814 denmark automobile industry

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Global Country Study ReportOn

“Automobile Industry of Denmark and India”Business Opportunities for Gujarat / India

Submitted toInstitute Code: 814

Institute Name: Sitarambhai Naranji Patel Institute ofTechnology & Research Centre,Umrakh

Under the Guidance ofMs. Khushboo kayasth

(Asst. Professor)

In partial Fulfillment of the Requirement of the award of the

degree of Master of Business Administration (MBA)

offered by Gujarat Technological University

Ahmedabad

Prepared by:Students of

MBA (Semester - IV)Group No. 7

Month & Year:May 2014

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STUDENTS DECLARATION

We, following students, hereby declare that the Global/ Country Study Report

titled “AUTOMOBILE INDUSTRY OF DENMARK AND INDIA” is a result of our own

work and our indebtedness to other work publications, references, if any, have

been duly acknowledged. If we are found guilty of copying any other report or

published information and showing as our original work, or extending plagiarism

limit, we understand that we shall be liable and punishable by GTU, which may

include ‘Fail’ in examination, ‘Repeat study & re-submission of the report’ or any

other punishment that GTU may decide.

Enrollment No. Name Signature

128140592021 Panchal Hemant

128140592030 Patel Hiral

128140592042 Patel Urvesh

128140592045 Pathan Afroza

128140592048 Rao Jeenal

Place: Date :

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Acknowledgement

To acknowledge is very great way to show your appreciation towards the persons

who have contributed in your success in one or other way.

At the very beginning of preparing this report we believe it is our moral duty to

express our sincere thanks to our GCSR mentor MS. KHUSHBOO KAYASTH for her

continuous guidance and supervision and support during the report preparation

period.

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INSTITUTE CERTIFICATE

“Certified that this Global Country Study and Report Titled”

‘AUTOMOBILE INDUSTRY OF DENMARK AND INDIA’ Business Opportunities for

Gujarat / India is the bonafide work of attached student list with enrollment

numbers, who have carried out their research under my/our supervision. I/We

also certify further, that to the best of my knowledge the work reported herein

does not form part of any other project report or dissertation on the basis of

which a degree or award was conferred on an earlier occasion on this or any

other candidate. I/we have also checked the plagiarism extent of this report

which is ……… % and the separate plagiarism report in the form of html /pdf file is

enclosed with this.

Signature of the Faculty Guide/s

Ms.Khushboo Kayasth

(Asst. Professor)

Signature of Principal/Director

Dr.Jayesh Shah

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The automotive industry in India is one of the larger markets in the world.

The majority of India's car manufacturing industry is based around three clusters

in the south, west and north. The southern cluster consisting of Chennai is the

biggest with 35% of the revenue share.

The western hub near Mumbai and Pune contributes to 33% of the market and

the northern cluster around the National Capital Region contributes 32%.

Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi,

Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citroën is

about to begin their operations by 2014.

Chennai accounts for 60% of the country's automotive exports.

Gurgaon and Manesar in Haryana form the northern cluster where the country's

largest car manufacturer, Maruti Suzuki, is based.

The first car run on India's roads in 1897. Until the 1930s, cars were imported

directly, but in very small numbers.

An developing automotive industry emerged in India in the 1940s. Hindustan was

launched in 1942, longtime competitor Premier in 1944. They

built GM and Fiat products respectively. Mahindra & Mahindra was established

by two brothers in 1945, and began assembly of Jeep CJ-3A utility vehicles.

Maruti Suzuki was the first, and the most successful of these new entries, and in

part the result of government policies to promote the automotive industry

beginning in the 1980s.

EXECUTIVE SUMMARY

PART-1

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By 2000, there were 12 large automotive companies in the Indian market, most

of them offshoots of global companies.

In tune with international standards to reduce vehicular pollution, the central

government unveiled the standards titled 'India 2000' in 2000 with later upgraded

guidelines as 'Bharat Stage'.

Market segment

1. Passenger Vehicles: Middleclass dreams fuel sales growth

2. Commercial Vehicles: Rapid economic growth boosts demand

3. Two-wheelers: Rural markets offer further growth opportunity

4. Automobile Components: Attractive source for global auto firms

5. Outlook: Export potential adds to domestic demand flourish

The Danish car market was one of the few in Western Europe that grew during

2012, albeit marginally, and it is expected to continue expanding moderately

during the forecast period as a whole.

Based in four locations: Hyderabad (India), Turin (Italy), Shanghai (China) and,

just launched in 2010, Detroit (United States), the Centers are connected virtually

so we can serve clients with the resources of our global network regardless of

their location.

Denmark has more wind power per capita than any other country in the world. Its

wind power capacity is 3,166 MW, supplying around 16% to 19% of the country's

electricity.

One issue with using wind energy in the power grid is that fluctuations in wind

strength lead to large, impulsive variations in power generation, while the

difficulty of storing electricity creates an inelastic moment-to-moment demand.

Currently, Denmark handles the variability of its wind power through connections

to the Swedish and Norwegian power grids, which are particularly elastic

because of the large number of hydro plants in both countries that can be turned

on an off easily.

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Indian automobile industries are providing service at a lower the cost with using

cheap labor and the Denmark provides the high product with a lowest cost.

Indian automobile industries are mainly focused on the customer’s requirements

while the Denmark automobile focused on the environment.

Indian people are mainly used or prefer the fuel cars while the Denmark people

use the electric cars high.

There is lack of the technology for the Indian automobile and the high technology

advancement for the Denmark industry.

The Major global players like Audi, BMW, and Hyundai etc have setup

their manufacturing units in India while the car manufacturers Volkswagen, BMW,

Toyota, General Motors, Ford, Mitsubishi and Fiat, made an agreement on April

19th, 2009 with the energy companies Eon, Vattenfall, EDF, Npower, Endesa

and Enel to use a 400V vehicles standardized plug to counter this barrier.

In Indian market with the development or evolution of alternate fuels, hybrid cars

have made entry into the market while in the Denmark market Natural climate

changes have attend governments around the world to focus on alternatives to

gasoline transportation.

In India Government has granted concessions, such as reduced interest rates for

export financing while in Denmark Government provide services included tax

reductions on personal income, release of pension savings and a pool of money

for house repairs, all of which should stimulate consumption positively.

Indian government auto policy aimed at promoting an integrated, phased and

conductive growth of the Indian automobile industry while Denmark government

promoting the automobile industry through provide them subsidies and tax

breaks for start up business and manufacturing of products.

Bilateral trade between India and Denmark has more than doubled from

US$530.9 million in 2003 to reach a level of US$1221.1 million in 2012. However

as compared to 2011, our exports to Denmark decreased by 23% from US$ 992

million in 2011 to US$ 767 million in 2012, while imports from Denmark also

decreased by 24% from US$597 million in 2011 to US$453.9 million in 2012.

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Major investment of the Indian automobile are the Hero Moto Corp plans to

establish 20 manufacturing and assembly facilities to expand its presence across

50 countries by 2020.

Nissan Motor India, the Indian unit of Japanese auto maker Nissan Motor Co Ltd,

has entered into an agreement with Ennore Port Ltd (EPL), to export at least

60,000 cars a year through the port for the next 10 years

TVS Motor Co plans to launch two new motorcycle models in the Kenyan market.

These motorcycles will be specific to the Kenyan markets in terms of usability,

reliability and durability. Moreover, the firm also plans to set up a two-wheeler

assembly line in Uganda and will also launch two motorcycle models in the

African nation

HMIL has invested US$ 2 billion in two state-of-the-art passenger car

manufacturing facilities in India. More so, India contributes 25 per cent of the

firm’s global sales

Mahindra & Mahindra (M&M) plans capital expenditure and investments worth Rs

10,000 crore (US$ 1.63 billion) over the next two years

Maruti Suzuki India Ltd (MSIL) is setting up an operational integrated research &

development (R&D) centre in Rohtak, Haryana. The test tracks at the new facility

would be longer and considerably enhanced in technical capabilities than the

ones at the Suzuki Motor Corp (SMC) facility in Japan

Tech Mahindra has signed an agreement with Volvo Car Corporation. The IT

company will provide Volvo with a service to maintain and develop a range of

applications that can increase efficiency and reduce costs

Isuzu Motors India plans to start contract manufacturing of its sports utility

vehicles (SUV) and pick-up trucks at Hindustan Motors' (HM) Chennai plant from

December 2013

Daimler India Commercial Vehicles (DICV) has expanded its network across the

country. The company plans to establish dealership facilities in over 100

identified locations across India by 2014.

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At present major Indian, European, Korean, Japanese automobile companies are

holding significant market shares. In commercial vehicle, Tata Motors dominates

over 60% of the Indian commercial vehicle market. Tata Motors is the largest

medium and heavy commercial vehicle manufacturer.

The Danish population has a “green” consciousness and as a result the

politicians have implemented strict rules on environment protection and

ambitious goals for reducing greenhouse gasses. But Danes are also price

conscious.

Denmark government promoting the automobile industry through provide them

subsidies and tax breaks for start up business and manufacturing of products.

Denmark is frequently ranked as the happiest country in the world in cross-

national studies of happiness. Denmark ranks as having the world's highest

mobility, a high level of equality, has one of the world's highest per capita

incomes, and has one of the world’s highest personal income tax rates.

Denmark is known for great use of bicycles, broad bike infrastructure, efficient

but expensive public transportation and expensive cars. The first car is seldom

bought with the driver’s first license, due to high opening- and high running costs.

The populations in rural districts and in small towns have become increasingly

dependent upon jobs and services in the large urban areas. At the same time the

population has been spreading out geographically.

The Danish Government will encourage that in future greater emphasis is placed

on decentralized efforts towards counteracting continued strong growth of the

transport work, while at the same time due consideration is taken of the need for

mobility and the Danish Government’s labour market policy.

The Danish Government i.e. intends to promote international research and

development on environmentally friendly vehicles, and make contributions to

ensure that sufficient knowledge and general overview of the area is maintained

in Denmark.

The Danish Government will consider whether in connection with the periodical

vehicle inspection there is a need for special systems of inspection of the

exhaust emissions and energy consumption of cars currently in use.

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The Danish Government pays constant attention to the development in this area

around the world, and Denmark will endeavor to ensure the necessary research

and development in the area is carried out at the international level.

The Indian automobile industry has a well established name globally being the

2nd largest two wheeler market in the world, 4th largest commercial vehicle market

in the world, and 11th largest passenger car market in the world and expected to

become the 3rd largest automobile market in the world only behind USA and

China.

The growth of the Indian middleclass along with the growth of the economy over

the last few years has resulted in a host of global auto giants setting their foot

inside the Indian Territory.

Moreover India also provides trained manpower at competitive costs making the

country a manufacturing hub for many foreign automobile companies. India

proves to be a potential market as compared to most of the other countries which

are witnessing stagnation as far as automobile industry growth is concerned.

India's Services exports to Denmark were valued at US$549 million in CY 2012,

a marginal increase of 2% as compared to US$537 recorded in CY 2011. India's

Services imports from Denmark were valued at US$1,038 million in 2012,

recording a marginal increase of 2.5% over the CY 2011 figure of US$1,012

million.

Major Danish Exports to India are medicinal/pharmaceutical goods, power

generating machinery, industrial machinery, metal waste and ore, organic

chemicals, etc.

Major Indian Exports to Denmark are apparels/ready-made garments,

textiles/fabrics/yarns/ carpets, road vehicles and components, metal goods, iron

and steel, footwear, travel goods including leather goods, industrial machinery

and accessories, chemical material and products, etc.

The existence of Indian companies in Denmark is rather small. Among IT

companies, Tata Consultancy Services (TCS) and L&T InfoTech have their

offices in Denmark since 1990 and 2000 respectively.

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Zenvo or Zenvo Automotive is a Danish sports car company located

in Præstø on the Danish island of Zealand.

It is managed by Jesper Jensen, who is also the founder of the Jensen car

maker, and founded and financed by Troels Vollertsen. The name 'Zenvo' is

derived from a combination of their names.

Zenvo Automotive was founded in 2004. The first prototype of what became

the Zenvo ST1 was completed in December 2008 and production began in

2009.

Only 15 cars were built: they were sold to approve customers. The car was sold

in the United States through the California based company Red Sea Distribution;

The cost of the U.S. based model was estimated at 1.8 million USD, which

included a free watch valued at $50,000.

Zenvo responded to Top Gear with a statement published on the Danish website

Pro Street.

Zenvo offers keyless entry, satellite navigation, power telescoping steering

wheel, and leather racing seats are electrically adjustable.

Tata entered the commercial vehicle sector in 1945 after forming a joint venture

with Daimler-Benz of Germany. After years of dominating the commercial vehicle

market in India, Tata Motors entered the passenger vehicle market in 1991 by

launching the Tata Sierra, a multi utility vehicle.

Tata subsequently launched the Tata Estate (1992; a station wagon design

based on the earlier 'TataMobile' (1989), a light commercial vehicle), the Tata

Sumo (1994; LCV) and the Tata Safari (1998; India's first sports utility vehicle).

Tata Motors also successfully exported large quantities of the car to South Africa.

The success of Indica played a key role in the growth of Tata Motors.

Tata Motors continued its market area expansion through the introduction of new

products such as buses (Starbus & Globus, jointly developed with subsidiary

PART-2

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Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata

Daewoo).

Tata Motors has vehicle assembly operations in India, the United Kingdom,

South Korea, Thailand, Spain and South Africa. It plans to establish plants

in Turkey, Indonesia and Eastern Europe.

Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and

Tata Hispano.

Tata Motors is among the top four passenger vehicle brands in India with

products in the compact, midsize car and utility vehicle segments. The

company’s manufacturing base in India is spread across Jamshedpur

(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar

(Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat).

Tata also has 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 countries it has only managed to create a large consumer base in

the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka

and Nepal.

Tata is also present in Italy, Spain, Poland, Romania, Turkey, Chile, and South

Africa.

The principal reasons behind the acquisition were to reduce Tata's dependence

on the Indian commercial vehicle market (which was responsible for around 94%

of its sales in the MHCV segment and around 84% in the light commercial

vehicle segment) and expand its product portfolio by leveraging on Daewoo's

strengths in the heavy-tonnage sector

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COMPARISON OF SWOT FOR TATA AND ZENVO AUTOMOBILE

SWOT ZENVO AUTOMOBILE TATA AUTOMOBILE

STRENGH

Oldest car manufacturer

Offers a wide range of cars

Provides exclusive product

features

Has over 160,000

employees

Has excellent visibility &

marketing

Having a experienced

quality

User oriented

Having a high level

technology

Most established company

in automobile sector

Good market penetration

Expert professionals

Has More than 60,000

employees

Highly diversified product

Increase in the export

levels

Has Low cost and cheap

labor

Increasing demand for

European quality

Expert skills in producing

cars

WEAKNESS

Affected by the global

recession

Hasn’t completely tapped

emerging economies

Has long development

time

has a somewhat out of

date image

Peoples are more prefer

electrical cars OR bicycle.

Low quality

Limited international

presence

faces so-called quality and

durability issues

Low labour productivity

High Production cost

Low investment in R&D

area

OPPORTUNITY Expanding automobile

sector

Expanding automobile

market

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Improving business

scenario

Capitalizing on the models

exclusively designed for

different markets

Sustainability and

environmental vehicles

Technology advancement

Benefits provide by

governments

Increasing per capita

income

Leveraging customer

engagement experience to

acquire new customers

Leveraging mergers and

acquisitions to acquire

newer technology

Growing population in the

country

Rising living standards

Better car technology is

demanded

Rising rural demand

The car is a status symbol

THREATS

Competition from major

international players

Increasing usage of public

transport

increased fuel costs

Production problems in

local plants due to labor

and similar issues

Too much government

interference

Increasing fuel costs

High level Competition

Competitors provide same

product with low cost

Competitors having expert

engineers

Less skilled labor

Lack of technologies

Increase in the import tariff

and technology cost

Increased overcrowding in

the urban areas

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Automakers typically specialize in engine and transmission systems, while

outsourcing other components. However, the more electric-dependent a vehicle

is, the more value the battery holds.

These systems constrain the overall performance of the car, so automakers may

move into this space to increase efficiency and capture this value Opportunities

for Battery Makers.

The global market for electric vehicle batteries in 2009 was $1.3 billion. McKinsey

& Company projects that if annual sales of PEVs reach 6-8 million by 2020, the

value of the battery market will be $60 billion.

The price of batteries will also fall as technology becomes more standardized.

Once this happens, battery makers may want to expand into other systems of the

electric vehicle to gain more profit opportunities. For example, McKinsey &

Company foresees that battery companies may also be able to manufacture

components for power and thermal management systems.

The opportunities for suppliers depend upon which companies they are

supplying. Incumbent automakers negotiate down their costs along supply chains

in order to provide the best end-value for the customer. Thus, suppliers who work

with startup OEMs and battery companies may be able to earn better profit

margins.

If cars charge mostly at night, little or no new capacity will be needed. However, if

new generation capacity is needed, a question arises as to who will pay for the

necessary upgrades.

In vehicle to grid (V2G) applications, cars feed their electricity back into the grid

to supplement electricity supply during peak demand hours. In this case, bi-

directional chargers and appropriate software will be needed to control the

charge flow.

Establish an international hub for manufacturing affordable cars, two wheelers

and tractors Guarantee a stable progress towards open trade, with minimum risk

to local market and Indian economy to make it possible for constant

transformation of Tata by enabling innovative designs, research and

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development support the development of automobiles driven by alternative

energy source improving the local safety and environmental values.

The tata automobile of india having a opportunities like,

Growing demand

Policy support

Innovative opportunity

Providing road ahead

The policies of the India to import and export with Denmark country are:

It has empowered the Central Government to make provisions for development

and regulation of foreign trade by facilitating imports into, and augmenting

exports from India and for all matters connected therewith or incidental thereto.

The Central Government can prohibit, restrict and regulate exports and imports,

in all or specified cases as well as subject them to exemptions.

It authorizes the Central Government to formulate and announce an Export and

Import (EXIM) Policy and also amend the same from time to time, by notification

in the Official Gazette.

It provides for the appointment of a Director General of Foreign Trade by the

Central Government for the purpose of the Act. He shall advise Central

Government in formulating export and import policy and implementing the policy.

Under the Act, every importer and exporter must obtain a 'Importer Exporter

Code Number' (IEC) from Director General of Foreign Trade or from the officer

so authorized.

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SR. NO. PARTICULARS PAGE NO.

1. Overview of Zenvo Automobile industry in

Denmark

1

2. Overview of Tata Automobile industry in

India

9

3. SWOT analysis of Zenvo Automobile

industry

21

4. SWOT analysis of Tata Automobile industry 23

5. Market opportunity for zenvo automobile

industry

26

6. Market Opportunity for Tata Automobile

industry

31

7. Policies and norms of india for import or export to the denmark

33

8. Business plan 35

9. Findings and suggestions 45

10. conclusion 47

11. Bibliography 48

INDEX

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]]]]]]]]

ZENVO ST-1

OVERVIEW

MANUFACTURER Zenvo

ALSO CALLED Zenvo Automotive ST-1

PRODUCTION 2009

ASSEMBLY Zealand, Denmark

DESIGNER Christian Henriksen and Jesper Hermann

INTRODUCTION OF ZENVO AUTOMOBILE INDUSTRY

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BODY AND CHASSIS

CLASS Sports car

BODY STYLE 2-door coupé

LAYOUT MR

POWERTRAIN

ENGINE Turbocharged and Supercharged 7.0L V8

TRANSMISSION 6-speed manual

DIMENSIONS

WHEELBASE 3,055 mm (120.3 in)

LENGTH 4,665 mm (183.7 in)

WIDTH 2,041 mm (80.4 in)

HEIGHT 1,198 mm (47.2 in)

CURB WEIGHT 1,376 kg (3,034 lb)

Zenvo or Zenvo Automotive is a Danish sports car company located in Præstø on the

Danish island of Zealand. It is managed by Jesper Jensen, who is also the founder of the

Jensen car maker, and founded and financed by Troels Vollertsen. The name 'Zenvo' is

derived from a combination of their names.

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Zenvo Automotive was founded in 2004. The first prototype of what became the Zenvo

ST1 was completed in December 2008 and production began in 2009. Only 15 cars were

built: they were sold to approve customers. The car was sold in the United States

through the California based company Red Sea Distribution; the cost of the U.S. based

model was estimated at 1.8 million USD, which included a free watch valued at $50,000.

The Zenvo ST1 was significantly panned by the British motoring program Top Gear after

a series of unfortunate accidents during filming of a segment for the show, including the

car catching fire after a cooling unit failure.

Another car from the company eventually finished a complete timed lap of the Top Gear

Test Track, which was very wet at the time due to the severe weather that plagued

England at the time, the resulting time was inferior than the time a BMW M5 costing

nearly a tenth of the price had reached. Zenvo responded to Top Gear with a statement

published on the Danish website Pro Street.

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About Zenvo

2007

The beginning

A small team of car industry professionals joins forces to realize a mutual dream – the

creation of a unique hyper car. The team lays out a number of objectives for the project:

the car has to be day-to-day drivable, and design and technology should be equally

important in its development. Power should exceed 1100 bhp and speeding up from 0-

100 km/h should be under 3 seconds.

2008

The prototype

The model is ready for its first road test. Developed in house, the 6.8 litre V8 engine

features a unique twin charger system combining super charger and turbo charger.

Thus, the model name: ST1. This engine produces continuous torque and an output of

1000 bhp. During test drives the ST1 accelerates from 0 to 100 km/h in 3.2 seconds.

2009

The unveiling

Unveiled at the 2009 24-hour Le Mans ‘Drivers parade’, the model is nominated for

‘Super car of the year’. Its introduction causes a great stir in the super car industry. In

record time, an unknown Danish car manufacturer has achieved what others have spent

a decade creating: a hyper car with cutting-edge styling and staggering performance

capable of flooring the competition.

2011

The production

After two years of testing and development, Zenvo launches the first series production

ST1. Production pushes the car industry’s methods and technology to the very limit to

achieve quality and accuracy of the highest order.

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2012

The first

The first car is ready and delivered to the client. The production engine is capable ofproducing 1104 bhp at 6900 rpm and 1430 Nm of torque at 4500 rpm. speeding up from 0-100 km/h is now 3 seconds. All the original specification targets have been hit.

zenvo or Zenvo Automotive is a Danish sports car company located in Praesto on the

Danish island of Zealand. It is managed by Jesper Jensen, the founder and financier, and

Troels Vollertsen. The name 'Zenvo' is derived from a combination of their names.

Zenvo "ST1" designed to express the excessive power and performance of the car to the

maximum generating power 1104 hp (810 kW) in 6900 rpm with a maximum speed of

375 km / h through the electronically controlled.

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Zenvo Automotive was founded in 2004. The model was completed in December 2008

and after the final stages of testing, production started in 2009 Stipulation approved car

Zenvo customer ST1.

The Zenvo ST-1 is now being sold in the U.S with a limited production of only 3 cars per

year. Distribution is being handled by the California-based company by the name of Red

Sea Distribution. Cost of the United States-based model is estimated at 1.8 million USD,

which includes free watch valued at $ 50,000.

The Zenvo is a high performance sports car Sementara power available through the

supercharger and turbo, still be drive able for everyday use. 7-liter V8 engine will be

used to produce 1,250 hp (932 kW) at 1,104 hp and reaches (823 kW) at 6,900 rpm and

1,430 N · m (£ 1,050 · ft) of torque at 4500 rpm. In fact, according to The Motor Report,

recent tests returned 0-100 km / h in 3.0 seconds, while 0-200 km / h takes just 8.9

seconds, and top speed of 375 km / h (233 mph)

Even though the strength and velgnya great, this car is small, only 15.3 ft (4.7 m) in

length, 6.7 ft (2.0 m) wide, and 3.9 feet (1.2 m) in height. Weighing more than 3020

pounds (1,370 kg) thanks to carbon fiber body panels.

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Zenvo offers keyless entry, satellite navigation, power telescoping steering wheel, and

leather racing seats are electrically adjustable.

According to Jesper Jensen and Troels Vollertsen, the two-man team behind the ST1,

has decided to keep the Zenvo series to just 15 cars to remain an exclusive car.

The Zenvo entirely a result of Danish design. Carbon fiber body is made in Germany and

many components such as gauges, gas tank, ABS brakes, traction control and airbags are

from the U.S. or German car hostile line of the car was designed by Christian Brandt and

Jesper Hermann who has a design consultant Hartvig Hermann Brandt. Brandt, who

headed the design on the project, has also worked for Alfa Romeo and Kleemann, a

tuning company for Mercedes-Benz auto adjust located in Farum, Denmark.

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It is expected that the cost basis of the car, without registration or tax, will be

approximately five million Danish kroner, which is approximately $ 850,000 U.S. dollars.

Cost of putting a car on the road in Denmark will be about 16 million kroner as a result

of the registration fee, but Zenvo aiming for export markets only.

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TATA MOTORS LIMITED

TYPE Public

TRADED AS BSE: 500570 (BSE SENSEX Constituent)NSE: TATAMOTORSNYSE: TTM

INDUSTRY Automotive

FOUNDED 1945

FOUNDER(S) J. R. D. Tata

HEADQUARTERS Mumbai, Maharashtra, India

AREA SERVED Worldwide

INTRODUCTION OF TATA AUTOMOBILE INDUSTRY

KEY PEOPLE

PRODUCTS

SERVICES

REVENUE

OPERATING INCOME

PROFIT

TOTAL ASSETS

TOTAL EQUITY

EMPLOYEES

PARENT

DIVISIONS

Ratan Tata (Chairman Emeritus) Cyrus Pallonji Mistry(Chairman)Karl Slym (died 26 January 2014, Managing Director) Ravi Kant (Vice Chairman)

AutomobilesCommercial vehiclesCoachesBusesConstruction equipmentMilitary vehiclesAutomotive parts

Automotive design, engineering and outsourcing servicesVehicle leasingVehicle service

US$ 34.7 billion (FY 2012-13)

OPERATING INCOME US$ 3.06 billion (2012)

US$ 2.28 billion (2012)

US$ 28.05 billion (2012)

US$ 6.44 billion (2012)

59,759 (2012)

Tata Group

Tata Motors Cars

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SUBSIDIARIES Jaguar Land RoverTata DaewooTata Hispano

WEBSITE www.tatamotors.com

Tata entered the commercial vehicle sector in 1945 after forming a joint venture

with Daimler-Benz of Germany. After years of dominating the commercial vehicle

market in India, Tata Motors entered the passenger vehicle market in 1991 by launching

the Tata Sierra, a multi utility vehicle. Tata afterward launched the Tata Estate (1992;

a station wagon design based on the earlier 'TataMobile' (1989), a light commercial

vehicle), the Tata Sumo (1994; LCV) and the Tata Safari (1998; India's first sports utility

vehicle).

Tata indica

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Tata nano

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Even

though initially criticized by auto-analysts, its excellent fuel economy, powerful engine

and an aggressive marketing strategy made it one of the best selling cars in the history

of the Indian automobile industry. A newer version of the car, named Indica V2, was a

major improvement over the previous version and quickly became a mass-favourite.

Tata Motors also successfully exported large quantities of the car to South Africa. The

success of Indica played a key role in the growth of Tata Motors.

In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit,

Daewoo Commercial Vehicles Company, afterward renamed Tata Daewoo.

On 27 September 2004, Tata Motors rang the opening bell at the New York Stock

Exchange (NYSE) to mark the listing of Tata Motors.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach

manufacturer Hispano Carrocera. Tata Motors continued its market area expansion

through the introduction of new products such as buses (Starbus & Globus, jointly

developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with

subsidiary Tata Daewoo).

In 2006, Tata formed a joint venture with the Brazil

Bus, to manufacture fully built buses and coaches.

In 2008, Tata Motors acquired the British car maker

the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.

In May 2009 Tata unveiled the Tata World Truck range jointly d

Daewoo; the range went in sale in South Korea, South Africa, the

the Middle-East at the end of 2009.

Tata acquired full ownership of Hispano Carrocera in

In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering

company Trilix for €1.85 million. The acquisition formed part of the company's plan to

enhance its styling and design capabilities.

In 2012, Tata Motors announced it wou

Futuristic Infantry Combat Vehicles in collaboration with

In 2013, Tata Motors announced it will sell in India, the first vehicle in the world

on solid air (engines designed by the French company MDI) and dubbed "Mini CAT".

On 26 January 2014, the

22nd floor to the 4th floor of the

meeting of Tata Motors Thailand.

Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain and South Africa. It plans to establish plantsEastern Europe.

Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano.

In 2006, Tata formed a joint venture with the Brazil-based Marcopolo,

, to manufacture fully built buses and coaches.

In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of


In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata

the range went in sale in South Korea, South Africa, the SAARC

East at the end of 2009.

Tata acquired full ownership of Hispano Carrocera in 2009.


€1.85 million. The acquisition formed part of the company's plan to

enhance its styling and design capabilities.

In 2012, Tata Motors announced it would invest around 6 billion in the development of

Futuristic Infantry Combat Vehicles in collaboration with DRDO.

In 2013, Tata Motors announced it will sell in India, the first vehicle in the world


On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the

the 4th floor of the Shangri-La Hotel in Bangkok where he was to attend a

meeting of Tata Motors Thailand.

Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain and South Africa. It plans to establish plants in Turkey

Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata

30 | P a g e

, Tata Marcopolo

, manufacturer of


eveloped with Tata

SAARC countries and


€1.85 million. The acquisition formed part of the company's plan to

6 billion in the development of

In 2013, Tata Motors announced it will sell in India, the first vehicle in the world to run


was found dead. He fell from the

in Bangkok where he was to attend a

Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Turkey, Indonesia and

Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata

31 | P a g e

TATA MOTORS CARS

Tata Motors Cars is a division of Tata Motors which produces passenger cars under the

Tata Motors marque. Tata Motors is among the top four passenger vehicle brands in

India with products in the compact, midsize car and utility vehicle segments. The

company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad

(Karnataka) and Sanand (Gujarat). Tata's dealership, sales, service and spare parts

network comprises over 3,500 touch points. Tata Motors has more than 250 dealerships

in more than 195 cities across 27 states and 4 Union Territories of India. It has the third

largest sales and service network after Maruti Suzuki and Hyundai.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh,

Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4

continents. However Tata is present in many countries it has only managed to create a

large consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri

Lanka and Nepal. Tata is also present in Italy, Spain, Poland, Romania, Turkey, Chile,

and South Africa.

TATA DAEWOO

Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly

Daewoo Commercial Vehicle Company) is a commercial vehicle manufacturer

headquartered in Gunsan, Jeollabuk

Tata Motors. It is the second

Korea and was acquired by Tata Motors in 2004.

The principal reasons behind the acquisition were to reduce Tata's dependence on the

Indian commercial vehicle market (which was responsible for ar

the MHCV segment and around 84% in the light commercial vehicle segment) and

expand its product portfolio by leveraging on Daewoo's strengths in the heavy

sector.

Tata Motors has jointly worked with Tata Daewoo to develop t

World Truck and buses including GloBus and StarBus. In 2012, Tata began developing a

new line to manufacture competitive and fuel efficient commercial vehicles to face the

competition posed by the entry of international brands like

Navistar into the Indian market.



headquartered in Gunsan, Jeollabuk-do, South Korea and a wholly owned subsidiary of

econd-largest heavy commercial vehicle manufacturer in South

Korea and was acquired by Tata Motors in 2004.


Indian commercial vehicle market (which was responsible for around 94% of its sales in


expand its product portfolio by leveraging on Daewoo's strengths in the heavy

Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and



competition posed by the entry of international brands like Mercedes-

Navistar into the Indian market.

32 | P a g e



do, South Korea and a wholly owned subsidiary of

largest heavy commercial vehicle manufacturer in South


ound 94% of its sales in


expand its product portfolio by leveraging on Daewoo's strengths in the heavy-tonnage

rucks such as Novus and



-Benz, Volvo and

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TATA HISPANO

Tata Hispano Motors Carrocera, S.A. is a bus and coach cabin manufacturer based in

Zaragoza, Aragon, Spain and a wholly owned subsidiary of Tata Motors. Tata Hispano

has plants in Zaragoza, Spain and Casablanca, Morocco. Tata Motors first acquired a

21% stake in Hispano Carrocera SA in 2005, and purchased the remaining 79% for an

undisclosed sum in 2009, making it a fully owned subsidiary, subsequently renamed

Tata Hispano.

JAGUAR LAND ROVER

Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley,

Coventry, United Kingdom and has been a wholly owned subsidiary of Tata Motors since

June 2008, when it was acquired from Ford Motor Company. Its principal activity is the

development, manufacture and sale of Jaguar luxury and sports cars and Land

Rover premium four wheel drive vehicles. It also owns the currently

dormant Daimler, Lanchester and Rover brands.

Jaguar Land Rover has two design centres and three assembly plants in the UK. Under

Tata ownership, Jaguar Land Rover has launched new vehicles including the Range

Rover Evoque, Jaguar F-Type, the Jaguar XF, the latest Jaguar XJ the Second-generation

Range Rover Sport, the Fourth-generation Land Rover Discovery and the fourth-

generation Range Rover.

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COMMERCIAL VEHICLES

The Tata TL

A Tata 407 water truck

A Tata Starbus

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Tata Motors trucks in Rajasthan, India

TATA Semi-Forward Cab 1210SE Truck

Tata twin Axle Lorry in South India

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MILITARY VEHICLES

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4×4)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions

Tata LPTA 713 TC (4×4)

Tata LPT 709 E

Tata SD 1015 TC (4×4)




Tata Winger Passenger Mini Bus

Tata Landrover 1515 F

TATA SUMO 4*4

TATA xenon

ELECTRIC VEHICLES

Tata Motors has unveiled electric versions of the Tata Indica passenger car and the Tata

Ace commercial vehicle, both of which run on lithium batteries. The company has

indicated that the electric Indica would be launched locally in India in about 2010,

without disclosing the price. The vehicle would be launched in Norway in 2009.

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%

holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon

of Norway for US$1.93 million, which specialises in the development of innovative

solutions for electric vehicles, and plans to launch the electric Indica hatchback in

Europe next year. In September 2010, Tata Motors presented four CNG–Electric Hybrid

low-floored Starbuses to the Delhi Transport Corporation, to be used during

the Commonwealth games. These were the first environmentally friendly buses to be

used for public transportation in India.

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Tata Ace

Tata Ace was India's first mini truck

Tata Ace, India's first indigenously developed sub-one-ton mini-truck, was launched in

May 2005. The mini-truck was a huge success in India with auto-analysts claiming that

Ace had changed the dynamics of the light commercial vehicle (LCV) market in the

country by creating a new market segment termed the small commercial vehicle (SCV)

segment.

Ace rapidly emerged as the first choice for transporters and single truck owners for city

and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6

percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load

body produced by Auto line Industries. By 2005, Auto line was producing 300 load

bodies per day for Tata Motors.

Ace is still a top seller for TML with 500,000 units sold to date (June 2010). In 2011, Tata

Motors invensted Rs.1000 Crore in Dharwad Plant, Karnataka with the capacity of

90,000 units annually and launched 2 models of 0.5T capacity as Tata Ace Zip, Magic Iris.

Ace has also been exported to several Asian, European, South American and African

countries and all-electric models are sold through Polaris Industries' Global Electric

Motorcars division. In Sri Lanka it is sold through Diesel & Motor Engineering (DIMO)

PLC under the name of DIMO Batta.

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SWOT ANALYSIS

STRENGTH

One of the early market entrants and oldest car

manufacturer

Offers a wide range of cars to different set of customers

Provides special product features taking into consideration

the targeted segments

Invested efforts to go green in order to help the

environment

Zenvo automobile Has over 160,000 employees

Globally Present across continents and has excellent

visibility & marketing

Zenvo is present in Motorsports like Formula One, Rally,

Sports cars, Touring cars & sponsorship of events

Zenvo having a experienced quality

The strength of a zenvo is a it is a recognizable brand

Zenvo automobile are user oriented

Zenvo having a high level technology

SWOT ANALYSIS OF ZENVO AUTOMOBILE INDUSTRY

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WEAKNESS

Zenvo is Adversely affected by the global recession & Euro

crisis

Zenvo automobile Hasn’t completely tapped emerging

economies as compared to some other automobile giants

Often has long development time

Zenvo is recognized brand it has also a somewhat out of

date image

Fear of new technologies

In Denmark country Peoples are more prefer electrical

cars

OPPORTUNITY

Expanding automobile sector

Improving business scenario due to expansion of consumer

base

Capitalizing on the models exclusively designed for

different markets e.g. zenvo Ikon for Denmark.

User oriented product

Sustainability and environmental vehicles

Technology advancement

Benefits provide by governments

THREATS

Competition from major international players

Increasing usage of public transport and increased fuel

costs

Production problems in local plants due to labor and

similar issues

Too much government interference

Peoples are highly prefer bicycles

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SWOT ANALYSIS OF TATA MOTORS

STRENGTH

One of the most established company in automobile sector

Wide & extensive distribution and service network

Good market penetration in the taxi & rental segment

Expert service professionals available

Many associations like Jaguar Land Rover, Hispanso,

Macropolo etc which increases international presence

Dedicated engineering and R&D department

Tata automobile has More than 60,000 employees

Highly diversified product portfolio

Increase in the export levels

Tata automobile has Low cost and cheap labor

Rise in the working and middle class income

Increasing demand for European quality

Expert skills in producing small cars – good for

environment

SWOT ANALYSIS OF TATA AUTOMOBILE INDUSTRY

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Large pool of engineers

WEAKNESS

Low quality compared to others

Limited international presence

Sometimes faces alleged quality and durability issues

Not much customer engagement programs and activities

Low labour productivity

High interest rate and overhead level

Production cost are generally higher

Low investment in R&D area

Local demand is still towards low cost vehicles, due to low

income levels

OPPORTUNITY

Expanding automobile market and available space for

competitors

Increasing per capita income and purchasing capability of

potential customer base

Leveraging customer engagement experience to acquire

new customers

Leveraging mergers and acquisitions to acquire newer

technology

Augmenting the distribution and service network in various

countries

Growing population in the country

Focus from the government in improving the road

infrastructure

Rising living standards

Increase in income level

Better car technology is demanded

42 | P a g e

Rising rural demand

The car is a status symbol

Women drivers have increased

THREATS

Increasing fuel costs

Competition from other big automobile giants

Competitive products offering same level features at a

lesser price

Product innovations and frugal engineering by competitors

Less skilled labor

Lack of technologies

Increase in the import tariff and technology cost

Increase the import of vehicles

Smaller players that do not fulfill international standards

Increased congestion in the urban areas

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OPPORTUNITIES FOR AUTOMAKERS

Although all major automakers are making electric vehicles, they must decide how to

invest across hybrids, plug-in hybrids, and battery electric vehicles for the future market.

For example, Ford’s Michigan Truck Plant was retooled with the help of ATVM loans to

build electric vehicles.

The retooling was part of a company-wide strategy to increase its portfolio of fuel-

efficient hybrids and EVs.

Automakers typically specialize in engine and transmission systems, while outsourcing

other components. However, the more electric-dependent a vehicle is, the more value

the battery holds.

MARKET OPPORTUNITY FOR ZENVO AUTOMOBILE COMPANY

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Major automakers are now building in-house expertise or partnering with specialized EV

and battery firms to differentiate their technology. The race is to build a better battery,

achieve economies of scale, and provide the customer with the best end value. Over

time, value may shift from batteries to the electronics and software of power and

thermal management systems.

These systems restrain the overall performance of the car, so automakers may move

into this space to increase efficiency and capture this value Opportunities for Battery

Makers.

The global market for electric vehicle batteries in 2009 was $1.3 billion. McKinsey &

Company projects that if annual sales of PEVs reach 6-8 million by 2020, the value of the

battery market will be $60 billion.

This potential opportunity has drawn leading battery makers as well as startups to

invest heavy research and development dollars into vehicle applications. Some have

begun to partner with automakers to gain knowledge of vehicle platforms. Incumbent

battery makers (especially foreign) have an advantage in this market, as startup costs

are high, competition is built on economies of scale, and there are currently only a

handful of customers.

However, the battery industry has also seen a plethora of startup companies that are

driven by innovative technology and venture capitalists eyeing the expanding electric

vehicle market.

As electric vehicles take off, the battery industry is set to evolve. Battery technology is

highly differentiated at the moment. At last, battery makers that compete well on cost,

safety, and performance will rise as leaders.

The price of batteries will also fall as technology becomes more standardized. Once this

happens, battery makers may want to expand into other systems of the electric vehicle

to gain more profit opportunities. For example, McKinsey & Company foresees that

battery companies may also be able to manufacture components for power and thermal

management systems.

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OPPORTUNITIES IN THE SUPPLY CHAIN

Even though electric vehicles and conventional vehicles share some of the same

component parts, there are over a dozen new systems used for EVs that are not well-

matched with conventional vehicles. Some of these new systems include new gear

boxes, electric power steering, and water pumps to cool the electric engine. Battery

packs, cell components, and basic materials for batteries will also require supply chains

to be refigured.

Mass deployment of EVs will require supply chains to be retooled, thereby opening up

opportunities for battery makers, cell component makers, and their suppliers while

moving back the role of other component suppliers. The opportunities for suppliers

depend upon which companies they are supplying. Serving automakers negotiate down

their costs along supply chains in order to provide the best end-value for the customer.

Thus, suppliers who work with startup OEMs and battery companies may be able to

earn better profit margins.

Foreign markets also present significant competition for U.S. suppliers. For example,

U.S. battery makers typically import battery cells and assemble them domestically.

Korea, Japan, and China currently supply about 95 percent of the world’s advanced

batteries and thus have long-standing relationships with raw materials suppliers or

directly own mineral mines themselves.

However, the U.S. federal government is supporting domestic battery makers through

ARRA grants – especially those affected by structural changes in the automotive industry

and the recent recession.

Federal, state, and local incentives are helping suppliers retool as automakers

increasingly focus on producing hybrids and EVs. For example, ARRA Advanced Energy

Manufacturing Tax Credits and state and local incentives helped automotive suppliers in

Michigan retool to make parts for the Chevy Volt battery pack.

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OPPORTUNITIES FOR UTILITIES/INFRASTRUCTURE PROVIDERS

As more and more EVs plug into the electric grid, utilities and infrastructure providers

must match the demand and supply of electricity while yielding positive profits. Because

utilities are often public-private entities, balancing profit and public service can be

challenging. One study found that if EVs accounted for 20 % of local cars sold, EVs would

consume up to 2% of total electricity demand.

If cars charge mostly at night, little or no new capacity will be needed. However, if new

generation capacity is needed, a question arises as to who will pay for the necessary

upgrades.

According to one study, potential sales of 1.8 million EVs in California will require up to

$5 billion in upgrades to transmission/generation infrastructure. While utilities may

diminish some of the cost through federal grants or tax credits, rates will likely go up.

This raises the lifetime cost of owning a EV, and if rates are satisfactorily high, EV

demand will go down. Utilities and regulators will need to agree on a pricing framework

that is not self-defeating, whether new generation capacity is needed or not.

OPPORTUNITIES FOR SOFTWARE DEVELOPERS AND SMART GRID

The development of the smart grid will go hand-in-hand with mass EV consumption. The

smart grid will allow utilities to manage vehicle charging on the grid and facilitate billing

during on and off peak hours. Utilities can also use smart grid software to turn vehicle

chargers on or off to shape the system load.

In vehicle to grid (V2G) applications, cars supply their electricity back into the grid to

supplement electricity supply during peak demand hours. In this case, bi-directional

chargers and proper software will be needed to control the charge flow.

Initial estimates of the entire V2G installation set the cost at $2,000.

47 | P a g e

NRG Energy, a New Jersey-based energy company, launched the United States’ first

commercial-scale V2G demonstration project in late 2011. As results are gathered from

studies like this, the unique opportunities for smart grid and software developers will

become clearer.

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PROMOTE AUTO-SECTOR FOR GROWTH AND EMPLOYMENT

OPPORTUNITIES

Establish an international center for manufacturing affordable cars, two wheelers and

tractors Guarantee a stable progress towards open deal, with minimum risk to local

market and Indian economy to make it possible for constant transformation of Tata by

enabling innovative designs, research and development support the development of

automobiles driven by alternative energy source improving the local safety and

environmental values.

MARKET OPPORTUNITY FOR TATA AUTOMOBILE COMPANY

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GROWING DEMAND

Due to rise in incomes and developing middle class, the purchasing power of people has

increased. Young population is growing the demand for world class cars with the

improved infrastructure; commercial vehicles can right to use distant markets easily.

Hence, their demands have increased by several folds.

POLICY SUPPORT

The intend of the Indian government is to get recognized as a global auto-manufacturing

hub and many NATRIP centre’s have been introduced to push the cause. Funds are

allotted by Gol for Research and Development(R & D) with an aim to manufacture low

cost vehicles. A wide range of policy support has been given to foreign investors in the

form of delicensing 40% reduction in excise duty and decrease in import duties on CKD-

50% and CBU-110%.

INNOVATION OPPORTUNITIES

The Tata Nano & Tata Pixel has opened a new segment for innovating low cost cars

strong export possibility in ultra-low priced car segment. CNG(compressed natural

gas)market value was more than $330 million in the FY 11.CNG distribution network is

expected to expand from 30 cities(2009) to 250 cities in 2018.

ROAD AHEAD

Factors like supportive government policies, optimal business environment and

convenience of inexpensive proficient workforce have transformed India into a global

automobile hub. Foreign manufacturers can consider investing in either or both,

automobile sector and auto components sector in India. Many top brands have already

capitalized on the opportunities and many more are planning to invest today. India is

one of the most rewarding marketing platforms for the best vehicles that the world has

to offer.

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In India, exports and imports are regulated by the Foreign Trade (Development and

Regulation) Act, 1992, which replaced the Imports and Exports (Control) Act, 1947, and

gave the Government of India enormous powers to control it. The salient features of the

Act are as follows:-

It has empowered the Central Government to make provisions for development and

regulation of foreign trade by facilitating imports into, and augmenting exports from

India and for all matters connected therewith or incidental thereto.

The Central Government can prohibit, restrict and regulate exports and imports, in all or

specified cases as well as subject them to exemptions.

It authorizes the Central Government to formulate and announce an Export and Import

(EXIM) Policy and also amend the same from time to time, by notification in the Official

Gazette.

It provides for the appointment of a Director General of Foreign Trade by the Central

Government for the purpose of the Act. He shall advise Central Government in

formulating export and import policy and implementing the policy.

Under the Act, every importer and exporter must obtain a 'Importer Exporter Code

Number' (IEC) from Director General of Foreign Trade or from the officer so authorized.

POLICIES AND NORMS OF INDIA FOR IMPORT OR EXPORT TO THE DENMARK

51 | P a g e

IMPORT POLICY OF INDIA

Duty Rates: Duty rates in India can be as a percentage of value or specific (rupees per

unit). Duty rates vary from 0% to 150%, with an average rate of 11.9%. Some goods are

not subject to duty (e.g. Laptops and other electronic products).

Sales Tax: There is no sales tax in India for imported goods.

Minimum Thresholds: There is no minimum threshold in India, i.e. all imports regardless

of their value are subject to duty and taxes.

EXPORT POLICY IN INDIA

Exports are the major focus of India's trade policy and a thrust area is exports involving

higher value additions. Most items can be freely exported from India. A few items are

subject to export control in order to avoid shortages in the domestic market, to

conserve national resources and to protect the environment.

Export profits are exempt from income tax. Higher royalty payments of 8% (net of taxes)

are permitted on export sales as compared to 5% on domestic sales. Export

commissions up to 10% are also permissible.

Inputs required to be imported for export production are exempted from the basic

customs duty. Export Oriented Units (EOUs) and Export Processing Zones (EPZs) enjoy

special incentives such as duty free import of capital goods and raw materials for the

purpose of export production.

A Brand Equity Fund has been set up to popularize high quality India brands in the world

market. The corpus of the fund of Rs 5 billion (US $156 million) will receive equal

contributions from the government and industry.

Other officer so authorized can suspend or cancel a license issued for export or import

of goods in accordance with the Act. But he does it after giving the license holder a

reasonable opportunity of being heard.

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EXECUTIVE SUMMARY

A TATA motor is the cheapest car providers in the world. It is the largest automobile

company in India. What makes Tata cars so inexpensive? Basically, by making things

smaller, lighter, do away with external parts and change the materials wherever

possible without compromising the safety and environmental conformity. It is said that

Tata motors provide better millage vehicles than competitors and same gas emission as

a scooter.

Regarding the distribution of the car, we have called it "open distribution" innovation

because it mobilizes large numbers of third parties to reach remote rural consumers,

tailor the products and services to more effectively serve their needs, and add value to

the core product or service through subsidiary services.

Company Locations and Facilities

At present the company offices are located at main area of Copenhagen (Capital of

Denmark). However, as time progresses the intention is to move into more accessible

and attractive offices in a prime area.

BUSINESS PLAN

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Objectives

Continuously provide quality service/number of automotive product on time and on

budget.

Develop actively satisfied customers all of the time.

Establish a market presence that assures short-term and long-term profitability, growth

and success.

Contribute positively to communities and environment.

Services

It is an automobile company that intends to deliver vehicles to customers. It intends to

guide customers in selecting a Tata motor model based on pre-defined customer

criteria. This analysis will be based on user profiles, set by the consumers, which include

preferences such as:

Budget

Provide best service

Quality of product requires.

Time to time deliver product.

innovation

Tata automobile will hence be able to select areas of interest based on their preferences

and subsequently.

Keys to Success

The keys to success will definitely be effective market segmentation through

identification of several niche markets and implementation strategies. Along these lines

the company intends to implement advertising and personal selling strategies to the

target markets.

54 | P a g e

Our personal selling marketing strategies will rotate around keeping in touch with loyal

customers and intermediateries for major customers, and advertising for more

individual customers. Hence our key success factors will include the following:

Excellence in fulfilling the promise: We intend to offer completely enjoyable,

comfortable and informative Tata car that will ensure that Tata motor are thoroughly

satisfied and grateful when purchasing Tata product.

Timely response to customers' requests: We cannot afford to delay our clients for

whatever reason, as this will have a negative bearing on our image and reputation,

including future business. Hence we need to be continually communicating with the

customers to ensure that what they expect and what is their requirements towards the

car.

Solid and successful strategic alliances: Considering the nature of our services and our

relative youth on the market, we realize the importance of establishing and maintaining

fruitful strategic alliances with various stakeholders or distributors of Denmark country

and tata motor alliance with any Denmark atomative company, amongst others, so as

be assured of a constant flow of customers, fulfilling their needs at every opportunity.

Key benefits to the customers

Affordable

Fuel efficient

Safe

Environment friendly

Reliability compared to other competitors

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The Revenue Model The way Tata motors raise funds include several aspects. Those aspects

are detailed in the as follows.

1. SELLING THE CARS TO CUSTOMERS:-This activity is the first revenue flow of the project.

The first targeted market is the Indian one. There are also project to extend the market

of Tata motors to Malaysia, the rest of Asia, Europe, Africa and South America.

2. BANK SERVICES:-Tata motors have sign contract with Indian Banks in order to allow

low income people to get loans at low interests. Therefore, they could afford

booking for their Tata cars that contract, Tata motors and the bank all take advantages.

3. MAINTENANCE SERVICES:-The Tata motors project include a maintenance department. In

fact, the customers will be offered maintenance services at a fix price per month.

Those services will be extremely competitive and cheap as the car itself.

4. ADVERTISING:-Tata motors have been making a lot of advertisement in a lot of

countries. As Tata motors have become a famous trade, some channel will allow Tata

motors advertisement to be displayed, increasing the channel audience. In addition, Tata

Motors will take advantage of sweepstakes organized in order to promote the car.

Those events always bring to the company both publicity and money.

5. MARCHANDISING:-There are a lot of product that have been manufactured in order

to promote the Tata motors, namely hats and cups. The company will therefore

sell those products and make money benefits from them.

6. MAKING FRANCHISES:-The development of Tata motors started many years ago and

have lead to the production of an extremely efficient cars as far as pollution and gas

consumption are concerned. The technology used could be sold to other companies as

Licenses, leading to funds raise.

56 | P a g e

COMPETITORS

There are presently few competitors offering services similar to ours. However

considering the pace of change and current growth rate of the automotive industry

during many companies into the sector, this may be short-lived. Hence there will be a

need to not only firmly establish ourselves on the market, but also strongly differentiate

ourselves from these other businesses. However on a broader scale our competition

comes in several forms:

AT NATIONAL LEVEL

The closest competitor of the Tata motors" is Maruti which is double of its price. A small

car from Maruti Suzuki, which is priced higher than Tata motors. FOR E.G., Despite

six percent shorter, Tata nano has about twenty one percent more interior space than

the Maruti 800 due to its larger height and width. Suzuki is aware of the gap and is

working with difficulty to improve its current care listings. It will focus on achieving

the practicality and efficiency of Tata Nano without compromising on safety and

quality.

However, Maruti Suzuki is not in a position to reduce the price of Maruti 800 just for

the sake of competing with Tata Nano. Bajaj auto is also developing a low cost car

(code-named ULC) tagged at 2,000 Euro together with Renault-Nissan to rival Tata

Nano. This ultra-low cost car is expected to be launched in India in 2012.

The companies claim that the new ULC car will consume less fuel than any other four-

wheeler on the urban roads. Thus the car is expected to take on the Tata Nano,

the cheapest car being produced and marketed by Tata Motors in the country.

AT INTERNATIONAL LEVEL

The Toyota IQ could be a competitor of tata motors at international level because it

is the world’s smallest four seater car provider e.g...TATA NANO. Though the car is a small

car since it gives the feel of a large car since it has the power of a Toyota. But the

Nano’s price and design is much better than the Toyota IQ.

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Another car that could be a competitor will be Mitsubishi I. But there again people may

opt for the nano because of the mileage it provides if people are looking for a fuel

efficient car in that category. The Toyota super mini could also compete with this car.

China's Cherry QQ could also be considered as a strong competitor who is expected

to gain foothold in the Indian market in 2008. The Cherry is expected to retail about

2,600 Euro. But when compared to any of these above mentioned international models

the Tata Nano Europe model stands out.

Hyundai is another company taking Tata Nano seriously. Hyundai plans to launch a new

model in the market which would be priced cheaper than their current cheapest model-

Santro. This new car would not be released at least until 2011, and is expected to be

manufactured in Hyundai's new factory.

Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids,

and some environmentalists argue getting prices down on these technologies is where

efforts should be concentrated. Inexpensive and eco-friendly electric-cars like Tara Tiny,

Oreva Super (both reportedly even cheaper than Tata Nano) and REVA pose even more

significant danger to Nano.

The design, mileage, space efficiency, maneuverability of the Tata nano Europe is better

when compared to the others. Also in terms of being less pollute the tata nano

Europe is a very environment friendly car. May be it could be found a bit lacking in

power and the top speed. But tata nano Europe is set to take entire europe and the rest

of the world by storm and is sure to give its competitors a run for their money.

STRATEGIES

Establish reputation as a differentiated, specialty provider of cars. This will be

accomplished through a different marketing communications program.

Provide equaled service to the customers, local and international, in order to gain

repeat business and build trust. This will include providing superior service in all phases

of the transaction, including timely delivery or customized products.

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Promotion Strategy

Direct Marketing: In the case of telemarketing it will involve our targeting potential

customers of our services and informing them of our existence and destinations.

Events: The organization aims to promote itself through attending trade shows and

expositions. Not only will these increase awareness of our services and business name,

but also enable us to interact with potential customers who may decide to utilize our

products and service.

Internet Marketing: The increasing growth of the Internet as an information source

provides an opportunity for ourselves that we may exploit. This is particularly so in view

of the increasing distribution of information over the World Wide Web, as individuals

and groups look at obtaining the best deal possible.

MARKETING PLAN

The Marketing Strategy

This section discusses the different aspects of the marketing strategy adapted by

TATA motors.

The People’s car

The Buzz

Across the borders

Tata Motor Showrooms

Bank Financing

On The web

The One Form Booking

“A promise is a promise”

Warranty

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FINANCIAL PLAN

Underlying Assumptions

The automobile industry will have an annual revenue growth rate of 10% per year.

The Owner will acquire Rs. 40,00,000 of debt funds to develop the business.

The loan will have a 10 year term with a 9% interest rate.

Sensitivity Analysis

In the event of an economic downturn, the business should not have a major decline

in its revenues. The automobile intends to produce in demand cars that will be

readily purchased by customers. As such, the Company will be able to remain

profitable and cash flow positive in any economic climate.

Sales Forecasts:

The Tata automobile expects a strong rate of growth at the start of productions.

Below are the expected financials over the next three years:

Performa Profit and Loss (yearly)

Year 1 2 3

Sales 65,55,290 71,14,265 77,78,550

Operating Costs 35,94,920 39,01,465 42,65,750

EBITD 29,60,370 32,12,800 35,12,800

Taxes, Interest, and Depreciation 11,84,148 12,85,120 14,05,120

Net Profit 17,76,222 19,27,680 21,07,680

At this time, Tata automobile will require Rs.40,00,000 of debt funds.

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FEEDBACK AND CONTROL

We intend to make sure that each employee understands the goals of the firm, is

customer focused, proud of their work and work as a team. This will encourage

employees to become entrepreneurial and customer responsible, in addition to unifying

staff in customer focus and values.

Important notices and developments will be continuously communicated to employees

so as to keep them abreast of developments and promoting a sense of belonging and

oneness in the organization.

We will encourage our employees to put forward any suggestions they might have

regarding the improvement of any of the company's functions - an open door

philosophy. Such a culture will enhance innovativeness and creativity in turn leading to

job satisfaction and enrichment.

We undertake to continuously formalize and measure cross-functional working

communication so as to ensure that the various departments work harmoniously

towards attainment of company objectives.

CONCLUSION

A Tata motor achieves what most people deemed impossible through originality and

initiative. It is a no added extras car that serves the needs of the general public and

India's unacceptable road conditions and dishonorable traffic. In this sense, the

production and launch of Tata motors can be called a revolution - not only to the consumers

but also to industry players.

Other players are contemplating on their own versions of low cost alternatives as a result

of the overwhelming response from the Indian public and all over the world. Moreover,

their uncertainty is met with a surprise upon seeing the model in action.

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The next step forward for Tata is to address the possible concerns with regard to

ownership in order for customers to grasp the value proposition that Tata is trying to

broadcast.

This includes dispelling all perceptions of shortcomings normally associated with a low-

cost car through vigorous testing on real roads using real users. The basic rule of

customer service still applies.

Tata motors should meet the consumer's expectations by providing a reliable and

modestly safe vehicle to drive. The car, with its huge recognition gained even before its

launch, is expected to fulfill the dreams of common people.

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FINDINGS:

As per the above report it has been found that for Indian automobile there is

a very good opportunity to do the business in Denmark. The opportunities to

establish automobile industry in Denmark are:

o Opportunities for automakers

o Opportunities in the supply chain

o Opportunities for software developers and smart grid

o Opportunities for utilities/infrastructure providers

Denmark country provides more technological advantage for industry than

the india.

Denmark country having a better skilled engineers and labours than the

Indian that’s why the india has a better opportunities to established their

business in Denmark for more profit.

Government support in Denmark is more than India so the Indian company

can easily do the business in Denmark.

Denmark provides high investment area for earning high profit.

FINDINGS AND SUGGESTION

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SUGGESTION:

Hence, it can be suggested that doing a automobile business in Denmark will

be very beneficial as there are more opportunities in Denmark to expand the

business as well as earn profits in long term.

Denmark’s policies and market opportunities are suitable to start up a

business in Denmark. Of course there are certain problems too. But

opportunities are more as compared to problems.

If both the company of India and Denmark will merge together than it will

create competitive advantage to them.

Doing a business in Denmark is simple and valuable.

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After analyzing the above report, it can be concluded that Tata automobile

can easily develop its business in Denmark because the Denmark country

provides the more opportunity with a high development technology.

If the Tata automobile will start there business in Denmark than it should be

helps to remove out or decrease the weakness of Tata automobile.

As per the report we conclude that through the merging with Denmark,

Indian company can easily convert their weakness in to the strength.

Denmark country mainly focuses on electronic vehicles while the Indian

country is mostly focused on fuel.

Denmark country having technological advantage to run out their business

with providing innovative vehicles.

The Tata automobile of India having a opportunities to do the business are

like,

Growing demand

Policy support

Innovative opportunity

Providing road ahead

Tata automobile provide customized product to customers with a low cost.

As per the report finally we conclude that the Denmark country is better to

do the business than india.

CONCLUSION

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in-india

BIBLIOGRAPHY

814 denmark automobile industry

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