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BCG Matrix Analysis of Tata Motors.

During the year 2015-16, the automobile industry produced a total


23,960,940 vehicles including passenger vehicles, commercial vehicles,
three wheelers, two wheelers and quadricycle in April-March 2016 as
against 23,358,047 in April-March 2015, registering a marginal growth of
2.58 percent over the same period last year.

The sales of Passenger Vehicles grew by 7.6 percent over last year. The
overall Commercial Vehicles segment registered a growth of 9.6 percent
as compared to the last year.

As a part of Tata group, if we want to analyze the position of Tata Motors in


the BCG Matrix, it would be a part of the group of Stars.
Star suggests that Tata Motors gives the best profits and growth
opportunities in the Tata group. It Generates high revenues and also
requires huge cash for sustaining the Star position. Hence, the Product is
in growth stage.

Within the Passenger Vehicles, Passenger Cars, Utility Vehicles and Vans
grew by 7.87 percent, 6.25 percent and 6.4 percent respectively over last
year.
The Company sold 106,827 units in the passenger car category in Fiscal
2016, representing a decrease of 3.8% compared to 111,094 units in
Fiscal 2015. The Company sold 21,007 Nano cars in Fiscal 2016, an
increase of 24.3% compared to 16,903 units in Fiscal 2015. In the utility
vehicles category, the Company sold 20,291 units in Fiscal 2016,
representing a decrease of 20.6% from 25,559 units in Fiscal 2015.

Medium & Heavy Commercial Vehicles (M&HCVs) registered a growth at


30.3 percent and Light Commercial Vehicles decreased marginally by 2.1
percent over last year.

Overall, sales of the Company's commercial vehicles in India increased by


2.8% to 326,755 units in Fiscal 2016 from 317,780 units in Fiscal 2015.
The Company's sales in the medium and heavy commercial vehicle
category increased by 24.3% to 157,120 units in Fiscal 2016, as compared
to sales of 126,369 units in Fiscal 2015.

Based on market growth rate and market share, here are the constituents
of the BCG Matrix of Tata Motors:
Stars:
Micro: Tata Nano.
Compact: Indica, Indigo.
Utility Vehicles: Sumo, Safari.
M&HCV: LP & Novus range Prima Trucks, Tippers & Tractors
Cash Cows:
Premium & Luxury: Land Rover, Jaguar.
LCVs: Ace, Magic, RX Pickup, Xenon.
Question Marks:
Vans: Venture, Winger.
Dogs:
Mid-Size: Manza.

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