Tata Moters Srv

8/7/2019 Tata Moters Srv

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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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2

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

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Tata Moters Srv