1. What are the key challenges faced by Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
Ans: Tata Motors was a leading player in the segment of commercial vehicle market. In 1954 Tata Motors in collaboration with Daimler Benz started manufacturing heavy commercial vehicles like excavators and earth moving equipment’s. When Japanese firms Toyota, Mitsubishi and Nissan entered the Indian market through joint ventures for manufacturing light motor vehicles, Tata Motors took this opportunity and developed light motor vehicles (TATA 407, TATA 608, and TATA 709) that went ahead of the Japanese firms due to low cost, adaptable to Indian road conditions and good after sales service.
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They are Hyundai Motor’s “Santro”, Daewoo Motors “Matiz” and Fiat India “Uno”. There was an effect on price sensitivity as people are ready to pay more for fuel efficient cars.
• In order to focus on the international car market they need to have world class standards. They should be competent enough like managing the supply chain so that they could integrate products and services both upstream and downstream
• They should be able manage their alliances in a proper way to extend their market globally without much using its resources.
• The most challenging part is integrating the components with manufacturing operations since most of the automakers are doing away with their business of assembling components.
• Tata Motors have to take their decision whether to make or buy for the key inputs i.e, design, engine and transmission.
• Although different measures were taken by Tata Motors for their product design, engines and transmission yet there were some obligations
i. The company has design that are suited for LCV and MCVs whereas the design that is required for cars is monocoque. i.e a single
Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.
The core competence of Tata Motors lies in its expertise in production of commercial vehicles and good financial and human resources at its disposal which help it in introducing cost effective passenger cars in the market. The company has access to good research and development capabilities also which help it in manufacturing excellent products for the market. This core competence stands on the test offered by Hamel and Prahalad as it can help the company in entering into new market segments, satisfy the demands of existing customers and give good profits.
As mentioned earlier Tata Motors being the largest automobile firm in India, it is admired to be the most reliable and futuristic manufacturers in today’s world. Tata vehicles and their new cars are preferred globally for their advanced technologies and handiness with over 130 models of passenger vehicles and trucks which tend to boost the Indian market internationally. Tata Motors have various core competencies that further make it different from others in the market place. As stated earlier, a core competency for Tata Motors is the acquisition of jaguar and Land Rover in order for an expansion internationally, directly giving them an ultimate competitive
Tata motors limited is the India’s largest automobile company, with the consolidated revenues of INR 2, 62,796 crores in the year of 2014-15. It is the leader in the commercial vehicles in each segment, and among the top in the passenger vehicles with the winning products in the compact, midsize cars and the utility vehicle segments. The Tata motors group has over 60,000 employees are been guided by the mission “to be passionate in anticipating and providing the best vehicle and experience that excite our customer globally. It has been established in the year of 1945, Tata motors presence cuts across the length and the breath of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out
In 2002, the Indian government formulated an “Auto Policy” which aims at promoting integrated, phased, and self-sustained growth of the Indian automobile industry.
Tata Motors, India’s largest auto manufacturer have created the world’s cheapest car priced at $2,500 allowing drivers to be able to afford a car. Tata Group is a global enterprise whose headquarters are located in India, founded in 1868. The group contains over 100 independent operating companies, located in more than 100 countries. Each company is under control of their own board of directors and shareholders. One of the subsidiaries of Tata Group that will be focused on in the paper will be Tata Motors. They were founded in 1945, which is headquartered in Mumbai produces different types of vehicles. These vehicles include passenger cars, trucks, vans, buses and military vehicles. Over the years Tata Motors have used a global strategy to
What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
Opportunities: The external environment plays directly to Tata Motors advantage. In India the average household earned roughly 4,000 U.S. dollars, and only 38 out of every 1,000 people owned a car. With the poor economic state of India, Tata Motors was able to produce and sell the Nano car for 2,500, giving India an affordable alternative to motorcycles and scooters. Being able to produce a low-priced car is huge for Tata Motors considering the majority of India and China’s adult population do not own a car. Producing the lowest priced car on the market is putting Tata Motors in a position to corner the market in India and China. Also a huge opportunity for Tata Motors is that there are
The company that is there to be described by the readers, is actually a world famous car company and it is named as Nissan . It is one of the famous and the oldest car companies of the world. It has created such historical records in car making that nobody could even give a comparison to some of its models. It products are actually the grand or huge vehicles. Not only that but it does also create the cars of the different models and shapes . Those are have proved very reliable as far as the engines and their performances are concerned. Not only that but also Nissan has earned a lot of fame in the field of trucks . It’s trucks
Environmental factors– 'Automobile sector is seen as the biggest culprit damaging the environment. ' ( Booze, 2015) Tata Motors has been manufacturing vehicles in accord to the norms of standards of emissions within different countries that it serves. The company has also invested large sums of money eco-cars making it an eco-friendly company for all clients.
This report covers marketing and management issues of car start-up Diamond’s. The first section concerns micro and macro environmental factors, which can influence the business in automotive industry. There are also mentioned some opportunities and threats. In section B are defined company goals for three years and organisational structure. Section C discuses an appropriate model of management to achieve the goals. In the last section is described segmentation, targeting and positioning and characterized the
Company's global plans to reduce domestic exposure, domestic commercial vehicle market is highly cyclical in nature & prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment.
Economic With business practices all over the world , Tata Motors concentrates on global economies while focusing on individual markets within countries. In recent years Tata Motors has experienced high growth since 2004. They have created joint ventures with 5 countries across the
The key to success of automobile industry lies not only in having good products but also
Passenger vehicles in India could be segmented into three categories: passenger cars, utility, and multipurpose vehicles. Passenger cars contribute about eighty percent of total sales volume and is expected to grow fifteen percent annually. Though there were numerous auto