ASSIGNMENT ON

BUSINESS POLICY & STRATEGY ANALYSIS

COMPANY ANALYSIS OF

TATA MOTORS

Submitted To: Submitted By:Prof. Amit Sareen Ashish Sharma-17010

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TABLE :

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Serial No.

Name Page No.

1) Automobile Industry In Brief 2 - 42) Landmark of Indian Automobile Industry 5 - 63) Automobile Industry of India 7 - 84) Tata Motors History 9 - 105) Five Phase of Tata Motors 11 - 176) Analysis of Tata Motors by Different Models 18 - 207) Corporate Social Responsibility 21 - 22

Automobile History in brief

History of the automobile begins as early as 1769, with the creation of steam-powered automobiles capable of human transport in 1806.

The first cars powered by internal combustion engines running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline or petrol-fueled internal combustion engine.

TOP 10 MOTOR Vehicle Producing Countires in World: 2009 (Source: OICA Report)

Rank Country Name Total Production of Vehicles

NO. 1 CHINA 13,790,994 NO. 2 JAPAN 7,934,516 NO. 3 US 5,711,823 NO. 4 GERMANY 5,209,857 NO. 5 SOUTH KOREA 3,512,916 NO. 6 BRAZIL 3,182,617 NO. 7 INDIA 2,632,694 NO. 8 SPAIN 2,170,078 NO. 9 FRANCE 2,049,762 NO.10 MEXICO 1,557,290

806 Millions Cars & Light Vehicles on Road burn over 260 billion gallons of gasoline and diesel fuel yearly.

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Top 20 motor vehicle manufacturing companies by Volume 2009:

SERIAL NO. GROUP NAME TOTAL MOTOR VEHICLE PRODUCTION1 Toyota 7,234,439 2 G.M. 6,459,053 3 Volkswagen 6,067,208 4 Ford 4,685,394 5 Hyundai 4,645,776 6 PSA 3,042,311 7 Honda 3,012,637 8 Nissan 2,744,562 9 Fiat 2,460,222 10 Suzuki 2,387,537 11 Renault 2,296,009 12 Daimler AG 1,447,953 13 Chana Automobile 1,425,777 14 B.M.W. 1,258,417 15 Mazda 984,520 16 Chrysler 959,070 17 Mitsubishi 802,463 18 Beijing Automotive 684,534 19 Tata 672,045 20 Dongfeng Motor 663,262

GLOBAL AUTOMOBILE CONSOLIDATION!!!!! More than 50 Major Brands are Available in Global Automobile Industry.

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Landmark of Indian Automobile industry :

1897 -First Person to own a car in India – Mr. Foster of M/s Crompton Greaves Company, Mumbai.

1901 -First Indian to own a car in India - Jamsedji Tata. 1905 -Fiat Motors 1928 -Chevrolet Motors 1942 -Hindustan Motors 1944- Premier Automobiles Ltd. 1945 -Tata Motors 1947- Mahindra & Mahindra Ltd. 1948 -Ashok Motors 1948- Standard Motors 1974 -Sipani Motors 1981 -Maruti Suzuki 1994 -Rover Company 1994 -Mercedes-Benz 1994 -General Motors India-Opel 1995 -Ford Motor Company 1995- Honda Siel Cars India 1995 -REVA Electric Car Company 1995 -Daewoo Motors 1996 -Hyundai Motor Company 1997 -Toyota Kirloskar Motors 1997 -Fiat Motors (Re-Entry) 1998 -San Motors 1998 -Mitsubishi Motors 2001 -Škoda Auto 2003 -General Motors India - Chevrolet 2005 -BMW 2007 -Audi 2009- Land Rover and Jaguar

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AUTOMOBILE INDUSTRY OF INDIA :• In February 2009, monthly sales of passenger cars in India

exceeded 100,000 units • 2nd largest two-wheeler market, • 11th largest Passenger Cars producers. • 4th largest in Heavy Trucks.• 2nd largest tractor manufacturer annual production of over

2.3 million units.• The monthly sales of passenger cars in India exceed

100,000 units.

Different Divisions of Indian Automobile Industry

Industry classified in Three phases

1) Protection – I phase till mid80s.2) Liberalization- II phase post 1990.3) Globalization: III phase -early 2000.

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T h r e e W h e e l e r s M u l t i U t i l i t yV e h i c l e s

C o m m e r c i a lV e h i c l e s

P a s s e n g e rC a r r i e r s

G o o d sC a r r i e r s

P a s s e n g e rC a r s

M o t o r C y c l e s S c o o t e r s M o p e d s

T w o W h e e l e r s

I n d i a n A u t o m o b i l e I n d u s t r y

Gross Turnover of Automobile Sector in India:

Segment wise Market Share in 2009- 10

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Commercial vehicles

TATA Motors, Ashok Leyland, Swaraj Mazda, Mahindra & Mahindra ,Force motors, Eicher Motors

Passenger vehicle

TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & Mahindra, Daimler Chrysler, Hindustan Motors

Two WheelerHero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors

Three Wheeler

Bajaj Auto, Piaggio India

The pie chart below illustrates the market share for 2007-2008 in percentages.

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MARUTI Leader in Small Car Segment. MAHINDRA & MAHINDRA Leader in SUV Segment. In India Tata ranks as the leader in every commercial vehicle

segment, and is in the top 3 makers of passenger cars.

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History: TATA MOTORS

Started in 1945 in Mumbai, India.

Headquartered in Mumbai, India.

It is Part of 60 Billion $ Tata Group.

It was formerly known as TELCO (TATA Engineering and Locomotive Company).

The company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.

It is India's largest company in the automobile and commercial vehicle sector with upwards of 70% cumulative market share in the domestic commercial vehicle segment, and had a 0.81% share of the world market in 2007, according to OICA data.

The OICA ranked it as the 19th largest automaker, based on figures for 2007 and the second largest manufacturer of commercial vehicles in the world. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer.

The company's 24,000 employees are guided by the Vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.“

Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. On 26th April 2010, Tata Motors sold its 4 millionth Commercial Vehicle.

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The Road Ahead……………

Five Phases of TATA MOTORS

Phase 1 – Entry into passenger vehicle

Phase 2 – Launch of Indica

Phase 3 – Launch of Indica V2

Phase 4 – New Launches

Phase 5 – Tata’s Ambitious Project

Maruti’s dominance in market.

50’s -80 have closed market, dominant player being Hindustan Motors Ltd. and Premier Auto Ltd.

In 1982- Maruti-Suzuki tie up. In 1983- Maruti 800 was introduced. From 83-93, Maruti 800 had monopoly. With 92’s liberalization policy, 50% FDI was allowed.

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Phase 1: TATA MOTORS

After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle.

After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'Tata Mobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle).

Phase – 2 TATA INDICA

Entry into the compact Car segment with Launch of India’s first indigenously developed car “TATA INDICA”.

Launched in 1998. The first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the

car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry.

Market Share Comparison:

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Maruti56%

Santro22%

Matiz15%

Uno7%

Market shares till 1998

Maruti36%

Santro27%

Matiz12%

Uno7%

Indica18%

Market shares after Indica launch, Dec. '99

Phase 3: Tata Indica V2.

Failure of Indica and Subsequent launch and Success of Tata Indica V2.

A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite.

Phase 4 : New Launches

New Launches—Tata Novus

New launches– Tata Safari DiCOR

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New Launches – Tata Ace

Tata Ace, India's first indigenously developed sub-one ton mini-truck was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace.

Compressed air car: Tata One CAT Motor Development International of France has developed the world's first prototype of a compressed air car, named One CAT. In 2007, MDI owner Guy Negre was reported to have "the backing of Tata".

Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric

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Indica would be launched locally in India in about 2010, without disclosing the price.

GLOBAL OPERATIONS:The Tata Safari DiCOR is one of Tata's bestselling vehicles in India and also has been fairly successful in the Mediterranean and Eastern Europe.

Tata has tried to revamp all its models in order to satisfy the consumer

The purchase of Jaguar and Land Rover is expected to help give Tata Motors gain a foothold in the European and American markets.

Tata relies on its subsidiaries for sales outside India. Range Rover Sport.

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Tata Xenon is Tata's bestselling vehicle in Europe.

Phase 5 – Tata’s Ambitious Project

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Subsidiary Brands:

In 2004 it acquired Tata Daewoo Commercial Vehicle, and in late 2005 it acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company. It has formed a joint venture with Marco polo of Brazil, and introduced low-floor buses in the Indian Market. Recently, it has acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names.

Joint Ventures:

Tata Marco Polo released this low-floor bus in India and now it is widely used as public transport in Delhi, Mumbai, Bangalore

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and Lucknow.Tata Motors has formed a 51:49 joint venture in bus body building with Marco polo of Brazil. .

Porter's 5 Forces Model

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SWOT ANALYSIS

STRENGTHS:• CONSOLIDATED net profits of Rs 1988.73crores for the

quarter ended June30, 2010 on the back of strong sales in the domestic market and a good show of J&LR.

• A strong faith of Indian people in Tata brands.• 3rd largest car seller in passenger car vehicles.• A group global sale grows by 36% at 90,646 vehicles in July

2010.• Market leader in commercial vehicles.• 4th largest truck manufacturer.• 2nd largest bus manufacturer.• In cities, the Nano is emerging the vehicle of choice for daily

commuting because of its agility, practically and fuel efficiency.

WEAKNESSES:• Cases of fire in Nano Cars.• Image of Taxi for Tata Indica.• Less no of service station as comparison to Maruti Suzuki.

OPPORTUNITIES:• Fastest growing market for small cars in India.

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• Positive business outlook for both commercials and

passengers vehicles in the Indian market would give a boost to Tata Motors ‘Indian operation.

• Crisil raised its long term debt rating to AA-.• Reflecting an improvement in the ability of the Auto Major to

repay loans.

THREATS: • Entries of foreign players in Indian automobile sector.• Stiff competition from Maruti Suzuki and Hyundai.

COMPETITIVE PROFILE MATRIX

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NOTE: The ratings are as follows:

4=major strength3=minor strength2=minor weakness1=major weakness

INNOVATION STRATEGIES

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CRITICAL SUCCESS FACTOR WEIGHT RATING SCORE

Market Share .15 4 .6

Product Quality .15 4 .6

Management .08 3 .24

Financial Position .08 3 .24

Global Expansion .07 2 .14

Advertising .05 1 .05

Customer Service .08 2 .16

Price Competitiveness .12 3 .36

Customer Loyalty .06 2 .12

Sales Distribution .07 2 .14

Production Capacity .09 2 .18

Total =1.00 2.83

Major strategy of Tata motors is its ability to exploit information technology. For e.g. In case of Tata nano it was an early adopter of CAD and CAM systems to speed design of Tata nano.

Strategy of outsourcing noncore activities, it has outsourced its IT technology to Tata tech. ltd. And its IT infrastructure to IBM.

In TATA SAFARI 4*4 DICOR it has installed “reversed guide system” i.e. weather proof camera is fixed to rear car to help driver while reversing car.

PRICING STRATEGY- giving discount every month & special promotion technology.

CSR Activities :

The Company has streamlined its CSR activities into four focus areas of Health, Employability, Education and Environment

HEALTH

Villagers receiving free health check-up and medicines from the Mobile Medical Van in Luck now project area and Eye testing and distribution of spectacles to the villagers in Shive village, Pune .

ENVIORNMENT

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In view of the threat to environment, the Tata Group places a

special emphasis on environmental and ecological issues.

Over 175,242 saplings have been planted with a 80% survival rate. Smokeless chullahs constructed to promote use of environment-friendly practices

In Jamshedpur, 85 acres of land has been brought under irrigation and tree plantation has extensively been carried out in over 152 acres.

EMPLOYABILITY & EDUCATION

Tata Motors facilitated the establishment of Tata Motors Grihini Social Welfare Society (TGU) to develop opportunities for entrepreneurship development and income generation among women from employee families, ensuring a balance between their engagement in these activities and their family responsibilities.

Reference:

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Ministry of Heavy Industries & Public Enterprises

(Department of Heavy Industries), Government of India Automobileindia.com Businessline.com Tata Motors Annual Report Open Web Search.

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