SECTOR- Automotives

Company- TATA MOTORS

General Overview
Tata Motors Limited is a leading global automobile manufacturer of cars utility vehicles
buses trucks and defence vehicles. As India's largest automobile company, Tata Motors
has operations in the UK South Korea Thailand South Africa and Indonesia through a
strong global network of 76 subsidiary and associate companies including Jaguar Land
Rover in the UK and Tata Daewoo in South Korea. In India Tata Motors is a market
leader in commercial vehicles and among the top passenger vehicles manufacturers
with 9 million vehicles on Indian roads. With design and R&D centres located in India
the UK Italy and Korea Tata Motors strives to pioneer new products that fire the
imagination of GenNext customers.

The company's passenger cars include the Indica the Indica Vista the Indigo and the
Indigo Marina. Jaguar produces four car lines: XK XF XJ and X-Type. They manufacture a
number of utility vehicles (UV) including the Sumo and the sports utility vehicle ,Tata
Safari. Also they manufacture a variety of light commercial vehicles including pickup
trucks and buses.

Shareholding pattern of the company

Out of the total number of shares outstanding of Tata Motors ltd about 46.41% of the
holdings are with promoters. This is followed by 13.78% by foreign institutions,
financial institutions at 6.62% and general public at 14.95%

Management of the Company

The Board of directors consists of Guenter Karl Butschek who is the current CEO and
Managing Director of Tata Motors Worldwide. Apart from managing Tata Motors' India
business, Butschek is also responsible for all other domestic and overseas subsidiaries,
joint ventures and associates of Tata Motors.
Mr. P B Balaji is the Chief Financial Officer with an MBA from IIM,Calcutta with wide
range of finance lead positions in the past.
Mr.Ratan Tata is the chairman emertitus of Tata Motors and is a pillar for the company
along with the goodwill and image people associate the company to. He has played a
major role in the success of the company and its employees.

SWOT ANALYSIS

Strengths
Diversified Portfolios: Tata has a large, well-diversified portfolio of products. The well-
diversified portfolio of vehicles makes it bring stabilization in its sales and profit. It
brings confidence to the investors who are interested in this company to invest.
Stabilized Earning: It has been earning stabilized profit. Tata has a good management
policy. It can be noticed when they acquire new companies. One study showed that
Tata will only purchase those companies which have the same management system.
They follow this policy only because they have confidence over their management
policies.
Recognized Brand: TATA is a well-known brand in the home country, and in the
neighbor country like Pakistan, Bangladesh etc. One of its most recognized brands
is Jaguar Land Rover PLC, among others. 

Weakness
Indifferent to Changes: Automobile industry is a very competitive industry. Every
company in this industry remain competitive as most of the automobile companies are
very old and experienced in this business. They offer a new model and tech-savvy cars.
But Tata Motors is indifferent in this case. Its large model base is old.

Weak Marketing Policy: Strong marketing policy is the strength of a company. It is the

way a company can know the demands of their customers and produce the products
accordingly. Also, it helps the company to communicate with consumers and inform
about the value they are planning to deliver. The TATA does not have strong marketing
policy to promote its product world-wide.

Opportunities
Increasing Purchase Power of Indian People: The sales of a product largely depends
on the price of the products. If prices are reasonable, a company can easily develop
tech-savvy modern cars and meet the sale target. as the people of India are earning
more than before, they are having more purchase power.

Expanding Auto Market: The world is becoming modernized. People are being

dependent on transportation facilities heavily. It will increase the sales of motor
vehicles. As Tata still has the opportunities to enter a different foreign market, it has a
great expansion opportunity.

Opportunities for Merger and Acquisitions: Merger and acquisition is a pretty

common tradition in the automobile industry. Tata has a long experience as it is one of
the oldest companies in India. As it has grown bigger, it has grabbed the capabilities for
acquisitions. Also, it has its own proved management policies that may help to manage
newly acquired companies.

Threats
Fuel Price: The cost of fuel affects the sale of a vehicle not only in India but also all over
the world. The fuel price and the sales of the cars directly negatively related. So, if the
product price increases, it will reduce the sales volume. This is one of the biggest threat
for the car companies.

Government Law on Environment: Many countries are developing law on carbon

emission. If India develops such kind of law, TATA might need to develop more carbon-
efficient cars which may need additional investment. This requires additional
investments.

Market competition: The automobile market is so much competition. These

companies are frequently offering newly developed cars which have fuel efficiency,
modern models, technologies, and environmental friendliness. TATA has many strong
competitors in this sector. So, it has to remain cautious and become more competitive.

Increasing Production Cost: In this modern era, competition has increased. As a

result, the production cost is more than before as the company has to be more
competitive for offering innovative products.

Competitive Analysis
Competitor analysis of Tata Motors: Tata motors faces heavy competition from both
domestic and foreign car manufacturers. Some of the competitors that Tata Motors
has in the passenger vehicle segment are Maruti Suzuki, Hyundai, Mahindra &
Mahindra, Honda, Toyota Kirloskar, Ford Motors etc.

Tata Motors made one the biggest jumps in retail market share during FY21. The third
biggest car brand of India closed FY21 with a share of 7.93 percent as against 5.62
percent posted in FY20. It recently launched the Safari, limited edition Tiago, new
variant of Altroz, Nexon and Harrier which boosted their revenues. 

Honda Cars India Honda is one of the premium car manufacturers of the world. It is
headquartered in Tokyo, Japan. Its primary business is the manufacture of motorcycles,
automobiles and power products. The company provides passenger cars, multiwagons,
minivans, sports utility vehicles and mini cars all across the globe.

Honda Cars India also saw slippage in retail market share during FY21. The Japanese
car brand recorded a market share of 2.98 percent as against 3.87 percent clocked in
FY20. Honda launched new editions of the Amaze and WR-V, refreshed Jazz and WR-V,
new City, and a new variant of Civic.

Mahindra & Mahindra is an Indian multinational automobile manufacturing

corporation headquartered in Mumbai. It manufactures a variety of multi utility
vehicles, light commercial vehicles, three wheelers, and tractors as well as spare parts.
It also provides assistance in financing, leasing, and purchasing of automobiles and
tractors. They have recently ventured into design and manufacturing of defence
vehicles as well. 

Mahindra & Mahindra slipped to the fourth spot in the ranking as it continued to lose
its market share to the competition. In fact, M&M became one of the biggest losers of
market share during FY21. The company saw its retail share come down to 5.39
percent from 7.37 percent. M&M launched only one product during FY21, Thar. 

Conclusion and way forward for the company

Automotive manufacturers and suppliers are confronted with increasing complexity as
a result of increasing numbers of products and options, shorter technology cycles,
increasing pressure to innovate and global supply networks. And at the same time they
need to balance the needs and demands of customers, investors, regulators, non-
governmental organizations and the public. 
Tata Motors has more strengths than weaknesses. It is a locally organized company
means most of its business operations are in the local market. It should develop new
strengths and utilize its future opportunities to grow it further.Tata motors needs to
work on their Electric vehicles on making them affordable with cheaper battery
sourcing which would bring about a revolution in automotives.