Tata Motors: Assignment Product Design (Mec-25)

Download as pdf or txt
Download as pdf or txt
You are on page 1of 19

ASSIGNMENT

PRODUCT DESIGN (MEC-25)

TATA MOTORS

Shirish
2016UME4041
Introduction
Tata Motors Limited, formerly Tata Engineering and Locomotive
Company (TELCO), is an Indian multinational automotive manufacturing
company headquartered in Mumbai, Maharashtra, India. It is a part of Tata
Group, an Indian conglomerate. 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 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.

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 1988 with the launch of the TataMobile
followed by the Tata Sierra in 1991, becoming the first Indian
manufacturer to achieve the capability of developing a competitive
indigenous automobile. 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
purchased Jaguar 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 265th on
the Fortune Global 500 list of the world's biggest corporations as of 2019.

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman


of the company Tata Group. Tata Motors increases its UV market share to
over 8% in FY2019.
History
Tata Motors was founded in 1945, as of locomotive manufacturer. Tata
Group 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 sport utility vehicle
based on the Tata Mobile platform. Tata subsequently launched the Tata
Estate (1992; a station wagon design based on the earlier Tata Mobile),
the Tata Sumo (1994, a 5-door SUV) and the Tata Safari (1998).

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
industries. A newer version of the car, named Indica V2, was a major
improvement over the previous version and quickly became a mass
favourite. Tata Motors also successfully exported large 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, Ratan Tata, the Chairman of 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.

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.

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".

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 8 March 2017, Tata Motors announced that it has signed a


memorandum of understanding with Volkswagen to develop vehicles for
India's domestic market.

On 3 May 2018, Tata Motors announced that it sold its aerospace and
defense business to another Tata Group Entity, Tata Advanced Systems, to
unlock their full potential.

On 29 April 2019, Tata Motors announced a partnership with Nirma


University in Ahmedabad to provide a B.Tech. degree programme for
employees of its Sanand plant.
Products
Tata Motors has a portfolio of automotive products, ranging from
sub-1 ton to 49 ton gross vehicle weight (GVW) trucks (including
pickup trucks) and from small, medium, and large buses and
coaches to passenger cars. The company's segments include
automotive, and others, which include information technology (IT)
services, construction equipment manufacturing, machine tools and
factory automation solutions, high-precision tooling and plastic and
electronic components for certain applications, and investment
business.

The company's passenger cars include the Indica, the Indica Vista,
the Indigo and the Indigo Marina. Jaguar produces four car lines: XK,
XF, XJ and X-Type. They manufacture a number of utility vehicles
(UV), including the Sumo, and the sports utility vehicle (SUV), Tata
Safari. Also, they manufacture a variety of light commercial vehicles
(LCVs), including pickup trucks, trucks and buses with GVW of
between 0.7 ton and 7.5 tons. This also includes the Ace, a mini-
truck with a 0.7 ton payload, the Magic, a passenger variant for
commercial transportation and the Winger. They also manufacture a
variety of medium and heavy commercial vehicles (M&HCVs), which
include trucks, buses, dumpers and multi-axled vehicles with GVW of
between 9 tons to 49 tons.
For the scope of this assignment, we will only be focussing on the
passenger vehicles that TATA motors currently produces under the
Turnaround Tata 2.0 plan. These include:
Tata Tiago (2016–present)
Tata Tigor (2017–present)
Tata Hexa (2017–present)
Tata Nexon (2017–present)
Tata Harrier (2018–present)
Tata EVision (2020–present) (Future Model)
Tata Altroz (2019–present) (Future Model)
Tata Buzzard (2019–present) (Future Model)
Tata H2X (2021–present) (Future Model)

Product

Specifications
Specifications of Tata Tiago
ARAI Mileage 27.28 kmpl
Fuel Type Diesel
Engine Displacement
1047
(cc)
Max Power (bhp@rpm) 69bhp@4000rpm
140Nm@1800-
Max Torque (nm@rpm)
3000rpm
Seating Capacity 5
TransmissionType Manual
Boot Space (Litres) 242
Fuel Tank Capacity 35
Body Type Hatchback
Service Cost (Avg. of 5
Rs.6,454
years)

Features of Tata Tiago


Power Steering
Power Windows Front
Anti Lock Braking
System
Air Conditioner
Driver Airbag
Passenger Airbag
Automatic Climate
Control
Fog Lights - Front
Alloy Wheels
Specifications of Tata Tigor
ARAI Mileage 24.7 kmpl
City Mileage 17.43 kmpl
Fuel Type Diesel
Engine Displacement
1047
(cc)
Max Power (bhp@rpm) 69bhp@4000rpm
140Nm@1800-
Max Torque (nm@rpm)
3000rpm
Seating Capacity 5
TransmissionType Manual
Boot Space (Litres) 419
Fuel Tank Capacity 35
Body Type Sedan
Service Cost (Avg. of 5
Rs.10,120
years)

Features of Tata Tigor


Power Steering
Power Windows Front
Anti Lock Braking
System
Air Conditioner
Driver Airbag
Passenger Airbag
Automatic Climate
Control
Fog Lights - Front
Alloy Wheels
Specifications of Tata Hexa
ARAI Mileage 17.6 kmpl
City Mileage 9.12 kmpl
Fuel Type Diesel
Engine Displacement
2179
(cc)
Max Power (bhp@rpm) 153.86bhp@4000
400Nm@1750-
Max Torque (nm@rpm)
2500rpm
Seating Capacity 7
TransmissionType Manual
Boot Space (Litres) 128
Fuel Tank Capacity 60
Body Type MUV
Service Cost (Avg. of 5
Rs.11,967
years)

Features of Tata Hexa


Power Steering
Power Windows Front
Anti Lock Braking
System
Air Conditioner
Driver Airbag
Passenger Airbag
Automatic Climate
Control
Fog Lights - Front
Alloy Wheels

Specifications of Tata Nexon


ARAI Mileage 21.5 kmpl
City Mileage 18.5 kmpl
Fuel Type Diesel
Engine Displacement
1497
(cc)
108.5bhp@3750rp
Max Power (bhp@rpm)
m
260Nm@1500-
Max Torque (nm@rpm)
2750rpm
Seating Capacity 5
TransmissionType Automatic
Boot Space (Litres) 350
Fuel Tank Capacity 44
Body Type SUV
Service Cost (Avg. of 5
Rs.4,446
years)

Features of Tata Nexon


Power Steering
Power Windows Front
Anti Lock Braking
System
Air Conditioner
Driver Airbag
Passenger Airbag
Automatic Climate
Control
Fog Lights - Front
Alloy Wheels

Specifications of Tata Harrier


ARAI Mileage 17.0 kmpl
Fuel Type Diesel
Engine Displacement
1956
(cc)
138.1bhp@3750rp
Max Power (bhp@rpm)
m
350Nm@1750-
Max Torque (nm@rpm)
2500rpm
Seating Capacity 5
TransmissionType Manual
Boot Space (Litres) 425
Fuel Tank Capacity 50
Body Type SUV
Service Cost (Avg. of 5
Rs.13,190
years)

Features of Tata Harrier


Power Steering
Power Windows Front
Anti Lock Braking
System
Air Conditioner
Driver Airbag
Passenger Airbag
Automatic Climate
Control
Fog Lights - Front
Alloy Wheels

Market Value
and Market
Segments

Auto sector has witnessed the lowest quarterly performance across


all segments and lowest monthly sales till now in FY19. However, the
year to date numbers for FY 19 has shown a growth of 9.6 per cent
and calendar year 2018 has ended with a 13 per cent growth in the
face of growth in 2W and CV segment and the performance of PV in
the first half or first two quarters. Year-end discounts have helped
show some recovery despite an overall de-growth in December
2018. A little bit of easing of funding and favorable fuel price levels
can improve sentiments in the first quarter of 2019 or Q4 of FY 2019
But the market sentiment seems to affect the few carmakers as
seven out of 16 carmakers posted positive growth. Out of which top
four carmakers mainly Maruti Suzuki, Hyundai India, Mahindra &
Mahindra, and Tata Motors accounted for over 82 percent of the
Indian passenger vehicle market.
Among all the largest gainer was Tata Motor which posted 24.13
percent growth at 2,37,217 units in the calendar year 2018
recording a market share of 7 per cent from earlier 5.9 percent in
2017. Riding on the success of Nexon and Tiago.

While the largest passenger vehicle manufacturer Maruti Suzuki


recorded 8.05 percent at 17,31,450 units recording 51 percent
market share in the calendar year 2018. Similarly, Ford and Toyota
witnessed growths of 10.91% and 8.54%, respectively.

However, the South Korean carmaker Hyundai India which launched


its much-awaited hatchback Santro witnessed a slow growth of 4.30
percent at 550002 units in 2018. It also saw a decline of 0.2 percent
in market share to 16.2 per cent.
Sales and
Marketing
Strategy
Tata Motors Commercial and Passenger Vehicles Business sales in the
domestic market witnessed a drop of 34% at 32,938 units compared to
50,100 units sold over last year as subdued demand continued in July
2019. The cumulative sales for the domestic market (April 2019 – July
2019) decline by 23% at 164,817 units as compared to 214,679 units sold
over the same period last year.
Domestic – Commercial Vehicles
Tata Motors’ Commercial Vehicles (CV) domestic sales in July 2019 at
22,453 units registered a drop of 36% compared to 34,817 units sold last
July. Retail sale is estimated to be higher than wholesale by 38%, thereby
reducing the dealer stock considerably. Company focused on system stock
reduction, in light of significant contraction in demand, and impending
transition to BSVI towards the end of the year, necessitating consumption
of entire BSIV stock by year-end. We will continue to focus on reducing the
system stock, including dealer stock in interest of their profitability and
working capital reduction.
The market continues to exhibit subdued demand sentiment as customers
are postponing purchases given the poor freight availability, the falling
freight rates impacting their viability. The slowing economy, excess
capacity created on account of increased axle load norm, slowdown in
execution of infrastructure projects over past few quarters, drop in
discretionary consumption, and poor liquidity conditions in tight financing
environment have led to severe contraction in total industry volumes
across segments.
 The M&HCV truck segment July 19 sales at 5,465 units has declined
by 46% over July 18.

 I&LCV truck segment sales in July at 3,167 units dropped by 21%


over last July.

 The SCV and pickup segment registered sales at 10,937 units in July
2019, a drop of 30% over last July.

 The commercial passenger carrier segment July’19 sales at 2,884


units registered a drop of 42% over July 2018. Leaving aside the small
commercial passenger segment, sales was at 2700 units in July 2019 a
marginal growth of 2.7% over July 2018.

Amidst challenging current environment our overall progress for BSVI


transition is on track, in terms of product readiness and certification, as
well as field preparedness
Domestic – Passenger Vehicles
In the first Quarter, the company launched its strategy under the new
paradigm, with the focus on retail sales and help in reducing dealer
stocks. In July 2019 despite the challenging market condition, the
Passenger Vehicles retail sales was marginally better than whole sales,
resulting in a slight reduction in the dealer stock. We worked on increasing
our retail sales by increasing our footprints. In April-July 2019, we added
48 new sales points across country, which includes 30, added in July 2019.
Dealer network has added over 2600 sales executives in our quest to
increase sales. The offtake declined by 31%, at 10,485 units, as compared
to units sold in July 2018 which is in line with the decline on the industry
(31%), and as a result market share remained same as last year. The
cumulative sales in the domestic market for the fiscal (April 2019 -July
2019) were at 47,430 units, a drop of 32%, compared to units sold, in the
same period last year.
This month was also very special for us as we witnessed two important
milestones – the roll out the 100,000th Nexon and the celebration of
10,000 customers for the Harrier with the launch of its new dual tone
version.
**The base for July 2018 has been adjusted by 1796 nos due to
rationalization of TMLD.
Exports
The company’s sales from exports (from CV and PV) in July 2019 was at
3,374 units, lower by 32% over July 2018. The focus has been to correct
the stocks in SAARC, Middle East and key markets in Africa. Amidst drop in
total industry volumes, we managed to maintain & increase market share
in most of our focus markets

Tata Motors does not follow a single marketing approach or formula


but it believes that all members of the community should be
served. Brand targets crowd from the rural part to the metros with
its offerings varying from NANO to Jaguar Land Rover segment.

It targets anyone above 4 Lakh p.a. salary, millennial employed as


professionals, managers and all those looking to switch from 2-
wheeler to 4-wheeler. The age bracket for brand’s offering varies
from 21-65 years with all Middle class. Upper middle class, High
class and Affluent class in its target category.

Tata Motors offers products such as Tata ACE a mini truck mainly
used for agriculture transport purpose, Tata NANO for the middle
class, Tata Indica and Indigo for commercial purposes and Jaguar in
the high-class segment thus creating the image that there’s
something for everyone in its huge line of offerings.

Differentiated targeting strategy is used by Tata Motors to target the


customers and satisfy their needs and wants.

Tata has a very wide range of products it has passenger cars, utility
vehicles, Trucks, Commercial passenger Carriers And Defence
Vehicles
The prices of Tata motors are generally affordable acceptable by the
general public at large. Tata always have something for the lower
class people with Nano being their trump card. 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.

Tata Motors has an extensive dealer network covering Indian


and International markets. Wherever you are, there is a Tata Motors
Sales and Service dealership close to you. 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.

Mission – “We innovate with passion, mobility solutions to enhance


the quality of life”

Vision – “As a high-performance organization, we are by, FY2019

 Among the top 3 in the global CV and domestic PV

 Achieving Sustainable financial performance

 Delivering exciting innovations”

Tagline – “Connecting Aspirations”.

Customer
Reviews
For Tiago:
“Got the ECU flashed with the latest code. The engine has suddenly
come alive with much better in-gear acceleration. No more
complaints about the petrol engine except for slight vibrations at
idle. Mileage is fortunately unchanged
The car is now seriously fun to drive with good driving dynamics and
steering feel. It is good for the city as well as the highway.
Would heartily recommend this car to anyone looking for a small
hatchback.”

“I bought this car last November. Still i drive up 12 thousands kms.


It's very good in milage and smooth driving. Now my Tiago is one of
the member in our family. My car giving highest milage above the
tata company referee in advertisement. Air-conditioning and audio
systems are working in well.”

For Nexton:

“Only last month I purchased the Tata Nexon XMA petrol variant. I
have done only 1200 Kms. I had been to Agra from Delhi very next
day of delivery. It was an exhilarating experience as this is my first
automatic car earlier I had all manual cars right from Fiat (1975
model) to I20( 2013) but the automatic is out of this world. It was
very smooth running on economic mode and gave a mileage of
15kms while going and 16+ on returning. Though it is too early to
judge a car. I am quite pleased with its performance and its spacious
interiors. The dealership was very helpful and courteous. “

“Tata Nexon is a beautiful petrol car. It has clocked around 9000 km


and its giving me a mileage of 14+ in city drive and 19+ on
highways. Thanks to its 6-speed gear box and drive modes. Ground
clearance is the best in this category hence it's quite stable on
bumpy roads. Overall this is my 5th Tata vehicle. I've driven all
diesel ones from Tata Sump, Tata Mobile 207 Indica V2, and Indica
Vista D90. I found the best as of low noise levels and vibrations. At
last Tata has left its love for the big windshields and door glasses
which makes this car AC work beautifully well. Harman music system
is a quite acceptable sound quality of the speakers is very good.
Interiors are quite decent with no tacky stuff. Rover input is clearly
visible inside. If only if Tata can improve the aftersales Services at
there authorized dealerships and that professional attitude Tata will
go a big big way. As reliability for me with Tata is not an issue.”
For Harrier:
“All are you know about the power of the engine and the strength of
LAND ROVER. I want to start the review by giving the information
about similarities between Land Rover Discovery and Tata Harrier.
First, about length, breadth and wheelbase both have almost the
same in these parameters. The harrier project is completed by
engineers of the company of Tata and Land rover also. So Tata
Harrier has world-class technology. The base of the car is derived by
its platform. Tata Harrier is made on the OMEGA R platform. Land
Rover Discovery is made on the DA platform. Many similarities in
both platforms. Tata Harrier has good build quality by high strength
steel. So it is affordable compare to land Rover which has a body of
aluminum. It has many ride features of changing modes. If we talk
about style and design, it looks good and gorgeous. It has led
indicators. It gives fillings of premium by its interior. It has an 8-inch
touch screen with an android and apple car play, polished AC vents,
good upholstery of seats, rear seats comfortness, JBL speakers. It
has good rides in the city and highway. It gives the feeling of a true
SUV. It is expensive and the best package at this price by TATA
MOTORS.”

“Tata Harrier is an excellent highway cruiser! Getting an average of


20+ kmpl on highways and 12+ kmpl in the city. Gears are a bit
notchy especially from first to second. You have to be careful about
the huge blindspot on the A-pillar. Overall, it is an excellent car and
loves it every time, I take it out of my garage! Way to go, Tata!”

You might also like