Strategic Management

Mid-Review Report
On
Tata Motors
Submitted To
Prof. Shaleen Gopal

By

Group SMA13
Romil Jain (166136)
Rajnish Kumar (166130)
Charvi Yadav (166036)

On
08-03-2017

This venture has developed trucks such as Novus and World Truck and buses such as GloBus and Starbus. It has manufacturing and assembly plants in India as well as abroad. Operations: It currently operates in both India and abroad with plans to establish plants in Turkey. Tata Motors has third largest service network and sales after Maruti Suzuki and Hyundai and more than 250 dealerships in more than 195 cities across the country. Tata Daewoo: It is a wholly owned Tata subsidiary headquartered in South Korea. Tata Motors Cars: It’s a division which produces passenger cars under the marque of Tata Motors. coaches. The main reason behind this acquisition was to reduce its dependence on the Indian Commercial Vehicle Market. A joint venture with Fiat Chrysler the company makes automotive components and Fiat Chrysler and Tata Branded Vehicles. its plants are located at Jamshedpur. Thailand.COMPANY BACKGROUND Tata Motors. buses. South Africa and Argentina. The various products of Tata Motors include cars. Tata Hitachi construction Machinery is the joint venture with Hitachi Company. USA. formerly known as TELCO (Tata Engineering and Locomotive Company) is an Indian multinational automotive company. it was acquired by Tata Motors in 2004. construction equipment and even military vehicles. India and is a part of the coveted Tata Group. Both of them are its principal subsidiaries. Tata Motors acquired South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008. It produces vehicles in the compact. Jaguar Land Rover: A wholly owned subsidiary of Tata Motors since 2008 and was acquired from Ford Motor Company. manufactures and sells Jaguar Cars luxury and sports cars and Land Rover premium vehicles. utility and midsize car vehicle segments. It also has dealerships abroad in 26 countries. sports cars. Within the country. Indonesia and Eastern Europe. . Standing at the number two position in the commercial vehicle manufacturer. Darwad and Pune. By this acquisition the company expanded its portfolio in the heavy tonnage sector. It also has its plants in countries like Great Britain. Pantnagar. Lucknow. vans. It also has a bus manufacturing joint venture with Marcopolo SA known as Tata Marcopolo. Sanand. It develops. It is headquartered in Mumbai. trucks.

91% owned subsidiary of Tata and provides design. It was formed through a merger of HV Transmission and HV Axles and has plants located in Jamshedpur and Lucknow. but the area of concern for the automobile industry is medium and heavy commercial vehicles (M&HCVs) which account the 41 percent of the industry’s commercial vehicle sales and the sales of this segment has seen declined of nearly 20 percent over the same period. Tata Motors. Isuzu are two of the examples which had followed the same strategy to come down Tata motors from 58 percent to 43 percent. Tata motors CVs analysis The commercial vehicle industry has gone through various ups and downs in past few years and manufacturers have upped their bids to stay ahead in this highly competitive market. Magic. This segments (M&HCVs) includes lager trucks and buses division. . Companies like Volvo and SML. including Ace. Commercial vehicle portfolio Tata motor includes all small commercial vehicle (SCV) of a sub-one ton. Ace zip. they have to strike the right balance between growth and profitability. and Magic Iris. Medium & heavy commercial vehicle (M&HCV) and also pickups of GVW. engineering and business process outsourcing services to the automotive industry. The current market trend of commercial vehicle The Light commercial vehicle (LCV) recorded a 19 percent growth in September 2016 over same period in September 2015. intermediate commercial vehicle. Tata Technologies: 86. being the market leader with 43 percent in the domestic CV market (50 percent of M&HCV and 3% of LCV as per data released by industry body SIAM for April –September 2016) it comes with its own disadvantages. Even domestic companies like Ashok Leyland and Mahindra and Mahindra are giving tough competition. including RX pickup and Xenon pickup. Light commercial vehicle (LCV).TML Drivelines: Another wholly owned subsidiary of Tata Motors engaged in manufacturing of gear boxes and axles for heavy and commercial vehicles. military vehicles. super Ace. Tata motors typically doesn’t need to display the desperation to gain the market share by providing various discounts and credits that smaller players usually do to gain market share. In order to maintain the leadership position in this market.

last year 53000 vehicles were exported by them. with flat beds. This ambitious target of doubling has proven the boon for the company and in late September 2016. Presently. Focus on quality products: Tata motors have placed a large bet on products like Prima and Ultra for M&HCVs. They have started their assembly units in Nigeria and Tunisia and about to start operations at a new assembly unit in Kenya. and producing reliable products according to the demand and need in the market. Other than technological improvement they have also invested in building the bus body with a joint venture in Goa and two other units in Lucknow and Dharwad. They have marked their presence in South-Pacific markets like Indonesia. Technological Innovation: Tata motors uses the latest technology of hybrid buses which have air brakes. Vietnam. Philippines and Malaysia. it will cover over 50 markets including ASEAN region and SAARC. Thailand. they have seen growth in the order of buses from 2800 buses order in 2015-16 to 5000 buses in present year worth of Rs 900 crore. Africa. and South American markets of Chile. Strategies followed by the Tata motors for commercial vehicle are: Internationalization: Being the domestic market leader they are continually trying to improve its offering in the domestic market and marking their footprints overseas as well.It is not easy to be a leader in any business and to be one Tata motors have innovated. hence allow a truck owner to use a two driver team and get a fast delivery and turnaround. Their major key offering which made point of differentiation are an air conditioned cabin. According to the agreement. Tata motors are eyeing on bigger markets of Brazil and Mexico. Venezuela. articulated buses which have the second car trailing the main one – first of a kind in India. showing presence in the global market. 2017. right up to Australia. Double their exports: In exports business. Middle East. Russia and Latin . Due to this advancement in technology and manufacturing buses. Tata motors and Castrol partnership: On January 5. other than this they have already started manufacturing in South Africa. provide better services. Tata motors and Castrol today have announced the three-year strategic partnership agreement for the supply of commercial vehicle oils to Tata motors globally. adapting the changing technology. they have acknowledged a growth of 29 percent in total exports. and Bolivia. they have set a target of doubling their figures by 2018.

they are not only aiming to be undisputed market leader in the commercial vehicle but gradually they are also emerging as the key players of internationally too.America. This will help Tata motors to provide with high-quality products and services to enhance their market share and profitability. Hence with the above strategies. .