TATA Motors Automobile Ind

8/7/2019 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Outdated models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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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

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T

ra

nsporters,C

onvoyDrivers Association


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Organizational Resources

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Process Approach EPM (derived

from APQC

processes and

TBEM model.


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17

100


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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

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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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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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Documents

TATA Motors Automobile Ind