Upload
payal-sevak
View
223
Download
0
Embed Size (px)
Citation preview
8/7/2019 TATA Motors Automobile Ind
1/44
Automobile Industry
8/7/2019 TATA Motors Automobile Ind
2/44
Subject: SFI II
Submitted to: Prof. Rashmi Menon
Submitted by: Name Roll No.
Group - II Amit Joshi 06
Chhaya Navdiya 14
Payal Sevak 25
Mahek Shah 28
Manan Shah 29
Niraj Thaker 33
SLIMS / PGP III:SEM VI(EVE)/GROUP - II
8/7/2019 TATA Motors Automobile Ind
3/44
8/7/2019 TATA Motors Automobile Ind
4/44
4
Indian
AutomobileIndustry
8/7/2019 TATA Motors Automobile Ind
5/44
he Growth Journey
Pre 1983 1983-1993 1993-2007
Era of
globalisationand
evolution of
India as a
global
manufacturinghub
Closed market
Growth of market
limited by supply
Outdated models
Players
Hindustan Motors
Premier
Telco Ashok Leyland
Mahindra &
Mahindra
Japanisation - GOI-
Suzuki joint venture to
form Maruti Udyog
Joint ventures with
companies in
commercial vehicles
and components
Players
Maruti Udyog
Hindustan Motors
Premier
Telco
Ashok Leyland
Mahindra & Mahindra
Delicensing of
sector in 1993
Global major
OEMs start
assembly in India
(Toyota, GM, Ford,
Honda, Hyundai)
Imports allowed
from April 2001;
alignment of dutyon components and
parts to ASEAN
levels
Implementation of
VAT
8/7/2019 TATA Motors Automobile Ind
6/44
Facts
Second Largest two wheelermanufacturer in the world
Largest tractor and three
wheeler manufacturers in the
world
Fourth largest Commercial
vehicle market in the worldEleventh largest passenger car
market in the world
Trends
Growth of exports of 32.8 %FY 2008-09.
Output of commercial vehicles
has grown 2.8 times compared
to the 2.2 times increase in
passenger cars
For every passenger car turnedout, there are almost 7 two-
wheelers produced
Growth Potential
Can become Worlds third largest automobile market in 2030.
By 2016, Automotive sector can DOUBLE its percentage contributionto GDP from current levels of 5% (US$50 billion) to 10% ($180billion).
8/7/2019 TATA Motors Automobile Ind
7/44
8/7/2019 TATA Motors Automobile Ind
8/44
Automotive Companies in India
Major Indian Companies Major Multi-national companies
8/7/2019 TATA Motors Automobile Ind
9/44
8/7/2019 TATA Motors Automobile Ind
10/44
8/7/2019 TATA Motors Automobile Ind
11/44
Tata Group100 companies throughout 7 business sectors
Engineering, materials, energy, chemicals, services,
consumer products, information systems and
communicationsTata Auto Comp Systems - Automotive
Tata Steel - Materials
Tata Power - Energy
Rallis India - Chemicals
Tata Realty and Infrastructure - ServiceTata Tea - Consumer Products
Tata Technologies - Information Systems and
Communications
8/7/2019 TATA Motors Automobile Ind
12/44
Tata Motors Limited
Tata Motors Ltd (TML) was incorporated in 1945 and
is India's largest automobile Company.
TML is the leader in commercial vehicles and
passenger vehicles segments with winning productsacross compact, midsize car and utility vehicle
segments.
TML is the world's fourth largest truck manufacturer,
and the world's second largest bus manufacturer withits manufacturing units spread across India -
Jamshedpur, Pune, Lucknow , Pantnagar and
Dharwad; one new plant under construction for Nano
cars at Sanand (Gujarat).
8/7/2019 TATA Motors Automobile Ind
13/44
TML has a strategic alliance with Fiat since 2005 at
Ranjangaon (Maharashtra) to produce both Fiat, Tatacars and Fiat power trains.
TMLs dealership, sales, services and spare parts
network comprises over 3,500 touch points
TML also distributes and markets Fiat branded cars in
India. TML's commercial and passenger vehicles are
marketed across Continents like Europe, Africa, the
Middle East, South East Asia, South Asia and South
America.
TML has a franchisee/joint venture assembly
operations in Kenya, Bangladesh, Ukraine, Russia,
Senegal and South Africa.
8/7/2019 TATA Motors Automobile Ind
14/44
VisionTo be best in themanner in whichwe operate, bestin the productswe deliver, andbest in our valuesystem andethics
MissionTo become a worldclass automotiveengineering and
productdevelopmentcentre, and enable
Tata Motors tobecome a worldclass automotivecompany
8/7/2019 TATA Motors Automobile Ind
15/44
8/7/2019 TATA Motors Automobile Ind
16/44
Core ValuesIntegrity Fair &transparent businessUnderstanding Caring,compassionate and humaneExcellence Strive toachieve highest possibleUnity Work cohesivelywith colleagues and groupsResponsibility Sensitiveto countries, communitiesand environment
PurposeCommitted to qualityof lifeStriving for globalcompetitiveness
Pay back to societyespecially customers,employees,shareholders and thecommunity
8/7/2019 TATA Motors Automobile Ind
17/44
8/7/2019 TATA Motors Automobile Ind
18/44
Tata MotorsOperations
India
UK
SouthKorea
Thailand
Spain
8/7/2019 TATA Motors Automobile Ind
19/44
Tata Motors -Products
CommercialVehicles
Passenger
Vehicles
Midsize car
Utilityvehicle
8/7/2019 TATA Motors Automobile Ind
20/44
Products PASSENGER CARS Indica Vista, Indica V2 Xeta,
Indigo Manza Indigo CS, Indica V2, Nano, Fiat Cars
UTILITY VEHICLES Aria, Safari DICOR, Sumo
Grande MK II, Xenon XT TRUCKS Medium & heavy commercial vehicles,
Intermediate commercial vehicles, LCVs, SCVs,
Prima, TL 4*4, Construx
COMMERCIAL PASSENGER CARRIERS Buses,
Winger, Magic
DEFENCE VEHICLES
8/7/2019 TATA Motors Automobile Ind
21/44
8/7/2019 TATA Motors Automobile Ind
22/44
22
Management Structure
8/7/2019 TATA Motors Automobile Ind
23/44
SWOC Analysis
Strength
Experience
Micro environment
Business model
Resource & capabilities Culture
Weakness
Value chain
Distribution
Macro environment
Opportunity
ExportNew products
New markets
Acquisition & mergers
Challenges
Free Market Low barriers
Globalization ofeconomy
8/7/2019 TATA Motors Automobile Ind
24/44
BCG Matrix
8/7/2019 TATA Motors Automobile Ind
25/44
Porters Five Forces
Medium
HighLow
Low
Low
8/7/2019 TATA Motors Automobile Ind
26/44
Stakeholder Engagement
8/7/2019 TATA Motors Automobile Ind
27/44
Value Chain & Value System
Inbound
Logistics
Opera
tions
Marketing
S
ervice
Outbound
Logistics
Suppliers , Contractors
SAP , VCM
SAP , CRM - DMS
Strategic Alliances
Dealer Network,
Marketing ResearchFirms, Vehicle Financing
Regional Warehouses,Dealer Workshops,Distributors, TASS
27
T
ra
nsporters,C
onvoyDrivers Association
8/7/2019 TATA Motors Automobile Ind
28/44
Organizational Resources
28
Process Approach EPM (derived
from APQC
processes and
TBEM model.
8/7/2019 TATA Motors Automobile Ind
29/44
17
100
8/7/2019 TATA Motors Automobile Ind
30/44
30
The Enterprise
Process Model
8/7/2019 TATA Motors Automobile Ind
31/44
8/7/2019 TATA Motors Automobile Ind
32/44
How did TATAcreate initial resource complement toovercome the disadvantage of being newcomers in passenger
car business?
STRATEGY INSTITUTIONS
Government support(10Year Plan)
New institutions for tradepromotion, technologyup-gradation, quality
enhancement (ACMA:Automotive Component
ManufacturersAssociation, SIAM:Society of Indian
Automobile
Manufacturers )
R&D
Acquisitions
Strategic partnerships
Joint ventures
Intensive managementdevelopment
Leveraging the resources
32
8/7/2019 TATA Motors Automobile Ind
33/44
8/7/2019 TATA Motors Automobile Ind
34/44
Key Strategies
8/7/2019 TATA Motors Automobile Ind
35/44
i
International strategy based on thecompetitive advantage:
New product (eg. Tata Nano, the cheapest car inthe World).
Acquisitions (eg. Land Rover and Jaguar brandsfrom Ford Motors).
Partnership with established companies (eg.Alliance with Fiat since 2006) to enhance theproduct portfolio and knowledge exchange.
Facilities for learning from other companies.Developing programmes forintensive management development.
8/7/2019 TATA Motors Automobile Ind
36/44
Consolidate position in Indiaby exploiting opportunities:
New mobility of youngIndians.
Governments substantialroad-building program
GDP growth
8/7/2019 TATA Motors Automobile Ind
37/44
37
Business strategy
Commercialvehicles
-
Maintain and grow leadership inIndia through continuous evaluation
of product range
Improve value proposition for
existing products
New launches to fill gap inproduct portfolio
Continuous innovation to create
new market segments
Grow in international markets
Enhance product rangecombining TML, TDCV, Tata
Motors Thailand and Hispano
Expand manufacturing footprint
- South Africa
8/7/2019 TATA Motors Automobile Ind
38/44
8/7/2019 TATA Motors Automobile Ind
39/44
39
Business strategy
Passenger cars Leverage young productportfolio to regain market
position Expand addressable market
through improved valueproposition eg. Powertrainoptions
Seed longer-term growth byexploiting emerging trends -
alternative fuels (Electric Vistaetc)
Supplement technology andproducts from partners Take Nano to the world
8/7/2019 TATA Motors Automobile Ind
40/44
Focus on select key markets forinternational growth Grow used car business (TataAssured) Aggressive plans to furtherexpand sales and service networkin India for enhanced customercare
Leverage the low cost base andcreate more value Sustain low cost base withcontinuous cost reduction efforts
8/7/2019 TATA Motors Automobile Ind
41/44
8/7/2019 TATA Motors Automobile Ind
42/44
A Company that
cares about thefuture
Committed tocorporate socialresponsibility
Signed the UnitedNations Global
Compact Plays role in communitydevelopment
Environmentally-
friendly products andtechnology
Cleaner Engines
Advanced emission-testing labs
Developing alternatefuel engines
Two main concerns:
Reduction of pollution
Restoration ofecological balance
Implemented soiland waterconservationprograms
Sewage treatmentfacilities
Encourages treeplanting
India RecyclingCulture
Value in discardedproducts
Europe Throw-away culture
European ELVDirective
CommunityDevelopment
Community ServiceDivision
Promote economicindependence
Self-initiatedcottage industries
8/7/2019 TATA Motors Automobile Ind
43/44
8/7/2019 TATA Motors Automobile Ind
44/44