Recruitment and Selection Process in Tata Motors

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RECRUITMENT AND SELECTION PROCESS IN

TATA MOTORS

By
NUNNA SHANMUKHA SATVIK
HT. NO: 227821683043

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CONTENTS

1. INTRODUCTION

2. INDUSTRY PROFILE

3. COMPANY PROFILE

4. OBJECTIVE OF STUDY

5. RESEARCH METHODOLOGY

6. DATA ANALYSIS AND INTERPRETATION

7. FINDING

8. RECOMMENDATION & SUGGESTION

9. LIMITATION

10. CONCLUSION

11. BIBLIOGRAPHY

12. ANNEXURE

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INTRODUCTION

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INTRODUCTION

Recruitment and selection process

Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates to a one or more jobs within an organization, either permanent or temporary. The
term may sometimes be defined as incorporating activities which take place ahead of attracting
people, such as defining the job requirements and person specification, as well as after the
individual has joined the organization, such as induction and on boarding. Recruitment can also
refer to processes involved in choosing individuals for unpaid positions, such as voluntary roles
or training programmers. Depending on the size and practices of the organization, recruitment
may be undertaken in-house by managers, human resource generalists and/or recruitment
specialists. Alternatively, parts of the process may be undertaken by either public-sector
employment agencies, commercial recruitment agencies, or specialist search consultancies. The
use of internet-based services and computer technologies to support all aspects of recruitment
activity and processes has become widespread and has revolutionized recruitment activities
ranging from recruitment agencies sourcing candidates through online job boards and social
media, or human resource professionals using assessment or job simulation programs as part of
the selection process.

Internal

Internal recruitment refers to the process of a candidate being selected from the existing
workforce to take up a new job in the same organization, perhaps as a promotion, or to provide
career development opportunity, or to meet a specific or urgent organizational need. Advantages
of this approach include the organization's familiarity with the employee and their
competencies (insofar as they are revealed in their current job), and their willingness to trust said
employee. It can also be quicker and can have a lower cost to hire someone from another part of
the same organization. A temporary internal appointment for a period of a few months
sometimes occurs, after which the employee would normally be expected to return to their
previous job.

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RECRUITMENT PROCESS
Job analysis

In situations where multiple new jobs are created and recruited for the first time, a job
analysis might be undertaken to document the knowledge, skill, ability, and other personal
characteristics required for the job. From these the relevant information is captured in such
documents as job descriptions and job specifications. Often a company will already have job
descriptions that represent a historical collection of tasks performed. Where already drawn up,
these documents need to be reviewed or updated to reflect present day requirements. Prior to
initiating the recruitment stages a person specification should be finalized to provide the
recruiters commissioned with the requirements and objectives of the project.

Sourcing

Sourcing is the use of one or more strategies to attract or identify candidates to fill job vacancies.
It may involve internal and/or external advertising, using appropriate media, such as local or
national newspapers, specialist recruitment media, professional publications, window
advertisements, job centers, or in a variety of ways via the internet. Alternatively, employers may
use recruitment consultancies or agencies to find otherwise scarce candidates who may be
content in their current positions and are not actively looking to move companies. This initial
research for so-called passive candidates, also called name generation, results in a contact
information of potential candidates who can then be contacted discreetly to be screened and
approached.

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SCREENING AND SELECTION
Suitability for a job is typically assessed by looking for that are required for a job. These can be
determined via: screening résumés (also known as curriculum vita or CV); job
application; Biographical Information Blanks which is an assessment that asks for a more
extensive background than an application; or a job interview. Various psychological tests can be
used to assess a variety of KSAOs, including literacy. Assessment are available to
measure physical. Many recruiters and agencies use applicant tracking systems to perform the
filtering process, along with software tools for psychometric testing and performance based
assessment. Performance based assessment is a process to find out if job applicants perform the
responsibilities for which they are applying. In many countries, employers are legally mandated
to ensure their screening and selection processes meet equal opportunity and ethical standards.

In addition to the above selection assessment criteria, employers are likely to recognize the value
of candidates who encompass "soft skills" such as interpersonal or team leadership, and have the
ability to reinforce the company brand through behavior and attitude portrayal to customers and
suppliers. Multinational organizations and those that recruit from a range of nationalities are also
concerned candidates will fit into the prevailing company culture. Though many hold
attitudes that are more enlightened and informed than past years, the word “disability” carries
few positive connotations for most employers. Research has shown that employer biases tend to
improve through firsthand experience and exposure with proper supports for employee and the
employer making the hiring decisions, less influenced by the disabled applicant perceived
contribution. As for most companies, money and job stability are two of the contributing factors
to productivity, which in return equates to the growth and success of a business. Hiring disabled
workers produce more advantages than disadvantages. Disabled workers are more likely to stay
with the company and make their a work a career than most due to the fact that they appreciate
having a job and are more stable because they a work at high levels. There is no difference in the
daily production of a disadvantaged worker. Given their situation, they are more likely to adapt
to their environment surroundings and acquaint themselves with equipment, enabling them to
solve problems and overcome adversity as other employees. Companies are granted Disable
Access Credit. Although there are eligibility requirements for these funds, it could assist with
costs of accommodations and other expenses. Additional management to supervise and assist

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those who encounter problems are needed which causes employers to hire more qualified
personnel (in case supervisor unavailable) and equate to higher wages, double shifts and
incentives. Ensuring adequate space and property changes such as ramps, restricting parking
spaces, and posting handicap signs can be fairly inexpensive, transformations still have to be in
place and tedious. Sometimes companies loose skilled workers due to depth of responsibility
entailed in overseeing employees that are less advantaged.

Lateral hiring

"Lateral hiring" refers to the hiring of someone into a position that is at the same organizational
level or salary. It could mean hiring someone from another, similar organization, possibly luring
them with a better salary and the promise of better career opportunities. An example is the
recruiting of a partner of a law firm by another law firm. A lateral hire may also refer to an
employee moving from one position to another within the same organization.

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APPROACHES
There are a variety of recruitment approaches and most organizations will utilize a combination
of two or more of these as part of a recruitment exercise or to deliver their overall recruitment
strategy. There are six common models:

 In-house or human resources personnel may in some case still conduct all stages of the
recruitment process. In smaller organizations, recruitment may be done by individual
managers or recruiters. More frequently, whilst managing the overall recruitment exercise
and the decision-making at the final stages of the selection process, external service
providers may undertake the more specialized aspects of the recruitment process.

 Social Media Recruitment is the new trend which can implement in the current
recruitment process. Social media helps to drive passive candidates and indirectly helps to
create brand awareness about the company. A few tools commonly used by social media
recruiters are LinkedIn, Facebook, Twitter, Google+, etc.

 Outsourcing of recruitment to an external provider may be the solution for some small
businesses and at times for large organizations.

 Employment agencies are established as both publicly funded services and as commercial
private sector operations. Services may support permanent, temporary, or casual worker
recruitment. They may be generic agencies that deal with providing unskilled workers
through to highly skilled managerial or technical staff or so-called niche agencies that
specialize in a particular industrial sector or professional group.

 Executive search firms recruit for executive and professional positions. These firms
operate across a range of models such as contingency or retained approaches, and also hybrid
models where advertising is also used to ensure a flow of candidates alongside relying on
networking as their main source of candidates.

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TYPES OF RECRUITMENT PROCEDURE
In-house

Many employers undertake their own in-house recruitment, using their human
resources department, front-line hiring managers and recruitment personnel who handle targeted
functions and populations. In addition to coordinating with the agencies mentioned above, in-
house recruiters may advertise job vacancies on their own website and other job boards,
coordinate internal employee referrals, target and headhunt external candidates (much like an
external agency or search firm), work with external associations, trade groups and/or focus on
campus graduate recruitment. Some large employers choose to outsource all or some of their
recruitment process (recruitment process outsourcing), however a more common approach is for
employers to introduce referral schemes where employees are encouraged to source new staff
from within their own network.

Internal recruiters

An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of


a company or organizationand typically works in the human resources department. Internal
recruiters may be multifunctional, serving in an HR generalist role or in a specific role focusing
all their time on recruiting. Activities vary from firm to firm but may include, screening CVs or
résumés, conducting aptitude or psychological testing, interviewing, undertaking reference and
background checks, hiring; administering contracts, advising candidates on benefits, on
boarding new recruits and conducting exit interviews with employees leaving the organization.
They can be permanent employees or hired as contractors for this purpose. Contract recruiters
tend to move around between multiple companies, working at each one for a short stint as
needed for specific hiring purposes. The responsibility is to filter candidates as per the
requirements of each client.

Employee referral

An employee referral program is a system where existing employees recommend prospective


candidates for the job offered, and in some organizations if the suggested candidate is hired, the
employee receives a cash bonus. Job seekers may also be referred or recommended by a third-

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party affiliate within a particular field based on certain criteria resulting in a lead or interview
with a potential future employer.

In some cases the organization provides the employee referral bonus only if the referred
employee stays with the organization for stipulated time duration (most cases 3–6 months).
Referral bonus depends on the grade of the referred employee, higher the grade then higher the
bonus however, this method is not used for senior level hiring.

Outsourcing

An external recruitment provider may suit small organizations without the facilities to recruit.
Typically in large organizations, a formal contract for services is negotiated with a specialist
recruitment consultancy. These are known in the industry as Recruitment Process Outsourcing.
Recruitment process outsourcing may involve strategic consulting for talent acquisition, sourcing
for select departments or skills, or total outsourcing of the recruiting function.

On-campus

Job Interview

Sometimes companies send recruiters to colleges to interview prospective employees.

Employment agencies
For more details on this topic, see employment agencies.

Employment agencies operate in both the public and private sectors. Publicly funded services
have a long history, often having been introduced to mitigate the impact of unemployment in
economic downturns, such as those which form part of the New Deal program in the United
States, and the Jobcentre Plus service in the UK.

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The commercial recruitment industry is based on the goal of providing a candidate to a client for
a price. At one end of the spectrum, there are agencies that are paid only if they deliver a
candidate that successfully stays with the client beyond the agreed probationary period. On the
other end, there are agencies that are paid a retainer to focus on a client's needs and achieve
milestones in the search for the right candidate, and then again are paid a percentage of the
candidate's salary when a candidate is placed and stays with the organization beyond the
probationary period.

The agency recruitment industry is highly competitive, therefore agencies have sought out ways
to differentiate themselves and add value by focusing on some area of the recruitment life cycle.
Though most agencies provide a broader range of service offerings, at the two extremes are the
traditional providers and the niche operators.

Traditional agency

Also known as employment agencies, recruitment agencies have historically had a physical
location. A candidate visits a local branch for a short interview and an assessment before being
taken onto the agency’s books. Recruitment consultants then work to match their pool of
candidates to their clients' open positions. Suitable candidates are short-listed and put forward for
an interview with potential employers on a contract or direct basis.

Niche recruiters

'Specialized recruiters' exist to seek staff with a very narrow specialty. Because of their focus,
these firms can very often produce superior results due to their ability to channel all of their
resources into networking for a very specific skill set. This specialization in staffing allows them
to offer more jobs for their specific demographic, which in turn attracts more specialized
candidates from that specific demographic over time building large proprietary databases. These
niche firms tend to be more focused on building ongoing relationships with their candidates as is
very common the same candidates are placed many times throughout their careers. Online
resources have developed to help find niche recruiters. Niche firms also develop knowledge on
specific employment trends within their industry of focus (e.g., the energy industry) and are able
to identify demographic shifts such as aging and its impact on the industry.

Financial arrangements operated by agencies take several forms, the most popular are:

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 A contingency fee paid by the company when an agency introduced candidate accepts a
job with the client company. Typical fees range from 15% to 35% based on the candidates
first-year base salary (fees as low as 12.5% can be found online). This type of recruitment
usually has a rebate or replacement guarantee should the candidate fail to perform or leave
within a set period of time (often up to a three-month period and as much as a 100% rebate).
 An advance payment that serves as a retainer, also paid by the company, is non-
refundable and paid in full depending on outcome and success (e.g., 40% up front, 30% in 90
days and the remainder once a search is completed). This form of compensation is generally
reserved for high level executive search/headhunters
 Hourly charge for temporary workers and projects. A negotiated hourly fee in which the
agency is paid and then pays the applicant as a consultant for services as a third party. Many
contracts allow a consultant to transition to a full-time status upon completion of a certain
number of hours with or without a conversion fee.

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EXECUTIVE SEARCH FIRMS OR HEADHUNTERS
An executive search firm or "headhunter" are industry terms for a third-party recruiter who seeks
out candidates often once normal recruitment efforts have failed. Headhunters are generally
considered more aggressive than in-house recruiters or may have existing industry experience
and contacts. They may use advanced sales techniques. They may also purchase expensive lists
of names and job titles but more often will generate their own lists. They may arrange a meeting
or a formal interview between their client and the candidate and will usually prepare the
candidate for the interview, help negotiate the salary and conduct closure of the search. They are
frequently members in good standing of industry trade groups and associations. Headhunters will
often attend trade shows and other meetings nationally or even internationally that may be
attended by potential candidates and hiring managers.

Headhunters are typically small operations that make high margins on candidate placements
(sometimes more than 30% of the candidate’s annual compensation). Due to their higher costs,
headhunters are usually employed to fill senior management and executive level roles.
Headhunters are also used to recruit very specialized individuals; for example, in some fields,
such as emerging scientific research areas, there may only be a handful of top-level professionals
who are active in the field. In this case, since there are so few qualified candidates, it makes
more sense to directly recruit them one-by-one, rather than advertise internationally for
candidates. While in-house recruiters tend to attract candidates for specific jobs, headhunters will
attract both candidates and actively seek them out as well. To do so, they may network, cultivate
relationships with various companies, maintain large databases, purchase company directories or
candidate lists and cold call prospective recruits.

Headhunters are increasingly using social media to find and research candidates. This approach
is often called social recruiting.

Executive research & resourcing firms

These firms are the new hybrid operators in the recruitment world, able to combine the research
aspects (discovering passive candidates) of recruiting and combine them with the ability to make
hires for their clients. These firms provide competitive passive candidate intelligence to support
companies' recruiting efforts. Normally they will generate varying degrees of candidate

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information from those people currently engaged in the position a company is looking to fill.
These firms usually charge a daily rate or fixed fee. Executive research can help companies
uncover names that cannot be found through traditional recruitment methods and will allow
internal recruitment and resourcing managers more time to deal with face to face interviews.

Internet recruitment services

Recruitment websites

Such sites have two main features:

Job boards and a résumé/curriculum vitae (CV) database. Job boards allow member companies
to post job vacancies. Alternatively, candidates can upload a résumé to be included in searches
by member companies. Fees are charged for job postings and access to search resumes. Since the
late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites
capture candidate details and then pool them in client accessed candidate management interfaces
(also online). Key players in this sector provide e-recruitment software and services to
organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or
partly their recruitment process in order to improve business performance.

The online software provided by those who specialize in online recruitment helps organizations
attract, test, recruit, employ and retain quality staff with a minimal amount of administration.
Online recruitment websites can be very helpful to find candidates that are very actively looking
for work and post their resumes online, but they will not attract the "passive" candidates who
might respond favorably to an opportunity that is presented to them through other means. Also,
some candidates who are actively looking to change jobs are hesitant to put their resumes on the
job boards, for fear that their companies, co-workers, customers or others might see their
resumes.

Job search engines

The emergence of meta-search engines allows job-seekers to search across multiple websites.
Some of these new search engines index and list the advertisements of traditional job boards.
These sites tend to aim for providing a "one-stop shop" for job-seekers. However, there are many
other job search engines which index solely from employers' websites, choosing to bypass

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traditional job boards entirely. These vertical search engines allow job-seekers to find new
positions that may not be advertised on traditional job boards, and online recruitment websites.

Recruitment agency directories

The emergence of the Internet provided the functionality to provide recruitment agencies with a
low-cost alternative to advertising. Unlike a standard directory, these niche directories have
helped those searching for employment representation, a way to narrow down their requirements
based on their own job-searching requirements. Recruitment agencies are then able to showcase
their services directly to those looking. Omm Rudra Placement Services Badambadi, Cuttack

Social recruiting

Social recruiting is the use of social media for recruiting including sites like Facebook, Twitter,
and LinkedIn. It is a rapidly growing sourcing technique, especially with middle-aged people. On
Google+, the fastest-growing age group is 45-54. On Twitter, the expanding generation is people
from ages 55–64.

Mobile social recruiting is rapidly expanding. CareerBuilder ran a recent survey of the Fortune
500 companies and discovered that 39% of people in the United States uses tablet computers.
Another recent survey done by Glassdoor. comrevealed that 43% of candidates research
company policy, culture, and history all within the fifteen minute time period before an interview
begins. However, 80% of Fortune 500 companies fail to use mobile-optimized career sites.

Candidate Paid Recruiters

Some recruiters work by accepting payments from job seekers, and in return help them to find a
job. Such recruiters often refer to themselves as "personal marketers" and "job application
services" rather than as recruiters.

Strategic talent acquisition

Talent acquisition is the targeted recruitment/acquisition of high performing teams for example;
in sales management or financial traders into a company from a competitor or similar type of
organization. Organizations requiring external recruitment or head-hunting firms are now
employing "talent acquisition" specialists whose job it is to identify, approach and recruit top
performing teams from competitors. This role is a highly specialized role akin to that of a

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traditional recruiter/headhunter specialist but carrying greater visibility and strategic importance
to a business. In many cases the talent acquisition person is linked directly to a company's
executive management, given the potential positive impact a company can benefit from by
getting high-performance sales people into the business, whilst removing the same performing
sales people from competitors.

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INDUSTRY PROFILE

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INDUSTRY PROFILE
Automotive industry in India

Chennai is home to around 35–40% of India's total automobile industry.

A Tata Motors next generation concept car 2015 Geneva Motor Show

The automotive industry in India is one of the largest in the world with an annual production
of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of 2.57 per cent over
the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic
product (GDP). The Two Wheelers segment, with 81 per cent market share, is the leader of the
Indian Automobile market, owing to a growing middle class and a young population. Moreover,
the growing interest of companies in exploring the rural markets further aided the growth of the
sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the near
future. In FY 2014–15, automobile exports grew by 15 per cent over the last year. In addition,
several initiatives by the Government of India and the major automobile players in the Indian
market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W)
market in the world by 2020.

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Market Size

Auto Expo 2014, Noida

The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs),
three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014,
registering a marginal growth of 3.07 per cent, year-to-year.

The sales of PVs grew by 8.51 per cent in April–October 2015 over the same period in the
previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October
2015 as compared to same period last year. Medium and Heavy Commercial Vehicles
(M&HCVs) registered very strong growth of 32.3 per cent while sales of Light Commercial
Vehicles (LCVs) declined by 5.24 per cent during April–October 2015, year-to-year.

In April–October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs, 3Ws and
2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per cent,
respectively, in April–October 2015 over April–October 2014.

Investments

Interior of Tata ConnectNext EV concept car at 2015 Geneva Motor Show

In order to keep up with the growing demand, several auto makers have started investing heavily
in various segments of the industry during the last few months. The industry has attracted foreign
direct investment (FDI) worth US$13.48 billion during the period April 2000 to June 2015,
according to data released by Department of Industrial Policy and Promotion (DIPP).

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Some of the major investments and developments in the automobile sector in India are as
follows:

 Global auto maker Ford plans to manufacture in India two families of engines by 2017, a
2.2 litre diesel engine code-named Panther, and a 1.2 litre petrol engine code-named Dragon,
which are expected to power 270,000 Ford vehicles globally.
 The world's largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and
Toyoda Gosei Co are setting up plants and increasing capacity in India.
 General Motors plans to invest US$1 billion in India by 2020, mainly to increase the
capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025.
 US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525 million) in
Maharashtra, to manufacture Jeep Grand Cherokee model.
 Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company
has doubled its India assembly capacity to 20,000 units per annum.
 Germany-based luxury car maker Bayerische Motoren Werke AG's (BMW) local unit has
announced to procure components from seven India-based auto parts makers.
 Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based
Peugeot Motorcycles (PMTC).

Government Initiatives

Isuzu's newly inaugurated manufacturing plant in 2016 at Sri City,Andhra Pradesh, India

The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route.

Some of the major initiatives taken by the Government of India are:

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 The Government of India aims to make automobile manufacturing the main driver of
"Make in India" initiative, as it expects the passenger vehicles market to triple to 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
 In the Union budget of 2015-16, the Government has announced plans to provide credit
of Rs 850,000 crore (US$127.5 billion) to farmers, which is expected to boost sales in the
tractors segment.
 The government plans to promote eco-friendly cars in the country—i.e. CNG-based
vehicles, hybrid vehicles, and electric vehicles—and also to make mandatory 5 per cent
ethanol blending in petrol.
 The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission
2020, to encourage the progressive introduction of reliable, affordable, and efficient
electric and hybrid vehicles into the country.
 The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the well-
established Regulatory Framework under the Ministry of Shipping, Road Transport and
Highways, plays a part in providing a boost to this sector.

History

A pre-Independence car showroom in Secunderabad

Indian Royalty were one of the largest buyers of luxury cars during pre-Independence British
India

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Kolkata street traffic in 1945

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in
small numbers.

An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was
launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge,
and Fiat products respectively.[4] Mahindra & Mahindra was established by two brothers in 1945,
and began assembly of Jeep CJ-3A utility vehicles. Following independence in 1947, the
Government of India and the private sector launched efforts to create an automotive-component
manufacturing industry to supply to the automobile industry. In 1953, an import substitution
programme was launched, and the import of fully built-up cars began to be restricted.

1947-1970

The 1949 Hindustan 10 built by Hindustan Motors under license from Morris Motors, UK

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The Hindustan Ambassadordominated India's automotive market from the 1960s until the mid-
1980s and was manufactured till 2014

Fiat 1100D, built under license byPremier Automobiles later re-christened 'Premier Padmini' was
the Ambassador's only true competitor

The 1952 Tariff Commission

In 1952, the government appointed the first Tariff Commission, one of whose purposes was to
come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953,
the commission submitted their report, which recommended categorizing existing Indian car
companies according to their manufacturing infrastructure, with licensed capacity to manufacture
a certain number of vehicles, with capacity increases allowable, as per demands, in the future.
The Tariff Commission recommendations were implemented with new policies that would
eventually exclude companies that only imported parts for assembly, as well as those with no
Indian partner. In 1954, following the Tariff Commission implementation, General Motors, Ford,
and Rootes Group, which had assembly-only plants in Mumbai, decided to move out of India.[5]

The Tariff commission policies, including similar restrictions that applied to other industries,
came to be known as the "license raj", which proved to be the greatest undoing of the Indian
automotive industry, where bureaucratic red tape ended up causing demand to outstrip supply,
with month-long waiting periods for cars, scooters, and motorcycles.

Passenger Cars

 Hindustan Motors, Calcutta - technical collaboration with Morris Motors to manufacture


Morris Oxford models that would later become HM Ambassador.
 Premier Automobiles, Bombay - technical collaboration with Chrysler to
manufacture Dodge, Plymouth and Desoto models and with Fiatto manufacture the 1100D
models which would later with Premier Padmini range.

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 Standard Motor Products of India, Madras - technical collaboration from Standard-
Triumph to manufacture Standard Vanguard,Standard 8, 10 and later Standard Herald.

Utility and Light Commercial Vehicles

 Vehicle Factory Jabalpur - started manufacturing Jonga Light Utility Vehicles and Vahan
1 Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the
main troop carriers of the Indian Armed Forces and much powerful than any other vehicle of
their class.
 Mahindra & Mahindra, Bombay - technical collaboration with Willys to manufacture CJ
Series Jeep.
 Bajaj Tempo, Poona now Force Motors - technical collaboration with Tempo
(company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and
Hanomag, later known as Tempo Matador in India.
 Standard Motor Products of India - technical collaboration from Standard has licence to
manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne
pickup variants.

Medium and Heavy Commercial Vehicles

 Vehicle Factory Jabalpur - started manufacturing Shaktiman trucks with technical


assistance from MAN SE of Germany. The trucks were the main logistics vehicle of
the Indian Army with several specialist variants. VFJ still is the sole supplier of B vehicles to
the Indian Armed Forces.
 Heavy Vehicles Factory - was established in 1965 in Avadi, near Chennai to produce
tanks in India. Since its inception, HVF has produced all the tanks of India, including
Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only
tank manufacturing facility of India.
 Tata Motors, Poona, then known as TELCO - technical collaboration with Mercedes
Benz to manufacture medium to heavy commercial vehicles both Bus and Trucks.
 Ashok Motors, later Ashok Leyland, Madras - technical collaboration with Leyland
Motors to manufacture medium to heavy commercial vehicles both Bus and Trucks. Ashok

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Motors also discontinued its Austin venture formed in 1948 to sell Austin A40 and retooled
the factory to make trucks and buses.
 Hindustan Motors - technical collaboration with General Motors to manufacture
the Bedford range of medium lorry and bus chassis.
 Premier Automobiles - technical collaboration with Chrysler to manufacture
the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
 Simpsons & Co, Madras - part of Amalgamations Group (TAFE Tractors)- technical
collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that
option until the 1980s.

1970 to 1983

However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and
the license raj, hampered the growth of Indian private sector.

The beginning of the 1970s saw some growth potential and most of the collaboration license
agreements came to an end but with option to continue manufacturing with renewed branding.
Cars were still meant for the elite and Jeeps were largely used by government organizations and
some rural belts. In commercial vehicle segments some developments were made by the end of
the decade to cater improved goods movements. The two-wheeler segment remained unchanged
except for to increased sales in urban among middle class. But more fillip was target towards
farm tractors as India was embarking on a new Green Revolution. More Russian and eastern bloc
imports were done to increase the demand.

But after 1970, with restrictions on the import of vehicles set, the automotive industry started to
grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still
remained a major luxury item. In the 1970s, price controls were finally lifted, inserting a
competitive element into the automobile market. [6] However, by the 1980s, the automobile
market was still dominated by Hindustan and Premier, who sold superannuated products in fairly
limited numbers.[7] During the eighties, a few competitors began to arrive on the scene.

The OPEC oil crisis saw increase need to installing or redesign some vehicle to fit diesel engines
on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and

25
Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks
on Pertol engines.

1984 to 1992

First generation Maruti 800 launched in 1984

From the end of the 1970s to the beginning of the 1980s saw no new models but the country
continued with 2 decade old designs forcing government to encourage and let more
manufacturers into fray.

In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory
Medak, near Hyderabad. It started manufacturingInfantry Combat Vehicles christened as Sarath,
the backbone of India's mechanised infantry. OFMK is still the only manufacturing facility of
ICVs in India. To manufacture the high-power engines used in ICVs and main battle
tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto
industry, the government established the Delhi Auto Expo. The 1986 Expo was a showcase for
how the Indian automotive industry was absorbing new technologies, promoting indigenous
research and development, and adapting these technologies for the rugged conditions of India.
The nine-day show was attended by then Prime Minister Rajiv Gandhi.

Post-1992 liberalisation

Tata Indica, launched in 1997

26
Mahindra Scorpio was launched in 2001

Maruti Suzuki Swift Dzire and its hatchback version are the largest selling cars in recent years in
India

Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South
Korea, were allowed to invest in the Indian market, furthering the establishment of an
automotive industry in India. 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. As India began to liberalise its automobile market in 1991, a number of
foreign firms also initiated joint ventures with existing Indian companies. The variety of options
available to the consumer began to multiply in the nineties, whereas before there had usually
only been one option in each price class. By 2000, there were 12 large automotive companies in
the Indian market, most of them offshoots of global companies.

Slow export growth

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and
neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe
(Hungary). After some growth in the mid-nineties, exports once again began to drop as the
outmoded platforms provided to Indian manufacturers by multinationals were not
competitive. This was not to last, and today India manufactures low-priced cars for markets

27
across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA
Group, Kia,Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due
to the competitiveness of the market, as well as the global economic crisis.

Emission norms

In 2000, in tune with international standards to reduce vehicular pollution, the central
government unveiled standards titled "India 2000", with later, upgraded guidelines to be known
as Bharat stages. These standards are quite similar to the stringent European standards, and have
been implemented in a phased manner, with the latest upgrade being implemented in 13 cities
and, later, in the rest of the nation.
Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kan
pur, Lucknow, Solapur, and Agra are the 13 cities where Bharat Stage IV has been imposed
while the rest of the nation is still under Bharat Stage III.

Local manufacture encouraged

India levies an import tax of 125% on electric cars, while the import tax on components such as
gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in
India rather than be imported as completely built units.

Manufacturing facilities

The majority of India's car manufacturing industry is evenly divided into three "clusters".
Around Chennai is the southernmost and largest, with a 35% revenue share, accounting for 60%
of the country's automotive exports, and home of the operations of Heavy Vehicles
Factory,Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan
Motors, Daimler, Caparo, Mini, and Datsun.

Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the western cluster, with a
33% share of the market. Audi,Volkswagen, and Skoda are located in Aurangabad. Mahindra
and Mahindra has an SUV and engine assembly plant at Nashik. General Motors, Tata
Motors, Mercedes Benz,Land Rover, Jaguar Cars, Fiat, and Force Motors have assembly plants
in the area.

28
The northern cluster is around the National Capital Region, and contributes
32%. Gurgaon and Manesar, in Haryana, are where the country's largest car
manufacturer, Maruti Suzuki, is based.

An emerging cluster is the state of Gujarat, with a manufacturing facility of General


Motors in Halol, and a facility for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki,
andPeugeot-Citroen plants are also planned for Gujarat.

Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are
other automotive manufacturing regions around the country.

Passenger vehicles

 Hindustan Motors Limited - Kolkata (Inactive)

Exports[edit]

Mahindra Scorpio in service withItaly's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with the
United Kingdom being India's largest export market, followed by Italy, Germany, Netherlands,
and South Africa.[80]

According to the New York Times, India's strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing
facilities of several automobile companies like Hyundai, Nissan, Toyota, Volkswagen,
and Maruti Suzuki.

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made in
India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by

29
2011. Similarly, US automobile company, General Motors announced its plans to export about
50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to set up a plant in India with an annual
capacity of 250,000 cars, for US$500 million. The cars will be manufactured both for the Indian
market and for export.[84] The company said that the plant was a part of its plan to make India the
hub for its global production business. Fiat Motors announced that it would source more than
US$1 billion worth auto components from India.

A Tata Safari on display in Poznań,Poland.

In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after
Japan (1.77m), Korea (1.12m) and Thailand (0.26m).

In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter
the Indian market and open a production plant in Andhra Pradesh that would have an annual
capacity of 100,000 vehicles, investing € 700M in the operation. PSA's intention to utilise this
production facility for export purposes however remains unclear as of December 2010.

The Maruti Ertiga, a model exported by Maruti Suzuki, India.

In recent years, India has emerged as a leading center for the manufacture of small
cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually
from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also
30
manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small
cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and
African markets, and is preparing to sell electric cars in Europe in 2010. The firm is planning to
sell an electric version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra &
Mahindra is preparing to introduce its pickup trucks and small SUVmodels in the U.S.
market. Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India, which will
market the product worldwide. Renault Nissan may also join domestic commercial vehicle
manufacturer Ashok Leyland in another small car project. While the possibilities for the Indian
automobile industry are impressive, there are challenges that could thwart future growth. Since
the demand for automobiles in recent years is directly linked to overall economic expansion and
rising personal incomes, industry growth will slow if the economy weakens.

Top 10 export destinations

31
INDIAN AUTOMOTIVE COMPANIES

Models currently manufactured by Indian companies

Maruti Swift in India. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation of Japan

Mahindra XUV500, one of India's best selling indigenously developed SUV

 Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster


 Force Motors (earlier known as Tempo): One
 Hindustan Motors: Ambassador
 Hradyesh: Morris Street
 ICML: Rhino Rx
 Mahindra: Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito
Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
 Premier Automobiles Limited: Sigma, RiO
 San Motors: Storm
 Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) Alto
K10, Alto800, WagonR, Swift, SwiftZire, Omni, Eeco, Gypsy,Ertiga, Celerio, Ciaz, Vitara
Brezza, Baleno, Ignis, S-Cross.
 Tata Motors: Nano, Indica, Vista, Indigo, Manza, Indigo
CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago.

32
Defunct Indian automotive companies

 Sipani Automobiles
 Standard Motor Products of India

Foreign automotive companies in India

Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of
General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies
that manufacture and market their products in India.

Vehicles currently manufactured or assembled in India

Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported
cars.

 Audi India: A3, A4, A6, Q3, Q5.


 BMW India: 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5.
 Chevrolet: Spark, Beat, Sail, Cruze, Tavera, Enjoy.
 Fiat India: Punto, Linea, Avventura, Urban Cross.
 Ford India: Figo, Ecosport, Endeavour, Figo Aspire.
 Datsun: Go, Go+, Redi-Go
 Honda Cars India Limited: Brio, Jazz, Amaze, BR-V, City.
 Hyundai Motor India: Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
 Isuzu: MU-7, V-Cross.
 Jaguar (Subsidiary of Tata Motors): XE, XF, XJ.
 Land Rover (Subsidiary of Tata Motors): Freelander, Range Rover Evoque.
 Mercedes-Benz India: C-Class, E-Class, M-Class, GL-Class, S-Class.
 MINI: Countryman.

33
 Mitsubishi (in collaboration with Hindustan Motors): Pajero.
 Nissan Motor India: Micra, Sunny, Terrano.
 Renault India: Pulse, Duster, Scala, Kwid, Lodgy.
 Škoda Auto India: Rapid, Octavia, Yeti, Superb.
 Toyota Kirloskar: Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
 Volkswagen India: Polo, Cross Polo, Vento, Jetta.

Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle
servicing to existing Opel vehicle owners.

Vehicles currently imported into India

Suzuki Kizashi. Kizashis are sold by Maruti in the Indian market

 Aston Martin: Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.


 Audi: A8 L, Q7, S5 Sportback, TT, RS 7 Sportback, RS 6 Avant, RS5, R8.
 Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying
Spur, Mulsanne.
 BMW:[153] 5 Series GT, 6 Series, 7 Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
 Bugatti: Veyron.
 Chevrolet: Trailblazer.
 Ferrari: California, 458 Italia, F12, FF.
 Fiat: Abarth 595 Competizone
 Ford: Mustang.
 General Motors: Hummer H2, Hummer H3.
 Gumpert: Apollo.
 Honda: Accord Hybrid.

34
Honda civic MugenRR

 Hyundai: Santa Fe.


 Isuzu Motors India:D-Max
 Jaguar (Subsidiary of Tata Motors): XJS, XK, F-Type.
 Koenigsegg: CCX, CCXR, Agera.
 Lamborghini:[164] Huracan, Aventador.
 Land Rover (Subsidiary of Tata Motors): Discovery 4, Range Rover Sport, Range Rover.
 Maserati: Quattroporte, Ghibli.
 Mercedes-Benz: Viano.
 MINI: Cooper, Cooper S, Convertible.
 Mitsubishi: Montero.

Mitsubishi Lancer Evolution X

 Nissan:GT-R.
 Porsche: 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
 Rolls Royce: Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
 SsangYong (subsidiary of Mahindra & Mahindra): Rexton.
 Toyota: Land Cruiser, Land Cruiser Prado, Prius.
 Volkswagen: Beetle.

35
 Volvo: V40, S60, S80, XC60, XC90.

Commercial vehicle manufacturers in India

Indian brands[edit]

 AMW
 Eicher Motors
 Force
 Hindustan Motors
 Mahindra & Mahindra
 Premier
 Tata Motors
 Hero Motocorp
 Bajaj Auto
 TVS Motor

Joint-venture (JV) brands[

 Ashok Leyland - originally a JV between Ashok Motors (owned by the Hinduja Group)
and Leyland Motors, now joint ventures between Ashok Leyland and Nissan Motors(Japan)
for LCV's; and John Deere (USA) for construction equipment.
 KaMAZ Vectra - A JV between Russia's KaMAZ and the Vectra Group
 MAN Force - A JV between Force Motors and MAN AG (Germany)
 SML Isuzu - originally, as Swaraj Mazda, a JV between Punjab Tractors and Mazda, now
53.5% owned by Sumitomo Group and with its current name since 2011.
 Tatra Vectra Motors Ltd - (defunct) Initial truck partnership with India by Vectra.
Replaced by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration
withBharat Earth Movers Limited.
 VE Commercial Vehicles Limited[182] - VE Commercial Vehicles limited - A JV between
Volvo Group and Eicher Motors Limited.
 Maruti Suzuki - A joint venture of Indian Maruti and Japanese Suzuki.

36
Foreign-owned brands

 J. C. Bamford (JCB) (Owned by British multinational corporation J. C. Bamford).


 BharatBenz (Owned by Daimler AG of Germany and affiliated with
Daimler's Fuso and Mercedes-Benz brands)
 Caterpillar Inc.
 DAF
 Hino
 Isuzu
 Iveco
 MAN
 Mercedes-Benz - manufactures luxury coaches in India.
 Piaggio
 Rosenbauer.
 Scania
 Tatra.
 Volvo.

Electric vehicle and Hybrid vehicle (xEV) industry

During April 2012, the Indian government planned to unveil the road map for the development
of domestic electric and hybrid vehicles (xEV) in the country. A discussion between the various
stakeholders, including Government, industry, and academia, was expected to take place during
23–24 February. The final contours of the policy would have been formed after this set of
discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in
developing a broad framework for the sector. Along with these ministries, auto industry
executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra &
Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task.
The Government has also proposed to set up a Rs 740 crore research and development fund for
the sector in the 12th five-year plan during 2012-17. The idea is to reduce the high cost of key
imported components such as the battery and electric motor, and to develop such capabilities
locally.

37
Electric car manufacturers in India

 Ajanta Group.
 Hero Electric.
 Mahindra.
 REVA now Mahindra Reva Electric Vehicles.
 Tara International.
 Tata Motors.

Defunct motor vehicle manufacturers of India

 Automobile Products of India or API - founded in 1949 at Bombay (now Mumbai), by


the British company Rootes Group, and later bought over by M. A. Chidambaram of the
MAC Group from Madras (now Chennai). The company manufactured Lambretta scooters,
API Three Wheelers under licence from Innocenti of Italy and Automobile ancillaries,
notably Clutch and Braking systems. API's registered offices were earlier in Mumbai, later
shifted to Chennai, in Tamil Nadu. The manufacturing facilities were located
in Mumbai and Aurangabad in Maharashtra and in Ambattur, Chennai. The company has not
been operational since 2002.
 Escorts Yamaha - in 1984 Escorts formed a joint venture with Yamaha to manufacture
motorcycles. In 2008 became India Yamaha Motor.
 Hero Motors is a former moped and scooter manufacturer based in Delhi, India. It is a
part of multinational company Hero Group, which also currently owns Hero
Motocorp(formerly Hero Honda) and Hero Cycles, among others. Hero Motors was started
in the 1960s to manufacture 50 cc two-stroke mopeds but gradually diversified into making
larger mopeds, mokicks and scooters in the 1980s and the 1990s. Noteworthy collaborators
and technical partners were Puch of Austria and Malaguti of Italy. Due to tightening
emission regulations and poor sales, Hero motors have discontinued the manufacture of all
gasoline powered vehicles and transformed itself into an electric two-wheeler and auto parts
manufacturer.
 Ideal Jawa - motorcycle company based in Mysore, sold licensed Jawa and ČZ
motorcycles beginning in 1960 under the brand name Jawa and later Yezdi.

38
 Standard - produced by Standard Motor Products in Madras from 1949 to 1988. Indian
Standards were variations of vehicles made in the U.K. by Standard-Triumph. Standard
Motor Products of India Ltd. (SMPI) was incorporated in 1948, [204] and their first product
was the Vanguard, which began to be assembled in 1949. The company was dissolved in
2006 and the old plant torn down.

39
COMPANY PROFILE

40
COMPANY PROFILE
Tata Motors

Tata Motors Limited

Type Public

Traded as BSE: 500570 (BSE SENSEX Constituent)


NSE: TATAMOTORS
NYSE: TTM

Industry Automotive

Founded 1945

Headquarters Mumbai, India

Area served Worldwide

Key people Natarajan Chandrasekaran(Chairman)


Chandrasekaran Ramakrishnan (President
and Group CFO)
Guenter Butschek (CEO)

Products Automobiles
Sport Cars
Commercial vehicles
Coaches
Buses
Construction equipment
Military vehicles
Automotive parts

Services Automotive design, engineering and


outsourcing services
Vehicle leasing

41
Vehicle service

Revenue ₹2.697 trillion(US$40 billion) (2016)[2]

Operating ₹216.5 billion(US$3.2 billion) (2016)


income

Profit ₹95.88 billion(US$1.4 billion) (2016)

Total assets ₹2.619 trillion(US$39 billion) (2016)

Total equity ₹763.5 billion(US$11 billion) (2016)

Number of 60,000 (2016)


employees

Parent Tata Group

Divisions Tata Motors Cars

Subsidiaries Jaguar Land Rover


Tata Daewoo
Tata Hispano

Website www.tatamotors.com

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinational automotive manufacturing company headquartered
in Mumbai, India, and a member of the Tata Group. Its products include passenger cars, trucks,
vans, coaches, buses, sports cars, construction equipment and military vehicles.

Tata Motors has auto manufacturing and assembly plants


in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Great Britain and Thailand. It has research and development centres in
Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain.
Tata Motors' principal subsidiaries purchased the English premium car maker Jaguar Land
Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle

42
manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture with Hitachi (Tata
Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which manufactures
automotive components and Fiat Chrysler and Tata branded vehicles.

TATA Tiago

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first


commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,
becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile.[4] In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired
the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and
purchasedJaguar Land Rover from Ford in 2008.

Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The
company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of
2016.[5]

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company.

43
TATA Hexa is a crossover vehicle launched in January 2017. This vehicle is the successor
of TATA Aria.

History

The first-generation(1998–07) Tata Indica; one of the best-selling cars in the history of the
Indian automobile industry

Tata Bolt

Tata entered the commercial vehicle sector in 1954 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 launched the Indica in 1998, the first fully indigenous Indian passenger car. Although
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

44
exported large numbers of the car to South Africa. The success of the 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, later renamed Tata Daewoo.

On 27 September 2004, Tata Motors rang the opening bell at the New York Stock Exchange 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 and 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-based Marcopolo, Tata Marcopolo Bus, to
manufacture fully built buses and coaches.[10]

In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer of the
Jaguar and Land Rover from Ford Motor Company.

In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo; the range went on sale in South Korea, South Africa, the SAARC countries, and the
Middle East at the end of 2009.

Tata acquired full ownership of Hispano Carrocera in 2009.

In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality Award.

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.[18]

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

45
In 2014, Tata Motors introduced first Truck Racing championship in India "T1 Prima Truck
Racing Championship".

On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the 22nd
floor to the fourth floor of the Shangri-La Hotel in Bangkok, where he was to attend a meeting of
Tata Motors Thailand.

On 2 November 2015, Tata Motors announced Lionel Messi as global brand ambassador at New
Delhi, to promote and endorse passenger vehicles globally.

On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as brand
ambassador for its commercial vehicles range.

On 9 March 2017, Tata Motors announced that it has signed a memorandum of understanding
with Volkswagen to develop vehicles for India's domestic market.

Operations

Tata Motors has vehicle assembly operations in India, Great Britain, South Korea, Thailand,
Spain and South Africa. It plans to establish plants in Turkey, Indonesia, and Eastern Europe.

46
TATA MOTORS CARS
Tata Motors Cars

The Tata Prima

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 four Union
Territories of India. It has the third-largest sales and service network after Maruti
Suzuki and Hyundai.

Tata LPT Trucks made at overseas plants

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, and Senegal. Tata has dealerships in 26 countries across 4 continents. Tata is present in
many countries, it has 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, South Africa, Oman, Kuwait, Qatar, Saudi Arabia,
United Arab Emirates, Bahrain, Iraq, Syria and Australia.

47
Tata Daewoo

The Tata Prima heavy truck on the roads of Lucknow

Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly Daewoo
Commercial Vehicle Company) is a commercial vehicle manufacturer headquartered in Gunsan,
Jeollabuk-do, South Korea, and a wholly owned subsidiary of Tata Motors. It is the second-
largest heavy commercial vehicle manufacturer in South 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 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.

Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and 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 such as Mercedes-Benz, Volvo, and Navistar into the Indian
market.

Tata Hispano

Tata Hispano Habit bus at Madrid Airport

48
Tata Hispano Motors Carrocera, S.A. was a bus and coach 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,[9] and purchased the remaining 79% for an undisclosed sum in 2009,
making it a fully owned subsidiary, subsequently renamed Tata Hispano. In 2013, Tata Hispano
ceased production at its Zaragoza plant.

Jaguar Land Rover

The Range Rover Evoque.


Jaguar Land Rover

Jaguar Land Rover PLC is an English premium automaker headquartered in Whitley, Coventry,
Great Britain, and has been a wholly owned subsidiary of Tata Motors since June 2008, when it
was acquired from Ford Motor Company of USA. Its principal activity is the development,
manufacture and sale of Jaguar Cars luxury and sports cars and Land Rover premium four-
wheel-drive vehicles.

Jaguar Land Rover has two design centres and three assembly plants in Great Britain. Under Tata
ownership, Jaguar Land Rover has launched new vehicles including the Range Rover
Evoque, Jaguar F-Type, the Jaguar XF, the Jaguar XE, the Jaguar XJ (X351) the second-
generation Range Rover Sport, the fourth-generation Land Rover Discovery, and the Range
Rover (L405).

TML Drivelines

TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the manufacture of
gear boxes and axles for heavy and medium commercial vehicles. It has production facilities at
Jamshedpur and Lucknow. TML Forge division is also a recent acquisition of TML Drivelines.
TML Drivelines was formed through the merger of HV Transmission and HV Axles .

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Tata Technologies

Tata Technologies Limited (TTL) is an 86.91%-owned subsidiary of Tata Motors which


provides design, engineering, and business process outsourcing services to the automotive
industry. It is headquartered in Pune (Hinjewadi) and also has operations in London, Detroit and
Thailand. Its clients include Ford, General Motors, Honda, and Tata Motors.

The British engineering and design services company Incat International, which specialises in
engineering and design services and product lifecycle management in the automotive, aerospace,
and engineering sectors, is a wholly owned subsidiary of TTL. It was acquired by TTL in August
2005 for ₹4 billion.

European Technical Centre

The Tata Motors European Technical Centre (TMETC) is an automotive design, engineering,
and research company based at Warwick Manufacturing Group (WMG) on the campus of
the University of Warwick in Great Britain. It was established in 2005 and is a wholly owned
subsidiary of Tata Motors. It was the joint developer of the World Truck.[38]

In September 2013, it was announced that a new National Automotive Innovation Campus would
be built at WMG at Warwick's main campus at a cost of £100 million. The initiative will be a
partnership between Tata Motors, the university, and Jaguar Land Rover, with £30 million in
funding coming from Tata Motors.

Joint ventures

Tata Marcopolo

Tata Marcopolo

A Tata Marcopolo bus in use inChandigarh, India

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Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%) and the Brazil-
based Marcopolo S.A. (49%). The joint venture manufactures and assembles fully built buses
and coaches targeted at developing mass rapid transportation systems. It uses technology and
expertise in chassis and aggregates from Tata Motors, and know-how in processes and systems
for bodybuilding and bus body design from Marcopolo. Tata Marcopolo has launched a low-
floor city bus which is widely used by transport corporations in many Indian cities. Its
manufacturing facility is based in Dharwad, Karnataka State, India.

Fiat-Tata

Fiat-Tata is an India-based joint venture between Tata and Fiat Automobiles which produces Fiat
and Tata branded passenger cars, as well as engines and transmissions. Tata Motors has gained
access to Fiat's diesel engine and transmission technology through the joint venture.

The two companies formerly also had a distribution joint venture through which Fiat products
were sold in India through joint Tata-Fiat dealerships. This distribution arrangement was ended
in March 2013; Fiats have since been distributed in India by Fiat Automobiles India Limited, a
wholly owned subsidiary of Fiat.

Tata Hitachi Construction Machinery

Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which
manufactures excavators and other construction equipment. It was previously known as Telcon
Construction Solutions.

51
PRODUCTS

For details of Tata Motors passenger cars, see Tata Motors Cars. For details of Land Rover
products, see Land Rover. For details of Jaguar products, see Jaguar Cars.

Commercial vehicles

The Tata TL

A Tata 407 water truck

A Tata Starbus

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Tata Motors trucks in Rajasthan, India

A loaded semi-forward Tata truck

TATA Semi-Forward Cab 1210SE Truck

TATA 1210 Series - long running production model

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Tata twin-axle lorry in South India

 Tata Ace
 Tata Ace Zip
 Tata Super Ace
 Tata TL/Telcoline/207 DI pickup truck
 Tata 407 Ex and Ex2
 Tata 709 Ex
 Tata 807 (Steel cabin chassis, cowl chassis, medium bus chassis, steel cabin + steel body
chassis)
 Tata 809 Ex and Ex2
 Tata 909 Ex and Ex2
 Tata 1109 (Intermediate truck/ LCV bus)
 Tata 1512c (medium bus chassis)
 Tata 1515c/1615 (medium bus chassis)
 Tata 1612c/1616c/1618c (heavy bus chassis)
 Tata 1618c (semilow-floor bus chassis)
 Tata 1623 (rear-engined low-floor bus chassis)
 Tata 1518C (Medium truck) 10 ton
 Tata 1613/1615c (medium truck)
 Tata 1616/1618c (heavy duty truck)
 Tata 2515c/2516c,2518c (heavy duty 10 wheeler truck)
 Tata Starbus (branded buses for city, intercity, school bus, and standard passenger
transportation)
 Tata Divo (Hispano Divo fully built luxury coach)
 Tata CityRide (12- to 20-seater buses for intracity use)
 Tata 3015 (heavy truck)
54
 Tata 3118 (heavy truck) (8×2)
 Tata 3516 (heavy truck)
 Tata 4018 (heavy truck)
 Tata 4923 (ultraheavy truck) (6×4)
 Tata Novus (heavy truck designed by Tata Daewoo)
 Tata Prima (the World Truck designed by Tata Motors and Tata Daewoo)
 Tata Prima LX (stripped-down version of Tata Prima)
 Tata Prima (Racing Trucks)
 Tata Ultra (ICV Segment)
 Tata Winger - Maxivan

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 LPTA 1615 TC (4×4)
 Tata LPTA 1621 TC (6×6)
 Tata LPTA 1615 TC (4×2)
 Tata Landrover 1515 F
 TATA SUMO 4*4
 Tata Xenon
 Tata 207

Tata Motors proposed overhaul of armoured fighting vehicles and infantry main combat vehicles
in 2015. The inter-ministerial committee was chaired by Secretary in the Department of
Industrial Policy and Promotion (DIPP) approved most of the proposals from the defense
Manufacturing sector in India.

55
Electric vehicles

Tata Motors has unveiled electric versions of the Tata Indica passenger car powered by TM4
electric motors and inverters, as well as the Tata Ace commercial vehicle, both of which run on
lithium batteries.

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.

Notable vehicles

Tata Nano

Tata Nano is often cited as the world's most affordable car

The Nano was launched in 2009 as a city car intended to appeal as an affordable alternative to
the section of the Indian populace that is primarily the owner of motorcycles and has not bought
their first car. Initially priced at ₹100,000 (US$1,500), the vehicle attracted a lot of attention for
its relatively low price.

Tata Ace

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Tata Ace was India's first mini truck

Tata Ace, India's first indigenously developed sub-one-ton minitruck, was launched in May
2005. The minitruck 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 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% to 28,537 units due to the rising demand
for Ace. The Ace was built with a load body produced by Autoline Industries. By 2005, Autoline
was producing 300 load bodies per day for Tata Motors.

Ace is still a top seller for TML with 500,000 units sold by June 2010. In 2011, Tata Motors
invested Rs 1000 crore in Dharwad Plant, Karnataka, with the capacity of 90,000 units annually
and launched two models of 0.5-T 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 throughPolaris Industries' Global Electric Motorcars division.
[53]
In Sri Lanka, it is sold through Diesel and Motor Engineering (DIMO) PLC under the name
of DIMO Batta.

Tata 407

The Tata 407 is a light commercial vehicle (LCV) that has sold over 500,000 units since its
launch in 1986 In India, this vehicle dominates market share of the LCV category, accounting for
close to 75% of LCV sales.

TATA MOTORS

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The largest passenger automobile and commercial vehicle manufacturing company of India Tata
Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company),
has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New
York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top
10 wealth creators in India, with manufacturing facilities in the towns of Jamshedpur, Lucknow,
and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the
flagship company known as Tata and sons group. He commands 22000 employees working in
three plants as well as other regional and zonal offices across the length and breadth of India.
Tata motor’s passenger cars still need to reach acceptable international requirements. The
company commands an imposing 65% share of the domestic commercial vehicle market and is
trying to modernize this segment. The financial business of Tata motors was separated into a
subsidiary company in sep. 2006, where it recorded a strong financial performance during the
last 5 year period. From year 2005-2009, the profits of the company went up at a CAGR of
36.4%, to attain Rs. 331, 525 million in 2008from Rs. 95, 731 Million in 2003. By floating two
rights issues at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are
offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores,
the so called “A” share would have different voting and dividend rights, for every such 6 shares
held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an
early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for
Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”.
As TATA MOTORS is regarded as one of the best fuel efficient cars. Hence I conducted a study
on the consumer perception about small cars. Firstly, I took three brands of small cars; Zen
estilo,
Indica and Santro for a comparative study of small car segment.
Later I went through the process of filling the questionnaires, to know exactly what the
customer’s of small cars perceived about their cars. Tata motors were established on September
1, 1945, originally for the manufacture of Steam Locomotives at Jamshedpur.

58
All the cars taken for the sample showed that the consumers perceived them as almost same in
all the attributes like safety, comfort and luxury. But, at the end the research was limited due to
small sample size, small sample area and time constraints.

TELCO (TATA Engineering and Locomotive Company)


 Multinational Corporation.
 Headquarters in Mumbai.
 India's largest passenger automobile and commercial vehicle manufacturing company.
 World's 19th largest automaker.
 Sales: 19,654.41cr.
 Stock price: Rs. 347

In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It
had also developed the capability of designing, testing and manufacturing such vehicles.
Leading commercial vehicle manufacturer and has significant presence in the multi-utility and
passenger car segments.

59
With the Launch of Tata Indica, a Euro 2 compliant vehicle is the country’s first indigenously
designed, developed and manufactured passenger car.
With the launch of Tata nano, Tata has penetrated the market to its extreme by making a car
available for Rs. 132000 only. This is the cheapest car in India till date and with the
announcement of its diesel variant it has made potential buyers to eagerly wait for it.

Products of TATA Motors

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[1] Passenger cars and utility vehicles

[2]Commercial vehicles

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[3] Military vehicles

62
[4] Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indica
2002 Tata Indica
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante
2009 Tata Prima

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Tata Indicia Xeta

Webster's Dictionary
circa 2050 Indica: A
successful Indian product
of truly Indian origins.
The word is derived from the first automobile to be designed, manufactured and sold
successfully by an Indian company. Several variants of its original hatchback design were
spawned and eventually over one million vehicles based on the platform were sold. The diesel-
engine vehicle sold in large numbers across the nation and even has the notable achievement of
having been exported to several countries across the globe. The diesel-engine Indica received
notable appreciation from all around, whereas the petrol-fuelled versions played second fiddle on
the sales graphs.
TATA Motors has launched a new version of its small car. Christened Indica V2 Xeta, the
petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmpl under standard
test conditions. The Xeta's engine, delivering 70 PS, is far more powerful than the earlier
version. Besides common black and silver, the car is available in three flashy hues. The Xeta is
touted be among the first few small cars to sport beige interiors. Besides these compelling
features, the pricing is also attractive, at Rs 2.94 lakh for the AC model. The Xeta range is priced
between Rs 2.69 to Rs 3.65 lakh ex-showroom Delhi. Customers may avail themselves of loans
of up to 90 per cent from select financiers over a seven-year period with EMIs as low as Rs
4,471.
We can have some inside view of this wonderful car:

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65
CURRENTS FACTS
 Today Advertising is one of the most common ways to make car buyer or car enthusiast
aware of the new car with special promotion price. Another more important way of
advertising is to create an image or brand image. Take BMW Z3 for example, it was
introduced in 1996 and shortly the car has been used in the famous James Bond movie. Over
the years Tata Motors have been successful in creating their brand image.
 The packaging, innovations, and quality control. Tata Motors provide many innovative
features to attract car lover. One of these innovations is the Tata Safari 4X4 Dicor that has
“Reverse Guide System”. A weather-proof camera is fixed to the rear car to help the driver
while reversing the car.
 There are various factors to determine a price of a car. These factors are such as market
condition (it can’t be too low or too high with the prices of same vehicle from competitors, it
has to be at par), cost incurred to build a car, profit by company, dealer profit. Giving
discount every month and special promotion for certain type of vehicle also one of the strong
strategy use by Tata Motors. Discount can be made from Company’s profit or from dealer’s
profit at certain range.
 Place of dealership does play an important role. The channel of distribution, physical
location, and dealership method of distribution and sales is generally adopted. The
distribution of vehicle must be in a very systematic way, from the plant to dealership and to
end user. This is not only in India itself but also to the world-wide dealership.

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OUTLOOK OF INDUSTRY

 The industry witnessed a change in demand dynamics in last few years. The demand for
LCVs in the <=3.5 tones segment is rising at the cost of demand in 5 to 7.5 tones category,
while demand in 7.5 to 12 tones segment and 16.2 to 25 tones segment is booming at the cost
of demand in 12 to 16.2 tones segment. Demand for trailers of >35.2 tones is witnessing a
surge while demand for semi-trailers in 26.4 to 35.2 tones segment is suffering. This
structural shift in demand dynamics is due to the evolution of Hub & Spoke model of
distribution, which is now adopted by transportation players because of improved road
infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic
congestion issues. According to the Hub & Spoke model, HCVs plying over the highways to
transport goods to different states and districts, while MCVs are used in distributing goods to
different cities and the last leg of distribution in intra city is done by using <=3.5 tonner
vehicles

GLOBAL OPERATIONS
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

67
Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester
and 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 Marco polo, a global leader in body-building 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.
The Government of India announced an automobile policy in December 1997. The policy
required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in
equity if they wished to set up manufacturing projects in India. It also forced them to take on
export obligations to fund their auto part imports and required them to submit to a schedule for
increasing the share of locally made parts in their cars. Mere car assembling operations were not
welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set
fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be considered a part of the

68
minimum foreign investment made by it in an auto-making subsidiary in India. The move is
aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The
policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010.
The policies adopted by Government will increase competition in domestic market, motivate
many foreign commercial vehicle manufactures to set up shops in India, whom will make India
as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough
competition in near future, which might affect its growth negatively.

69
ORGANIZATION STRUCTURE OF TATA MOTORS

70
REASONS WHY ONE SHOULD JOIN
TATA MOTORS
 Rewarding career

As an Tata Motors employee, one will help people realize their dreams by fulfilling their
financial goals. The difference employee makes to their lives is more rewarding & satisfying
than one can ever imagine.

 A successful team

By joining Tata Motors, employee becomes a part of the country’s finest team of Tata Motors is
the No.1 private player. Recently it has been adjudged the Best for yr 2015

 Attractive remuneration

Tata Motors offers one of the best remuneration systems in the industry that not only takes care
of employee ’s current earnings, but also guarantees earnings for the future. What’s more,
employee can set his own income targets with a potential to earn as much as one wants for the
rest of his life.

 Independence

As employee, one will be a true entrepreneur. One has the freedom to be his own boss, work for
himself, choose his own clients & make his own money. All of this, without making any initial
capital investment.

 World-class training

Tata Motors provides you with the best-in class training system, since that is what differentiates
Tata Motors employees from the rest. Even if one doesn’t have previous experience in selling,
their multi-dimensional training program conducted by their qualified in-house training
personnel, will make you a specialist in life insurance sales. Their training program is conducted.

 Commitment to career agency system

Their Commitment to career agency system means that, they support their employee s & their
efforts not just today but at every stage of their business. They believe in encouraging their

71
employee s to strive towards the highest level of success, throughout their careers. Infact,
depending on the performance, they offer a management career option with the company.

 Infrastructure support

They have invested in creating a state-of-the-art infrastructure at each of their offices. Employees
have access to the necessary tools, technology & people support that will enable you to build a
profitable long-term business.

 Sales & marketing support

Tata Motors supports their employee s with innovative sales & marketing tools. The sales,
promotions & marketing collaterals that they provide will help the employee s take their business
to new heights.

72
RECRUITMENT PROCEDURE AT TATA
MOTORS
At the beginning of every year, Tata Motors certain strategic objectives for achieving its annual
business targets. Based on this, each center of the organization plans out its manpower
requirement and then the Finance Department analyzes the costs involved in recruiting the
required manpower. After discussions with various Circle Heads, the recruitment plan is finally
set in motion.
1. The recruitment process at Tata Motors essentially starts with the Manpower Requisition
Form as per the manual provided by the Company. This form details the type of vacancy
that is existing for a particular department and the number of personnel and their
qualifications required for the job.
External sources of recruitment used at Tata Motors
a. Recruitment through consultants
Manpower consultancies are an important source for providing prospective candidates.
b. Trainee Program Campus Recruitment
The primary objective of recruiting students from campus is to groom young and
fresh talent to fit into the organization’s culture through a well planned learning
process. This resource pool can be utilized to contribute a new perspective to the
technical and non-technical aspects of business.
c. Job Portals
Job portals like www.naukri.com , www.monster.cometc are also a source of
recruitment at Tata Motors .

Internal sources of recruitment used at Tata Motors


a. CV Data Bank
The internal databank of cv’s is an important source of profiles, especially with
regard to local candidates. After the applications are received, they are screened
and short-listed for further processing.

73
b. Employee Referral
Employee referral is an efficient and cost effective way of attracting qualified
candidates. Employees not only get the referral fee, but they also play a role in
shaping the company’s future.

c. Outsourced Employee
Hiring an outsourced employee simplifies the induction process as the employee
is acquainted with the job complexities and the organization culture. The term
“outsourced employees” refers to the employees working in contract basis. These
employees are on the pay roll of an external agency and are primarily employed at
entry level positions.

d. Internal Job Posting


This method is used for identifying qualified internal candidates. It has the
advantage of redeploying people already acquainted with the company’s business
processes and culture and hence, job training can be reduced.

2. Screening of applications is done and the appropriate applicants are sorted out and interview
calls/aptitude tests arranged at the appointed dates.

3. Filling up of the Interview Assessment Form and undergoing the Psychometric


Assessment Test is an important aspect of the recruitment process. Here the following
parameters of the candidate are tested and ratings are given:
 Overall Appearance & Self Presentation
 Education & Past Work Experience
 Communication Skills
 Customer Focus
 Result Orientation
 Initiative with Speed
 Self Confidence
 Passion for Achievement

74
The Psychometric Assessment Test evaluates the candidate on the CRISP parameters:
C - Customer Focus
Implies demonstrating a knack for anticipating customer needs, servicing them and
constantly seeking new ways to surpass customer expectation so as to build equity with
respect to business objectives.

R - Responsibility for Results


This implies demonstrating a result focused approach rather than activity orientation,
having the ability to create a high performance work climate, drive high and stretched
goals and relentless sly focus on value creation, taking the ownership and responsibility
for one’s own actions and coming up as a self motivated individual focusing on
deliverables and deliveries.

I - Initiative with Speed


This implies demonstrating a desire to take the first step, thinking new and ahead and
being swift without compromising on quality, being creative and innovative and having
the willingness to experiment and take risks, proactively engaging others to create new
value in whatever is being done.
S - Self Confidence with Consciousness
This implies demonstrating the ability to handle complex and adverse situations, without
being overawed by complexity and mounting hazards, always being aware of the
consequences of one’s own behaviors and desired outcomes from a particular situation
without getting confused.

P - Passion for Achievement


This implies demonstrating zeal relentlessly to surmount handicaps, bottlenecks, and
constraints to achieve goals, converting perceived threats in to opportunities and taking
every assignment to its logical conclusion.
The scores for each parameter are depicted in the following manner

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Very Low: Implies that the test taker has restricted access to this competency and he is
normally expected not to demonstrate the competency at the work place and expression
of positive behavioral indicators is likely to be rare. The test taker has limited ability to
utilize this competency.
Low: This means that the test taker has limited access to this competency and his
performance on this competency is more likely to be conditional (if conditions are
favorable, he/she may exhibit a satisfactory level on this competency). The test taker has
less than adequate ability to transform decisions related to this competency into action.
Moderate: The test taker has moderate ability to this company and is normally expected
to demonstrate a medium level on this competency under most situations. A higher level
can be reasonably expected under favorable conditions.
Strength: The test taker has very good ability to utilize the competency especially in
well defined areas. However, there are specific situations, especially under pressure, that
can interfere with the translation of his/her ability into decisions and actions. His
behavior may be characterized by frequent display of positive behavioral indicators of
this company.
Towering Strength: The test taker has excellent ability to translate his competencies
into decisions and actions thereby reducing the potential for errors and mistakes. The test
taker has very good ability to translate his competencies into measurable action steps and
he/she consistently displays positive behavioral indicators of this competency.

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OBJECTIVE OF THE STUDY

77
OBJECTIVE OF THE STUDY
The main objectives of this project are:
 To study the recruitment procedure of employee used at Tata Motors
 To analyze the effectiveness of this very important function in terms of development of the
organization and the individual.

The business report covers two main areas of the organization strategy for recruitment and
selection. These areas are the recruitment processes and selection processes. Encompasses those
two areas are the specific steps that are used to implement the organization recruitment and
selection process. All steps were assessed and issues were found in the following:

 Recruitment process

 Employment agencies

 Vacancy promotion

 Selection process

 Interview structure

 Interview environment

 Orientation

 Timing of orientation

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RESEARCH METHODOLOGY

79
RESEARCH METHODOLOGY
This Research involves the collection of primary data through survey approach because data is to
be collected only by meeting people of different age groups, different segments and different
working groups who are interested in doing work for earning money. Survey helps to know that
which type of persons’ profile has been more interested in earning money.

Approached people through various means. We did cold calling, targeted on various segments.
Invited people for COPs, a meeting that talks about the career opportunity being provided and
the benefits that employee can avail once he starts with his work.

We mainly approached people ones who seemed to be on a look out for a job.

Once people are short listed and recruited, we follow a series of procedures through which they
are finally selected. The procedure is known as the selection process explained in detail.

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RESEARCH INSTRUMENT

The research instrument used here for collecting primary data is questionnaire. This has provided
flexibility in substantial Information from diversified people. This survey helped to know that
how people be an employee in a organisation.

SAMPLING PLAN:

 Sampling unit: 30

(Qualified people of age above 18 yr )

 Sample size : 30

 Sampling Procedure

Random sampling

 Big sample size helps in getting more reliable result & information about the
respondents preferences for being as an employee.

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CONTACT METHOD:

Following contact methods through which information was gathered:

 In depth interview

IN-DEPTH INTERVIEW:

After collecting the data I made an appointment with respondents for their detailed
interview to check whether the candidate have zeal to earn money by making relationship
with customers. Their qualification and work experience was also checked.

DATA COLLECTION:

 Primary Data: Data collected through market survey and cold calling.
 Secondary Data: Data collected from magazines, yellow pages and from
other indirect sources.

Primary Data:

For collecting data I directly approached to persons of different profile with


questionnaire. With the help of pilot I took the relevant information out of them.

Primary data is the kind of data, which is collected by the investigator himself for the purpose of
the specific study. The data such collected is original in character. The advantages of this method
of collections authentic.

For Primary data we did Market surveys where we approached people through questionnaire,
used posters & banners (many people came enquiring & we got questionnaires filled on which
calls were made later, we also did cold calling on random numbers telling people about the
career opportunity & those that seemed interested were called to the office for formal meeting.
The method of sampling was the random convenient sampling method.

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MARKET SURVEY

We carried out various surveys where we approached people and offered them a service
opportunity that Tata Motorswas offering. We approached people who appeared, and showed
interest in Tata MotorsTheir name & contact numbers were taken & later on they were called and
invited for a COP (Career Opportunity Path), at the office premises.

The various places where surveys were conducted:

At the above places, we approached people with a questionnaire taking their information.
Through that we also asked if they were satisfied with their current earnings. Also since how
many years was a person residing in Lucknow All this helps in judging who will be a better
person to approach first and who fulfills the criteria we were looking out for the most.

SECONDARY DATA: First I segmented the market of candidates of required profile


for being as an employee . Then I took data containing their information from other
sources.

These data was taken When an investigator uses the data that has been already collected by
others is called secondary data. The secondary data could be collected from journals, Reports,
internet and various publications. The advantages of the secondary data can be it is economical,
both in terms of money and time spent.

For secondary data we used various sources like, CA’s directory, Yellow pages, references &
also data from various internet sites like naukri.com, monster.com where there are few free
resumes available. We were also given data by our respective B.A.’s to work on.

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DATA ANALYSIS AND
INTERPRETATION

84
DATA ANALYSIS AND INTERPRETATION

The data gathered was analyzed qualitatively. The analysis was aimed to figure the ideal type of
employees to make the distribution chain more effective. Data getting from questionnaire
categorized into four category as:

 People who were interested in doing job & not satisfied with their earning.

 People who were interested in doing job & satisfied with their earning.

 People who were not interested in doing job & satisfied with their earning.

 People who were not interested in doing job & not satisfied with their
earning.

All the data taken from the survey classified into three segment. Findings changes according to
profile.

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DATA ANALYSIS AND INTERPRETATION

FINDING 1
Reasons of being Employee with Tata Motors
Income 14%

Career progression 14%

Recognition 5%

Flexibility 3%

All the above 64%

Interpretation:

Since the above finding shows that most of the employee with Tata Motors have a mix
reason for being an employee so, the dominating feature will be that one which forms the major
portion of the mix reaction Thus, Tata Motors is able to satisfy the two major desires of its
employee s those are money and growth.

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FINDING 2
Annual Business Provide by employee

0-35000
5%

35000-70000
14%

MORE THAN 70000


81%

Interpretation:

A majority of employee s are able to deliver a good results and giving good figures. About 81%
are giving business more than Rs. 70,000 a year but it is not last it needs some proper attention to
develop it more.

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Findings 3
Reasons of Liking with Tata Motors
Integrity 27%

Good Working Environment 11%

Customer-friendly policies 32%

Can work all over the country 30%

Interpretation:

The finding is able to tell that the Employee Liking Tata Motors because in Tata Motors.
Customer friendly policy and can work all over the country. Its benefit of the Employee s and
for the company.

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Findings 4

Working Environment
Very Good
5%

Good
32%

Average
39%

Poor
24%

Interpretation:

The finding shows the most Employee Perceptions for the Tata Motors Good working
environment and somebody are says very good environment. It is benefits for the company then
they can provide the better facility for the Employees.

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Findings 5

Durations of Working with Tata Motors

0-1 yrs 41%

1-2 yrs 42%

2-3 yrs 14%

More than 3 yrs 3%

Interpretation:

In the Tata Motors maximum Employees are working between one to two years. The findings
show the employee’s growth in the company.

90
1. People interested in joining Tata Motors
yes 45%

no 24%

cant say 31%

Interpretation:

Above graph shows 45% respondent said that they interested in joining Tata Motors, 24% not
interested, but 31% can't said.

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2 . Age group of the employee
Year

15-18 0%

19-25 36%

26-30 30%

31-40 26%

More than 40 8%

Interpretation:

Above graph shows that max no of employee s are at the age group of 19 to 25 year.

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5. What is your last academic qualification?
12th 24%
Graduate 52%
Post Graduate 8%
MBA 16%
C.A Nil

Interpretation:

Above graph shows 24% last academic qualification is 12th, 52% graduate, 8% post graduate,
16% MBA.

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6. Are you satisfied with Tata Motors?
Yes 85%
No 15%

Interpretation

Above graph shows 85% respondent satisfied with Tata Motors but 15% not satisfied.

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7. What inspire you for hard working?

Motivational session 28%


Joint field visit 12%
Commission incentive and reward 70%

Analysis:

Above graph shows 28% respondent said that they inspire for hard working is Motivational
session, 12% joint field visit, and 60% are commission, incentive and reward.

95
FINDINGS

96
FINDINGS
The data shows that to recuiting a employee varies according to person’s profile. Most of
the unemployed person want to get a job with salary.

Unemployed don’t have any kind of job. They just want to do something which can give them a
position in corporate world. Since the work profile of an employee is to interacting with the
people and convincing them for purchasing.

Private employees whose salary within Rs 15,000, are highly interested to become an employee.
They just want to make money. Age also matters here, most of the private employee who were
showing their interest. Hence they have the higher percentage among all the employee.

The Tata Motorsa multinational concern is busy in recruiting and selecting employees tactfully,
skillfully and with expertise. In view of the competition, especially in the private sector, the Tata
Motors Makes efficient sales team effort with expertise to create excellent customer relationship
management with great online support and personal contacts.

The Tata Motors is one of the most prominent companies with expertise and experience.
Employee are extensively trained in understanding customers needs with a dedicated work force
behind it, the Tata Motors success story is a result of the unique vision of the company.

Hence, recruitment of employees is one of the most important jobs. Inefficient employees are
burden for the company. Hence only the capable people who have desire to earn and work hard
are selected.

The intensive market research shows that most of the respondents are showing their interest in
Tata Motors. They are looking for high commission slab and marvelous career growth path.

During my research report I took the help of the above described things. Consequently I became
able to recruit maximum employee.

97
RECOMMENDATION AND
SUGESTION

98
RECOMMENDATION AND SUGGESTION
New following suggested techniques & their implementation
 Market survey for doing job in fastest growing sector, conducted in different region in
Lucknow
 New flexible tele-calling script based on data collected by survey. It changes
according to person’s profile.
 Full exhibition of posters showing the benefits of being a employee.
 Presentation to visitors has done one by one.
 Advertisement in print media.
 SMS to mobile holders about job.
 New designed posters and banners.
 References
 Sticking the banners within the office and outside the office which shows the extra
benefit for becoming employee of Tata Motors

Utilization of following sources for attracting more people towards Tata


Motors

Print Media: Advertisements were given out in the classifieds section of the leading
Newspapers like Hindustan Times and Times of India stating the opportunity available and
interested people were asked to send in their resumes.
SMS: No’s of the probable prospects were taken from the classifieds sections and a SMS was
sent to them starting the opportunity.
References: We also took References from the people we interviewed regarding whom they
thought would be the best suited and willing to work and we then contacted them.
Posters & Banners: We had got posters printed stating the carrier opportunity available and
posters were put up at strategic places We also had got Banners made stating the opportunity
available to have an earning and stood at strategic places like bus stops and public places. To
increase the job satisfaction level of the employee the company should concentrate 'mainly on
the commission, incentive and reward structure rather then the motivation session and joint field
visit.

99
LIMITATIONS

100
LIMITATIONS
 Most of the result that is spelt out has been of qualitative aspect.

 Research had to be cut short because of limited time and working hours.

 Sample size was restricted by the guide to 30, which might lead to improper findings from
the date gathered.

These 8 weeks at Tata Motors have taught me a great deal. Since it was my first experience of
working, I initially had my inhibitions but all of them went away very soon.

Interacting with people, knowing their ideas & way of thinking had been quiet interesting. I now
have a slightly better understanding about people & how they behave. I met a number of people
& each of them was so different.

I have learnt a lot about the art of communication after interacting with different sets of people.

I also have better knowledge about the Tata Motors & its working.

101
CONCLUSIONS

102
CONCLUSIONS

The today’s scenario signals that there is a lot of potential for the growth of technology as the
people are becoming more & more Concerned about the safety & security of themselves & their
loved ones This increasing awareness & concern about the need for cement requires the presence
of expert people who can guide & advice people be an employee in Tata Motors& suggest them
the products that fits their needs perfectly. An Employee is the one who can take up this
responsibility & help people in this It will not only be beneficial for the society but it will also
give him an opportunity to grow, to earn & achieve self-satisfaction. And with a backup of a
reputed company like Tata Motors , there seems no barrier in achieving this. In the end, I would
like to say that it was an amazing learning experience to be a part of Tata Motors

103
BIBLIOGRAPHY

104
BIBLIOGRAPHY
Books
 MAMORIA C.B personnel management ,2000, Himalaya publishing house, New Delhi
 Prof P.C Tripathi ,Human Recourse Development , Himalaya publishing house, New
Delhi
 P.SUBA RAO Essentials Of Human Recourse Management And Industrial Relations
 R.S. DWIVEDI Managing Human Recourse
 Human Recourse week Magazine
 Kotler Philip, “Marketing Management” Eleventh Edition.

Websites :-
 www.google.com
 Information Brochure of Tata Motors
 Product Manuals of Tata Motors

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QUESTIONNAIRE

106
QUESTIONNAIRE
1. Personal Information

Name:

Sex: M/ F

Adders:..................................................………………………………..

Material status:

(a) Single...........

(b) Married.................

Age group.. . ... . . .. (a) 15-18 (b) 19-25 (c) 26-30 (d) 31-40

(e) more than 40

2. What is your last academic qualification?

12th ( ), Graduate ( ), Post Graduate ( )

Others___________________________

3. Are you joined in this job in Tata Motors

Yes ( ), No ( )

5. At present you are working in job

Yes ( ), No ( )

6. If you are doing any other job?

Yes ( ), No ( )

7. Are you preferred job in S.S. Developer?

Yes ( ), No ( )

8. Are you satisfied about commission and incentive structure of Tata Motors ?

Yes ( ), No ( )

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9. What inspire you for hard working?

A. Motivational session ()

B. Joint field visit ()

C. Commission, incentive and reward ()

11. Do you think that achieving of target and amount was easy for you?

Yes ( ), No ( )

1. If yes, then what factor made it easy?

A. Your own network and capability ( )

B. Market Demand ()

12. What are the things you like in your organization?

a. For commission and Incentive Structure

b. For Job Opportunity

c. For Good Working Environment and Management Support

d. For Good Reputation of Tata Motors

108

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