The automotive industry is an extremely reliable indicator of economic growth; quite obviously, its growth boosts the economy's performance. The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997, industry that was licensed, controlled and restricted in the early years of independent India and had limited contribution to the economy, currently contributing about 5% of the GDP and it is targeted to grow five fold by 2016 and account for over 10% of India's GDP. This report shows how two big players in the Indian automotive sector, namely TATA Motors and Hyundai Motors India manage their sales and distribution system, the pace of growth I had mentioned earlier led us to select this sector and these companies as they are among the best performers. While one company was a truck manufacturer until the early nineties and the other a late entrant in the mid nineties as a subsidiary of a Korean Industrial conglomerate. I felt there would be a big diversity between both these companies in the distribution and sales, diversity in the form of models and structures. Part A of the project is data collated from mainly secondary sources but it serves as the groundwork, giving the reader a good idea about both of the companies. Part B has all the data and findings which have been also collected from the secondary source it shows that what is the difference in both the companies in terms of their Distribution Network, Channel Structure, Transportation Method, Sales Targets, Order Processing, and Service Network.
[...] Sales Structure for TATA Motors Description:- In the sales structure of TATA Motors where dealers are under the “Dealers account manager” who take care the all transactions with dealers and also makes the target for the dealers according to instructions from the regional managers. The regional managers are directly responsible under the supervision of Vice President of Sales and Business Development, the Vice President is also responsible to the Business Development Head who take cares the all activities related development of the business from the country as a whole, the Business Developer could be the head of the particular unit or under the particular unit of the TATA Motors. [...]
[...] In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand at the Bangkok Motor Show 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. [...]
[...] Sales Targets The dealers are normally assigned targets based on their area of operation and their sales based on the corresponding month of the previous month. The sales targets are not only assigned keeping in mind the region but also the festive season and not to forget the financial year. During the festival season the company assigns little higher targets because this time of the year is considered very auspicious and people buy cars in this season. Similarly during Shraad the company assigns low targets to the dealers as the people don't buy cars or any form of metal during this time. [...]
[...] It is also available in small towns also but only in a limited area TATA motors takes good care of its customers by getting a White form, a customer satisfaction form and a sales satisfaction form filled by its customers. This insures the customer they haven't made a mistake by selecting the car. COMPARISON From the above facts of both the companies we can see the difference in both the companies on the bases of following parameters. Distribution Network:- Hyundai: It Includes the C&F agents between dealers and plant where the dealers are select by the company on their abilities and these dealers are responsible to make the product available for the dealers and end consumer. [...]
[...] Sales and Distribution system in Auto Sector:- The sales and distribution system is a necessary part of any industry. In automobile sector where all the transaction depends upon the availability of the product which shows how the effective distribution network is necessary for this sector. The production and the reach depends upon the sales of numbers of units of any industry which again shows the need of any manufacturing sector so it is necessary to keep the effective sales and distribution system in any industry. [...]
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