A Report On Tata Motors

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I. Core Problem / Issue
Tata Motors has continued to increase its presence in the car industry throughout Asia and the world, but especially in their home country of India. From their goal of providing innovative affordable products for the masses, they have expanded from commercial vehicles into passenger cars, becoming India’s largest automobile company. As part of their global expansion strategy, Tata Motors acquired Jaguar Land Rover (JLR) in 2008, which allowed them to move into the higher end car market. The timing of which proved difficult, due to global recession. The latest innovative product that Tata has developed is the Nano, a low cost car designed to compete as a safer and more comfortable alternative to 2-wheeled vehicles in India. Tata was able to find a Blue Ocean with this product. The Nano’s release in 2009 was a resounding success, with over 206,000 orders in the first year. The interim plant was able to produce 50,000 vehicles the first year, with the new plant expected to have a capacity of 350,000 vehicles in 2010. Initial estimates put the potential market demand for vehicles similar to the Nano near one million units per year in India, with the potential to expand to global markets. Global automakers have plans to start production of ultra low cost (ULC) vehicle, so this will be a highly competitive market. The core problem for Tata Motors is that they need to decide if they continue as planned with their production of only 250,000 vehicles or if

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