OF Minor Project: "Tata Motors"
OF Minor Project: "Tata Motors"
REPORT
OF
MINOR PROJECT
ON
“Tata Motors”
SUBMITTED BY
Navneet Nadhani
Registration No :- 180901170
BBA II SEMESTER
ASSISTANT PROFESSOR
7) Conclusion
Introduction on Tata Motors
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinational automotive manufacturing company headquartered
in Mumbai. It is a subsidiary of Tata Group, an Indian conglomerate. Its products include
passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military
vehicles.
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Great Britain and Thailand. It has research and development centres in
Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain.
Tata Motors' principal subsidiaries purchased the English premium car maker Jaguar Land
Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle
manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture with Hitachi (Tata
Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which manufactures
automotive components and Fiat Chrysler and Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1988 with the launch of the Tata
Mobile followed by the Tata Sierra in 1991, becoming the first Indian manufacturer to achieve
the capability of developing a competitive indigenous automobile. In 1998, Tata launched the
first fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's cheapest car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The
company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of
2016.
Tata Group entered the commercial vehicle sector in 1954 after forming a joint venture
with Daimler-Benz of Germany. After years of dominating the commercial vehicle market in
India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a
sport utility vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata
Estate (1992; a station wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a
5-door SUV) and the Tata Safari (1998).
Tata Indica (first generation)
Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although
initially criticized by auto analysts, its excellent fuel economy, powerful engine, and an
aggressive marketing strategy made it one of the best-selling cars in the history of the Indian
automobile industries. A newer version of the car, named Indica V2, was a major improvement
over the previous version and quickly became a mass favourite. Tata Motors also successfully
exported large numbers of the car to South Africa. The success of the Indica played a key role in
the growth of Tata Motors.
In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo
Commercial Vehicles Company, later renamed Tata Daewoo.
On 27 September 2004, Tata Motors rang the opening bell at the New York Stock Exchange to
mark the listing of Tata Motors.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through the
introduction of new products such as buses (Starbus and Globus, jointly developed with
subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata
Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to
manufacture fully built buses and coaches.
Tata Bolt
In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer of the
Jaguar and Land Rover from Ford Motor Company.
In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo;[15] the range went on sale in South Korea, South Africa, the SAARC countries, and the
Middle East at the end of 2009.
Tata acquired full ownership of Hispano Carrocera in 2009.
In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality Award.
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company
Trilix for €1.85 million. The acquisition formed part of the company's plan to enhance its styling
and design capabilities.
In 2012, Tata Motors announced it would invest around ₹6 billion in the development of
Futuristic Infantry Combat Vehicles in collaboration with DRDO.
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world to run on
compressed air (engines designed by the French company MDI) and dubbed "Mini CAT".
In 2014, Tata Motors introduced first Truck Racing championship in India "T1 Prima Truck
Racing Championship".
On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the 22nd
floor to the fourth floor of the Shangri-La Hotel in Bangkok, where he was to attend a meeting of
Tata Motors Thailand.
On 2 November 2015, Tata Motors announced Lionel Messi as global brand ambassador at New
Delhi, to promote and endorse passenger vehicles globally.
On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as brand
ambassador for its commercial vehicles range.
On 8 March 2017, Tata Motors announced that it has signed a memorandum of understanding
with Volkswagen to develop vehicles for India's domestic market.
On 3 May 2018, Tata Motors announced that it sold its aerospace and defense business to
another Tata Group Entity, Tata Advanced Systems, to unlock their full potential
Financial Status of Tata Motors
Balance sheet of Tata motors
* in (Rs. cr.)
Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata
Motors marque. Tata Motors is among the top four passenger vehicle brands in India with
products in the compact, midsize car, and utility vehicle segments. The company's manufacturing
base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar
Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat). Tata's
dealership, sales, service, and spare parts network comprises over 3,500 touch points. Tata
Motors has more than 250 dealerships in more than 195 cities across 27 states and four Union
Territories of India. It has the third-largest sales and service network after Maruti
Suzuki and Hyundai.
Tata LPT Trucks made at overseas plants
Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, and Senegal. Tata has dealerships in 26 countries across 4 continents. Tata is present in
many countries, it has managed to create a large consumer base in the Indian Subcontinent,
namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata is also present in Italy, Spain,
Poland, Romania, Turkey, Chile, South Africa, Oman, Kuwait, Qatar, Saudi Arabia, United Arab
Emirates, Bahrain, Iraq, Syria and Australia.
Tata Daewoo
Main article: Tata Daewoo
Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly Daewoo
Commercial Vehicle Company) is a commercial vehicle manufacturer headquartered in Gunsan,
Jeollabuk-do, South Korea, and a wholly owned subsidiary of Tata Motors. It is the second-
largest heavy commercial vehicle manufacturer in South Korea and was acquired by Tata Motors
in 2004. The principal reasons behind the acquisition were to reduce Tata's dependence on the
Indian commercial vehicle market (which was responsible for around 94% of its sales in the
MHCV segment and around 84% in the light commercial vehicle segment) and expand its
product portfolio by leveraging on Daewoo's strengths in the heavy-tonnage sector.
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World
Truck and buses including GloBus and StarBus. In 2012, Tata began developing a new line to
manufacture competitive and fuel-efficient commercial vehicles to face the competition posed by
the entry of international brands such as Mercedes-Benz, Volvo, and Navistar into the Indian
market.
Tata Hispano
Main article: Tata Hispano
Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in Zaragoza,
Aragon, Spain, and a wholly owned subsidiary of Tata Motors. Tata Hispano has plants in
Zaragoza, Spain, and Casablanca, Morocco. Tata Motors first acquired a 21% stake in Hispano
Carrocera SA in 2005, and purchased the remaining 79% for an undisclosed sum in 2009,
making it a fully owned subsidiary, subsequently renamed Tata Hispano. In 2013, Tata Hispano
ceased production at its Zaragoza plant.
Jaguar F-Type
Main article: Jaguar Land Rover
Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley, Coventry,
United Kingdom, and has been a wholly owned subsidiary of Tata Motors since June 2008, when
it was acquired from Ford Motor Company of USA. Its principal activity is the development,
manufacture and sale of Jaguar luxury and sports cars and Land Rover premium four-wheel-
drive vehicles.
Jaguar Land Rover has two design centres and three assembly plants in the United Kingdom.
Under Tata ownership, Jaguar Land Rover has launched new vehicles including the Range Rover
Evoque, Jaguar F-Type, the Jaguar XE, the Jaguar XJ (X351), the second-generation Range
Rover Sport, and Jaguar XF, the fourth-generation Land Rover Discovery, Range Rover
Velar and the Range Rover (L405)
TML Drivelines
TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the manufacture of
gear boxes and axles for heavy and medium commercial vehicles. It has production facilities at
Jamshedpur and Lucknow. TML Forge division is also a recent acquisition of TML Drivelines.
TML Drivelines was formed through the merger of HV Transmission and HV Axles .
Tata Technologies
Tata Technologies Limited (TTL) is a 43%-owned subsidiary of Tata Motors which provides
design, engineering, and business process outsourcing services to the automotive industry. It is
headquartered in Pune (Hinjewadi) and also has operations in London, Detroit and Thailand. Its
clients include Ford, General Motors, Honda, and Toyota.
The British engineering and design services company Incat International, which specialises in
engineering and design services and product lifecycle management in the automotive, aerospace,
and engineering sectors, is a wholly owned subsidiary of TTL. It was acquired by TTL in August
2005 for ₹4 billion.
In 2017, TAL, a subsidiary of Tata Motors, manufactured India’s first industrial articulated robot
for micro, small, and medium enterprises.[39]
Tata Ace
o Tata Ace Zip
Tata Super Ace
Tata TL/Telcoline/207 pick-up truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 807 (Steel cabin chassis, cowl chassis, medium bus chassis, steel cabin + steel body
chassis)
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1210 SE and SFC (Semi Forward)
Tata 1210 LP (Long Plate)
Tata 1109 (Intermediate truck/ LCV bus)
Tata 1512c (medium bus chassis)
Tata 1515c/1615 (medium bus chassis)
Tata 1612c/1616c/1618c (heavy bus chassis)
Tata 1618c (semilow-floor bus chassis)
Tata 1623 (rear-engined low-floor bus chassis)
Tata 1518C (Medium truck) 10 ton
Tata 1613/1615c (medium truck)
Tata 1616/1618c (heavy duty truck)
Tata 2515c/2516c,2518c (heavy duty 10 wheeler truck)
Tata Starbus (branded buses for city, intercity, school bus, and standard passenger
transportation)
Tata Divo (Hispano Divo)
Tata CityRide (12- to 20-seater buses for intracity use)
Tata 3015 (heavy truck)
Tata 3118 (heavy truck) (8×2)
Tata 3516 (heavy truck)
Tata 4018 (heavy truck)
Tata 4923 (ultraheavy truck) (6×4)
Tata Novus
Tata Prima
Tata Ultra (ICV Segment)
Tata Winger - Maxivan
Military vehicles
Notable vehicles
Tata Nano
Main article: Tata Nano
Tata Ace, India's first indigenously developed sub-one-ton minitruck, was launched in May
2005. The minitruck was a huge success in India with auto analysts claiming that Ace had
changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a
new market segment termed the small commercial vehicle segment. Ace rapidly emerged as the
first choice for transporters and single truck owners for city and rural transport. By October
2005, LCV sales of Tata Motors had grown by 36.6% to 28,537 units due to the rising demand
for Ace. The Ace was built with a load body produced by Autoline Industries.[54] By 2005,
Autoline was producing 300 load bodies per day for Tata Motors.
Ace is still a top seller for TML with 500,000 units sold by June 2010.[55] In 2011, Tata Motors
invested Rs 1000 crore in Dharwad Plant, Karnataka, with the capacity of 90,000 units annually
and launched two models of 0.5-T capacity as Tata Ace Zip, Magic Iris.[56]
The Tata 407 is a light commercial vehicle (LCV) that has sold over 500,000 units since its
launch in 1986.[58] In India, this vehicle dominates market share of the LCV category, accounting
for close to 75% of LCV sales.
Tata Prima
A Tata Prima 4928.S in Assam,India.
Tata Prima is a range of heavy trucks first introduced in 2008 as the company's 'global'
truck.Tata Prima was the winner of the 'Commercial Vehicle of the Year' at the Apollo
Commercial Vehicles Awards, 2010 and 2012.The 'HCV (Cargo) Truck of the Year,2010' and
the 'HCV (Rigid) Truck of the Year, 2012'. First truck range with Common rail engine,
Automatic transmission, World-class cabin with HVAC, Air suspension driver seats, Data logger
for performance tracking. The trucks have a combined loading capacity of 40 tonnes, ideal for
heavy duty shipment. The interior of the Prima is equipped with modern features like GPS, air
conditioning, 4-way adjustable driver and co-driver seats, etc.
Tata Harrier
Main article: Tata Harrier
Tata Harrier is a 5 seater SUV set to rival the Hyundai Creta and Jeep Compass. It is derived
from the H5X Concept displayed at the 2018 Auto Expo. It was launched in 23rd January 2019.
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives,
senior managers, and marketers devise strategies for future growth. It is named after Russian
American Igor Ansoff, who created the concept.
Use of Ansoff Matrix are:-
Ansoff, in his 1957 paper, provided a definition for product-market strategy as “a joint statement
of a product line and the corresponding set of missions which the products are designed to
fulfil”. He describes four growth alternatives:
Market penetration
In market penetration strategy, the organization tries to grow using its existing offerings
(products and services) in existing markets. In other words, it tries to increase its market share in
current market scenario. This involves increasing market share within existing market segments.
This can be achieved by selling more products or services to established customers or by finding
new customers within existing markets. Here, the company seeks increased sales for its present
products in its present markets through more aggressive promotion and distribution.
This can be accomplished by:
Price decrease
Increase in promotion and distribution support
Acquisition of a rival in the same market
Modest product refinements
Market development
In market development strategy, a firm tries to expand into new markets (geographies, countries
etc.) using its existing offerings and also, with minimal product/services development.
This can be accomplished by:
The firm has a unique product technology it can leverage in the new market
It benefits from economies of scale if it increases output
The new market is not too different from the one it has experience of
The buyers in the market are intrinsically profitable.
Product development
In product development strategy, a company tries to create new products and services targeted at
its existing markets to achieve growth. This involves extending the product range available to the
firm's existing markets. These products may be obtained by:
Cash cows is where a company has high market share in a slow-growing industry. These
units typically generate cash in excess of the amount of cash needed to maintain the business.
They are regarded as staid and boring, in a "mature" market, yet corporations value owning
them due to their cash-generating qualities. They are to be "milked" continuously with as
little investment as possible, since such investment would be wasted in an industry with low
growth.
Dogs, more charitably called pets, are units with low market share in a mature, slow-growing
industry. These units typically "break even", generating barely enough cash to maintain the
business's market share. Though owning a break-even unit provides the social benefit of
providing jobs and possible synergies that assist other business units, from an accounting
point of view such a unit is worthless, not generating cash for the company. They depress a
profitable company's return on assets ratio, used by many investors to judge how well a
company is being managed. Dogs, it is thought, should be sold off.
Question marks (also known as adopted children or Wild dogs) are businesses operating with
a low market share in a high-growth market. They are a starting point for most businesses.
Question marks have a potential to gain market share and become stars, and eventually cash
cows when market growth slows. If question marks do not succeed in becoming a market
leader, then after perhaps years of cash consumption, they will degenerate into dogs when
market growth declines. Question marks must be analyzed carefully in order to determine
whether they are worth the investment required to grow market share.
Stars are units with a high market share in a fast-growing industry. They are
graduated question marks with a market- or niche-leading trajectory, for example: amongst
market share front-runners in a high-growth sector, and/or having a monopolistic or
increasingly dominant unique selling proposition with
burgeoning/fortuitous proposition drive(s) from: novelty, fashion/promotion (e.g. newly
prestigious celebrity-branded fragrances), customer loyalty (e.g. greenfield or military/gang
enforcement backed, and/or innovative, grey-market/illicit retail of addictive drugs, for
instance the British East India Company's, late-1700s opium-based Qianlong Emperor
embargo-busting, Canton System), goodwill (e.g. monopsonies)
and/or gearing (e.g. oligopolies, for instance Portland cement
producers near boomtowns),[citation needed] etc. The hope is that stars become next cash cows.
Stars require high funding to fight competitors and maintain their growth rate. When
industry growth slows, if they remain a niche leader or are amongst the market leaders,
stars become cash cows; otherwise, they become dogs due to low relative market share.
As a particular industry matures and its growth slows, all business units become either cash
cows or dogs. The natural cycle for most business units is that they start as question marks,
then turn into stars. Eventually, the market stops growing; thus, the business unit becomes
a cash cow. At the end of the cycle, the cash cow turns into a dog.
As BCG stated in 1970:
Only a diversified company with a balanced portfolio can use its strengths to truly capitalize
on its growth opportunities. The balanced portfolio has:
stars whose high share and high growth assure the future;
cash cows that supply funds for that future growth; and
question marks to be converted into stars with the added funds.
SWOT Analysis
1. The internationalization strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into the new
market. The benefit is that Tata has been able to exchange expertise. For example after the
Daewoo acquisition the Indian company leaned work discipline and how to get the
final product ‘right first time.’
2. The company has a strategy in place for the next stage of its expansion. Not only is it
focusing upon new products and acquisitions, but it also has a programme
of intensivemanagement development in place in order to establish its leaders for
tomorrow.
3. The company has had a successful alliance with Italian mass producer Fiat since 2006. This
has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge
exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the
companies have an agreement to build a pick-up targeted at Central and South America.
1. 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.
2. Despite buying the Jaguar and Land Rover brands; Tata has not got a foothold in the luxury
car segment in its domestic, Indian market. Is the brand associated with commercial
vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative
segments in a more aspiring India?
3. One weakness which is often not recognized 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
1. In the summer of 2008 Tata Motor’s announced that it had successfully purchased the Land
Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World’s
luxury car brand have been added to its portfolio of brands, and will undoubtedly off the
company the chance to market vehicles in the luxury segments.
2. Tata Motors Limited acquired Daewoo Motor’s Commercial vehicle business in 2004 for
around USD $16 million.
3. Nano is the cheapest car in the World – retailing at little more than a motorbike. Whilst the
World is getting ready for greener alternatives to gas-guzzlers, is Nano the answer in terms
of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85
times more than a standard Nano!
4. The new global track platform is about to be launched from its Korean (previously
Daewoo) plant. Again, at a time when the World is looking for environmentally friendly
transport alternatives, is now the right time to move into this segment? The answer to this
question (and the one above) is that new and emerging industrial nations such as India,
South Korea and China will have a thirst for low-cost passenger and commercial vehicles.
These are the opportunities. However the company has put in place a very proactive
Corporate Social Responsibility (CSR) committee to address potential strategies that will
make is operationsmore sustainable.
5. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly
engines. The bus has optional organic clutch with booster assist and better air intakes that
will reduce fuel consumption by up to 10%.
1. Other competing car manufacturers have been in the passenger car business for 40, 50 or
more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean
production.
2. Sustainability and environmentalism could mean extra costs for this low-cost producer.
This could impact its underpinning competitive advantage. Obviously, as Tata globalises
and buys into other brands this problem could be alleviated.
3. 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. For example ICICI bank and DaimlerChrysler have invested in a new Pune-
based plant which will build 5000 new Mercedes-Benz per annum. Other players
developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In
fact the entire Indian market has become a target for other global competitors
including Maruti Udyog, General Motors, Ford and others.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.
Conclusion
•A n i n d e p e n d e n t s u r v e y n a m e d A s i a n P a i n t s t o b e o n e o f t h e b e s t com
panies in Asia in paint industry and other.
•B u s i n e s s T o d a y s h o w e d t h a t t h e c o m p a n y w a s o n e o f t h e m o
s t transparent and a leader on the issue of innovative methods.
Bibliography
https://www.marketing91.com/swot-tata-motors/
https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix
https://www.slideshare.net/TanyaChaudhary8/tata-motor-66361728
https://en.wikipedia.org/wiki/Ansoff_Matrix
https://en.wikipedia.org/wiki/Tata_Motors
https://m.moneycontrol.com/stock/tatamotors/TM03/financials/balance-sheet
https://www.moneycontrol.com/financials/tata%20motors/consolidated-balance-sheet/TM03