota in Katakana. During the Pacific War the company was dedicated to truck production for the Imperial army. Because of severe shortages in Japan, military trucks were kept as simple as possible. For example, the trucks had only one headlight on the center of the hood. Commercial passenger car production started in 1947 with the model SA.1950 a separate sales company Toyota Motor Sales Co. was established (which lasted until July1982). In April 1956 the Toyota dealer chain was established.

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Organization Structure of The Company:HEADQUARTERS: TOYOTA CITY, JAPAN ASSEMBLY PLANTS OVER THE WORLD Toyota has factories all over the world, manufacturing or assembling vehicles for local markets, including its most popular model, the Corolla. Toyota has manufacturing or assembly plants in the United States, Australia, Canada, Indonesia, Poland, South Africa, Turkey, the United Kingdom, France, Brazil, and more recently India, Argentina and Czech Republic. Toyota also builds and sells cars in China in a joint venture with Tianjin Xiali. Toyota New Zealand assembled vehicles until 1998, when it switched to importing cars from Japan and Australia. Cars from these plants are often exported to other countries. Vision:"Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way." Guiding Principles at Toyota:-

1. Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world. 2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities. 3. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities. 4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. 5. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management. 6. Pursue growth through harmony with the global community via innovative management. 7. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

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Five Main Principles of Toyoda:? ? ? ?

Always be faithful to your duties, thereby contributing to the company and to the overall good. Always be studious and creative, striving to stay ahead of the times. Always be practical and avoid frivolousness. Always strive to build a homelike atmosphere at work that is warm and friendly.

Always have respect for spiritual matters, and remember to be grateful at all times

Board of Directors:Name of Board of Directors Fujio Cho Katsuhiro Nakagawa Katsuaki Watanabe Tokuichi Uranishi Kazuo Okamoto Takeshi Uchiyamada Akio Toyoda Takeshi Suzuki Hiroshi Takada Shinichi Sasaki Shin kanada Designations Chairman Vice Chairman President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Senior Managing Director Senior Managing Director Senior Managing Director Senior Managing Director

Market Share:Toyota Motor Corp. grabbed more U.S. retail market share than Ford Motor Co. in early. November and it was less than one share point behind General Motors Corp., Toyota, Japan's largest automaker had a 15.4 percent U.S. retail market share a year earlier. Toyota plans to enter small car segment in India. World‘s second largest automaker wants to get offensive in the Indian domestic auto market. Toyota is very much interested in launching a small car here in the segment Currently dominated by Maruti Suzuki and Hyundai. Tata also has a decent presence in the market with their Indica range of diesel vehicles. Toyota is at the moment carrying out a feasibility study for launching such a vehicle in the domestic market where it has models like the Innova and Camry amongst others.

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TOYOTA BY NUMBERS
Direct North American Employment Direct North American Payroll Dealer Employment. North American Supplier Employment Direct North American Investment . Cumulative North American Production North American Vehicle Sales (2002) U.S. Parts/Materials Purchasing (FY ending 03/02) North American Toyota, Lexus Dealers 34,394 $2,241,500,000 109,107 55,000 $13,736,800,000 10,567,737 1,940,783 $14,990,000,000 1,687

Product Portfolio:Established on 6th October, 1997, Toyota motors has pulled the vigilant of Indian customers to its products. With the full devotion and round the clock services, Toyota tied up with Kirloskar Group by forming Toyota Kirloskar Motor Private Limited. Two shareholders of Toyota Motors are Toyota Motor Corporation holding share of 89% while Kirloskar group is having the share of 11% . In 1997, the company began production of the world's best selling hybrid car, the Toyota Prius. Later in 2002, it has started IMV project, "Innovative International Multi-purpose vehicle" to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles. In the beginning of year 2007, the company has developed as the most profitable automaker and largest seller of cars. Revenue of Toyota Motors in year 2006 is $11 billion along with increasing sales among other countries i.e United States.

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MODELS OF TOYOTA MOTORS CARS MODEL Toyota Lexus Toyota Etios Toyota Prado Diesel Toyota Camry 2.4 L (A/T) 2.4 L (M/T) Toyota Corolla Corolla 1.8 E Corolla 1.8 G Corolla 1.8 J Corolla Altis Toyota Innova Innova E Innova E 2.0L Petrol Innova E 2.5L Diesel Innova G Innova G1 2.0L Petrol Innova G2 2.5L Diesel Innova V Innova V 2.0L Petrol Innova V 2.5L Diesel Toyota Prado Toyota Qualis Toyota Fortuner Toyota Prius Hybrid Sedan Cars Sedan Cars SUV Premium TYPE

Premium

SUV

SUV

SUV SUV SUV Sedan Cars

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Some of the popular Toyota models:

INNOVA
CAMRY AVALON MATRIX COROLLA PRIUS

TACOMA
TUNDRA SUV 4RUNNER LAND CRUISER

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Clientele / Customer Satisfaction Relationship:Clients:? ? ? ? ? ? ? ? ? ? ? ? ? ? ? AAA ABC Adobe AIGA Diesel L‘oreal Paris NBC Universal Quantas Rip Curl Sony Starbucks Time Inc Toyota VW Warner Bros

Customer Satisfaction Relationship:-

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Approach to Customer Satisfaction:Customers' evaluations and opinions are an expression of their expectations of Toyota, so Toyota receives them sincerely and responds in good faith, in the belief that making use of them in its corporate activities will lead to customer satisfaction. Toyota always tries to grasp shifts in customer demands, constantly checking for conformity with its standards, and acting swiftly to resolve any discrepancies. The voice of the customer is quickly relayed to all related departments and divisions in development, production and sales, where they are helpful to product planning, raising product quality and improving Toyota's corporate activities.

Customer Relations Division Initiatives:The Customer Relations Division is "the division within the company in direct contact with customers needs." The staff place an emphasis on the voices of individual customers, through consulting with them and handling their complaints, striving to improve customer satisfaction. The Customer Assistance Center acts as a contact point within the company for customers and has consulted with or handled complaints from about 200,000 people this fiscal year. Toyota is in contact with its dealers throughout Japan to handle customer complaints, and makes a sincere effort to gain customer trust and satisfaction, striving to maintain and increase the number of Toyota fans. The Customer Relations Division also makes direct proposals to sales, research and development, and production divisions and holds discussion meetings with them, so that customers' voices can be useful in improving the company's products and corporate activities.

Human Resource Managementurpose: Embodiment of management that respects people to create perpetual prosperity for the company. Basic Principle: Establishment of relationship of mutual trust and respect. By: - Building a relationship, in which, employee him/herself takes up part of responsibility in corporate activities. - Contributing to self realization of employees through continuously exercising their facilities through the job.

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Operation Supply Chain Management & International Business:Cash to Cash: Toyota, Inventory Management :? Both Accounting and Supply Chain professionals rely on Cash to Cash (C2C) measures to make processes more efficient and cost-effective. ? C2C is generally the number of days it takes to convert the expenses for raw materials into payment for the finished product ? Many factors influence this, including inventory management, supplier performance, and collection of accounts receivable. In accounting, C2C is a good measurement of liquidity of the firm. ? For supply chain professionals, it measures the efficiency of the entire process, from suppliers, to manufacturing, through to order fulfillment
STRENGTHS 1 New investment by Toyota in factories in the WEAKNESS 1 The World market for cars is in a condition

US and China saw 2005 profits rise, against The worldwide motor industry trend. 2 In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. 3 The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks.

of oversupply and so car manufacturers need to make sure that it is their models that consumers want. 2 Toyota markets most of its products in the US and in Japan. 3 The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costsof training and retaining labour. So if the car market experiences a down turn, the company could see over capacity.
THREATS 1 In 2005 the company had to recall 880,00

OPPURTUNITY 1 Lexus and Toyota now have a reputation for

manufacturing environmentally friendly Vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. 2 Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D

sports utility vehicles and pick up trucks due to faulty front suspension systems. 2 Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe.
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Finance/L A/c:For the Year Net revenues: Sales of product Sales of product Total Cost and expenses: Cost of product sold Cost of financing operations Selling General Administrative Total Operating income(loss) % of net revenues Income before Income tax and Equity in earnings of affliated companies Provision for Income tax Net Income ROE Net cash provided by operating activities Net cash used in investing activities Net cash provided by(used in) financial activities R&D activities Capital expenditure for property plant and equipment Depreciation At Year End Toyota motor corporation shareholders equity Total Assets Long term debt Cash and cash equivalents Ratio of Toyota motor corporation shareholders Equity 2009 19173720 1355850 20529570 17468416 987384 2534781 20990581 -461011 -2.20% 2010 17724729 1226244 18950973 15971496 712301 2119660 18803457 147516 0.80%

-560381 -56442 -436937 -4.00% 1476905 -1230220 698841 904075 1364582 1495170

291468 92664 209456 2.10% 2558530 2850184 -277982 725345 604536 1414569

10061207 29062037 6301469 2444280 34.60%

10359723 30349287 7015409 1865746 34.10%

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Balance SheetERIOD ENDING Cash and Equivalents Marketable Securities Accounts Receivable Loans Receivable Other Receivable Receivables Raw Materials Work in Progress Finished Goods Other Inventories Inventories Prepaid Expenses Current Deferred Income Taxes Total Current Assets Land & Improvements Building & Improvements Machinery, Furniture & Equipment Construction in Progress Total Fixed Assets Gross Fixed Assets (Plant, Prop. & Equip.) Accumulated Depreciation & Depletion Net Fixed Assets (Net PP&E) Other Non-Current Assets Total Non-Current Assets Total Assets Accounts Payable Short Term Debt Accrued Liabilities Other Current Liabilities Total Current Liabilities Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Minority Interest Total Non-Current Liabilities Total Liabilities 12/2010 24,923,851 18,439,627 * 49,655,532 21,673,176 71,328,709 * * * 16,936,378 16,936,378 7,232,735 6,662,314 145,523,617 15,309,228 44,588,742 139,353,036 2,723,531 201,974,539 201,974,539 125,617,582 76,356,957 138,570,063 214,927,020 360,450,638 25,683,139 65,712,397 20,576,487 11,411,663 123,383,687 82,683,139 10,108,390 11,017,545 7,125,775 110,934,849 234,318,537 09/2010 27,672,827 19,390,196 * 47,697,905 22,762,640 70,460,545 * * * 16,512,245 16,512,245 5,152,836 6,770,744 145,959,396 15,004,345 43,446,528 136,779,602 2,856,547 198,087,024 198,087,024 122,195,140 75,891,884 130,528,202 206,420,086 352,379,482 27,426,645 61,068,625 20,620,684 10,671,905 119,787,862 83,520,158 9,299,293 10,623,294 6,771,235 110,213,981 230,001,843

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Research & development:For more than 25 years, Toyota Technical Center (TTC) has been the driving force behind Toyota's North American Engineering and Research and Development activities, overseeing the design and development of vehicles. TTC is a division of Toyota Motor Engineering & Manufacturing North America, Inc. Headquartered in Ann Arbor, Michigan, TTC is engaged in engineering design, prototype building, vehicle evaluation, evaluation and design of parts and materials, regulatory affairs, emissions certification and technical research. Throughout our North American facilities TTC is committed to utilizing teamwork to bring all facets of the TTC operation together. TTC is widely regarded as Toyota's leading technical center outside Japan.

Future Plan:India's car population may be growing but the growth is mainly concentrated in the small car sector, and not without reason. With increasing interest rates making buying cars costlier and the government slapping new duties on larger vehicles in addition to the existing favourable tax regime for smaller cars, even premium players are wading into the small-car scene. Indian passenger car sales rose by 11.79 per cent between April 2007 and March 2008 to 1.2 million units. Competition in the small car segment is set to increase in 2009, with planned launches by Maruti Suzuki (A-Star and Splash), Honda (Jazz) and as yet unnamed models from Ford, GM and Volkswagen. Japanese carmaker Toyota, all set to surpass General Motors as the world's largest, is the latest entrant when it made its intentions clear on the occasion of the laying of the foundation stone for its second factory in India. The decade-old Indian joint venture of the Japanese automaker, Toyota Kirloskar, is building its second plant at Bidadi, about 40 kilometers from India's IT hub of Bangalore, with an upfront investment of Rs14,000 crore ($329 million) to manufacture a range of passenger cars and multi-utility vehicles. Toyota is the majority partner with an 89-per cent stake with Kirloskar owning the rest. Karnataka chief minister B S Yeddyurappa unveiled the foundation stone for the new plant that will have a test track and additional space for suppliers and other vendors. The ceremony was attended by Toyota senior managing director Akira Okabe, chairman Ryoichi Sasaki, vice-chairman Vikram Kirloskar and managing director Hiroshi Nakagawa. The modular plant, to be commissioned by 2010, will have an installed capacity of 100,000 units annually and will employ about 2,400 people. Top officials confirmed that the company will soon be introducing its newly designed compact car in the Indian market.
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The plant which is being set up will see an initial investment of Rs1400 crore. But this initial investment won't include certain other costs like installing robots and other automation equipment. The arrangement of this additional amount required for the plant would be worked out later. A new test track will be included in the second plant, which is expected to be spread over 130 acres of land. Though the new compact car has been designed for the Indian market, the initial design features indicate that it can be exported to other markets in Asia. Daihatsu, Toyota's group company, will not be involved in designing the compact new car, though it may be included in future plans.

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TATA MOTORS LTD

About the Company:Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. 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 third largest bus manufacturer. The Company's over 25,000 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 5.9 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), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The Company's dealership, sales, services and spare parts network comprises over 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, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with 23

Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The Company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. 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. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost.

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Awards:? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? TATA Motors Ltd has been selected as the winner of ?Golden Peacock Award for Corporate Social Responsibility‘ for the year 2011. Customer Support CVBU has been conferred with the 'Golden Peacock National Training Award' 2011. Tata Nano wins the Best Car Advertisement of the Year at Bloomberg UTV Awards. Tata Nano's design receives world's oldest and coveted international award. Lucknow Plant wins Rajiv Gandhi National Award for 2009. Mr. Ravi Kant receives the Golden Peacock Corporate Award for Business Leadershi.

CNBC TV18 'Best CFO' Award for Mr. C. Ramakrishnan. CVBU Pune receives Excellent Energy Efficient Unit award... CVBU Lucknow bags Excellent Energy Efficient Unit-Award for the second time in a... CVBU Pune declared winner of the MPCB Vasundhara Awards 2010... Car Plant Pune won three awards at the 25th Annual Chapter Convention of Quality... Tata Motors IT team bagged an award in IT Services Management category... Tata Motors, CVBU was awarded the coveted Golden Peacock Award... Land Rover double header at the Auto Express 2010 new car awards... TDCV CEO, Dr. Kim Jong-Shik, honoured... Golden Peacock Award for Occupational Health & Safety for the year 2010... CVBU Lucknow bags 11 National Suggestion Summit awards... Sanand makes a mark in the very first year at National Suggestion Summit awards... Pantnagar sweeps National Suggestion Summit awards... Mr. R. Bhaskar, Plant Head, CVBU, Pune receives Performance Excellence Award 2009... Tata Hispano receives the `Silver Bus' Award from the Spanish Public Transport... Tata Nano bags the Gold Prize in the 2010 Edison Awards... Tata Motors has won top three honors at the annual Good Green Governance (g3) Aw... CVBU Jamshedpur wins seven INSSAN awards... Car Plant Pune bags Safety, Health & Environment Award... Tata Motors Jamshedpur wins Energy Conservation Award... Tata Motors bags four ABCI awards... Tata Motors is Commercial Vehicle Maker of the Year... Tata Motors bags two awards for excellence in IT implementation... Auto critics recognise new generation Tata Motors Cars... Land Rover Discovery 4 named best 4X4 at the 'What Car Awards 2010'... National Energy Conservation Award 2009 for Pantnagar Plant... Car Plant Pune bags 'Gold Category Award in National Productivity Contest'...

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Regional & Branch Office Addresses:LOCATIONS Corporate Office: Marketing Office: International Business: Customer Support: Regional Office - North: ADDRESSES Contact No. - 022-66658282 Commercial Vehicles Business Unit - 022-66561800 Passenger Car Business Unit - 022 - 66158400 / 8500 / 8600 Contact No. - 022-67577200 Commercial Vehicles (trucks and buses) - 022-66561800 Cars & Utility Vehicles - Toll Free Number - 1800-209-6688 Commercial Vehicles (Trucks & Buses) 011-23341254 / 011-23342151 Cars & Utility Vehicles (0124) 2805141 – 45 Commercial Vehicles (Trucks & Buses) 080-66373 (400 to 409) Cars & Utility Vehicles (044) 66500900 Commercial Vehicles (Trucks & Buses) 033-66272700 Cars & Utility Vehicles (033) 66262600 / 66262658 Commercial Vehicles (Trucks & Buses) 022-67927272 Cars & Utility Vehicles (022) 66930400/401/402/40, (079) 66009900

Regional Office - South:

Regional Office - East:

Regional Office - West:

Manufacturing Locations: Pune Dharwad Jamshedpur Pantnagar Lucknow 020 – 66131111 0836-2486633/ 2486877 0657 - 2281500/2286875 05944-663025/ 663131 0522-2818012/20/32

26

Board of Directors:-

Name of Board of Directors
Mr. Ratan Tata Mr. Ravi Kant Dr. Jamshed J. Irani Mr. Nusli Neville Wadia Mr. S. M. Palia Dr. R.A.Mashelkar Mr. Naseer Munjee Mr.V .K.Jairath Mr. Subodh Bhargava Mr. Ranendra Sen Dr. Ralf Sapeth Mr.Carl – Peter Forster Mr. P.M.Telang

Designations
Chairman Vice Chairman Not Independent, Non - Executive Director Independent, Non - Executive Director Independent, Non - Executive Director Director Board of Trustee Director Director Director Director Managing Director Executive Director (Commercial Vehicles)

Market Share:As Per 12th May 2011 Volume Previous Close Day's H/L(Rs) 52wk H/L(Rs) Market Capital (Rs Crore)

62,980 1,208.00 1,210.40-1,196.00 1,381.40-670.00 76,256.90

27

Product Portfolioassenger Vehicles:INDIA WORLDWIDE

TATA CARS

TATA JAGUAR

TATA LAND ROVER

World Wide

28

Commercial Vehicles:INDIA

TATA PRIMA

TATA OTHER VEHICLES

TATA CONSTRUCK

TATA ICV

TATA TL 4X4

TATA ACE

WORLDWIDE

TATA MOTOR TRUCKS

TATA MOTOR BUS

TATA HISPANO

TATA DAEWOO

TATA XENON 29

Clientele / Customer Satisfaction Relationship:Clientele:? ? ? ? ? Defence Public Transport. Dealers Suppliers General Customers of Cars , SUVs , MUVs.

Customer Satisfaction Relationship:By making a success of connecting to dealers and customers, Tata Motors has got into cruise control in a critical sphere of its business

Given that the customer is king (or queen), it would be logical to presume that establishing — and nurturing — a relationship with such royalty is a priority for enterprises looking to sell a product or service. Fact is, it may be a priority but organizations rarely pay more than lip service to what goes by the grandiose nomenclature of customer relationship management. For Tata Motors, though, this has always been an imperative. It made eminent sense for India‘s premier automobile company — with over 1 million customers, 22,000 employees and a geographically fragmented business that operates out of 1,600 locations in a notoriously cyclic business environment — to put many eggs in the relationship management basket. But this was an idea cooked in the cauldron of adversity.

Human Resource Management:Tata Motors, are committed to understanding customer needs and innovating on our wide range of offerings keeping these needs in mind. This approach has earned us the position of being among the top five medium and heavy commercial vehicle manufacturers in the world. Our products are seen in markets like Europe, Australia, South East Asia, Middle East and Africa. We owe our success to the highly motivated and talented staff at Tata Motors. Our recruitment division picks the crème-de-la-crème from premier universities, management and engineering institutes in India. We put them through rigorous training programmes to hone their entrepreneurial skills and impart comprehensive product knowledge.

30

Training:Tata Motors, employees are invaluable assets and their career and personal growth are of prime concern to the Company. Tata Motors provides a congenial atmosphere to work, learn and grow. The Company conducts various programmes to train their staff in the latest and the best technology and management practices. The Company through its in-house vocational training and apprenticeship programmes trains the technicians at Tata Motors. Numerous talented youngsters, honed by such rigorous programmes, have received numerous National Best Apprentice Awards - the highest accolade for excellence in skills, in India. Tata Motors expansion projects offer numerous growth opportunities. Structured training programmes, rotational assignments and cross-functional mobility allow employees to grow. Movement across functions is encouraged to help employees develop a wider perspective and gain expertise in manifold functions. Executive Selection Scheme (ESS):Tata Motors has always strived towards excellence both in its efforts towards total integration as well as in recognising its talented employees. The Company is constantly creating prestigious programmes to reward and retain its outstanding employees. The Executive Selection Scheme is one such programme, which is highly sought after by Tata Motors employees. It is a matter of pride and prestige to be a part of the ESS selection process and emerge a winner. ESS is a fast track programme for accelerated growth of high potential professionals. This facilitates their early advancement to challenging and visible assignments through a very systematic procedure. The selection involves a 3 stage process:
? ? ?

Written Test Power Interview Assessment Centre

31

Operation Supply Chain Management & International Business:Tata Motors has been aggressively acquiring foreign brands to increase its global presence. 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. Tata Motors has also acquired from Ford the rights of Rover. 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, giving it controlling rights of the company. Hispano‘s presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009 In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa.

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SWOT Analysis:STRENGTHS 1 The internationalisation strategy so far has been WEAKNESS 1 The company's passenger car products are

to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. 2 The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow.
OPPURTUNITY 1 Tata Motors Limited acquired Daewoo Motor's

based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. 2 Despite buying the Jaguar and Land Rover brands Tata has not got a foothold in the luxury car segment in its domestic, Indian market.

THREATS 1 Other competing car manufacturers have

Commercial vehicle business in 2004 for around USD $16 million. 2 Nano is the cheapest car in the World - retailing at little more than a motorbike.whilst the World is getting ready for greener alternatives to gasguzzlers, is the Nano the answer in terms of Finance:concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano.

been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. 2 Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously,as Tata globalises and buys into other brands this problem could be alleviated.

33

Capital Structure:From To Class Of Share Authorised Capital Issued Capital Paid Up shares(Nos) Paid Up Face Value Paid Up Capital (In Crore)

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

900 900 450 450 410 400 400 350 350 350

570.6 514.0 385.5 385.4 382.8 361.8 353.0 319.9 319.9 255.9

570557544 514008314 385503954 385373885 382834131 361751751 352958130 319784387 319782395 255856343

10 10 10 10 10 10 10 10 10 10

570.6 514.0 385.5 385.4 382.8 361.8 353.0 319.8 319.8 255.9

34

P/L A/c:Mar '09 Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 28,538.20 2,877.53 25,660.67 921.29 -238.04 26,343.92 18,801.37 304.94 1,551.39 866.65 1,652.31 1,438.89 -916.02 23,699.53 1,723.10 2,644.39 704.92 1,939.47 874.54 51.17 1,013.76 15.29 1,029.05 12.50 1,001.26 4,898.16 0.00 311.61 34.09 5,140.08 19.48 60.00 240.64 Mar '10 38,364.10 2,800.10 35,564.00 933.00 606.63 37,103.63 25,366.12 362.62 1,836.13 76.70 81.72 5,009.60 -740.54 31,992.35 4,178.28 5,111.28 1,103.84 4,007.44 1,033.87 144.03 2,829.54 0.00 2,829.54 589.46 2,240.08 6,626.23 0.00 859.05 132.89 5,705.58 39.26 150.00 262.30

35

Balance Sheet:Mar '09 Source Of Fund Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 514.05 514.05 0.00 0.00 11,855.15 25.07 12,394.27 5,251.65 7,913.91 13,165.56 25,559.83 Mar '09 13,905.17 6,259.90 7,645.27 6,954.04 12,968.13 2,229.81 1,555.20 638.17 4,423.18 5,909.75 503.65 10,836.58 0.00 10,968.95 1,877.26 12,846.21 -2,009.63 2.02 25,559.83 5,433.07 240.64 Mar '10 570.60 570.60 0.00 0.00 14,394.87 0.00 14,965.47 7,742.60 8,883.31 16,625.91 31,591.38 Mar '10 18,416.81 7,212.92 11,203.89 5,232.15 22,336.90 2,935.59 2,391.92 1,753.26 7,080.77 4,618.90 0.00 11,699.67 0.00 16,117.80 2,763.43 18,881.23 -7,181.56 0.00 31,591.38 3,447.50 262.30

Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

36

Research & development:TATA Motors is powered by a 22,000-strong work force that is guided by the vision to be "best in the manner in which we operate, best in products we deliver, and best in our value system and ethics." This vision is evident in leading edge R&D and the harnessing of cutting edge technology. With 1400 engineers and scientists, the TATA Motors Engineering Research Centre has enabled pioneering technologies and products. Here, half a century of experience meets the latest technologies, as a team of highly qualified and motivated professionals design the wheels of the future. Every vehicle is developed in close conjunction with customer needs, virtually simulated, prototyped and then operated in real time on the most arduous terrain. Today, the R&D network of TATA Motors is truly international. This covers R&D centres in India located at Pune, Jamshedpur and Lucknow, besides centres in South Korea, Spain and UK.

Future Plan:TATA Motors is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the second largest medium and heavy bus manufacturer. In 2005-2006, it posted revenues of USD 5.5 billion. Recently, it acquired Daewoo Commercial Vehicles Company, Korea (trucks). This was followed by a 21% stake acquired in Hispano Carrocera, Spain (bus and coach manufacturer) and a joint venture with Marcopolo, Brazil (bus and coach body-building). These acquisitions have made TATA Motors a truly international automobile manufacturing company.
Today over 4 million TATA Motors vehicles ply on Indian and foreign roads.

37

MAHINDRA & MAHINDRA

About the Company:Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, we‘ve diversified into many new businesses in order to better meet the needs of our customers. We follow a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies. This principle has led our growth into a US $11.1 billion multinational group with more than 117,000 employees in over 100 countries across the globe. Today, our operations span 17 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Our federated structure enables each business to chart its own future and simultaneously leverage synergies across the entire Group‘s competencies. In this way, the diversity of our expertise allows us to bring our customers the best in many fields. Purpose & Values:Our motivation to give our best every day comes from our core purpose: to challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world—to enable them to Rise. Our products and services support our customers‘ ambitions to improve their living standards; our responsible business practices positively engage the communities we join through employment, education, and outreach; and our commitment to sustainable business is bringing green technology and awareness into the mainstream through our products, services, and lightfootprint manufacturing processes.

38

Awards:? ? ? ? Mahindra's Auto&Two wheeler sectors receive top awards from automotive media. Dr. Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra Ltd. accepts the CNBC TV18 Overdrive Best UV of the year award for the XYLO Mr. Anoop Mathur, President, 2 Wheeler Sector, Mahindra & Mahindra Ltd. accepts the NDTV Profit Car & Bike Scooter of the Year Award for the Duro. Mahindra receives the Gold award for 'Brand Communicator of the Year' at the 9th Asia Pacific PR Awa.

Regional & Head Quarter addresses:LOCATION Registered Corporate Office ADDRESSES Mahindra India & World Headquarters Mahindra Towers G M Bhosale Marg Mumbai 400018 G M Bhosale Marg India +91 1800 425 1624 Roma Balwani Group Head, Corporate Communications Media Cube, Mahindra Towers, G. M. Bhosale Marg, Worli, Mumbai 400 018 INDIA +91 22 24901441

For NEWS

39

Board of Directors:Name of Board of Directors Keshub Mahindra Anand Mahindra Bharat Doshi Arun Dasgupta Dr. Ashok Ganguly Nadir Godrej Ravindra Kulkarni M.M. Murugappan Arun K. Nanda Deepak Parekh Anupam Puri Narayanan Vaghul Designations Chairman Vice Chairman & Managing Director Executive Director Director Director Director Director Director Director Director Director Director

Market Share:As Per 12th May 2011 Volume Previous Close Day's H/L (Rs) 52wk H/L(Rs) Market Capital (Rs Cr)

120,920 697.65 705.50-686.00 826.40-505.05 42,285.43

40

Product Portfolio:-

AEROSPACE

AUTOMOTIVE

COMPONENT

CONSTRUCTION EQUIPMENT

DEFENCE

ENERGY

FARM EQUIPMENT

REAL ESTATE

RETAIL

41

Clientele / Customer Satisfaction Relationship:Clients:? ? ? ? ? ? Aeroplane Companies. Defence. IT Clients. Real Estate Clients. Farmers. Construction Companies.

Customer Satisfaction Relationship:Mahindra & Mahindra (M&M), the market leader in multi-utility vehicles in India. The company started manufacturing commercial vehicles in 1945. M&M is the leader by far in commercial vehicle and the second largest in the passenger vehicle market. The company is the world‘s sixth largest medium and heavy commercial vehicle manufacturing. Mahindra is best known for utility vehicles and tractors in India, Its automotive division, the company's oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger "auto rickshaws," but utilitarian delivery and flatbed incarnations). M&M‘s farm equipment sector, formed in 1963 during India‘s green revolution, manufactures tractors and industrial engines. M&M also produces military vehicles. The company has facilities located throughout India. The survey involved gathering wide information about the company, its products, customer satisfaction and impact of various competitive firms on the company. From the information collected, various aspects were identified where the company needs to focus more to improve the efficiency of marketing team of Mahindra Automotives. The research was conducted through collection of primary and secondary data. Secondary data was collected through visiting various web sites, automobile magazines and other reliable sources. Primary data was collected through a well-framed questionnaire, of which later a detailed analysis was done using various statistical I.T. tools like MS Word and MS Excel. On the basis, the secondary data analysis and the extensive analysis of the primary data, interpretations were drawn for the questions and conclusion is drawn. Certain suggestions are also drawn from the analysis to help. Mahindra Automotives to increase its market share in commercial passenger segment and MPVs. The main research that followed is to know ?Customer satisfaction towards Mahindra BOLA RO SLX?, a new SUV recently launched by Mahindra. Due to the limited resources and time constraints, the study was conducted within the area Gurgaon (NCR) city.

42

Objectives: The study has been under taken to analyze the customer satisfaction towards all variant of Mahindra BOLERO in Gurgaon with a special reference to the M&M motors, the other objectives are: ? ? ? ? ? To gather information about customer satisfaction toward Bolero in the geographic region of Gurgaon. To know the customer perception about features, low maintenance cost and looks of Bolero To know the customer satisfaction about the safety and comfort provided by Bolero. To provide suggestions, in improving the customer satisfaction and the company sales and profitability To know the customer satisfaction towards the after sales service offers by M&M

Human Resource Management:At Mahindra, we support a culture of collaboration and meritocracy. You‘ll have the opportunity to share your thoughts and ideas about what we do, and you‘ll work closely with people who are as passionate about their jobs as you are. Your job here isn‘t just to do your work—it‘s to take initiative, be creative, and welcome new responsibilities. We believe this is the best way to grow our business and develop your career. We believe that people give their best at work when they are fulfilled in all aspects of their lives. We offer flexible hours and generous vacation time so you can keep a balance between your career and your personal life. You‘ll get to know Senior Management on an informal basis through townhalls and fireside chats. With our average age under 30, we are young, creative, and dynamic. You‘ll find that life at Mahindra is rich and engaging not only in terms of your work experience, but also in terms of the people you meet and the support you receive in living a full life. Employee Social Options:Our Employee Social Options Program (Esops) connects Mahindra employees with people who need help. Each year, we organize ongoing initiatives or one-time programs to reach out to groups like the elderly, the disabled, disadvantaged students, or rural population. In 2009, 10,341 Esops volunteers impacted 234,734 lives. And each year, more and more volunteers join us in reaching out—we have grown 110 percent since our creation in 2005. We are proud to target donating 1 percent of our annual profit after tax to social activities each year, but we also believe in the importance of spending our own time and effort. Esops coordinates and focuses employees‘ activities in order to create the greatest impact on the problems we tackle. Employees can select from a wide range of activities across the broad themes of Health, Education, Environment, Arts and Sports, and special local initiatives.

43

Operation Supply Chain Management & International Business:Our Supply Chain Management capabilities span industries and services to encompass customized, scalable solutions for each of our partners, from major project cargo planning and movement to managing the supply and distribution of fast moving consumer goods. By adapting our supply chain solutions to each sector‘s particular needs, we contribute useful services that are easily integrated into our clients‘ practices. For example, we provide comprehensive solutions to businesses within the automotive sector including inbound, inter-unit, warehousing, linefeed, yard management, outbound, and aftermarket distribution. The needs of the telecom industry, however, are very different. The telecom sector relies heavily on the timely installation of infrastructure, maintenance, and last-mile delivery capability. We partner leading telecom infrastructure companies and provide logistics and geographic reach to over 15,000 telecom sites.From automotive to consumer goods, from telecom to engineering products, our highly specialized logistics help our clients‘ businesses run smoothly and efficiently. SWOT Analysis:STRENGTH 1 Over the years the company has emerged as one of the top players in the world in terms of number of tractors sold. This gives a clear indication that the company‘s market share is one of its biggest strengths. 2 The company‘s ability to introduce new products in the market and to generate sales. 3 Government incentives for manufacturing plants. WEAKNESS 1 Infrastructure bottleneck. 2 High interest costs and high overheads make the production uncompetitive.

OPPURTUNITY 1 Rising rural demand. 2 Increase in the income level. 3 Commercial vehicles : ban on overloading.

THREATS 1Rising input costs. 2 Cut throat competition.

44

Finance:Capital Structure:From To Class Of Share Authorised Issued Capital Capital Paid Up Paid Up shares(Nos) Face Value 578434478 278821265 245741813 238032707 233399584 116008599 116008599 116008599 116008599 110484380 5 10 10 10 10 10 10 10 10 10 Paid Up Capital (In Crore) 289.22 278.82 245.74 238.03 233.40 116.01 116.01 116.01 116.01 110.48

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

600.00 600.00 375.00 275.00 275.00 175.00 175.00 175.00 175.00 175.00

289.22 278.82 245.74 238.03 233.40 116.01 116.01 116.01 116.01 110.48

45

P/L A/c:Mar - 10(In Crore) Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 12,437.87 217.89 1,199.85 802.02 901.45 -59.55 15,499.53 3,016.80 317.99 3,334.79 156.85 370.78 0 2,807.16 759 2,048.16 -32.9 72.49 2,087.75 5,453.07 549.52 0 74.23 4,829.32 9,365.00 174.05 1,024.52 575.34 700.45 -42.83 11,796.53 1,284.55 305.98 1,590.53 134.12 291.51 0 1,164.90 199.69 965.21 -173.33 48.97 840.85 3,807.00 278.83 0 33.23 3,494.94 18,516.33 13,081.08 Mar-09 (In Crore)

46

Balance Sheet:Mar - 10(In Crore) Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Liablities Uses of funds Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Assets 6,224.56 5,619.04 605.52 4.12 10,698.71 5,081.20 4,797.76 283.44 12.55 9,284.64 4,866.18 11.67 2,537.77 2,316.74 1,374.31 6,398.02 4,653.66 12.09 2,326.29 2,315.28 886.96 5,786.41 602.45 2,277.70 10,698.71 981 3,071.76 9,284.64 282.95 8.01 0 7,527.60 272.62 0 0 4,959.26 Mar-09 (In Crore)

47

Research & development:Mahindra Engineering Services (MES), a part of the Mahindra & Mahindra group, would set up Mahindra Research Valley (MRV) in Chennai with an initial investment of Rs 500 crore. The project is set up to focus on automotive and aerospace engineering & design services. Mahindra Systems and Automotive Technologies (MSAT). MES is the subsidiary of MSAT. MRV will do the prototyping and designing of auto components for Boeing, Airbus, Volkswagen, BMW, DaimlerChrysler, and Ford. ?MRV will be focusing on computer aided engineering and design. With our rich experience in making automobiles and serving customers such as International Truck and Renault, we are confident of making a mark in our chosen field,?

Future Plan:After the acquisition of Korean manufacturer Ssangyong, Mahindra and Mahindra have pumped in Rs.2,000 crore for the revival of the company. It is a very big investment however as signs go, Mahindra and Mahindra seem to have got themselves a bargain. The first vehicle to be born out of this wedlock would be a SUV and research for it is already underway with the approval from the Korean government. Another company which Mahindra and Mahindra have a controlling stake is Reva. This company is the only one in India making strictly electric cars. The coalition recently launched the Reva electric car in Pune. The company currently manufactures about 35,000 cars in a year. This coalition is now looking out for international playgrounds namely China. The reason for this is that the Chinese government have recently announced attractive tax rebates for companies selling electric cars. To make it more practical, the Chinese government are also making efforts to put in electric infrastructure in all the major urban areas. The electric car numbers are supposedly pegged to grow upto 5 million by 2015. The model that the company plans to launch in China would be the Reva NXG which has 4 seats, 100 kmph top speed and also range of 170 kms. There is also a 15 minutes easy charging facility which would be fitted into the car and also a new technology called as REV-ive.

48

SWARAJ MAZDA

About the Company:Established in 1983 , Swaraj Mazda Limited is promoted by Punjab Tractors Limited with technical promoted 1984 in technical and financial collaboration with Mazda Motor Corporation and Sumitomo Corporation, Japan for manufacture of Light Commercial Vehicles (LCVs). Presently manufacturing vehicles for goods and passenger applications. Over the years it has built up a wide product portfolio covering regular as well as niche segment needs. Swaraj Mazda Vehicle population today stands over 1,45,000.

Regional & Head Office Addresses:LOCATION Registered Office : ADDRESSES Village Asron, Distt. Nawanshahar-144 533 (Punjab) S.C.O. 204-205, Sector 34-A Chandigarh- 160022 Phone No: 0091-172-2647700 to 10 Fax : 0091-172-2615111 Village Asron, Distt. Nawanshahar-144 533 , Punjab

Corporate Office :

Works:

49

Board of Directors: Name of Board of Directors S K Tuteja Yash paul Mahajan Y Watanabe R P Sehgal E Seto Harkirat Singh T Hashimoto H Yamaguchi M Tabuchi P K Nandy A K Thakur Pankaj Bajaj Steven Enderby Gopal Bansal Designations Chairman Managing Director Whole-time Director Whole-time Director Director Director Director Director Director Director Director Director Director Company Secretary

Market Share:As Per 13th May 2011 Volume (No of Shares) Previous Close Day's H/L (Rs) 52wk H/L(Rs) Market Capital (Rs Cr)

1,640 346.25 365.05-344.15 440.00-278.00 625

50

Product Portfolio:-

SWARAJ AMBULANCE

SWARAJ BUS

SWARAJ TRUCK

SWARAJ SARTAJ TRUCK

SWARAJ SUPREME TRUCK

SWARAJ SUPER ALFD TRUCK

Clientele / Customer Satisfaction Relationship:Clientele:? ? ? ? Hospital Industry. Corporate Sector. Transport Sector Logistics Industry.

? Human Resource Management:? Swaraj Mazda Limited is a leading player in the LCV segment of Indian Automobile Industry. SML houses state of the art production techniques and has a workforce of more than 700 employees. At Swaraj Mazda Limited employees are invaluable assets and their personal & professional growth are prime concern to the company. A competency based culture & systems in the organization enable people to grow fast & deliver their best to make organization an ideal institution. The Company provides congenial atmosphere to work, learn and grow. The company conducts various programmes to train its staff in latest technology and best management practices. So if you are dynamic, innovative, passionate about light commercial vehicles and have a vision for the future.

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SWOT Analysis:? STRENGTHS ? 1 excellent distribution network. ? ? 2 Due to strong consumer preference and the ? potential for expansion, the industry in ? to record growth. bound ? 3 The company mainly has medium horse power ? tractor in its product portfolio, which ? a good growth potential thereby leading to holds an?increase in the market share. Strong Research and development set up. ? ? OPPURTUNITY ? ? 1 The Company will have the advantage to ? synergize with M &M, Farm Equipment Sector in the?areas of sourcing, manufacturing, product development and distribution. 2 Increased agri-focus of the Indian Government. 3 Good brand name, product quality and cost advantage to increase exports in low value markets of Sri Lanka, Bangladesh and African countries.
WEAKNESS 1 Being agro-based product, company‘s

fortune depends on the vagaries of the monsoon. 2 The company is addressing this problem by going in for capacity expansion and increasing dealer network. 3 The company has not leveraged its brand and product varies in the exports market.

THREATS 1 The entry of international and new domestic

players would intensify competition significantly. This could put pressure on the sale growth and the merging of the company. 2 Number of technically superior new models likely to be launched in the market in the next two years. 3 The evitable increase in petroleum prices including diesel & other inputs, will naturally bring down the spirit of a prospective tractor purchasers.

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Finance:Capital Structure:From To Class Of Share Authorised Capital Issued Capital Paid Up shares(Nos) Paid Up Face Value Paid Up Capital (In Crore)

2009 2008 2007 2006

2010 2009 2008 2007

EqShare EqShare EqShare EqShare

400000000 200000000 200000000 200000000

144716460 104867000 104867000 104867000

14471646 10486700 10486700 10486700

5 10 10 10

144716460 104867000 104867000 104867000

P/L A/c:Mar - 10(In Crore) Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Equity dividend Preference dividend Retained earnings 720.46 571.69 4.88 42.55 29.26 15.80 0 664.18 56.28 1.11 57.38 19.13 8.64 0 29.61 8.86 20.75 -0.06 0.77 21.46 5.79 0 31.97 Mar-09 (In Crore) 544.71 448.38 3.51 35.46 15.75 14.59 --0.01 517.69 27.02 1.67 28.70 19.02 5.84 0 3.84 -0.65 4.49 -0.86 1.16 4.79 1.57 0 17.53
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Balance Sheet:Mar - 10(In Crore) Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Liablities Uses of funds Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Assets 372.41 223.13 149.28 0 274.36 349.12 160.16 188.96 0 316.81 162.96 0 43.86 119.10 5.98 0 134.99 0 35.54 99.46 28.40 0 4.63 80.00 274.36 151.29 69.00 316.81 14.48 0 0 175.25 10.49 0 0 86.03 Mar-09 (In Crore)

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Research & Development:Swaraj Mazda represents two powerful brands, Swaraj, which symbolizes best Indian technology and engineering, and Mazda, symbolizing R&D and innovation edge on global scale due to which Swaraj Majda today manufactures vehicles for goods and passenger applications. Over the years the company has built up a wide product portfolio that has covered regular as well as niche segment needs. Swaraj Mazda Vehicle population today stands more than 70,000.

Future Plan:To enter into the manufacture and sales of Light Commercial Vehicle

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