RACE

FOR THE

WORLD
Topic: Global Growth Strategy for TATA MOTORS LTD.

BY
NARAYAN JITESH
SASHIDHAR. B
I. CHAITANYA
C.E.M, TML, JSR
 CONTENTS
1.VISION.

2.PRESENT SCENARIO OF M/s TML.

3.STRATEGY TO ACHIEVE GLOBALISATION.

4.CONCLUSIONS.

5.REFERENCES.

C.E.M, TML, JSR

VISION

Our vision is to be amongst the world

leaders in transportation products and
related services. More specifically, to
achieve, 30 % of the total revenue from
international business, including exports
by 2010.

C.E.M, TML, JSR

Present Scenario Of TML
Passenger Car Segmentation
Overall Shares of Passenger Vehicles -
2003-04

Tata Motors Others

15% 16% Maruti
Udyog
45%
Mahindra &
Mahindra Hyundai
7% Motors
17%

 Indian economy growing @ 7 – 8 % per annum & the overall car market is growing @ 10%.
 Tata Motors completes acquisition of Daewoo Commercial Vehicle Company.
 Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built buses &
coaches for India & markets abroad.
 Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company
TDCV develops
 Tata Motors and Fiat Group announce three additional cooperation agreements.
 Tata Motors' vehicles are exported primarily to Europe, Africa, the Middle East, South and South
East Asia and Australia. The company also has assembly operations in Malaysia, Bangladesh,
Ukraine, Kenya and Russia.

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 STRATEGY TO ACHIEVE

GLOBALISATION

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 WHY TO GLOBALIZE ?

TODAY

• The world GDP is $28 trillions.

•21.5 % of the world GDP is produced and consumed in global markets.

•In these markets, all the world’s consumers have access to all products because industry structures exist
to deliver output everywhere.

Next 15 Years :

•Accessibility will definitely grow exponentially in the next fifteen years

 Evolution of Policies like SEZ’s and agreements between various nations

 Infrastructural Development
 Transportation Facilities etc ….

•Worldwide GDP will be $91 trillion.

•The globally accessible arena could be $73 trillion—a twelve fold increase in fifteen years.
REASONS FOR GLOBALISATION:

To expand the market share.

To Sustain Cyclic Economic Trends.
For technology up gradation & product variants.

Hence to GLOBALIZE is NO MORE A MATTER OF CHOICE, rather it has become necessary for
SURVIVAL IN THE FUTURE.

C.E.M, TML, JSR

 Expectations & Challenges

Customer Expectation Challenges

 Better Product  Improve productivity & quality

 Easy Availability  Reduce waste
 Choice  Reduce cost
 Low Response Time  Improve Marketing
 Affordable Price

Reduced project implementation time

Variety in product
Easy Accessibility

Theme-Value for money Theme-Add Value to your product

Voice of customer Excellence Business

C.E.M, TML, JSR
 Strategy for Business Excellence
Manufacturing  World Class Manufacturing  AGILE MANUFACTURING
Customer Satisfaction  Customer Delight  BREATHE THROUGH CUSTOMER

STRATEGY FOR AGILE MANUFACTURING :

Decrease Concept to Market time

Increase Production Volume
Improve Quality and Customer Delight
Focus on large Out Sourcing
Acquiring/Buying Technology
Reduce Wastage
TECHNICAL Configuration :

Advanced Product : Green Peace (Emission Norms), Fuel Cells, Telematics (GPS
System)
Advanced Manufacturing : Castings for Crankshafts
 Advanced Engines : Al Engines (Increase Power to Weight Ratio), Alternate
Sources of Fuel
Advanced Transmission and Improved Suspension Systems
C.E.M, TML, JSR
 Global Growth Strategy
Organic Growth Inorganic Growth

 To go for a joint venture or an

 Increase the capacity of the existing
Production Lines. acquisition.
 Maximising ROTA (return on total – Capture the market in agile time.
assets) value with full capacity – Technology up gradation.
utilisation.
 Win-win strategy with common goals.
 Takes time to meet market demand.
 Brand promotions & utilising established
dealer networks.

C.E.M, TML, JSR

 Global Destination
In a broad spectrum, the world can be divided into five major markets (according
to economics, geographical location) as mentioned below :

 North American market

 European market
 African market
 Asia pacific
 Latin American Market.

As sales growth plateaus in mature markets like North America and Western
Europe, automakers are increasingly focused on developing countries like
BRIC*.

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 Global Destination

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 Global Destination

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 Global Destination
De-Risking the Political Issues in CHINA :

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 Global Destination
De-Risking the Issue of Capacity Utilization in CHINA :

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 Strategy for Entering CHINA

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 Conclusion

 Enter the China Market.

 Go in with a JV with a domestic player (preferably M/s Cherry).

 Similarity of Chinese Technical Specifications (like those of environment) with

India makes immediate entry a distinct possibility.

 Adequate sales will ensure at least 70% Capacity Utilization as proved by

several major plants in China

Focus Points in various Categories in each of the Countries:

Category Nations (in Order of Decreasing Priority)
Sales Market China, Brazil, Other Asia Pacific Nations
Technology Japan, Europe
Raw Material Russia
Auto Components CKT (China, Korea, Taiwan) Nations
Consultancy Services North America

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 THANK YOU

C.E.M, TML, JSR