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Tata Indica_case Study

Tata Indica_case Study

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Published by Dr Adil Mirza

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Published by: Dr Adil Mirza on Jan 14, 2009
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05/10/2014

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COMPANY PROFILE
Inception
Tata Motors Limited is India's largest automobile company, with revenues of Rs.24,000 crores (USD 5.5 billion) in 2005-06. By far it is the leader in commercialvehicles in each segment. It is also the second largest in the passenger vehiclesmarket with winning products in the compact, midsize car and utility vehiclesegments. The company is the world's fifth largest medium and heavycommercial vehicle manufacturer.Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.. The company's manufacturing base is spread acrossJamshedpur, Pune and Lucknow, supported by a nation-wide dealership, sales,services and spare parts network comprising over 2,000 touch points. Close to 4million Tata vehicles ply on Indian roads, since the first rolled out in 1954.The foundation of the company's growth over the last 50 years has been a deepunderstanding of economic stimuli and customer needs, and the ability totranslate them into customer-desired offerings through R&D. Established in1966, the company's Engineering Research Centre, with 1,400 engineers andscientists, has developed pioneering technologies and products. Today thecompany has R&D centers in Pune, Jamshedpur, Lucknow, in India. And notonly this, it also has R&D centers in South Korea, Spain, and the UK.The pace of new product development in Tata Motors has quickened. In 2005,the company created a new segment by launching the Tata Ace, India's firstindigenously developed mini-truck. The years to come will see the introductionof several other innovative vehicles, all rooted in emerging customer needs.Besides product development, the R&D centers of the company are also focusingon environment-friendly technologies in emissions and alternative fuels.
 
GLOBAL PRESENCE
Today, Tata branded vehicles can be seen in several countries like Europe, Africa,the Middle East, Australia, South East Asia and South Asia. So, Tata Motors is notonly at the forefront of the Indian automobile industry, it is also one of India's bestknown brands in international markets.Tata Motors is the first company from India's engineering sector to be listed inthe New York Stock Exchange (September 2004). It has also emerged as a globalautomotive company. In 2004, it acquired the Daewoo Commercial VehiclesCompany, Korea's second largest truck maker. The rechristened Tata DaewooCommercial Vehicles Company has already begun to launch new products. In2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake aswell. Hispano's presence is being expanded in other markets.In 2006, the company formed a joint venture with the Brazil-based Marcopolo, aglobal leader in body-building for buses and coaches, to manufacture andassemble fully-built buses and coaches. Tata Motors already distributes andmarkets Fiat branded cars in India. To establish an industrial joint venture inIndia to manufacture passenger vehicles, engines and transmissions for the Indianand overseas markets; Tata Motors and the Fiat Group have recently signed amemorandum of understanding.The company's commercial and passenger vehicles are already being marketed inseveral countries in Europe, Africa, the Middle East, Australia, South East Asiaand South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh,Ukraine, Russia and Senegal.These acquisitions will further extend Tata Motors'global footprint, established through exports since 1961.
 
Product: TATA INDICA V2The Brand value
Indica, the first truly Indian car heralds India’s arrival on the global automobilearena. The company strives to make the Indica accessible to the value-seekingIndian, without compromises. It is a trustworthy, reliable car that appeals to thehead as well as the heart. The brand is recognized as one of the strongest and mostenduring of the past decade and has consistently figured amongst the most trusted brands in industry surveys. The Tata Indica catapulted the Indian automobileindustry into the big league of the global arena.It has been created in an industry rife with global competition, requiring hugefinancial investment and scale as well as high technological competence. 
Facts about Indica
Tata Motors is the youngest passenger car company in the world.
The car came into being – concept freeze to launch – in just 31 months.
The name, Indica, was derived from two words – India’s Car.
The Indica sold its second 100,000th car in a record period of less than 18months.
Indica’s investment of Rs. 19.20 billion for a capacity of 150,000 carsachieved cash profits in its third year and net profits in its fourth.
Indica catapulted Tata Motors as the second largest player in the Indian passenger vehicle market.
In the Indian car industry, Indica Club is the largest brand loyalty program.
Indica is instrumental in creating a Rs. 46 billion passenger car business for Tata Motors within five years of its launch.
Indica investment became EVA positive in its fifth year – a rare distinction inthe automobile world.

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