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Tata
Tata
headquartered in Mumbai, India. It was founded by JRD Tata in 1945. Tata Motors is Indias largest automobile company, with revenues of 9,274 crore in 201011. It is the leader in commercial vehicles and among the top three in passenger vehicles. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 50,000 workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4 million vehicles in India. Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005 was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. In 2010, Tata Motors surpassed Reliance to win the popular title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa and Thailand.
SWOT ANALYSIS STRENGTHS TATA motors is a market leader in Automobile Industry with high market share. TATA Motors Company have huge employee base. It nearly employs 50000 workers. TATA motors employee productivity percentage is higher. TATA motors produce low price car with low fuel consumption. TATA motors is the reputable brand in Indian Industry. The companys dealership, sales, services and spare parts network comprises over 3500 touch points. Tata Motors has been aggressively acquiring foreign brands to increase its global presence. The research and development department of TATA motors is very strong. WEAKNESS Return on investment on TATA motors shares is low. TATA motors are not able to meet safety standards in their vehicles. The domestic sales of the company are not up to the mark. TATA has not got a foothold in the luxury car segments in its domestic market. OPPORTUNITIES TATA motors can take the advantage of their low cost car by entering countries where people have low purchasing power. TATA motors should focus in developing luxury cars.
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TATA motors can introduce more safety features in vehicles to gain more customer satisfaction. Joint ventures in other countries allow TATA motors to easily enter into new market THREATS TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will be no competitive advantage. The major challenge for TATA motors is the rising prices of steel, Aluminium and plastic which is heavily used in vehicle manufacturing. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. The low safety standards can impact the sales.
STRATEGIES WHICH LEAD TO THE GROWTH OF TATA MOTORS ACQUISITIONS EXPANSION JOINT VENTURES INNOVATION
ACQUISITIONS
Tata Daewoo Commercial Vehicle Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus. Hispano Carrocera In 2005, sensing an opportunity in the fully-built bus segment, Tata Motors acquired a 21% stake in Hispano Carrocera SA, the leading European bus and coach cabin maker. In 2009, the company picked up the remaining 79% stake in Hispano Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary. Jaguar Cars and Land Rover After the acquisition of the British Jaguar Land Rover (JLR) business, which also includes the Daimler, Lanchester and Rover brands, Tata Motors became a major player in the international automobile market. On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar Land Rover operations for US$2.3 billion. The sale was completed on 2 June 2008.
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 'Tata Mobile' (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 planned 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-favourite. 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.
JOINT VENTURES
Tata MarcoPolo released a low-floor bus in India and now it is widely used as public transport in Delhi, Mumbai, Chennai, Bangalore, Chandigarh and Lucknow. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. Tata and Marcopolo have launched a low-floor city bus which is widely used by Chennai, Coimbatore, Delhi, Mumbai, Lucknow and Bengaluru transport corporations. Its manufacturing facility is based in Dharwad. Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel engine technology. Tata Motors sells Fiat cars in India through a 50/50 joint venture Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with many small companies in various countries around the world.
In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the world at about 120,000 (US $3000). The city car was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Tata has faced controversy over developing the Nano as some environmentalists are concerned that the launch of such a low-priced car could lead to mass motorization in India with adverse effects on pollution and global warming. Tata Nano Europa was developed for sale in developed economies. Tata Ace
Tata Ace was the India's first mini truck. It is the India's first indigenously developed sub-one ton mini-truck, which was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a
load body produced by Autoline Industries. By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still a top seller for TML with 5 lakh units. Ace has also been exported to several Asian, European, South American and African countries and allelectric models are sold through Chrysler's Global Electric Motorcars division. In Sri Lanka it is sold through Diesel & Motor Engineering (DIMO) PLC under the name of DIMO Batta. Compressed air car Tata OneCAT
Motor Development International of France developed the world's first prototype of a compressed air car, named OneCAT. It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3 minutes. There are no gasoline costs and no fossil fuel emissions from the vehicle.
OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it is said to run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. The limited range and low engine temperatures were the only drawbacks. Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries. The electric Indica was launched locally in India in about 2010. They also launched Electric Hybrid low-floored Star-buses. These were the first environmentally friendly buses to be used for public transportation in India.
Other important marketing strategies are such as the packaging, innovations, and quality control. Tata Motors provide many innovative features to attract car lover. One of these innovations is the Tata Safari 4X4 Dicor that has Reverse Guide System. A weather-proof camera is fixed to the rear car to help the driver while reversing the car. 2. Pricing Strategy There are various factors to determine a price of a car. These factors are such as market condition (it cant be too low or too high with the prices of same vehicle from competitors, it has to be at par), cost incurred to build a car, profit by company, dealer profit. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. Discount can be made from Companys profit or from dealers profit at certain range. 3. Place Place of dealership does play an important role. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership. 4. Maintenance and Support After sales service is also another important marketing strategy for most of the car buyer to choose for the right car. End user will not want to spend a lot of time to travel to a far place just to service the car such as change engine oil, oil filter and some simple checking. Parts and accessories must
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also easy to access when it is needed to keep the customer satisfy from buying Tata cars until maintaining the car or even until they sell the car and change to a newer Tata model.
TATA IN INDIA
A loaded Tata truck on a Rajasthan highway Tata Motors Limited is Indias largest automobile company, with revenues of 35,651.48 crore (US$7.95 billion) in 200708. 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 companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, 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.
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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.
PRODUCTS
Passenger cars and utility vehicles
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Tata Aria
Tata Sumo Grande Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria Tata Venture Tata Iris
Concept vehicles
2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Pr1ma 2010 Tata Versa 2010 Tata Essota 2011 Tata Pixel
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Commercial vehicles
Tata Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1623 (Rear Engined Low Floor bus chassis) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger transportation) Tata Divo (Fully built luxury coach) Tata CityRide (12 20 seater buses for intra-city use) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (82) Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (64) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military vehicles
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Tata LSV (Light Specialist Vehicle) Tata Mine Protected Vehicle (44) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 44, and 42 versions Tata LPTA 713 TC (44) Tata LPT 709 E Tata SD 1015 TC (44) Tata LPTA 1615 TC (44) Tata LPTA 1621 TC (66) Tata LPTA 1615 TC (42) Tata Winger Passenger Mini Bus
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