“Project report on Strategies used by TATA motors for it’s Domestic and Global Expansion” Group 1

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Abhishek Mathur (01) Abhinav Gupta (02) Aditi Mehrotra (03) Agni Chatterjee (04) Akash Chauhan (05)

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Executive Summary
TATA Motors previously known as TELCO was started way back in 1945 primarily as a manufacturer of Heavy and Medium Commercial Vehicles. It entered the passenger car segment in 1998 with the production of first indigenous car of India INDICA. The company has been expanding rapidly both geographically as well as in the terms of offering new products to the customers. The company started as a traditional auto maker has now resorted to adoption of blue ocean strategy with the production of TATA Nano. One can also see that the company in the past 5 years has diversified its kitty to a large extent. The automotive giant is seen manufacturing the people’s car NANO and Jaguar Land Rover. It has also formed a JV with the Brazilian Bus Manufacturing Giant MARCOPOLO. Although the company had posted profits in the past 5 years, the year 2008-09 was not one which TATAS would like to remember. The J-LR deal had been a setback for the company. But with the support of TATA Sons the parent company it will be sail through this also and emerge as a winner. However, the bottom line is that TATA Motors is an Indian Company which has managed to create a niche in the global market for itself.

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Index
S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12. 13. TOPIC Indian Automobile Industry TATA Motors Limited SWOT Analysis Expansion in the Domestic Market Expansion Abroad Reasons to Move Ahead Four Grandiose Strategy-International Expansion Future Strategies for Global Expansion Resources Value Chain New Product Introduction Strategy Analysis Conclusion Page No 4 6 8 9 11 13 15 17 19 23 26 27 30

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Bajaj by far is the number one manufacturer of three wheelers in India.Indian Automobile Industry The seeds of the Indian automobile industry were laid during 1940s. Motorcycles tops the charts of two wheelers with Hero Honda being the key player. the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After independence. a number of Japanese manufacturers launched jointventures for building motorcycles and light commercial-vehicles. Korea. Tata Motors produces maximum numbers of mid and large size commercial vehicles. Europe and Japan have a significant hold on the Indian market share. It was at this time that the Indian government formed a collaboration with Suzuki under the name Maruti Suzuki to manufacture small cars. commercial vehicles. Following the economic liberalization in 1991 and the gradual weakening of the license raj. Maruti since long has been 4 . a number of Indian and multi-national car companies launched operations. the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. holding more that 60% of the market share. In the 1980s. Cars were still a major luxury. Automobile industry of India can be broadly classified under passenger vehicles. the automotive industry started to grow. but the growth was mainly driven by tractors. At present it holds a promising tenth position in the entire world with being number 2 in two wheelers and number 4 in commercial vehicles. in 1953. After 1970. with two wheelers having a maximum market share of more than 75%. Automobile companies of India. Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of the total market share. commercial vehicles and scooters. three wheelers and two wheelers. However.

Global recession has impacted.the biggest car manufacturer and holds more that 50% of the entire market. the Indian automobile industry also and can be seen clearly in the sales figures of the last financial year. Even then this industry has high hopes in 2009-2010. as banks have reduced loan interest rates and the major chuck of automobile customers belong to the middle income group who are becoming economically stronger with every passing day. 5 .

It was also exported to Europe namely the UK and Italy. Despite the success of its commercial vehicles. Designed to be inexpensive and simple to build and maintain. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. India's first fully indigenous passenger car. Since then it has never looked back.Company shifts to making trucks in a joint venture with Germany's Daimler Benz 1977 .Ends joint venture with Daimler 6 . In 2004 it acquired Tata Daewoo Commercial Vehicle and in late 2005 it acquired 21% Aragonese Hispano Carrocera giving it controlling rights of the company.Tata Engineering and Locomotive Co Ltd (TELCO) set up as a locomotive maker at the end of World War Two 1954 . he decided that building a small car would be the most practical new venture.Launches fully indigenous passenger car. It has formed a Joint Venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market.Tata Motors Limited – A brief History Tata Motors is a part of the Tata Group and its share-holding is managed through Tata Sons. Based on consumer demand.Commences production of commercial vehicles 1994 .Enters venture with Daimler to make Mercedes Benz cars in India 1998 . So in 1998 it launched Tata Indica. Recently TATA Motors limited has been in news because of acquiring Jaguar Land Rover and for manufacturing the cheapest car in the world TATA Nano. the Indica 2001 . the Indica became an instant hit in the Indian market. Tata realized his company had to diversify and he began to look at other products. Following are some key events from Tata Motors' history: 1945 .

Buys 21 percent stake in Spanish bus maker Hispano Carrocera SA. launches mini-truck Ace in India 2006 .Announces plan to build world's cheapest car. Launches Indigo sedan 2005 .2002 . enters venture with Brazilian bus maker Marcopolo 2008 .3 billion 7 . and lists on the New York Stock Exchange.TELCO renamed Tata Motors Ltd 2003 .000 rupees 2004 .Buys Jaguar and Land Rover from Ford Motor Co for $2.Acquires South Korea's Daewoo Commercial Vehicle Co.Unveils the Nano at Delhi Auto Expo .Signs manufacturing and distribution agreement with Fiat. to sell for 100.

SWOT ANALYSIS Strengths • • • • Strong presence in the commercial vehicle market Brand recognition High investment in R&D Wide distribution channels Weaknesses • • Limited product portfolio in the passenger segment Operations mainly restricted to India Opportunities • • Increasing demand for cars in India Expansion in international markets Threats • • Increase in prices of raw materials Intense competition from global players Expansion in the Domestic Market 8 .

Indigo Mariana. The expansion in Indian Markets has also been on account of two major joint ventures: A. a multi utility vehicle. a light commercial vehicle). India's first sports utility vehicle). This joint venture is to manufacture and assemble fully-built buses and coaches targeted at 9 . Tata Sumo (LCV. Tata Estate (1992. Marcopolo Brazil Tata Motors has formed 51:49 joint venture with the bus body manufacturer.After years of dominating the commercial vehicle market in India. the first fully indigenous passenger car of India. 1994) and Tata Safari (1998. Xenon. Tata launched the Indica in 1998. Ace and many more. After the launch of three more vehicles. Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra. After this there was no looking back. Indica was followed by many other models both in LCV and MHCV namely Indigo. a station wagon design based on the earlier 'Tata Mobile' (1989). Marcopolo of Brazil.

Fiat India Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors. and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.developing mass rapid transportation systems. This acquisition has also helped in stream lining the production and sharing the load of the CAR Plant. B. 10 . Delhi etc. Tata Motors sells Fiat cars in India and is looking to extend its relationship with Fiat and Iveco to other segments. Tata and Marcopolo have launched a low-floor city buses in Mumbai. Fiat's first body-on frame pickup will have the same styling as TATA Xenon and is to be named Fiat Terra.

Thailand and Spain. South Africa. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler. In 2004. Tata Motors has expanded its production and assembly operations to several other countries including South Korea. a business comprising the two iconic British brands that was acquired in 2008. Hispano’s presence is being expanded in other markets. Lanchester and Rover. Tata Motors has operations in the UK. Tata also franchisee/joint venture assembly operations in Kenya. These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. the SAARC countries and the Middle-East by the end of 2009. In 2006. In 2005. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. Though Tata is present in many countries it has only managed to create a large consumer base worlwide. 11 . it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). South Korea. In May. On Tata's journey to make an international foot print. Indonesia and Eastern Europe. 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo They will debut in South Korea. Tata Motors acquired a 21% stake in Hispano Carrocera. South Korea’s second largest truck maker. giving it controlling rights of the company. Ukraine. it acquired the Daewoo Commercial Vehicles Company. Among them is Jaguar Land Rover. Thailand. a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. it formed a joint venture with the Brazil-based Marcopolo. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.Expansion Abroad Tata Motors has been aggressively acquiring foreign brands to increase its global presence. a reputed Spanish bus and coach manufacturer. Tata has dealerships in 26 countries across 4 continents. Bangladesh. Russia and Senegal. South Africa and Argentina and is planning to set up plants in Turkey. while also exporting these products to several international markets.

Asia 9% Africa 7% Australia 1% S. Asia 10% W. Asia 22% Latin America 7% Europe 44% Percentage wise distribution of business abroad World wide Presence 12 . E.S.

A third argument for overseas expansion is the fact that the automotive business relies so much on economies of scale. But domestic patronage. the automotive business. have been protected by high duty structures and a generally depreciating rupee. the exploration of foreign markets is an imperative for ambitious automobile companies such as Tata Motors. particularly the commercial vehicle market. attracted by a growing economy and an expanding market. when it needed technical assistance from Daimler Benz and had just commercial vehicles to power sales. Another reason that Tata Motors is looking outwards is cost advantage. Companies looking to do more than just stay afloat cannot afford to keep their business connected solely to the fortunes of one country. a presence in countries that offer greater cost advantages for manufacturing will pay off. Today the company is the country's largest automobile manufacturer and has a passenger vehicle business that has broken new ground in exemplary fashion. if import restrictions are relaxed or the rupee begins to gain ground. Which is why. Besides competition. hefty as it may be. The reverse — Indian auto companies seeking new frontiers abroad — is a trickle. manufacturers in particular. Tata Motors has come a long way since the 1950s and 1960s. But sometime in the near future. is characterised by its considerably strong link to national economies. India may not continue to have the low-cost manufacturing advantage it has enjoyed thus far. particularly with increasing competition.TATA Motors and its reason to move Abroad Recent years have seen a number of foreign automobile enterprises coming to India. is ultimately limiting. Until now Indian companies. but Tata Motors is working hard to change the equation. In that scenario. which translate into price 13 .

benefits. as part of its overall business strategy. Tagging along is the competitiveness factor. recognising the need to integrate its international strategy with its domestic one. One of the important strategies that TATA motors have adopted is to widen its foreign campaign to more than just exports. merged them with its commercial and passenger vehicle business units. the company split its previously independent international business arm into commercial and passenger segments and. In 2002. 14 . where quality and efficiency are directly improved (or should be) as a result of the high level of competition in foreign markets.

Tata Motors bought the full-fledged heavy vehicle-manufacturing unit and. in the process. The first is the traditional method of export. the route Tata Motors took with Daewoo South Korea. All these assembly operations are set up by the distributors of Tata Motors for these countries. This does not necessarily involve establishing a full-scale manufacturing unit. the Middle East and Asia. Here. Tata Motors worked this into its strategy when it set up its first assembly operation in Malaysia in 1974. gained not just a manufacturing asset base. The company has successfully launched Indica in South Africa and Turkey and is marketing it under its own brand name. access to R&D capability in the area of commercial vehicles. 15 . Bangladesh. The company was also presented a wide choice in terms of the markets in which it could use the Daewoo brand and. but access to the market through an already strong brand identity. South Africa and Ukraine. notching up export revenue of Rs 969 crore in the first nine months of FY 2004-05. Tata Motors has already achieved the No 2 position in the domestic car market in India.Four grandiose strategy adopted by TATA for International Expansion: As part of its plans. Senegal. In the short period of six years since the launch of passenger cars. the company has plotted four routes to international expansion. more importantly. Since then the company has similarly expanded into Malaysia. The third scenario would be actual acquisition. recording a growth of 41 per cent from sales in Europe. but an operation where kits are sent in semi knocked down or completely knocked down assemblies. Africa. The second is setting up assembly operations abroad. or as a fully assembled vehicles and sold in that market. at which the company has been quite successful.

but management believes that with its aggressive growth strategy a contribution of around 45 per cent may be achievable in five-six years. Tata Motors' immediate goal is to achieve a 35-per cent contribution to its overall revenue from its international businesses by 2010. for whom anywhere from 30 to 50 per cent of their business accrues from overseas sales. 16 . Tata Motors is still a long way off. and its own products getting into more than 70 countries. The trickle factor will by then begin to gather force. Looking at successful global auto majors. like it did in Europe.One of the greatest strengths of TATA motors is that it knows its market. the compact-sized Indica is marketed in countries where the company perceives a substantial market for it. This seems to be realistic enough following the Daewoo acquisition. For example.

product upgradation. The Business Units have classified different markets in terms of size. Therefore. to bring greater focus and increased synergy between the domestic and international operations. the company today focuses on 15 to 20 key countries. sales and distribution processes and penetration into new markets. Tata Motors. depending on the market and product needs. growth opportunities. a trendsetter in the Indian automobile industry. The company has now embarked on a road where it have made exports an integral part of their business. The wave of liberalisation has given Indian corporates a new dimension to ‘globalisation’. product segments and target volumes. The question that has been in the minds of the senior management at Tata Motors was — will they remain exporters of vehicles or do they venture into the international automobile market as a company that can match the best in the business? The answers were obvious. The first step was to align the international business to the two business units — the Passenger Car Business Unit (PCBU) and the Commercial Vehicle Business Unit (CVBU). TATA do not think of sales outside the country as a separate activity. International business needs to be looked at from a perspective that goes beyond volumes and presence in many countries. The three stages could run concurrently. from being present as an exporter in 70 countries. where it will have a significant presence in terms of volumes and market shares. 17 . is setting a new direction to the globalisation of the Indian auto industry. The implementation of the business strategy will be in three stages.Future Strategies for Global Expansion: TATA Motors have been instrumental in a new direction to the globalisation of the Indian auto industry. It is now integrated within the mission of each of its businesses.

Besides the assembly plants that Tata Motors has in Bangladesh and Malaysia. A joint venture project for bus body building in Ukraine and serious due diligence into the opportunities available in the Chinese market are other areas where Tata Motors is looking to create new opportunities.Tata Motors has taken a number of initiatives to strengthen both product reliability and durability and marketing processes." The company’s approach has been successful in Sri Lanka and Malaysia where the installation of a sales process system and face-to-face customer meets through road shows and service workshops has started yielding results. the company’s recent order for 500 buses from Senegal will involve providing technical and commercial assistance to the Senegalese government for setting up a bus body building plant. 18 . Enhancing distribution reach and a robust sales process system have been key elements in consolidating the company’s leadership position in the domestic market. the Rover agreement has been an important step in helping Tata Motors to gain very quick access to a fairly large market and a large distribution network. Tata Motors has been short-listed for South Africa’s "Taxi Project" in which the government will provide an entirely new transport system in that country. On the road to globalisation. such as China and the CIS countries. Dr. sales processes. distribution and above all. PCBU feels that it would take more than three years to show positive results that they expect from rover agreement.Sumantran. executive director. The second part of the business strategy is to make an entry in new and yet uncharted markets. people. Recently. a large contingent of dealers from South Africa was invited to visit the company’s facilities in Pune and experience the new face of the international business. The implementation of this strategy has begun in a few markets abroad and in Mr Kant’s words "What we needed was an integrated approach where we invest in all the critical elements — product upgradation.

These facilities employ more than 1400 engineers. Lucknow and Pune. Resources Technological Resources: • • • R & D establishments called ERC in Jamshedpur. TATA Motors has a certified crash test facility and hemi anechoic chamber for testing of noise and vibration. South Korea.Innovation. The JV with Spanish Hispano Carrocera has a R & D facility at Zaragoza Spain. commitment and pride have been Tata Motors’ greatest asset and it takes right mix of people with the right skills to make this happen. • TATA Daewoo. has its R & D facility in Gunsan. TMETC (TATA Motors European Technical Centre) set up in 2005primarily involved in design engineering and development of products. knowledge. It also acts as a support system for TATA Motors skill sets. • 19 . the JV between TATA Motors and Daewoo Group.

The first model is TATA Business Excellence Model which derives its roots from the Malcolm Baltridge Model.Operational Resource: Operational Resources have two main models. The model has been described below: 20 . This model applies across the various Business Units of the TATA Group The model has been given below: The second model which TATA Motors follows is the Enterprise Process Model.

TATA Code of Conduct (TCOC) Successful Integration of various JVs and strategic alliances Reputation of the Brand TATA worldwide 21 .Ratan TATA. the other operational resources employed by TATA Motors are: • • • • Sound leadership. the group and the various stakeholders. Sumant Moolgaonkar Ethical business Practices.Both the models work in congruence with each other to create synergy between the business unit. Besides the above two models.

Financial Resources: Before the fiscal year 2008-09. there has been a little setback in the financial side but still with the support of the parent brand TATA Sons it will be able to sail through the current financial crunch. However.Land Rover. 22 . with the slump and the acquiring of Jaguar. It also has a tie up with TATA Financial Services which has been supporting the ambitions of the company with easy cash flow. the financial flows to the company had been stable and it was showing a huge profit margin. Besides this it has easy access to capital markets due to the reputation of the Brand TATA.

Value Chain The value chain of the TATA Motors has been given as below: Value C The various primary activities of the value chain have been discussed below: 1.  Talented Personnel have been deployed at regional offices for over seeing the smooth transit of goods. Inbound Logistics: The main features of inbound logistics have been discussed below:  Tata Motors believes in establishing long term contract with service providers – transporters and agents. 23 .

 Efficient storage facilities – easy storage and retrieval 2. Kaizen & TPM team – the two teams strive for continuous methods to improve efficiencies.  Apprentice Trainee Course – This helps the organization in ensuring stable source of skilled manpower. 24   . Brazil etc. all across the country to stock inventory  Long term contracts with transporters– higher volume of business to transporters ensures competitive price. Operations: For the smooth functioning of operations TATA Motors has the following features:  Capital Equipment Manufacturing division – TATA Motors prides itself in having tooling development capabilities of global standard. Maintenance – technical competence. Distributed manufacturing – Assembly units at South Africa.      3.  DTL supplies for critical high value items. Efficient security system for prevention of any kind of pilferage. Automated manufacturing processes. Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop facilities. The company aims at maintaining transparency and monitoring through deployment of IT – all transactions through SAP. Regional Sales Office and Vehicle Dispatch Section linked through SAP. Thailand. Bangladesh. Outbound Logistics: the following methods form a part of outbound logistics:  Stockyards.

Large network of workshops – Dealer workshops and sales workshops    Training facilities – for dealer end and sales personnel 25 . leading to development of innovative products – Tata 207 DI. as well as global presence. Pan India presence. Independent teams for addressing the requirements of institutional customers – Defense.4. in return Tata has access to Fiat’s 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. Tata Ace   Pan India presence and global footprint. State Transport Units  Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships.  Clear identification of product requirements. 5. Marketing & sales: The important features of marketing and sales are:  Structured approach to understanding the requirements of individual customers – QFD’s conducted at regular intervals. Service: TATA Motors provides the following after sales services:  Easy availability of spare parts throughout the country  Efficient collection of data from field and communication to the respective plants.

Ph se a s Tata Motors Vehicle NPI Process – Conceptual Overview Con p ce t Eva a io lu t n Ph se a Con p ce t D ve m n e lop e t Ph se a • Perform ance & W eight analysis • Style &Spec’ dev’m &Freeze t. t targets • Prelim Biz case . • Vehicle & Aggregate plans • Product costing • Financial analys Pro u d ct D sig V lid t e n a a ion D sig a d e n n & d ve m n Pro u ion t e lop e t d ct isa ion Ph se a Ph se a • Design analysis &sim ulation • Alpha proto tests • Aggregate tests • Crash tests • Manf. Con cettad ce p n d Con p a n Proje ct ct Proje Ap p l l p rova Aprova DR2 Sign-offs • Product spec & Features list • Vehicle Test Plan • Style &packaging sign off • e &res. validation Prod u ion u ct Prodct ion Re lese le a Re a se DR4 Sign-offs • Critical issues brochure • Vehicle test requirem m ents et • Control plans signoff Proje ct ct Proje Re vie vie w Re w DR5 Sign-offs • Launch volum es • build QP com pletion • Vendor parts fully approved • p up plan Ram Ga e a t wy D liv ra le e e b s This methodology makes it easy for TATA Motors to reduce the time for new product to reach the market. case Full De n e n sig D sig Re lese le a Re a se DR3 Sign-offs • Design release • Long lead tooling signed off • ponent Com reliability plan • Case Biz. plan Tim • Biz. • Install &com .New product Introduction Innovation is the key to sustainability. Feasibility • Product • Cost targeting planning PI PI D R0 R0 D Act it s iv ie (Indicative) Ga e a s t wy D R1 R1 D D R2 R2 D D R3 R3 D D R4 R4 D D R5 R5 D L L La n u ch Proje ct In ia ion it t Prod u u ct Prodct St ra ey ra e g St ttg y Re vie vie w Re w • 9BOX & supporting docs Con cett ce p Con p Se le ion le ct Se ct ion DR1 Sign-offs • Product Profile & tech targets • Recom ended m style them e • Prelim Cost / w . TATA Motors believes firmly in this statement. The following chart explains the process of develop new products. Strategy Analysis 26 (Partial) . • Packaging Options • Manf. m Facilities Pre Prod ct u ion Ph se a • Quality Proving &Process validation • &PP Builds P0 • Vendor parts approval • ologation Hom Ra p p m -u Ph se a • p-up Ram • Build PL Prod ct u St t g & ra e y Pla n g n in Ph se a • Market • Concept analysis alternatives • petitor • Com QFD assessm ent • Styling them es • Explore Prod. Planning • Detail costing • design Full validation • Beta proto tests • Production tooling • Vendor parts dev.

besides centres in South Korea. Other than this. This covers R&D centres in India located at Pune. Every vehicle is developed in close conjunction with customer needs. Today. TATA – Fiat dealers network agreement. the TATA Motors Engineering Research Centre has enabled pioneering technologies and products. Tata buyout of JLR helped the company acquire a global footprint and enter the high-end premier segment of the global automobile market. virtually simulated. prototyped and then operated in real time on the most arduous terrain. “TATA Nano” – The cheapest car in the world costing $2500 is the best example of product innovation. Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car . With 1400 engineers and scientists. the R&D network of TATA Motors is truly international.the Tata Indica and the premium feature sedan . Spain and UK.the Tata Indigo. 27 . • Product Innovation: With so much investment in R&D. exports and top line profits. Research centre at Jamshedpur and The Engineering Research Centre in Pune are the finest in the country and it regularly upgrades it components and aggregates. product innovation has to be the output. Its acquisition of Daewoo Commercial Vehicle helped it earn a plant in Korea which improve domestic market share.• Mergers and Acquisitions with key companies that enhanced its foothold in global as well as local market: M&A has been one of its key strategies for expansion. • Huge investment in developing strong R&D: World-class automotive research and development are key factors that contribute to the leadership of the Company. Jamshedpur and Lucknow.

the Middle East. a 60:40 JV between Tata Motors and Hitachi. as such these two may be first one to get listed.000 crore. • • Expanding presence in overseas market Focus on Bus market: TATA motors has expanded its product range offering for Russian market. Tata Motors has 30 subsidiaries in India and abroad. TDCV is the largest subsidiary in sales terms while TELCOM is the highest profit making subsidiary. “Tata Safari” 4X4 Dicor is one more highly acclaimed innovations by TATAs. Africa. These subsidiaries contributed to Rs. South East Asia and South America. • Focus on key Subsidiaries: TATA motors have strong focus on its subsidiaries. Companies focus is now to explore the possibility of entering various segments of medium and heavy trucks and buses over the next three years. It has “Reverse Guide System”. Tata Daewoo Commercial Vehicle (TDCV) and Telco Construction Equipment Company (TELCON). They are the small trucks with more roads capable to accommodate them. 28 .“ACE” – The mini truck is also a very good example of innovation. Key subsidiaries of Tata Motors are Tata Construction. TATA motor’s Trucks and Buses are being marketed in several countries in Europe. A weather-proof camera is fixed to the rear car to help the driver while reversing the car. Tata hived its automotive technology and R&D division into Tata Technologies which services engineering and design requirement of automobile and aerospace industry.6453. out of which 21 are profit making.37.67 crore revenue out of the total consolidated revenue of Rs. South Asia.

For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product ‘right first time. hence focusing on Bus and Truck segment is imperative.TATA motors believe that focusing on small vehicles wont hit the margins.A blue ocean strategy Creation of an unconsolidated market space No competition Capturing new demand Breaking the value cost trade off 29 . and the companies have an agreement to build a pick-up targeted at Central and South America. The benefit is that Tata has been able to exchange expertise. Not only is it focusing upon new products and acquisitions. and to only transplant a couple of senior managers from India into the new market. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. • • • Plan to streamline production Joint ventures to upgrade technology Great Marketing Strategies: The internationalization strategy so far has been to keep local managers in new acquisitions. The company has had a successful alliance with Italian mass producer Fiat since 2006. For example. Nano. but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. the Fiat Palio Style was launched by Tata in 2007.’ The company has a strategy in place for the next stage of its expansion.

- Differentiation and low cost 30 .

Strong corporate governance based on “rich legacy of fair. 31 .lots of experience and resources to draw from for research and development purposes. The synergy has developed as a result of the strengths of domestic and foreign market share.Conclusion Buying of premium vehicle brands such as Land Rover and Jaguar has bolstered Tata Motors’ image as a global company and increased its global reach and scale. congregating under the umbrella of Tata group. the Tata group has spent around $15. TATA Motors is trying to leverage this asset to enhance group synergy and has been successful.5 billion in acquiring foreign companies The Tata name is a unique asset representing leadership with trust. and transparent governance practices” has helped to ensure that its employees act ethically and the business continues to run smoothly.The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide . ethical. Overall.

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