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SEMINAR I REPORT AND VIVA
ON
TATA MOTORS
Submitted in partial fulfilment for the award of the degree
Master of Business Administration
Chhattisgarh Swami Vivekanand Technical University, Bhilai
Submitted To,
Mahendra Ikhar
ASST.PROF.
MBA,SSITM
Submitted By
Pawandeep Singh Saini
MBA lllrd sem
Shri Shankaracharya Institute of Technology and Management
Junwani, Bhilai (C.G.) - 490020
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Tabl
ofcont
nt
1. Co pan p ofil .. 32. Histo
. 5
3. Tatas Global Presence . 84. Tata Motors History .. 95. Tata Motors Globaloperations . 1 26. Present andfuture challen
es .. 13
7. Ti eline ofthe develop ent . 158. Co pany Analysis .. 189. SWOT Analysis . 1910.Findin s and Interpretations . 2211.Reference . 23
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Co
pany profile
TATA GROUPS
Tata companies operate in seven business sectors: communications and information technology,
engineering, materials, services, energy, consumer products and chemicals. They are, by and large, based in
India and have significant international operations. The total revenue of Tata companies, taken together,
was $70.8 billion (around Rs325,334 crore) in 2008 -09, with 64.8 per cent of this coming from business
outside India, and they employ around 363,039 people worldwide. The Tata name has been respected in
India for 140 years for its adherence to strong values and business ethics.
Every Tata company or enterprise operates independently. Each of these companies has its own board of
directors and shareholders, to whom it is answerable. There are 28 publicly listed Tata enterprises and they
have a combined market capitalisation of some $60 billion, and a shareholder base of 3.5 million. The major
Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals,
Tata Tea, Indian Hotels and Tata Communications.
Tata Steel became the sixth largest steel maker in the world after it acquired Corus, later renamed as Tata
Steel Europe. Tata Motors is among the top five commercial vehicle manufacturers in the world and has
recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in
the US, UK, Hungary, Brazil, Uruguay and China, besides Indi a. Tata Tea is the second largest branded tea
company in the world, through its UK -based subsidiary Tetley. Tata Chemicals is the worlds second largest
manufacturer of soda ash and Tata Communications is one of the worlds largest wholesale voice carrier s.
In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining
international recognition. Brand Finance, a UK -based consultancy firm, recently valued the Tata brand at
$9.92 billion and ranked it 51st
among the world's Top 100 brands. BusinessWeekmagazine ranked Tata 13th
among the '25 Most Innovative Companies' list and the Reputation Institute, US , recently rated it 11th on
its list of world's most reputable companies.
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Founded by Jamsetji Tata in 1868, Tatas early years were inspired by the spirit of nationalism. It pioneered
several industries of national importance in India: steel, power, hospitality and airlines. In more recent
times, its pioneering spirit has been showcased by companies such as TCS, Indias first software company,
and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently
unveiled the worlds lowest-cost car, the Tata Nano.
Tata companies have always believed in returning wealth to the society they serve. Two-thirds of the equity
of Tata Sons, the Tata promoter company, is held by philanthropic trusts that have created national
institutions for science and technology, medical research, social studies and the performing arts. The trusts
also provide aid and assistance to non-government organisations working in the areas of education,
healthcare and livelihoods. Tata companies also extend social welfare activities to communities around
their industrial units. The combined development -related expenditure of the trusts and the companies
amounts to around 4 per cent of the net profits of all the Tata companies taken together.
Going forward, Tata is focusing on new technologies and innovation to drive its business in India and
internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata
company), which in 2008 was ranked the worlds fourth fastest. Anchored in India and wedded to
traditional values and strong ethics, Tata companies are building multinational businesse s that will achieve
growth through excellence and innovation, while balancing the interests of shareholders, employees and
civil society.
.
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History
Tata Group is one of India's largest and most respected business groups. Tata Group's name is synonymous
with India's industrialisation. The Group gave India her first steel plant, hydro -electric plant, inorganic
chemistry plant and created a reservoir of scientific and technological manpower for the country. Its Trusts
have instituted the Tata Institute ofSocial Sciences in 1936; India's first cancer hospital, the Tata Memorial
in 1941, and in 1945, the Tata Institute of Fundamental Research, which became the cradle of India's
Atomic energy program. Today, Tata Group comprises 96 operating companies in seven business sectors:
information systems and communications; engineering; materials; services; energy; consumer products;
and chemicals. The Group has operations in more than 54 countries across six continents, and its
companies export products and services to 120 nations.
Jamsetji Nusserwanji Tata laid the foundations of Tata Group when he started a private trading firm in
1868. In 1874, he set up the Central India Spinning Weaving and Manufacturing Company Limited and thus
marked the Group's entry into textiles. In 1887, Jamsetji Tata formed a partnership firm, Tata & Sons, with
his elder son Sir Dorabji Tata and his cousin Ratanji Dadabhoy Tata. His younger son Sir Ratan T ata joined
the firm in 1896. In 1902, the Indian Hotels Company was incorporated to set up the Taj Mahal Palace and
Tower, India's first luxury hotel, which opened in 1903. The Tata Iron and Steel Company (now known as
Tata Steel) was established to set up India's first iron and steel plant in Jamshedpur. The plant started
production in 1912. In 1910, Tata Hydro -Electric Power Supply Company, (now Tata Power) was set up. In
1917, Tata Oil Mills Company was established to make soaps, detergents and cooking oils. In 1932, Tatas
entered aviation sector with the establishment of Tata Airlines. In 1939, Tata Chemicals, presently, the
largest producer of soda ash in India, was established. In 1945, Tata Engineering and Locomotive Company
(renamed Tata Motors in 2003) was established to manufacture locomotive and engineering products. In
1954, India's major marketing, engineering and manufacturing organisation, Voltas, was established. In
1962, Tata Finlay (now Tata Tea), one of the largest tea producers, was establ ished. In 1968, Tata
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Consultancy Services (TCS), India's first software services company, was established as a division of Tata
Sons. In 1970, Tata McGraw-Hill Publishing Company was created to publish educational and technical
books. In 1984, Titan Industries, a joint venture between the Tata Group and the Tamil Nadu Industrial
Development Corporation (TIDCO), was set up to manufacture watches. In 1996, Tata Teleservices (TTSL)
was established to lead the Group's foray into the telecom sector. In 1998, Tata Indica, India's first
indigenously designed and manufactured car, was launched by Tata Motors. In 2000, Tata Tea acquired the
Tetley Group, UK. This was the first major acquisition of an international brand by an Indian business group.
In 2001, Tata entered into insurance business in joint venture with Tata AIG. In 2007, Tata Steel acquired
Corus the fifth largest steel company in the world
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TATA GROUPS HISTORICALACHIEVEMENTS
During the more than five decades that JRD Tata was at the helm, the Tata Group expanded regularly into
new spheres of business. The more prominent of these ventures were
Tata Chemicals (1939) Tata Motors and Tata Industries (both 1945) Voltas (1954), Tata Tea (1962 ) Tata Consultancy Services (1968) Titan Industries (1984) In 1996, Tata Teleservices was set up to tap into Indias burgeoning telecom market in 1998, the Indica, Indias first indigenously made car, was successfully launched In 2002, the Group acquired VSNL, Indias top international telecom service provider In 2004, Tata Consultancy Services went public in the largest private sector initial public offering in
the Indian stock market
In 2008, the trailblazing Tata Nano was unveiled.
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TATAS GLOBAL PRESENCE
The Tata groups revenues for 2007-08 from its international operations were $38.3 billion, whichconstitutes 61 per cent of its total revenues.
Exports from India remain the cornerstone of the Tata groups international business, but differentTata companies are increasingly investing in assets overseas through greenfield projects (such as in
South Africa, Bangladesh and Iran), joint ventures (in South Africa, Morocco and China)
Acquisitions are a crucial component of the global expansion of Tata enterprises. Over the past eightyears the group has made overseas acquisitions of $18 billion.
While individual Tata companies have differing geographical imperatives, the Tata group is focusingon a clutch of priority countries, which are expected to be of strategic importance in the years
ahead.
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TATA MOTORS
History
Tata Motors Li
ited (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM), is a multinational corporation
headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA
Engineering and Locomotive Company). Tata Motors has a consolidated revenue of USD 16 billion after the
acquisition ofBritish automotive brands Jaguar and Land Rover in 2008.
It is India's largest company in the automobile and commercial vehicle sector with upwards of 7 0%
cumulative Market share in the Domestic Commercial vehicle segment, and a midsized player on the world
market with 0.81% market share in 2007 according to OICA data. The OICA ranked it as the 19th largest
automaker, based on figures for 2007 and the second largest manufacturer of commercial vehicles in the
world. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus
manufacturer. In India, Tata ranks as the leader in every commercial vehicle segment, and is in the top 3
makers of passenger cars. Tata Motors is also the designer and manufacturer of the iconic Tata Nano, which
at INR 100,000 or approximately USD 2300, is the cheapest car in the world.
Established in 1945, when the company began manufacturing locomotives, the company manufactured its
first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors
is a dual-listed company traded on both the Bombay Stock Exchange, as well as on the New York Stock
Exchange. Tata Motors in 2005, was ranked among the top 10 corporations in India with an annual revenue
exceeding INR 320 billion.
In 2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial
Vehicle, in South Korea. It also acquired Hispano Carrocera SA, now a fully-owned subsidiary. In March
2008, it acquired the Jaguar Land Rover (JLR) business from the Ford Motor Company, which also includes
the Daimler and Lanchester brands. and the purchase was completed on 2 June 2008.
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Tata Motors hasauto manufacturingandassembly plantsinJamshedpur, Pantnagar, Luc now, Ahmedabad
and Punein India,aswellasin Argentina, South Africaand Thailand
Expansion
The first generation Tata Indica's ecellent fuel economy, powerful engine and aggressive marketing
strategy madeit one ofthe bestsellingcarsinthe history ofthe Indianautomobileindustry.
After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger
vehicle market in 1991 by launchingtheTata Sierra,a multiutilityvehicle. After the launch ofthree more
vehicles, Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light
commercialvehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India'sfirstsportsutilityvehicle). Tata
launchedthe Indica in 1998, the first fully indigenous passenger car of India. Though thecar was initially
panned by auto-analysts, the car's e cellent fuel economy, powerful engine and 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
becamea mass-favourite. A badge engineeredversion of the car was sold in the United Kingdom as the
Rover CityRover. Tata Motors also successfully eported large quantities of the car to South Africa.The
success ofIndicain manyways markedthe rise ofTata Motors.
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Tata m tors i I dia
Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8
billion) in 2007-08. It is the leader in commercial vehicles in each segment, and among the top three in
passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. Tata
Motors presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on
Indian roads, since the first rolled out in 1954. The companys manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint
venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and
Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The companys dealership,
sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and
markets Fiat branded cars in India
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Tata Motors global operations
TataMotorshasbeenaggressivelyacquiringforeignbrandstoincreaseitsglobalpresence.TataMotorshas
operations in theUK, SouthKorea,Thailand and Spain.Among them is JaguarLandRover, a business
comprisingthetwo
iconic
British
brands
that
was
acquired
in2008.
Tata
Motors
hasalso
acquired
from
Ford
therightsofRover.In2004,itacquiredtheDaewoo Commercial Vehicles Company,SouthKoreassecond
largest truckmaker.The rechristenedTataDaewoo Commercial Vehicles Company has launched several
new products in theKoreanmarket,while also exporting these products to several internationalmarkets.
Todaytwo-thirdsofheavycommercialvehicleexportsoutofSouthKoreaarefromTataDaewoo.In2005,
TataMotorsacquireda21%stake in Hispano Carrocera,areputedSpanishbusandcoachmanufacturer,[9]
givingitcontrollingrightsofthecompany. Hispanospresenceisbeingexpandedinothermarkets.OnTata's
journey to make an international foot print, it continued its expansion through the introduction of new
products into themarketrangeofbuses(Starbus & Globus)aswellas trucks (Novus).Thesemodelswere
jointlydevelopedwithitssubsidiariesTataDaewooand Hispano Carrocera.InMay,2009Tataunveiledthe
Tata WorldTruckrangejointlydevelopedwithTataDaewoo TheywilldebutinSouthKorea,SouthAfrica,
theSAARC countriesand theMiddle-Eastby theendof2009 In2006, itformeda jointventurewith the
Brazil-basedMarcopolo, a global leader in bodybuilding forbuses and coaches tomanufacture fully-built
busesandcoaches forIndiaandselect internationalmarkets.TataMotorshasexpanded itsproductionand
assemblyoperationstoseveralothercountriesincludingSouthKorea,Thailand,SouthAfricaandArgentina
and isplanningtosetupplants inTurkey,IndonesiaandEasternEurope.Tataalsofranchisee/jointventure
assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal.[30] Tata has dealorships in 26
countriesacross4continents.ThoughTataispresentinmanycountiesithasonlymanagedtocreatealarge
consumerbaseintheIndianSubcontinentnamelyIndia, Bangladesh, Bhutan,SriLankaandNepalandhasa
growingconsumerbaseinItaly,SpainandSouthAfrica.
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Presentand future challenges
The popularmyth thatTataMotors have somedistinct advantages in comparison to othermulti-national
competitorsespeciallyacostadvantageaslaborcostsarenottrueasTataMotorshas8-9percentofsalesas
compared similar percent for most multinational companies
http://wiki.answers.com/Q/H
ow_much_does_labor_cost_to_build_a_new_car.
Also
employee
productivity
in TataMotors is less than 1/3rd (in $million sales / employee) than Toyota. Another advantage in the
increasing demand in its own backyard, India due to infrastructure developments and risingGDP. India
remains one of the few developing auto markets where domestic brands have managed to keep a large
presence,Tataandfellowcompatriotsaccountformorethan60%ofthepassengervehiclesalesand95%of
commercialvehiclesales.TherearealsofavorableGovernmentpolicesandregulations inplace inorderto
helpboosttheautoindustry. However,Tatahasnotbeenabletocapitalizeonitsglobalpresence.Tatarelies
heavily on its sales in India and has not yetmanaged to create a foothold in internationalmarkets even
though it has a number of well reputed subsidiaries. However, Tata Nano may boost its international
presence,atleastindevelopingeconomies.
Though it has an advantage in India, thanks to low costs and government policies it soon faces stiff
competitionfrom itmultinationalcompetitorsalleyeingforashare intheevergrowingIndianautosector.
Earlier,apolicyrequiredmajority-ownedsubsidiariesofforeigncarfirmstoinvestatleastUS$50millionin
equityiftheywishedtosetupmanufacturingprojectsinIndiaandmerecarassemblingoperationswerenot
welcomed.AnIndiancabinetpanelhassinceannouncedanewautomobilepolicythatsetsfreshinvestment
guidelinesforforeignfirmswishingtomanufacturevehiclesinthecountry.Investmentsinmakingautoparts
byaforeignvehiclemakerwillalsobeconsideredapartoftheminimumforeigninvestmentmadebyitinan
auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global
manufacturingandsourcingforautoparts.ThepoliciesadoptedbyGovernmentwillincreasecompetitionin
domesticmarket,motivatemany foreigncommercialvehiclemanufactures tosetupshops in India,whom
willmakeIndiaasaproductionhubandexporttonearestmarket.ThusTataMotorswillhavetofacetough
competitioninnearfuture,whichmightaffectitsgrowthnegatively.
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Currently, the presenceofSuzuki through its subsidiary,MarutiSuzuki in the Indianmarketmay alsobe
alarming.MarutihasaggressivelylaunchedfamilycarstounderminetheTatamodels.Tatahascontinuedto
bestrong in theMUV andSUV sectordue to lackofcompetitionandcorrectpricing. However,Tatanow
facesstiffcompetitionfrom fellowcompatriotMahindraGroupaswellasmultinationalbrand likeToyota
and Chevrolet.Inaddition,thegrowingpresenceoffellowIndiancompetitors,MahindraandForceMotors
notonlyintheIndianbutalsointheGlobalmarketmayeffectTata'ssales.MahindraandForcehaveformed
jointventureswithRenaultandMANrespectively.Mahindrahasalsoformeda51:49JV calledMahindra
NavistarwithITEC,USA(parentNavistarInternational),tomanufacturecommercialvehiclesandtobolster
itsposition in the CV business[32]AshokLeyland,which is thesecond largestcommercialmanufacturer in
Indiahas remainedTata's biggest competitor in the Indianheavy commercialvehiclemarket andwith its
aquistionofC
zechRepublic-based
Avia
itmay
manage
toincrease
itspresence
inneighbouring
markets
such as Sri Lanka, Nepal where TataMotors has a monopoly. To counter the growth of these various
companiesTatahascomeupwithrevisedornewmodelslikeIndica Vista,Indigo Vista, Xenon,Tata World
Truckandaaggressivemarketingpolicy.
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Ti eline ofthe develop ent
1945 - Tata Engineering and Locomotive Co (TELCO) is set up as a locomotive maker at the end of World
War Two
1954- Company shifts to making trucks in a joint venture with Germany's Daimler Benz
1977 - Commences production of commercial vehicles
1994- Enters venture with Daimler to make Mercedes Benz cars in India
1998 - Launches fully indigenous passenger car, Indica
2001- Ends joint venture with Daimler
2002- TELCO is renamed Tata Motors
2003 - Announces plan to build world's cheapest car for 100,000 rupees ($2,500)
2004 - Acquires South Korea's Daewoo Commercial Vehicle, and lists on the New York Stock Exchange.
Launches Indigo sedan
2005-Buys 21 percent stake in Spanish bus maker Hispano Carrocera SA, launches mini -truck Ace in India
2006 -Signs manufacturing and distribution agreement with Fiat, enters venture with Brazilian bus maker
Marcopolo
2008 - Named front-runner for Jaguar and Land Rover
- Unveils Nano, the 'People's Car', price at about $2,500
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Tata motors competition withother
Tata Motors is worried that rising competition, particularly from China, could hurt India's top commercial
vehicle maker.
The company plans to spend $3 billion in the next three years to expand as it fights increasing competition
from global automakers and a rise in the price of commodities, the company said at its annual shareholders
meeting here Monday.
Tata Motors (nyse: TTM - news - people ) is on track to launch an ultra-cheap small car in mid-2008, Tata
Group Chairman Ratan Tata said. The automobile will be priced at 100,000 rupees ($2,487.56), which would
make it the cheapest vehicle of its kind in India.
Renault (other-otc: RNSDF - news - people ) CEO Carlos Ghosn has announced plans to launch a small car
for the Indian market priced at around $3, 000. Global giants like Ford, Toyota (nyse: TM - news - people ),
General Motors (nyse: GM - news - people ) and Hyundai are also chasing Indias growing middle class as
rising salaries push up demand for automobiles.
But the prospect of competition from China is the biggest worry for Tata Motors. Our greatest concern is
when Chinese manufacturers come to India. Most European and U.S. manufacturers are here already, Tata
was quoted as saying. Tata Motors controls 65% of the Indian commercial vehicle market and 19% of the
passenger car market. International businesses account for 18% of the companys revenues.
We're seeing stagnation in the auto sector globally. We may see a temporary dip in the commercial
vehicles sector because of high interest costs and high prices of commodities, and increased competition,
Tata said. Rising interest rates in India also have made car loans dearer in recent months. But India and
China will be the growth drivers in the sector, Tata told shareholders.
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In the last quarter, the companys passenger vehicle sales in India rose 4% to 51,840 units, while
commercial vehicle sales declined by 2% to 61,699 units as higher interest rates took a toll on demand.
India's car market is expected to triple to 3 million units a year by 201 5.
Tata Motors is looking at expansion in markets in South Africa, Latin America, Thailand and China, as it aims
to minimize the risks associated with any single market and target high -growth regions. The business has a
partnership with Fiat (nyse: FIA - news - people ) for passenger vehicles and trucks.
Tata said some of the challenges the automobile company faced were increasing capacity, retaining product
quality and keeping abreast with the latest technology.
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Company Analysis
This report provides a comprehensive analysis about the company. Starting with the company's history,
including its organizational set-up and description of its businesses, the report moves on to discuss its key
business strategies. The company is also examined in the SWOT framework. Further, the report highlights
the key financial parameters of the company and focuses on ratio analysis, stock performance, market
indicators and earnings estimates. The report also contains a brief analysis of the industry the company
operates in as well as descriptions of the company's main competitors along with their financial
performance.
This report provides an in-depth analysis of Tata Motors. It starts with a historical overview of the company
and provides a brief profile of its various businesses. It then goes on to explore strategic initiatives
undertaken by the company to grow and strengthen its global presence. Thereafter, the report analyzes
Tata Motors financial performance against the backdrop of commercial and passenger vehicles industry
and conducts a peer-group comparison with Maruti Udyog and Mahindra & Mahindra. The report
concludes with an outlook for Tata Motors.
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SWOT ANAlYSIS
Stren ths
y The internationalisation strategy so far has been to keep local managers in new acquisitions, and toonly transplant a couple of senior managers from India into the new market. The benefit is that Tata
has been able to exchange expertise. For example after the Daewoo acquisition the Indian company
leaned work discipline and how to get the final product 'right first time.'
y The company has a strategy in place for the next stage of its expansion. Not only is it focusing uponnew products and acquisitions, but it also has a programme of intensive management development
in place in order to establish its leaders for tomorrow.
y The company has had a successful alliance with Italian mass producer Fiat since 2006. This hasenhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange.
For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an
agreement to build a pick -up targeted at Central and South America.
Weaknesses
y The company's passenger car products are based upon 3rd and 4th generation platforms, which putTata Motors Limited at a disadvantage with competing car manufacturers.
y Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got afoothold in the luxury car segment in its domestic, Indian market. Is the brand associated with
commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from
lucrative segments in a more aspiring India?
y One weakness which is often not recognised is that in English the word 'tat' means rubbish. Wouldthe brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy
into Fiat, Jaguar and Land Rover (see opportunities and strengths).
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Opportunities
y In the summer of2008 Tata Motor's announced that it had successfully purchased the Land Roverand Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have
been added to its portfolio of brands, and will undoubtedly off the company the chance to market
vehicles in the luxury segments.
y Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD$16 million.
y Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World isgetting ready for greener alternatives to gas -guzzlers, is the Nano the answer in terms of concept or
brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a
standard Nano!
y The new global track platform is about to be launched from its Korean (previously Daewoo) plant.Again, at a time when the World is looking for environmentally friendly transport alternatives, is
now the right time to move into this segment? The answer to this question (and the one above) is
that new and emerging industrial nations such as India, South Korea and China will have a thirst for
low-cost passenger and commercial vehicles. These are the opportunities. However the company
has put in place a very proactive Corporate Social Responsibility (CSR ) committee to address
potential strategies that will make is operations more sustainable.
y The range of Super Milo fuel efficient buses are powered by super -efficient, eco-friendly engines.The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel
consumption by up to 10%.
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Threats
y Other competing car manufacturers have been in the passenger car business for 40, 50 or moreyears. Therefore Tata Motors Limited has to catch up in terms of quality and lean producti on.
y Sustainability and environmentalism could mean extra costs for this low -cost producer. This couldimpact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other
brands this problem could be alleviated.
y Since the company has focused upon the commercial and small vehicle segments, it has left itselfopen to competition from overseas companies for the emerging Indian luxury segments. For
example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build
5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian
market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for
other global competitors including Marut i Udyog, General Motors, Ford and others.
y Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts.The price of steel and aluminium is increasing putting pressure on the costs of production. Many of
Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional
home market.
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Findin
s and Interpretations
y A Tata motor is a leading Automobile company in the world.y Tata is well establish in so many sectors which make Tata a 2 largest company in india.y Tata motors is 4 largest automobile company in the world.y Brand image of Tata motors is factor to come with new product.
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Reference
y www.google.comy www.wikipedia.comy www.TATAMOTORS.com