Tata Motors : The World's Cheapest Car Priced

Tata motors have alliance with key players of the automotive market in the respective market. Fiat Company manufacturing the engines for Tata passenger cars.

In 2008, Tata motors had completed acquisition of the two British brands Jaguar and Land Rover from US based ford motors for 2.3 billion.

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.

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.

Tata Motors on June 02, 2008 acquired the Jaguar Land Rover business from the Ford Motor Company for a net consideration of $2.3 billion.

By adding two competences by both companies the risk of failure will be less. Since Tata was formed in 1945 they have had agreements with other companies to help benefit the company. In 1954 Tata Motors entered a 15 year agreement with Daimler-Benz AG to make medium size commercial vehicles. In 1985 they made hydraulic excavators with Japan Hitachi. Cummins Engine entered a joint agreement with Tata Motors in 1993 to make high horsepower and low emission diesel engines for their cars. Tata Motors went into another joint venture with Daimler-Benz to manufacture Mercedes-Benz passenger cars for the Indian people. India’s first off road vehicle, the Tata Safari was in need for a turbocharger along with a Cummins diesel engine in 1998, so Tata Motors signed a joint venture with Tata Holset from the United Kingdom. Tata Motors have begun a partnership with Bharat Forge and General Dynamics Land Systems in March 2016. These companies bring in their own expertise that will help both companies. Tata Motors strengths are in design and development while Bharat Forge’s will bring strong manufacturing. They have put together $11 billion for a project to create combat vehicles.

But that was 2008 where those perception existed and today Jaguar Land Rover is contributing 50% of the overall profits of Tata Motors. All the stories and rumors were put to rest when the £400m engine plant in the Midlands was announced that would potentially create up to 2,000 jobs in England and not India as feared.

Tata Motors, likewise recorded in the New York Stock Exchange (September 2004), has developed as a worldwide car organization. Through backups and partner organizations, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, gained in 2008. In 2004, it gained the Daewoo Commercial Vehicles Company, South Korea's second biggest truck creator. The rechristened Tata Daewoo Commercial Vehicles Company has dispatched a few new items in the Korean business, while additionally sending out these items to a few global markets. Today 66% of substantial business vehicle fares out of South Korea are from Tata Daewoo. In 2006, Tata Motors shaped a 51:49 joint endeavor with the Brazil-based, Marcopolo, a worldwide pioneer in beefing up for transports and mentors to make completely fabricated transports and mentors for India - the plant is situated in Dharwad. In 2006, Tata Motors went into joint endeavor with Thonburi Automotive Assembly Plant Company of Thailand to fabricate and market the organization's pickup vehicles in Thailand, and entered the business in 2008. Tata Motors (SA)

Tata Motors is branded as India’s largest automobile producer. It had an consolidated revenue of Rupees 262796 Crores for the financial year of 2014-15. The company has over 60000 employees who contribute to the betterment of the brand.

The mode of transportation we use most today is the personal vehicle. “Henry Ford’s dream of everyone having a personal car has almost come true. Cars have become a status symbol in many society and the more cars you have the richer you appear.” (Chauhan 2016) Tata Group is a global enterprise, which was founded by Jamsetji in 1868. Their headquarters are in India. “There are 29 publicly-listed Tata enterprises with a combined market capitalization of about $134 billion (as on March 31, 2015). Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.” (Tata 2016) Tata Motors is one of

TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.

India is one of the most significant emerging car markets in the world today. Leading

The presentation lacked three points that would have helped us make a better evaluation on Tata’s global strategy and helped their presentation be more credible. Firstly, the presentation did not address the different car models that currently exist and ones that Tata plans to launch in the future. As Tata goes into the United States and European market, the cars do not have to be at the $2,500 price point since the lowest car prices in United States, for example, is about $9,000. Considering this, Tata can add more necessary features and increase their price (and margins) by charging between $5000 and $9,000. Second thing that the presentation could have addressed is the synergies Tata can obtain from their Jaguar and Land Rover business, in terms of distribution channels, international markets, etc. At the same time, the negative impacts a low end Tata Nano will have on Tata’s high end Jaguar and Land Rover needed to be mentioned. Thirdly, the presentation needed to compare Tata to one of its competitors, Sitara. Sitara was launched in Pakistan at about the same price range and targeted the same markets, competing against two wheelers. Pakistan’s consumer behavior is similar to that of India, so by studying why Sitara only sold about 500 models and failed can help us mitigate these risk and failures when launching and expanding Tata.

Giarla Consulting determined that Tata Motors is an overall strong company that has found strength and expansion through its parent company, Tata Group, but also through numerous acquisitions and mergers. Although Tata Motors stock prices have plummeted since the financial crisis of 2008. They are reporting that their strong presence in India, as a lead commercial vehicle manufacturer in all three vehicle segments; compact, midsize and SUV’s. Resulting in a profitable company and an industry

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