General Management Project

On
“EIC Analysis of Automobile Sector in India.”
Submitted in partial fulfilment for the award of the degree of

Master of Management Studies (MMS)

(Under University of Mumbai)

Submitted By

Divya Jayesh Chauhan

(20211002)

Under the guidance of

Dr. Shailja Badra
 CERTIFICATE

This is to certify that project titled “EIC Analysis of Automobile Sector in

India” which is successfully completed by Ms. Divya Chauhan during the IV
Semester, in partial fulfilment of the Master’s in Management Studies
recognized by the University of Mumbai for the Year 2021-23 through
Durgadevi Saraf Institute of Management, Malad (W). This project work is
original and not submitted earlier for the award of any degree/diploma or
associates ship of any other University/Institute.

Name: Dr. Shailja Badra

Date:

(Signature of the Guide)

 DECLARATION

I hereby declare that this Project Report submitted by me to the “Durgadevi Saraf Institute of
Management Studies” is a bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma/ certificate or published any time
before.

Name: Divya Jayesh Chauhan

Date:

Signature of the Student

 ACKNOWLEDGEMENT

It gives me an immense pleasure to thank all the people who have helped
me to develop my final year project. So, I would like to take a moment to
acknowledge various individuals who contributed their talent and expertise
in making this project report successful. I am thankful to Dr. C. Babu,
Director, Durgadevi Saraf Institute of Management Studies, for his kind
support and assistance whenever and wherever needed. I extend my sincere
thanks to Dr. Shailja Badra for having spared his valuable time with me and
for all the guidance given in executing the project as per requirements.
Finally, thanks to my parents and friends for their active patience and
persistence.
 INDEX
Sr. No Topic Pg. No

1 Economy Analysis 1

1.1 Introduction 1

1.2 Market Size 1

1.3 Road Ahead 2

1.4 Recent Development 2

1.5 Government Initiatives 3

2 Industry Analysis 6

2.1 PESTEL Analysis 6

2.2 Product Portfolio of Different Automobile Companies 9

2.3 Porter’s Five Forces 10

3 Company Analysis: Tata Motors Ltd: Connecting Aspirations 14

3.1 SWOT Analysis 16

3.2 Peer Comparison 19

3.3 Product Portfolio: Tata Motors Ltd 20

3.4 Road Ahead 21

4 Conclusion 23
Chapter 1: Economy Analysis:

1.1 Introduction

Since the country's car industry is essential to both macroeconomic extension and innovative
headway, it has generally been a solid gauge of how the Indian economy is performing. Because of
India's huge extent of youngsters and extending working class, the bike class overwhelms the
business with regards to volume. Likewise, the extending revenue of organizations in examining the
country markets added to the area's development. The interest for business vehicles is ascending
because of growing traveler and coordinated factors areas. Recent fads, like the jolt of vehicles,
particularly three-wheelers and little traveler vehicles, are supposed to fuel market extension later on.

India is the world's biggest farm hauler creator, second biggest transport maker, and third biggest
maker of weighty trucks, giving it a critical situation on the lookout for weighty vehicles. In FY22,
22.93 million autos were delivered every year in India.

India is a critical exporter of vehicles and expects fast product improvement in the close to term.
Furthermore, various government-supported programs, including the Car Mission Plan 2026, the
scrappage strategy, and the creation connected motivating force program in the Indian market, are
expected to raise India to a place of noticeable quality in the worldwide two-and four-wheeler
markets by 2022.

1.2 Market Size

 The market for traveler vehicles in India was assessed at US$ 32.70 billion of every 2021,
and by 2027, it is expected to have developed to US$ 54.84 billion, with a CAGR of almost
9%.
 By 2025, it is anticipated that India's electric vehicle (EV) market will be worth Rs. 50,000
crore (US$ 7.09 billion). As per a CEEW Community for Energy Money report, India could
have a US$206 billion market for electric vehicles by 2030. This will require putting US$
180 billion in framework for auto creation.
 NITI Aayog and the Rough Mountain Establishment (RMI) gauge that by 2030, the Indian
EV finance market will probably be worth Rs. 3.7 lakh crore (US$ 50 billion). As per a report
by the India Energy Stockpiling Collusion, the country's EV industry is expected to develop
at a CAGR of 36% until 2026. Likewise, it is guessed that inside a similar time span, the EV
battery market will develop at a CAGR of 30%.
 The Indian vehicle area plans to five-crease its vehicle sends out somewhere in the range of
2016 and 2026. The complete number of cars traded from India in FY22 was 5,617,244.
1
 1.3 Road Ahead:
 The accessibility of skilled work at sensible costs, solid Research and development offices,
and reasonable steel fabricating are a couple of the components that impact the vehicle
business. The area offers incredible opportunities for venture as well as immediate and
aberrant work for both talented and untalented work. By 2030, the electric vehicle industry is
expected to create five crore occupations.
 The Indian government presented the country's most memorable two layer electric transport
in Mumbai in August 2022. The public authority accepts that modernizing the country's
transportation framework is essential over the long haul. With an accentuation on
metropolitan transportation change, it is attempting to foster a coordinated electric vehicle
(EV) portability environment with a low carbon impression and high traveler thickness.
Because of rising public interest for all the more harmless to the ecosystem transportation
choices, the public authority's approach and strategies are intended to support more extensive
reception of electric vehicles.
 By 2023, the Indian government guesses that the vehicle business would get $8-10 billion in
homegrown and unfamiliar ventures. By 2030, India may be a worldwide innovator in shared
transportation, opening entryways for electric and driverless vehicles.

1.4 Recent Developments:

Some of the recent/planned investments and developments in the automobile sector in India are as
follows:

 Maruti Suzuki India stated in November 2022 that it intended to invest about Rs. 7,000 crore
(US$ 865.12 million) in a range of projects this year, including the construction of its new
factory in Haryana and the launch of new models.
 2,191,090 units of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles were
produced in total as of October 2022.
 With 136,700 units sold in October 2022, Maruti Suzuki was India's top automaker.
 Hero MotoCorp had the biggest two-wheeler sales in the market in October 2022 with 507,587
units sold, giving it a market share of 32.31%.
 Maruti Suzuki introduced the Grand Vitara in September 2022, with a starting price of Rs.
10.45 lakh ($12,915).
 Hero MotoCorp announced in September 2022 that it will invest US$60 million in California-
based Zero Motorcycles in order to work together on the creation of electric motorcycles.
2
  Tata Motors announced plans to invest Rs. 24,000 crore ($3.08 billion) over the following five
years in its passenger vehicle division in April 2022
 SAIC Motor Corp. of China, which owns MG Motors, revealed plans to raise US$ 350-500
million in private equity in India in March 2022 to pay for the company's future needs, which
include expanding into electric vehicles.
 A memorandum of understanding (MoU) for the installation of 1,000 fast charging stations
across the state of Karnataka was signed in February 2022 by the electric two-wheeler
manufacturer Ather Energy and the state's electric supply companies (ESCOMs).
 Tata Power and Apollo Tyres Ltd. established a strategic agreement in February 2022 for the
construction of 150 public charging stations around India.
 To increase its EV manufacturing capacity, two-wheeler EV manufacturer HOP Electric
Mobility, a diversified business venture of Rays Power Infra, plans to invest Rs. 100 crore (US$
13.24 million) during the next two years.

 The amount of money invested in EV start-ups reached a record high in 2021, rising by
approximately 255% to reach Rs. 3,307 crore (US$ 444 million).

 TVS Motor Corporation and BMW Motorrad announced a collaboration in the two-wheeler
electric vehicle market in December 2021, with ambitions to release their first electric two-
wheeler within the next two years.

 Hyundai announced plans to invest Rs. 4,000 crores (US$ 530.25 million) in R&D in India in
December 2021, with the aim of releasing six EVs by that year. To achieve India's EV goals, a
cumulative expenditure of Rs 12.5 trillion (US$ 180 billion) in vehicle manufacturing and
charging infrastructure would be needed until 2030.

Government Initiatives:

 The Indian government supports foreign investment in the auto industry and has authorised
100% FDI under the automatic method. The Indian government has recently taken a number
of initiatives, including:

3
 The government changed the National Policy on Biofuels – 2018 in July 2022. The deadline
for blending 5% biodiesel and 20% ethanol into gasoline by 2030 was pushed back to 2025–
2026.

 As of July 15, 2022, oil firms operating under the Ministry of Petroleum and Natural Gas had
established a total of 532 EV charging stations under the FAME India Programme I & II
(MoPNG).

 Mr. Nitin Gadkari, Minister of Road Transport and Highways, announced plans to launch
Bharat NCAP, India's own programme for evaluating car safety, in February 2022.

 As part of the government's strategy to boost domestic vehicle production and draw in new
investment, 20 automakers, including Tata Motors Ltd, Suzuki Motor Gujarat, Mahindra &
Mahindra, Hyundai, and Kia India Pvt. Ltd., were chosen to receive production-linked
incentives (PLI) in February 2022.

 The 20 automakers have suggested an investment of about Rs. 45,000 crore ($5.95 billion)
overall.

 The following projects were outlined by the government in the Union Budget 2022–2023:

 To make EVs more appealing to potential buyers, the government implemented a battery-
swapping policy that will allow depleted batteries to be switched out for charged ones at
specific charging stations.

 The Prime Minister's Gati Shakti Plan would add 25,000 kilometres to India's national
highways between 2022 and 2023.

 Under the PLI programme for automobiles, the Union Government added more than 100
cutting-edge technologies in November 2021, including alternative fuel systems like

4
 compressed natural gas (CNG), Bharat Stage VI compliant flex fuel engines, electronic control
units (ECU) for safety, advanced driver assistance systems, and e-quadricycles.
 After receiving the necessary approvals from the Supreme Court of India, the government
intends to make it essential for automobile manufacturers to create flex-fuel engines, according
to an announcement made by Mr. Nitin Gadkari, Minister of Road Transport and Highways, in
September 2021.
 The Indian government announced a PLI programme in September 2021 for vehicles and auto
parts valued at Rs. 25,938 crore ($3.49 billion). By 2026, this programme is projected to attract
investments totaling more than Rs. 42,500 ($5.74 billion) and generate 7.5 lakh new
employment in India.
 The Vehicle Scrappage Policy, introduced by Prime Minister Mr. Narendra Modi in August
2021, aims to gradually phase out obsolete, environmentally hazardous automobiles.
 Incentives of US$ 3.5 billion are proposed by the Indian government as part of a revised
programme to promote the production and export of clean technology vehicles over a five-year
period until 2026.
 India opened the NATRAX, the fifth-largest high-speed track in the world and the longest in
Asia, in July 2021.
 As of June 2021, the FAME-II programme had spent Rs. 871 crore (US$ 117 million),
supported 87,659 electric automobiles through incentives, and approved 6,265 electric buses
for various state/city transportation projects.

5
Chapter 2: Industry Analysis:

2.1 PESTEL analysis of the Automobie industry

Despite the fact that cars have been around for more than 150 years, it has only been recently that we
have become aware of the alarming environmental effects of the automobile sector.

Political

Here are the Political factors affecting the automotive industry:

Safety Regulations

Driving a car can be incredibly risky. Although we like to think of aeroplanes as being dangerous, the
likelihood of getting in a vehicle or motorbike accident is much higher than that of being in a plane
crash.

As a result, governments all over the world impose stringent safety standards on the automobile sector.
These laws not only set down particular standards for the construction of motor vehicles, such as
seatbelts to guarantee passenger safety, but they also have an impact on those who operate them. This
makes it more challenging to start a new company in the automotive industry, assisting established
firms in keeping their market share. You may get the best services by requesting SR22 quotations, and
roadside assistance may prove to be crucial for safety.

Emissions Policies

Politicians are very interested in the effects that automobiles have on the environment in addition to
regulating the safety-related aspects of the automotive sector. The majority of automobiles,
motorcycles, and buses are propelled by fossil fuels like diesel and petroleum, which when burned,
release a number of harmful pollutants into the atmosphere. The amount of carbon dioxide created by
driving a car, or carbon emissions, is a serious issue with motor vehicles. Governments are therefore
very interested in the emissions data for both new and used automobiles. This is just another legal
hurdle that automakers must clear in addition to other environmental worries.

6
Economic

Here are the Economic factors affecting the automotive industry:

Growing Disposable Incomes

Globally speaking, people are making an increasing amount of money each year. This implies that
they have more money to spend on expensive products like electronics and, obviously, cars! So, it is
not surprising that demand for automobiles is steadily rising. This is particularly true in emerging
nations, like several governments in Africa, where recent economic progress has only recently made
it possible for lower-income households to acquire their own car. In the end, more cars will be sold
as a result of the rising demand for motor vehicles, boosting profits for those working in the sector.

Sociocultural

Here are the Sociocultural factors affecting the automotive industry:

Popularity of Driving

There is no denying that driving is becoming more and more popular from a sociocultural standpoint.
Families all over the world are increasingly likely to own one or more cars; in fact, owning one or
more cars is already the standard in industrialised nations like the United States, Canada, and a large
portion of the European Union. It's not like most of us can't get by on bicycles and buses; rather, we
choose to drive motor cars just because that's what is expected of us, and that's part of the problem.

Technological

Here are the Technological factors affecting the automotive industry:

7
Self-Driving Cars

The development of self-driving technology is without a doubt the most significant technological
change to affect the car industry. A significant shift in how we commute is coming, with some
automakers, like Tesla, already providing vehicles that are almost entirely driverless. The automobile
sector may not inherently benefit or suffer from this, but conventional vehicle makers may need to
adjust their business plans in order to remain competitive.

Improved Safety

A significant technological development in the automotive sector, aside from the introduction of self-
driving automobiles, is the safety of motor vehicles in general. Wearing seat belts wasn't made
mandatory until the 1980s, and lower-end automakers didn't start installing airbags in all of their
vehicles until the early 2000s. Industry-wide standards are rising, and the underlying technology is as
well. Recently, automakers have started equipping their vehicles with emergency braking assist
systems, greatly reducing the possibility of front-end collisions.

Legal

Here are the Legal factors affecting the automotive industry:

Copyright Issues

Curiously, the question of copyright also impacts the automotive business. Copyright, trademark, and
patent laws may provide protection for specific aspects of a car, including its branding and even its
shape. Although you don't hear much about legal battles in the auto industry, they do happen.
Chinese automakers openly copying the designs of their Western competitors has become a growing
problem in recent years. For instance, there has been significant contention over some suspiciously
similar Rolls Royce Phantom replicas made by the Chinese company Geely. Although the overall
impact of this copying on the sector is unknown, it is undoubtedly a problem.

Environmental

Here are the Environmental factors affecting the automotive industry:

Carbon Emissions

As was mentioned previously, one of the most harmful environmental pollutants produced
by the automotive industry is carbon dioxide. Using the greenhouse effect, it has a significant
8
impact on the global climate. The problem of carbon emissions has become more widely
known in recent years. We still use motor cars on a daily basis, but it's unclear if governments
will be compelled to take stronger action to combat global warming. This could mean
outlawing the use or production of all motor vehicles, or at the very least shifting to electric
ones.

For many of us, driving a car is now a part of daily life. We are implicitly expected to use
cars, and we can now afford to buy and fuel them more than ever before. The environmental
costs of driving, however, are significant, and it appears that switching to electric vehicles
may be necessary to protect the environment.

2.2 Product Portfolio of Different Automobile Companies

Table 2.2.1: Product Portfolio of Maruti Suzuki India

Sr No. Products

1 Motorcycles

2 Three Wheelers

3 Four Wheelers

4 Scooters

Table 2.2.2: Product Portfolio of Mahindra and Mahindra Ltd

Sr No. Products

1 Trucks

2 Pickup Vehicles

3 SUV’s

4 Three Wheelers

9
 5 Four Wheelers

Table 2.2.3: Product Portfolio of Eicher Motors Ltd

Sr No. Products

1 Trucks

2 Buses

3 Motorcycles

4 Automotive Gears

5 Other Components

2.3 Porter’s 5 forces

These forces act together to impact the overall profitability of any company.

1. Threat of New Entrant

2. Bargaining Power of Supplier

3. Bargaining Power of Buyer

4. Threat of Substitute

5. Competitive Rivalry

10
Threats of New Entrants

Newcomers in the Automotive Industry - By using a reduced pricing strategy, cutting costs, and
presenting new value propositions to the market, Major brings innovation and new ways of doing
things while applying pressure to Tata Motors Ltd. To maintain its competitive edge, Tata Motors Ltd
must overcome all of these obstacles and erect strong barriers.

How Tata Motors Limited can tackle the Threats of New Entrants

 By developing fresh goods and services. Innovative products not only attract new customers
but also give existing customers an incentive to continue purchasing from Tata Motors Ltd.
 By establishing economies of scale to reduce the fixed cost per unit.
 Increasing resources and funding for research and development. In a competitive market
where established competitors like Tata Motors Limited constantly set the norms, new
entrants are less likely to join. It greatly reduces the window of remarkable earnings for new
businesses, discouraging them from entering the market.

Bargaining Power of Suppliers

The majority of businesses in the Car Manufacturers - Large sector purchase their raw
materials from a variety of sources. Suppliers with a monopoly position can limit the market
margins Tata Motors Limited can make. Strong consumer goods suppliers use their
negotiation position to pressure major auto manufacturers to accept higher costs. Higher
supplier negotiating power generally has the effect of decreasing overall profitability for Car
Manufacturers - Major.
How Tata Motors Limited can tackle Bargaining Power of the Suppliers

 By creating an effective supply chain with a variety of suppliers;

 By experimenting with product designs utilising various materials so that the company can
switch to another if the price of one raw material increases.
 creating devoted suppliers whose businesses rely on the company. One of the things Tata
Motors Limited can learn from Nike and Wal-Mart is how these firms created third-party
manufacturers whose business depends entirely on them, creating a situation where these

11
 third-party manufacturers have substantially less negotiating leverage than Nike and Wal-
Mart.

Bargaining Power of Buyers

Buyers can be a picky bunch. People want to spend as little money as they can while purchasing the
best products. Long-term profitability for Tata Motors Ltd was impacted by this. Tata Motors
Limited's clients have greater negotiating power and are better able to demand rising discounts and
incentives as their customer base becomes more exclusive and powerful.

How Tata Motors Limited can tackle the Bargaining Power of Buyers

 By establishing a sizable consumer base. In two ways, this will be advantageous. Buyer
bargaining strength will be lessened, and the company will have the chance to streamline its
sales and production procedures.
 By creating fresh things quickly. Consumers frequently seek offers and discounts on well-
known products, thus if Tata Motors Limited keeps developing new products, it may reduce
customers' ability to negotiate. The introduction of new models will also stop existing Tata
Motors Limited customers from switching to its rivals

Threats of Substitute Products or Services

Industry profitability decreases when a new good or service satisfies a comparable client need in a
different way. Hardware storage drives can be replaced with services like Dropbox and Google
Drive. Whenever a substitute product or service offers a value proposition that is significantly
different from the current offerings in the market, it poses a serious threat.

12
How Tata Motors Limited can tackle the Treat of Substitute Products / Services

 By focusing on services as opposed to just products.

 By focusing on the customer's fundamental needs rather than what they are purchasing.

 By making it more expensive for customers to switch brands.

Rivalry among the Existing Competitors

Price reductions and a decline in the industry's overall profitability will result from fierce competition
among the existing companies. Tata Motors Ltd competes fiercely in the Car Manufacturers - Large
sector of the market. The total long-term profitability of the company is affected by this competition.

How Tata Motors Limited can tackle Intense Rivalry among the Existing Competitors in Auto
Manufacturers - Major industry

 By creating a long-lasting distinction

 By gaining scale, it can compete more effectively. It can also work with rivals to expand the
market rather than just competing for a small market.

13
Chapter 3: Company Analysis: Tata Motors Ltd: Connecting Aspirations

Mission: across our globally dispersed organisation – is to be passionate in anticipating and

providing the best vehicles and experiences that excite our global customers.

Tata motors is essential for the $37 billion Tata Motors Gathering. It is a notable worldwide maker of
vehicles. A wide assortment of vehicles, sports utility vehicles, trucks, transports, and guard vehicles
are remembered for its shifted portfolio. One of India's driving OEMs, Tata Motors gives a wide cluster
of incorporated, brilliant, and e-portability arrangements.

Tata Motors, one of the top automakers on the planet, is an individual from the USD128 billion Tata
bunch, which Jamsetji Tata established in 1868. By giving state of the art versatility arrangements that
help purchasers' yearnings, we stick to the way of thinking of "Associating Desires." With the
presentation of bleeding edge powertrains and electric arrangements bundled for power exhibitions
and client solace at the most reduced life-cycle costs, we — biggest India's automaker — keep on
starting to lead the pack in shaping the Indian business vehicle scene. In view of Effect Plan, our new
traveler vehicles and utility vehicles give an excellent combination of execution, driveability, and
association.

14
Fig 3.1 Board of Directors of Tata Motors Ltd

15
 3.2 SWOT Analysis for Dr. Reddy’s laboratories

Fig 3.2.1: SWOT Analysis of Tata Motors Ltd

1. Strengths of Tata Motors

Recognized Brand Image:- TATA MOTORS is a notable car brand on a worldwide scale. The
business offers its own vehicles under an assortment of brand names, including Puma Land Wanderer,
Tata Hitachi, Tata Daewoo, and Tata Marcopolo. This has helped the organization's image worth and
brand picture as well as extending the organization's market.

Market value:- As per Forbes, Tata Motors would have a market worth of 4.5 billion bucks in 2021.
In 2020, they held the 1037th spot among the Worldwide 2000 top enterprises.

Established Distribution System:- 90% of the nation's locale are adjusted by the in excess of 1600
studios that make up Tata Motors' worldwide appropriation organization. The organization's dynamic
production network structure is exhibited by the presence of assembling offices in numerous countries.

Market Penetration:- An upper hand given by a laid out conveyance foundation supports market
infiltration. Taxis, which additionally offer key administrations like vehicle rentals, have helped the
business broaden and extend its customer base.

16
 Research and Development:- Around 23% of the organization's absolute spending plan is designated
to Research and development. It exhibits the organization's obligation to development and efficiency.
In addition, Tata Motors keeps up with research offices in the UK, India, Spain, and South Korea.

 International Presence:- Tata Motors is running its business in more than 125 countries globally

2. Weaknesses of Tata Motors

Greater operational costs and a lower rate of profits:- Although the firm gained fruitful brands like
Puma and Land Meanderer in the early years, doing so made the organization more dependent on its
auxiliaries. The organization's general deals and benefit tumbled from the past five years subsequently.

Controversies:- The organization began building the Goodbye Nano in India, Singur, and West
Bengal back in 2008. Under the Land Procurement Act 1894, the West Bengal government mediated
around then and took responsibility for land where the firm wanted to build a plant. This happened
because of West Bengal's craving for Tata Motors to lay out a business there.

No Foothold in Luxury Segment:- Tata Motors is as yet experiencing difficulty becoming well
known in the extravagance area, where overall revenues are higher.

Limited Presence:- Tata Motors is a worldwide organization that works in excess of 125 countries,
as we have seen. Be that as it may, the business didn't have similar impact as its adversary
organizations, like Passage, Toyota, Honda, and VW.

3. Opportunit ies of Tata Motors

Digital Marketing:- We are know about the expressions utilized in computerized advertising and the
benefits of doing as such. Practically all notable brands and organizations utilize web-based
entertainment to cooperate with their objective market. To connect more with its main interest group,
Tata Motors ought to expand the utilization of all online entertainment stages. It will empower the
business to assemble valuable input for improving its labor and products.

Tata Nano:- Regardless of Goodbye Nano being the most reasonable vehicle available, it was
anything but a major outcome in India and was ceased by 2018. Regardless, the business could in any
case involve this model in different countries to test its suitability.

17
The Supply Chain and Service:- The organization's conveyance organization and production
network framework ought to be extended in its ongoing business sector if it has any desire to
additionally foster its market.

Acquisition, Merger, Joint Venturing:- Since it as of now has notable brands like Puma, Daewoo,
Hitachi, and so on, the business has profited from this before. The business ought to keep applying
similar technique to its different brands. Subsequently, the organization's deals and productivity will
move along.

4. Threats to Tata Motors

Pandemic:- Around the world, the pandemic was lethal to wellbeing as well as to the economy.
Numerous organizations left business and many individuals lost their positions because of the
pandemic. The danger of pandemic will continuously be huge for all undertakings and organizations
around the world.
Competitors:- Significant contenders of Tata Motors incorporate Tesla, Honda, Hyundai, BMW, and
others. Lower portion of the overall industry for the organization is the result of client market extension
and contender piece of the pie increment.

Price:- Considering that they give the most up to date state of the art plans and elements at more
affordable expenses, the adversaries are continually in cost fight with Tata Motors. It thus influences
Tata Motors' deals and benefit.

Innovation of Competitors:- Their adversaries appreciate more prominent admittance to educated

work force and assets, which empowers them to foster state of the art items with prevalent designing
in this area. Advancement is one of the dangers to the business but at the same time is useful for modern
advancement.

18
 3.2 Peer comparison

Some peers of Tata Motors Ltd

 Maruti Suzuki India Ltd

 Mahindra & Mahindra Ltd
 Bajaj Auto Ltd
 Eicher Motors Ltd

Table 4.1 Peer Comparison of Automobile Companies

Market Capitalization (in Crs) Sales QTR (in Crs)

1. Maruti Suzuki India Ltd(248558) 1. Maruti Suzuki India Ltd(27849)

2. Tata Motors Ltd (147666) 2. Mahindra & Mahindra Ltd (21653)

3. Mahindra & Mahindra Ltd (144268) 3. Tata Motors Ltd (15693)

4. Bajaj Auto Ltd (110535) 4. Bajaj Auto Ltd (9047)

5. Eicher Motors Ltd (80249) 5. Eicher Motors Ltd (3546)

Net Profit per QTR (in Crs) P/E Ratio

1. Maruti Suzuki India Ltd (2351) 1. Maruti Suzuki India Ltd(34.22)

2. Mahindra & Mahindra Ltd (1528) 2. Eicher Motors Ltd (33.04)

3. Bajaj Auto Ltd (1491) 3. Mahindra & Mahindra Ltd (21.03)

4. Eicher Motors Ltd (680) 4. Bajaj Auto Ltd (20.39)

5. Tata Motors Ltd (506) 5. Tata Motors Ltd (-32.87)

19
Product Portfolio:

Table 3.3.1: Product Portfolio of Tata Motors Ltd

Sr No. Product Name

1 Automobile

2 Luxury Vehicles

3 Commercial Vehicles

4 Automotive Parts

5 Pickup Trucks

6 SUV’s

Table 3.3.2: Mergers and Acquisition Activities Tata Motors

Tata Motors has bought two businesses.

The greatest transaction made by Tata Motors to date was the $2.3 billion purchase of Jaguar Land
Rover. Tata Motors has acquired properties in two nations and one US state. Automotive (50%) and
financial services (50%) are the two industries primarily targeted by the company.

20
 3.2 Road Ahead for Tata Motors Ltd:

For Tata Motors, especially in the Indian passenger vehicle market, where TPG has committed over
$1 billion or Rs. 7,500 crore in the electric vehicle segment, FY23 and FY21 might be very important
years. Thus, let's continue and talk about some of the ambitions for Tata Motors in this post.

Q3FY22 Highlights:

 By defeating Hyundai in Q3FY22, Tata Motors rose to the position of second-largest

manufacturer of utility vehicles (UVs).
 In the utility vehicle market, Tata Motors presently ranks second with an 18% market share,
trailing only Maruti Suzuki.
 When compared to other vehicles like sedans, etc., the UVs business is expanding quickly in
the passenger vehicle market.
 After Maruti Suzuki and Hyundai, Tata Motors is now the third-largest firm in the total
Passenger Vehicles category with a market share of 13%.
 In 9MFY22, the revenue of the company from Passenger Vehicles is Rs. 22,000 Cr. and the
same was Rs. 8,600 Cr. in Q3FY22 itself. Here, the company targets to generate revenue
between Rs. 12,000 Cr. to Rs. 13,000 Cr. per quarter.
 Tata Motors sold 28,108 SUVs in the third quarter of FY22, the most ever. In addition, the
business sold 2,892 electric vehicle (EV) units, or around 10% of all SUV sales.
 Despite being a late starter in the CNG car launch, the company sold 3,000 units within a few
weeks of going on sale thanks to a solid distribution network.

Medium to Long Term Plans of Tata Motors:

 The firm aims to sell 20% CNG vehicles, 20% electric vehicles, roughly 50% gasoline
vehicles, and the remaining 10% diesel vehicles out of every 100 vehicles sold during the
next three to five years.
 The company is currently selling 94% to 95% gasoline-powered vehicles.
 The business also aims to concentrate on boosting the sales of CNG automobiles by
exploiting the robust distribution network of natural gas companies.
 The company plans to sell 3.7 lakh units in FY22, which appears to be a straightforward goal
for the business. If this occurs, there will be a 65% YoY rise in the number of units sold

21
Targets of the Company for FY23

The company wants to sell 5,000 units in FY23.

In addition, the corporation has requested that its component suppliers be prepared to produce
6,00,000 units.

Additionally, the company aims to sell 50,000 devices every month in order to meet its FY23 sales
goal of around 6,00,000.

If the intended product is produced, the company might generate income of between Rs. 50,000 and
Rs. 60,000 Cr., which would represent an increase of between 80% and 95% over FY21 revenue
(annualized).

22
Chapter 5: Conclusion

We can get the conclusion that Tata Motors is the top vehicle manufacturer in the world based on
this in-depth analysis of the company. The company's prestigious market worth, extensive
distribution network, and potent research and development have earned it a respected position in the
automotive sector. They need to work on getting a footing in premium cars if they want to maintain
their market position. Potential acquisitions, more competitive pricing, and effective digital
marketing will all be very beneficial.

The versatility, affordability, and extensive reach of digital marketing tools like SEO, SMM, media
tactics, SEM, and others can benefit Tata Motors. Developing the necessary digital marketing
abilities and finishing certified courses may open up job prospects with major tech businesses like
Tata Motors.

23
References:

https://www.tatamotors.com/

https://www.ibef.org/industry/india-automobiles

https://www.startus-insights.com/innovators-guide/automotive-industry-trends-10-innovations-
that-will-impact-automotive-companies-in-2020-beyond/

https://en.wikipedia.org/wiki/Tata_Motors

https://www.marutisuzuki.com/

https://www.mahindra.com/investor-relations/reports

https://www.eiche

24
25