Tata Motors, leader in commercial vehicles, is India's largest automobilecompany with revenue of USD 14 billion in 2008-09. Tata Motors, the firstcompany from India's engineering sector to be listed in the New York StockExchange and has operations in the UK, South Korea, Thailand and Spain. Tata Motors started operations in 1945 and entered commercial vehicle sector in1954 after forming a joint venture with Daimler-Benz that lasted till 1969. Inmore than six decades of its operations, it has grown both organically andinorganically. In 2004, Tata Motors bought Daewoo’s truck manufacturing unit inSouth Korea followed by the acquisition of the Hispano Carrocera in South Africa.In 2008, it acquired prestigious brands Jaguar and Land Rover from Ford MotorCompany. This acquisition was important since before that Tata Motors wasconsidered as a formidable global player at lower market segment only.
The current strategy of the Tata Motors can best be summarized as ‘DisruptiveInnovation’, wherein it has offered lower priced products and surpassed themarket expectations. Its two latest offerings have further strengthened the TataMotors position as a leading player. While Ace has been a rage in the market, Tata Nano has taken the world with awe.Much of the practices of Tata Motors, including its customer focus, attributes tothe learning and experience of over six decades. Tata Motors that started with ahuge success and market demand faced its first product failure in the launch of 1516. With the foreign players entering India, Tata motors that was primarilyfocusing on High weight commercial vehicles, included LCV in its offering andcame up with Tata 407. Tata Motors in the meanwhile was also vying to developend to end in-house technical competence and thus ventured into engine designby partnering with Cummins. Tata motors continuously faced the problem of overloading by the users and responded by introducing stronger machines.However, a major change came after a heavy loss of Rs 550 cr in 1999 where init re-aligned its marketing team and became more sensitized to customer needs. The revival strategy of Tata motors had three phased business plan. Firstly, itfocused on the cost reduction initiatives for immediate turnaround. Secondly, itfocused ondomestic and international growth through new products andimproved sales and service. Finally, it linked long term growth with increasedbusiness in LCVs, new product segments and new geographies. The strategy andlearnings have gone a long way with Tata Motors earning net profit of more thanRs 1000 cr even in a lean FY 2008-09.
Tata Motors being part of the Tata conglomerate has its philosophy deeply linkedto the core philosophy of the Tata group. It has fair, ethical and transparentgovernance practices along with highest standards of professionalism, honesty,integrity and ethical behaviour. The company gives maximum importance to the3