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PGDM(A)--Group 8


Submitted To: Prof. Vikram Parekh (Prof. Business Strategy) Submitted By: Mohammad Shayzi -(40) Dinbandhu Sabat-(60) Kaustubh Patwardhan-(121) Faisal Kadri-(123) Kavita Jayaraman-(124)


PGDM(A)--Group 8

These days most newspapers carry de tails of new multinational companies by various companies in the current market scenario where there is a cut throat competition. In order to retain the market share or capture new markets the companies competes in all possible ways be it in the terms of innovation, new product development, coping with the external as well as the internal environment and so on. Also in most of the cases, the Merger or Acquisition is a strategic move to improve the companies financial standing. It has been a great pleasure in preparing this project report on TATA Motors. The whole experience was a rewarding one, especially in terms of knowledge and information. This project would not have materialized without the help and guidance Prof. Oberoi for giving us this opportunity to work on this project.

Table of Contents


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Introduction...............................................................................4 Facts and Figures......................................................................10 Milestone Achieved................................................................... 16 Levels of strategies.................................................................... 20 PESTEL Analysis..................................................................... 23 Value Chain Analysis............................................................... 27 Core Competency.....................................................................3 0 Rule Of Three........................................................................... 31 ANSOFFS Matrix.................................................................. 34 PORTERs Five Force Model................................................. 37 BCG Growth-Share Matrix.................................................... 39 SWOT Analysis........................................................................ 41 Future Plans.............................................................................. 44 Suggestion And Conclusion..................................................... 45 References................................................................................. 46



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About TATA Motors: Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. 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 manu facturer, and the world's second largest bus manufacturer. The Company's 24,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 5.9 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 (Mah arashtra), 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 powertrains. 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 oper ations 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 Sou Korea are from Tata Daewoo. In 2005, th Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a 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 w Thonburi Automotive Assembly ith 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 in 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, Senegal and South Africa. 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 customerdesired offerings through -


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leading edge R&D. With over 3,000 engineers and scientists, the Company's Engineering Research Centre, established in 1966, has enabled pioneering technol gies and products. The Company today has R&D o centres in Pune, Jamshedpur, Lucknow, Dharwad 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). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two wheelers being manufactured in India today. The lean design strategy has helped minimiseweight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. 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. In May 2009, Tata Motors introduced 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 called Prima. 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. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. 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. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The Company's support on education and employability is focussed on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative healthcare. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but no the t


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least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

History of Tata Motors: The Tata Group was founded in 1868 when India was under British Empire. The group formed their textile business in 1874 and Steel manufacturing in 1907. In 1945, Tata Sons Limited started the automotive business with manufacturing steam locomotive boilers after purc hasing the shops of East Indian Railways from Government of India, which was under the British Government in that year.

After purchasing these shops, the Tata sons decided to establish Tata Engineering and Locomotive Company Limited (TELCO Limited) and establish the primary manufacturing facility in Jamshedpur (an industrial city in Eastern India). This company was managed by J.R.D. Tata from 1945 to 1973 and by Sumand Moolgaokar from 1973 to 1988.

Sumand established the second manufacturing facility in Pune India looking into the boom in the auto market. In 1991 Ratan Tata took over the Tata Empire from his uncle and moved the Tata group out of the sectors where they were not very competitive like Cement and Textiles. Today, Tatas largest manufacturing businesses are Steel and Motors after the consolidation carried out by Ratan Tata. As on end of financial year 2008, the Tata Group has an annual turnover in excess of $30 Billion out of which more than $9 Billion is contributed by Tata Motors.

TELCO Limited is now widely known as Tata Motors that is among the worlds top five manufacturers of medium and heavy trucks and worlds second largest manufacturer of medium and heavy busses. Tata possess a strategic engagement with Mercedes Benz for assemblingand selling Mercedes Benz commercial vehicles and passenger cars in India.

Another strategic tie up that they possess is with Cummins pertaining to their diesel engines through Tata Holset Limited. In fact, Tata Motors contributed to the Cummins Diesel engines by adding turbo chargers on them vide their joint manufacturing operations with Tata Holset Limited.


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The only partnership of Tata that didnt go well was with Rover Group of Britain that went bankrupt in year 2005. Tata tried entering the European markets through a model named CityRover that faired poorly due to its negative publicity, higher price and poor quality compared to the competition.Ratan Tata is now 70 years old but still presents the image of a dynamic, innovative and revolutionary entrepreneur. He is known for high aggressive moves for the benefits of Tata Motors customers. In 1997, Tata Motor s launched its first indigenously developed car named Indica that currently possesses more than 15% of the car market share in India.

The other car models of Tata Motors that are popular in India and some markets of Asia are Tata Indigo, Tata Sierra, Tata Sumo and Tata Safari. In 2008, Tata achieved a global publicity due to two major activities that made headlines worldwide. In the Geneva Motor show they presented their four seater small car named Nano priced about $2500 which is expected to be the che apest car of the world.

In March 2008, Tata Motors acquired the two globally prestigious co mpanies Jaguar and Land Rove from Ford Motor Company. It is assessed that Tata Motors did so to achieve a new image of a global automotive company like Ford Motor Company given that their business span has largely remained indigenous within India for a long time. Mission: a) Passenger Car Business Unit To provide passenger vehicles that offer customers exceptional value, and through this build a company that provides its shareholders with superior returns, and is seen by society & other stakeholders as a valuable contributor to their development b) Commercial Car Business Unit Shareholders To consistently create shareholder value by generating returns in exce of Weighted Average Cost ss of Capital(WACC) during the upturn & atleast equal to weighted average cost of capital(WACC) during the downturn of the business cycle. Customers To strengthen the Tata brand and create lasting relationships with the customers b working closely y with business partners to provide superior volue for money over the life cycle. Employees


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To create a seamless organisation that incubates and promotes innovation, excellence and the tata core values. Vendor and channel partners To foster a long-term relationship so as to introduce a broad range of innovative products and services that would benefit our customers and other stake holders. Community To proactively participate in reshaping the countrys economic growth. To take a holisticapproach towards environmental protection.

Vision: a) Passenger Car Business Unit To evolve into a World Class Indian Car Brand. b) Commercial Vehicle Business Unit To be a world class corporate constantly furthering the interest of all its shareholders. Core Values: a) Core Values of Passenger Car Business Unit Our core values are built upon the traditions of the Tata Group with emphasis on 1. Trust: We must have faith of the product that we make & to respect the value of our customer. 2. Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. 3. Concern for the well-being of both the employees & the society: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

b) Core Values of Commercial Car Business Unit The core value of Commercial Vehicle Business unit are1. Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. 2. Customer Focus: We must understand the requirement of the customer & to continue to improve the quality of our product.


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3. Corporate Citizenship: We must continue to have a global presence in the corporate world for becoming a global company. 4. Passion for Engineering: We must have a passion to innovate constantly in making our product. Sustainability The Tata Group is guided by the Principle of Trusteeship and the conviction that Free Enterprise, in order to thrive, must serve the needs of society. This is the cornerstone of our CS initiatives. Tata Motors is committed, in letter and spirit, to the improvement in the quality of life of people. Need for Proactive Stance Equally, Tata Motors believes in being proactive in achieving a balance between business growth and social and environment related needs. Hence, the companys business focus is both on personal and public transportation. Hence the company is itself working on or supporting development of alternate fuels, electric and hybrid vehicles, both for personal and public transportation. Need to go beyond Compliance Whether in pursuing its business growth or meeting its responsibilities, Tata Motors intent is to contribute by doing the right thing as against merely being compliant by not doing the wrong things. Boost to Brand Image In a global syndicated study conducted by TNS across 18 major automotive markets, it was evident that general publics perception of a companys conduct is a strong reflection of the overall market sentiment towards that company. 94% of the Indian respondents and 89% of the res pondents across the globe maintained that they were more likely to purchase a product or a service from a company that they believe follows responsible and ethical business practices. Tata Motors approach endorses contributing back to society from which it draws resources, and communicates the impact of its initiatives to all stakeholders.

Facts And Figures


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FINANCIAL PERFORMANCE SUMMARY OPERATING RESULTS AND PROFITS After the economic downturn and difficult market conditions in the automotivesector globally in 2008-09, during the year, economies across the world (with a few exceptions) showed signs of recovery and growth. The Indian economy bounced back quickly and strongly growing at 7.2% in 2009-10. The automotive sector in India started the year steadily, gathered momentum in different segments in the second half of the year and ended the year with a record growth and performance. The Companys turnover, in this background and with a strong portfolio coupled with successful launch of new products and variants in commercial vehicles and passenger vehicles, was Rs.38,364 crores, a growth of 34.3% over the previous year. The volume growth coupled with other actions on pricing and cost reduction enabled the Company to achieve significant improvement in EBIDTA margin to 11.7% (6.8% in 2008-09). The Profit Before Tax of Rs.2,830 crores and Profit After Tax of Rs.2,240 crores also grew significantly over the previous year by 179.1% and 123.7% respectively. The Tata Motors Group turnover was Rs.95,567 crores, a growth of 29% over previous year contributed mainly by market recovery, improved realization and successful launch of new products. Consolidated Profit Before Tax was Rs.3,523 crores (Loss of Rs.2,129 crores in 2008-09) and Consolidated Profit for the year was Rs.2,571 crores (Loss of Rs.2,505 crores in 2008-09).

VEHICLE SALES AND MARKET SHARES The Company recorded a sale of 633,862 vehicles in 2009 -10, a growth of 34% over previous year (472,885 vehicles) in the domestic market in India, representing a 25.5% share in the industry (improving from 24.4% share in the previous year). Commercial vehicle sales were highest ever at 373,842 vehicles achieving a robust growth of 40.9% over previous year and a market share of 64.2% (a gain of 0.4%, over previous year). A strong product portfolio, successful launch of new products and variants, extensive efforts in marketing and finance enablement for customers and leadership in market research and penetration, contributed to the significant improvement in overall performance. Some of the key highlights were:- In M&HCV, growth of 36.5% to 155,161 vehicles and a market share improvement to 63.3% (from 61.9% in the previous year); launch of the next generation of heavy trucks - Prima range; completion of delivery of 1,625 low entry buses to Delhi Transport Corporation and delivery of major portion of the orders of over 5,000 buses under JnNURM Scheme of Government of India for modernizing the public transport in India. - The Light Commercial Vehicle (LCV) sales recorded a spectacular growth of 45.4% in FY 2009 -10. While this was largely aided by the growth in the small commercial vehicles, the rest of the segment also grew handsomely. The competition in the small commercial vehicle range increased resulting in a 0.5% loss in the domestic market share reducing it to 64.8%. The Companys sales increased by 44.2% to 218,681 LCVs. The Company launched new variants on the Ace platform, Ace EX, Super Ace and the 407 Pickup which are expected to help in gaining volumes. Passenger vehicle sales were 260,020 vehicles, highest ever, achieving a growth of 25.3% over previous year and a market share of 13.7% (stable compared to 13.6% in the previous year). The Company continues to be amongst the top three players in the passenger vehicle market which has over 25 players. The growing sales of the new generation Indica Vista

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and successful launch and market response for the Indigo Manza mainly contributed to the growth. Some of the key highlights were: - In the Small Car segment, increase in market share to 13.3% (as against 12.7%, in the previous year), with the growing sales of Indica Vista, sales of the Nano and the Fiat Punto; - Commencement of sales of Nano in July 2009 and completing deliveries of 30,763 cars to the c ustomers and commencement of trial production in the Sanand plant. - The Indigo range sales of 54,551 units, a growth of 10.9% over the previous year and also the highest ever sales by the Company in this range, mainly due to the launch of the Indigo Manza in October 2009. - Sale of 33,507 Multi-Utility Vehicles (MUVs), a decline of 14.7% against the last year and as a result the market share dropped to 12.4%. The Grande Mk II which was launched in December 2009 has been well accepted in the market and is expected to help in regaining market share in the UV segment. Sale of 24,884 Fiat cars which has given Fiat a 1.3% market share as against 0.5% in the previous year with Linea sales at 11,102 nos. (a segment share of 10.1%) and the Grande Punto sales at 13,281 (a segment share of 3.5%). - The Company sold 225 Jaguar and Land Rover vehicles through its exclusive dealerships in India in the first year of the sales of the Jaguar Land Rover brands. The Companys international business remained affected by th economic downturn in many of the key e markets. The Companys commercial vehicle exports grew moderately by 4.7% to 27,878 vehicles and passenger vehicles exports declined by 9.9% to 6,231 vehicles. With improved economic outlook and market recovery and with the new product range, the Company expects significant improvement in its international business in the future. Tata Motors Group sales were 880,396 vehicles across its entire range of products and markets. The key highlights were: - The Company has sold 667,971 vehicles. - Jaguar Land Rover achieved sale of 193,982 vehicles as compared to 167,348 vehicles in 2008 (in 10 -09 months since Tata Motors acquisition of the business in June 2008). Jaguar Land Rover continued to enhance its product offerings through an all new XFR, powertrain offerings and 2010 model year vehicles. The new Jaguar XJ was unveiled in London in July 2009 and had its public debut at the Frankfurt Motor Show in September 2009. - In South Korea, Tata Daewoo Commercial Vehicle Company Limited (TDCV) successfully launched the new premium truck platform Prima; TDCV sales were stagnant at 9,011 vehicles in Korea and international markets as compared to 9,137 vehicles in the previous year. - In Thailand, Tata Motors (Thailand) Limited saw a very good response to the CNG version of the Tata Pick-up vehicle Xenon. TATA MOTORS FINANCE LIMITED- CUSTOMER FINANCING INITIATIVES The vehicle financing activity under the brand Tata MotorFinance (TMF) of Tata Motors Finance Limited, a wholly-owned subsidiary company, financed a total of 1,44,806 vehicles during the year as compared to 1,00,611 vehicles in the previous year. Total disbursements were Rs.6,697 crores as against Rs.4,900 crores in the previous year. The disbursals for new commercial vehicles were Rs.5,123 crores (96,593 units) as compared to Rs.3,319 crores (59,467 units) during the previous year. For passenger cars, total disbursements were Rs.1,454 crores (48,213 units) as compared to Rs.1,288 crores (41,144 units) in the previous year. The market share in terms of products financed by the Company increased from 22.4% in commercial vehicles to 26% and remained constant at 21% in passenger cars. TMF has shown improvements in disbursements as well as Net Interest Margins, mainly driven by the overall economic recovery coupled with a strong focus on controlling costs,
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improving quality of fresh acquisitions, micromanagement of collections. TMFs strategy on controlling, managing and reversing non-performing assets (NPAs) and Risk Scored Pricing Model thrust on customer relations and a branch based re-organised field structure has set a robust platform to enable future growth. HUMAN RESOURCES & INDUSTRIAL RELATIONS Industrial Relations were cordial at all locations. In a challenging environment and business conditions, the support from the workforce and unions was positive throughout. The key highlights in the human resources and industrial relations were:- The Companys plant at Uttarakhand was conferred with the prestigious Golden Peacock Award for Safety & Environment and the National Award for energy conservation by the Ministry of Power. The Pune plant received the Frost and Sullivan Green leader award for 2009 in the automotive sector. The Jamshedpur plant obtained arevised and updated certification under SA 8000 - a global social accountability standard for working conditions, certifying labour practices at the facilities including those of suppliers. Towards organizational health and safety, the plants at Jamshedpur, Pune, Uttarakhand and Lucknow are certified under OHSAS 18001. The communication on progress during 2009 was submitted to the United Nations Global Compact. The -10 Company has also submitted GRI report for 2008-09 based on G3 Guidelines of sustainability reporting framework. The Company also undertook several initiatives, including on -line tools for performance improvement, employee development and training. - At Jaguar Land Rover, the year under review was dominated by the economic downturn and the needto cut costs quickly, which resulted in large numbers of non-production shifts in the 3 UK plants (Castle Bromwich, Halewood and Solihull). Jaguar Land Rover worked closely with its Trade Unions and negotiated a Framework Agreement which secured 68 millio of cost savings. It closed its Defined n Benefit pension scheme to new workers with effect from April 24, 2010, by introducinga Defined Contribution scheme. All Jaguar Land Rover sites have been prepared to commence certification process for OHSAS 18001 external accreditation for Health and Safety standards, commencing July 2010.

FINANCE The borrowings of the Company as on March 31, 2010 stood at Rs.16,625.91 crores (previous year Rs.13,165.56 crores). The key highlights were:- In 2009-10, the Company raised Rs.4,200 crores from the issue of Secured, Rated, Credit Enhanced, Listed, 2% Coupon Non-Convertible Debentures (NCDs) with premium on redemption and Rs.200 crores from the issue of 9.95% Secured NCDs. - In a challenging financial market environment, the Company successfully rolled over in May 2009, the bridge finance it had obtained for acquisition of the Jaguar Land Rover business for a period of 18 months, till December 2010. Subsequently, the Company was able to prepay this loan facility in October 2009 from certain divestments, improved cash generation from operations and also through fund raised, US$ 375 million from the issue of Global Depository Receipts and US$ 375 million from issue of Foreign Currency Convertible Notes. - Further, the Company made a limited period enhanced conversion offer to the non -U.S. holders of the 0% JPY 11,760 million and 1% US$ 300 million Convertible Notes. The offer met with great success with bondholders representing 93% of the JPY bonds and 76% of US$ series bonds, opting to convert their bonds into Ordinary Shares, which resulted in debt of US$ 345 million being extinguished against the issue of 26.64 million Ordinary Shares.
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- The Company also sold 20% stake in Telco Construction Equipment Company Limited ( elcon), in T favour of Hitachi Construction Machinery Co. Ltd. (Hitachi) for a consideration of Rs.1,152.51 crores (net of expenses) resulting in the Companys shareholding being reduced to 40% (on consolidated basis). Jaguar Land Rover completed guarantee arrangements to facilitate the drawdown of a 338 million loan from European Investment Bank for its projects aimed at emission reduction, besides other financing activities like an inventory financing facility; renewal of a US$200 million loan; and repaid short term borrowing totaling 220 million. Tata Motors Group debt:equity ratio in the operations continues to remain high at 4.3:1, though significantly bought down from 5.9:1 as at March 31, 2009. The Board is conscious of this, and the need to strengt en the long-term h funding for the business. The Company will further consider suitable steps to de-leverage and hence de-risk the balance sheet from volatility and has also taken and will continue to implement suitable steps for raising long term resourcesto match the Companys fund requirement and to optimize its loan maturity profile. The Companys rating for foreign currency borrowings was revised by Standard & Poor to B (Positive Outlook) and by Moodys to B3 (Stable Outlook). For borrowing in local currency the rating was revised to A+ (Stable Outlook) by Crisil and to LA+ (Stable Outlook) by ICRA. INFORMATION TECHNOLOGY INITIATIVES Tata Motors' Group continued to reinforce its IT capabilities in all areas of business in design/ engineering, manufacturing, vendor interface and dealer/customer interface functions. The major initiatives undertaken were:- in Product Development/Engineering, 3D design visualization capability, enriching digital content by adding behaviour to digital models, Knowledge Based Engineering tools and enhanced digital collaboration with vendors; Digital manufacturing solutions and validation was extensively deployed for the Nano facilities planning; manufacturing Execution systems implemented in the high-volume plants at Uttarakhand and Sanand; - Supplier portal, which facilitates close collaboration from design/development stage to production planning and scheduling; - CRM-DMS program enhancements, which further enrich the on -line common platform system for the Companys sales, spare parts service activities and for all channel partners, giving the Company an on -line real-time market and customer interaction and information capability; - Extension of customer touch points through web, call centre and SMS. - Jaguar Land Rover completed the process of separating its operations in markets where it previously operated as a part of the Ford legal entity and the process to separate the IT infrastructure and support systems is expected to be completed shortly. Jaguar Land Rover also rolled out its new SAP solution to many of its existing National Sales Companies around the world including South Africa, Brazil, North America, France and China. Jaguar Land Rover has initiated a major programme to re-engineer Product Creation capability, covering every aspect of Product Lifecycle Management (PLM) from concept to recycling, delivering a system that will provide everyone with immediate access to all Product Creation information, with simple-to-use, graphically-orientated user interfaces. Tata Technologies Limited continues to be a key strategic partner in several of these technology initiatives. NEW PRODUCT, TECHNOLOGY AND ENVIRONMENT - FRIENDLY INITIATIVES Product Development

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Tata Motors' Group continuously assesses customer needs to developnew and innovative products which deliver better value to its customers. In pursuance of this strategy, the Company has developed significant in-house capabilities and works with a range of partners to keep its product profile rich and meet market expecta tions. Some of the key initiatives and projects include :- The new heavy truck range Prima unveiled in May 2009, will be enriched through several product and application variants such as tractor trailers, tippers, rigid trucks over the next few years. TDCV received the Grand Prize of 2009 Good Design Selection of Korea for the Prima, and development on a range of light trucks is underway. - The new range of buses (based on the Prima platform with bodies being made by Tata Marcopolo displayed at the Delhi Auto Expo in January 2010) have been launched. Tata Hispano has developed a new Intercity Coach the Xerus and a new Suburban Bus, the Intea and is working on developing a range of other buses. - In small commercial vehicles, the Ace platform is being exploited to introduce variants to address various market segments. The Ace EX and Super Ace have been launched and the Company will introduce the multi-purpose vehicle, Venture, the passenger vehicle variant, Magic Iris and the micro-truck Ace Zip. - The Aria, India's first indigenously developed crossover vehicle, showcased at the last Auto Expo is expected to be launched in the first half of 2010-11. - Variants of the Nano, to suit specific needs of the domestic and international markets are being developed. Increased thrust is being made to explore opportunities for launch of the Indica Vista and the Indigo Manza in various international markets. - In July 2009, Jaguar Land Rover launched to the world, the beginnings of its response to Environmental and C02 challenges with more compact and efficient vehicles. The New XJ launched in early 2010 -11, features the next generation Jaguar's aerospace-inspired aluminum body architecture enhanced power train with ultra efficient petrol and diesel engine variants, highest standards of personal luxury and specifications, amongst which is its instrument cluster with a 12" thin film transistor (TFT) screen. The Range Rover Evoque, a new more compact product, with class leading C02 performance and technology is under development. The product will showcase technology features including 'Park -for-you' and 'Magnaride' to deliver outstanding Chassis dynamics, whilst also showcasing increased use of Aluminium and composites for exterior body panels to reduce weight. Development of Environment-friendly Technologies As a responsible automobile manufacturer, Tata Motors' Group aims to develop vehicles and technologies to reduce the carbon footprint by developing vehicles running on alternative fuels and hybrids such as: Development of a complete range of CNG vehicles including Ace, Magic, Xenon, Winger, Indigo and also trucks and buses. Over 2200 CNG fuelled buses were supplied to Delhi Transport Corporation. Tata Motors (Thailand) Limited was the first OEM to offer a factory fitted CNG variant of the Xenon pickup in the Thai market. Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) pioneered the development and introduction of the first Liquefied Natural Gas (LNG) tractor trailer and the LPG MCV truck in the South Korean market. - Hybrid technologies offer perfect solutions for certain commercial vehicle applications. The Company is working on developing Diesel and CNG hybrid solutions for city bus applications in India and also in Spain through its subsidiary Tata Hispano. Tata Hispano received a grant from the Spanish Government for the development of a Hybrid Low Floor City Bus. The Company is working on both, series and parallel hybrid solutions and plans to display the vehicles during the Delhi CommonwealthGames in October 2010. A mild-hybrid on the Ace platform - Ace Ex with a start-stop arrangement which delivers a saving in fuel consumption in heavy traffic conditions was launched in the previous year.
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- On the electric vehicle range, the Company has secured its position in resear and development of ch electric vehicle technology. Ace EV, displayed at Zaragosa exhibition in 2008 and Vista EV displayed at Geneva Motor show in 2009, are in advanced stages of development. These vehicles will be launched in the European markets, especia the northern lly European market where there are strong fiscal incentives for such vehicles in the urban city centers. - The Company is simultaneously working to introduce a range of technologies, which will help in reducing fuel consumption on its petrol and diesel powered vehicles such as improved fuel injection systems, electric power steering, radial tyres for commercial vehicles, low resistance tyres, automatic transmissions and weight reduction of components. - Despite the severe financial conditions of the last 12 months, Jaguar Land Rover has continued to invest heavily in process and product research. During the past 12 months, 120 technology projects have been progressed toward implementation on future programmes. The 10 model year programmes deliv ered a range of advanced technologies including Dual View Screen(world first), Continuously Variable Damping, Auto Headlamp Dipping and Advanced All Round Camera features. All of these were well received by the press and customers alike and served to rais the technology image of Jaguar Land Rover e products. - Further, an extensive range of new technologies are under development for future programmes including 'Series' and 'Parallel' hybrid vehicles, with the first generation of full parallel hybrids movingtowards application readiness later this year. Other projects include Limo-green (series Hybrid), Power train downsizing, EV transmissions, etc; some of which have been successful in securing government funding. SUBSIDIARY/ASSOCIATE COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS a. During the year, the following changes have taken place in subsidiary companies: Subsidiary companies formed/acquired: Tata Hispano Motors Carrocera S.A., (Hispano) became a subsidiary consequent upon the Company exercising its put option and increasing its stake from 21% to 100%. Consequently its wholly owned subsidiary Carrosseries Hispano Maghreb, Morocco also became the Company's subsidiary. JaguarLandRover Limited, the Companys subsidiary formed the following subsidiaries viz. Jaguar Land , Rover BrazilLLC, Limited Liability Company "Jaguar Land Rover" (Russia), Land Rover Parts Limited and Land Rover Parts US LLC. Companies ceasing to be subsidiary companies: The Company partially divested 20% stake in Telco Construction Equipment Company Limited (Telcon) in favour of Hitachi Construction Machinery Co. Ltd (Hitachi). Consequently, its stake in Telcon was reduced to 40% (on consolidated basis), resulting in Telcon and its 5 subsidiaries, viz. Serviplem S. A., Baryval Assistencia Tecnica S.L., Comoplesa Lebrero S.A., Inner Mongolia North Baryval Engineering Special Vehicle Corporation Ltd and Eurl Lebrero France, ceasing to be subsidiaries of the Company in March 2010 and have become associate companies. INCAT Holdings BV, INCAT KK and Lemmerpoort BV, subsidairies of Tata Technologies Limited and Jaguar & Land Rover Asia Pacific Company Limited, a subsidairy of JaguarLandRover Limited were liquidated. Miljo Innovasjon AS was merged with Miljobil Grenland AS.

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 Tata Engineering and Locomotive Company Limited was established to manufacture locomotives and other engineering products.

1948:  Stem road roller introduced in collaboration with Marshall sons (UK). 1954:  Collaboration with Daimler Benz AG, W.Germany, for manufacture of medium commercial vehicles.  The first vehicle rolled out with in 6 months of the contract. 1959:  Research and Development Center set up at Jamshedpur. 1961:  Exports began with the first truck being shipped to Ceylon, Now Srilanka. 1966:  Setting up of the engineering research center at pune to provide impactsto 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 hydraulics excavator produced with Hitachi collaboration. 1986:  Production of first light commercial vehicle, Tata 407, indigenously designed followed by Tata 608. 1991:  Launch of the first indigenous passenger car of Tata Siera.  One million vehicles rolled out.

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1992:  Launch of Tata estate. 1993:  Joint venture agreement signed with Cummins Engine Co. inc. Powe and emission friendly diesel r engines. 1994:  Launch of Tata Sumo. The multi utility 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., U.K. for manufacturing turbo chargers to be used on Cummins engines. 1995:  Mercedes Benz Car E 220 launched. 1997:  Tata Sierra Turbo launched 10000,000th Tata sumo rolled out. 1998:  Tata Safari Indias first sports utility vehicle launched.  2 million vehicles rolled out.  Indica, Indias first fully indigenous passenger car launched. 1999:  115,000 bookings for Indica registered against full payment within aWeek.  Commercial production of Indica commences in full swing. 2000:  First consignment of 160 Indicas shipped to Malta.  Indica with Bharat stage 2 (Euro II) complaint diesel engine launched.  Launch of CNG buses. 2001:  Indica V2 launched 2nd generation indica  Indica V2 becomes Indians number one car in its segment.  Exits joint venture with Daimler Chrysler. 2002:  Unveiling of the Tata Sedan at Auto Expo 2002.  5,00,000th passenger vehicle rolled out.  Tata Engineering signed a product agreement with M G Rover of the UK.

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2003:  The Tata indigo station wagon unveiled at the Geneva motors show.  On 29th July J.R.D Tatas birth anniversary, Tata Engineerings becomes Tata Motors Limited. 2004:  Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment Agreement.  Tata Motors completes acquisition of Daewoo Commercial Vehicle Company.  Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty truck 'NOVUS' , in Korea.  Tata Motors lists on the NYSE. 2005:        

Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune Branded buses and coaches - Starbus and Globus - launched Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company Tata Motors wins JRD QV award for business excellence. Inauguration of new factory at Jamshedpur for Novus Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched Launch of Tata Novus Launch of Novus range of medium trucks in Korea, by Tata DaewooCommercial Vehicle Co. (TDCV)

2006:  Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built buses & coaches for India & markets abroad.  Tata Motors first plant for small car to come up in West Bengal.  Tata Motors extends CNG options on its hatchback and estate range .  TDCV develops South Korea's first LNG-Powered Tractor- Trailer.  Tata Motors and Fiat Group announce three additional cooperation. Agreements. 2007:  Construction of Small Car plant at Singur, West Bengal, begins on January 21 .  Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi),announce formation of a joint venture company in Thailand to manufac ture,assemble and market pickup trucks.  Tata-Fiat plant at Ranjangaon inaugurated.  Fiat Group and Tata Motors announce establishment of Joint Venture in India . 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. 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.

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 2009:       Tata Motors is Official Vehicle Provider to Youth Baton Relay for TheIII Commonwealth Youth Games Pune 2008. Tata Marcopolo Motors, Dharwad plant beings production Tata Motors launches Nano - The People's Car 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 Tata Nano wins the Indian Car of the Year (ICOTY) Award Tata Motors acquires remaining 79% in Hispano Carrocera.

2010:  Appointment of Mr. Carl-Peter Forster as Managing Director of Tata Motors.  Tata Motors to construct heavy truck plant in Myanmar under Government of IndiasLine of Credit.  Tata Motors declared as the Commercial Vehicle Maker of the Year.  Tata Motors Passenger Car Division launches Tata Motors Service Edge for leading edge customer service.  Chief Minister of Punjab inaugurates Tata Motors supported State Institute of Automotive and Driving Skills.  Tata Motors appoints Mr. Carl-Peter Forster as Group CEO. Tata Motors Group displays the widest range of products and environment friendly technologies at Auto Expo 2010

Level Of Strategies
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Corporate level strategy of Tata Motors Corporate strategy refers to the overarching strategy of the diversified firm. Such a corporate strategy answers the questions of "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?" In Tatas case their corporate level strategy can be seen from their acquisitions such as Jaguar Land Rover, Daewoo etc. It can be seen that Tata Motors have been expanding in India as wellas globally. Its long term strategy is to hold on to its spot of largest automaker in India & also giving value to its customers at affordable prices. The acquisition of JLR confirmed them as a global player in the international automobile market. In In dia, Tata Motors cater mainly to the masses. They mainly produce vehicles which are spacious, good at performance and fuel efficient. They also keep their pricing low so as to increase sales thus increase demand. This makes them very competitive in the Indian automobile market. But the acquisition of JLR changed the entire scenario. Now Tata Motors is trying to cater to classes as well as masses. Having a technical expertise of JLR in Tata Motors was a part of their strategy. Also starting operations of JLR in different Asian countries like China which is the 2nd largest automobile market remains a part of their strategy. Becoming a global player was always a part of their strategy. Distribution & marketing of Fiat cars has become a part of their strategy since the strategic alliance in 2005. Alliance with Fiat has given Tata a big push as far as technical expertise is concerned. Improving sales of Fiat remains on the agenda of Tata Motors in the coming years. Fiat currently are on the backfoot so the alliance with Tata Motors will give them a necessary push as far as sales are concerned. Sales of Tata Nano which is the flagship brand of Tata Motors have gone down currently due to the several problems. Now that those problems have been rectified increasing the sales is on top of the priority list for Tata Motors. Also setting up new plants in diff parts of the country so as to speed up the production so as to meet the rising demand. Thus we can see that Tata Motors is trying to improve the supply chain. New innovations in HMV (heavy motor vehicle) segments like truck, buses etc. is a part o their long term f strategy. Tata motors has already proved to be successful in their mini truck called Tata Ace. Tata Ace has also been successful in countries like Sri Lanka, Bangladesh. So foraying in the different markets remains on their priority list. Tata Grande which was launched couple of years back still has to find its feet in the Indian auto market. It hasnt been as successful as its predecessor Sumo which was an instant success. So improving its sales remains on the agenda of Tata Motors. Also Tata Motors have launched their SUV called Aria with European looks. This marks Tatas entry in SUV market. Sustaining competition from Hondas CR -V which is the leader in that segment remains on their strategy. Giving a quality product at reasonable prices has always been Tatas strategy. It would still make fuel efficient cars so as to cater to Indian customers mainly.

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Business level strategy of Tata Motors As an enterprise under Indias largest multi-holding company, Tata Motors has grown significantly in the past 65 years since its establishment in 1945. The company caters to three main market segments globally: the passenger cars, utility vehicles and commercial vehicles. A significant breakthrough for the company was the development and commercialization of the truly Indian cars - Tata Indica and Tata Indigo. The company produced the first mini-truck, first light and first heavy vehicle and many more firsts in India, being an innovator in their industry. It has followed a strategy of acqu isitions and joint ventures in its mid-stage and launched new products at a rapid pace in different market segments. Today, Tata Motors enjoys the position of being Indias leading automobile manufacturer with increasing presence in Europe, South East Asia, Africa, Australia and the Middle East with a total income of US $4 billion in 2004-05. The company focuses on providing customers the best value for their money and meets European standards and environmental regulations through their advancedtechnologies. TATA Motors is having highest market share in each segment. Year on year sale of vehicles is increasing but Market share is fluctuating. From Oligopoly market CV industry in India will become a prefect competition market. The Indian majors control majority of the market share with TATA motors enjoying major share of that in both cargo and passenger vehicle with a share of 64%. TATA, Ashok Leyland and Mahindra & Mahindra together control over 84% share. Over last 5 years, the CV market has seen global ma jors entering India eyeing to taste this huge potential. A lot of consolidations, JV shave taken place to position them in India, ASEAN market. Tata Motors are taking following steps as a part of their strategy. 1. TATA Motors are going to increase the dealerships / channel partners for the rural marketing. In case of non viability should force the old dealerships to open a branch & increase the market share in that market. 2. Large range of products is increasing the gap b/w supply & demand. TATA Motors should standardize the products. Product should be available at the time of demand, sales & marketing should be pro active & should plan before the demand by estimations. 3. After sales service not satisfactory. Almost every customer complained of the unsatisfactory after sales service being provided by the service stations of the company. Either these people do not deliver the vehicle on time or they hesitate to provide on -route service. This type of behaviour causes a feeling of being ignored inside the customers mind. On the other hand, Customers are very satisfied with the after sales service being offered by Ashok Leyland. Leyland is very good in providing On-Route service which

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is very important for customer satisfaction. TATA Motors should make 24X7 service point one in each district. 4.Territory Infringement: division of the territories of the dealership is not properly don and also the e company does not take any action against the practice of territory infringement. Hence it becomes difficult for some dealers to manage the customers in their territory and also it de -motivates them. This affects the sales of the product in a major way. The Territory Infringement should imposed on dealership strongly. 5. Lack of spare parts: certain bus fleet operators complained of paucity of spare parts with the sales office. The spare parts how so ever small they may be were not available at certain times which led to the loss of revenue being generated by the bus on daily basis. 6.Non- availability of product: Bus fleet operators are not getting delivery of the product asked by them because of the non-availability of the products with the dealer. In that case after waiting for some time customers moved to competitors product. This comes as a cause of major concern because the actual sales of that particular product suffered leading to loss of revenue for the organization. 7.Product Improvements: Till now only few models are coming with radial tyres as standar fitments. Need d to work on automatic transmissions, Common rail Engines & many more technology advancements.


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Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the Middle East, and Australia, it needs to pay close attention to the political climate but also laws and regulations in all the countries it operates in while also paying atten tion to regional governing bodies. Laws governing commerce, trade, growth, and investment are dependent on the local government as well as how successful local markets and economies will be due to regional, national and local influence. In accordance, Tatas headquarters in Mumbai, India, strictly controls and regulates operations in all dealerships and subsidiaries, in addition to knowing and abiding by all labor laws in the multiple countries where they have manufacturing plants it has to watch politicalchange. Economic: Operating in numerous countries across the world, Tata Motors functions with a global economic perspective while focusing on each individual market. Because Tata Motors is in a rapid growth period, expanding or forming a joint venture in over five countries world-wide since 2004, a global approach enables Tata Motors to adapt and learn from the many different regions within the whole automotive industry. They have experience and resources from five continents across the globe, thus when any variable changes in the market they can gather information and resources from all over the world to address any issues. For instance, if the price of the aluminium required to make engine blocks goes up in Kenya, Tata has the option to get the alumin ium from other suppliers in Europe or Asia who they would normally get from for production in Ukraine or Russia. Tata Motors also has to pay close attention to shifts in currency rates throughout the world. Currency fluctuations can equate to higher or lower demands for Tata vehicles which in turn affect profitability. It can also mean a rise in costs or a drop in returns. But they also have to pay attention to not just the domestic currency, the rupee, but also to the dollar, euro, bhat, won, and pound, o just name a few. t Just because the rupee is strong against the dollar does not mean it is strong against all the other currencies. Attention to currency is important because it influences where capital investment will develop and prosper. Social : Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will affect how well a company performs. This includes every stakeholder from the CEO and President, down to the line workers who screw the door panel into place, from the investor to the customer, the culture and attitude of all these people will ultimately determine the future of a company and whether they will be profitable or not. For this reason, Tata Motors tends to use an integration and rarely separation technique with foreign companies they acquire. In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company, which was at the time Koreas second largest truck maker. Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approa and continued ch, building and marketing Daewoos current models as well as introducing a few new models globally just as it had been done under Korean management. Technology: Tata Motors and its parent company, the Tata Group, are ahead of the game in t e technology h field.The foundation of the companys growth is a deep understanding of economic stimuli and

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customer needs, and the ability to translate them into customer -desired offerings through leading edge R&D (Tata). Employing 1,400 scientists and engineers, Tata Motors Research and Development team is ahead of the pack in Indias market and right with the rest of the field internationally. Among Tatas firsts are 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, as well as the increasingly famous Tata Nano, which is projected to be the worlds cheapest production car (Tata). In the automotive industry, it is becoming increasin crucial for manufacturers to stay on top gly of the technology curve with new problems always rising such as escalating gas prices and pollution problems. Tata recognizes this and dedicates lots of resources and time into research and development to be even with or preferably ahead of other competitors, global trends, and changing economies. In all, an automobile manufacturer must change, adapt, and evolve to stay competitive in the automotive game, and this is exactly what Tata is doing with their rapid growth, and extensive research and development. Environmental: Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. Tata Motors has been making conscious effort in the implementation of several environmentally sensitive technologies in manufacturing processes. The Company uses some of the worl 's most advanced d equipment for emission check and control. Tata Motors concern is manifested by a dual approach 1) Reduction of environmental pollution and regular pollution control drives 2) Restoration of ecological balance. Tata Motors is committed to restoring and preserving environmental balance, by reducing waste and pollutants, conserving resources and recycling materials. Reducing Pollution: Tata Motors has been at the forefront of the Indian automobile industry's anti pollution efforts by introducing cleaner engines. It is the first Indian Company to introduce vehicles with Euro norms well ahead of the mandated dates. Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a pioneering effort to introduce emission cont ol technology for India. Over the years, Tata r Motors has also made investments in setting up of an advanced emission -testing laboratory. With the intention of protecting the environment, Tata Motors has upgraded the performance of its entire range of four and six cylinder engines to meet international emission standards. This has been accomplished with the help of world-renowned engine consultants like Ricardo and AVL. These engines are used in Tata Motors vehicles in the Indian market, as well as in over 70 export markets. Tata Motors is constantly working towards developing alternative fuel engine technologies. It has manufactured CNG version of buses and followed it up with a CNG version of its passenger car, the Indica.

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Restoring Ecological Balance: Tata Motors has set up effluent treatment facilities in its plants, to avoid release of polluted water into the ecosystem. In Pune, the treated water is conserved in lakes attracting various species of birds from around the world thus turning the space into a green belt. Tree plantation programmes involving villagers and Tata Motors employees, have turned acres of barren village green. Tata Motors has planted as many as 80,000 trees in the works and the township and more than 2.4 million trees have been planted in Jamshedpur region. Over half a million trees have been planted in the Poona region. Tata Motors has directed all its suppliers to package their products in alternate material instead of wood. End of Life Vehicle Treatment and Recycling: India is a recycling society with many people making value out the recovery of waste materials discarded from products at the end of their useful life. However, Europe, and some other export markets, have recognised that they have become a 'throwaway' society in recent decades, and are now introducing waste prevention regimes in different industry sectors to collect and recycle valuable resource rather than it ending up in landfill. In the Automotive sector, the European End of Life Vehicle (ELV) Directive, points responsibility for this issue to vehicle manufacturers, and the scrap car recovery industry. Similar regulations are being introduced in Japan and Korea. Naturally, Tata Motors has already met the 'producer responsibility' aspects of the ELV Directive,such as compliance to Heavy metals and other hazardous substance restrictions. Also, material code marking of plastic parts has been introduced to aid achievement of demanding European recycling targets. Legal: The constitution of India and the laws enacted there under, enshrine Human Rights as fundamental rights. These are duly reflected with adequate provision for their protection in the various labour laws in the country. The Tata Code of Conduct sets out guidelines on compliance with all regulatory requirements and also on specific issues, which in sum is the articulation of Tata Motors policy on Human Rights. The Tata Code of Conduct also clearly states that wherever, the laws are more lenient than the Code, the Code shall prevail. Locational Ethics counsellors have been appointed to deal with any concerns raised pertaining to clauses mentioned in the Tata Code of Conduct. A monitoring system is in place to ensure compliance with the Code. Corrective actions are taken at process and/or system levels as appropriate. Tata Motors Limited has Supplier and Dealer assessment process to take care of issues related to social aspects before inducting them in organisation. All legal and regulatory requirements need to be fulfilled before final selection into the Tata Motors fold. The company periodically audits the job contractors for adherence to labour laws and other statutory requirement like minimum wages, PF, payment of gratuity etc. thereby ensuring prevention of violation of Human rights and employment malpractice. Tata Motors has a special contracts cell and price panel, which conducts regular compliance audits of contractors and suppliers to ensure their adherence to legal enactment, thereby ensuring prevention of violation of Human rights and employment mal ractice. In keeping with the spirit p of the Constitution of India wherein Right of Association is a Fundamental Right, Tata Motors respects the right for association of its employees and has constructive relationship with trade unions at all locations. Employees are encouraged to join the Trade Unions, as it believes that most individual and collective grievances can be resolved through bipartite forums. This has led to good industrial relations. With its collaborative approach to company union, Tata Motors has not faced legal action regarding anti-union practices.

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Approximately 15000 of Tata Motors permanent employees, who come under the unionised category, are covered by collective bargaining agreements. These agreements include health and safety provisions along with compensation structures in the form of a Memorandum of Understanding (MoU) between the management and the representing Union as per the provisions of the applicable labour legislations. These MoUs are signed every three years after negotiatio between representing ns committees of the union and the Management. While the union membership may vary from each location, all eligible employees, irrespective of his membership, enjoy the benefits as agreed in the MoU. While the existing grievance handli g process takes n care of issues of temporary employees, the recognised Unions also take up their issues. Tata Motors strictly adheres to the laws of the land with regard to forced and compulsory labour. The statutory regulations like Contract Labour Act, the Factories Act and the tripartite/ bi-partite settlement between the management and the union every three years serve as a legal binding force. The disciplinary action process at Tata Motors is as per the applicable laws like Model Standing Orders / Certified Standing Orders that allow the process of natural justice as per statute. Tata Motors upholds the Tata tradition of not employing children in any of its Companies. It is bound by the statutory legislation (Factories Act, 1948) and proper records are maintained in this regard. The Certified Standing Orders of the Company expressly state that the age of an employee at the time of recruitment should be 18 years or more. TCOC clause on equal opportunities is the basis to prevent all forms of discrimination. In addition, Tata Motors has formalised policy statements on Human Rights, Sexual Harassment, Equal Opportunities, and Corporate Social Responsibility.

Value Chain Analysis

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Value Chain & Value System

The value chain of Tata Motors includes the followings Inbound Logistics  Long term contract with service providers transporters and agents.  Personnel at regional offices for over seeing the smooth transit of goods.  Transparency and monitoring through deployment of IT all transactions through SAP.  DTL supplies for critical high value items. Operations  Capital Equipment Manufacturing division tooling development capabilities of global standard.  Apprentice Trainee Course ensuring stable source of skilled manpower.  Kaizen & TPM team continuous drive to improve efficiencies.  Automated manufacturing processes.  Distributed manufacturing Assembly units at South Africa, Thailand, Bangladesh, Brazil etc.  Maintenance technical competence.  Capacity Utilization Mercedes Benz cars make use of Tata Motors paint shop facilities.
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Outbound Logistics  Stockyards, all across the country.  Long term contracts with transporters higher volume of business to transporters ensures competitive price.  Regional Sales Office and Vehicle Dispatch Section linked through SAP.  Efficient security system for prevention of any kind of pilferage. Marketing & Sales  Structured approach to understanding the requirements of individual customers QFDs conducted at regular intervals.  Clear identification of product requirements, leading to develo pment of innovative products Tata 207 DI, Tata Ace  Pan India presence and global footprint.  Independent teams for addressing the requirements of institutional customers Defense, State Transport Units  Helping to augment the scarce resources Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiats technology and unutilized capacity.  Quick assessment of the changing market dynamics and consumer preferences Tata 407 LCV  Large network of dealers use of technology : DMS. Service  Easy availability of spare parts.  Efficient collection of data from field and communication to the respective plants.  Pan India presence, as well as global presence.  Large network of workshops Dealer workshops and TASS.  Training facilities for dealer end and TASS personnel. Procurement  E procurement initiative.  Global Sourcing Team China , a key destination for sourcing essential items like tires, power steering units etc., Steel procured from Belarus  Long term relationships with a stable and loyal pool of suppliers.  Technology driven procurement SAP and VCM.  Strategic subsidiaries & JVs TACO group of companies , Tata Cummins
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 Centralized Strategic Sourcing for key components FIPs, Steel etc.  Group resources Tata Steel and Tata International .  Localized supplier base at mfg. locations low inventory levels. Technology Development  Approximately 2% of the annual profits of the company invested in research and development.  Knowledge portal helps employees keep abreast with the latest technologies.  Extensive prototype building and testing facilities.  Strategic partnerships MDI (France), Fiat etc.  Formal benchmarking process.  Technology Day organized across all plant locations. Human Resource  Vast pool of technically competent engineers and managers.  Focus on development of technical capabilities Technical Training Centers, Alliance with technical Institutes

 Focus on development of managerial capabilities MTCs , TMTC, executive training programs at premier business schools  Career advancement schemes ESS, FTSS Firm Infrastructure  Multi Location facilities  Strong leadership under the aegis of Tata Sons  Best in class prototype building facilities  Technology SAP  Large product portfolio

Core Competency:
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Tata Motors is able to maintain, as well as increase, their market shareby capitalizing on their core competencies. Tata Motors is active, competitive, and dynamic in all aspects of the automotive industry, which means that there must be many different activities going on inall areas of the company. As a result of the ever evolving automotive industry Tata Motors must always be changing and one way to stay at the forefront of the industry is to make continuous improvements i technology through research and n development. One way that TataMotors has done this is by producing one of the most efficient and low cost vehicles on the market. Acquisitions, mergers, and expansion isanother core competency that Tata Motors has is embedded in their company structure and philosophy. Another core competency that TataMotors holds is being located in the India. This location has allowed them to understand not only the Indian market but also the dynamics of emerging and developing markets.This market understanding and knowledge allows Tata Motors to manufacture their products at lower costs, sell them to emerging markets while making profits as well as take advantage of the strong labor base in India.

Sharing of Skills/Core Competence

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The Rule of Three method from Jagdish Sheth and Rajendra Sisodia holds that 3 big companies will evolve/adapt to dominate any industry. Other companies will be niche players, or fall in the ditch (i.e. a market position between generalist and specialist that offers no long-term viability). The theory explains how in every industry 3 major players emerge to dominate the market. With the balance filled by specialist niche players. And how this determines business strategy. The vast majority of industries follow a particular pattern and ultimately fall under the influence of 'the Rule of Three.' Evidence suggests that 3 volume-driven competitors eventually emerge to capture between seventy to ninety percent of a given market. The theory talks of existence of either generalists, or specialists that thrive to succeed in this competitive environment. Any loose strategy will let the company fall in the ditch.

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. 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 larg truck manufacturer, and the world's second largest est bus manufacturer. The Company recorded a sale of 633,862 vehicles in 2009 -10, a growth of 34% over previous year (472,885 vehicles) in the domestic market in India, representing a 25.5% share in the in dustry (improving from 24.4% share in the previous year). Commercial Vehicle Market In India: Commercial vehicle sales were highest ever at 373,842 vehicles achieving a robust growth of 40.9% over previous year and a market share of 64.2% (a gain of 0.4% over previous year.) ,

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If we consider the commercial vehicle market in India then we will see that the market share of Tata Motors is 64.2% for the year 2009-10. Considering this we see that the Rule Of Three clearly applies to the commercial vehiclemarket in India. As shown in the above pie-chart we see that for the commercial vehicle market the three companies which rule the commercial vehicle market or which can be consider as the major players in the commercial vehicle market are Tata Motors, Ashok Leyland and Mahindra & Mahindra while the others are just the generalist companies. As shown in the above pie chart we see that Tata Motors have a market share of 64.2%, Ashok Leyland \having a market share of 16.47%, Mahindra & Mahindra having a mar share of 10.01% whereas the ket other companies have a market share of 9.32% These three players dominates the commercial vehicle market in India while others are just the niche players.

Passenger Vehicle Market In India: Passenger vehicle sales were 260,020 vehicles, highest ever, achieving a growth of 25.3% over previous year and a market share of 13.7% (stable compared to 13.6% in the previous year). The Company continues to be amongst the top three players in the passenger vehicle market which has ov 25 players. er Some of the key highlights were: - In the Small Car segment, increase in market share to 13.3% (as against 12.7%, in the previous year), with the growing sales of Indica Vista, sales of the Nano and the Fiat Punto; - Commencement of sales of Nano in July 2009 and completing deliveries of 30,763 cars to the customers and commencement of trial production in the Sanand plant. - The Indigo range sales of 54,551 units, a growth of 10.9% over the previous year and also the highest ever sales by the Company in this range, mainly due to the launch of the Indigo Manza in October 2009.
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- Sale of 33,507 Multi-Utility Vehicles (MUVs), a decline of 14.7% against the last year and as a result the market share dropped to 12.4%. The Grande Mk II which was launched in December 2009 has been well accepted in the market and is expected to help in regaining market share in the UV segment. -Sale of 24,884 Fiat cars which has given Fiat a 1.3% market share as against 0.5% in the previous year with Linea sales at 11,102 nos. (a segment share of 10.1%) and the Grande Punto sales at 13,281 (a segment share of 3.5%). - The Company sold 225 Jaguar and Land Rover vehicles through its exclusive dealerships in India in the first year of the sales of the Jaguar Land Rover brands.

If we consider the Passenger Vehicle market in India then we will see that the market share of Tata Motors is 13.7%. Considering this we see that the Rule Of Three clearly applies to the passenger vehicle market in India. As shown in the above pie-chart we see that for the passenger vehicle market the three companies which rule the passenger vehicle market or which can be consider as the major players in the passenger vehicle market are Maruti Suzuki India, Hyundai Motor India and Tata Motors while the others are just the generalist companies. As shown in the above pie chart we see that Maruti Suzuki India have a market share of 46.07%, Hyundai Motor India have a market share of 14.85% and Tata Motors have a market share of 13.7% whereas th e other companies have a market share of 25.23%. These three players dominates the passenger vehicle market in India while others are just the niche players.

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The Ansoffs product market growth matrix (proposed by Igor Ansoff) is a useful tool that helps businesses decide their product and market growth strategy. With the use of this matrix a business can get a fair idea about how its growth depends upon it mark in new or existing products in both new and existing ets markets. Companies should always be looking to the future. One useful device for identifying growth opportunities for the future is the product/market expansion grid. The product/market growth matrixis a portfolio-planning tool for identifying company growth opportunities.

Market Penetration: Market penetration refers to a growth strategy where the business focuses on selling existing products into existing markets. It is achieved by making more saes to present l customers without changing products in any major way. Penetration might require greater spending on advertising or personal selling. Overcoming competition in a mature market requires an aggressive promotional campaign, supported by a pricin strategy designed to make the market g unattractive for competitors. Penetration is also done by effort on increasing usage by existing customers. For market penetration TML should do the following

Attract Competitors Market : Highlight Value for money. Good and widespread service Convert non user to user : Special Schemes for youth and middle class people like zero down payment, lower interest rate or lower EMI. network

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Market Development: Market development refers to a growth strategy where the business seeks to sell its existing products into new markets. It is a strategy for company growth by identifying and developing new markets for current company products. This strategy may be achiev through new geographical markets, ed new product dimensions or packaging, new distribution channels or different pricing policies to attract different customers or create new market segments. For market development TML should look for oppurtunies in fast growing markets like China,Brazil,Russia etc.

Product Development: Product development is refers to a growth strategy where business aims to introduce new products into existing markets. It is a strategy for company growth by offering modified or new products to current markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. For product TML should concentrate more on improving the quality of the vehi le. c

Quality Improvement : Improve power and pick up Better and Comfortable interiors LPG and CNG versions Hybrid and Electric versions

Feature Addition : Smart Security System GPS Parking System .

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Diversification: Diversification refers to a growth strategy where a business markets new products in new markets. It is a strategy by starting up or acquiring businesses outside the companys current products and markets. This strategy is risky because it does not rely on either the companys successful product or its position in established markets. Typically the business is moving into markets in which it has little or no experience.TML should diversify with following product : Car Insurance Car Finance Consultancy services on R&D

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To gain a deep understanding of a companys industry and competitive environment, managers do not need to gather all the information they can find and waste a lot of time digesting it. Rather, the task is much more focused. Thinking strategically about a companys competitive environment entails using some well defined concepts and analytical tools. The character, mix, and subtleties of competitive forces are never the same from one industry to another. A powerful and widely used tool for systematically di gnosing the principal competitive pressures in a a market and assessing the strength and importance of each is the five-forces model of competition.(see figure) This model holds that the state of competition in an industry is a composite of competitive pres sures operating in five areas of the overall market: Competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. Competitive pressures associated with the threat of new entrants into the market. Competitive pressures coming from the attempts of companies in other industries to win buyers over to their own substitute products. Competitive pressures stemming from supplier bargaining power and supplier-seller collaboration. Competitive pressures stemming from buyer bargaining power and seller-buyer Collaboration. Threat of new entrants: New entrants are always a powerful source of competition. The new capacity and product range they bring in throw up new competitive pressure. And the bigger the new entrant, the more severe the competitive effect. New entrants also place a limit on prices and affect the profitability of existing players. Bargaining power of customers: This is another force that influences the competitive condition of the industry. This force will become heavier depending on the possibilities of thebuyers forming groups or cartels. Mostly, this is a phenomenon seen in industrial products. Quite often, users of industrial products come together formally or informally and exert pressure on the producer in matters such as price, quality and delivery. Bargaining power of suppliers: Quite often suppliers, too, exercise considerable bargaining power over companies. The more specialised the offering from the supplier, greater is his clout. And, if the suppliers are also limited in number they stand a still better chance to exhibit their bargaining power. The bargaining
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power of suppliers determines the cost of raw materials and other inputs of the industry and, therefore, industry attractiveness and profitability. Rivalry among current players: The rivalry among existing players is an idea that can be easily understood. This is what is normally understood as competition. And it is obvious that for any player, the competitors influence prices as well as the costs of competing in the industry, in production facilities product development, advertising, sales force, etc. Threats from substitutes: Substitute products are a latent source of competition in an industry. In many cases they become a major constituent of competition. Substitute products offering a price advantage and/or performance improvement to the consumer can drastically alter the competitive character of an industry. And they can bring it about all of a sudden

Porters five forces For TATA Moters Ltd.

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BCG GrowthShare Matrix

The BCG growth-share matrix is the simplest way to portray a corporations portfolio of investments. Growth share matrix also known for its cow and dog metaphors is popularly used forresource allocation in a diversified company. Using the BCG approach, a company classifies its different businesses on a two dimensional growth-share matrix. In the matrix: The vertical axis represents market growth rate and provides a measure of market attractiveness. The horizontal axis represents relative market share and serves as a measure of company strength in the market.

Using the matrix, organisations can identify four different types of products or SBU as follows:

Stars are products or SBUs that are growing rapidly. They also need heavy investment to maintain their position and finance their rapid growth potential. They represent best opportunities for expansion. The star performers for TML are Indica vista and Indigo manza in passenger segment while in commercial segment its Tata Ace. Cash Cows are low-growth, high market share businesses or products. They generate cash and have low costs. They are established, successful, and need less investment to maintain their market share. In long run when the growth rate slows down, stars become cash cows.Tata trucks an other heavy d commercial vehicles come in cash cows.

Question Marks, sometimes called problem children or wildcats, are low market share business in high-growth markets. They require a lot of cash to hold their share. They need heavy investments with low potential to generate cash. Question marks if left unattended are capable of becoming cash traps. Since growth rate is high, increasing it should be relatively easier. It is for business organisations to turn them stars and then to cash cows when the growt rate reduces.Tata Safari h Dicor and Nano come under question mark. Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves, but do not have much future. Sometimes they may need cash to survive. Dogs
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should be minimised by means of divestment or liquidation.Tata Siera and MUV Indigo marina come under dogs.Tata has discontinued both of them.

Once the organisations have classified its products or SBUs, it must determine what role each will play in the future. The four strategies that can be pursued are: 1. Build: Here the objective is to increase market share, even by forgoing short term earnings in favour of building a strong future with large market share. 2. Hold: Here the objective is to preserve market share. 3. Harvest: Here the objective is to increase short-term cash flow regardless of long-term effect. 4. Divest: Here the objective is to sell or liquidate the business because resources can be better used elsewhere.The growth-share matrix has done much to help strategic planning study; however, there are problems and limitations with the method.

BCG matrix can be difficult, time-consuming, and costly to implement. Management may find it difficult to define SBUs and measure market share and growth. It also focuses on classifying current businesses but provide little advice for future planning. They can lead the company to placing too much emphasis on market-share growth or growth through entry into attractive new markets. This can cause unwise expansion into hot, new, risky ventures or giving up on established units too quickly.

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SWOT Analysis:

y y y y y y y

The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America. Excellent brand equity and image in Indian market. Sound global recognition in light trucks and buses. Sound fundamentals in turbo diesel because of their joint venture with Cummins Good Presence in Indian Markets Ownership of heritage of British motor brands like land Rover and Jaguar. Strategic tie up with Benz .They follow premium segment marketing World class quality accreditation(ISO 9001; ISO 20000)

y y

y y y y y y

The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has notgot a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths). Never done well in UK; USA and European Markets. Not yet prepared fundamentally to handle global markets of Land Rover and Jaguar. Weak technical competencies. Perceived as Indianized. Do not possess localization skills outside Indian Markets. Focus in more on cost thus car lacks advanced features.

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y y

y y

In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly offthe company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. Introduce Asian variants of jaguar and Land Rover by promoting Power Icon Brand whi h will c work well with Asian politicians. Develop more joint ventures like Tata Mercedes Benz.

y y

Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low -cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this problem could be alleviated. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production.

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Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. Many companies across the world are busy developing their own models of Economy cars they may launch in competition with Tata motors Must catch in terms of Quality and lean production. Since company has focussed upon commercial and small vehicle segment it has left open to competition from overseas. Rising prices in global economy. Price of steel and aluminium is increasing putting pressure on costs of production. Diesel fuel is becoming expensive globally.

y y y y y y

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Future Plans
Major Future Plans 1. Capitalize on Tata Nano - Fast Delivery. 2. Launch New Commercial Vehicles. 3. Tie up with more State Govts. for Efficient & Safe City Buses at low cost. 4. Launch of Jaguar & Land rover Vehicles in India. 5. Bridge the outstanding loans. 6. Focus on Cost Reduction. 7. Expand Network. Future Challenges: Tata Motors relies heavily on its sales in India. Tata Motors now faces stiff competition from fellow compatriots like Mahindra, Maruti as well as multinational brands like Toyota and Chevrolet. It has faced controversy over developing the Nano Ashok Leyland, Tata's biggest competitor in the Indian heavy commercial vehicle market.

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Suggestion And Conclusion

Suggestion: Should increase no of service centers. Should bring more variants. Easy availability of spare parts. Should increase no of outlets. Should employ skilled labour.

Conclusion: In a small segment consumer seeks for: Good mileage. Low maintenance. Easy availability of spare parts. Easy finance Price.

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