TATA Motors Automobile Ind

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    Automobile Industry

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    Subject: SFI II

    Submitted to: Prof. Rashmi Menon

    Submitted by: Name Roll No.

    Group - II Amit Joshi 06

    Chhaya Navdiya 14

    Payal Sevak 25

    Mahek Shah 28

    Manan Shah 29

    Niraj Thaker 33

    SLIMS / PGP III:SEM VI(EVE)/GROUP - II

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    4

    Indian

    AutomobileIndustry

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    he Growth Journey

    Pre 1983 1983-1993 1993-2007

    Era of

    globalisationand

    evolution of

    India as a

    global

    manufacturinghub

    Closed market

    Growth of market

    limited by supply

    Outdated models

    Players

    Hindustan Motors

    Premier

    Telco Ashok Leyland

    Mahindra &

    Mahindra

    Japanisation - GOI-

    Suzuki joint venture to

    form Maruti Udyog

    Joint ventures with

    companies in

    commercial vehicles

    and components

    Players

    Maruti Udyog

    Hindustan Motors

    Premier

    Telco

    Ashok Leyland

    Mahindra & Mahindra

    Delicensing of

    sector in 1993

    Global major

    OEMs start

    assembly in India

    (Toyota, GM, Ford,

    Honda, Hyundai)

    Imports allowed

    from April 2001;

    alignment of dutyon components and

    parts to ASEAN

    levels

    Implementation of

    VAT

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    Facts

    Second Largest two wheelermanufacturer in the world

    Largest tractor and three

    wheeler manufacturers in the

    world

    Fourth largest Commercial

    vehicle market in the worldEleventh largest passenger car

    market in the world

    Trends

    Growth of exports of 32.8 %FY 2008-09.

    Output of commercial vehicles

    has grown 2.8 times compared

    to the 2.2 times increase in

    passenger cars

    For every passenger car turnedout, there are almost 7 two-

    wheelers produced

    Growth Potential

    Can become Worlds third largest automobile market in 2030.

    By 2016, Automotive sector can DOUBLE its percentage contributionto GDP from current levels of 5% (US$50 billion) to 10% ($180billion).

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    Automotive Companies in India

    Major Indian Companies Major Multi-national companies

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    Tata Group100 companies throughout 7 business sectors

    Engineering, materials, energy, chemicals, services,

    consumer products, information systems and

    communicationsTata Auto Comp Systems - Automotive

    Tata Steel - Materials

    Tata Power - Energy

    Rallis India - Chemicals

    Tata Realty and Infrastructure - ServiceTata Tea - Consumer Products

    Tata Technologies - Information Systems and

    Communications

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    Tata Motors Limited

    Tata Motors Ltd (TML) was incorporated in 1945 and

    is India's largest automobile Company.

    TML is the leader in commercial vehicles and

    passenger vehicles segments with winning productsacross compact, midsize car and utility vehicle

    segments.

    TML is the world's fourth largest truck manufacturer,

    and the world's second largest bus manufacturer withits manufacturing units spread across India -

    Jamshedpur, Pune, Lucknow , Pantnagar and

    Dharwad; one new plant under construction for Nano

    cars at Sanand (Gujarat).

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    TML has a strategic alliance with Fiat since 2005 at

    Ranjangaon (Maharashtra) to produce both Fiat, Tatacars and Fiat power trains.

    TMLs dealership, sales, services and spare parts

    network comprises over 3,500 touch points

    TML also distributes and markets Fiat branded cars in

    India. TML's commercial and passenger vehicles are

    marketed across Continents like Europe, Africa, the

    Middle East, South East Asia, South Asia and South

    America.

    TML has a franchisee/joint venture assembly

    operations in Kenya, Bangladesh, Ukraine, Russia,

    Senegal and South Africa.

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    VisionTo be best in themanner in whichwe operate, bestin the productswe deliver, andbest in our valuesystem andethics

    MissionTo become a worldclass automotiveengineering and

    productdevelopmentcentre, and enable

    Tata Motors tobecome a worldclass automotivecompany

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    Core ValuesIntegrity Fair &transparent businessUnderstanding Caring,compassionate and humaneExcellence Strive toachieve highest possibleUnity Work cohesivelywith colleagues and groupsResponsibility Sensitiveto countries, communitiesand environment

    PurposeCommitted to qualityof lifeStriving for globalcompetitiveness

    Pay back to societyespecially customers,employees,shareholders and thecommunity

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    Tata MotorsOperations

    India

    UK

    SouthKorea

    Thailand

    Spain

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    Tata Motors -Products

    CommercialVehicles

    Passenger

    Vehicles

    Midsize car

    Utilityvehicle

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    Products PASSENGER CARS Indica Vista, Indica V2 Xeta,

    Indigo Manza Indigo CS, Indica V2, Nano, Fiat Cars

    UTILITY VEHICLES Aria, Safari DICOR, Sumo

    Grande MK II, Xenon XT TRUCKS Medium & heavy commercial vehicles,

    Intermediate commercial vehicles, LCVs, SCVs,

    Prima, TL 4*4, Construx

    COMMERCIAL PASSENGER CARRIERS Buses,

    Winger, Magic

    DEFENCE VEHICLES

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    22

    Management Structure

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    SWOC Analysis

    Strength

    Experience

    Micro environment

    Business model

    Resource & capabilities Culture

    Weakness

    Value chain

    Distribution

    Macro environment

    Opportunity

    ExportNew products

    New markets

    Acquisition & mergers

    Challenges

    Free Market Low barriers

    Globalization ofeconomy

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    BCG Matrix

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    Porters Five Forces

    Medium

    HighLow

    Low

    Low

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    Stakeholder Engagement

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    Value Chain & Value System

    Inbound

    Logistics

    Opera

    tions

    Marketing

    S

    ervice

    Outbound

    Logistics

    Suppliers , Contractors

    SAP , VCM

    SAP , CRM - DMS

    Strategic Alliances

    Dealer Network,

    Marketing ResearchFirms, Vehicle Financing

    Regional Warehouses,Dealer Workshops,Distributors, TASS

    27

    T

    ra

    nsporters,C

    onvoyDrivers Association

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    Organizational Resources

    28

    Process Approach EPM (derived

    from APQC

    processes and

    TBEM model.

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    17

    100

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    30

    The Enterprise

    Process Model

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    How did TATAcreate initial resource complement toovercome the disadvantage of being newcomers in passenger

    car business?

    STRATEGY INSTITUTIONS

    Government support(10Year Plan)

    New institutions for tradepromotion, technologyup-gradation, quality

    enhancement (ACMA:Automotive Component

    ManufacturersAssociation, SIAM:Society of Indian

    Automobile

    Manufacturers )

    R&D

    Acquisitions

    Strategic partnerships

    Joint ventures

    Intensive managementdevelopment

    Leveraging the resources

    32

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    Key Strategies

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    i

    International strategy based on thecompetitive advantage:

    New product (eg. Tata Nano, the cheapest car inthe World).

    Acquisitions (eg. Land Rover and Jaguar brandsfrom Ford Motors).

    Partnership with established companies (eg.Alliance with Fiat since 2006) to enhance theproduct portfolio and knowledge exchange.

    Facilities for learning from other companies.Developing programmes forintensive management development.

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    Consolidate position in Indiaby exploiting opportunities:

    New mobility of youngIndians.

    Governments substantialroad-building program

    GDP growth

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    37

    Business strategy

    Commercialvehicles

    -

    Maintain and grow leadership inIndia through continuous evaluation

    of product range

    Improve value proposition for

    existing products

    New launches to fill gap inproduct portfolio

    Continuous innovation to create

    new market segments

    Grow in international markets

    Enhance product rangecombining TML, TDCV, Tata

    Motors Thailand and Hispano

    Expand manufacturing footprint

    - South Africa

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    Business strategy

    Passenger cars Leverage young productportfolio to regain market

    position Expand addressable market

    through improved valueproposition eg. Powertrainoptions

    Seed longer-term growth byexploiting emerging trends -

    alternative fuels (Electric Vistaetc)

    Supplement technology andproducts from partners Take Nano to the world

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    Focus on select key markets forinternational growth Grow used car business (TataAssured) Aggressive plans to furtherexpand sales and service networkin India for enhanced customercare

    Leverage the low cost base andcreate more value Sustain low cost base withcontinuous cost reduction efforts

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    A Company that

    cares about thefuture

    Committed tocorporate socialresponsibility

    Signed the UnitedNations Global

    Compact Plays role in communitydevelopment

    Environmentally-

    friendly products andtechnology

    Cleaner Engines

    Advanced emission-testing labs

    Developing alternatefuel engines

    Two main concerns:

    Reduction of pollution

    Restoration ofecological balance

    Implemented soiland waterconservationprograms

    Sewage treatmentfacilities

    Encourages treeplanting

    India RecyclingCulture

    Value in discardedproducts

    Europe Throw-away culture

    European ELVDirective

    CommunityDevelopment

    Community ServiceDivision

    Promote economicindependence

    Self-initiatedcottage industries

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