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AMITY GLOBAL BUSINESS

SCHOOL, KOLKATA

NAME: SUKTIKA BANERJEE


BBA 3rdSEMESTER
(2013-2016)

“TATA MOTORS LIMITED:


COMPANY PROFILE & SWOT
ANALYSIS”
PREFACE
The 'Tata Motors Limited: Company Profile and
SWOT Analysis” contains information and data
about the company . The profile contains a
company overview, business description, SWOT
analysis, key facts, information on products, details
of locations providing a 360° view of the company.

TATA Motors
• Industry : Automotive
• Parent: TATA Group
• Founded: 1945
• Founder(s) : Jehangir Ratanji Dadabhoy Tata
• Headquarters: Mumbai, Maharashtra, India
• Area served : Worldwide
• Formerly known as Tata Engineering & Locomotive
Company (TELCO).
• Renamed as Tata Motors in 2003.
• Registered Office
Bombay House
24, Homi Mody Street
Mumbai 400 001
Tel: +91-22-66658282
Fax: +91-22-66657799
Email: inv_rel@tatamotors.com
Website: www.tatamotors.com
MISSION, VISION & VALUES of the
Company

MISSION:
To be passionate in anticipating and providing the best
vehicles and experiences that excite our customers globally.

VISION:
Most admired by our customers ,employees, business
partners and shareholders for the experience and value they
enjoy from being with us.

CULTURE:
• Accountability
• Customer and product focus
• Excellence
• Speed

VALUES:
• Inclusion
• Integrity
• Accountability
• Customer
• Innovation
• Concern for the environment
• Passion for excellence
• Agility
PRODUCT PROFILE OF THE
COMPANY
 CARS AND UTILITY VEHICLES
CARS:
 Bolt
 Vista
 Indica
 Zest
 Manza
 Indigo
 Aria
 Nano
UTILITY VEHICLES:
 Safari storme
 Safari dicor
 Sumo grande
 Venture
 Xenon XT
 Movus

 TRUCKS AND BUSES


GOODS CARRIERS:
 Prima
 Construct
 Light trucks
 M&HVC
 Pickups
 Super ace
 Ace
 Ultra
PASSENGER TRANSPORTATION:
 Buses
 Winger Platinum
 Winger
 Tata venture
 Magic
 Tata Magic Iris
 DEFENCE AND HOMELAND SECURITY VEHICLES
TROOP CARRIERS:
 Tata Xenon
 Tata 207
 Tata SFC 407
 Tata LSV
 Tata LPT 709
 Tata LPTA 713
 Tata LPT 909
 Tata LPT1109
 Tata SD 1015
 Tata LPTA 1413 (4*4)
ARMOURED :
 Tata Armoured Safari
 Tata Sumo Armoured Vehicle
 Tata Light Armoured Troop Carrier
 Tata Mine protected vehicle

 JAGUAR AND LAND ROVER


PRESENCE ACROSS MARKETS
TATA Motors operates in over 175 markets and
has over 6,600 sales and service touch points.

 North America
United States, Canada, Guam ,Mexico , Peurto Rico and
St.Barthelemy.

 Central and South America


Antigua & Barbuda, Argentina ,Aruba, Bahamas,
Barbados, Bolivia, Brazil, British VirginIslands , Cayman Islands,
Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El
Salvador, Falkland Isles, Guatemala,Grenada, Guyana, Haiti,
Honduras, Jamaica, Netherl and Antilles, Nicaragua, Panama,
Paraguay, Peru, St. Kitts and Nevis, Suriname, Trinidad and Tobago,
Turks & Caicos Islands, Uruguay and Venezuela.

 Africa

Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Congo:


Democratic Republic, Congo: Republic,Djibouti,Egypt, Ethiopia,
Gabon, Gambia, Ghana, Guinea, Ivory Coast, Kenya, Liberia,
Madagascar, Malawi, Mauritania,Mauritius, Morocco, Mozambique,
Namibia, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, South
Africa,Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia and
Zimbabwe
MANUFACTURING FACILITIES
SOUTH AFRICA,MOROCCO
 Europe
UK, Albania, Andorra, Armenia, Austria, Azerbaijan, Belarus,
Belgium, Bulgaria, Croatia, Cyprus, Czech Republic,Denmark,
Estonia, Faroe Islands, Finland, France, Georgia, Germany,
Gibraltar, Gran Canaria, Greece, Guadeloupe,Hungary, Iceland,
Ireland, Israel, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg,
Liechtenstein, Malta,Martinique, Moldova, Monaco, Montenegro,
Netherlands, Norway, Poland, Portugal, Reunion, Romania,Serbia,
Slovakia, Slovenia, Spain, Sweden, Switzerland, Tenerife, Turkey
and Ukraine.
MANUFACTURING FACILITIES: UK, SPAIN
R&D CENTRES: UK, ITALY ,SPAIN

 Asia and Oceania


India, China, Afghanistan, Australia, Bahrain, Bangladesh, Bhutan,
Brunei , Cambodia, Fiji, Hong Kong, Indonesia, Iraq, Israel, Japan,
Jordan, Korea, Kuwait, Laos, Lebanon, Macau, Malaysia, Maldives,
Mongolia , Myanmar, Nepal, New Caledonia, New Zealand, Oman,
Pakistan, Palestine, Papua New Guinea, Philippines, Qatar, Russia,
Saudi Arabia, Singapore, Sri Lanka, South Korea, Syria, Tahiti,
Taiwan, Thailand, UAE, Vietnam and Yemen.
MANUFACTURING FACILITIES:INDIA,THAILAND,SOUTH KOREA
R&D CENTRES:INDIA,SOUTH KOREA
AN OVERVIEW OF THE COMPANY

Tata Motors Limited (formerly TELCO, short for Tata


Engineering and Locomotive Company) is an Indian
multinational automotive manufacturing company
headquartered in Mumbai, Maharashtra, India and a
subsidiary of the Tata Group. Its products include passenger
cars, trucks, vans, coaches, buses, construction equipment
and military vehicles.
Tata Motors Limited is India’s largest automobile company,
with consolidated revenues of INR 2,32,834 crores (USD
38.9 billion) in 2013-14. It is the leader in commercial
vehicles in each segment, and among the top in passenger
vehicles with winning products in the compact, midsize car
and utility vehicle segments. It is also the world's fifth
largest truck manufacturer and fourth largest bus
manufacturer.

The Tata Motors Group’s over 60,000 employees are guided


by the mission “to be passionate in anticipating and
providing the best vehicles and experiences that excite our
customers globally.''

Established in 1945, Tata Motors’ presence cuts across the


length and breadth of India. Over 8 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 (Maharashtra), Lucknow
(Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat)
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’s dealership, sales, services and spare parts
network comprises over 6,600 touch points, across the
world.

Tata Motors, also listed in the New York Stock Exchange


(September 2004), has emerged as an international
automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South
Korea, Thailand, South Africa and Indonesia. Among them is
Jaguar Land Rover, 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 South Korea are
from Tata Daewoo. In 2006, Tata Motors formed a 51:49
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 – the
plant is located in Dharwad. In 2006, Tata Motors entered
into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the
company’s pickup vehicles in Thailand, and entered the
market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata
Motors' joint venture with Tata Africa Holding (Pty) Ltd. set
up in 2011, has an assembly plant in Rosslyn, north of
Pretoria. The plant can assemble, semi knocked down (SKD)
kits, light, medium and heavy commercial vehicles ranging
from 4 tonnes to 50 tonnes.

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, South America, CIS and
Russia. It has franchisee/joint venture assembly operations
in Bangladesh, Ukraine, and Senegal.

The foundation of the company’s growth over the last 68


years is a deep understanding of economic stimuli and
customer needs, and the ability to translate them into
customer-desired offerings through leading edge R&D. With
over 4,500 engineers, scientists and technicians the
company’s Engineering Research Centre, established in
1966, has enabled pioneering technologies and products.
The company today has R&D centres in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Italy, Spain,
and the UK.

It was Tata Motors, which launched the first indigenously


developed Light Commercial Vehicle in 1986. In 2005, Tata
Motors created a new segment by launching the Tata Ace,
India’s first indigenously developed mini-truck. In 2009, the
company launched its globally benchmarked Prima range of
trucks and in 2012 the Ultra range of international standard
light commercial vehicles. 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 also introduced India’s first Sports Utility
Vehicle in 1991 and, in 1998, the Tata Indica, India’s first
fully indigenous passenger car.

In January 2008, Tata Motors unveiled its People’s Car, the


Tata Nano. The Tata Nano has been subsequently launched,
as planned, in India in March 2009, and subsequently in
2011 in Nepal and Sri Lanka. A development, which signifies
a first for the global automobile industry, the Nano brings
the joy of a car within the reach of thousands of families.

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, automotive vehicle
components manufacturing and supply chain activities,
vehicle financing, and machine tools and factory automation
solutions.

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
focused on youth and women. They range from schools to
technical education institutes to actual facilitation of income
generation. In health, the company’s intervention is in both
preventive and curative health care. The goal of
environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last
but not the least, by introducing appropriate technologies in
vehicles and operations for constantly enhancing
environment care.
With the foundation of its rich heritage, Tata Motors today is
etching a refulgent future.
MILESTONES

 In 2004
 Tata Motors and Daewoo Commercial Vehicle Co.
Ltd. signed investment agreement and Tata Daewoo
Commercial Vehicle Co. Ltd. (TDCV) launched
NOVAS, the heavy duty truck in Korea.
 Sumo Victa launched.
 Launch of Indigo Marina.

 In 2005
• 5,00,000th passenger vehicle rolls out. Launch of
Starbus and Globus (buses and coaches), Tata Ace
(India’s first mini truck) and Tata Novus, in India as
well as in Korea by TDCV. New factory at Jamshedpur
inaugurated for Novus.
• Acquired 21% stake in Hispano Carrocera
 Merged with Tata Finance
 Launch of India’s first mini-truck - Tata Ace.
 In 2006
• Indica V2 Xeta launched Passenger Vehicle sales in
India cross one-million mark.
• Tata Motors and Marcopolo, Brazil, announce joint
venture to manufacture fully built buses & coaches
for India & markets abroad.
• TDCV develops South Korea's first LNG-Powered
Tractor- Trailer
 In 2007
• Tata Motors launches the longwheel base Indigo XL,
India's first stretch limousine
• Tata Motors introduces Magic & Winger - creates new
segments in urban and rural passenger
transportation.
 In 2008
• Launch of the new Sumo -- Sumo Grande, which
combines the looks of an SUV with the comforts of a
family car.
• Tata Motors unveils its People's Car, Nano, at the
ninth Auto Expo.
• Tata Motors signs definitive agreement with Ford
Motor Company to purchase Jaguar and Land Rover.
• Tata Motors completes acquisition of Jaguar Land
Rover.
 In 2009
• Tata Marcopolo Motors' Dharwad plant begins
production.
• Tata Motors launches Nano – The People's Car .
• The company launched its globally benchmarked
Prima range of trucks.
• 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.
 In 2010

• Launch of the first Indian 4-wheel drive, Crossover,


Tata Aria
• Tata Nano receives the world's oldest and most
coveted GOOD DESIGN™ Award for 2010.
• Tata Motors Group unveils the Jaguar XJ; 4x4,
7-seater Crossover Tata Aria, Tata Venture and the
Tata Magic Iris at the Auto Expo 2011
• Roll out of the 100,000th Tata Safari from the Pune
Plant
 In 2011
• Tata Venture launched
• Launch of Tata Divo Luxury Coach and Tata Starbus
Ultra
• Tata Sumo Gold introduced
• New Tata Indica Vista launched
• Tata Motors unveils Assembly Plant in South Africa.
• Tata Magic IRIS and Tata Ace Zip launched
• Range Rover Evoque launched in India

 In 2012
• Tata Motors enters Bangladesh’s new car market.
• Tata Safari Storme, the Real SUV, hits the road
• Launch of the the Ultra range of international
standard light commercial vehicles.

 Tata Ace races through the one-million mark in just


2,680 days.

• Launch of PT Tata Motors Indonesia.


• Tata Motors enters into distribution agreement in
Myanmar.

 In 2013
• Tata Motors launches the world–class range of Tata
PRIMA trucks in Sri Lanka.
• Land Rover launched its first-ever hybrid models –
the Range Rover Hybrid and Range Rover Sport
Hybrid.
• Safari Storme launched in Nepal.
• ACE EX2 launched in Sri Lanka.
• TATA Xenon XT launched in South Africa.
• Safari Storme Explorer Edition launched
 In 2014(till March)
• Tata Armoured Personnel Carrier (APC) Left Hand
Drive (LHD) launched.
• Prima CX 1618 T, a Medium Commercial
Vehicle,launched.
• Ultra 614, the new age truck, launched.
• Vista VX Tech, the advanced and dynamic premium
hatchback, launched.
• Nano Twist launched.
KEY P ERFORMANCE INDICATORS
(2013-2014)

 Rs. 118,777 crores - Market Capitalization

 Rs.233,662 crores – Total Revenue

 Rs.18,869 crores – Consolidated Profit Before


Tax

 16 % - EBITDA Margin

 6,600 – Sales and Service touch points ,globally

 66,593 – Employee Strength(group)


TATA MOTORS – CURRENT SCENARIO
Tata Motors' total sales (including exports) of Tata
commercial and passenger vehicles in April 2014 were
33,892 units, a decline of 34 percent over 51,160 units, sold
in April 2013. The company's domestic sales of Tata
commercial and passenger vehicles for April 2014 were
30,670 vehicles, which is a 36 percent decline over 47,595
vehicles sold in April last year. (as shown in graph 1)

Total Sales

Apr-14
Apr-13

Domestic Sales

0 10,000 20,000 30,000 40,000 50,000 60,000

Graph 1

Commercial vehicles
The company's sales of commercial vehicles in April 2014 in
the domestic market were 23,229 units, which is a 36
percent decline compared to 36,025 units sold in April last
year. LCV sales were 14,804 vehicles, which is a decline of 43
percent over April last year, while M and HCV sales stood at
8,425 vehicles, a decline of 16 percent over April last year.
Passenger vehicles
Sales of passenger vehicles for April 2014 were at 7,441
units, lower by 36 percent over 11,570 vehicles sold in April
2013. Sales of the Nano/ Indica/ Indigo range in April 2014
were 5,653 vehicles, lower by 37 percent over 8,918 vehicles
sold in April 2013. The Sumo/ Safari/ Aria/ Venture range
sales were 1,788 units, a 33 percent decline over 2,652 units,
sold in April last year.

Exports
The company's sales from exports were 3,222 vehicles in
April 2014, registered a decline of 10 percent compared to
3,565 vehicles in April last year

Commercial Vehicles

Passenger Vehicles Apr-14


Apr-13

Exports

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Graph-2
Tata Motors dull fourth quarter sustained by sales of Jaguar
Land Rover

Tata Motors announced its fourth quarter results on 29th May 2014
showing increase in revenues by a thin margin of 23 percent. The
firm’s overall global revenues have grown to $39.46 billion though
its domestic market sales have decreased due to slowdown in
automobile markets and fall in drastic decline in local currency. This
sharp fall in currency also led to growth in input costs for most
carmakers in India though none were able to increase prices due to
dull demand in passenger car segment. Tata Motors stated that this
fall in exchange rate led to loss in foreign exchange loss of $60
million which also affected its profits leading to decline in fourth
quarter when compared to same time last year.

Though fall in demand within domestic markets for its regular


products led to fall from India’s top 3 to 4th automakers’ position,
its volumes in international and domestic markets from sales of cars
under Jaguar Land Rover helped sustain losses. Though demand for
its entry level and mid segment cars under Tata Motors was
declining, demand for its luxury car products under Jaguar Land
Rover has remained steady due to growth of high income groups in
India and other emerging markets like China and Brazil. Presently
95 percent of Tata’s earning is being contributed by Jaguar Land
Rover as volumes in domestic markets for this premium brand has
grown by 15 percent after introduction of new models.

While Jaguar brand alone witnessed growth in global sales to more


than 80000 units in 2013, Land Rover brand boosted volumes by
contributing more than three fourths to overall sales numbers of
Tata Motors. While demand in North American markets has grown
by 50 percent, the sales in China and Brazil have also grown by a
significant percentage.
SWOT ANALYSIS of TATA MOTORS
SWOT analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses , Opportunities and Threats involved
in a project or in a business venture. It involves specifying the
objective of the business venture or project and identifying the
internal and external factors that are favourable and unfavourable
to achieve that objective.

POSITIVE NEGATIVE
FACTORS FACTORS
INTERNAL STRENGTHS WEAKNESSES
FACTORS
EXTERNAL OPPORTUNITIES THREATS
FACTORS

MATCH CONVERT

STRENGTHS WEAKNESSES
with into
OPPORTUNITIES STRENGTHS
STRENGTHS of the company
• Tata Motors Limited is India’s largest automobile
company, with consolidated total revenues of ` 2,33,662
crores (USD 38.6 billion) in 2013-14.
• TATA motors is a reputed brand in Indian Industry. It
has a strong presence in India. It is the leader in
commercial vehicles in each segment, and among the
top three in passenger vehicles in India with products in
the compact, midsize car and utility vehicle segments.
• . TATA motors is market leader in Automobile Industry
with high market share.
• .TATA Motors has been aggressively acquiring foreign
brands to increase its global presence.
• The research and development department of TATA
motors is very strong. Tata motors is known as an
innovative global leader. The company has a very strong
R&D having over 3000 engineers and scientists .
• The Company has huge employee base.
• TATA motors employee productivity percentage is high.
• TATA motors produce low price car with low fuel
consumption.
• TATA’s management is strengthened by the collective
experience of its partners and acquired companies –
this includes general management, marketing, sales and
operations
• TATA motors posses High corporate responsibility.

WEAKNESSES of the company


• Tata has not got a foothold in the luxury car segment in
its domestic, Indian market.
• Return on Investment on TATA motors shares in low.
• 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.
• Most of the automobiles Tata manufactures are based
on older platforms.
• Weak marketing skills.
• Relatively smaller proportion of market share in
Passenger vehicles in 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.
• Safety standards are not maintained/ often ignored.This
has led to diminish of public image of the TATA
automobiles (eg Tata Nano).
OPPORTUNITIES of the company
• TATA motors can take the advantage of their low cost
car by entering into third world countries where people
have low purchasing power.
• Joint ventures in other countries allow TATA motors to
easily enter into new market.
• TATA motors should focus in developing luxury cars.
• The Nano could sell well in other geographic markets.
Expanding markets such as China may find the Nano
just the answer.
• Emerging industrial nations such as India, South Korea
and China will have a thirst for low-cost,
environmentally friendly passenger and commercial
vehicles.
• 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.
• Increase its product line in light & heavy vehicle. So
that it can encash on its Brand image.
• The Company can work on its big product range with
environment friendly Technology.
THREATS to the company
• 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.
• Rising prices in the global economy could pose a threat
to Tata Motors Limited on a couple of fronts. The price
of steel and aluminum is increasing putting pressure on
the costs of production.
• Powerful competitors for the luxury market including
Honda, Toyota, Ford and Mercedes-Benz are pushing
into the Indian market.
• The low safety standards can impact the sales.
• TATA motors have low cost advantage over its
competitors, once the competitors find out the low cost
production methodology then there will no competitive
advantage.
• Rising prices in the global economy could pose a threat
to Tata Motors Limited on a couple of fronts. The price
of steel and aluminum is increasing putting pressure on
the costs of production. Many of Tata's products run on
Diesel fuel which is becoming expensive globally and
within its traditional home market.
CONCLUSION
After all the research work and SWOT analysis of TATA
Motors ,I came to the conclusion that Tata Motors is an
overall strong company that has found it’s strength and
expansion through it’s parent company -Tata Group and its
numerous acquisitions and mergers. Tata motors is a market
leader in the Automobile Industry with high market share.
Manufacturing low price car with low fuel consumption
gives it the advantage of entering into the third world
countries. It’s management is strengthened by the collective
experience of its partners and acquired companies – this
includes general management, marketing, sales and
operations.
TATA Motors should come in Luxury segment with new
strategies in the domestic market. It should focus on
increasing the proportion of market share in Passenger
vehicles in India.
Developing new products and covering new market will
always be their main purpose.
REFERENCE

1. TATA Motors 69th annual report


2. TATA motors global sustainability report
3. www.wikipedia.org
4. www.marketingteacher.com
5. www.economist.com
6. www.businessgrowthconsultant.com

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