Tata Motors Going Global

The company expects to deal in both import and export transactions, in a combination of documentary letter of credit and open account transactions. Its primary markets will be the United States, China, India and possibly a foray into the European Union through Ireland.

The Tata Group founded its roots in Indian history almost a hundred years prior to its independence from England. It was established in 1868 as a trading firm by Jamsetji Tata in Bombay. (Tata, 2012). A single textile mill marked the journey of business prosperity for the Tata generations in 1874 during the time of the British Raj. Even till today, the Parsi group has always retained ownership. With its ancestral roots in the Zoroastrian community, Tata Group has been the creator of entire industries in India. Before the arrival of independence in the Indian realm, the Tata brand was synonymous to being a pioneer across a spectrum of versatile and diverse market segments. From the first luxury hotel (1903), first airline (1932), the first private steel company (1907), and the first national software entity (1968), the Tata name is one revered in Indian society.

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.

The decision to expand into the Indian market by investing in production facilities must be supported by the desired market entry strategy, in conjunction with market requirements, expected demand profile and the regional manufacturing footprint (ref Figure 3).

The auto industry adopted new globalization trends that could steer the restructuring of global manufacturing in order to meet the challenges of global economies. There was the need to improve on efficiency and maintain a competitive level in the automobile industry. Automotive manufacturers from Asia, Europe, and the US adopted global trends such as integrating low- income countries into the global division of labor. The aim of the automobile industry in adopting globalization was to enable it shift from the economies of scale to the economies of scope. The industry started focusing more on manufacturing capabilities that could enable it meet the increasing marketing demands. The rapid changes in technology-forced automakers

At the beginning of twenty centuries until now the American auto industry has been growing and in demand. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerges as the “Big Three” auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980. And Americans dominated the industry in the first half of the twentieth century. Hence, from the

Companies like Tata Motors and similar industries from emerging countries often face many challenges at one phase, but there are various strategies they can use to compensate their disadvantages and rather gain the advantages from the developing markets and have a prospect to become a global force.

The distribution channel for Tata motors is simple. There are no Clearing and forwarding agents involved. After the production of car, they are transported directly to the dealers in different regions.

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

The distribution channel environment for automobiles in India is different from that of most advanced countries. These differences exist in number of dealers, size and type of dealers, functions of dealer, manufacturer-dealer relationship, car supermarkets, vertical integration, bookings, financing, number of cars sold per dealer, margins, and market environment. Because customer has wide choice, most car dealers would have to adjust to the as per the need of the customer.

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.

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.

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 founded in 1945, headquarter in Mumbai, India. It has 4500 engineers, research and development centre in India, Italy, Spain, UK, and South Korea. it has worldwide network.

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging