Q 1. What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
Ans.: There are various external and internal factors that posed the key challenges to Tata Motors in the process of moving from commercial vehicles to passenger cars.
External Factors
1. Inter industry competitions: Tata motors was trying to enter the entry segment of the Indian automobile sector. The entry segment was well occupied by Maruti 800 and the success of Maruti 800 has encouraged players like Hyundai Motors, Daewoo Motors and Fiat India to enter the segment with the offerings. At the time Tata Motors was trying to venture into the entry segment or the passenger car segment there
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Manufacturing: Tata Motors were mainly venturing into the Heavy Commercial Vehicle (Trucks), Light Commercial Vehicle (Tata 407, Tata 608 etc.) and the earthmover and excavation equipment before they proposed to enter the entry segment. The equipment requirement was different for producing the passenger cars and the category that Tata was into. That posed the challenge in front of Tata to revamp the production systems. They needed to incorporate machines that can produce at a higher rate, they required an assembly line for assembling the small cars and so on. So Tata Motors needed to make some crucial decisions to face the challenge of production systems. They also faced the dilemma of developing the production facility by themselves or outsource the production to other …show more content…
Tata Motors were not only concentrating on developing a passenger car they were trying to build a people’s car which will become a companion to the common people. So Ratan Tata walked a step further to strike an alliance with the renowned car designer IDEA to fine tune the in-house design developed by the ERC. ERC employees having an extensive exposure and knowledge of Indian roads and climate worked hand in hand with the IDEA personnel to develop a state of the art design suitable for the Indian road. They also used their alliance with IDEA to fine tune their design only which reduced the production cost to some
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
4. How did Kia, which had gone bankrupt, revitalize the organization in such a short period of time?
Customer-centric approach of Tata Motors has led to the development of vehicles with technology rich design, features and interiors, such as premium compact car Zest, Hatchbacks Bolt and GenX Nano cars.
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 Demand for cars are increasing day by day and the trend that is seen in the market is that the customer preference is shifting towards the Maruti car brand. This is an issue for the other car brands to gain market share. Statistics show that the market share of the Maruti car brand has gone up to 40%. Although this is a positive sign for Maruti, this may not be a promising situation for other car brands. The study helps to focus on the key aspects that influence the customer preference of Maruti so that the other car brands may follow the leader and compete in the market.
The following project lays down the marketing strategy of a small size car, Tata Nano. It begins with introducing the car, the beginning of it’s manufacturing. And then it goes on to describe why Ratan Tata’s dream project couldn’t realize the huge expectations that were laid upon it. It further mentions market analysis of India’s Automotive industry, segmentation of the huge market and the appropriate target segment selected for the product. It then entails how the product is to be positions in the minds of the target audience and how that goal can be achieved; finally ending with the conclusion of the report.
Honda India was one of the primary outside vehicles organizations to enter the Indian business sector after the financial changes presented in the mid 1990s permitted remote players to begin direct operations in the
Tata Motors was formerly known as TELCO (Tata Engineering and Locomotive Company) is a leading global automobile manufacturer. Originally it was manufacturer of locomotives named as TELCO, the company then manufactured its first commercial vehicle in 1954 having a tie-up with Daimler-Benz. Tata motors have a wide range of variety from heavy commercial vehicles to carriers, buses, SUVs and passenger cars that covers a wide range of cars, sports vehicles, buses, trucks and defense vehicles.
bonding quality. All the firms under the Tata group followed their own strategy and often their
According to the Ministry of Commerce and Industry, the automobile industry in India has seen a tremendous compound growth at the rate of 22 % between the year 1992 and 1997. Furthermore, the annual turnover of the automobile sector in India, in the financial year 2002-2003, is said to have surpassed the capital investment of Rs 50,000 crore. With Indian automobile corporations gaining international market, the turnover in the similar year was calculated to be Rs. 59,518 crore. The Indian automobile industry will be a standout amongst the leading in the globe. Those business accounts to 7. 1 percentage of the country 's horrible down home item (GDP). Likewise around FY 2014-15, around 31 % of little autos sold comprehensively need aid made over India. The two Wheelers section with 81 percentage business sector allotment is the pioneers of the Indian car business owing with a developing white collar class What 's more an adolescent populace. Moreover, the developing investment of the organizations in exploring those provincial business sectors further helped those development of the division. Those Generally speaking passementerie vehicle (PV) section need 13 percentage business stake. India may be also a conspicuous auto exporter and need solid fare growth desires for those close future. Clinched together with April-January 2016, fares of business Vehicles enrolled a Growth from claiming 18. 36 % through April-January 2015.
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
Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing industry which happened in 2001. This success story of Tata Motors can be entirely attributed to the timely change adopted by the Tatas and the then MD Ravi Kant who led the change.