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TATA MOTORS LTD.

General overview:

Tata motors ltd. formerly Tata Engineering and Locomotive Company (TELCO), Is the subsidiary of
Tata sons pvt. Ltd., Tata motors is the dream project of emirates of Tata group Mr. Ratan Tata, most of
his friends and colleagues suggest him not to go standalone for the passenger vehicle segment or he
cannot do this without the joint venture or partnership with experienced one. Tata motors manufactures
commercial vehicle and passenger vehicles, it is to be said that they have mastery in commercial vehicle
segment, and market leader from the perspective of market share in commercial vehicle segment. And
now Tata motors is rising day by day.

Management of company: Tata motors ltd is a public company, it was established by JRD Tata in the year
1945, and the majority stake in Tata motors is of Tata sons nearly about 39.52%.

Management:
Designation
Name
Om Prakash Bhatt Ind. Non-Executive Director
Vedika Bhandarkar Independent Director
N Chandrasekaran Chairman & Non-Exe.Director
Ralf Speth Non Executive Director
Name Designation
Hanne Sorensen Ind. Non-Executive Director
Ratan N Tata Chairman Emeritus
Guenter Butschek Managing Director & CEO
Ralf Speth Non Executive Director
COMPANY IS PROFESSIONAL OPERATED OR FAMILY OPERATED:

Tata motors is mainly headed by the Tata family until Mr. RATAN TATA retires, now it is headed by the
professional, N CHANDRASHEKHARAN is the CEO of the Tata group, and the managing director and
CEO of Tata motors is Guenter Butschek,, but still the main goal of the organization is to provide safe
and performance oriented affordable cars to Indians, the good ethical culture will go on either with or
without Tata family. Ratan Tata sures that the organization is in right hands and always lead to path of
growth.

SWOT:

STRENGHTS:

Tata motors has a strength of its brand name TATA which is perceived as reliable and good quality
product, Tata motors acquired the jaguar land rover and know get its technical knowhow and all other
rights and research and developments, it helps to gain more market share in the passenger vehicle
segment, the Tata motors has also advantage of getting the funds from the other arms of Tata sons, Tata
motors get there raw material like steel and other from other Tata firms on a reasonable price.

WEAKNESS:

The management of the Tata motors in not up to the mark required as compare to other players in the
industry, which directly affects the after sales and services of the company and they have a bad image in
after sales and services, the luxury brand Jaguar Land rover is incurring losses which directly affects the
profitability of Tata motors.

OPPORTUNITIES:

Tata has started developing the sustainable electric vehicles as of now government of India is also
pushing for the e vehicles , recently Tata motors launches Tata taiga and tigor , Tata nexon in electric
variants. Tata is also focusing on mini SUVs segment by launching Tata harrier. Tata motors is also
changing its promotional strategies which is attracting more customers.

THREATS:

The main threat is the competitors, Tata motors is competing with brands like Maruti Suzuki, Hyundai,
Mahindra, Toyota, Ashok Leyland, etc. and also going in a worst phase of declining sales in last 2
decades. The other threats are legal battle as transession phase in going on, the vehicles has to be
following bharat standard 6 emission norms which affect its inventory and flows of inventories.

COMPETITIVE ANALYSIS

Tata motors is market leader in the commercial vehicle segment, its competitors are Ashok Leyland,
Mahindra and Mahindra, bharat Benz etc, in passenger vehicle segment Maruti Suzuki, Hyundai, Ford
and in luxury brand BMW, fiat Chrysler automobile, mercedies Benz, volks wegan group.
Ashok Leyland is giving tough competition to Tata motors in commercial vehicle segment, as small load
vehicles segment is dominated by Tata motors and very heavy vehicle segment i.e. above 12 tonnes is
dominated by Ashok Leyland. Ashok Leyland was founded by hinduja brother in 1948 and has
headquartered in Chennai. And its market cap is INR 137.97 billion where as Tata motors has market cap
of INR 278.07 billion.

Maruti Suzuki is market leader in the passenger vehicle segment in India, Tata motors is on 3 rd or 4th
position. Tata motors are lagging in sales because of after sale and services , Maruti Suzuki has strong
widespread after sales network and it is very well established, now Tata motors is coming with more new
effective strategies to deal with weak area that stops it become market leader. Now Tata motors get
advantage of all technical knowhow of its acquired subsidiary jaguar land rover which pave the ways
toward growth in Indian market. Maruti Suzuki shares have good growth even in the times of pandemic
where as TML shares are trading low on Indian market

Land rover which is famous for its luxury and excellent off roading capabilities was earlier the arm of
ford motors, after incurring losses Mr. Ratan Tata acquire the whole unit and make it profitable, nobody
can doubt the off road capabilities of a land rover, and the main competitors are FCA, Mercedes Benz
which are pushing hard to improve their off-roading capabilities but till now they are unable to beat the
land rover

CONCLUSION

Tata motors ltd. Is the company known for the trust and reliability, its total market cap is INR 278.07
billions. The share price is plunged almost 50% in the year 2020.it is the large cap company. The face
value of the shares is INR 2 only and its freefloat market cap is INR 14520.96 crores. Tata motors ltd. Is
facing tough compition in every segment and also giving a tough compition, Mr. Ratan Tata established
the foundation very well in passenger vehicle , Tata motors also get advantage of market share that it
enjoyed in commercial vehicle segment. And slowly its share prices are increasing , after the pandemic
the demand in the passenger vehicles will increase gradually because know the people will avoid the
crowd and will use public transport very less, so it is the good opportunity to prepare for the demand and
serve the maximum people.

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