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Background note on TELCO: Historical development TELCO (TATA Engineering and Locomotive Company) now known as TATA Motors

with ‘Inspired by people’ as its tag line is a common name across India. The company has at present its footprints across almost all the domains in public and private transportation. From TELCO to TATA Motors TELCO was a brainchild of J.R.D. Tata and established in 1945. The company entered in a commercial agreement (15 years) in 1954 with a TATA-Daimler-Benz joint venture. It started producing heavy trucks for commercial purposes and the first truck rolled out in 1960 from the Pune unit. The truck resembled the German Daimer truck. In 1986, going by the Indian market and infrastructure, the company shifted focus on producing Light Commercial Vehicle (LCV) mainly TATA 407. In coming years, TELCO sought to evolve and expand into the personal vehicle market. It collaborated with Cummins Engine Company in order to produce more efficient diesel engines. Tata Indica, a model (produced in 1998) was a runaway success both in India and on other European markets. Its second model Indica V2 too was a success. This was the first ever indigenously produced vehicle. This also made TELCO (TATA) brand name known to every household as a symbol of trust and nationality.

Other major historical events are given in chronological order below: 1991: Launched TATA Sierra (MUV), entered passenger segment. 1994: Launched TATA SUMO (LCV). 1998: Launched TATA Safari (SUV). India’s first in its segment. Also, Indica was launched that became a major success. 2004: Acquisition of Daewoo Motors. TATA Motors make International presence. Daewoo renamed to TATA-Daewoo.

Gestation of TATA Nano as a car for ever household started. Manufacturing plant of Nano hit a road block at Singur. Plan to enhance its styling and design capabilities. TATA Ace. 2010: Acquired an 80% stake in the Italy-based design and engineering company Trilix for a consideration of €1. 2012: Announced its willingness to invest 6 billion Rs on developing Futuristic Infantry Combat Vehicles in collaboration with DRDO. to manufacture fully built buses and coaches.com/company/profile. Post Nano experience._will_go_on_sale_in_April . 2008: Acquisition of Jaguar and Land Rover (for a net 2 billion $). Tata Marcopolo Bus.85 million.2005: Acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano Carrocera.tata. West Bengal when farmers protested against the plant’s construction on their lands.com/tata-motors/history/ http://en. References: http://www. 2006: Tata formed a joint venture with the Brazil-based Marcopolo. The company never shies away from innovation. in an effort to fight rising costs for metal production. Receives an underwhelming response mainly due to ‘poor man’s car’ tag attached to it. Tata has now expressed their wish to come up with a car made 100% out of plastic. Tata Nano first model delivered.wikinews.autoevolution. But first model was rolled out in 2012.aspx?sectid=a4Nd8IHyrqI= http://www. From the past Tata Motors' strength has been its financial power that it draws from the fact that its labor costs amount to only 9% of the profit. low cost truck launched and became an instant hit. 2009: Tata Nano launched.org/wiki/World%27s_cheapest_car_launched_in_India.

This could impact its underpinning competitive advantage. Community: To proactively participate in reshaping the country’s economic growth. Vendor and Channel Partners: To foster a long-term relationship so as to introduce a broad range of innovative products and services. Employees: To create a seamless organization that incubates and promotes innovation. excellence and the Tata core values. Since the company has focused upon the commercial and small vehicle segments. Our Mission Shareholders: To consistently create shareholder value by generating returns in excess of Weighted Average Cost of Capital (WACC) during the upturn and at least equal to Weighted Average Cost of Capital (WACC) during the downturn of the business cycle.Our Vision To be a world class corporate constantly furthering the interest of all its stakeholders. as Tata globalises and buys into other brands this problem could be alleviated. Honda and Toyota. Sustainability and environmentalism could mean extra costs for this low-cost producer. In fact the entire Indian market has become a target for other global competitors including   . For example ICICI bank and DaimlerChrysler have invested in a new Punebased plant which will build 5000 new Mercedes-Benz per annum. To take a holistic approach towards environmental protection Threats  Other competing car manufacturers have been in the passenger car business for 40. 50 or more years. Other players developing luxury cars targeted at the Indian market include Ford. Obviously. that would benefit our customers and other stakeholders. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. it has left itself open to competition from overseas companies for the emerging Indian luxury segments. Customers: To strengthen the Tata brand and create lasting relationships with the customers by working closely with business partners to provide superior value for money over the life cycle.

 Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. Ford and others. in recent years. The price of steel and aluminium is increasing putting pressure on the costs of production. In addition. Competition is expected to intensify further as Indian automotive manufacturers obtain greater access to debt and equity financing in the international capital markets or gain access to more advanced technology through alliances. These regulations are likely to become more stringent in the near future. with small cars bringing in 70% of sales. Jaguar Land Rover has significant operations in the US and Europe which have stringent regulations relating to vehicular emissions. Additionally. noise. safety and levels of pollutants generated by its production facilities.Maruti Udyog. the government of India has permitted automatic approvals for foreign equity ownership of up to 100% in entities manufacturing vehicles and components in India. a) 6 new models to be introduced in the year 2013 – mix of brand new models and refreshers – intended as a step to maximize presence in the volume segment of Indian passenger car industry.. b) Planning a dense dealership network and devising marketing strategy aimed at targeting rural population c) The much awaited Tata MiniCat Air Car – the eco-friendly car that runs on air . The proposed tightening of vehicle emissions regulations will require significant costs for the company... General Motors.  Future Outlook of Tata Motors Challenges ahead. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market The company is subjected to extensive governmental regulations regarding vehicle emission levels. 1) Stiff competition from global brands like Benz and BMW 2) Maruti – the aggressive market leader What the organization already has up its sleeves..

. Would the brand sensitive British consumer ever buy into such a brand? Maybe not.  Safety standards are not maintained often ignored. but they would buy into Fiat.( eg: tata nano)  The company's passenger car products are based upon 3rd and 4th generation platforms. This is a lucrative market to be taken head on. c) Ensure high safety standards.3 million.  Despite buying the Jaguar and Land Rover brands (see opportunities below). They need to work on the design front of Tata passenger cars. Jaguar and Land Rover Opportunities  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. Tata Motors has already taken baby steps into this segment with Safari Storme. this has led to tarnished image of tata automobiles. 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. d) Intensify service centres network TATA motors Weaknesses:  Returns on investment in TATA motors share is low. a) Foray the SUV segment.  . Two of the World's luxury car brand have been added to its portfolio of brands.What we suggest. and will undoubtedly off the company the chance to market vehicles in the luxury segments. Tata has not got a foothold in the luxury car segment in its domestic. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. b) Cars are increasingly becoming as much a fashion statement as a necessity. The NANO fall-out on safety grounds still needs to be recovered. Indian market. which put Tata Motors Limited at a disadvantage with competing car manufacturers..

Again.  . The range of Super Milo fuel efficient buses are powered by super-efficient. 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. eco-friendly engines. 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. Nano is the cheapest car in the World . 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. at a time when the World is looking for environmentally friendly transport alternatives. These are the opportunities. is the Nano the answer in terms of concept or brand? Incidentally. Whilst the World is getting ready for greener alternatives to gas-guzzlers.retailing at little more than a motorbike. South Korea and China will have a thirst for low-cost passenger and commercial vehicles. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.