Automobile

Industry

Tata Motors
and
Mahindra & Mahindra
 Ratio Analysis

Altman's Z Score
TATA: 3.7
M&M: 5.8

https://www.moneycontrol.com/india/stockpricequote/auto-lcvshcvs/tatamotors/TM03
https://www.moneycontrol.com/india/stockpricequote/auto-carsjeeps/mahindramahindra/MM
 Does TATA have a Competitor Advantage Compared to
that of Mahindra & Mahindra?

Competitive Advantages:
Tata Motors is a leading global automobile manufacturing company, a $37 billion
organisation as compared to M&M at $21 billion.
Over 8800 points of Sales and Service worldwide with 722 service centres in India as
compared to 342 Service centres of Mahindra in India.
Almost 50% Market Share in EVs In India with Nexon & Tigor.
5 out of the Top 10 Safest Cars in India According to Global NCAP are of TATA as
Compared to 3 of Mahindra.
TATA has 104 direct and indirect subsidiaries, 9 associate companies, 4 joint
ventures and 2 joint operations spread across India and abroad.

https://www.tatamotors.com/about-us
https://www.news18.com/news/auto/top-10-safest-cars-in-india-according-to-global-ncap-mahindra-xuv-700-tata-punch-and-more-5008243.html
 A. Advantage
TATA’s Vehicles have Higher Safety Ratings. The average Global
NCAP rating is above 4 Star
Highest market share in EVs, above 50%
More Competitive Cars in Every Price Segment as compared to
Three Circle Analysis

Competitors

B Parity
In addition to the car and SUV segment, Mahindra & Mahindra
and Tata Motors is competing for dominance in the
commercial vehicle segment also.
Continuous innovation in terms of technical abilities and
facelifts to be in trend.
Safety is paramount, and the organisation places a strong
emphasis on offering best built quality and the most safest
vehicles based on Global NCAP tests

C. Disadvantage
Mahindra & Mahindra’s SUVs are suited perfectly to Indian road
conditions eg, Mahindra Scorpio - an outstanding performer for
many years.
M&M has a competitive advantage on after-sale cost
M&M has a highly focused R&D department constantly focusing
on developing new products
 Three Circle Analysis
D. The Swamp E. Unmet Needs
Adhering to industry Electric Vehicle Market.
standards and norms With the rise in consumer
BS VI(pollution control) - awareness, everyone is making
engine efficient, less sustainable choices, the market
pollution needs to provide economical
Adhering to the Motor and efficient electric vehicles.
Vehicles Act, 1988 (MVA) Even though both have started
tapping into the market, there is
a lot of potential.
Tata’s Nexon EV is one of the
most successful products and
Mahindra's E Verito has been
primarily successful in the fleet
market owing to good space
inside the car and low running
cost.
F. Non- Value
Tata Motors has spent Rs
15,339 crore on R&D operations
in FY2022 which
approximately 5.5% of the
overall turnover.
Despite the semiconductor
shortage affecting the supply
chain, TATA Motors has been
expanding its sales figures by
using different methods which
also includes paying higher
prices for them
The total CSR expenditure of
Tata Motors in FY 22 is Rs. 23.69
crores
G. Competitor's Non- Value
Project Hariyali, launched in
2007
is Mahindra Group announced
that in its 75th milestone
year, its skilling initiatives like
Mahindra Pride Schools &
Classrooms, SMART
ACADEMY, SMART Plus, and
Surya Mitra have skilled
500,000 youth
Key Strategic Maps
Key Strategic Maps
Key Strategic Maps
 Tata Motors' key resources include

Manufacturing facilities - This resource includes the equipment and

production facilities of Tata Motors for designing and manufacturing their

vehicles.

IT infrastructure - The infrastructure of Tata Motors has state-of-the-art

technology and manufacturing facilities. Their plants are certified for world-

class quality and manufacturing standards.

Retail, logistics and supply chains - Tata Motor's customer support division

provides a wide range of services and products to its customers across the

world through their network of more than 1600 authorized service points. The

division also provides vital inputs to the development of the product and acts

as a link between customers and the manufacturing plants.

Workforce - Tata Motors has a group of people from diversified fields. They

have a staff strength of more than 80,000 employees. The collective skills and

experience of these employees are the key to the company's business.

 Capabilities Sustainability

TML innovates mobility solutions with a passion to enhance

the quality of life. Emphasizing the following values - Integrity,
Research and Development Infrastructure Teamwork, Accountability and customer focus.
Advanced vehicle & drivetrain development Tata Motors Group believes that long-term value creation for
Advance Design and product engineering their business is closely associated with their sustainability
Digital vehicle simulation and virtual planning performance (covering the Environment, Social and
Facility planning, installation and start-up. Governance aspects). For addressing the various
Development of jigs and fixtures. sustainability material issues, TML adopts a ‘multiple-capitals’
approach, which helps in understanding the dependencies
and impacts of their business on various resources and
relationships.
So we can conclude that Tata Motors’ key resources and
capabilities are sustainable.
 What are the industry’s key success factors? How has it
evolved and what are your predictions?
The top success factors are quality, innovation, reliability, performance, cost and after sales service.

Quality: Since a huge amount of a consumer’s income is spent on buying a car (automobile), they want to make sure that they are
investing in the right product quality-wise.

Innovation: Since technology is advancing at a never imagined pace today, and new features are developed every day, it is imperative
for car manufacturers also to come up with new and innovative features frequently to keep up with the competitors and also to meet
the demands of the consumers.

Reliability: The consumers also want the odds of an owner being inconvenienced by problems and repairs of the car to be very low.

Performance: The performance of a car includes the mileage it provides, the suspension and braking power. Different consumers may
have different expectations in terms of mileage but in terms of suspension, engine and brakes, everyone desires the best.

After-sales service: After-sales services are the activities that a manufacturer/dealer offers after a purchase of a product or service
has been made for the purpose of supporting customers while they use the product or service.

Earlier, a car was just a feasible means of transport and not much thought was put in making it luxurious, innovative or fancy. However,
over time the demand for fancy features like power steering, cruise control, ventilated seats, etc has completely transformed the
industry. In the future, innovation and after-sales service will top the key success drivers for the automobile industry. Along with other
factors like reliability, performance and quality are important too.
Porter's Diamond model
Factor Conditions Demand Conditions

1. Contractual nature of labours 1. Low demand because of

2. High costs, inconsistency and
low quality of power
3. Poor design facilities
4. Insufficient infrastructure &
connectivity
and safety
traffic congestion & poor
roads
2. Excessive taxes in vehicle
purchase.
3. Poor brand image of Indian
cars' performance, features,

Related and Firm strategy,

Supporting Industries structure and rivalry

1. Highly fragmented and 1. Unused Production capacity

An analysis of the Porter's Diamond counterfeit auto component 2. Laggard nature in outsourcing
industry 3. MNEs and indigenous
Model shows us that India is not a good 2. Demand uncertainty, credit automaker strategic
home base for both the companies. constraint and lack of skilled difference
manpower
 Generic Value Chain by McKinsey
Parameters Technology Development Distribution Service

Working on fuel cell technology (Hydrogen

Tata Motors have an extensive network, Tata Motors has the Largest CRM
fuel) collaborated with ISRO
partnering with various distributors all system in the Automobile Industry
Housing Asia's first Anechoic chamber,

over India Tata Motors aims to provide responsive,

TATA motors India's first full climate vehicle crash test

TML Distribution Company Ltd (TDCL), reliable and Best Value services which
facility
acts as a dedicated distribution and include both online and offline support
Has 5525 out of 9856 patents granted; UK

logistics management

being the main focus for R&D

Acquisition of Pininfarina for Hybrid & Electric

vehicles solutions, industrial equipment,

1300 Semi- Urban and Rural Outlets to M&M launched QWIK as a part of its
heavy machinery etc. have to maximum to reach to potential quick service customer initiative
Mahindra &

Acquisition of Bio Agency; building up Bio

Customers It is new in providing online services in
Mahindra HIVE approach enabling product experience
Started Samriddhi Centre to develop rural Pandemic hit India which offered them
centric approach for Rapid Product
dealership Infrastructure a huge scope of improvements
Innovation to Market
 Recommendations

Recommendations for TATA motors

Scrappage policy & growth in e-commerce during COVID-19 has fuelled demand in last mile transportation, thereby increasing
the high demand for Cargo trucks. Tata should focus on small & commercial vehicle segments
Tata should also focus on working on the better engine for heavy vehicles which will reduce emissions and leads to better
customer acceptability
As mentioned, since after-sales services are part of Sustainability, Tata Motors should also focus on that

Recommendations for M & M

Electrification has just started taking place in India, and since M&M has already started exploring the market, it could spend
more on R&D in this sector
Mahindra is highly restricted geographically, trying to reach every household, whereas a huge International market can play a
major role in its growth
To tackle its competition and become the market leader in the Industry The company also need to work in providing best
services to its customer and adopting the recent trends with the changing environment as customer needs are changing
rapidly
 Thank You!

Group: 02
Aditi Gera: M217-21
Shree Prakash Raman: M403-21
Kritika Singh: M046-21
Joanne Simon: M353-21
Akash Kumar: M326-21
Neetu Boora: M262-21
Shivam Shekhawat: M293-21