Académique Documents
Professionnel Documents
Culture Documents
TATA
PREPARED BY:-
(GROUP ‘A’)
VAIBHAV SWAROOP
TABLE OF CONTENTS
1
Chapter-1: Company Profile 5
• Tata Motors 8
• Objectives 14
• Management 15
• Manufacturing 20
• Research 22
2
• Balanced Score Card Analysis
38
• Financial Analysis 40
• Demand Conditions 45
• Organization Structure 50
• Key Challenges 51
• Market Drivers 55
• SWOT Analysis 66
3
• BCG Matrix Portfolio
69
Chapter-5: Conclusion 70
• Conclusion 70
• Findings 71
• Suggestions 72
• Bibliography 73
CHAPTER - I
COMPANY PROFILE
4
ABOUT TATA GROUP
services, energy, consumer products and chemicals. The group has operations in
more than 80 countries across six continents, and its companies export products
The total revenue of Tata companies, taken together, was $67.4 billion
(around Rs319,534 crore) in 2009-10, with 57 per cent of this coming from
business outside India. Tata companies employ around 395,000 people worldwide.
The Tata name has been respected in India for 140 years for its adherence to strong
answerable. There are 28 publicly listed Tata enterprises and they have a combined
market capitalization of about $102.41 billion (as on December 16, 2010), 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
5
Tata Steel became the tenth-largest steel maker in the world after it
acquired Corus, later renamed 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 India. Tata
Global Beverages is the second-largest player in tea in the world. Tata Chemicals
is the world’s second largest manufacturer of soda ash and Tata Communications
consultancy firm, recently valued the Tata brand at $11.22 billion and ranked it
65th among the world's Top 100 brands. Business Week magazine ranked Tata
17th among the '50 Most Innovative Companies' list and the Reputation Institute,
USA, in 2009 rated it 11th on its list of world's most reputable companies.
Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by the
India: steel, power, hospitality and airlines. In more recent times, its pioneering
spirit has been showcased by companies such as TCS, India’s first software
company, and Tata Motors, which made India’s first indigenously developed car,
6
the Indica, in 1998 and recently unveiled the world’s 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
areas of education, healthcare and livelihoods. Tata companies also extend social
around 4 per cent of the net profits of all the Tata companies taken together.
its business in India and internationally. The Nano car is one example, as is the Eka
the world’s fourth fastest. Anchored in India and wedded to traditional values and
strong ethics, Tata companies are building multinational businesses that will
achieve growth through excellence and innovation, while balancing the interests of
TATA MOTORS
7
Tata Motors Limited is India's largest automobile company, with
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. The company is the world's fourth largest truck manufacturer,
The company's 24,000 employees are guided by the vision to be "best in the
manner in which we operate, best in the products we deliver, and best in our value
Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first
rolled out in 1954. The company's manufacturing base in India is spread across
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.
dealership, sales, services and spare parts network comprises over 3500 touch
points; Tata Motors also distributes and markets Fiat branded cars in India.
8
Tata Motors, the first company from India's engineering sector to
be listed in the New York Stock Exchange (September 2004), has also emerged as
companies, Tata Motors has operations in the UK, South Korea, Thailand and
Spain. Among them is Jaguar Land Rover, a business comprising the two iconic
British brands that was acquired in 2008. In 2004, it acquired the Daewoo
Commercial Vehicles Company, South Korea's second largest truck maker. The
new products in the Korean market, while also exporting these products to several
of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake
other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based
fully-built buses and coaches for India and select international markets. In 2006,
Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant
Thailand. The new plant of Tata Motors (Thailand) has begun production of the
Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.
9
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. It has
The foundation of the company's growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate
them into customer-desired offerings through leading edge R&D. With over 3,000
in 1966, has enabled pioneering technologies and products. The company today
has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South
Korea, Spain, and the UK. It was Tata Motors, which developed the first
Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car.
Within two years of launch, Tata Indica became India's largest selling car in its
segment. In 2005, Tata Motors created a new segment by launching the Tata Ace,
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano,
which India and the world have been looking forward to. The Tata Nano has been
10
subsequently launched, as planned, in India in March 2009. A
development, which signifies a first for the global automobile industry, the Nano
brings the comfort and safety of a car within the reach of thousands of families.
The standard version has been priced at Rs.100,000 (excluding VAT and
transportation cost).
generous leg space and head room. It can comfortably seat four persons. Its mono-
volume design will set a new benchmark among small cars. Its safety performance
pollution level than two-wheelers being manufactured in India today. The lean
design strategy has helped minimise weight, which helps maximise performance
per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby
carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian
automobile industry, in keeping with its pioneering tradition, by unveiling its new
range of world standard trucks called Prima. In their power, speed, carrying
capacity, operating economy and trims, they will introduce new benchmarks in
11
India and match the best in the world in performance at a lower life-
cycle cost.
emissions and alternative fuels. . It has developed electric and hybrid vehicles both
for personal and public transportation. It has also been implementing several
components manufacturing and supply chain activities, machine tools and factory
for automotive and computer applications, and automotive retailing and service
operations.
The activities touch the lives of more than a million citizens. The company's
12
conserving water and creating new water bodies and, last but not the
With the foundation of its rich heritage, Tata Motors today is etching a
refulgent future.
OBJECTIVES
National
• Tata company nano car has a four passenger city car built by Tata motors
International
13
• Tata motors nano car is ready to start its journey on the global
comparison of its Indian part. The company aimed towards selling the nano
Ethical Objective
• Tata group had never compromised in ethics; it last year edited whistle
MANAGEMENT
14
Board of Directors
Mr.
Ratan
N
Mr. Ravi Kant
Tata
(Chair
man)
Dr. J J Irani
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Nasser Munjee
Mr. Subodh Bhargava
Mr. V K Jairath
Mr. Ranendra Sen
Dr. Ralf Speth
Mr. Carl-Peter Forster
Mr. P M Telang
Senior Management
Mr. Carl-Peter
Chief Executive Officer & Managing Director
Forster
Mr. P M Telang Managing Director-India Operations
Mr. C
Chief Financial Officer
Ramakrishnan
Mr. R Pisharody President (Commercial Vehicles Business Unit)
Company Secretary
Mr. H K Sethna
Corporate Communications
Mr. Debasis Ray Head - Corporate Communications
car that put India on the automobile world map. Developing an indigenous Indian
car was a daunting task. One that Tata Motors took head-on, encouraged by the
faith and confidence Chairman Ratan Tata had in the Company’s engineering
16
skills. Conceived within a time frame of 31 months - from concept to
towards fulfilling Ratan Tata’s vision of Tata Motors as a has steered the Company
his leadership , Tata Motors is charting for itself a global path in the automotive
world. The agreement with MG Rover, UK to manufacture and sell Rover branded
Ratan Tata’s global ambitions for Tata Motors have taken wing with the
On the Tata Motors board since 1981, Ratan Tata continues the traditions of
Jamsetji Tata and JRD Tata, instilling ethics and credibility in the Company. He
Commercial vehicle Co., South Korea and Tata Motors’ entry in the South African
market. The Daewoo acquisition will give Tata Motors a substantial presence in
research. According to Ratan Tata, the acquisition is a historic occasion for Tata
Motors and the Tata Group as this is the largest acquisition by any Indian company
in Korea. He believes that the South Africa could be a possible stepping stone for
Among the many firsts Tata Motors has achieved under Ratan Tata’s
leadership is the listing of the Company on the New York Stock Exchange (NYSE)
17
- the first company in the Indian engineering sector to list its securities
on the NYSE.
His next mission for Tata Motors is the development of the Rs 1 lakh car -
economy are all apparent in Tata's pet project: the creation of Indica. "I believed in
the product. In fact I was very much involved in conceiving its initial fundamentals
and design parameters. Yes, it's like seeing a child being born, almost limb-by-
limb. Today we have in excess of 50,000 Indicas on the road and I feel a sense of
Tata Motors has several joint venture, subsidiary and associate companies:
18
Concorde Motors (India) Ltd. (Concorde)
Tata Daewoo Commercial Vehicle Company Ltd. (TDCV)
Tata Hispano Motors Carrocera S. A.
Tata Motors Insurance Broking & Advisory Services Ltd. (TMIBASL)
Tata Motors European Technical Centre plc. (TMETC)
Tata Motors Finance Limited
Tata Motors (Thailand) Limited (TMTL)
Tata Marcopolo Motors Ltd (TMML)
Tata Motors(SA) Proprietary Ltd (TMSA)
TML Distribution Company Ltd (TDCL)
TML Holdings Pte. Ltd.
• Africa
• Asia Pacific
• China
• Europe
• Middle East
• North America
• South America
19
• United Kingdom
MANUFACTURING
Tata Motors owes its leading position in the Indian automobile industry to
its strong focus on indigenisation. This focus has driven the Company to set up
Jamshedpur in the East, Pune in the West and Lucknow in the North.
Jamshedpur:
Established in 1945, the Jamshedpur unit was the company's first unit and is
spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory,
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and
Engineering Division, which has one of the most versatile tool making facilities in
Lucknow:
20
Tata Motors Lucknow is one of the youngest production facilities
among all the Tata Motors locations and was established in 1992 to meet the
Uttarakhand
The company has set up a plant for its mini-truck Ace and the passenger
carrier Magic (based on the Ace platform) at Pantnagar in Uttarakhand. The plant
began.
Sanand
Tata Motors’ plant for the Tata Nano at Sanand, in Ahmedabad district of
Gujarat, marks the culmination of the company’s goal of making the Tata Nano
affordable and environmental friendly mode of transport. The capacity of the plant,
to begin with, will be 250,000 cars per year to be achieved in phases, and with
some balancing is expandable up to 350,000 cars per year. Provision for further
RESEARCH
Research&Development:
Research provides the much-needed inspiration for the birth of new ideas, which in
21
turn breathes new life into products. World-class automotive research
and development are key factors that contribute to the leadership of the Company.
The Engineering Research Centre in Pune was setup in 1966 and is among
the finest in the country. It has been honoured with two prestigious awards - 'The
DSIR National Award for R&D Effort in Industry - 1999' and 'National Award for
- 2000.'
22
TATA MOTORS PROCUREMENT PROCESS
factory (where the part will be consumed) will initiate the process for
regular procurement.
supplier’s locations.
activates.
24
PRODUCT PROFILE TATA MOTORS
Passengers Cars:
• INDICA VISTA
• INDICA V2 XETA
• INDICA V2
25
• INDICO MANZA
• INDICO CS
• INDICO MARINA
• INDICO XL
• NANO
• FIAT CARS
Utility Vehicles:
• ARIA
• SAFARI DICOR
• SUMO
• XENON XT
• SUMO GRAND MK II
Trucks:
• BUSES
• WINGER
• MAGIC
26
World Vehicle Produ ction Trends (in '000s)
50000
40000
30000
20000
10000
0
19 97 19 98 1999 2000 2001 2002 2003 2004
Ye ar
No rth America South America European Union Other Europ e Jap an Asia-other than Japan
Sour ce : OICA.ne t
Data excludes 2-wheelers where Asia is not only the largest prod ucer, bu t is also the largest market 5
27
CHAPTER-2
possess global recognition in best practices that strengthens their branding at a global level.
They are known to be very much customer focused and are very conscious about the
fitment of their products for customer needs. They believe in continuous innovations as they
keep on releasing new innovations in their existing models. Although the indigenous cars of
Tata Motors do not compare with the engineering excellence of a global player like Ford
Motor Company, they are well suited for Asian conditions where the comfort factor is more
Reviews by Indian Motor sites reveal that the Tata Motors Indica & Indigo models
possess sluggish performance of engine in terms of speed and performance but are good in
terms of fuel efficiency, maintainability, internal space that are more important factors given
This reveals that Tata Motors have focused on the local conditions of the country and
have designed cars that are more suitable for customer needs rather than imposing additional
but useless engineering on them. Example, there is no point designing a car that can run at
28
100 miles per hour if the maximum speeds that can be achieved even at best
One of the major success factors of Tata Motors are their supply chain excellence.
The entire world is surprised by the launch of Tata Nano that shall be priced at $2500
approximately. An analysis by Fogarty, Justin (2009) reveals that Tata Motors could commit
this price to the industry due to their excellent backend supply chain network.
Tata Motors worked very early with their suppliers in arriving at the cost estimate of
the car – to the extent that even the functional specifications of the parts were completed
Tata Motors uses Ariba spend management solution as reported by Business Wire in
2005. Ariba is a software based platform that helps in reducing bottom line costs
considerably. Tata Motors is a modest company when it comes to spending because one of
their primary objectives has been achieving highest operational efficiencies at lowest costs.
objectives. They possess Computer Aided Design and Computer Aided Modeling
technologies, Siebel for Customer network management, SAP for supplier relationships and
They also use BMC Software for business services management under the ITIL and
ISO 20000:2005 framework. The IT systems of Tata Motors limited are outsourced to their
29
group company named Tata Technologies Limited. The BMC tools help them to
manage IT services management, IT change management and also to comply with critical
statutory laws and best practices like Sarbanes Oxley Act, ITIL, and ISO 20000:2005.
Tata Motors do have the fundamentals to play the role of change agent for some of
the major changes in the global automobile industry. Historically, Tata Motors have not done
well in entering the motor markets in western countries and hence this acquisition presents
an excellent opportunity for Tata Motors to establish their presence in UK and European car
markets.
Jaguar and Land Rover may not have done well in the recent past but they have
remained the pride and heritage of Great Britain and are very close to heart of the native
British citizens.
Tata Motors may just have to apply some technical innovations in these cars and re-
price them according to the modern economics and these models for sure will again do
wonders in the UK markets. One good thing about this acquisition is that the heritages of
India and Britain have many common links including the very establishment of Tata Group
The fundamentals of Tata Motors possess many best practices of the British
industries and hence the employees of Jaguar and Land Rover will be able to easily correlate
the culture of Tata Motors with the original British heritage although these organizations
30
The biggest gamble that Tata Motors is currently playing is the Tata Nano
targeted at urban middle class that are yet to afford a car and have been moving on
Motorcycles. Tata Motors have priced this car at $2500 approximately which itself is a
challenge for them to fulfill. They have already made a loss of more than 300 Million
Dollars because they had to shift their entire plant for Tata Nano manufacturing from a
location called “Singur” in the eastern part of India amidst local disturbances and security
problems.
The current manufacturing capacity of Tata Nano is 50,000 cars per year whereas
Brown, Robin (2009) of motortorque.com expects a booking of 500,000 units in the first lot
itself. This means that in the current capacity Tata Motors will take 10 years to fulfill the
After the Singur crisis, they are in the process of setting up a new factory such that the
combined output of Tata Motors can be 250000 cars per year which again will take two
years to fulfill the bookings of the first lot itself. Hence, Tata Nano is going to be a major
challenge for Tata Motors whereby they would need to aggressively deploy new plants
although they are reeling under cash crunch due to their acquisition of Jaguar and Land
Rover in 2008.
Hence, overall it is a “do or die” situation for Tata Motors – if they succeed they will
attain the status of no. 1 small car manufacturer of the world; but if they fail they would lose
31
Analysis of Tata Motors as per Michael Porter’s Five Forces Model that shape
Industry Competition.
In 1980, Michael Porter presented the five forces that shape competition in the
industry for any business organization as – Rivalry among existing competitors, threats of
new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of
about this model and then determine the competitive positioning of Tata Motors with the
32
One important observation that Michael E Porter made about these forces is
that if these forces are intense then almost no company gains distinct competitive advantages
and earns attractive returns on investments. The threats of new entrants and substitute
products and services are prevalent in industries where major innovations are underway that
can potentially cause creative destruction of the existing products and services. New entrants
always enter the markets with a desire to capture market shares quickly and hence tend to put
lot of pressure on product pricing thus capping the profit potential of the market.
33
A simpler form of
Ansoff product
marketing strategy is
presented below:
34
Each of these quadrants describes a specific product marketing strategy as detailed
below:
possesses lowest risks while the strategy requiring deployment of altogether new value
Thus market penetration strategies possess lowest risks associated with the
implementation. If we take a closer look at the strategies of Tata Motors and map with
35
Ansoff matrix, we can easily conclude that Tata Motors is applying strategies
with highest risks and hence is in a make or break mode. We present the following analysis
Tata Motors is currently implementing high risk strategies given that they have
attempted to enter two new markets where they do not possess any expertise – UK and
European premium car markets with the help of Jaguar and Land Rover and the $2500 Nano
car that may altogether develop a new car market globally. If things favor them, they have
the potential to become the next Ford of the world but if the happenings do not favor them
(like the Singur crisis witnessed by them), then they can suffer losses that will take decades
performance indicators (KPIs). The balanced scorecard is presented in the figure below:
36
The strategy is based on four primary factors that balance each other in a strategic
framework – Customer, Financial, Internal Business Process and Learning and Growth. The
Customer and Financial perspective is the way the company appears to the customers and
the Stake Holders whereas the Internal Business Processes and Learning and Growth
perspective is the way the company appears to the internal employees and managers.
Customers and hence we will revisit the Balanced Score Card later in the dissertation.
The internal business processes and learning and growth perspective has been quite
sound in Tata Motors but the perspectives have been entirely different.
37
This has resulted in they able to deliver different variants of cars as per the
requirements of different countries using the same spares supplied by their centralized supply
chain vendor.
Tata Motors appear to be far behind this strategy as compared to Ford Motors but
they appear to be taking the same path towards globalization. They have developed Nano as
per Indian conditions to start with but are ready to match the localized conditions required at
They already have their small trucks (Tata Sierra) operating in UK which must have
developed their knowledge on UK and European market requirements. Moreover, after the
acquisition of Jaguar and Land Rover their knowledge will be strengthened further. They
already have the basics in place to apply the knowledge in Nano and it may be just a matter
of time that they will be able to achieve compliance for Nano against the regulations of
annual statements because the US Dollars to Indian Rupees fluctuations of all the five years
may have to be taken into account which may impact the accuracy. Therefore, the figures
published by New York Stock Exchange have been incorporated here for analysis:
38
Table: Earnings per Share and Dividend per share of Tata Motors
The above analysis shows dismal performance of Tata Motors in the last five years.
Investors have been losing money considerably in Tata Motors has been consistently
39
Stock Chart of Tata Motors:-
Tata Motors strategy has been different compared to Ford Motors. They defeated
their rivals by capturing the opportunities much ahead of competition even before they are
prepared to deliver against orders. Their strategy has been to reserve customers by charging
booking amounts such that they first secure the customer base and then start manufacturing.
They are very cost conscious about overheads or extra inventory and hence manufacture
40
strictly against orders. Their strategy in the launch of Tata Nano is the same
whereby they first intend to secure the customers by charging nominal booking amounts and
then deliver the cars gradually as and when they are launched. Given that their Nano concept
is not yet challenged by any competition, it would be easier for them to reserve the bookings
such that even if they face a competition, their customers of first lot will remain untouched.
advantages of nations to analyze how some countries gain competitive advantages in certain
industrial sectors by developing their respective indigenous industries. This model and the
five forces model of firm competitiveness have become empirical generalizations in strategic
analysis of companies. We hereby present the analysis of Tata Motors using these models.
41
Organizations that have achieved competitive advantages across the world have
carried out innovations in their product offerings, in the services, in the way they do business
and in the way they compete in the marketplace. The innovations of all companies appear to
be their own but are actually based on some strong fundamentals of factors that interact with
each other considerably (Porter, Michael E. 1990. pp75). The diamond model presents a
strong correlation of the four underlying influencing factors governing the success of an
organization at National as well as International level with the help of the controls of the
42
DEMAND CONDITIONS OF TATA MOTORS
Tata Motors have not developed the competency of localization of products and
services as per local demands. In India, they have decades of experience in developing
43
products against local demands and hence are very successful. The government
machinery of India has already helped them to stretch their legs beyond the country limits
(like the legal and statutory framework of India has allowed them to acquire British
companies and launch Nano worldwide through Geneva). But they have not mastered the art
Example, they failed in City Rover miserably because they tried to push cars fit for Indian
conditions into Europe which is considered as a blunder today. Hence, overall it will take a
CHAPTER-3
MARKET GROWTH
GROWTH OF TATA MOTORS
44
Tata Motors is in cloud nine, so to say as the largest automotive
player in the country, with its Jaguar Land Rover division creating history of sorts
by posting a hundered folf increase in net profit and all other vehicles also
reporting a healthy growth. The firm's net profit increased to Rs 2,222.99 crore for
the the second quarter ending September 30, 2010 as against the mere Rs 21.78
crore in the year ago period. The second quarter profit was tagged at Rs 1,448
crore by the Bloomberg News poll by analysts. While the total income sizzled by
33.99 percent to Rs 28,801.54 crore, in comparison with Rs 21,495.17 crore for the
Tata Motors has registered a stand alone basis a net profit of Rs 432.70 crore
during the period under review as against the Rs 729.14 crore in the previous
fiscal, which is actually down by 40.65 percent. When we look at the one time
income from the sale of investments last year same quarter, then the firm's local
the sales would have been pretty much more. The firm is possitive about its sales
45
growth in the coming months, but what actually worries it is the fact that
the fluctuating exchange rate would take a hit in its profit margin.
C Ramakrishnan, Chief Financial Officer of Tata Motors did not hide his
apprehension and added that the exchange rates might as well have a negative
impact on the profit margin in the coming days, as almost half of JLR's turnover is
in terms of USD and one-fifth is related to euro, apparently with the Indian ruppees
gaining strength against these two currencies this year, this would defenitely have a
bearing on its profit margin. As early as January this year, the INR has gained
strength by 4.9 perccent against the USD, at the same time 7.7 percent against the
euro.
China focus
JLR is eying China, as it is the world's largest car market for consolidating
India. While expressing the anxiety of spiralling raw material costs, Prakash M
Telang, Managing Director (India Operations), Tata Motors says that there are a
good measure of concernes as far as the commodity prices are concerned and adds
that firm had initiated various methodologies to tide over the crisis and to reduce
the impact into a manegable level. Though the officials say there is no such thing
46
called capacity constraint in Tata Motors but admit that there certainly is
As Europe and US markets are on the recovery mode from the economic
slowdown, JLR has had a positive side of story to say. What is more, the UK
crore. The increase in sales is partly due to the fact that the firm had rolled out new
minimum of ten percent over its existing brands that had helped the firm to
enhance its business growth by one percentage point to 16.5 percent. A slew of
new products means, JLR can sustain the momentum of upward tick in this
fortune, though again it all depends on the currency fluctuations, the industry
pundits estimate, though they have their share of skepticism as to whether the firm
could repeat its first half performance yet again in the second half.
47
Tata Motors India growth story is on a sound note as it had posted a sales of Rs
1,15,04 crore, meaning 44.2 percent higher than the previous fiscal, thanks to the
strong showing of its bus and trucks business. What with new products like Tata
Aria being rolled out in the Indian market, there is no second thought that Tata
48
Organization Structure – TATA Motors
Senior Management Team
Ravi Kant
(Mana ging Director)
P P Kadle
A P Arya (ED – Fi nance &
P M Telang Corpora te Affa irs)
(Pre sident– Hea vy and
(President – L igh t and
Me dium Commerci al Ve hicles
Small Commercial
Vehicles) Ra jiv Dube
(Sr Vice Pre sident– Pa ssenger Enginee ring
Cars) Re searc h Ce ntre
19
3- W he e le r P rodu ct ion (N os .)
C AG R– 1 7 %
300 ,000
250 ,000
50 ,000
0
2 000-01 200 1-02 2002-0 3 2003-04 2004-05
Y ear
Thr ee W hee le r
50 26
INDIAN THREE WHEELER MARKET SURVEY
60%
68% 24% 2% 1% 3% 3%
Pa sse nge r
27
51
T he I nd ia n-W3he e le r I nd us tr y
In d ian -w
3 h ee ler In d u st ry C h arac te rist ics
• P ro d u ct un iq u e t o e m erg in g m ark et s in S ou
-E ast
t h / S ou t h
Asia & p a rts o f Af rica
Dis-s im ila rit y w it h G lo b al • P ro d u ct de sig n & ex ecu t io n f oc u s o n t ech n o lo g ica l sim p lic it
In d u st ry an d ea se o f u se .
28
52
MARKET DRIVERS & KEY TRENDS OF TATA MOTORS
K e y M a r ke t D r iv e rs K e y T re n d s
Pa ss e nger V e hicle Pr oduc t io n & M ark e t S ub-S eg m en ts ( N os .)
“L as t M ile” T ra n sp o rta t io n n e ed s .
G o od s s eg m en t g ro w inCAg GR
a –t 17f a%st er
1,4 00,0 00
H ig h p rod u c t m anUVeenlik
u ve er
t he US A , the Indian Pa ss
a b ility & c en
lipger
.
hicle ma r k e t is d ominate d by C ar s
d rive ab ilit y. I d ea l f o r co n g es(7 9t ed
%)
67, 371
In1,2d00,0
ia 00
n roa d s a n d tro p ic a l
c on d itio n s. 1 81,77 8
A b ility o f p ro d u ct t o m ee t
1,0 00,0 00 60, 673
in cre a sin g ly
146,3 25 s trin g en t e m is sio n &
In a d eq u a t e u rb a n & rura l p u b lic
8 00,0 00
tra n s po rt a tio n in f ra st ruc t ur e 51 ,441 s af e ty re g u la tio n s is d o u bt f ul.
0 63,75 1
114, 479
6 00,0 00 127, 519
105, 667
L o w in it ial ow n ers h ip c o st 9 60,50 5
4 00,0 00
M a rke t 782,5
p u sh
62 b u ild in g u p f o r p ro d uc t
557, 410
S e lf-e m p lo y m e415
513, n t o pp o rt 500,
u n 301
it y f o r u p g rad a t io n.
2 00,0 00 ( *)
la rge s eg m e nt of u rba n yo u th
0
2000-01 2001-02 20 02-03 200 3-04 2004-05
(*) MP Vs we re par t of P ass eng er Ca r seg men -0
t till
1 2 000 Yea r
53
INDIAN PASSENGER VEHICLE MARKET
P assenger
Cars 52% 17% 19% - 1% 5% 2% 2% 2% 1% - <1% <1%
Utility
Vehicles 2% 18% 1% 42% 21% 1% 10% 1% <1% - 4% - <1%
M ulti
P urp ose 100% - - - - - - - - - - - <1%
Vehicles
32
54
T he I nd ia n Pa s s e ng e r v e hi c le In du s tr y
33
55
Passenger Car Penetration is low in India
n
o
ti
la
u
p
o
p The low penetration
d presents an opportunity
n
a for industry players to
s
u offer an af ford able fo-ur
o
h
t wheeled alternative to
r
e the mass of -2wheeler
p
sr customers
a
C
34
56
COMMERCIAL VEHICLE PRODUCTION
CAGR – 22%
300 ,000
138,890
250 ,000
10 8,917
200 ,000
83,195
150 ,000
6 8,922 65,756
211,143
100 ,000
16 6,123
1 20,50 2
8 7,784 96,752
50 ,000
0
2 000-01 200 1-02 2002-0 3 2003-04 2004-05
Year
37
57
In d ia n C o m m e rc ia l V e h ic le
– CMoamr ke
p ettitiv e S c e na r io
M e diu m &
H e av y C -V 64% 24% - 8% - 3% - <1% <1%
T r uc k s
B u s es– L , M
& HCV 40% 30% 7% 5% 10% 6% 1% 1% -
Lig ht & S m all
C o m m V –e h 59% <1% 32% 4% 3% 3% <1% - -
T r uc k s
F ig u r e s d e n o te M k t Sh-O
a rcte (Ap
0 5 )r
38
58
T he I nd ia n C V In dus tr y
In d ia n C V C h a rac t er is t ic s
In d u st ry
In dia n C V Ind us tr y
S im il ar w it h G l ob a• lC yc lica l 250
C V In d u st ry
200
150
CAG R : 5 %
Nosin'000
100
D is-s im ila r to • S ecu la r lo n g te rm g ro w t h t ren d
G lo b al C V I nd u s try
• L o w e r P o w er t o W e ig ht R at io s
50
• E arly st ag e o f ro ad d e vel o pm e n t 0
• L e ss d eg re e o f p ro du c t 72-771
76-75
78-777
86-885
199 6-97
3
90-989
74- 3
80-89
82-81
84- 3
88- 7
92-91
94-93
95
02-01
s o p hi st icat io n .
009-0
70-
8-9
• S tro n g p rice en t ry b a rriers crea te d
b y do m e st ic p la yers
39
59
Key Market Drivers
G rowth in E c onom ic Ac tiv ity
40
60
Ind ian CV Ind ustry: Trucks
The growth of the Commercial vehicle industry is critically dependent on Infrastructure
dev elopment & economic activity
Impact of Road development Impact of GDP G row th.
Dramatic impact in
1000 initial stage of road Stag e
1000
Gradual impact Stag e
development
900 900 Germany
Germany
800 800
France
700 UK n 700 France
n n o
it
n
o io
t 600 io
t a
l
UK
ti a
l Turkey a
rt u 600
a
rt u Spain e p
p 500 n o
e o 4 e p 500 Spain 4
n p Portugal p m
Portugal
e 400 Aus tralia /
p m k
k / Russi a c V 400
c V Argent ina u
r C Argent ina
u C 300 Brazil 3 T H Brazil
rT H M 300
M
Hungary 3
200
China
India (ASouth
L) Africa 2 200 Mexic o
Romani a China
100 Indonesi a 1 South Africa 2
I ndia 100 Indonesi a
0 I ndi a
1
0 0.5 1 1.5 2 0
0 5 10 15 20 25
61
Key Trends
M igrat io n f rom erst wh ile “B asic Average Power To Weight Ratios
M CV W orkhorse ” to “H ub & Of Sele cted Countries
S poke” Mode l
18 Europe
In creasing P ower to we ig ht 16
ratio 14
Japan
12 Bra zil
43
CHAPTER-4
62
STRATEGIC ANALYSIS
SWOT ANALYSIS OF TATA MOTORS
Strengths
management teams remain in place vs. installing Tata leaders from afar. 1+1
Weaknesses
• Tata Motors is not well positioned in the luxury segment. This is not a
• The Nano could sell well in other geographic markets. Expanding markets
• Jaguar and Land Rover provide Tata with an opportunity to establish itself in
Threats
• Powerful competitors for the luxury market including Honda, Toyota, Ford
• There is a trending rise in diesel fuel costs which will hurt Tata’s line of
products.
that the company has done of a very good job in the past five years of
for future success but like all businesses, faces significant challenges.
64
BCG PRODUCT PORTFOLIO MATRIX OF TATA
65
CHAPTER-5
CONCLUSION
66
TATA motor vehicles have a great brand image as a quality brand
in the market for motor vehicles in Mangalore as well as in the country. The
company is continuously thriving to ensure Total Quality service (TQS) and which
can be compared to the best in the world, produce power and economy cars for the
coste f f e c t i v e , q u a l i t y p r o d u c t s a n d s e r v i c e s o f i n t er n a t i o n a l s t a n d a
of efficiency and productivity within its plants and ancillaries. This project
d i s t r i b u t i o n c o m p a n y i n India.
Findings:-
67
• Tata Motors is a number three in passenger car market after
• Out of the samples, people are highly convinced that Tata Motors will
well in mid size and small size segment so the Indica may be a good
options for the company in this terms for sustaining sales in long run
• Product will have a gradual progress because most industries will wait
Motors.
Suggestions:-
Based on the findings from the analysis, the following suggestions could be
made:
68
• Demo of the product should be made available to
figuring in the top 3 selling list of cars for most of the years.
BIBLIOGRAPHY
Websites:-
• www.tata.com
69
• www.tatamotors.com
• www.google.com
• www.scribd.com
• www.slideshare.net
• www.wikipedia.org
• docs.google.com
• www.moneycontrol.com
70