Swot Analysis Tata Motors 5o2u49

SWOT ANALYSIS OF TATA MOTORS

Company Profile • The company was established in 1935 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a t venture with Daimler-Benz AG of . • Ratan N Tata is the chairman of Tata Sons, the Tata promoter company. • Tata Motors Ltd is a multinational corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors has a consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Land Rover in 2008.

Cont… • It is India's largest company in the automobile and commercial vehicle sector with upwards of 70% cumulative market share in the domestic commercial vehicle segment, and had a 0.81% share of the world market in 2007. • Second largest manufacturer of commercial vehicles in the world. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer. In India Tata ranks as the leader in every commercial vehicle segment, and is in the top 3 makers of enger cars

Cont… • The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. • The company's 24,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.“ • Tata Motors is also expanding its international footprint, established through exports since 1961. • Tata Motors is committed to improving the quality of life of communities by working on four thrust areas – employability, education, health and environment.

Tata Motors In India • Tata Motors Limited is India’s largest automobile company, with revenues of 35,651.48 crore (US$ 7.74 billion) in 200708. • The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).

• Following a strategic alliance with Fiat in 2005, it has set up an industrial t venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat).

Cont…. • The company’s dealership, sales, services and spare parts network comprises over 3500 touch points. • Tata has been actively acquiring and t venturing with other companies during the past five years. The purchase of Daewoo Commercial Vehicles (2004), a minority investment in Spanish bus and coach manufacturer Hispano Carrocera (2005), an alliance with Fiat, a t venture with Brazilian bus and coach manufacturer Marcopolo and with Thailand’s Thonburi Automotive Assembly Plant Company (2006).

enger Cars and Utility vehicles • • • • • • • • • • • •

Tata Sumo/Spacio Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria

Commercial vehicles • • • • • • • • • • • • •

Tata Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1610/1623 (Rear Engined Low Floor bus chassis) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck)

Cont… • Tata Starbus (Branded Buses for city,inter city,school bus and standard enger transportation) • Tata Globus (Range of fully built luxury coaches) • Tata Hispano Globus (Rear Engined Inter city coach) • Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid Transit and also standard enger transportation Buses) • Tata 3015 (Heavy truck) • Tata 3118 (Heavy truck) (8X2) • Tata 3516 (Heavy truck)

Cont… • • • •

Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Strengths • TATA motors is market leader in Automobile Industry with high market share. • TATA Motors Company have huge employee base. • TATA motors employee productivity percentage is higher. • TATA motors produce low price car with low fuel consumption.

• TATA motors is the reputable brand in Indian Industry. • TATA Motors Limited is India’s largest automobile company, with revenues of Rs. 92,519 crores (USD 20 billion) in 200910.

Cont… • The research and development department of TATA motors is very strong. • TATA’s management is strengthened by the collective experience of its partners and acquired companies – this includes general management, marketing, sales and operations. • TATA Motors has been aggressively acquiring foreign brands to increase its global presence. • TATA motors posses High corporate responsibility.

Weaknesses • One weakness which is often not recognised 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. • The company's enger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. • Return on Investment on TATA motors shares in low.

Cont…. • Tata has not got a foothold in the luxury car segment in its domestic market. • The Company’s manufacturing practices trail competitors. • Most of the automobiles Tata manufactures are based on older platforms.

Opportunities • TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power. • t ventures in other countries allow TATA motors to easily enter into new market. • TATA motors should focus in developing luxury cards. • Nano is the cheapest car in the World - retailing at little more than a motorbike.

Cont…. • The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. • Emerging industrial nations such as India, South Korea and China will have a thirst for low-cost,environmentally friendly enger and commercial vehicles. • The company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable.

Cont…. • Increase its product line in light & heavy vehicle. So that it can encash on its Brand image. • The Company can work on its big product range with environment friendly Technology. • The Company should focus on both enger & Commercial Vehicle for improving its Design (interior & exterior) & Quality of Fiber.

Threats • Competing car manufacturers have been in the enger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in of quality and lean production. • 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. • 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.

Cont.. • TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage. • Pakistan’s Transmission Motor Company has built a basic fourwheeler for only $2,100. This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile. • The low safety standards can impact the sales. • Powerful competitors for the luxury market including Honda, Toyota, Ford and Mercedes-Benz are beginning to push into the Indian market

References & Sources • • • •

Tata Motors' Official Website Wiki - Tata Motors Ltd. Business Today - Pick and Choose Business Today - Tata Motors to bring Jaguar, Land Rover to India