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TATA MOTORS

Company Background associate and subsidiary companies, operating in


Europe. It is leveraging Europe’s experienced talent
Set up in 1945,Tata Motors is India's largest base in automobile research and development.
automobile company.With close to 4 million
Tata vehicles plying in India, since the first roll out In 2005,Tata Motors also entered into a
in 1954, it is the leader in commercial vehicles and Memorandum of Understanding with Fiat, the
the second largest in passenger vehicles. It is also first outputs of which have been distribution
the world's fifth largest medium and heavy truck of Fiat-branded cars in India by Tata Motors, and
manufacturer and the second largest heavy bus a proposal to set up a joint venture in India to
manufacturer. In India, the company has manufacture passenger cars, engines and
manufacturing facilities in Pune (Maharashtra – transmissions for the Indian and overseas markets.
western India), Jamshedpur (Jharkhand – eastern
India) and Lucknow (Uttar Pradesh – northern Tata Motors in European Markets
India), and a nation-wide dealership, sales, services
and spare parts network comprising over 2,000 Tata Motors began exports of its vehicles to
touchpoints.The company employs over 22,000 Europe in 1992 with the Tata Telcoline 1- tonne
people.Tata cars, buses and trucks are being pick-up truck.
marketed in several countries in Europe, Africa, the
Middle East, South Asia, and South East Asia and in At present,Tata Motors exports the Tata Safari
Australia.Tata Motors has research centres in Sports Utility Vehicle, the Tata pick-up and the Tata
India, the UK, and in its subsidiary and associate Indica range of passenger cars to Italy, Spain,Turkey,
companies in South Korea and Spain. Portugal and Malta through its established
distributors in these markets.The response has
In the financial year 2005-06, it earned net revenue been encouraging. For example, in Italy,Tata Motors
of USD 4.65 billion, compared to USD 3.98 billion is already the 4th largest player in pick-ups, while
in 2004-05, a growth of 16.8 per cent. For 2005-06, in Turkey it is the third largest player.
the company’s exports rose to USD 496 million, as
compared to USD 332 million in 2004-05, Today, around 50,000 Tata vehicles are already on
representing an increase of 49 per cent. European roads and bear testimony to Tata Motors'
capabilities to address stringent country norms and
Tata Motors links with Europe sophisticated consumer needs in highly competitive
markets.
Tata Motors’ is present in Europe in various
dimensions.The company, on its own, markets its This European presence of Tata Motors enables
products in select European countries. It has the company to remain well ahead of Indian
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regulations with regard to exhaust, emission and INCAT operates in the EU through its subsidiaries
safety norms. all over Europe. Its main subsidiaries include
INCAT GmbH, Germany, INCAT Limited, UK,
Tata Motors’ linkages in Europe and INCAT SAS, France.The company has other
through Associate Companies subsidiaries in the Netherlands and Ireland and
a global workforce of 3000.
In March 2005,Tata Motors took a 21% stake in
Hispano Carrocera, one of the largest bus and In January 2006, INCAT acquired CEDIS
coach bodybuilders of Europe with manufacturing Mechanical GmbH, Germany, a provider of
facilities at Zaragoza and Casablanca (Morocco). automotive engineering and design services.
The company has the option to acquire the This acquisition has provided the company with
remaining equity too. proven competency and CATIA support, and
provided it with the means to expand its presence
This partnership provides both companies with the in Germany in particular and in Europe as a whole.
opportunity to use their complementary strengths
to create high-class transport solutions for Tata Motors R&D in Europe
intra-city and intercity mass transportation in
countries around the world. For example, soon Deepening its engagement with the European
after this partnership, Hispano Maghreb, the fully R&D space, in September 2005,Tata Motors
owned subsidiary of Hispano Carrocera, bagged set up the Tata Motors European Technical Centre,
its largest-ever single contract to supply 800 urban a 100 per cent subsidiary, in the UK.
buses to Casablanca’s urban transport operator,
M’Dina Bus.This large fleet renewal is part of It is engaged in design engineering and development
Morocco’s largest project to modernise public of products for the automotive industry.Working
transportation. synergistically,TMETC provides the company with
design engineering support and development
Hispano Carrocera, Tata Motors, and the services, complementing and strengthening the
company’s 100% subsidiary, Tata Daewoo company’s skill sets and providing European
Commercial Vehicle Company Ltd. (Tata Motors standards of delivery to the company’s passenger
acquired it in 2004) are now collaborating in vehicles.
developing commercial vehicle platforms which
can be used in several countries. Factors of Success

Tata Motors’ linkages in Europe Strong Presence in the Marketplace


through Subsidiary Companies Tata Motors is the only company in India with
a broadbased presence across the industry, in all
Similarly, in October 2005,Tata Technologies Ltd, a segments of the commercial vehicles market –
100 per cent subsidiary of Tata Motors, acquired a heavy and medium commercial vehicles, light
94.3 per cent stake in INCAT International Limited. commercial vehicles, pick-ups, sub one-tonne
INCAT is a supplier of engineering & design, mini-trucks - and key segments - compact, midsize
product lifecycle management and product-centric car and utility vehicle segments - of the passenger
IT services to the automotive, aerospace and vehicles market.
durable goods industries.
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Unique Understanding of Customer Need the company, this talent base is now getting
With 50 years’ presence in the automotive enriched with the necessary competencies to
business,Tata Motors understands customer needs respond to meet world-class standards of
and develops products that meet their needs.To quality and cost.
consider a few examples, as early as 1980s, the
company launched Light Commercial Vehicles, Future Plans
amidst Japanese competition, in which it today
strongly leads. In the 1990s, anticipating the need Tata Motors’ goal is to enhance its leadership in
for an affordable family car, it launched the now India, and establish meaningful presence in select
famous Tata Indica, which occupies a leading international markets.The company will achieve
position among compact cars.This keen sense of this by developing and marketing relevant products,
the customer pulse led the company to launch in on its existing platforms and new ones, which
2005, the Tata Ace, India’s first sub one tonne delight consumers in every market they are
mini-truck, as a last-mile distribution vehicle once introduced in.
again creating a new market. Going forward,Tata
Motors has anticipated that non-car owning www.tata.co.uk
families, at the bottom of the pyramid, will look for
an extremely affordable vehicle, providing
exceptional value and this small car will be
launched in 2008.

Skill Base Developed Over the Last 40 Years


Tata Motors is also very well-placed on technology
capability.The company had set up its Engineering
Research Centre as early as 1966.With 1400
scientists and engineers and state-of-the-art
development, testing and validation facilities, it is
this technology capability which has, allowed Tata
Motors, over the decades, to offer indigenously-
developed products.This strength has been
accentuated, with the inclusion of TMETC,TDCV
and Hispano Carrocera in the R&D network,
besides several other specialist external agencies.
The company no longer needs to develop every
necessity itself.Today it just has to manage the
process of product creation, drawing upon already
available R&D and skills from different sources.

People Strength
The company’s key strength is its people.The over
22,000 employees comprise a very broad talent
base, with the required skills in every aspect of the
industry.With increasing international initiatives by
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