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UNIVERSITY OF MUMBAI
PROJECT REPORT
ON
INTERNATIONAL MARKETING OF TATA MOTORS
BY
MR. JITEN H MENGHANI
ROLL NO 28
M.COM. (PART-2)
ACADEMIC YEAR 2014-2015
PROJECT GUIDE
PROF.MRS.KANCHAN FULMALI
PARLE TILAK VIDYALAYA ASSOCIATION’S
M.L.DAHANUKAR COLLEGE OF COMMERCE
DIXIT ROAD, VILE PARLE (EAST)
MUMBAI-400 057
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DECLARATION
I, MR. JITEN H MENGHANI OF PARLE TILAK
VIDYALAYA
ASSOCIATION’S, M.L.DAHANUKAR COLLEGE OF
COMMERCE of M.COM (PART-2) (Semester - 3) hereby
Declare that I have completed this project on
INTERNATIONAL MARKETING OF TATA MOTORS in
The Academic year 2014-2015. The information
Submitted is true & original to the best of knowledge.
-----------------------
(Signature of student)
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ACKNOWLEGEMENT
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this project
I take this opportunity to thank the University of Mumbai for
giving me chance to do this project.
I would like thank my Principal, Dr. Madhavi.S.Pethe
for providing the necessary facilities required for completion of
this project.
I would also like to express my sincere gratitude towards my
project guide PROF. KANCHAN FULMALI whose guidance and care
made the project successful.
I would like to thank my college library, for having provided
Various reference books and magazines related to my project.
Lastly I would like to thank each & every person who directly
or indirectly helped me in completion of the project especially
my parents & peers who supported me throughout my project.
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Content
1. History of TATA Motors
2. Product range of the company
3. Milestones
4. Achievements / Recognitions
5. Expansion
a) TATA motors technology and design subsidiaries
b) TATA technology Limited
c) TATA motors Europeans technical centre
6. Operations
a) TATA in India
b) TATA’S Global Operations
7. Business Excellence
a) TATA Quality Management Services
b) TATA Business Excellent Model
c) Climate change policy for TATA companies
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8. Global Presence
a) TATA in Asia Pacific
b) TATA in China
c) TATA Motors in North America
o Retail Production of TATA Motors in North America
d) TATA In South America
e) TATA Motors unveils Assembly plant in South Africa
f) Main accusation of TATA Motors
g) TATA Motors in UK
o TATA Motors Boosts UK Production areas
h) TATA Motors in Africa
i) TATA Daewoo Commercial vehicle Company in South Korea
9. Joint Ventures of TATA Motors
10.Internationalizations
a) Korean Operations
b) South African Operations
c) Thailand Operations
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d) Latin American Operations
e) How to replicate this strategy’s for other markets
f) Recommendation Matrix
o Tangible
o Intangible
o Capabilities
11. SWOT Analysis
a) Advantage of SWOT Analysis
b) Limitation of SWOT Analysis
12.Contingency Plans
13.Conclusion
14.Bibliography
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History Of TATA Motors
Tata Motors was established in 1945 as Tata Engineering and Locomotive Co. Ltd. to
manufacture locomotives and other engineering products. It is India's largest automobile
company, with standalone revenues of Rs. 25,660.79 crores (USD 5.5 billion) in 2008-09. 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. The
company is the world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer.
The company's 23,000 employees are guided by the vision to be 'best in the manner in
which they operate best in the products they deliver and best in their value system and ethics.
'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 company's 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 power trains. The company is
establishing a new plant at Sanand (Gujarat). The company's dealership, sales, services and spare
parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India.
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 an international automobile
company. Through subsidiaries and associate 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 rechristened
Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean
market, while also exporting these products to several international markets. Today two-thirds of
heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata
Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being
expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a
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global leader in body-building for buses and coaches to manufacture fully-built buses and
coaches for India and select international markets. In 2006, Tata Motors entered into joint
venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has
begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand
at the Bangkok Motor Show 2008.
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 franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia and Senegal.
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 2,000 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in
South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously
developed Light Commercial Vehicle, India's first Sports Utility 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, India's first indigenously developed mini-truck.
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 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).
In May 2009, Tata Motors 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. In
their power, speed, carrying capacity, operating economy and trims, they will introduce new
benchmarks in India and match the best in the world in performance at a lower life-cycle cost.
Through its subsidiaries, the company is engaged in engineering and automotive
solutions, construction equipment manufacturing, automotive vehicle components manufacturing
and supply chain activities, machine tools and factory automation solutions, high-precision
tooling and plastic and electronic components for automotive and computer applications, and
automotive retailing and service operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to
Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is
engaged in community and social initiatives on labour and environment standards in compliance
with the principles of the Global Compact. In accordance with this, it plays an active role in
community development, serving rural communities adjacent to its manufacturing locations.
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Product range of the company includes
Passenger Cars:
 Indica Vista, Indica V2, indica V2 Turbo,
 Indica V2 Xeta, Indica V2 Dicor Indigo XL, Indigo,
Indigo Marina Indigo CS.
 Nano.
 Fiat Cars.
Utility Vehicles:
 Safari Dicor.
 Sumo Grande.
 Sumo.
 Xenon XT.
Truks:
 Medium & Heavy Comm. Vehicles, Tata Novus.
 Intermediate Comm. Vehicles.
 Light Commercial Vehicles,
 Small Commercial Vehicles.
Commercial Passenger Carriers:
 Buses.
 Winger.
 Magic
Defence Vehicles
Subsidiaries of the company:
 Jaguar Land Rover.
 Tata Technologies Ltd. (TTL) and its subsidiaries.
 Telco Construction Equipment Co. Ltd. (Telcon).
 HV Axles Ltd. (HVAL).
 HV Transmissions Ltd. (HVTL).
 TAL Manufacturing Solutions Ltd. (TAL).
 Sheba Properties Ltd. (Sheba).
 Concorde Motors (India) Ltd. (Concorde).
 Hispano Carrocera S. A. (HC).
 Tata Motors Insurance Broking &
 Advisory Services Ltd (TMIBASL).
 Tata Motors European Technical Centre plc.
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Milestones
 1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives
and other engineering products.
 1948 Steam road roller introduced in collaboration with Marshall Sons (UK).
 1954 Collaboration with Daimler Benz AG, West Germany, for manufacture of medium
commercial vehicles. The first vehicle rolled out within 6 months of the contract.
 1959 Research and Development Centre set up at Jamshedpur.
 1961 Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
 1966 Setting up of the Engineering Research Centre at Pune to provide impetus to automobile
Research and Development.
 1971 Introduction of DI engines.
 1977 First commercial vehicle manufactured in Pune.
 1983 Manufacture of Heavy Commercial Vehicle commences.
 1985 First hydraulic excavator produced with Hitachi collaboration.
 1986 Production of first light commercial vehicle, Tata 407, indigenously designed, followed
by Tata 608.
 1989 Introduction of the Tatamobile 206 - 3rd LCV model.
 1991 Launch of the 1st indigenous passenger car Tata Sierra. TAC 20 crane produced. One
millionth vehicle rolled out.
 1992 Launch of the Tata Estate.
 1993 Joint venture agreement signed with Cummins Engine Co. Inc. for the manufacture of
high horsepower and emission friendly diesel engines.
 1994 Launch of Tata Sumo - the multi utility vehicle. Launch of LPT 709 - a full forward
control, light commercial vehicle. Joint venture agreement signed with M/s Daimler - Benz /
Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India. Joint venture
agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers to be used on
Cummins engines.
 1995 Mercedes Benz car E220 launched.
 1996 Tata Sumo deluxe launched.
 1997 Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out.
 1998 Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicle rolled out.
Indica, India's first fully indigenous passenger car launched.
 1999 115,000 bookings for Indica registered against full payment within a week. Commercial
production of Indica commences in full swing.
 2000 First consignment of 160 Indicas shipped to Malta. Indica with Bharat Stage 2 (Euro II)
compliant diesel engine launched. Utility vehicles with Bharat 2 (Euro II) compliant engine
launched. Indica 2000 (Euro II) with multi point fuel injection petrol engine launched. Launch
of CNG buses. Launch of 1109 vehicle - Intermediate commercial vehicle.
 2001 Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of
CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's number one car in its
segment. Exits joint venture with Daimler Chrysler.
 2002 Unveiling of the Tata Sedan at Auto Expo 2002. Petrol version of Indica V2 launched.
Launch of the EX series in Commercial vehicles. Launch of the Tata 207 DI. 2,00,000th Indica
rolled out. 5,00,000th passenger vehicle rolled out. Launch of the Tata Sumo'+' Series Launch
of the Tata Indigo. Tata Engineering signed a product agreement with MG Rover of the UK.
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 2003 Launch of the Tata Safari Limited Edition. The Tata Indigo Station Wagon
unveiled at the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary, Tata
Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover
rolled out 135 PS Tata Safari EXi Petrol launched Tata SFC 407 EX Turbo launched
 2004 Tata Motors unveils new product range at Auto Expo '04. New Tata Indica V2 launched
Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement Indigo
Advent unveiled at Geneva Motor Show Tata Motors completes acquisition of Daewoo
Commercial Vehicle Company Tata LPT 909 EX launched Tata Daewoo Commercial Vehicle
Co. Ltd. (TDCV) launches the heavy duty truck 'NOVUS' , in Korea Sumo Victa launched
Indigo Marina launched Tata Motors lists on the NYSE
 2005 Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune The
Tata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches - Starbus and
Globus - launched Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus
manufacturing Company Tata Ace, India's first mini truck launched Tata Motors wins JRD QV
award for business excellence. The power packed Safari Dicor is launched Introduction of
Indigo SX series - luxury variant of Tata Indigo Tata Motors launches Indica V2 Turbo Diesel.
 2006 Tata Motors vehicle sales in India cross four million mark Tata Motors unveils new long
wheel base premium Indigo & X-over concept at Auto Expo 2006 Indica V2 Xeta launched
Passenger Vehicle sales in India cross one-million mark Tata Motors and Marcopolo, Brazil,
announce joint venture to manufacture fully built buses & coaches for India & markets abroad
 2007 Construction of Small Car plant at Singur, West Bengal, begins on January 21 New 2007
Indica V2 range is launched Tata Motors launches the longwheel base Indigo XL, India's first
stretch limousine Common rail diesel (DICOR) engine extended to Indigo sedan and estate
range Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), announce
formation of a joint venture company in Thailand to manufacture, assemble and market pickup
trucks. Roll out of 100,000th Ace Tata-Fiat plant at Ranjangaon inaugurated Launch of a new
Upgraded range of its entry level utility vehicle offering, the Tata Spacio.
 2008 Ace plant at Pantnagar (Uttarakhand) begins production. Indica Vista the new generation
Indica, is launched. Tata Motors' new plant for Nano to come up in Gujarat. Latest common rail
diesel offering- the Indica V2 DICOR, launched. Indigo CS (Compact Sedan), world first sub
four-metre sedan, launched. Launch of the new Sumo -- Sumo Grande, which combines the
looks of an SUV with the comforts of a family car. Tata Motors unveils its People's Car, Nano,
at the ninth Auto Expo. Xenon, 1-tonne pick-up truck, launched in Thailand. Tata Motors signs
definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover. Tata
Motors completes acquisition of Jaguar Land Rover. Tata Motors introduces new Super Milo
range of buses. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III
Commonwealth Youth Games Pune 2008. Indica Vista the second generation Indica, is
launched. Tata Motors launches passenger cars and the new pick-up in D.R. Congo.
 2009 Tata Marcopolo Motors' Dharwad plant begins production. Tata Motors launches Nano -
The People's Car Introduction of new world standard truck range. Launch of premium luxury
vehicles - Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and
Range Rover from Jaguar and Land Rover in India.
 2010: Tata Ace becomes India's first 1-lakh brand in goods commercial vehicles. Jaguar Land
Rover announces opening of its Dealership in New Delhi. Tata Motors to construct heavy truck
plant in Myanmar under Government of India's Line of Credit. The company Passenger Car
Division launches Tata Motors Service Edge' for leading edge customer service.
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 2011: Tata Motors unveils Assembly Plant in South Africa. Jaguar Land Rover
inaugurates new vehicle assembly plant in Pune India. Jaguar celebrates 50 years of iconic E-
Type. Jaguar c-x75 scoops Louis Vuitton award in Paris. Tata Pixel, new city car concept for
Europe, displayed at the 81st Geneva Motor Show. Tata Motors displays Tata Nano EV at the
80th Geneva Motor Show.
=
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Achievements/ Recognition
 Tata Motors among India’s most Trusted Brand in cars
 Tata Motors wins award at the Bangkok International Motor Expo
 Tata Motors - Investor Relations ranked first in India
 Nirmal Gram Puraskar awarded to Potka panchayat.
 Tata Motors bags the NDTV Profit Business Leadership Award 2008
 Tata Motors awarded the Top Exporter Trophy by EEPC
 CVBU Pune wins Rajiv Gandhi National Quality Award for 2007.
 PCBU bags Handa Golden Key Award.
 Tata Motors receives Uptime Champion Award 2007
 Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL
 'NDTV Profit' Business Leadership Award
 Tata Motors bags National Award for Excellence in Cost Management.
 Tata Motors' TRAKIT bags silver award for 'Excellence in Design'
 Tata Motors Pune - CVBU has bagged the 'Golden Peacock National Quality Award
 Tata Motors was awarded four prestigious honours, at the 'CNBC TV18- Autocar.
 Tata Motors chosen as India's Most Trusted Brand in Cars.
 Business today selects Mr. P.P. Kadle as India's Best CFO in 2005.
 Pune Foundry Division bags prestigious Green Foundry Award.
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
 ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards.
 Jamshedpur bags National Energy Conservation Award for the fourth consecutive year. Tata
Motors bags the prestigious' CII-EXIM Bank award' for business excellence.
 Tata Motors receives JRD QV awards for Business Excellence.
 'Car Maker of the Year' Award for Tata Motors.
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
 TNS Voice of the Customer Award for Indica Diesel.
 'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive Director
 Tata Motors wins the prestigious 'Corporate Platinum' Award Tata Motors wins 'Golden
Peacock Award' for Corporate Social Responsibility.
 Tata Motors CVBU Pune wins National Energy Award.
 Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'.
 Tata Motors wins the first CSIR Diamond Jubilee Technology Award.
 Tata Motors Training Division Wins 'Golden Peacock National Training Award 2004'.
 Tata Motors case study wins first prize in iiie productivity contest.
 Tata Motors wins award for fair business practices.
 Tata Indica and Tata Safari EXi win awards.
 Tata Motors-Car plant gets two ISO certifications.
 Tata Motors bags awards at 14th National Convention of INSAAN
 Indica and Safari win accolades
 Tata Motors pune awarded second place in national level competition in energy co.
 Tata Motors Receives 'India's Best Employer' Award from the Employe.
 Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award institute
 CVBU receives commendation certificate for 'strong commitment to TQM'.
 Tata Motors team wins The Runners up Position at The Asian Business Simulation
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 The Prestigious Balanced Scorecard Collaborative Hall Of Fame Award
 Tata Motors receives all India trophies for Top Exporters
 Tata Indigo ad campaign wins Effie award
 Golden Peacock Environment Management Award - 2003
 Industry and Technology Award, 2002
 ET Zig Wheel Awards 2009
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Expansion
After years of dominating the commercial vehicle market in India, Tata Motors entered
the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After
the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier
'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998,
India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous
passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent
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 became a mass-favorite.
Tata Motors also successfully exported large quantities of the car to South Africa. The success of
Indica in many ways marked the rise of Tata Motors.
Tata Motors technology and design subsidiaries
Tata has dozens of technology and design subsidiaries. These include the main ones.
Telco Construction Equipment (TELCON) TELCON is a joint venture between Tata
Motors and Hitachi, which focuses on excavators and other construction equipment. And
research work is done.
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HV Transmission (HVTL) and HV Axles (HVAL)
HVAL and HVTL are 85% subsidiary companies of Tata Motors engaged in the business
of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with
production facilities and infrastructure based at Jamshedpur.
Tata Technologies Limited (TTL)
TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata
Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in
the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It
also has a presence in Thailand.
Tata Technologies is a software service provider in the IT services and BPO space. Its
global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought
over the British engineering and design services company, Incat International Plc for Rs.4 billion
in August 2005. Incat specializes in engineering & design services and product lifecycle
management in the international automotive, aerospace and engineering markets. With this
acquisition, Tata Motors will have closer proximity to its global customers and be able to provide
a wider range of services.
Tata Motor European Technical Centre
Tata Motor European Technical Centre is Tata's subsidiary based in the UK. It was the
joint developer of the World Truck.
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Operations
Tata in India
Tata Motors Limited is India’s largest automobile company, with revenues of 35,651.48
crore (US$7.23 billion) in 2007–08. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles in India with products in the compact, midsize car and
utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata
vehicles have been produced domestically since the first Tata vehicle was assembled in 1954.
The company’s 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, Tata 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). Tata's dealership,
sales, service and spare parts network comprises over 3500 touch points. Tata Motors also
distributes and markets Fiat branded cars in India.
 Sales & Service Network
Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4
Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki
and Hyundai.
Tata's global operations
Tata Motors has been in the process of acquiring foreign brands to increase its global
presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain.
Among these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic
British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired
the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The re-
branded Tata Daewoo Commercial Vehicles Company has launched several new products in the
Korean market, while also exporting these products to several international markets. Today two-
thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005,
Tata Motors acquired a 21% controlling stake in Hispano Carrocera, a Spanish bus and coach
manufacturer. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with
Tata Daewoo Debuting in South Korea, South Africa, the SAARC countries and the Middle-East
by the end of 2009. In 2006, Tata formed a joint venture with the Brazil-based Marcopolo to
manufacture fully built buses and coaches for India and other international markets. Tata Motors
has expanded its production and assembly operations to several other countries including South
Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey,
Indonesia and Eastern Europe. Tata also has franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4
continents. Though Tata is present in many countries it has only managed to create a large
consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and
Nepal. Tata has a growing consumer base in Italy, Spain and South Africa.
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Business Excellence
A key vector that has helped Tata companies grow and establish themselves on the global
stage as business leaders in their respective fields is the strong business excellence movement in
the group.
One of the initiatives in the business excellence movement is a framework known as the
Tata Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm
Baldrige archetype. TBEM assesses core aspects of business operations: leadership, strategic
planning, customer focus, measurement, analysis and knowledge management, workforce focus,
process management and business results.
The model works under the aegis of Tata Quality Management Services (TQMS), an in-
house organization mandated to help different Tata companies achieve their business excellence
and improvement goals.
In recent years, the TBEM framework has been adapted to include new business and
societal initiatives such as governance, safety, climate change and innovation.
The other core elements of the Tata business excellence movement are the Tata Code of
Conduct (TCoC), a mandatory pan-Tata policy that defines how Tata employees can conduct
themselves, and the Management of Business Ethics, a programme that helps Tata companies
drive ethics and values in the organization.
Since the 1990s, there is a formal arrangement that governs the relationship between
individual Tata companies and the superstructure that is the Tata group. In order to use the Tata
nomenclature, a group company has to sign a contract called the Brand Equity and Business
Promotion (BEBP) Agreement. This places an obligation on the company signing on to adopt
TBEM and TCoC as a means to attaining business leadership.
As a result, the business excellence processes have come to characterize the Tata way of
enhancing and conducting its business endeavours, and to a great extent, have helped define the
Tata brand.
The TBEM movement in Tata has a built-in reward and recognition mechanism wherein
companies that have achieved a score of 600 on the TBEM framework are felicitated with the
JRD QV Award.
Tata Quality Management Services (TQMS)
Tata Quality Management Services (TQMS), a division of Tata Sons (the principal
promoter company of the Tata group of companies), is a trusted partner, working closely with
Tata companies to achieve their business excellence and improvement goals.
TQMS collaborates with group companies, through long and short-term initiatives, in the
areas of innovation, climate change, business ethics, customer focus, improvement, strategy
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development, safety, human resource, process improvement, corporate governance,
training and affirmative action.
Through TBEM, TQMS helps Tata companies gain insights on their strengths and their
opportunities for improvement. This is managed through an annual process of 'applications and
assessments'. Each company writes an application wherein it describes, in the context of the
TBEM matrix, what it does and how it does it. This submission is then gauged by trained
assessors, who study the application, visit the company and interact with its people. The
assessors map out the strengths and improvement opportunities existing in the company before
providing their feedback to its leadership team.
TQMS trains and certifies assessors, who are selected from across the group, and it
designs and administers an assessment apparatus that helps them evaluate different Tata
companies. The contact point person in each company is the 'corporate quality head', nominated
by the CEO as the business excellence process owner. Typically, each company has a network of
business excellence people from a variety of functions and locations.
The commitment a company makes when it signs the BEBP contract compels it to attain
explicit business excellence scores over specific time periods. A result-driven scoring
mechanism enables the company to track its progress over time, and ensure that it keeps
improving. There is also an annually administered, group-wide recognition system for companies
that exceed a certain score, thereby reflecting excellence, industry leadership and consistent
improvement.
Implicit in the TQMS approach is the belief that its wide-ranging methodology will
enable Tata companies to become exemplars — on business as well as ethical parameters — in
their respective spheres.
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Tata Business Excellent Model (TBEM)
TBEM methodology has been molded to deliver strategic direction and drive business
improvement. It contains elements that enable companies following its directives to capture the
best of global business processes and practices. The model has retained its relevance thanks to
the dynamism built into its core. This translates into an ability to evolve and stay in step with
ever-changing business performance parameters.
The TBEM matrix is used for the organizational self-assessment of Tata companies,
recognition and awards, and for providing feedback to applicants. In addition, TBEM plays three
important supportive roles in strengthening the competitiveness of Tata companies:
 It helps improve business excellence practices, capabilities and results.
 It facilitates communication and sharing of best practices among Tata companies.
 It serves as a working tool for understanding and managing performance, for providing
planning guidance, and for identifying learning opportunities.
The TBEM methodology comprises a set of questions that applicant Tata companies have to
answer. Its main objectives are to enhance value to customers and contribute to marketplace
success. The core values and concepts of TBEM are embodied in seven categories: leadership;
strategic planning; customer focus; measurement, analysis and knowledge management;
workforce focus; process management; and business results. The TBEM system focuses on
certain key areas of business performance: customer-focused results; product and service results;
financial and market results; human resource results; organizational effectiveness results;
governance and social responsibility results.
Climate change policy for Tata companies
Tata companies will play a leadership role in
climate change by being knowledgeable, responsive
and trustworthy, and by adopting environment-friendly
technologies, business practices and innovation, while
pursuing their own growth aspirations and the
enhancement of shareholder value. Tata companies
will measure their carbon footprint and will strive to:
 Be the benchmark in their segment of industry
on the carbon footprint, for their plants and
operations.
 Engage actively in climate change advocacy
and the shaping of regulations in different business sectors.
 Incorporate ‘green’ perspective in all key organizational processes.
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Global Presence
Tata in Asia Pacific
Asia Pacific is a key market for the
Tata group as it enjoys a strong brand
presence in the region — apart from the
Indian sub-continent, Tata is present in
Singapore, Thailand, Vietnam, Indonesia,
Malaysia, the Philippines, South Korea,
Australia and China.
Although most Tata companies are
headquartered in India, the group's growing
global spread has resulted in the Asia Pacific
region becoming a significant base of
operations as well. Singapore is the
headquarters of Tata Technologies and Tata
NYK and also the regional headquarters of
Tata Consultancy Services.
Several Tata companies have set up manufacturing plants, sales and marketing operations
and representative offices around the region. For instance, NatSteel, a Tata Steel company, is the
leading provider of steel in the region with plants and bases in several Asia Pacific nations. A
significant portion of Tata Communications network is located in the area.
Tata Motors has two large operations — Tata Daewoo in South Korea and Thonburi
Automotive Assembly Plant Company in Thailand. Indian Hotels has set up several Taj
properties in the area, including its luxury getaways in Malaysia, Bhutan and the Maldives, and
the Blue in Sydney.
Tata in China
China is a critical and growing
market for the Tata group, which has a
bit of history with regard to doing
business with the Middle Kingdom. In
1859, a young Jamsetji Tata, the
founder of the Tata group, was sent to
Hong Kong to open a branch for his
father's banking firm. He relocated a
few months later to Shanghai, where
he remained till 1863.
Currently the Tata group has a
fairly significant presence in China,
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with the number of companies and operations growing steadily. Tata companies employ
over 2,600 employees in China, generated $3 billion worth of sales in the country and purchased
goods and services worth $700 million in 2010. Recognizing the potential for high growth in
existing businesses and opportunities for new ones, Tata Sons, the group promoter company, has
set up representation in China.
Tata Motors in North American
Tata TTM -0.36% has received twice as many orders for the $2,000 micro car as it is set
up to deliver through 2010. Some investors nevertheless expressed dismay Tuesday,
disappointed that Tata didn't haul in even more orders.
It's a problem anyone still holding stock in Ford F +0.68% or General
Motors GM +0.04%might relish. Detroit need not fear an imminent incursion of home turf by the
Nano. There are no Tata Motors distributorships in North America, creating a protective buffer
zone that for the time being affords a good chuckle.
Seriously. What's the likelihood that a car with a 650 cc, two-cylinder engine with a top
speed of 63 mph poses a threat to anything larger than a scooter?
America has a long history of making fun of little foreign cars. Back in the 1950s, it was
the Volkswagen Beetle. But then it sort of caught on. In the 1960s, the jokes were aimed at those
little Japanese imports from Toyota and Datsun. And who can forget those dinky Honda Civics?
All were dismissed as cheap knock-offs of what we knew to be real cars.
Then came the 1973 Arab oil embargo, gasoline shortages, and suddenly our precious
land yachts were being swapped at par for those little foreign jobs that, despite initial skepticism,
seemed to holding up pretty well after all.
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Gradually the U.S. auto industry realized it was losing home court advantage to
the imports. The backlash was painful and palpable. No one in their right mind would park a
Toyota on the streets of the Motor City without fearing it would be keyed by some angry patriot.
While the Nano grabs headlines, it's only the latest model in a Tata lineup of sedans,
SUVs and commercial vehicles. Tata has a distributor network that spans parts of Europe, Asia
and Africa. And it is in full growth mode, teamed up with Fiat IT:F +3.18% and capitalizing on
some staggering production advantages when sized up against North American competitors.
Given the evolution of the industry over the past 60 years, Tata is bound to face lots of
jokes. But Detroit needs to take this relative newcomer deadly serious because they are going to
find themselves in head-to-head competition for many of the same overseas customers and, just
as importantly, the same pool of investor capital.
Retail Production of Tata Motors in north American
Tata motors is considering
pooling engine production. Ratan Tata,
chairman of the Indian holding group
whose automotive business owns Jaguar
Land Rover, has spoken of setting up
joint engine production for its mass-
market Indian operations and the two
UK premium brands.
JLR, which specializes in high-
end executive saloons and four-by-fours,
had in the past spoken of building
engines in the UK or India, but this is
the first time Tata Motors has spoken of
combining the two parts of its business.
“To optimize the synergetic
strengths between JLR and Tata Motors in India, an examination is also under way on a joint
engine development programme which would have manufacturing facilities both in the UK and
India”, Mr Tata said in the company’s annual report, released on Monday.
JLR currently gets its engines from Ford Motor, which sold the premium carmakers to
Tata for $2.3bn in 2008.
Joint engine development with India’s largest carmaker – best known for the tiny, cheap
Nano – could be a sensitive topic for Jaguar and Land Rover on the competitive premium-car
market. Tata is investing at least £5bn over the next five years to improve the quality of the car
brands’ products and designs, as it takes on Germany’s larger premium car marques.
Jaguar’s image took a knock under Ford’s ownership, when the brand’s X-Type car was
criticized for having too much in common with the Ford Mondeo. However, since then
carmakers – including the German premium producers – have established increasingly global
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manufacturing operations or teamed up with mass-market rivals, as they seek to cut costs
and build cars closer to where they sell them.
BMW and Daimler’s Mercedes-Benz brand make cars in the US, and rival premium
brand Audi is considering a US production site. Daimler is co-operating with mass-market
carmakers Renault and Nissan in areas including small cars and commercial vehicles.
Chas Hallett, editor of Britain’s What Car magazine, said: “I don’t think where things are
made has any bearing on consumers any more. What’s more important are that [JLR’s] cars are
engineered and designed in Britain. Where they’re actually manufactured is irrelevant”.
Jaguar and Land Rover have rebounded strongly since the financial crisis, on the back of
reviving global demand for premium cars and well-reviewed products such as the recently
launched Range Rover Evoque.
In an interview last month, Ralf Speth, JLR’s chief executive, said that the carmakers had
not yet decided on an engine strategy.
Mr Speth said: “We have a long-term contract with Ford. We don’t need another
partner.” However, he added that if JLR decided to produce its own engines, the company might
do so “either in the UK or in India or both”.
Industry observers widely expect the UK carmakers to develop their own capacity for
what is seen as a core automotive technology. Rival UK premium carmaker Aston Martin, which
Ford sold in 2007, said earlier this month it had extended an agreement to buy engines from
Ford, due to lapse in 2012, for at least four more years.
Tata in South America
The Tata group has had a presence in South America since the 1990s, principally through
Tata Consultancy Services (TCS), which started its first project in Brazil. Since then the
company has expanded its reach to 14 countries in the region and today serves more than 150
clients. TCS employs more than 5,000 people across the South American continent, which is a
strategic base in the company’s operations to service customers in the US and Europe.
Among the other Tata companies that have businesses in the region are Tata Motors and Rallis.
Additionally, Tata Steel Europe, Tata Chemicals, Tata Communications and Tata International
have a sales presence in the region.
Tata Motors unveils Assembly Plant in South Africa
Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding
(Pty) Ltd., today formally opened its assembly plant in South Africa at Rosslyn, north of
Pretoria, in the Gauteng province of South Africa. The establishment of the plant is a major step
towards bolstering the operations and presence of the Tata Group in South Africa.
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The plant was inaugurated by South Africa's Minister of Trade & Industry, Dr.
Rob Davies, in the presence of top dignitaries from South Africa and India. Among them were
Mr. Noel N. Tata, Managing Director, Tata International, Mr. Carl-Peter Forster, Group CEO
and Managing Director, Tata Motors, Mr. Raman Dhawan, Managing Director, Tata Africa, as
well as dealers and key associates of the company.
Established with an investment of R110 million, the plant can assemble, from semi
knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes
to 50 tonnes, with an annualised capacity of 3,650 vehicles. The capacity can be further
expanded as required. The plant has been awarded with ISO 9001 accreditation by Bureau
Veritas, South Africa. To begin with, it is assembling two models, the Tata LPT 813 and Tata
LPT 1518, both already popular in South Africa.
Speaking at the event, Dr. Rob Davies said that the launch of the plant can be attributed
to South Africa's investment friendly policies. He said that the project comes at a time when the
department is aggressively pursuing an industrial development strategy for the South African
Medium and Heavy Commercial Vehicle (M&HCV) sector.
"The key focus area of the MHCV strategy is based on: Support for Market Development
(Local and Regional), development of OEM Production Capabilities and the Strengthening of the
Supply Chains (1st tier Supplier base). Industry role players have and still are part of the
extensive consultation process that accompanies the development of such a strategy. This will be
an opportunity for further expansion of Tata Motors in South Africa," added Dr. Davies
Speaking on the occasion, Mr. Carl-Peter Forster said, "With a comprehensive product
portfolio, Tata Motors is now at a stage where it can consolidate its international business in its
chosen markets. The assembly plant in South Africa is an expression of that resolve. Step by
step, we shall expand the footprint of our international business matching markets and products."
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Mr. P. M. Telang, Managing Director - India Operations, Tata Motors, said, "We
are very proud to commence assembly operations in South Africa, which has traditionally been
among our focus countries. It is integral to Tata Motors' international business presence and
plans. The company has already carved a niche for itself in the country and is confident of
greater opportunities."
Built over a period of 18 months, the plant is spread over an area of 34,500 sq. metres. In
line with latest world-class manufacturing practices, the plant has been equipped with state-of-
the-art equipment following lean manufacturing principles. It has built-in flexibilities to
assemble large numbers and different variants in mixed mode production, to meet the
requirements of the South African market.
The entire capital outlay, encompassing civil and plant engineering work for the facility,
has been sourced from and carried out by South African suppliers and companies. In addition, all
major equipment, like heavy duty cranes, inversion mechanisms and paint booth, have also been
sourced from South African vendors. The entire workforce of the plant is from South Africa.
Training, skill transfer and development of local workforce is one of the top priorities of
the Tata Group in South Africa. The Tata Group's training processes and facilities in India have
been acknowledged as among the best. Leveraging this expertise through a robust local skill
transfer and apprentice programme, Tata Motors South Africa is committed to ensuring that skill
levels of individuals employed in various industrial trades, such as auto mechanic, welder,
painter etc, are further enhanced. Tata has an already established state-of-the-art technical
training centre in Germiston, Johannesburg, operating since 2006, for skill development of dealer
mechanics in South Africa and various other countries in the continent.
Tata Motors started exports to South Africa in 1998, with commercial vehicles. Exports
of passenger vehicles began in 2004. Currently there are over 20 commercial vehicle models
.from pick-ups to 49 tonne prime movers and from 14-seater buses to luxury coaches -- and 5
passenger vehicle models Tata Indica Vista, Tata Indica, Tata Indigo, Tata Indigo SW and Tata
Safari in diesel & petrol variants catering to the needs of the South African market. The company
27 | P a g e
has thus far exported over 32,000 commercial vehicles and 31,000 passenger vehicles to
the country. Tata Motors' vehicles are available across 85 dealerships, through M/s Accordian
Investments (Pty) Ltd., the distributor for light commercial vehicles and passenger vehicles, and
M/s Tata Automobile Corporation SA (Pty) Ltd., the distributor for medium and heavy
commercial vehicles.
Main occupation of Tata Motors
Tata Motors is India's largest automobile company, with consolidated revenues of INR.
1,23,133 crores ($ 27 billion) in 2010-11. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, the business comprising the two iconic British brands. It also has an industrial joint
venture with Fiat in India. With over 5.9 million Tata vehicles plying in India, Tata Motors is the
country's market leader in commercial vehicles and among the top three in passenger vehicles. It
is also the world's fourth largest truck manufacturer and the third largest bus manufacturer. Tata
cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East,
South Asia, South East Asia and South America.
Tata Motors in UK
Tata Motors is the leader in commercial vehicles and among the top three in passenger
vehicles in India. It is also the world's fourth largest truck manufacturer and the second largest
bus manufacturer. Through subsidiaries and associate companies, Tata Motors has operations in
the UK, South Korea, Thailand and Spain. It also has a strategic alliance with Fiat.
In the UK, Tata Motors has set up the Tata Motors’ European Technical Centre in
Warwick, engaged in the business of design engineering and product development for the
automotive industry.
In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, to be launched
later in the year in India. A development that 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
high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby
providing the twin benefits of an affordable transportation solution with a low carbon footprint.
Tata Motors boosts UK production areas
The UK’s technology base has been given a major boost with the announcement that Tata
Motors’ European Technical Centre is to expand its partnership with experts at Warwick
University.
The TMETC plans to increase its team of highly skilled engineers by 40 per cent over the
next two years. Multinational automotive group Tata Motors has invested more than 85 million
pounds in research and development (R&D) at TMETC since it was established on the university
campus in 2005.
It already has a team of 240 engineers and researchers working alongside colleagues in
university department WMG, with 60 of these hired over the last 12 months because of increased
28 | P a g e
R&D investment. The TMETC aims to increase the engineering and research force by a
further 100 to 340 by 2013.
Tata Motors is India’s largest automobile company, headquartered in Mumbai, with
revenues of 20 billion US dollars in 2009-10. The group is the leader in commercial vehicles and
among the top three in passenger vehicles.
In 2004, it bought the Daewoo Commercial Vehicles Company, South Korea’s second
largest truck maker. Along with many other stake holdings and joint ventures in other leading
automotive companies across the world, it owns the classic UK brands Jaguar and Land Rover.
Dr Tim Leverton, head of Advanced & Product Engineering at Tata Motors Limited, said
the announcement “represents a further demonstration of Tata’s long-term commitment to build
and develop R&D facilities here in the UK. TMETC plays a vital role in Tata Motors’ global
R&D network.
Tata Motors’ Pixel city car, which was unveiled at the 2011 Geneva Motor Show, has
also been developed on the WMG campus. Based on the Tata Nano, the Pixel is a concept
vehicle aimed at the European market and features a zero-turn infinitely variable transmission
that gives it a turning circle radius of 2.6 metres, making it ideal for dense urban environments.
At just over three metres in length the Pixel is claimed to be “the most package efficient
four-seater in the world,” comfortably accommodating four adults.
The zero-turn toroidal traction-drive transmission assists rotation of the outer rear wheel
forwards and the inner rear wheel backwards, while the front wheels turn at acute angles to
achieve its exceptionally tight turning circle radius.
“We plan to further increase our team on the campus by up to 100 over the next two
years, and are discussing establishing test and development facilities here. This shows a clear
commitment to build and develop our R&D and facilities in the UK in collaboration with WMG
for the long term.” This was supported by WMG’s director Professor Lord Bhattacharyya who
said “Technology businesses such as Tata are crucial to us solving global challenges that will
require new thinking energy, climate-change related technologies.
“Tata’s work alongside WMG will meet those challenges and will even lead the field in
new low-carbon technologies. Tata’s Pixel concept city car is a clear symbol of Tata’s current
technological prowess and its future aspirations.”
The partnership announcement came shortly after research by the Council for Industry &
Higher Education that indicates that the UK’s manufacturing sector could be re-energized by a
closer collaboration between companies and the science and technology departments at top
universities.
As well as working with more than 500 UK companies, the university’s WMG is an
international unit with collaborative centers in the UK, China, India, Malaysia, Russia, Singapore
and Thailand.
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Tata Motors is India's largest automobile company, with consolidated revenues of
Rs 92,519 crore ($20 billion) in 2009-10. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, the business comprising the two iconic British brands. It also has an industrial joint
venture with Fiat in India.
Tata Motors is the country's market leader in commercial vehicles and among the top
three in passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy
commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are
being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East
Asia and South America.
The company, formerly known as Tata Engineering and Locomotive Company, began
manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with
Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light
commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first
indigenously manufactured passenger car, and the Nano, the world's cheapest car.
Tata Motors in Africa
In a period of just three years, Tata Motors has emerged as the third-largest player in South
Africa's commercial vehicles market, and one of the fastest growing brands in the passenger
vehicles segment
Tata Motors has played a major role in Tata Africa's origins and current operations in Africa.
The journey began in the 1970s with the marketing of Tata Motors' heavy vehicles in Zambia.
In the 1990s, Tata Africa expanded its automotive operations to Tanzania, Zimbabwe, Malawi,
Namibia, Mozambique, Uganda and Ghana. Today, Tata Motors' vehicles enjoy leading
positions in several vehicle segments in South Africa and Zambia.
Tata Motors offers a range of passenger, multi-utility and commercial vehicles:
Passenger cars:
The popular Indica
Commercial vehicles:
Telcoline, an all-terrain vehicle suitable for both commercial and private use
Heavy commercial vehicles:
Tata Novus' new range of Tata Daewoo tippers and tractors
Tata Ubuntu and other bus models
Over the years, the company has established a strong distribution and marketing network with
the help of various country-specific Tata Africa subsidiaries. In Ghana, operations cover both
vehicle sales and after-sales. Tata Uganda, set up in 1994, conducts vehicle sales and after-sales
business. In Mozambique, Tata De Mozambique Lda (TDML) is engaged in sales and service of
Tata vehicles.
South Africa has played an important role in the success of Tata Motors in Africa. Launched in
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South Africa in 2004, the Indica set the record for the most successful car launched in the
country. A bus-body fabrication plant was set up in 2004 to build indigenously designed buses
that are now sold in Zambia, Ghana and Mozambique. The company enjoys a leading position
in tippers, medium commercial vehicles (MCV) and heavy vehicles. Recently, Tata Africa
Holdings has acquired a Nissan manufacturing plant in South Africa.
Sustaining its leading position in South Africa, the company recently introduced more
commercial and passenger vehicle models:
 Safari Dicor, to be available in early 2007.
 Commercial vehicles, new trucks (6 and 10 tonners), tippers (2-6 cubic metre capacity)
and bakkies (1.3-tonne flat-bed) are being launched. These vehicles are aimed at
meeting diverse transportation needs in South Africa.
The new models are on display at Auto Africa 2006 in Johannesburg. Exhibited along with new
models are, for the first time at the expo, two 'concept cars' — Tata Crossover, a 'crossover'
vehicle concept, and Tata Cliffrider, a multi-utility 'lifestyle' vehicle. Speaking about the new
models, Ravi Kant, managing director, Tata Motors, said, "Our endeavour now is to expand our
range with improved applications, to reach out to more customers and build a lifetime
relationship."
Future plans for South Africa are upbeat. "We are looking at increasing our logistical efficiency
besides considering options to set up an assembly unit in South Africa. We are also looking at
using South Africa as a source for components," says chief financial officer Praveen Kadle. The
only commercial vehicle assembly unit the company has outside India is in Bangladesh. Tata
Africa managing director, Raman Dhawan, defines future areas of growth and says, "Towards
the end of this year, we would be entering the Nigerian and Kenyan markets with our range of
commercial vehicles."
Apart from the stronghold the company has in South Africa, Tata Motors is among the top
automotive players in other countries as well.
Tata Daewoo Commercial Vehicle Company in South Korea
The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest
manufacturer of medium and heavy-duty trucks. Formerly part of the Daewoo Group, the
company was acquired by Tata Motors in 2004. With the acquisition of TDCV, Tata Motors has
grown to become the world's fifth largest manufacturer of heavy commercial vehicles.
Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo
Commercial Vehicle Company in 2002. TDCV trucks are distributed locally through Daewoo
Motor Sales Company and are exported to over 60 countries worldwide, including South Africa
and China and countries in the Middle East, Southeast Asia and Eastern Europe
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Joint Ventures of TATA Motors
Jaguar & Land Rover
Jaguar Cars, founded in 1922, is one of the world’s premier manufacturers of luxury
saloons and sports cars. Land Rover has been manufacturing 4x4s since 1948. Its products have
defined the segments in which they operate.
Jaguar Land Rover Automotive Trading (Shanghai) is the company that handles the
China operations of Jaguar Land Rover (JLR). The company's main activities are the import and
distribution of JLR's range of premium sedans and SUVs in China. Headquartered in Shanghai,
the company has a corporate office in Beijing, three distribution facilities (a fourth one to be
opened soon) and two technical training academies.
JLR China sells its exclusive range of products through a distribution network of
approximately 60 dealers, providing sales and service coverage across the country. In 2010, it
sold approximately 26,000 units in the country, making it the third largest market for Jaguar
Land Rover in the world. Given its size and maturity, China has the potential to become JLR's
largest global market within the next few years.
Jaguar Land Rover is a business built around two iconic British car brands that designs,
engineers and manufactures in the UK. With investment in product creation topping £1 billion a
year, Jaguar Land Rover is at the centre of the UK automotive industry’s drive to deliver
technical innovation in all areas of vehicle development. The Jaguar Land Rover business
directly employs more than 18,000 people and supports approximately 130,000 jobs (through
direct employment, dealers, suppliers and broader economy). Jaguar Land Rover exports
annually generate almost £6 billion for the UK economy with 78 percent of Land Rovers
exported to over 160 countries and 70 percent of Jaguars exported to over 60 countries. Jaguar
Cars Limited, founded in 1922, is one of the world’s premier manufacturers of luxury saloons
and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that define
'breadth of capability' in their segments.
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Internationalization
As a part of the company's new internationalization strategy, the company has decided to focus
on a narrow base of 14-15 countries where market conditions are similar to that of India. In these
countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales
teams. The idea is to have self sustained operations in this narrow band of countries. The
company evaluates locations on the basis of market opportunities and labour skills. In the
framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender,
and is focusing on expanding into markets similar to those of the home base, using competencies
developed at home
Where is Tata Motors now and How to Globalize?
Korean Operations
Tata Motors entered the advanced Korean Market by acquiring Daewoo, with which it has
tremendous synergies in terms of product strategy and R & D. Tata Motors has planned to use
this merger and leverage the technology for developing a World Truck for India and international
markets.
South African Operations
In the export market, Tata Motors moved from a fragmented approach to specific markets,
chosen in terms of consumer behavior, distribution networks, supply chain, etc. and identified
South Africa as one of the best markets. The sales in this region are about 15,000 units4
. This is a
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significant improvement over what Tata Motors was cumulatively exporting (8000 units)
before adopting its new internationalization strategy.
Thailand Operations
Tata Motors formed a joint venture with Thonburi Automotive Plant to enter Thailand. Thailand
is the second most competitive market for pickups, and the new pickup trucks developed here
will be sold in both domestic and export markets.
Latin American Operations
Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up truck, for Latin
American markets from Fiat's facility in Argentina. This arrangement will also see Tata Motors
forming a joint venture with a subsidiary of Iveco, the commercial vehicle division on Fiat, to set
up a distribution network.
Now that Tata Motors has established a sustainable model in some countries, its main challenge
is to replicate this model in other countries as well.
How to replicate this strategy for other markets?
Sustainable competitive advantage lies not in one, but a combination of multiple resources, each
of which individually need not
necessarily be the best, but in
overall weighted average terms,
presents the best solution. For
Tata Motors, the combination of
resources providing it
competitive superiority on a
weighted average basis includes:
1. Product Reliability
2. Service Network
3. Channel Reach Three-way Resource Based View
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In terms of product reliability, Tata Motors offers products of reasonably high standards.
However, foreign players like Volvo and even local competitors like Ashok Leyland arguably
offer products that are far more refined. But this is more than compensated by a dependable
service network and extensive channel reach. Tata's service and distributor network is by far the
most extensive of any player in the trucks industry. Hence in overall weighted average terms,
Tata Motors still has a winning proposition.
Recommendation Matrix
Based on a close scrutiny of the resource based view of Tata Motors and the challenges it faces,
we propose a recommendation matrix arranged along three broad dimensions - Tangible,
Intangible and Capabilities
Three Dimensional Recommendation Matrix
Tangible
The strategies in this domain are primarily directed at sustaining Tata Motors' first mover
advantage with respect to its offering in the Small Commercial Vehicle segment - ACE.
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Intangible
Strategy Intangible Assets
Unique
Customer
Experience
In commercial vehicles industry, the uniqueness of customer experience is largely driven
by the efficacy of the 'Support' framework. If your car breaks down, you can take a taxi
to office. But that's not so for a transport operator. For him, his vehicle is at the heart of
his business and hence responsive after-sales support is critical. Minimizing downtime
calls for a service network that is highly responsive and easily accessible. Besides, Tata
Motors should also
1. Consider introducing mobile service units for Tata ACE that can respond to
customer calls anywhere within a given city.
2. Start treating "Services" as a dedicated profit center. Towards this end, the company
should "productize" annual maintenance contracts.
Brand
Reputation
Building a reputation will help sustain sales, without having to engage in discount sales.
Strategy Sustaining the First Mover's Advantage of ACE
National
Footprint
Tata Motors has an unparalleled network of dealers and service stations across the country
for Medium and Heavy Commercial Vehicles (M and HCV). However most of these service
stations are along inter-city routes. It would need to replicate this network at intra-city level
for its hugely successful SCV - the Tata ACE. For this Tata Motors can liaise with small
garages, train them and certify them as 'Tata Authorized Service Station'.
Product
Portfolio
Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata
Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as
a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose
positioning to a mass customization positioning for ACE, wherein multiple variants are
offered on the ACE platform, each uniquely suited for a specific application - such as tippers,
long base trawlers, milk carriers.
36 | P a g e
In intangible terms, Tata Motors needs to bolster its brand loyalty, by providing a unique
customer experience.
Capabilities
There are two broad capabilities that Tata Motors should seek to acquire.
Strategy Capability Acquisition
Technology
Appropriation
Technology Appropriation is the key to Tata Motor's ambitions to offer products with
engines larger than 210 HP. As the share of ultra heavy commercial vehicles grows,
the company will need to face up to technologically superior players like Volvo. Here,
Tata will have to carefully spearhead its 'World Truck' program by carefully
coordinating technology appropriation from its numerous international technology
partners, notably Daewoo, Fiat and Hispano.
Robust Supply
Chain
Tata Motors has made significant investments in IT systems to network its
countrywide service network. This helps them maintain very high spares parts
availability at their service stations and minimize downtime. In the years to come, it
would need to include their SCV service station within this framework. This will
however be a big challenge, since these service stations would largely be managed by
illiterate and not-so-tech-savvy repairmen.
37 | P a g e
SWOT Analysis
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,
Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some
measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be
external factors over which you have essentially no control.
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of
the business and its environment. Its key purpose is to identify the strategies that will create a firm
specific business model that will best align an organization’s resources and capabilities to the
requirements of the environment in which the firm operates. In other words, it is the foundation for
evaluating the internal potential and limitations and the probable/likely opportunities and threats from
the external environment. It views all positive and negative factors inside and outside the firm that
affect the success. A consistent study of the environment in which the firm operates helps in
forecasting/predicting the changing trends and also helps in including them in the decision-making
process of the organization.
An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given
below-
1. Strengths - Strengths are the qualities that enable us to accomplish the organization’s
mission. These are the basis on which continued success can be made and
continued/sustained. Strengths can be either tangible or intangible. These are what you are
well-versed in or what you have expertise in, the traits and qualities your employees possess
38 | P a g e
(individually and as a team) and the distinct features that give your organization its
consistency. Strengths are the beneficial aspects of the organization or the capabilities of an
organization, which includes human competencies, process capabilities, financial resources,
products and services, customer goodwill and brand loyalty. Examples of organizational
strengths are huge financial resources, broad product line, no debt, committed employees, etc.
2. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the
organizational success and growth. Weaknesses are the factors which do not meet the
standards we feel they should meet. Weaknesses in an organization may be depreciating
machinery, insufficient research and development facilities, narrow product range, poor
decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated.
For instance - to overcome obsolete machinery, new machinery can be purchased. Other
examples of organizational weaknesses are huge debts, high employee turnover, complex
decision making process, narrow product range, large wastage of raw materials, etc.
3. Opportunities - Opportunities are presented by the environment within which our
organization operates. These arise when an organization can take benefit of conditions in its
environment to plan and execute strategies that enable it to become more profitable.
Organizations can gain competitive advantage by making use of opportunities. Organization
should be careful and recognize the opportunities and grasp them whenever they arise.
Selecting the targets that will best serve the clients while getting desired results is a difficult
task. Opportunities may arise from market, competition, industry/government and technology.
Increasing demand for telecommunications accompanied by deregulation is a great
opportunity for new firms to enter telecom sector and compete with existing firms for
revenue.
4. Threats - Threats arise when conditions in external environment jeopardize the
reliability and profitability of the organization’s business. They compound the vulnerability
when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the
stability and survival can be at stake. Examples of threats are - unrest among employees; ever
changing technology; increasing competition leading to excess capacity, price wars and
reducing industry profits; etc.
Advantages of SWOT Analysis
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against
internal weaknesses and external threats. They also keep a watch on their overall business
environment and recognize and exploit new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following manner-
a. It is a source of information for strategic planning.
b. Builds organization’s strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organization’s threats.
f. It helps in identifying core competencies of the firm.
39 | P a g e
g. It helps in setting of objectives for strategic planning.
h. It helps in knowing past, present and future so that by using past and current data, future
plans can be chalked out.
SWOT Analysis provide information that helps in synchronizing the firm’s resources and
capabilities with the competitive environment in which the firm operates.
SWOT ANALYSIS FRAMEWORK
Limitations of SWOT Analysis
SWOT Analysis is not free from its limitations. It may cause organizations to view
circumstances as very simple because of which the organizations might overlook certain key
strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses,
opportunities and threats might be very subjective as there is great degree of uncertainty in
market. SWOT Analysis does stress upon the significance of these four aspects, but it does
not tell how an organization can identify these aspects for itself. There are certain limitations
of SWOT Analysis which are not in control of management. These include-
a. Price increase;
b. Inputs/raw materials;
c. Government legislation;
d. Economic environment;
e. Searching a new market for the product which is not having overseas market due to
import restrictions; etc.
Internal limitations may include-
a. Insufficient research and development facilities;
b. Faulty products due to poor quality control;
c. Poor industrial relations;
d. Lack of skilled and efficient labor; etc.
40 | P a g e
Contingency Plans
1. Mass customization has its own shortcomings. Firstly, it puts a disproportionate amount of
strain on the company's supply chain. And this is a wasted effort in case the demand patterns
aren't properly understood. Hence we propose that the sales of the customized vehicles be
closely tracked and in case sales achieved within a reasonable timeframe do not merit the
additional resource outlay, then the company should revert to the original multipurpose
positioning.
2. In the background of rupee appreciation, exports will become costly. Hence it is prudent to
open integrated production plants in other countries rather than just concentrating on exports.
A few pointers on what Tata Motors ought not to do are captured below:
1. Compete on price because proportion of individual players is low. Instead differentiate
through service.
2. Engage in rapid capital expansion given the high debt to equity ratio. Use ring fencing
judiciously.
3. Focus on rapid acquisitions and instead focus on consolidation in the foreign market.
4. Lose focus on the 'Value for Money' positioning, especially in the soon to be launched
offering in the Ultra Heavy Commercial Vehicle segment.
41 | P a g e
Conclusion
In the country the sustainable factor which will be highly influence the motor sectors to grow in such a
way to success is mainly the culture of the areas this is important aspects when the company want to grow
in the particular country so main objective peoples behaviors and the acceptance so they are the main
consideration when globalization take place and the political and geographical aspects also play a roal in
the company this are the main issues in the any company to be the success so they will consider the main
aspect in the international business.
Bibliography
Sours: http://www.time.com/time/world/article/0,8599,1881404,00.html#ixzz1cZDSfj00
http://www.ukti.gov.uk/investintheuk/sectoropportunities/moresectors/item/157760.html
http://www.tatamotors.com/media/press-releases.php?id=693
http://tatamotors.com/investors/financials/68-ar-html/mda4.html
http://businesstoday.intoday.in/story/tata-motors-planning-more-products-for-global-mkt-karl-
slym/1/199761.html
http://en.wikipedia.org/wiki/Tata_Motors
http://www.forbes.com/fdc/welcome_mjx.shtml
http://www.dnaindia.com/money/report-tata-motors-set-to-expand-global-footprint-1563899

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INTERNATIONAL MARKETING OF TATA MOTORS

  • 1. 1 | P a g e UNIVERSITY OF MUMBAI PROJECT REPORT ON INTERNATIONAL MARKETING OF TATA MOTORS BY MR. JITEN H MENGHANI ROLL NO 28 M.COM. (PART-2) ACADEMIC YEAR 2014-2015 PROJECT GUIDE PROF.MRS.KANCHAN FULMALI PARLE TILAK VIDYALAYA ASSOCIATION’S M.L.DAHANUKAR COLLEGE OF COMMERCE DIXIT ROAD, VILE PARLE (EAST) MUMBAI-400 057
  • 2. 2 | P a g e DECLARATION I, MR. JITEN H MENGHANI OF PARLE TILAK VIDYALAYA ASSOCIATION’S, M.L.DAHANUKAR COLLEGE OF COMMERCE of M.COM (PART-2) (Semester - 3) hereby Declare that I have completed this project on INTERNATIONAL MARKETING OF TATA MOTORS in The Academic year 2014-2015. The information Submitted is true & original to the best of knowledge. ----------------------- (Signature of student)
  • 3. 3 | P a g e ACKNOWLEGEMENT To list who all have helped me is difficult because they are so numerous and the depth is so enormous. I would like to acknowledge the following as being idealistic channels and fresh dimensions in the completion of this project I take this opportunity to thank the University of Mumbai for giving me chance to do this project. I would like thank my Principal, Dr. Madhavi.S.Pethe for providing the necessary facilities required for completion of this project. I would also like to express my sincere gratitude towards my project guide PROF. KANCHAN FULMALI whose guidance and care made the project successful. I would like to thank my college library, for having provided Various reference books and magazines related to my project. Lastly I would like to thank each & every person who directly or indirectly helped me in completion of the project especially my parents & peers who supported me throughout my project.
  • 4. 4 | P a g e Content 1. History of TATA Motors 2. Product range of the company 3. Milestones 4. Achievements / Recognitions 5. Expansion a) TATA motors technology and design subsidiaries b) TATA technology Limited c) TATA motors Europeans technical centre 6. Operations a) TATA in India b) TATA’S Global Operations 7. Business Excellence a) TATA Quality Management Services b) TATA Business Excellent Model c) Climate change policy for TATA companies
  • 5. 5 | P a g e 8. Global Presence a) TATA in Asia Pacific b) TATA in China c) TATA Motors in North America o Retail Production of TATA Motors in North America d) TATA In South America e) TATA Motors unveils Assembly plant in South Africa f) Main accusation of TATA Motors g) TATA Motors in UK o TATA Motors Boosts UK Production areas h) TATA Motors in Africa i) TATA Daewoo Commercial vehicle Company in South Korea 9. Joint Ventures of TATA Motors 10.Internationalizations a) Korean Operations b) South African Operations c) Thailand Operations
  • 6. 6 | P a g e d) Latin American Operations e) How to replicate this strategy’s for other markets f) Recommendation Matrix o Tangible o Intangible o Capabilities 11. SWOT Analysis a) Advantage of SWOT Analysis b) Limitation of SWOT Analysis 12.Contingency Plans 13.Conclusion 14.Bibliography
  • 7. 7 | P a g e History Of TATA Motors Tata Motors was established in 1945 as Tata Engineering and Locomotive Co. Ltd. to manufacture locomotives and other engineering products. It is India's largest automobile company, with standalone revenues of Rs. 25,660.79 crores (USD 5.5 billion) in 2008-09. 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. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 23,000 employees are guided by the vision to be 'best in the manner in which they operate best in the products they deliver and best in their value system and ethics. '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 company's 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 power trains. The company is establishing a new plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. 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 an international automobile company. Through subsidiaries and associate 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 rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a
  • 8. 8 | P a g e global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand at the Bangkok Motor Show 2008. 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 franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. 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 2,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility 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, India's first indigenously developed mini-truck. 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 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). In May 2009, Tata Motors 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. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations.
  • 9. 9 | P a g e Product range of the company includes Passenger Cars:  Indica Vista, Indica V2, indica V2 Turbo,  Indica V2 Xeta, Indica V2 Dicor Indigo XL, Indigo, Indigo Marina Indigo CS.  Nano.  Fiat Cars. Utility Vehicles:  Safari Dicor.  Sumo Grande.  Sumo.  Xenon XT. Truks:  Medium & Heavy Comm. Vehicles, Tata Novus.  Intermediate Comm. Vehicles.  Light Commercial Vehicles,  Small Commercial Vehicles. Commercial Passenger Carriers:  Buses.  Winger.  Magic Defence Vehicles Subsidiaries of the company:  Jaguar Land Rover.  Tata Technologies Ltd. (TTL) and its subsidiaries.  Telco Construction Equipment Co. Ltd. (Telcon).  HV Axles Ltd. (HVAL).  HV Transmissions Ltd. (HVTL).  TAL Manufacturing Solutions Ltd. (TAL).  Sheba Properties Ltd. (Sheba).  Concorde Motors (India) Ltd. (Concorde).  Hispano Carrocera S. A. (HC).  Tata Motors Insurance Broking &  Advisory Services Ltd (TMIBASL).  Tata Motors European Technical Centre plc.
  • 10. 10 | P a g e Milestones  1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products.  1948 Steam road roller introduced in collaboration with Marshall Sons (UK).  1954 Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract.  1959 Research and Development Centre set up at Jamshedpur.  1961 Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.  1966 Setting up of the Engineering Research Centre at Pune to provide impetus to automobile Research and Development.  1971 Introduction of DI engines.  1977 First commercial vehicle manufactured in Pune.  1983 Manufacture of Heavy Commercial Vehicle commences.  1985 First hydraulic excavator produced with Hitachi collaboration.  1986 Production of first light commercial vehicle, Tata 407, indigenously designed, followed by Tata 608.  1989 Introduction of the Tatamobile 206 - 3rd LCV model.  1991 Launch of the 1st indigenous passenger car Tata Sierra. TAC 20 crane produced. One millionth vehicle rolled out.  1992 Launch of the Tata Estate.  1993 Joint venture agreement signed with Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly diesel engines.  1994 Launch of Tata Sumo - the multi utility vehicle. Launch of LPT 709 - a full forward control, light commercial vehicle. Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India. Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers to be used on Cummins engines.  1995 Mercedes Benz car E220 launched.  1996 Tata Sumo deluxe launched.  1997 Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out.  1998 Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicle rolled out. Indica, India's first fully indigenous passenger car launched.  1999 115,000 bookings for Indica registered against full payment within a week. Commercial production of Indica commences in full swing.  2000 First consignment of 160 Indicas shipped to Malta. Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched. Utility vehicles with Bharat 2 (Euro II) compliant engine launched. Indica 2000 (Euro II) with multi point fuel injection petrol engine launched. Launch of CNG buses. Launch of 1109 vehicle - Intermediate commercial vehicle.  2001 Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's number one car in its segment. Exits joint venture with Daimler Chrysler.  2002 Unveiling of the Tata Sedan at Auto Expo 2002. Petrol version of Indica V2 launched. Launch of the EX series in Commercial vehicles. Launch of the Tata 207 DI. 2,00,000th Indica rolled out. 5,00,000th passenger vehicle rolled out. Launch of the Tata Sumo'+' Series Launch of the Tata Indigo. Tata Engineering signed a product agreement with MG Rover of the UK.
  • 11. 11 | P a g e  2003 Launch of the Tata Safari Limited Edition. The Tata Indigo Station Wagon unveiled at the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out 135 PS Tata Safari EXi Petrol launched Tata SFC 407 EX Turbo launched  2004 Tata Motors unveils new product range at Auto Expo '04. New Tata Indica V2 launched Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement Indigo Advent unveiled at Geneva Motor Show Tata Motors completes acquisition of Daewoo Commercial Vehicle Company Tata LPT 909 EX launched Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty truck 'NOVUS' , in Korea Sumo Victa launched Indigo Marina launched Tata Motors lists on the NYSE  2005 Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune The Tata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches - Starbus and Globus - launched Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company Tata Ace, India's first mini truck launched Tata Motors wins JRD QV award for business excellence. The power packed Safari Dicor is launched Introduction of Indigo SX series - luxury variant of Tata Indigo Tata Motors launches Indica V2 Turbo Diesel.  2006 Tata Motors vehicle sales in India cross four million mark Tata Motors unveils new long wheel base premium Indigo & X-over concept at Auto Expo 2006 Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built buses & coaches for India & markets abroad  2007 Construction of Small Car plant at Singur, West Bengal, begins on January 21 New 2007 Indica V2 range is launched Tata Motors launches the longwheel base Indigo XL, India's first stretch limousine Common rail diesel (DICOR) engine extended to Indigo sedan and estate range Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), announce formation of a joint venture company in Thailand to manufacture, assemble and market pickup trucks. Roll out of 100,000th Ace Tata-Fiat plant at Ranjangaon inaugurated Launch of a new Upgraded range of its entry level utility vehicle offering, the Tata Spacio.  2008 Ace plant at Pantnagar (Uttarakhand) begins production. Indica Vista the new generation Indica, is launched. Tata Motors' new plant for Nano to come up in Gujarat. Latest common rail diesel offering- the Indica V2 DICOR, launched. Indigo CS (Compact Sedan), world first sub four-metre sedan, launched. Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV with the comforts of a family car. Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo. Xenon, 1-tonne pick-up truck, launched in Thailand. Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover. Tata Motors completes acquisition of Jaguar Land Rover. Tata Motors introduces new Super Milo range of buses. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III Commonwealth Youth Games Pune 2008. Indica Vista the second generation Indica, is launched. Tata Motors launches passenger cars and the new pick-up in D.R. Congo.  2009 Tata Marcopolo Motors' Dharwad plant begins production. Tata Motors launches Nano - The People's Car Introduction of new world standard truck range. Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and Land Rover in India.  2010: Tata Ace becomes India's first 1-lakh brand in goods commercial vehicles. Jaguar Land Rover announces opening of its Dealership in New Delhi. Tata Motors to construct heavy truck plant in Myanmar under Government of India's Line of Credit. The company Passenger Car Division launches Tata Motors Service Edge' for leading edge customer service.
  • 12. 12 | P a g e  2011: Tata Motors unveils Assembly Plant in South Africa. Jaguar Land Rover inaugurates new vehicle assembly plant in Pune India. Jaguar celebrates 50 years of iconic E- Type. Jaguar c-x75 scoops Louis Vuitton award in Paris. Tata Pixel, new city car concept for Europe, displayed at the 81st Geneva Motor Show. Tata Motors displays Tata Nano EV at the 80th Geneva Motor Show. =
  • 13. 13 | P a g e Achievements/ Recognition  Tata Motors among India’s most Trusted Brand in cars  Tata Motors wins award at the Bangkok International Motor Expo  Tata Motors - Investor Relations ranked first in India  Nirmal Gram Puraskar awarded to Potka panchayat.  Tata Motors bags the NDTV Profit Business Leadership Award 2008  Tata Motors awarded the Top Exporter Trophy by EEPC  CVBU Pune wins Rajiv Gandhi National Quality Award for 2007.  PCBU bags Handa Golden Key Award.  Tata Motors receives Uptime Champion Award 2007  Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL  'NDTV Profit' Business Leadership Award  Tata Motors bags National Award for Excellence in Cost Management.  Tata Motors' TRAKIT bags silver award for 'Excellence in Design'  Tata Motors Pune - CVBU has bagged the 'Golden Peacock National Quality Award  Tata Motors was awarded four prestigious honours, at the 'CNBC TV18- Autocar.  Tata Motors chosen as India's Most Trusted Brand in Cars.  Business today selects Mr. P.P. Kadle as India's Best CFO in 2005.  Pune Foundry Division bags prestigious Green Foundry Award.  Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.  ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards.  Jamshedpur bags National Energy Conservation Award for the fourth consecutive year. Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence.  Tata Motors receives JRD QV awards for Business Excellence.  'Car Maker of the Year' Award for Tata Motors.  Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.  TNS Voice of the Customer Award for Indica Diesel.  'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive Director  Tata Motors wins the prestigious 'Corporate Platinum' Award Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility.  Tata Motors CVBU Pune wins National Energy Award.  Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'.  Tata Motors wins the first CSIR Diamond Jubilee Technology Award.  Tata Motors Training Division Wins 'Golden Peacock National Training Award 2004'.  Tata Motors case study wins first prize in iiie productivity contest.  Tata Motors wins award for fair business practices.  Tata Indica and Tata Safari EXi win awards.  Tata Motors-Car plant gets two ISO certifications.  Tata Motors bags awards at 14th National Convention of INSAAN  Indica and Safari win accolades  Tata Motors pune awarded second place in national level competition in energy co.  Tata Motors Receives 'India's Best Employer' Award from the Employe.  Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award institute  CVBU receives commendation certificate for 'strong commitment to TQM'.  Tata Motors team wins The Runners up Position at The Asian Business Simulation
  • 14. 14 | P a g e  The Prestigious Balanced Scorecard Collaborative Hall Of Fame Award  Tata Motors receives all India trophies for Top Exporters  Tata Indigo ad campaign wins Effie award  Golden Peacock Environment Management Award - 2003  Industry and Technology Award, 2002  ET Zig Wheel Awards 2009
  • 15. 15 | P a g e Expansion After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent 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 became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors. Tata Motors technology and design subsidiaries Tata has dozens of technology and design subsidiaries. These include the main ones. Telco Construction Equipment (TELCON) TELCON is a joint venture between Tata Motors and Hitachi, which focuses on excavators and other construction equipment. And research work is done.
  • 16. 16 | P a g e HV Transmission (HVTL) and HV Axles (HVAL) HVAL and HVTL are 85% subsidiary companies of Tata Motors engaged in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with production facilities and infrastructure based at Jamshedpur. Tata Technologies Limited (TTL) TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata Technologies is a software service provider in the IT services and BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the British engineering and design services company, Incat International Plc for Rs.4 billion in August 2005. Incat specializes in engineering & design services and product lifecycle management in the international automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer proximity to its global customers and be able to provide a wider range of services. Tata Motor European Technical Centre Tata Motor European Technical Centre is Tata's subsidiary based in the UK. It was the joint developer of the World Truck.
  • 17. 17 | P a g e Operations Tata in India Tata Motors Limited is India’s largest automobile company, with revenues of 35,651.48 crore (US$7.23 billion) in 2007–08. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles in India with products in the compact, midsize car and utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata vehicles have been produced domestically since the first Tata vehicle was assembled in 1954. The company’s 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, Tata 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). Tata's dealership, sales, service and spare parts network comprises over 3500 touch points. Tata Motors also distributes and markets Fiat branded cars in India.  Sales & Service Network Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai. Tata's global operations Tata Motors has been in the process of acquiring foreign brands to increase its global presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The re- branded Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two- thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% controlling stake in Hispano Carrocera, a Spanish bus and coach manufacturer. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo Debuting in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In 2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture fully built buses and coaches for India and other international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa.
  • 18. 18 | P a g e Business Excellence A key vector that has helped Tata companies grow and establish themselves on the global stage as business leaders in their respective fields is the strong business excellence movement in the group. One of the initiatives in the business excellence movement is a framework known as the Tata Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm Baldrige archetype. TBEM assesses core aspects of business operations: leadership, strategic planning, customer focus, measurement, analysis and knowledge management, workforce focus, process management and business results. The model works under the aegis of Tata Quality Management Services (TQMS), an in- house organization mandated to help different Tata companies achieve their business excellence and improvement goals. In recent years, the TBEM framework has been adapted to include new business and societal initiatives such as governance, safety, climate change and innovation. The other core elements of the Tata business excellence movement are the Tata Code of Conduct (TCoC), a mandatory pan-Tata policy that defines how Tata employees can conduct themselves, and the Management of Business Ethics, a programme that helps Tata companies drive ethics and values in the organization. Since the 1990s, there is a formal arrangement that governs the relationship between individual Tata companies and the superstructure that is the Tata group. In order to use the Tata nomenclature, a group company has to sign a contract called the Brand Equity and Business Promotion (BEBP) Agreement. This places an obligation on the company signing on to adopt TBEM and TCoC as a means to attaining business leadership. As a result, the business excellence processes have come to characterize the Tata way of enhancing and conducting its business endeavours, and to a great extent, have helped define the Tata brand. The TBEM movement in Tata has a built-in reward and recognition mechanism wherein companies that have achieved a score of 600 on the TBEM framework are felicitated with the JRD QV Award. Tata Quality Management Services (TQMS) Tata Quality Management Services (TQMS), a division of Tata Sons (the principal promoter company of the Tata group of companies), is a trusted partner, working closely with Tata companies to achieve their business excellence and improvement goals. TQMS collaborates with group companies, through long and short-term initiatives, in the areas of innovation, climate change, business ethics, customer focus, improvement, strategy
  • 19. 19 | P a g e development, safety, human resource, process improvement, corporate governance, training and affirmative action. Through TBEM, TQMS helps Tata companies gain insights on their strengths and their opportunities for improvement. This is managed through an annual process of 'applications and assessments'. Each company writes an application wherein it describes, in the context of the TBEM matrix, what it does and how it does it. This submission is then gauged by trained assessors, who study the application, visit the company and interact with its people. The assessors map out the strengths and improvement opportunities existing in the company before providing their feedback to its leadership team. TQMS trains and certifies assessors, who are selected from across the group, and it designs and administers an assessment apparatus that helps them evaluate different Tata companies. The contact point person in each company is the 'corporate quality head', nominated by the CEO as the business excellence process owner. Typically, each company has a network of business excellence people from a variety of functions and locations. The commitment a company makes when it signs the BEBP contract compels it to attain explicit business excellence scores over specific time periods. A result-driven scoring mechanism enables the company to track its progress over time, and ensure that it keeps improving. There is also an annually administered, group-wide recognition system for companies that exceed a certain score, thereby reflecting excellence, industry leadership and consistent improvement. Implicit in the TQMS approach is the belief that its wide-ranging methodology will enable Tata companies to become exemplars — on business as well as ethical parameters — in their respective spheres.
  • 20. 20 | P a g e Tata Business Excellent Model (TBEM) TBEM methodology has been molded to deliver strategic direction and drive business improvement. It contains elements that enable companies following its directives to capture the best of global business processes and practices. The model has retained its relevance thanks to the dynamism built into its core. This translates into an ability to evolve and stay in step with ever-changing business performance parameters. The TBEM matrix is used for the organizational self-assessment of Tata companies, recognition and awards, and for providing feedback to applicants. In addition, TBEM plays three important supportive roles in strengthening the competitiveness of Tata companies:  It helps improve business excellence practices, capabilities and results.  It facilitates communication and sharing of best practices among Tata companies.  It serves as a working tool for understanding and managing performance, for providing planning guidance, and for identifying learning opportunities. The TBEM methodology comprises a set of questions that applicant Tata companies have to answer. Its main objectives are to enhance value to customers and contribute to marketplace success. The core values and concepts of TBEM are embodied in seven categories: leadership; strategic planning; customer focus; measurement, analysis and knowledge management; workforce focus; process management; and business results. The TBEM system focuses on certain key areas of business performance: customer-focused results; product and service results; financial and market results; human resource results; organizational effectiveness results; governance and social responsibility results. Climate change policy for Tata companies Tata companies will play a leadership role in climate change by being knowledgeable, responsive and trustworthy, and by adopting environment-friendly technologies, business practices and innovation, while pursuing their own growth aspirations and the enhancement of shareholder value. Tata companies will measure their carbon footprint and will strive to:  Be the benchmark in their segment of industry on the carbon footprint, for their plants and operations.  Engage actively in climate change advocacy and the shaping of regulations in different business sectors.  Incorporate ‘green’ perspective in all key organizational processes.
  • 21. 21 | P a g e Global Presence Tata in Asia Pacific Asia Pacific is a key market for the Tata group as it enjoys a strong brand presence in the region — apart from the Indian sub-continent, Tata is present in Singapore, Thailand, Vietnam, Indonesia, Malaysia, the Philippines, South Korea, Australia and China. Although most Tata companies are headquartered in India, the group's growing global spread has resulted in the Asia Pacific region becoming a significant base of operations as well. Singapore is the headquarters of Tata Technologies and Tata NYK and also the regional headquarters of Tata Consultancy Services. Several Tata companies have set up manufacturing plants, sales and marketing operations and representative offices around the region. For instance, NatSteel, a Tata Steel company, is the leading provider of steel in the region with plants and bases in several Asia Pacific nations. A significant portion of Tata Communications network is located in the area. Tata Motors has two large operations — Tata Daewoo in South Korea and Thonburi Automotive Assembly Plant Company in Thailand. Indian Hotels has set up several Taj properties in the area, including its luxury getaways in Malaysia, Bhutan and the Maldives, and the Blue in Sydney. Tata in China China is a critical and growing market for the Tata group, which has a bit of history with regard to doing business with the Middle Kingdom. In 1859, a young Jamsetji Tata, the founder of the Tata group, was sent to Hong Kong to open a branch for his father's banking firm. He relocated a few months later to Shanghai, where he remained till 1863. Currently the Tata group has a fairly significant presence in China,
  • 22. 22 | P a g e with the number of companies and operations growing steadily. Tata companies employ over 2,600 employees in China, generated $3 billion worth of sales in the country and purchased goods and services worth $700 million in 2010. Recognizing the potential for high growth in existing businesses and opportunities for new ones, Tata Sons, the group promoter company, has set up representation in China. Tata Motors in North American Tata TTM -0.36% has received twice as many orders for the $2,000 micro car as it is set up to deliver through 2010. Some investors nevertheless expressed dismay Tuesday, disappointed that Tata didn't haul in even more orders. It's a problem anyone still holding stock in Ford F +0.68% or General Motors GM +0.04%might relish. Detroit need not fear an imminent incursion of home turf by the Nano. There are no Tata Motors distributorships in North America, creating a protective buffer zone that for the time being affords a good chuckle. Seriously. What's the likelihood that a car with a 650 cc, two-cylinder engine with a top speed of 63 mph poses a threat to anything larger than a scooter? America has a long history of making fun of little foreign cars. Back in the 1950s, it was the Volkswagen Beetle. But then it sort of caught on. In the 1960s, the jokes were aimed at those little Japanese imports from Toyota and Datsun. And who can forget those dinky Honda Civics? All were dismissed as cheap knock-offs of what we knew to be real cars. Then came the 1973 Arab oil embargo, gasoline shortages, and suddenly our precious land yachts were being swapped at par for those little foreign jobs that, despite initial skepticism, seemed to holding up pretty well after all.
  • 23. 23 | P a g e Gradually the U.S. auto industry realized it was losing home court advantage to the imports. The backlash was painful and palpable. No one in their right mind would park a Toyota on the streets of the Motor City without fearing it would be keyed by some angry patriot. While the Nano grabs headlines, it's only the latest model in a Tata lineup of sedans, SUVs and commercial vehicles. Tata has a distributor network that spans parts of Europe, Asia and Africa. And it is in full growth mode, teamed up with Fiat IT:F +3.18% and capitalizing on some staggering production advantages when sized up against North American competitors. Given the evolution of the industry over the past 60 years, Tata is bound to face lots of jokes. But Detroit needs to take this relative newcomer deadly serious because they are going to find themselves in head-to-head competition for many of the same overseas customers and, just as importantly, the same pool of investor capital. Retail Production of Tata Motors in north American Tata motors is considering pooling engine production. Ratan Tata, chairman of the Indian holding group whose automotive business owns Jaguar Land Rover, has spoken of setting up joint engine production for its mass- market Indian operations and the two UK premium brands. JLR, which specializes in high- end executive saloons and four-by-fours, had in the past spoken of building engines in the UK or India, but this is the first time Tata Motors has spoken of combining the two parts of its business. “To optimize the synergetic strengths between JLR and Tata Motors in India, an examination is also under way on a joint engine development programme which would have manufacturing facilities both in the UK and India”, Mr Tata said in the company’s annual report, released on Monday. JLR currently gets its engines from Ford Motor, which sold the premium carmakers to Tata for $2.3bn in 2008. Joint engine development with India’s largest carmaker – best known for the tiny, cheap Nano – could be a sensitive topic for Jaguar and Land Rover on the competitive premium-car market. Tata is investing at least £5bn over the next five years to improve the quality of the car brands’ products and designs, as it takes on Germany’s larger premium car marques. Jaguar’s image took a knock under Ford’s ownership, when the brand’s X-Type car was criticized for having too much in common with the Ford Mondeo. However, since then carmakers – including the German premium producers – have established increasingly global
  • 24. 24 | P a g e manufacturing operations or teamed up with mass-market rivals, as they seek to cut costs and build cars closer to where they sell them. BMW and Daimler’s Mercedes-Benz brand make cars in the US, and rival premium brand Audi is considering a US production site. Daimler is co-operating with mass-market carmakers Renault and Nissan in areas including small cars and commercial vehicles. Chas Hallett, editor of Britain’s What Car magazine, said: “I don’t think where things are made has any bearing on consumers any more. What’s more important are that [JLR’s] cars are engineered and designed in Britain. Where they’re actually manufactured is irrelevant”. Jaguar and Land Rover have rebounded strongly since the financial crisis, on the back of reviving global demand for premium cars and well-reviewed products such as the recently launched Range Rover Evoque. In an interview last month, Ralf Speth, JLR’s chief executive, said that the carmakers had not yet decided on an engine strategy. Mr Speth said: “We have a long-term contract with Ford. We don’t need another partner.” However, he added that if JLR decided to produce its own engines, the company might do so “either in the UK or in India or both”. Industry observers widely expect the UK carmakers to develop their own capacity for what is seen as a core automotive technology. Rival UK premium carmaker Aston Martin, which Ford sold in 2007, said earlier this month it had extended an agreement to buy engines from Ford, due to lapse in 2012, for at least four more years. Tata in South America The Tata group has had a presence in South America since the 1990s, principally through Tata Consultancy Services (TCS), which started its first project in Brazil. Since then the company has expanded its reach to 14 countries in the region and today serves more than 150 clients. TCS employs more than 5,000 people across the South American continent, which is a strategic base in the company’s operations to service customers in the US and Europe. Among the other Tata companies that have businesses in the region are Tata Motors and Rallis. Additionally, Tata Steel Europe, Tata Chemicals, Tata Communications and Tata International have a sales presence in the region. Tata Motors unveils Assembly Plant in South Africa Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd., today formally opened its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The establishment of the plant is a major step towards bolstering the operations and presence of the Tata Group in South Africa.
  • 25. 25 | P a g e The plant was inaugurated by South Africa's Minister of Trade & Industry, Dr. Rob Davies, in the presence of top dignitaries from South Africa and India. Among them were Mr. Noel N. Tata, Managing Director, Tata International, Mr. Carl-Peter Forster, Group CEO and Managing Director, Tata Motors, Mr. Raman Dhawan, Managing Director, Tata Africa, as well as dealers and key associates of the company. Established with an investment of R110 million, the plant can assemble, from semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes, with an annualised capacity of 3,650 vehicles. The capacity can be further expanded as required. The plant has been awarded with ISO 9001 accreditation by Bureau Veritas, South Africa. To begin with, it is assembling two models, the Tata LPT 813 and Tata LPT 1518, both already popular in South Africa. Speaking at the event, Dr. Rob Davies said that the launch of the plant can be attributed to South Africa's investment friendly policies. He said that the project comes at a time when the department is aggressively pursuing an industrial development strategy for the South African Medium and Heavy Commercial Vehicle (M&HCV) sector. "The key focus area of the MHCV strategy is based on: Support for Market Development (Local and Regional), development of OEM Production Capabilities and the Strengthening of the Supply Chains (1st tier Supplier base). Industry role players have and still are part of the extensive consultation process that accompanies the development of such a strategy. This will be an opportunity for further expansion of Tata Motors in South Africa," added Dr. Davies Speaking on the occasion, Mr. Carl-Peter Forster said, "With a comprehensive product portfolio, Tata Motors is now at a stage where it can consolidate its international business in its chosen markets. The assembly plant in South Africa is an expression of that resolve. Step by step, we shall expand the footprint of our international business matching markets and products."
  • 26. 26 | P a g e Mr. P. M. Telang, Managing Director - India Operations, Tata Motors, said, "We are very proud to commence assembly operations in South Africa, which has traditionally been among our focus countries. It is integral to Tata Motors' international business presence and plans. The company has already carved a niche for itself in the country and is confident of greater opportunities." Built over a period of 18 months, the plant is spread over an area of 34,500 sq. metres. In line with latest world-class manufacturing practices, the plant has been equipped with state-of- the-art equipment following lean manufacturing principles. It has built-in flexibilities to assemble large numbers and different variants in mixed mode production, to meet the requirements of the South African market. The entire capital outlay, encompassing civil and plant engineering work for the facility, has been sourced from and carried out by South African suppliers and companies. In addition, all major equipment, like heavy duty cranes, inversion mechanisms and paint booth, have also been sourced from South African vendors. The entire workforce of the plant is from South Africa. Training, skill transfer and development of local workforce is one of the top priorities of the Tata Group in South Africa. The Tata Group's training processes and facilities in India have been acknowledged as among the best. Leveraging this expertise through a robust local skill transfer and apprentice programme, Tata Motors South Africa is committed to ensuring that skill levels of individuals employed in various industrial trades, such as auto mechanic, welder, painter etc, are further enhanced. Tata has an already established state-of-the-art technical training centre in Germiston, Johannesburg, operating since 2006, for skill development of dealer mechanics in South Africa and various other countries in the continent. Tata Motors started exports to South Africa in 1998, with commercial vehicles. Exports of passenger vehicles began in 2004. Currently there are over 20 commercial vehicle models .from pick-ups to 49 tonne prime movers and from 14-seater buses to luxury coaches -- and 5 passenger vehicle models Tata Indica Vista, Tata Indica, Tata Indigo, Tata Indigo SW and Tata Safari in diesel & petrol variants catering to the needs of the South African market. The company
  • 27. 27 | P a g e has thus far exported over 32,000 commercial vehicles and 31,000 passenger vehicles to the country. Tata Motors' vehicles are available across 85 dealerships, through M/s Accordian Investments (Pty) Ltd., the distributor for light commercial vehicles and passenger vehicles, and M/s Tata Automobile Corporation SA (Pty) Ltd., the distributor for medium and heavy commercial vehicles. Main occupation of Tata Motors Tata Motors is India's largest automobile company, with consolidated revenues of INR. 1,23,133 crores ($ 27 billion) in 2010-11. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 5.9 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest truck manufacturer and the third largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. Tata Motors in UK Tata Motors is the leader in commercial vehicles and among the top three in passenger vehicles in India. It is also the world's fourth largest truck manufacturer and the second largest bus manufacturer. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. It also has a strategic alliance with Fiat. In the UK, Tata Motors has set up the Tata Motors’ European Technical Centre in Warwick, engaged in the business of design engineering and product development for the automotive industry. In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, to be launched later in the year in India. A development that 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 high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. Tata Motors boosts UK production areas The UK’s technology base has been given a major boost with the announcement that Tata Motors’ European Technical Centre is to expand its partnership with experts at Warwick University. The TMETC plans to increase its team of highly skilled engineers by 40 per cent over the next two years. Multinational automotive group Tata Motors has invested more than 85 million pounds in research and development (R&D) at TMETC since it was established on the university campus in 2005. It already has a team of 240 engineers and researchers working alongside colleagues in university department WMG, with 60 of these hired over the last 12 months because of increased
  • 28. 28 | P a g e R&D investment. The TMETC aims to increase the engineering and research force by a further 100 to 340 by 2013. Tata Motors is India’s largest automobile company, headquartered in Mumbai, with revenues of 20 billion US dollars in 2009-10. The group is the leader in commercial vehicles and among the top three in passenger vehicles. In 2004, it bought the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. Along with many other stake holdings and joint ventures in other leading automotive companies across the world, it owns the classic UK brands Jaguar and Land Rover. Dr Tim Leverton, head of Advanced & Product Engineering at Tata Motors Limited, said the announcement “represents a further demonstration of Tata’s long-term commitment to build and develop R&D facilities here in the UK. TMETC plays a vital role in Tata Motors’ global R&D network. Tata Motors’ Pixel city car, which was unveiled at the 2011 Geneva Motor Show, has also been developed on the WMG campus. Based on the Tata Nano, the Pixel is a concept vehicle aimed at the European market and features a zero-turn infinitely variable transmission that gives it a turning circle radius of 2.6 metres, making it ideal for dense urban environments. At just over three metres in length the Pixel is claimed to be “the most package efficient four-seater in the world,” comfortably accommodating four adults. The zero-turn toroidal traction-drive transmission assists rotation of the outer rear wheel forwards and the inner rear wheel backwards, while the front wheels turn at acute angles to achieve its exceptionally tight turning circle radius. “We plan to further increase our team on the campus by up to 100 over the next two years, and are discussing establishing test and development facilities here. This shows a clear commitment to build and develop our R&D and facilities in the UK in collaboration with WMG for the long term.” This was supported by WMG’s director Professor Lord Bhattacharyya who said “Technology businesses such as Tata are crucial to us solving global challenges that will require new thinking energy, climate-change related technologies. “Tata’s work alongside WMG will meet those challenges and will even lead the field in new low-carbon technologies. Tata’s Pixel concept city car is a clear symbol of Tata’s current technological prowess and its future aspirations.” The partnership announcement came shortly after research by the Council for Industry & Higher Education that indicates that the UK’s manufacturing sector could be re-energized by a closer collaboration between companies and the science and technology departments at top universities. As well as working with more than 500 UK companies, the university’s WMG is an international unit with collaborative centers in the UK, China, India, Malaysia, Russia, Singapore and Thailand.
  • 29. 29 | P a g e Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519 crore ($20 billion) in 2009-10. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first indigenously manufactured passenger car, and the Nano, the world's cheapest car. Tata Motors in Africa In a period of just three years, Tata Motors has emerged as the third-largest player in South Africa's commercial vehicles market, and one of the fastest growing brands in the passenger vehicles segment Tata Motors has played a major role in Tata Africa's origins and current operations in Africa. The journey began in the 1970s with the marketing of Tata Motors' heavy vehicles in Zambia. In the 1990s, Tata Africa expanded its automotive operations to Tanzania, Zimbabwe, Malawi, Namibia, Mozambique, Uganda and Ghana. Today, Tata Motors' vehicles enjoy leading positions in several vehicle segments in South Africa and Zambia. Tata Motors offers a range of passenger, multi-utility and commercial vehicles: Passenger cars: The popular Indica Commercial vehicles: Telcoline, an all-terrain vehicle suitable for both commercial and private use Heavy commercial vehicles: Tata Novus' new range of Tata Daewoo tippers and tractors Tata Ubuntu and other bus models Over the years, the company has established a strong distribution and marketing network with the help of various country-specific Tata Africa subsidiaries. In Ghana, operations cover both vehicle sales and after-sales. Tata Uganda, set up in 1994, conducts vehicle sales and after-sales business. In Mozambique, Tata De Mozambique Lda (TDML) is engaged in sales and service of Tata vehicles. South Africa has played an important role in the success of Tata Motors in Africa. Launched in
  • 30. 30 | P a g e South Africa in 2004, the Indica set the record for the most successful car launched in the country. A bus-body fabrication plant was set up in 2004 to build indigenously designed buses that are now sold in Zambia, Ghana and Mozambique. The company enjoys a leading position in tippers, medium commercial vehicles (MCV) and heavy vehicles. Recently, Tata Africa Holdings has acquired a Nissan manufacturing plant in South Africa. Sustaining its leading position in South Africa, the company recently introduced more commercial and passenger vehicle models:  Safari Dicor, to be available in early 2007.  Commercial vehicles, new trucks (6 and 10 tonners), tippers (2-6 cubic metre capacity) and bakkies (1.3-tonne flat-bed) are being launched. These vehicles are aimed at meeting diverse transportation needs in South Africa. The new models are on display at Auto Africa 2006 in Johannesburg. Exhibited along with new models are, for the first time at the expo, two 'concept cars' — Tata Crossover, a 'crossover' vehicle concept, and Tata Cliffrider, a multi-utility 'lifestyle' vehicle. Speaking about the new models, Ravi Kant, managing director, Tata Motors, said, "Our endeavour now is to expand our range with improved applications, to reach out to more customers and build a lifetime relationship." Future plans for South Africa are upbeat. "We are looking at increasing our logistical efficiency besides considering options to set up an assembly unit in South Africa. We are also looking at using South Africa as a source for components," says chief financial officer Praveen Kadle. The only commercial vehicle assembly unit the company has outside India is in Bangladesh. Tata Africa managing director, Raman Dhawan, defines future areas of growth and says, "Towards the end of this year, we would be entering the Nigerian and Kenyan markets with our range of commercial vehicles." Apart from the stronghold the company has in South Africa, Tata Motors is among the top automotive players in other countries as well. Tata Daewoo Commercial Vehicle Company in South Korea The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest manufacturer of medium and heavy-duty trucks. Formerly part of the Daewoo Group, the company was acquired by Tata Motors in 2004. With the acquisition of TDCV, Tata Motors has grown to become the world's fifth largest manufacturer of heavy commercial vehicles. Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo Commercial Vehicle Company in 2002. TDCV trucks are distributed locally through Daewoo Motor Sales Company and are exported to over 60 countries worldwide, including South Africa and China and countries in the Middle East, Southeast Asia and Eastern Europe
  • 31. 31 | P a g e Joint Ventures of TATA Motors Jaguar & Land Rover Jaguar Cars, founded in 1922, is one of the world’s premier manufacturers of luxury saloons and sports cars. Land Rover has been manufacturing 4x4s since 1948. Its products have defined the segments in which they operate. Jaguar Land Rover Automotive Trading (Shanghai) is the company that handles the China operations of Jaguar Land Rover (JLR). The company's main activities are the import and distribution of JLR's range of premium sedans and SUVs in China. Headquartered in Shanghai, the company has a corporate office in Beijing, three distribution facilities (a fourth one to be opened soon) and two technical training academies. JLR China sells its exclusive range of products through a distribution network of approximately 60 dealers, providing sales and service coverage across the country. In 2010, it sold approximately 26,000 units in the country, making it the third largest market for Jaguar Land Rover in the world. Given its size and maturity, China has the potential to become JLR's largest global market within the next few years. Jaguar Land Rover is a business built around two iconic British car brands that designs, engineers and manufactures in the UK. With investment in product creation topping £1 billion a year, Jaguar Land Rover is at the centre of the UK automotive industry’s drive to deliver technical innovation in all areas of vehicle development. The Jaguar Land Rover business directly employs more than 18,000 people and supports approximately 130,000 jobs (through direct employment, dealers, suppliers and broader economy). Jaguar Land Rover exports annually generate almost £6 billion for the UK economy with 78 percent of Land Rovers exported to over 160 countries and 70 percent of Jaguars exported to over 60 countries. Jaguar Cars Limited, founded in 1922, is one of the world’s premier manufacturers of luxury saloons and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that define 'breadth of capability' in their segments.
  • 32. 32 | P a g e Internationalization As a part of the company's new internationalization strategy, the company has decided to focus on a narrow base of 14-15 countries where market conditions are similar to that of India. In these countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales teams. The idea is to have self sustained operations in this narrow band of countries. The company evaluates locations on the basis of market opportunities and labour skills. In the framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender, and is focusing on expanding into markets similar to those of the home base, using competencies developed at home Where is Tata Motors now and How to Globalize? Korean Operations Tata Motors entered the advanced Korean Market by acquiring Daewoo, with which it has tremendous synergies in terms of product strategy and R & D. Tata Motors has planned to use this merger and leverage the technology for developing a World Truck for India and international markets. South African Operations In the export market, Tata Motors moved from a fragmented approach to specific markets, chosen in terms of consumer behavior, distribution networks, supply chain, etc. and identified South Africa as one of the best markets. The sales in this region are about 15,000 units4 . This is a
  • 33. 33 | P a g e significant improvement over what Tata Motors was cumulatively exporting (8000 units) before adopting its new internationalization strategy. Thailand Operations Tata Motors formed a joint venture with Thonburi Automotive Plant to enter Thailand. Thailand is the second most competitive market for pickups, and the new pickup trucks developed here will be sold in both domestic and export markets. Latin American Operations Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up truck, for Latin American markets from Fiat's facility in Argentina. This arrangement will also see Tata Motors forming a joint venture with a subsidiary of Iveco, the commercial vehicle division on Fiat, to set up a distribution network. Now that Tata Motors has established a sustainable model in some countries, its main challenge is to replicate this model in other countries as well. How to replicate this strategy for other markets? Sustainable competitive advantage lies not in one, but a combination of multiple resources, each of which individually need not necessarily be the best, but in overall weighted average terms, presents the best solution. For Tata Motors, the combination of resources providing it competitive superiority on a weighted average basis includes: 1. Product Reliability 2. Service Network 3. Channel Reach Three-way Resource Based View
  • 34. 34 | P a g e In terms of product reliability, Tata Motors offers products of reasonably high standards. However, foreign players like Volvo and even local competitors like Ashok Leyland arguably offer products that are far more refined. But this is more than compensated by a dependable service network and extensive channel reach. Tata's service and distributor network is by far the most extensive of any player in the trucks industry. Hence in overall weighted average terms, Tata Motors still has a winning proposition. Recommendation Matrix Based on a close scrutiny of the resource based view of Tata Motors and the challenges it faces, we propose a recommendation matrix arranged along three broad dimensions - Tangible, Intangible and Capabilities Three Dimensional Recommendation Matrix Tangible The strategies in this domain are primarily directed at sustaining Tata Motors' first mover advantage with respect to its offering in the Small Commercial Vehicle segment - ACE.
  • 35. 35 | P a g e Intangible Strategy Intangible Assets Unique Customer Experience In commercial vehicles industry, the uniqueness of customer experience is largely driven by the efficacy of the 'Support' framework. If your car breaks down, you can take a taxi to office. But that's not so for a transport operator. For him, his vehicle is at the heart of his business and hence responsive after-sales support is critical. Minimizing downtime calls for a service network that is highly responsive and easily accessible. Besides, Tata Motors should also 1. Consider introducing mobile service units for Tata ACE that can respond to customer calls anywhere within a given city. 2. Start treating "Services" as a dedicated profit center. Towards this end, the company should "productize" annual maintenance contracts. Brand Reputation Building a reputation will help sustain sales, without having to engage in discount sales. Strategy Sustaining the First Mover's Advantage of ACE National Footprint Tata Motors has an unparalleled network of dealers and service stations across the country for Medium and Heavy Commercial Vehicles (M and HCV). However most of these service stations are along inter-city routes. It would need to replicate this network at intra-city level for its hugely successful SCV - the Tata ACE. For this Tata Motors can liaise with small garages, train them and certify them as 'Tata Authorized Service Station'. Product Portfolio Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose positioning to a mass customization positioning for ACE, wherein multiple variants are offered on the ACE platform, each uniquely suited for a specific application - such as tippers, long base trawlers, milk carriers.
  • 36. 36 | P a g e In intangible terms, Tata Motors needs to bolster its brand loyalty, by providing a unique customer experience. Capabilities There are two broad capabilities that Tata Motors should seek to acquire. Strategy Capability Acquisition Technology Appropriation Technology Appropriation is the key to Tata Motor's ambitions to offer products with engines larger than 210 HP. As the share of ultra heavy commercial vehicles grows, the company will need to face up to technologically superior players like Volvo. Here, Tata will have to carefully spearhead its 'World Truck' program by carefully coordinating technology appropriation from its numerous international technology partners, notably Daewoo, Fiat and Hispano. Robust Supply Chain Tata Motors has made significant investments in IT systems to network its countrywide service network. This helps them maintain very high spares parts availability at their service stations and minimize downtime. In the years to come, it would need to include their SCV service station within this framework. This will however be a big challenge, since these service stations would largely be managed by illiterate and not-so-tech-savvy repairmen.
  • 37. 37 | P a g e SWOT Analysis SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control. SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organization’s resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization. An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given below- 1. Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess
  • 38. 38 | P a g e (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc. 2. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc. 3. Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue. 4. Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc. Advantages of SWOT Analysis SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors. SWOT Analysis helps in strategic planning in following manner- a. It is a source of information for strategic planning. b. Builds organization’s strengths. c. Reverse its weaknesses. d. Maximize its response to opportunities. e. Overcome organization’s threats. f. It helps in identifying core competencies of the firm.
  • 39. 39 | P a g e g. It helps in setting of objectives for strategic planning. h. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out. SWOT Analysis provide information that helps in synchronizing the firm’s resources and capabilities with the competitive environment in which the firm operates. SWOT ANALYSIS FRAMEWORK Limitations of SWOT Analysis SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances as very simple because of which the organizations might overlook certain key strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the significance of these four aspects, but it does not tell how an organization can identify these aspects for itself. There are certain limitations of SWOT Analysis which are not in control of management. These include- a. Price increase; b. Inputs/raw materials; c. Government legislation; d. Economic environment; e. Searching a new market for the product which is not having overseas market due to import restrictions; etc. Internal limitations may include- a. Insufficient research and development facilities; b. Faulty products due to poor quality control; c. Poor industrial relations; d. Lack of skilled and efficient labor; etc.
  • 40. 40 | P a g e Contingency Plans 1. Mass customization has its own shortcomings. Firstly, it puts a disproportionate amount of strain on the company's supply chain. And this is a wasted effort in case the demand patterns aren't properly understood. Hence we propose that the sales of the customized vehicles be closely tracked and in case sales achieved within a reasonable timeframe do not merit the additional resource outlay, then the company should revert to the original multipurpose positioning. 2. In the background of rupee appreciation, exports will become costly. Hence it is prudent to open integrated production plants in other countries rather than just concentrating on exports. A few pointers on what Tata Motors ought not to do are captured below: 1. Compete on price because proportion of individual players is low. Instead differentiate through service. 2. Engage in rapid capital expansion given the high debt to equity ratio. Use ring fencing judiciously. 3. Focus on rapid acquisitions and instead focus on consolidation in the foreign market. 4. Lose focus on the 'Value for Money' positioning, especially in the soon to be launched offering in the Ultra Heavy Commercial Vehicle segment.
  • 41. 41 | P a g e Conclusion In the country the sustainable factor which will be highly influence the motor sectors to grow in such a way to success is mainly the culture of the areas this is important aspects when the company want to grow in the particular country so main objective peoples behaviors and the acceptance so they are the main consideration when globalization take place and the political and geographical aspects also play a roal in the company this are the main issues in the any company to be the success so they will consider the main aspect in the international business. Bibliography Sours: http://www.time.com/time/world/article/0,8599,1881404,00.html#ixzz1cZDSfj00 http://www.ukti.gov.uk/investintheuk/sectoropportunities/moresectors/item/157760.html http://www.tatamotors.com/media/press-releases.php?id=693 http://tatamotors.com/investors/financials/68-ar-html/mda4.html http://businesstoday.intoday.in/story/tata-motors-planning-more-products-for-global-mkt-karl- slym/1/199761.html http://en.wikipedia.org/wiki/Tata_Motors http://www.forbes.com/fdc/welcome_mjx.shtml http://www.dnaindia.com/money/report-tata-motors-set-to-expand-global-footprint-1563899