Fundamental Analysis of Tata Motors

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.

• Tata Motors is India's Tata Motors under the production of cars, a division of Tata Motors marquee. Tata Motors is a four passenger car brand in India, compact, medium-sized sedan segment products and utility vehicles. Tata's dealership, sales, service and spare parts network comprises over 3,500 touch points. Tata Motors has more than 250 dealers in 27 states nationwide and four Union Territories in India more than 195 cities. It has Maruti Suzuki and the third largest sales and service network of modern later.

There are several reasons for this. The primary reason could be its decision of not seeking to run Jaguar Land Rover operations from Tata headquarters. Instead they decided to leave the day-to-day management to the executives in the England. The deal comes out to be transformational as it moved the brand Tata Motors from a commercial vehicle and small-car manufacturer to a global player with premium brands in their list. In the fiscal year 2008, ended in March, Jaguar posted an increase of 27 percent in retail sales, to 306,000 (Three lakh six thousand) vehicles, and became the drive for the growth and increase of the profit for Tata

Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2006, Tata Motors formed a 51:49 joint venture with the Brazil-based, Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India – the plant is located in Dharwad. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company’s pickup vehicles in Thailand, and entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north of Pretoria. The plant can assemble, semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50

A primary issue Tata must consider is the current and future profitability of the Nano. In order to determine if their strategy of entering the small car market is feasible, the influences on the industry must be evaluated. If evaluation of the industry indicates that future profitability is in question, the company must consider canceling the project, or focus on areas where Tata can influence the industry to improve the likelihood of profitability.

Tata Motors Ltd. is the largest Indian automobile company having the revenues of USD 20 billion in 2009-10. Tata Motors is the leader in the manufacturing of commercial

1. Political problems at Singur Plant which will certainly delay the Nano launch hinder meeting the demand and might increase production costs.

Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s platform. Leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in export and domestic market where major improvement in the road infrastructure underway.

For example, Tata motors just acquired Jaguar and Land Rover from Ford Co. To gain success through these newly acquired companies they must fully understand the laws and regulations that United Kingdom practices. Tata Motors headquarters is located in Mumbai, India and is strictly controlled by the local government. The Indian government regulates operations of all dealerships. Regulations are different in every country. Tata Motors has manufacturing plants all over the world and have to be constantly watched for political change. The reason why Tata Motors is so successful in the international market is because its understanding of the countries economic situation, customer needs, and government regulations.

Tata Motors enjoys giant-sized growth thanks to its Nano cars. The company -- India 's largest automobile maker by sales -- makes buses, trucks, tractor-trailers, passenger cars (Indica, Indigo, Jaguar, Land Rover, Safari, Sumo, and the popular micro car Nano), light commercial vehicles, and utility vehicles. It also makes construction equipment and provides IT services. Tata Motors sells through more than 1,000 dealers in India, as well as exports vehicles to countries in Africa, Asia, Europe, the Middle East, and South America. In addition, the company distributes Fiat-brand cars in India through its Tata-Fiat dealer network.

automakers are investing here in this segment. There is Tata Nano ready to be launched and

Tata Motors is India 's largest automobile company, with revenues of US $ 7.2 billion in 2006-2007. With over 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles. It is also the world 's fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. Tata Motors and Fiat Auto have formed an industrial joint venture in India to manufacture passenger cars, engines and transmissions for the Indian and overseas markets; Tata Motors also has an agreement with Fiat Auto to build a pick-up vehicle at Cordoba, Argentina. The company already distributes Fiat branded cars in India. Tata Motors’ international footprint includes Tata Daewoo Commercial Vehicle Co. Ltd. in South Korea; Hispano Carrocera, a bus and coach manufacturer of Spain in which the company has a 21% stake; a joint venture with Marcopolo, the Brazil-based

The company should have done whatever they could to modify current facilities that could produce the Nano. Although this would lead to less production, it would make sense. They should produce less of the Nano in order to test its performance in the market. After a successful entry, plans should be made for large-scale production (a new plant).

Tata Motors is the first Indian Engineering Sector to be listed in the New York Stock Exchange and has its operations in United Kingdom,

While most of the other car manufacturers in the country has concentrated on the luxury carsegment, Tata Motors remain isolated from luxury car market which is a disadvantage to thecompany.