Manegerial Economics

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| Jamnalal Bajaj Institute of Management Studies|
| |
| |

Sachin Patil

Roll No: 56

Managerial Economics

Projection of Sales of Tata Motors - Commercial Vehicles from Year

2012-2020

Sachin Patil

Roll No: 56

Managerial Economics

Projection of Sales of Tata Motors - Commercial Vehicles from Year

2012-2020

This is to certify that
Sachin Patil, Roll no.: 56,
a student of Masters in Information Technology
from Jamnalal Bajaj Institute of Management Studies
has done his II semester project as a part of Managerial Economics under the guidance of Professor Varsha Malwade .
The project work entitled “Projection of Sales of Tata Motors - Commercial Vehicles from Year 2012-2020” embodies the work done during his II semester.

Date: 16th May, 2012
Professor: Varsha Malwade

Contents
ACKNOWLEDGEMENT3
Background of Auto Industry in India4
Tata Motors - Commercial Vehicles (CV)5
Correlation & Regression7
Correlation – Tata Motors CV Sales v/s GDP,IIP and FDI9
High Correlation of Gross Domestic Product (GDP) with CV Sales10
High Correlation of Foreign Direct Investment (FDI) and CV sales11
High Correlation of Index of Industrial Production (IIP) and CV sales12
Regression Model – For Forecasting Vehicle Demand for 2012-202013
Forecasting Framework14
Regression Model – Forecasting Equation14
Goodness of Fit for forecasting model15
Forecasting CV demand from 2012 to 202016
Conclusion17

* ACKNOWLEDGEMENT

Through this acknowledgement, I express my sincere gratitude towards all those people who have helped me in the preparation of this project, which has been learning experience. I appreciate the co-operation by the management and staff of ‘Tata Consultancy Services’ for having given me the opportunity to work in their office and providing me the learning experience of administration and management.

Background of Auto Industry in India
* Two decades ago, India opened its doors for multinational automobile companies allowing them to penetrate the market, modernize the Indian transportation picture, and make it beneficial to end-users. * Since then, several firms have established their production units in the country, offering a wide range of vehicles to the vast population. * The Indian commercial vehicle market has grown by leaps and bounds, and unquestionably, the future is bright as the production and sales are reaching new heights * With increasing public & private spending on infrastructure and higher penetration of financing facilities, it is expected that the growth trend of commercial vehicle sales and production will continue in the coming years * There are many factors that drive the growth of Commercial Vehicles industry, macro and micro economic. GDP, IIP, FDI, good traffic transportation, growth among user industries, investment and financing options, etc. are some important factors which determines the future of Commercial Vehicles industry * There is high correlation with some factors (GDP, IIP, FDI, etc.) which are used for the forecasting the sales in the future. Some factors are volatile and unpredictable (Inflation, Interest rate, etc.) thus, difficult to forecast.

Tata Motors - Commercial Vehicles (CV)
More than half a century of impressive presence and Tata Motors continues to provide India with top of the line commercial vehicles. Tata Motors is India's largest and among the world's top five medium and heavy commercial manufacturers. Tata Motors has over 130 models providing a wide variety of commercial transport solutions. A vehicle for every application, from 2 ton LCVs to 40 ton tractor trailers and buses that can seat 16 people to as many as 67, from Tippers to Special Purpose Vehicles, to 6x4 and 4x4 off road vehicles and Defense vehicles. Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,23,133...
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