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In 2004, Tata Motors acquired Daewoo Commercial Vehicle Company of South Korea. It has also acquired the companies like Daimler, Lanchester, Rover and Jaguar.
Tata motors focuses on economies of scale, because they are capable to manufacture the truck on assembly line. Currently it is manufacturing a truck in 5 minutes at its Jamshedpur unit. And because of this they are cost effective.2) Tata motor in context of truck sector is volume oriented as they think that a buyer buys commercial vehicle for at least 10 years uses so, alternately customer is going to use Tata brand for 10 years. So company can generate profit throughout the 10 years in terms of spare parts and services.3) In India infrastructure is not high class because of this truck is made up for heavy duty and high durability.4) As commercial vehicles are runs on diesel. So Tata motors uses its own made engines which gives low maintenance.5) Till Tata motors has bought various international brands in vehicle industry like jaguar, Daewoo so with the help of these companies Tata upgrade its technology for product improvement.
Introduction to the Indian truck industry.
The primary modes for movement of goods in India are Rail and Road.
Of late, movement of goods by roads has gained considerable importance
The road transport industry is penetrating into the market through a
strategy of services.
They provide service form the platform of the consignor to the door of the
Besides, they accept goods in small quantities. Unlike Railways, they have
the capacity to penetrate into isolated rural and hilly areas, where laying a
railway becomes expensive.
They are vital tools in the manufacturing, transportation, and warehousing
The truck population in India has grown at a rate of 7.2 per cent per
annum between 1950-51 to 1990-91.
At present, there are over 1300 trucks per million population and the
utilization of trucks is around 70,000 kms. per year. The corresponding
figures for the USA are 151,2000 (over 100 times) and 19,2000 kms. per
year (less than one third).
The trucking industry is a very significant player in goods movement,
carrying over 54% of the tonne km. rail road share in 1988-89 (up from
11% in 1950-51).
Inspite of the unorganized nature of the private companies engaged in
the movement of goods, the trucking operation in India seems to be
The road infrastructure and service management need to be improved
substantially, to make the trucking industry vibrant.
MODEL OF OPERATION OF THE TRUCKING INDUSTRY
Small Operator Large operator
User represents the demand side of
Collecting, forwarding, distributing
Ensures supply of trucks to the
Providing haulage service
Demand No Stable Demand
Unity Driven by Fuel Prices
Pioneer in Transportation Shortage of Skilled Drivers
Contribution Within The Country
Can’t Reach in Remote Areas
Limit Cannot Be Increased
Computerized Exchange Network Fuel Prices
Improve Mileage Tolls
Central Toll Plaza Political Environment
Stable Government No of accidents
Established in 1945.
World’s eighteenth largest motor vehicle
Forth largest truck manufacturer.
Second largest bus manufacturer by volume.
Manufacturing is done at Jamshedpur and
Tata motors produces LCV, MCV and HCV.
LCV – TATA ACE.
MCV – TATA 407, TATA 410.
HCV – CONS TRUCK, PRIMA.
Focuses on new products and acquisitions.
Intensive management development in order
to establish its leaders for tomorrow.
Most admired by our customers, employees,
business partners and shareholders for the
experience and value they enjoy from being
To be passionate in anticipating and providing
the best vehicles and experiences that excite
our customers globally.
Tata truck is using hub and spoke model for
Tata has many C & F agents (collects truck
from hubs and distribute it across nation)
Economics of scale.
• Volume oriented.
High durability (strong chassis frame).
Availability of spares all over in India.
Technology from the USA and EUROPE.
• Product improvement.
Different strategies like product, branding,
advertising and pricing strategy in the
In the home country Tata's strategies are
same as to cost leadership and