Introduction History Marketing Strategy SWOT Analysis TATA Motors Products

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments.

The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer.

Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in1954. 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 joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company.

Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008.
In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker.

Tata Motors is equally focussed on environmentfriendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation.
It has also been implementing several environmentfriendly technologies in manufacturing processes, significantly enhancing resource conservation.

Sixty years ago on June 1, 1945, Tata Sons Ltd purchased from the Government of India, the `Tatanagar Shops' unofficially called the Singhbhum Shops of the East Indian Railway. The purpose was to manufacture steam locomotive boilers and later complete locomotives and other engineering products. Tata Sons decided to set up the project as a new company and called it Tata Locomotive and Engineering Company Ltd, which then became Telco. The roadmap was laid out clearly by the Chairman, J. R. D. Tata (1945-1973), and Sumand Moolgaokar, Chairman (1973-1988), who sensing the boom in the automobile industry set up the second factory in Pune.

1945 The Company was incorporated on 1st September at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine tools. 1946 Tata Enginering undertook manufacture of 5000 'KC' broad gauge open wagons for the Indian Railway. The Managing Agency Tata Sons was transferred to Tata Industries on July 1, 1946. The Managing Agency system continued till it was abolished by an act of Parliament in 1970. 1948 Steam Road Roller introduced in collaboration with Marshal Sons (UK)1950 Collaboration signed with M/s Krauss-Maffei, W. Germany for manufacture of steam locomotives 1954 Collaboration with M/s Daimler Benz AG, W.Germany, for the manufacture of medium commercial vehicles at Jamshedpur. 1956 Steel foundry set up in collaboration with Usines Emile Henricot of Court St. Etienne, Belgium.

1960 The company's name, which was Tata Locomotive & Engineering CompanyLtd was changed to Tata Engineering & Locomotive Company Ltd (TELCO). 1961 Collaboration with M/s Pawling & Harnischfeger (P&H), U.S.A. for manufacture of cable type excavators and cranes. 1963 A project for the production of large press tools and complex dies was undertaken in collaboration with Raymond. F.Thompson (Engineers) Ltd. UK. 1965 With effect from 1st July the Investa Machine Tools and EngineeringCo. Ltd. was amalgamated with the company and it became the MachineTool Division.

1983 The company issued 15% secured non convertible debentures of Rs.100 each aggregating to 30 crores in order to augment the long-term funds for working capital requirements and to meet the capital expenditure on its modernisation and replacement programme.

1984 Collaboration with M/s Hitachi Construction Machinery Co. Ltd., Japan, for manufacture of hydraulic excavators. 1985 All the dies and many of the machine tools and production devices required for the new `TATA 407' and `TATA 608' series were produced by the Company in Capital Goods Division. The company started making CNC Collaboration with Niigata Engineering Co. Ltd, Japan for NC / CNC Horizontal Machining Centres and with Nachi-Fujikoshi Corp., Japan for NC /CNC In line Machining Centres and flexible manufacturing systems.

1986 The company issued 40,00,000 15% NCD's at the rate of Rs.100 each for Rs.40 cr on rights basis. Subsequently 20,00,000 additional debentures were issued to retain over-subscription. 1988 The Tata mobile pick up entirely designed and engineered by Telco was launched in July 1988. During the year company undertook to set up a new forge shop, a high output foundry line, a new paint shop as well as augmentation of engine and gearbox manufacturing facilities, all at Jamshedpur.

1989 The company acquired 25% of the market share in the light commercial vehicles. The company signed an agreement with Hitachi Construction Machinery Co.Ltd. Japan for the manufacture of a more advanced series of hydraulic excavators i.e., `EX'series. A letter of intent was also received for supplying vehicle aggregates to Mercedes Ben 355 Indonesian Partner. The Company entered into an agreement with Cummins Engine Company Inc. USA for forming a 50% - 50% joint venture to produce fuel efficient engines with low-commission characteristics for powering the Company's range of Medium/heavy vehicles. The Company was incorporated in October 1993. Its factory is to be established at Jamshedpur. 1990 A new model of earthmoving equipment the TWK-3036 Tata Front End Wheel Loader was introduced. 57,000 - 13.5% pref. shares redeemed.

1991 During the year the company entered into a collaborative agreement with an internationally renowned engine research and development organisation to jointly develop higher horsepower, fuel efficient diesel and petrol engines to meet the future requirements of the company. The last quarter saw the company launching two new passenger vehicles, the SIERRA and the ESTATE totally designed and manufactured in India. The company acquired a BIFR company, M/s Noduron Founders Maharashtra Ltd. The total cost for Telco worked out to Rs.18 crores as against setting up of similar critical castings foundry. During the year company launched a new earth moving equipment TWK3036 Tata Front End Wheel Loader. Two new models in the EX series of hydraulic excavators were launched. A 10 tonne pick and carry articulated crane, designed and developed inhouse was also introduced With the help of Hitachi Construction

Machinery Co. Ltd.

1992 The Company undertook to establish a joint venture with Mercedes-Benz to manufacture automobile products for sale in India and to meet the needs of export markets. The project also included the possibility of manufacture of a Mercedes Benz passenger car for the domestic and foreign markets. Mercedes-Benz India Pvt. Ltd., was incorporated on November 1994 which commenced initial assembly of cars in March 1995. During the year company entered into an agreement with Nachi-Fujikoshi Corporation, Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications. During the year, company undertook to set up a joint venture with Asian Glass Co. Ltd., Japan to manufacture float glass to be used as wind shields for automobiles. ACC along with Tata Exports Ltd., participated in the joint venture. The joint venture named as Floathlass India Ltd., the Company would have a stake of 16.33%.Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata Holset Ltd. Tata Precision Industries, Singapore and Nita Company Ltd., are the joint Ventures of the Company.

1993 During the year company introduced the Tata full forward 609 LP bus and Tata 609 SFC semi forward version. It was proposed to introduce new four cylinder petrol engine during mid 1995. 1994 During the year company introduced the Tata SUMO and LPT 709. The company developed a new fuel injected, 4 cylinder petrol engine with the assistance of AVL Austria. During the year company manufactured 4 basic robot for spot welding, sealant application and arc-welding. On 22nd April an agreement was entered into between Daimler-Benz AG and Mercedes Benz India to manufacture `E' Class paneyer cans and engines in India. The Company successfully launched high performance, low emission and fuel efficient medium commercial vehicles with Cummins engines in Kuwait, Kenya, Zambia and Ghana. Taking advantage of the broad banding policy announced by the Government of India, the Company entered into a collaboration agreement with Honda Motor Co. Ltd., Japan, for the manufacture of their `ACCORD' model of cars in India.

1995 During the year a new double pick-up and Army Version of various Telco Vehicles were developed. A new petro engine and turbo diesel engine, an up-graded 709 LCV, new sports utility vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2 truck and a bus with Cummins engine were launched. Tata Engineering and Locomotive Company (TELCO), has acquired a second hand paint shop, machine line and cylinders from the Australian unit of the Japanese auto giant, Nissan. During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times. During December, company issued 58,86,697 warrants to Tata Companies and Daimler Benz AG with a right to subscribe to one ordinary share per warrant at Rs.362 per share before 27th. 30,84,414 shares were allotted. 860,49,140 bonus shares issued in prop. 3:5, 187,73,487 No. of equity shares allotted on exercise of warrants. A new double pick-up and army version of various Telco Vehicles were developed.

1996 TELCO has decided to launch a new indigenous family car, by the middle of 1996. The company seeks to manufacture a 900cc engine car. The production would be significantly increased in the next few years, to make TELCO,the largest producer of small engine cars in the country. The Company has launched Tata Safari in its Multi utility vehicle segment. Tata Holset's turbo charger plant inaugurated on November 25, 1996.

1997 To meet the planned long-term capital requirement of funds, the Company issued unsecured 10 year Yankee Bonds totalling US $ 200million in the overseas market in July 1997. In November 1997, the Company made a private placement of 7-year Secured Non-Convertible Debentures of Rs. 115 crores @ 12.25% - one of the lowest rates for any such issue in the market. The Tatas are all set to establish a unit for producing trucks and earth moving equipment at Dharwad. The Tata Engineering and Locomotive Company Ltd. (TELCO) has emerged as numero uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank.

2000 The Company has launched the Indica 2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. The Company has won the National Technology Award for indigenous development and commercialisation of the Tata Indica car. The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati. The Company has shut down its commercial vehicles assembling unit at Lucknow following persistent labour problems. Telco has decided to defer the launch of its mid-sized passenger car, Magna, to around June 2002. Tata Engineering & Locomotive Co., is renamed as Tata Engineering Ltd. Tata Engineering has seen a marginal increase in its market share in the utility vehicle segment to 26.1 per cent for the period April-July. The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment. Tata Engineering has joined hands with Daimler-Chrysler, the world's third largest auto conglomerate, forming a consortium to bid for an order of 60,000 light commercial vehicles from the South African government. -

2006 Tata Motors launches Cliffrider Tata Motors unveils new long wheel base premium Indigo & X-over concept at Auto Expo 2006 Indica V2 Xeta launched 2007 Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors. Tata Motors buys Nissan facility in S. Africa. Tata Motors has rolled out the Sumo Victa Turbo DI, the new advanced range of its entry-level utility vehicle, the Sumo Spacio. 2008 Tata Motors signs deal with Chrysler electric vehicle unit.Tata Motors launched out the new generation of its flagship passenger car Indica on Aug 23. The new model called 'Indica Vista' 3.8 m long and 1.7 m wide is larger than the existing Indica.

2009 Tata Motors has entered into an agreement with Andhra Bank for financing its range of passenger vehicles, which will provide anadded facility of car finance to its customers. Bank of India has entered into a pact with Tata Motors for financing Fiat cars, which are available through the Tata-Fiat dealer network. Tata Motors, one of the promoter group companies of Tata Steel, has pledged its entire holding of over 1.04 crore shares in the steel major. 2010 Tata Motors on June 2 opened its brand new plant in Sanand, set up at a cost of Rs 2,000 crore, to manufacture wonder car Nano. The Sanand plant was inaugurated by Tata Group Chairman Ratan Tata and Gujarat Chief Minister Narendra Modi. According to Tata officials, the Sanand plant will have an initial production capacity of 2.5 lakh Nano cars a year, which will be gradually increased to 5 lakh cars a year. IndusInd Bank and Tata Motors inked an agreement. As per the deal,IndusInd Bank will provide channel finance facilities to Tata Motors' dealers

1. PRODUCT (Brand, Packaging, Innovations, Quality):

a. Brand: Advertising is often used to make consumers aware of a products special low price or its benefits. But an even more important function of advertising is to create an image that consumers associate with a product, known as the brand image.

The products of Tata Motors have many special characteristics to them, but when consumers think of it, they not only think of its features, but they may also associate it with quality, performance, class. Tata Motors have been successful in creating and maintaining a professional brand image.

b. Packaging: A vehicle cannot have a material packaging. Here, packaging refers to and effective assembly of features. Tata Motors provide many innovative features to suit the target customers and the product. E.g. Tata Safari Dicor has Reverse Guide System which includes a weather-proof camera to help the driver while reversing the vehicle. c. Innovations: The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. Tatas have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers, who desire more at less price.

d.Quality Control: Tata Motors have their Quality Control standards and the QC Dept. ensures that the customer does not face any inconveniences of a defective product.

2. PRICE (Pricing Strategy, Alterations, Discounts) a. Pricing Strategy: The prices are fixed keeping in mind a number of factors. Tata Motors give a relative price advantage as compares to its competitors. The various determinants of price are i. Market Condition ii. Costs incurred iii. Profit percentage desired by the Co. iv. Dealer Profit b. Alterations: The Company does not allow any alterations to any of the features of the product. If there is an alteration which affects the performance of the engine, then the warranty becomes void. However, there may be alterations in the accessories, if desired by the customer. c. Discounts: Discounts are decided by the Co. every month. Any further discounts made from the profits of the dealer. However, the Co. may compensate the dealer for the discounts allowed to a certain extent.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations) a. Personal Selling: There is minimal personal selling involved. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. b. Advertising: Advertising is a form of commercial mass communication designed to promote the sale of a product or service. Tata Motors is responsible for the advertising of its products. The various media used for advertising are T.V., Newspapers, Magazines, Hoardings, Internet etc. The dealer conducts point-ofpurchase displays to advertise the products. The advertisements done by the Co. help the dealer to capitalize on the market.

c. Sales Promotion: Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali. d. Public Relations: Public Relations is a management function that creates, develops, and carries out policies and programs to influence public opinion or public reaction about an idea, a product, or an organization. The Co. takes serious measures to maintain good public relations. The Co. follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires

4. PLACE (Channels of Distribution, Physical Distribution) a. Channels of Distribution: Tata Motors have also adopted dealership method of distribution of its products. The dealers purchase products from the Co. at a negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. As the Co. deals in commercial and passenger vehicles, there may be a single or distinct dealerships to market its commercial and passenger vehicles in a town. However, if there is a single dealership appointed, then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively. Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities of vehicles are ordered by a Govt. Dept. or a private company. b. Physical Distribution: The commercial vehicles are manufactured at Jamshedpur, Lucknow and Pantnagar whereas the passenger vehicles are manufactured at Pune plant. From the plant, the finished product is transported to the dealerships. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points.

Strengths The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. The company has had a successful alliance with Italian mass producer Fiat since 2006. production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.

Weaknesses The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands Tata has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? 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

Opportunities In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gasguzzlers, is the Nano the answer in terms of concept or brand? Nano! The range of Super Milo fuel efficient buses are powered by superefficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

Threats Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms 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. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

Tata Sedan

Indigo CS GLE (Petrol) Indigo CS GLS (Petrol) Indigo CS LE (Diesel) Indigo CS LS (Diesel) Indigo GV (Petrol) Indigo GVE (Petrol) Indigo V (Diesel) Indigo GVS (Petrol) Indigo VE (Diesel) Indigo GLS (Petrol) Indigo VS (Diesel) Indigo GLX (Petrol) Indigo LS (Diesel) Indigo XL (Petrol) Indigo LX (Diesel)

Indigo LX (Diesel) Indigo LS Dicor (Diesel) Indigo LX Dicor (Diesel) Indigo XL (Diesel) Indigo XL Grand (Petrol) Indigo XL Grand (Diesel)

Tata SUV

Tata Sumo (SUV) Sumo CX-10 Seater (Diesel) Sumo Victa LX (Diesel) Sumo Victa EX (Diesel) Sumo Victa GX 7 Seater (Diesel) Sumo Victa Gx 8 Seater (Diesel) Tata Safari (SUV) Safari DL 4 x2 LX TCIC (Diesel) Safari DiCOR LX 4x2 (Diesel) Safari DiCOR Exi 4x2 (Petrol) Safari DiCOR EX 4x2 (Diesel) Safari DiCOR LX 4x4 (Diesel) Safari DiCOR EXI 4X4 (Petrol) Safari DiCOR EX 4X4 (Diesel) Safari DiCOR VX 4X2 (Diesel) Safari DiCOR VX 4X4 (Diesel)

Tata Winger (SUV) Winger Luxury Long WB Flat Winger Car by Dilip Chhabria

Tata Nano (Hatchback) Nano Standard (Petrol) Nano CX (Petrol) Nano LX (Petrol) Tata Indica (Hatchback) Indica Xeta GLE (Petrol) Indica Xeta GLS (Petrol) Indica Xeta GLG (Petrol) Indica V2 DLE (Diesel) Indica Xeta GLX (Petrol) Indica V2 DLS (Diesel) Indica Dls Turbo (Diesel) Indica Dlg Turbo (Diesel) Indica Dlx Turbo (Diesel)

Tata Indica Vista (Hatchback) Indica Vista Safire Terra (Petrol) Indica Vista Safire Aqua (Petrol) Indica Vista Tdi Terra (Diesel) Indica Vista Safire Aura (Petrol) Indica Vista Tdi Aqua (Diesel) Indica Vista Quadrajet Aqua (Diesel) Indica Vista Quadrajet Aura (Diesel) Tata Wagons Tata Indigo Marina (Wagon) Indigo Marina GLS (Petrol) Indigo Marina GLX (Petrol) Indigo Marina LS (Diesel) Indigo Marina LX (Diesel) Indigo Marina GSX (Petrol) Indigo Marina Lx Dicor (Diesel)

Thank You.