PROJECT REPORT ON

AUTOMOTIVE INDUSTRY
MARUTI SUZUKI V/S TATA MOTORS

V/s
QUANTITATIVE TECHNIQUES BASED DECISION MAKING GROUP NUMBER - 4

SUBMITTED BY: PRIYANKA KUMARI (2011147) ROHIT SRIVASTAVA (2011160) SAVI AHUJA (2011172) SHWETA MANOHAR (2011186)

SUBMITTED TO:Dr. S. MAHESWARAN

PGDM (2011-13) SECTION - D

TABLE OF CONTENT

S. NO.

CONTENT

PAGE NO.

1.

INTRODUCTION INDUSTRY COMPANIES

2.

OBJECTIVE OF THE STUDY

3.

RESEARCH DESIGN SOURCE OF DATA PERIOD TOOLS AND TECHNIQUES

4.

ANALYSIS AND FINDINGS

5.

IMPLICATION

6.

FUTURE SCOPE OF THE STUDY

7.

BIBLIOGRAPHY

INTRODUCTION
ABOUT THE INDUSTRY:-

The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations. The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%). According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

ABOUT THE COMPANIES:-

MARUTI SUZUKI INDIA

Market Share: Passenger Vehicles 46.07% Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. 1.

It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in New Delhi

Tata Motors Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45% Tata Motors Limited is Indias largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4 million vehicles in India.

A COMPARATIVE VIEW ON THE TWO COMPANIES:Maruti Suzuki Founded In 1981 (as Maruti Udyog Limited) 1945 JRD Tata Mumbai 123,133 crore 9274 crore Tata Group Tata motors

Key Person(s) Mr. Shinzo Nakanishi, M.D and CEO Headquarters Revenue Net Income Parent New Delhi 37,522.4 crore 2,288.6 crore Suzuki Motor Corporation

Objectives of Study:The main objectives of the study concerning the two major companies are to provide with: Determine the mean sales turnover of both the companies. Determining of the measure of central tendency and variability of the data of both companies.

Testing of the Hypothesis stating that the means of both the companies are equal. 2.

Data of Maruti Suzuki Ltd. and Tata Motors:-

Maruti Suzuki Ltd. Year

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Sales Turnover
(in Rs. Cr.) Earnings per Share (in Rs.)

Tata Motors
Sales Turnover (in
Rs. Cr.) Earnings per Share (in Rs.)

9231.3 9203.8 11392.5 13458.2 14898.8 17358.4 21200.4 23381.5 32174.1 40590.5

78.91 5.07 18.76 29.55 41.16 54.07 59.91 42.18 86.45 79.21

8710.05 10700.66 15298.47 20262.61 23490.55 31089.69 33123.54 28538.2 38364.1 52135.97

-1.98 9.38 22.96 34.19 39.94 49.65 52.63 19.48 39.26 28.55

Calculations:Maruti Suzuki Ltd. Tata Motors Earnings per share 29.406 300.7842 17.34313 58.97820408
Sales Turnover

Measures
Mean Variance Standard Deviation Coeff. Of Variation

Earnings per share 49.527 742.477 27.24843 55.01732789

Sales Turnover

19288.95 106933812.5 10340.88064 53.61038648

26171.384 178389811.2 13356.26487 51.03385005

3.

TEST OF HYPOTHESIS Let N be the population sizes be the population mean Let a sample of size n is drawn from the population Let x be the sample mean. Step 1: Null hypothesis: Ho : 1 = 2 i.e. mean sales turnover of Maruti Suzuki is equal to the mean sales turnover of Tata Motors Alternative hypothesis: H1 : 1 2 i.e. mean sales turnover of Maruti Suzuki is not equal to the mean sales turnover of Tata Motors Step 2: Level of significance, =5% Step 3: Test statistic t x1 - x2 )-(1 - 2 )]/ (s12/n1 )+(s22/n2)] t ~> t(n1+n2-2) degrees of freedom

Since 1=2, our test statistic becomes as under: x1 - x2 )/ s2(1/n1 )+(1/n2)] x1-x2=-6882.434 By assuming the population variance to be equal for both the populations, the combined variance can be estimated as: s2=[(n1-1)s12+(n2-1)s22]/(n1+n2-2) s2=142661811.8 s2(1/n1 )+(1/n2)]= 11944.11201
t=-0.576219814

Step-4:

The tabulated value is obtained from T-table at specific level of significance

corresponding to the degrees of freedom and denoted as te.

te=2.101

Step 5: Inference If |t|<te, reject the null hypothesis and conclude that mean sales turnover of Maruti Suzuki is not equal to the mean sales turnover of Tata Motors.

4.

Analysis:Based upon the measures of Central Tendency and Variability.

The mean of the Earning per share of both the companies has been calculated and tabulated above which shows Maruti Suzuki giving a better earnings per share better than Tata Motors, but when Standard deviation and Coefficient of variation are taken into account, we can infer that the EPS of Maruti Suzuki varies more than Tata Motors implying Tata Motors shares to be more stable source of earning for the Shareholders, hence a better choice. The mean Sales Turnover of Maruti Suzuki is lower than the mean Sales Turnover of Tata Motors but the data of Maruti has less Coefficient of Variation than that of Tata Motors, hence providing more credibility to the statistics of Maruti Suzuki and its Sales Turnover.

Based upon the Testing of Hypothesis.

We conducted a Two-Tail hypothesis testing with our Null Hypothesis as the mean sales turnover of Maruti Suzuki equal to the mean sales turnover of Tata Motors. According to the testing procedure we come to a conclusion that according to the samples taken, the mean sales turnover of Maruti Suzuki does not equal to the Sales Turnover of Tata Motors.

5.

Future Prospects:-

6.

BIBLIOGRAPHY
BOOKS REFERRED: STATISTICS FOR BUSINESS AND ECONOMICS BY ANDERSON, SWEENEY, WILLIAMS STATISTICS FOR MANAGEMENT BY GERALD KELLER

WEB REFRENCES: Marutisuzuki.com Tatamotors.com Moneycontrol.com Wikipedia.org

7.