ASSIGNMENT ON

BUSINESS POLICY & STRATEGY ANALYSIS

COMPANY ANALYSIS OF

TATA MOTORS

Submitted To: Submitted By:

Prof. Amit Sareen Ashish Sharma-17010

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 TABLE :

Serial Name Page No.

No.
1) Automobile Industry In Brief 2-4
2) Landmark of Indian Automobile Industry 5-6
3) Automobile Industry of India 7-8
4) Tata Motors History 9 - 10
5) Five Phase of Tata Motors 11 - 17
6) Analysis of Tata Motors by Different Models 18 - 20
7) Corporate Social Responsibility 21 - 22

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 Automobile History in brief

 History of the automobile begins as early as 1769, with the

creation of steam-powered automobiles capable of human
transport in 1806.

 The first cars powered by internal combustion engines running

on fuel gas appeared, which led to the introduction in 1885 of
the ubiquitous modern gasoline or petrol-fueled internal
combustion engine. 

TOP 10 MOTOR Vehicle Producing Countires in World: 2009

(Source: OICA Report)

Rank Country NameTotal Production of

Vehicles
NO. 1 CHINA 13,790,994
NO. 2 JAPAN 7,934,516
NO. 3 US 5,711,823
NO. 4 GERMANY 5,209,857
NO. 5 SOUTH KOREA 3,512,916
NO. 6 BRAZIL 3,182,617
NO. 7 INDIA 2,632,694
NO. 8 SPAIN 2,170,078
NO. 9 FRANCE 2,049,762
NO.10 MEXICO 1,557,290

806 Millions Cars & Light Vehicles on Road burn over 260
billion gallons of gasoline and diesel fuel yearly.

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Top 20 motor vehicle manufacturing companies by Volume 2009:

SERIAL NO. GROUP NAME TOTAL MOTOR VEHICLE PRODUCTION

1 Toyota 7,234,439
2 G.M. 6,459,053
3 Volkswagen 6,067,208
4 Ford 4,685,394
5 Hyundai 4,645,776
6 PSA 3,042,311
7 Honda 3,012,637
8 Nissan 2,744,562
9 Fiat 2,460,222
10 Suzuki 2,387,537
11 Renault 2,296,009
12 Daimler AG 1,447,953
13 Chana Automobile 1,425,777
14 B.M.W. 1,258,417
15 Mazda 984,520
16 Chrysler 959,070
17 Mitsubishi 802,463
18 Beijing Automotive 684,534
19 Tata 672,045
20 Dongfeng Motor 663,262

GLOBAL AUTOMOBILE CONSOLIDATION!!!!!

More than 50 Major Brands are Available in Global Automobile
Industry.

Landmark of Indian Automobile industry :

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 1897 -First Person to own a car in India – Mr. Foster of
M/s Crompton Greaves Company, Mumbai.
 1901 -First Indian to own a car in India - Jamsedji Tata.
 1905 -Fiat Motors
 1928 -Chevrolet Motors
 1942 -Hindustan Motors
 1944- Premier Automobiles Ltd.
 1945 -Tata Motors
 1947- Mahindra & Mahindra Ltd.
 1948 -Ashok Motors
 1948- Standard Motors
 1974 -Sipani Motors
 1981 -Maruti Suzuki
 1994 -Rover Company
 1994 -Mercedes-Benz
 1994 -General Motors India-Opel 
 1995 -Ford Motor Company
 1995- Honda Siel Cars India
 1995 -REVA Electric Car Company
 1995 -Daewoo Motors
 1996 -Hyundai Motor Company
 1997 -Toyota Kirloskar Motors
 1997 -Fiat Motors (Re-Entry)
 1998 -San Motors
 1998 -Mitsubishi Motors
 2001 -Škoda Auto
 2003 -General Motors India - Chevrolet 
 2005 -BMW
 2007 -Audi
 2009- Land Rover and Jaguar

AUTOMOBILE INDUSTRY OF INDIA :

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  In February 2009, monthly sales of passenger cars in India
exceeded 100,000 units
 2nd largest two-wheeler market,
 11th largest Passenger Cars producers.
 4th largest in Heavy Trucks.
 2nd largest tractor manufacturer annual production of over
2.3 million units.
 The monthly sales of passenger cars in India exceed
100,000 units. 
Different Divisions of Indian Automobile Industry

In d ia n A u to m o b ile In d u str y

T h re e W h e e le rs M u lti U tility C o m m e rc ia l P a sse n g e r T w o W h e e le rs

V e h ic le s V e h ic le s C ars

M o to r C y c le s S c o o te rs M opeds
P a sse n g e r G oods
C a rrie rs C a rrie rs

Industry classified in Three phases

1) Protection – I phase till mid80s.

2) Liberalization- II phase post 1990.
3) Globalization: III phase -early 2000.

Commercial TATA Motors, Ashok Leyland, Swaraj Mazda, Mahindra &

vehicles Mahindra ,Force motors, Eicher Motors
Passenger TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda,
vehicle Mahindra & Mahindra, Daimler Chrysler, Hindustan Motors

Two WheelerHero Honda, Bajaj Auto, Honda Motors, TVS Motors,

Yamaha , Kinetic Motors

Three Bajaj Auto, Piaggio India

Wheeler

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 Gross Turnover of Automobile Sector in India:

Segment wise Market Share in 2009- 10

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The pie chart below illustrates the market share for 2007-2008
in percentages.

 MARUTI Leader in Small Car Segment.

 MAHINDRA & MAHINDRA Leader in SUV Segment.
 In India Tata ranks as the leader in every commercial vehicle
segment, and is in the top 3 makers of passenger cars.

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 History: TATA MOTORS

 Started in 1945 in Mumbai, India.

 Headquartered in Mumbai, India.

 It is Part of 60 Billion $ Tata Group.

 It was formerly known as TELCO (TATA Engineering and

Locomotive Company).

 The company manufactured its first commercial vehicle in

1954 in a collaboration with Daimler-Benz AG, which ended
in 1969.

 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,
according to OICA data.

 The OICA ranked it as the 19th largest automaker, based on

figures for 2007 and the 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.

 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.“

 Over 5.9 million Tata vehicles ply on Indian roads, since the
first rolled out in 1954. On 26th April 2010, Tata Motors sold
its 4 millionth Commercial Vehicle.

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 The Road Ahead……………

Five Phases of TATA MOTORS

 Phase 1 – Entry into passenger vehicle

 Phase 2 – Launch of Indica

 Phase 3 – Launch of Indica V2

 Phase 4 – New Launches

 Phase 5 – Tata’s Ambitious Project

 Maruti’s dominance in market.

 50’s -80 have closed market, dominant player being

Hindustan Motors Ltd. and Premier Auto Ltd.
 In 1982- Maruti-Suzuki tie up.
 In 1983- Maruti 800 was introduced.
 From 83-93, Maruti 800 had monopoly.
 With 92’s liberalization policy, 50% FDI was allowed.

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 Phase 1: TATA MOTORS

 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 multi utility vehicle.

 After the launch of three more vehicles, Tata Estate (1992, a

station wagon design based on the earlier 'Tata Mobile'
(1989), a light commercial vehicle), Tata Sumo (LCV, 1994)
and Tata Safari (1998, India's first sports utility vehicle).

Phase – 2 TATA INDICA

 Entry into the compact Car segment with Launch of India’s

first indigenously developed car “TATA INDICA”.
 Launched in 1998.
 The first fully indigenous passenger car of India.
 Though the car was initially panned by auto-analysts, the
car's excellent fuel economy, powerful engine and
aggressive marketing strategy made it one of the best selling
cars in the history of the Indian automobile industry.

Market Market
Share Comparison:
shares till 1998
Uno
7%
Matiz
15%

Santro Maruti
22% 56%

Market shares after Indica launch, Dec.

'99
Indica
18%
Uno Maruti
7% 36%

Matiz Santro
12% 27% 12
Phase 3: Tata Indica V2.

Failure of Indica and Subsequent launch and Success of

Tata Indica V2.

 A newer version of the car, named Indica V2, was a major

improvement over the previous version and quickly became
a mass-favorite.

Phase 4 : New Launches

New Launches—Tata Novus

New launches– Tata Safari DiCOR

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New Launches – Tata Ace

Tata Ace, India's first indigenously developed sub-one ton mini-

truck was launched in May 2005. The mini-truck 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 (SCV) 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 percent to 28,537 units due
to the rising demand for Ace.

Compressed air car: Tata One CAT

Motor Development International of France has developed the
world's first prototype of a compressed air car, named One
CAT. In 2007, MDI owner Guy Negre was reported to have "the
backing of Tata".

Electric vehicles
Tata Motors unveiled the electric versions of passenger car
Tata Indica and commercial vehicle Tata Ace. Both run on
lithium batteries. The company has indicated that the electric
Indica would be launched locally in India in about 2010, without
disclosing the price.

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GLOBAL OPERATIONS:
The Tata Safari DiCOR is one of Tata's bestselling vehicles in
India and also has been fairly successful in the Mediterranean
and Eastern Europe.

Tata has tried to revamp all its models in order to satisfy

the consumer

The purchase of Jaguar and Land Rover is expected to help

give Tata Motors gain a foothold in the European and
American markets.

Tata relies on its subsidiaries for sales outside India

. Range Rover Sport.

Tata Xenon is Tata's bestselling vehicle in Europe.

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Phase 5 – Tata’s Ambitious Project

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Subsidiary Brands:

In 2004 it acquired Tata Daewoo Commercial Vehicle, and in

late 2005 it acquired 21% of Aragonese Hispano Carrocera
giving it controlling rights of the company. It has formed a joint
venture with Marco polo of Brazil, and introduced low-floor
buses in the Indian Market. Recently, it has acquired British
Jaguar Land Rover (JLR), which includes the Daimler and
Lanchester brand names.

Joint Ventures:

Tata Marco Polo released this low-floor bus in India and now it
is widely used as public transport in Delhi, Mumbai, Bangalore
and Lucknow.Tata Motors has formed a 51:49 joint venture in
bus body building with Marco polo of Brazil.
.

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Porter's 5 Forces Model

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 SWOT ANALYSIS

STRENGTHS:
 CONSOLIDATED net profits of Rs 1988.73crores for the
quarter ended June30, 2010 on the back of strong sales in
the domestic market and a good show of J&LR.
 A strong faith of Indian people in Tata brands.
 3rd largest car seller in passenger car vehicles.
 A group global sale grows by 36% at 90,646 vehicles in July
2010.
 Market leader in commercial vehicles.
 4th largest truck manufacturer.
 2nd largest bus manufacturer.
 In cities, the Nano is emerging the vehicle of choice for daily
commuting because of its agility, practically and fuel
efficiency.

WEAKNESSES:
 Cases of fire in Nano Cars.
 Image of Taxi for Tata Indica.
 Less no of service station as comparison to Maruti Suzuki.

OPPORTUNITIES:
 Fastest growing market for small cars in India.
 Positive business outlook for both commercials and
passengers vehicles in the Indian market would give a boost
to Tata Motors ‘Indian operation.
 Crisil raised its long term debt rating to AA-.
 Reflecting an improvement in the ability of the Auto Major to
repay loans.

THREATS:
 Entries of foreign players in Indian automobile sector.
 Stiff competition from Maruti Suzuki and Hyundai.

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 COMPETITIVE PROFILE MATRIX

CRITICAL SUCCESS FACTOR WEIGHT RATING SCORE

Market Share .15 4 .6

Product Quality .15 4 .6

Management .08 3 .24

Financial Position .08 3 .24

Global Expansion .07 2 .14

Advertising .05 1 .05

Customer Service .08 2 .16

Price Competitiveness .12 3 .36

Customer Loyalty .06 2 .12

Sales Distribution .07 2 .14

Production Capacity .09 2 .18

Total =1.00 2.83

NOTE: The ratings are as follows:

4=major strength
3=minor strength
2=minor weakness
1=major weakness

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INNOVATION STRATEGIES

 Major strategy of Tata motors is its ability to exploit

information technology. For e.g. In case of Tata nano it was
an early adopter of CAD and CAM systems to speed design
of Tata nano.

 Strategy of outsourcing noncore activities, it has outsourced

its IT technology to Tata tech. ltd. And its IT infrastructure to
IBM.

 In TATA SAFARI 4*4 DICOR it has installed “reversed guide

system” i.e. weather proof camera is fixed to rear car to help
driver while reversing car.

 PRICING STRATEGY- giving discount every month &

special promotion technology.

CSR Activities :

 The Company has streamlined its CSR activities into four

focus areas of Health, Employability, Education and
Environment

HEALTH

Villagers receiving free health check-up and medicines from the

Mobile Medical Van in Luck now project area and Eye testing
and distribution of spectacles to the villagers in Shive village,
Pune .

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 ENVIORNMENT

 In view of the threat to environment, the Tata Group places a

special emphasis on environmental and ecological issues.

 Over 175,242 saplings have been planted with a 80%

survival rate. Smokeless chullahs constructed to promote
use of environment-friendly practices

 In Jamshedpur, 85 acres of land has been brought under

irrigation and tree plantation has extensively been carried out
in over 152 acres.

EMPLOYABILITY & EDUCATION

Tata Motors facilitated the establishment of Tata Motors Grihini
Social Welfare Society (TGU) to develop opportunities for
entrepreneurship development and income generation among
women from employee families, ensuring a balance between their
engagement in these activities and their family responsibilities.

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 Reference:

 Ministry of Heavy Industries & Public Enterprises

(Department of Heavy Industries), Government of India
 Automobileindia.com
 Businessline.com
 Tata Motors Annual Report
 Open Web Search.

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