Key Challenges Faced By Tata Motors

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.

Most of the people recognize Tata Motors through Tata Nano. Tata Nano was a dream and brainchild of Ratan Tata, Tata Group’s Chairman. It was marketed as Rs. 1 Lakh car and also as people’s car. The idea behind Tata Nano was to give common man who cannot afford the luxury of 4-wheel drive a car which is affordable and to raise the level of lower middle class society in India. It was launched with price of Rs. 100000 but the price got increased with time. With time and with dwindling automobile markets in various countries the manufactures realized that the cheap and practical cars or small car segment is what they should target and focus on. The concept of small car segment or cheap car is not latest. Henry Ford had a similar vision as Tata Nano back in 1908 and he came out with MODEL-T in that year. This can

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

Of the top 10 automobile manufacturers globally, in 2014, America is represented 3 times, by Ford, General Motors and Fiat-Chrysler. The two top selling manufacturers, Toyota and Volkswagen Group are Japanese and German respectively (“Leading automobile manufacturers”, 2015). This indicates that there is significant, global competition and that competition is currently better placed than the American manufacturers. The primary competitors are currently Japanese, German, French and Italian (“Leading automobile manufacturers”, 2015).

Tata Motors Limited is one of the India's largest multinational automobile manufacturing company with 42 billion USD turnover. The company is a leader in development of commercial vehicles, such as sports vehicles, trucks, defense vehicles and cars. Tata Motors is part of the Tata group of companies founded in 1868 by Jemsetji Tata. The company is mainly located at India, Italy, Korea and UK. It has sales in more than 175 countries around the globe.

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

No sooner Telco announce the bunch of its Indicadeclded to slash its profit margins by cutting vehicle prices. At that point of time, the introduction of small cars like Santro, Maruti and Nano gradually improves its market share. The general expectation is that the Indian auto Industry’s will undergo tremendous market to imports and development of local assembly by leading MNCS. To meet the challenges ahead, vehicle manufactures will have to strive to cut costs further, improve productivity, enhance market orientation and successfully create a high level of consumer loyalty. The ultimate success of a car manufactures is depending on one important factor now for the

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.

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

India is a developing country with an emerging automobile sector that grew rapidly over the past few years. It has become Eleventh largest passenger car producer. India is the largest democracy in the world. Recently Indian Government also came up with their ‘Auto Policy’ and the vision of this policy is “To establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010.” The Indian automotive industry has already attained a turnover of Rs.1, 65,000 crore ($34 billion USD). The contribution of the automotive industry to GDP has risen from 2.77% in 1992- 93 to 5% in 2005-06. The auto companies have a manufacturing capacity of over 95 vehicles per annum. Foreign

Today Tata Motors ranks as the world’s fifth-largest manufacturer of medium and heavy trucks—it has a 61 percent domestic market share in this segment—and has taken the number-two position for sales of passenger vehicles in the Indian market. It has also built a significant global presence, both through sales efforts in overseas markets (such as the former Soviet republics, the Middle East, South Africa, South Asia, and Turkey) and through acquisitions such as the takeover of Daewoo’s commercial-vehicle business in South Korea and the purchase of a 21 percent stake in the Spanish bus

This part incorporate the profile of Indian Automobile industry and Theoretical background of the study