2.

0 Situational Analysis for Tata Motors

2.1 Company Situation for Tata Motors

2.1.1 Mission Statement for Tata Motors

The primary mission of Tata Motors is to achieve success by innovating, with passion, the
creation of mobility solutions with the aim of enhancing the quality of life of people (Tata
Motors, 2017).

2.1.2 Business Performance for Tata Motors: Sales Growth and Market Share

The sales growth of Tata Motors is first discussed. It seems that the total sales of Tata Motors
passenger and commercial vehicle for year 2016 were at 40,944 vehicles, and this is a 2%
growth in comparison to the previous year (Tata Motors, 2016). In terms of its domestic sales
of Tatas commercial and passenger vehicles, there was a growth of 1% in 2016 as compared
to year 2015 (Tata Motors, 2016). The cumulative sales together with exports of Tata for
2016 recorded a 7% increase in comparison to the previous year. The companys sales from
exports recorded a 12% growth in contrast to 2015. The cumulative sales from the companys
exports for 2016 has increased by 19%, in comparison to 2015 (Tata Motors, 2016). In
summary, the companys passenger vehicle segment had grown by 35% because of the
positive response for the Tata Tiago. In addition, the exports of the company had grown at
12% in 2016 and this was on the account of very high demand for Tatas commercial
vehicles. The companys bus segment achieved a sales growth of 59% and this is mainly
because of the Government/STU, Intercity and staff application segments (Tata Motors,
2016).

The market share growth of Tata Motors is now discussed. Tata Motors has managed to
record sales of around 511,931 vehicles in 2016 and this is a growth of 1.5% in contrast to
year 2015 (Tata Motors, 2016). The Indian automobile industry had grown by 8% in 2016
and this had resulted in the market share of Tata decreasing to 13.1% in 2016 from 14.1% in
2015. In the commercial vehicle segment, Tata was able to maintain a very strong market
share of 56% in this periocular category (Tata Motors, 2016). On the other hand, in the
company's passenger vehicles segment, the total amount of sales reduced by 7.0% at 127,118
vehicles and it registered a market share of 4.6% (Tata Motors, 2016). In the international
markets, it is found that Tata Motors was able to enjoy high growth of its market share in its
key markets which include Sri Lanka, Nepal, Kenya, Congo, Ghana and Senegal (Tata
Motors, 2016).

2.2 Market Situation for Tata Motors

2.2.1 Target Customers of Tata Motors

Tata has two main target customer segments which it markets its vehicles to. The first set of
target customers are low income families and individuals that want to purchase their first car
(Veterans Today, 2017). This particular target customer group are usually from developing
countries like China and India. The company offers models like the Nano and the Indica. It is
also observed that this particular target customer segment is the main focus of the Tata
company (Veterans Today, 2017). The next target customer segment are customers that come
from the opposite side of the economic spectrum. Essentially speaking, this target customer
segment consists of wealthy individuals and families that are wanting to purchase luxurious
cars (Veterans Today, 2017). It is learnt that Tata targets this group of customers with their
offerings such as the Land Rover and also the Jaguar lines. These are very highly recognized
and well respected brand names of vehicles that were acquired by Tata from the Ford Motor
company in year 2008 (Veterans Today, 2017).

2.2.2 Products of Tata Motors

The Tata Motor company is known to have a very large and impressive product line. The
company produces a wide range of commercial vehicles which include pick-ups, buses,
heavy duty trucks and racing trucks (Tata Motors, 2017). It also produces military vehicles
that comprise of light special vehicles, armoured fighting vehicles and infantry main combat
vehicles (Tata Motors, 2017). Tata also produces electric vehicles. The company has
introduced an electric version of the Tata Indica passenger car that is powered by TM4
electric motors and inverters. It also has the Tata Ace commercial vehicle that function on
lithium batteries (Tata Motors, 2017).

2.2.3 Distributor Analysis for Tata Motors

Tatas distribution network originally consisted of 1,500 sales outlets for the companys
passenger and commercial vehicle segment (Wikinvest, 2017). However, the company has
created a 100% subsidiary known as TML Distribution Company which is meant to act a
dedicated logistics management company which would support the companys distribution
operations in India (Wikinvest, 2017). This distribution strategy is said to help Tata enhance
the overall efficiency its sales and distribution operations and processes. In essence, TMLD
would take over and it would start to set up stocking points for Tatas commercial vehicles
and also its passenger vehicles, in manufacturing plants and different locations around India
(Wikinvest, 2017).

TMLD is supposed to enhance the process of planning, transport management, inventory

management and also on-time delivery of its vehicles. This is believed to make the process of
delivery and inventory management to become more efficient (Wikinvest, 2017). Tata also
uses a network of service centres that are located along highways and also a toll-free
customer assistance centre which is meant to provide 24-hour on-road maintenance to Tata
vehicle owners. It is believed that the reach of the companys sales and distribution network
would provide the company with a strong advantage over its competitors (Wikinvest, 2017).
Reference List

Tata Motors, 2016. Board Report. [Online]

Available at: http://www.tatamotors.com/investors/financials/71-ar-html/boards-report.html
[Accessed 12 March 2017].

Tata Motors, 2016. Sales Growth of Tat. [Online]

Available at: http://www.tatamotors.com/press/tata-motors-sales-at-40944-in-december-2016-
growth-of-2/
[Accessed 13 March 2017].

Tata Motors, 2017. Annual Report. [Online]

Available at: http://www.tatamotors.com/investor/annual-reports/
[Accessed 14 March 2017].

Tata Motors, 2017. Mission and Vision. [Online]

Available at: http://www.tatamotors.com/investors/financials/71-ar-html/mission-vision.html
[Accessed 12 March 2017].

Veterans Today, 2017. Tata Customer Segment. [Online]

Available at: http://www.veteranstoday.com/wp-content/uploads/2012/02/Tata-motors-has-
two-major-market-target-that-it-aims-to-penetrate-with-its-line-of-vehicle-that-it-
produces.doc.
[Accessed 12 March 2017].

Wikinvest, 2017. Tata Distribution. [Online]

Available at:
http://www.wikinvest.com/stock/Tata_Motors_(TTM)/Sales_Distribution_Vehicles
[Accessed 15 March 2017].