Tata Motors Limited is India’s largest automobile company

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INTRODUCTION

Tata Motors Limited is Indias largest automobile company, with consolidated

revenues of Rs.1,23,133 cores (USD 27 billion) in 2010-11. 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. The

company is the world's fourth largest truck manufacturer, and the world's third largest

bus manufacturer.

The company's 23,000 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."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth

of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in

1954. The company's manufacturing base in India is spread across Jamshedpur

(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand)

and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set

up an industrial joint venture with Fiat Group Automobiles at Ranjangaon

(Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company

is establishing a new plant at Sanand (Gujarat). The companys dealership, sales,

services and spare parts network comprises over 3500 touch points; Tata Motors also

distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New

York Stock Exchange (September 2004), has also emerged as an international

automobile company. Through subsidiaries and associate companies, Tata Motors has

operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land

Rover, a business comprising the two iconic British brands that was acquired in 2008.

In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's

second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles

Company has launched several new products in the Korean market, while also


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exporting these products to several international markets. Today two-thirds of heavy

commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata

Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach

manufacturer, with an option to acquire the remaining stake as well. Hispanos

presence is being expanded in other markets. In 2006, it formed a joint venture with

the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to

manufacture fully-built buses and coaches for India and select international markets.

In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly

Plant Company of Thailand to manufacture and market the company's pickup vehicles

in Thailand. The new plant of Tata Motors (Thailand) has begun production of the

Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports

since 1961. The company's commercial and passenger vehicles are already being

marketed in several countries in Europe, Africa, the Middle East, South East Asia,

South Asia and South America. It has franchisee/joint venture assembly operations in

Kenya, Bangladesh, Ukraine, Russia and Senegal.

Tata has enjoyed the prestige of having developed Tata Ace, Indias

first indigenous light commercial vehicle; Tata Safari, Indias first

sports utility vehicle; Tata Indica, Indias first indigenously

manufactured passenger car; and the Nano, the worlds least

expensive car. A full timeline of Tata Motors Limited is supplied in

Appendix A.

The foundation of the company's growth over the last 50 years is a deep

understanding of economic stimuli and customer needs, and the ability to translatethem into customer-desired offerings through leading edge R&D. With over 2,000

engineers and scientists, the companys Engineering Research Centre, established in

1966, has enabled pioneering technologies and products. The company today has

R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain,

and the UK. It was Tata Motors, which developed the first indigenously developed

Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in 1998, the Tata

Indica, India's first fully indigenous passenger car. Within two years of launch, Tata

Indica became India's largest selling car in its segment. In 2005, Tata Motors created


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a new segment by launching the Tata Ace, Indias first indigenously developed mini-

truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India

and the world have been looking forward to. The Tata Nano has been subsequently

launched, as planned, in India in March 2009. A development, which signifies a first

for the global automobile industry, the Nano brings the comfort and safety of a car

within the reach of thousands of families. The standard version has been priced at

Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous

leg space and head room. It can comfortably seat four persons. Its mono-volume

design will set a new benchmark among small cars. Its safety performance exceeds

regulatory requirements in India. Its tailpipe emission performance too exceeds

regulatory requirements. In terms of overall pollutants, it has a lower pollution level

than two-wheelers being manufactured in India today. The lean design strategy has

helped minimize weight, which helps maximize performance per unit of energy

consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that

the car has low carbon dioxide emissions, thereby providing the twin benefits of an

affordable transportation solution with a low carbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile

industry, in keeping with its pioneering tradition, by unveiling its new range of world

standard trucks. In their power, speed, carrying capacity, operating economy and

trims, they will introduce new benchmarks in India and match the best in the world in

performance at a lower life-cycle cost.

In June 2009, the exciting new range of premium luxury vehicles from Jaguar and

Land Rover were introduced for the Indian market. These include the Jaguar XF, XFR

and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover.

The years to come will see the introduction of several other innovative vehicles, all

rooted in emerging customer needs. Besides product development, R&D is also

focusing on environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive


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solutions, construction equipment manufacturing, automotive vehicle components

manufacturing and supply chain activities, machine tools and factory automation

solutions, high-precision tooling and plastic and electronic components for

automotive and computer applications, and automotive retailing and service

operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit

to Corporate Social Responsibility. It is a signatory to the United Nations Global

Compact, and is engaged in community and social initiatives on labour and

environment standards in compliance with the principles of the Global Compact. In

accordance with this, it plays an active role in community development, serving rural

communities adjacent to its manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent

future.

Tata Motors Limited is a multinational automotive corporation headquartered in

Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA

Engineering and Locomotive Company).

Tata Motors is Indias largest automobile company, with consolidated revenues of

USD 20 billion in 200910. It is the leader in commercial vehicles and among the top

three in passenger vehicles. Tata Motors has products in the compact, midsize car and

utility vehicle segments. The company is the world's fourth largest truck

manufacturer, the world's second largest bus manufacturer, and employs 24,000

workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4

million vehicles in India.

Established in 1945, when the company began manufacturing locomotives, the

company manufactured its first commercial vehicle in 1954 in a collaboration with

Daimler-Benz AG, which ended in 1969.

Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as

well as on theNew York Stock Exchange. Tata Motors in 2005, was ranked among

the top 10 corporations in India with an annual revenue exceeding INR320 billion. In

2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most

valuable brand' in an annual survey conducted by Brand Finance and The Economic
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Times.

Tata Motors has auto manufacturing and assembly plants inJamshedpur, Pantnagar,

Lucknow, Ahmedabad, Sanand, Dharwad and Punein India, as well as in Argentina,

South Africa and Thailand.

Today Tata Motors is the world's second largest bus manufacturer with the most

complete range of transit vehicles that meet every need that arises in our day-to-day

travel. It has continued to be the leader in this segment not just by setting

technological benchmarks but also by adapting innovations effectively to suit Indian

travel conditions. It manufactures a variety of premium buses and coaches that

cater to the entire gamut of utility vehicles and applications, from luxurious

inter-city travel options to safe transport choices for school going children. While

fully built buses come in a wide range from 12 seaters to 67 seaters, Chassis

options vary from 4 tonne GVW (5m length) to 16 tonne GVW (12m length).

So whether you want to ensure that your child reaches school safely or wish to take

your family out on a holiday trip to the nearby hotspot, buses from Tata Motors

guarantee a journey that is pleasant and comfortable. No wonder that with trendy,

durable and innovative features, the vehicles are the first choice for city and inter-city

commuters, for children on their way to school and for travelers who seek optimum

luxury during their journey.

We keep all your transit needs in mind through a variety of options and configurations

in our range of buses.
http://en.wikipedia.org/wiki/Jamshedpurhttp://en.wikipedia.org/wiki/Jamshedpurhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Sanandhttp://en.wikipedia.org/wiki/Dharwadhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Jamshedpurhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Sanandhttp://en.wikipedia.org/wiki/Dharwadhttp://en.wikipedia.org/wiki/Pune


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History

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons.

The company was established in 1950 as a locomotive manufacturing unit and later

expanded its operations to commercial vehicle sector in 1954 after forming a joint

venture with Daimler-Benz AG of Germany. Despite the success of its commercial

vehicles, Tata realized his company had to diversify and he began to look at other

products. Based on consumer demand, he decided that building a small car would be

the most practical new venture. So in 1998 it launched Tata Indica, India's first fully

indigenous passenger car. Designed to be inexpensive and simple to build and

maintain, the Indica became a hit in the Indian market. It was also exported to Europe,

especially the UK and Italy. The oldest Indian state transport under taking is "North

Bengal State Transport Corporation" founded by the Raj Durbar regime in the year

1945, the 1 April.With three buses and three trucks.Is still vibrant and running

providing service to hundreds of commuters of North Bengal region of West Bengal.

link nbstc.co.in

Tata Motors Limited is Indias largest automobile company, with revenues of

35,651.48crore (US$7.95 billion) in 200708. It is the leader in commercial vehicles

in each segment, and among the top three in passenger vehicles in India with products

in the compact, midsize car and utility vehicle segments. Tata vehicles are sold

primarily in India, and over 4 million Tata vehicles have been produced domestically

since the first Tata vehicle was assembled in 1954. The companys manufacturing

base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow

(Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a

strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat

Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars

and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat).

Tata's dealership, sales, service and spare parts network comprises over 3500 touch

points. Tata Motors also distributes and markets Fiat branded cars in India.
http://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Tata_Sonshttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Tata_Indicahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Tata_Sonshttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Tata_Indicahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollar


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Acquisitions

In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as

Tata Daewoo Commercial Vehicle, in South Korea.

In 2005, Tata Motors acquired 21% ofAragonese Hispano Carrocera giving it

controlling rights of the company.

In 2007, Formed a joint venture with Marcopolo of Brazil and introduced low-floor

buses in the Indian Market.

In 2008, Tata Motors acquired British Jaguar Land Rover(JLR), which includes the

Daimler and Lanchester brand names.

In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering

company Trilix for a consideration of 1.85 million. The acquisition is in line with the

companys objective to enhance its styling/design capabilities to global standards.

Subsidiary brands

Jaguar

Tata Daewoo Commercial Vehicle

Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the

Daewoo Commercial Vehicle Company of South Korea. The reasons behind the
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acquisition were:

Company's global plans to reduce domestic exposure. The domestic commercial

vehicle market is highly cyclical in nature and 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. Since the domestic

commercial vehicle sales of the company are at the mercy of the structural economic

factors, it is increasingly looking at the international markets. The company plans to

diversify into various markets across the world in both MHCV as well as LCV

segments.

To expand the product portfolio Tata Motors recently introduced the 25MT GVW

Tata Novus from Daewoos (South Korea) (TDCV) platform. Tata plans to leverage

on the strong presence of TDCV in the heavy-tonnage range and introduce products in

India at an appropriate time. This was mainly to cater to the international market and

also to cater to the domestic market where a major improvement in the Road

infrastructure was done through the National highway development project.

Tata remains India's largest heavy commercial vehicle manufacturer and Tata

Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea.

Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novusand World Truck and buses namely, GloBus and StarBus.

Hispano Carrocera

In 2005, sensing an opportunity in the fully-built bus segment, Tata Motors acquired a

21% stake in Hispano Carrocera SA, the leading European bus and coach cabin

maker. In 2009, the company picked up the remaining 79% stake in Hispano

Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary.

Jaguar Cars and Land Rover
http://en.wikipedia.org/wiki/Hispano_Carrocerahttp://en.wikipedia.org/wiki/Hispano_Carrocera


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After the acquisition of the British Jaguar Land Rover (JLR) business, which also

includes the Daimler, Lanchester and Rover brands, Tata Motors became a major

player in the international automobile market. On 27 March 2008, Tata Motors

reached an agreement with Ford to purchase their Jaguar Land Rover operations for

US$2.3 billion. The sale was completed on 2 June 2008.

In addition to the brands, Tata Motors has also gained access to two design centers

and two plants in UK. The key acquisition would be of the intellectual property rights

related to the technologies.

Joint ventures

Tata MarcoPolo released a low-floor bus in India and now it is widely used as public

transport in Delhi, Mumbai, Chennai, Bangalore, Chandigarh and Lucknow.

Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of

Brazil. This joint venture is to manufacture and assemble fully-built buses and

coaches targeted at developing mass rapid transportation systems. The joint venture

will absorb technology and expertise in chassis and aggregates from Tata Motors, andMarcopolo will provide know-how in processes and systems for bodybuilding and bus
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body design. Tata and Marcopolo have launched a low-floor city bus which is widely

used by Chennai, Coimbatore, Delhi, Mumbai, Lucknow and Bengaluru transport

corporations. Its manufacturing facility is based in Dharwad.

Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel

engine technology. Tata Motors sells Fiat cars in India through a 50/50 joint venture

Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and

Iveco to other segments. Tata has also formed several JV's with many small

companies in various countries around the world.

Tata Motors Limited is Indias largest automobile company, with revenues of

35,651.48crore (US$7.95 billion) in 200708. It is the leader in commercial vehicles

in each segment, and among the top three in passenger vehicles in India with products

in the compact, midsize car and utility vehicle segments. Tata vehicles are sold

primarily in India, and over 4 million Tata vehicles have been produced domestically

since the first Tata vehicle was assembled in 1954. The companys manufacturing

base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow

(Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a

strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat

Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars

and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat).

Tata's dealership, sales, service and spare parts network comprises over 3500 touch

points. Tata Motors also distributes and markets Fiat branded cars in India.
http://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Ivecohttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Ivecohttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollar


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Sales & Service Network

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states

and 4 Union Territories of India.

Tata's global operations

Tata Motors has been in the process of acquiring foreign brands to increase its global

presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand

and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising

two struggling iconic British brands that was acquired from the Ford Motor Company

in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South

Koreas second largest truck maker. The re-branded Tata Daewoo Commercial

Vehicles Company has launched several new products in the Korean market, while

also exporting these products to several international markets. Today two-thirds of

heavy commercial vehicle exports out of South Korea are from Tata Daewoo.

In 2005, Tata Motors acquired a 21% controlling stake in Hispano Carrocera, a

Spanish bus and coach manufacturer. Tata Motors continued its market areaexpansion through the introduction of new products such as buses (Starbus & Globus,

jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly

developed with subsidiary Tata Daewoo). In May, 2009 Tata unveiled the Tata World

Truck range jointly developed with Tata Daewoo. Debuting in South Korea, South

Africa, the SAARCcountries and the Middle-East by the end of 2009 santhosh. In

2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture

fully-built buses and coaches for India and other international markets. Tata Motors

has expanded its production and assembly operations to several other countries
http://en.wikipedia.org/wiki/SAARChttp://en.wikipedia.org/wiki/SAARChttp://en.wikipedia.org/wiki/SAARC


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including South Korea, Thailand, South Africa and Argentina and is planning to set

up plants in Turkey, Indonesia and Eastern Europe.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh,

Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents.

Though Tata is present in many countries it has only managed to create a large

consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri

Lanka andNepal. Tata has a growing consumer base in Italy, Spain and South Africa.

Products
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The standard Starbus is smart in looks and big on space. The internal styling, with

superior fittings, gives space a new dimension. Incorporating high standards of

aesthetics, the buses offer the following features:

Extra aisle space for comfortable movement and greater safety Wider seats with

armrests and backrests that fit the body angle perfectly Extra legroom for greater

comfort Ergonomically designed dashboard with a simple instrument cluster Spacious

driver cabin for free movement Driving controls within easy reach Driver partition

with a large windscreen for all-round vision and a peep window for safer driving

Personalised lights for passengers Speakers for the entertainment system.


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LP / LPO 1512

Engine Cummins 6BT 5.9; Water cooled direct injection

turbocharged diesel engine

Maximum Power 101 KW (135 HP ) at 2400 rpm

Maximum Torque 490Nm at 1400-1600 rpm

Gear Box TATA G-600; 6 Forward 1 Reverse

Clutch Diameter 330 mm; Dry Single Plate

Suspension Semi elliptical leaf spring at front and rear;Hydraulic double acting telescopic type at front and rear;Anti-roll bar - front only

Tyre Size 10 R 20 -16 PR

Steering Integral hydraulic power assisted steering

Brakes Dual circuit, full air S-cam brake system with EEB fitment


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Fuel Tank Capacity 250 litres

Wheelbase 5545 mm

Front Overhang 1775 mm

Rear Overhang 3325 mm

Maximum Width 2560 mm

Overall Length 10645 mm

Turning Circle Diameter 20830 mm

Maximum Speed 87 kmph

GVW 14860 kg

Electricals Battery: 2x12 Volts, 150 Ah;Alternator Capacity: 45 Amps

LPO 1316


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Engine Cummins 6 BT

Engine Position Front

Max HP 160 hp at 2400 rpm

Max Torque 550 Nm at 1400-1700 rpmEmission Norms Euro I / Euro II

Fuel Diesel

Transmission (Gears) GBS-600

Suspension Weveller-Semi elliptical leaf spring at

front and rear, Antiroll bar at front axle

only.

Brakes Fully duplicated,full air S-CAM brake

system

Fuel Tank Capacity 250 litresSpeed 90 kmph


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Gradability 35%

Tyres 10.00 x 20 -16 PR Diagonal Ply

Drive Option Right Hand Drive/Left Hand Drive

A/C AUXILLARY ENGINE DRIVEN

No of Doors 1/2

LPO 1621

CUMMINS 6BTAA 5.9

Engine Position FRONT

Max HP 126 HP at 2500 rpm

Max Torque 430 Nm at 1675 rpm

Emission Norms Euro II

Fuel Diesel

Transmission (Gears) GBS-50/GBS 60 (Optional)Suspension Semi elliptical leaf spring at front and rear


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Brakes Dual circuit full air S-cam brake

Fuel Tank Capacity 160 litres

Speed 80 kmph

Gradability 26%

Tyres10.00 x 20-16 PR 10 R 20 RADIAL

(OPTIONAL)Drive Option Right Hand Drive

A/C Auxiliary Engine Driven

No of Doors 1/2

LP 1618

CUMMINS 6BTAA 5.9

Engine Position FRONT

Max HP 180 hp at 2500 rpm

Max Torque 646 Nm at 1500 rpm

Emission Norms Euro III


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Fuel Diesel

Transmission (Gears) Allison's Automatic Transmission

SuspensionSemi elliptical leaf spring at front and rearAntiroll bar at front axle only.Pneumaticsuspension (Optional)

Brakes Dual circuit,full air S-CAM brake systemFuel Tank Capacity 250 litres

Speed 93 kmph

Gradability 24%

Tyres10.00 x 20 -16 PR Diagonal Ply 10.00R20(Radial Tyre) Optional

Drive Option Right Hand Drive

A/C AUXILLARY ENGINE DRIVEN

No of Doors 1/2

A Comparison of Tata and Mazda School Bus Diesel BS-III 32 to 36 seat


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Air Condition


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Comparison between TATA and Mazda Buses


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8150 mm

2800mm

2200 mm

Comparison Tata and Mazda School


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2200 mm


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Some Ergonomically Designed Features of Tata School


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MAKE ANDMODEL TATA Starbus 36Seat on LP 712 SWARAJ MAZDA T3500BS3

ENGINE, DRIVELINE ANDCHASSIS 3 YEARS/ 3 LAKHKM 2Years on Engine only

PAINT 6MONTHS NA

WARRANTY


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Market Analysis of BUSES with New Trends

Summer Internship Project Report

Submitted towards Partial

Fulfillment

OfPost Graduate Diploma in Management

(Approved by AICTE, Govt. of India)

Academic Session

2010 2012

Submitted By:

AbhinandanMehrotra

BM-010004

Under the Guidance of:

Industry Guide Faculty Guide

Mr. Jayant Khosla Dr. Timira Shukla

Sales Manager Prof.IMS,GHAZIABAD

TATA MOTORS Ltd.


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Acknowledgement

We owe a lot many acknowledgements, to a lot many persons without whomthis work would not have been in its present form.

First, we thank Mr. Jayant Khosla , Sales Manager , at TATA MOTORSLtd, My Mentor PROF. Dr. Timira shukla for his continuous support. They wasalways there to listen and to give advice. They taught us how to ask questions andexpress our ideas. He showed me different ways to approach a research problem andthe need to be persistent to accomplish any goal.

We are also indebted to thank our Faculty Guide for their valuable suggestionand guidance in this work.

Last, but not least, we thank our family: our parents, for giving us life in thefirst place, for educating us with aspects from both arts and sciences, forunconditional support and encouragement to pursue our interests, even when theinterests went beyond boundaries of language, field and geography.

Sincerely,

AbhinandanMehrotra

, IMS Ghaziabad

DECLARATION

I hereby certify that content presented in the projectentitled Market Analysis of buses with new trendsin the partial fulfillment of the requirement for the award

of the degree of Post Graduate Diploma In


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Management from IMS - Ghaziabad is an authenticrecord of my own work, carried out under the kindguidance of my industrial mentors Mr. Jayant Khoslaand my Faculty Mentor Prof. Timira Shukla. The matter

embodied inthe project has not been copied by me fromany sources.

Abhinandan Mehrotra

TO WHOSOEVER IT MAY CONCERN

This is to certify that Abhinandan Mehrotra, student of PGDM (FullTime) 2010-12 batch, IMS Ghaziabad, has executed his project inMarketing under my supervision and guidance. During the projectexecution he was found to be very sincere and attentive to small details,which were discussed with him. I wish him good luck and success in his

future studies and endeavor.

Prof. Timira Shukla

Faculty, Marketing

IMS, Ghaziabad


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INTRODUCTION

Established under the parent company, Tata Group, in 1945, Tata Motors

Limited has become Indias largest automobile company. It was the first Indian

automobile company to list on the New York Stock Exchange. Tata Motors began

manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement

with Daimler Benz of Germany. This partnership has led Tata Motors to not only

become Indias largest automobile company but also Indias largest commercial

vehicle manufacturer; the worlds top five manufactures of medium and heavy trucks

and the worlds second largest medium and heavy bus manufacturer. Having just

entered the passenger vehicles market segment in 1991, Tata Motors now ranks

second in Indias passenger vehicle market.

Tata has enjoyed the prestige of having developed Tata Ace, Indias first

indigenous light commercial vehicle; Tata Safari, Indias first sports utility vehicle;

Tata Indica, Indias first indigenously manufactured passenger car; and the Nano, the

worlds least expensive car.

COMPANY PROFILE


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Company Overview

The Tata Motors group is a passenger and commercial vehicle manufacturerbased in India. The motor group was established in 1945 as part of the larger TataGroup. They have long been known for their commercial vehicles and in the past tenyears entered into the passenger car market. Currently, Tata Motors has a line of five

passenger vehicles and a large line of commercial vehicles producing pickups, trucks,tractor trailers, tippers, and buses. Both product lines of the Tata Motors group haveseen success, but much of this has been built upon the more deeply establishedcommercial vehicle product line.

Tata Motors commercial line has been established for several years in manymarket segments such as Europe, Africa, The Middle East, Australia, Southeast Asia,and South Asia. Tata Motors has expanded their business and market share aroundthe world through a series of acquisitions. In 2004, they acquired Daewoocommercial vehicle Company in South Korea which was South Koreas secondlargest truck manufacturer. This acquisition gave Tata Motors a significant presencein the Korean market. They have also entered into joint ventures with companiessuch as Thonburi Automotive in 2006, which allowed them to manufacture andmarket pickup trucks in Thailand. We think it makes sense for Tata to expandthrough acquisition (as it did in tea and steel) than spend a decade to build the

business (Lehman Brothers). The commercial vehicle area of the business hascertainly been how Tata Motors have built their reputation, with commercial vehiclesaccounting for 80-85% of company profits. They are beginning to employ a similartechnique as they now expand into the passenger car business.

Tata Motors have been making global headlines in the auto industry lately; thelargest news being their acquisition of Jaguar and Land Rover from Ford. Tata paid2.3 billion dollars to Ford for the two brands that cost Ford 5.3 billion (Carty, USAToday). This is a major step for the company because it catapults them into theluxury car business which they are not known for at this time. Tata, like many new

businesses it acquires, is allowing this new segment of the business to be run byprevious management since they have more experience in the luxury automotivebusiness. Tata will give us some space. They want us to run our business, be apremium British car company (Mike ODriscoll, managing director of Jaguar). Thisis yet another large acquisition for the Tata Motors group and could create great

success for the company in the near future.Furthermore, Tata Motors made another large announcement regarding their

progress in the passenger vehicle segment. In January they announced that they,would release a $2,500 car that could replace the motor scooters commonly used indeveloping countries to cart around whole families (Carty, USA Today). This is amajor break through in the automotive industry and shows how far reaching, diverse,and competitive the Tata Motors group is becoming. Soon they will be servingcustomers in the high-class luxury market while still catering to their older niches indeveloping countries.

Corporate Governance

Since Tata Motors is a part of a large conglomerate company it needs to have


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a strong corporate governance to ensure that its employees act ethically and thebusiness continues to run smoothly especially during the ever changing and dynamicglobal economy. Tata Groups corporate governance is founded upon a rich legacyof fair, ethical, and transparent governance practices (tatacarsworldwide.com). Oneof the more important parts of this is the transparency of the company people have a

right to know what the company is doing not only to ensure ethical practices, but forthe insurance of their many shareholders whom have a right to know the innerworkings of the company.

Tata has created some models for employees to guide themselves througheveryday business practices to ensure that the corporate governance is continuously

being upheld. The Tata business excellence model is upheld by Tata qualitymanagement services. Quality management is an in-house group dedicated to helpingthe various Tata companies achieve their business objectives through specific

processes. The two main processes that the quality management services employeesfocus on are business excellence and business ethics. These two objectives have

helped build Tata into the strong, dynamic company it is today. These models areentrenched in the companys ethnical standards and Tata feels strongly aboutenforcing both throughout the company. Tata quality management services plays therole of supporter and facilitator in the journey that Tata enterprises undertake to reachthe peaks of business eminence while, at the same time, adhering to the highestethical standards (Tata.com).

To further prove their commitment to quality and ethical practices Tata hasintroduced annual quality awards for those companies conducting business with theutmost quality. These awards are called the JRD quality value awards named after thelate chairmen JRD Tata. These awards are presented annually on July 29th, the

birthday of JRD Tata. Tata has committed to ensuring quality and ethical standardsnot only within Tata Motors, but throughout their many other branches and sectors ofthe Tata Group. They have done so by benchmarking quality standards through theTata business excellence model as well as providing incentives for companies tostrive to improve the quality of their service, by awarding JRD quality managementawards.

Financial Position

Tata Motors have increased its earnings over the years through their variousacquisitions and joint ventures with truck manufacturers in Southeast Asia. Gross

profit in the year 2006 was 1,160.9 million and increased to 1,510.1 million in theyear 2007. Earnings after taxes also increased significantly between 2006 and 2007increasing from 336.6 million to 405.5 million in 2007. After a large drop inrevenues from 2004 to 2005 when the company first went public on the NYSE , it has

been increasing revenues greatly annually, from 4,422.0 million in 2005 to 7,354.0 in2007.

Core Competencies

Tata Motors is able to maintain, as well as increase, their market share by

capitalizing on their core competencies. Tata Motors is active, competitive, anddynamic in all aspects of the automotive industry, which means that there must be


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many different activities going on in all areas of the company. As a result of the everevolving automotive industry Tata Motors must always be changing and one way tostay at the forefront of the industry is to make continuous improvements intechnology through research and development. One way that Tata Motors has donethis is by producing one of the most efficient and low cost vehicles on the market.

Acquisitions, mergers, and expansion is another core competency that Tata Motorshas is embedded in their company structure and philosophy. Another corecompetency that Tata Motors holds is being located in the India. This location hasallowed them to understand not only the Indian market but also the dynamics ofemerging and developing markets. This market understanding and knowledge allowsTata Motors to manufacture their products at lower costs, sell them to emergingmarkets while making profits as well as take advantage of the strong labor base inIndia.

Research and Development

One factor to Tata Motors success is their constant advances in automobiletechnology through research and development. There is a high emphasis on thoroughresearch that provides the much-needed inspiration for the birth of new ideas, whichin turn breathes new life into products. They employ approximately 1,400 scientistsand development officers. Tata Motors has several research and development centersin India. The Research Center at Jamshedpur and the Engineering Research Center inPune are among the finest in the country (Tata.com). They possess forums to developand test durability, engine performance, emission, safety, design and style, noise,hydraulics, tracks, and instrumentation. Both have won numerous national awards inresearch and development efforts since their inception in 1966.

Through these advanced research centers Tata has created sophisticated emissionmeasurement systems and digital prototyping laboratories. Some other technologiesthat are part of Tata Motors arsenal are those that offer improved electronic controlsfor engine systems and other vehicle drive-train and chassis systems (Tata.com).The company is currently focused on equipping vehicles of the future withtechnologies for improving communication, navigation and entertainment. Oneexample of these technological improvements is highlighted in the OneCAT . Thisconcept car is a fiberglass vehicle that virtually powered by air and is emission free.The OneCAT weighs only a 350 kg and has a piston engine that runs on compressedair. This car can run between 200 to 300 kilometers on one Euro of compressed air.A spokesman for Moteur Development International, a company that partnered in the

development of this car said, "The engine is efficient, cost-effective, scalable, andcapable of other applications like power generation," (Autopartswarehouse.blog.com)This car is truly a representation of the next step in green automobiles. The carsengines emission can be used as an air conditioner in the cabin. This car is veryfuturistic and is still in the development stages:

Nonetheless, Tata and Moteur Development International are confident thatOneCAT, which can accommodate three adult passengers, is competent enough to goagainst potential green car rivals and energy efficient autos such as the hybrid, bio-fuels, and electric vehicles. The air car is targeted for release this year with a base

price of around 2,500. (Autopartswarehouse.blog.com)


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Some of Tata Motors other technological advances can be seen in the new car theNano nicknamed the Peoples Car. This car, which is just emerging into the market,is the worlds cheapest car. Tata Motors achieved this is through using new materialssuch as, re-engineered plastics and modern adhesives. It will revolutionize the autoindustry in India and soon in other emerging markets when Tata starts exporting. The

Nano was able to achieve its low price and gain the attention of the entire automotiveindustry through its advances in materials and adhesives technology.

Acquisitions, Mergers & Expansion

Like other companies, Tata Motors is always growing and expanding and themain way they do this is through acquisitions and mergers. Since 2004, Tata Motorshas merged or acquired all of or at least part of four different companies. In March2004, Tata Motors acquired 100 percent of the Korean based Daewoo Commercial

Vehicle Company, Koreas second largest truck maker, for 102 million dollars.Rather than using de-culturation or assimilating Daewoo, Tata took an integratedapproach, and continued building and marketing Daewoos current models as well asintroducing a few new models globally just as it had been done under Koreanmanagement.

In February 2005, they acquired 21 Percent of Hispano Carrocera, Spain-based company, for 12 million Euro. In April 2005, Tata Motors Limited mergedwith Tata Finance, and lastly in March 2008 Tata paid Ford Motor Company 2.3

billion for Jaguar and Land Rover companies (Tata.com). These acquisitions andmergers allow Tata Motors to break into foreign markets and develop a much largershare of the automotive industry.

It also helps them attain the knowledge, technology, and programs that allowthem to succeed in that particular sector of the automotive industry or in a particularregion or culture. For instance, the purchase of Jaguar and Land Rover allows Tata toenter into the luxury car market without having to research the market, build thetechnology, among other important aspects of getting into a new market segment. Itfurther helps them enter into the very competitive and highly desirable maturemarkets in Europe and in future hopes of securing market segments in the UnitedStates. Tata Motors is currently in a growth stage as stated on their website: TataMotors Ltd is in a mega expansion mode. The investments would be in productdevelopment, capital expenditure in capacity enhancement, domestic and internationalacquisitions and mergers (Tata.com).

Organization Location

Tata Motors is located in the developing country of India. This location hasbeen and will continue to be vital to Tatas success. In India, Tata can take advantageof the fact that manufacturing labor cost is only eight to nine percent of sales,compared to 30 to 35 percent of sales in developed countries. In addition, India is oneof the worlds largest producers of automotive components which give Tata Motorsdirect access to many of these components. Tata has higher bargaining power withsuppliers because it is a local, not foreign, car manufacturer. Tata Motors is able toleverage Indian automotive market because the current increase in demand due to theimprovements in infrastructure and growth of population and disposable incomes in


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India. The Society of Indian Automobile Manufacturers stated, India, where some1.4 million new cars are sold each year, is also a hugely attractive market for dozensof car companies and most of them cant risk ignoring what appears to now be a

potent competitive advantage for Tata Motors. Indias car market is expected to touch2.2 million units a year by 2010 (Livemint.com). Additionally, the India government

has made protectionist polices and regulations that are extremely favorable to Tata. InDecember 1997, the Indian government put in place policies that require foreigncarmakers to invest at least 50 million dollars in equity to set up manufacturingoperations in India. This means that Tata Motors is able to take advantage of the lowcost of labor, land assets, and overall investment practices without having toimplement this 50 million dollar investment. Finally, Tata Motors largest competitiveadvantage is that it has prospered and grown in only developing markets for over 70years. Tata Motors has implemented programs that allow it to prosper whilemaintaining low costs and high profits.

Lastly, Tata Motors has a competitive advantage simply because they are part

of the larger Tata Group. Tata Group supplies Tata Motors with access to knowledge,resources, technology and companies operating in many different industriesworldwide allowing innovation and easy availability to access other sources.

PEST Analysis

Political

Since Tata Motors operates in multiple countries across Europe, Africa, Asia,the Middle East, and Australia, it needs to pay close attention to the political climate

but also laws and regulations in all the countries it operates in while also payingattention to regional governing bodies. Laws governing commerce, trade, growth, andinvestment are dependent on the local government as well as how successful localmarkets and economies will be due to regional, national and local influence.

On March 26, 2008, Tata Motors reached an agreement with Ford to purchaseJaguar and Land Rover. In order to be capable of this acquisition, Tata Motors musthave a full comprehension of the governing bodies and laws regulating commerce inthe home country, the United Kingdom, but also in countries Jaguar and Land Roveroperate in.

In accordance, Tatas headquarters in Mumbai, India, strictly controls andregulates operations in all dealerships and subsidiaries, in addition to knowing and

abiding by all labor laws in the multiple countries where they have manufacturingplants it has to watch political change. This will be especially vital in the future asTata Motors continues to expand and grow into new markets. While currently about18% of its revenues are from international business, the company's objective is toexpand its international business, both through organic and inorganic growth routes(Tata.com). The foundation of the companys growth internationally is a deepunderstand of economic stimulation, customer needs, and individual governmentregulations and laws. Although it is the headquarters ultimate responsibility to makesure each individual office and branch is operating and abiding by the local laws, itwill become increasingly more important for that duty to be taken care of at theregional or even local level.

Economic


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Operating in numerous countries across the world, Tata Motors functions witha global economic perspective while focusing on each individual market. BecauseTata is in a rapid growth period, expanding or forming a joint venture in over fivecountries world-wide since 2004, a global approach enables Tata Motors to adapt andlearn from the many different regions within the whole automotive industry. They

have experience and resources from five continents across the globe, thus when anyvariable changes in the market they can gather information and resources from allover the world to address any issues. For instance, if the price of the aluminumrequired to make engine blocks goes up in Kenya, Tata has the option to get thealuminum from other suppliers in Europe or Asia who they would normally get fromfor production in Ukraine or Russia.

Tata Motors also has to pay close attention to shifts in currency ratesthroughout the world. Currency fluctuations can equate to higher or lower demandsfor Tata vehicles which in turn affect profitability. It can also mean a rise in costs or adrop in returns. But they also have to pay attention to not just the domestic currency,

the rupee, but also to the dollar, euro, bhat, won, and pound, to just name a few. Justbecause the rupee is strong against the dollar does not mean it is strong against all theother currencies. Attention to currency is important because it influences wherecapital investment will develop and prosper.

Social

Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in acompany will affect how well a company performs. This includes every stakeholderfrom the CEO and President, down to the line workers who screw the door panel into

place, from the investor to the customer, the culture and attitude of all these people

will ultimately determine the future of a company and whether they will be profitableor not. For this reason, Tata Motors tends to use an integration and rarely separationtechnique with foreign companies they acquire.

On the other hand, some economic issues that Tata Motors face must also be lookedat from a more localized perspective. For instance, the market in India for cars ismuch different than the market for cars in Italy. For one, India has over one billionmore people than Italy does, thus the market is much larger or not as limited. Second,you must also take into affect the demographics and the average income of eachmarket. Italians have a higher average income per capita than Indians and Italiancitizens tend to drive larger and fancier cars. For this reason, the Tata Nano might not

do so well in the Italian market. In summation, Tata Motors views the economy froma global perspective with operations across the entire globe; however, they must alsomaintain a local market understanding and knowledge when it comes to product

positioning and placement throughout the different markets Tata conducts business in.

In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company, which was atthe time Koreas second largest truck maker. Rather than using de-culturation orassimilating Daewoo, Tata took an integrated approach, and continued building andmarketing Daewoos current models as well as introducing a few new modelsglobally just as it had been done under Korean management.

With the new acquisition of Jaguar and Land Rover, Tata will have to be careful with

how they handle the acquisition. While Land Rover is thriving while under the helmof Ford, Jaguar was more of the trouble child. Jaguar cost Ford some $10 billion


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during its 18-year stewardship and its sales were in headlong decline, especially inAmerica, its most important market. Industry analysts also struggled to see what valueTata could add that had eluded Ford, and what synergies there could be between amaker of trucks and basic cars and two luxury marques. (Economist). Separationcould be a good approach for the immediate future to keep the name of Jaguar and

Land Rover distinguishable and associated with the luxury automobile market.Overall, Tata does a good job of integrating some aspects of their large multi-national

conglomerate into new acquisitions; however, the company must also understandthat separation from the name Tata can be valuable in some socialareas.

Technology

Tata Motors and its parent company, the Tata Group, are

ahead of the game in the technology field. The Tata Group as a

whole has over 20 publicly listed enterprises and operates in more

than 80 countries world-wide. This equates to Tata Motors having

lots of experience and resources to draw from for research and

development purposes. The foundation of the companys growth is

a deep understanding of economic stimuli and customer needs, and

the ability to translate them into customer-desired offerings through

leading edge R&D (Tata). Employing 1,400 scientists and

engineers, Tata Motors Research and Development team is ahead

of the pack in Indias market and right with the rest of the field

internationally. Among Tatas firsts are the first indigenously

developed Light Commercial Vehicle, India's first Sports Utility

Vehicle and, in 1998, the Tata Indica, India's first fully indigenous

passenger car, as well as the increasingly famous Tata Nano, which

is projected to be the worlds cheapest production car (Tata). In the

automotive industry, it is becoming increasingly crucial for

manufacturers to stay on top of the technology curve with new


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problems always rising such as escalating gas prices and pollution

problems. Tata recognizes this and dedicates lots of resources and

time into research and development to be even with or preferably

ahead of other competitors, global trends, and changing economies.

In all, an automobile manufacturer must change, adapt, and evolve

to stay competitive in the automotive game, and this is exactly what

Tata is doing with their rapid growth, and extensive research and

development.

SWOT ANALYSIS

STRENGTHS

Tata Motors excels when it comes to innovation through

intensive research and development. Their ability to make the least

expensive car on the market, the Nano which will retail for $2,500,

is far beyond what any other car dealership has created. This

innovation gives Tata Motors their main competitive advantage.

Tata Motors makes everything from tractor-trailers to the worlds

least expensive car. This product diversity grants them a

competitive advantage over their competitors because they can

satisfy more markets and customer needs. Another strength that

Tata Motors possesses is high corporate responsibility. They donate

a portion of their profits from stock increases towards a specific

charity. This highlights Tata Motors overall desire for community

improvement while also emphasizing Tata Motors high morals and


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values which is something money can not buy.

Tata Motors is also a very eco-friendly company. One of their

goals is to produce an emission friendly car, and in 2000 Tata

Motors launched the first compressed natural air bus. This air bus

requires the owner to plug the car into a standard electric plug for

four hours to fill the air tanks. This brought the concept of an air-

car to reality and the name for this compressed natural air car is

OneCAT. OneCAT has no gas costs or fossil fuel emissions which

makes it a very attractive car for the more mature markets but also

the upper classes in developing countries at this point. It is also a

great car to have in highly populated countries, such as China and

India, because pollution with its adverse effects is a very large

concern. OneCAT also is more efficient that any other present

Hybrid car, so when inventors think they have the best product out

on the market, they actually do not. There will always be something

else to invent or improve on and Tata Motors is a prime example of

that.

Tata Motors is unique in a way in which when it buys a

company. Tata Motors keeps the original management of that

company intact. The company that Tata Motors purchases will look

exactly the same in terms of management and organizational

structure as if it was never purchased by Tata Motors.

WEAKNESSES


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There are strings attached with every new invention and

improvement on products. These strings are Tata Motors

weaknesses and what other groups perceive as their weaknesses.

One weakness that Tata Motors faces is its inability to meet safety

sINTRODUCTION

tandards. Although they have made the most inexpensive car out

on the market, it has yet to pass all the safety standards which is a

legal factor. Some consumertandards. Although they have made

the most inexpensive car out on the market, it has yet to pass all

the safety standards which is a legal factor. Some consumers and

pessimists inquire as to how Tata Motors can make such a cheap car

and withstanding a car accident or not just falling apart after hitting

something once. Pessimistic people also want to believe that car

manufactures are already doing everything they can to keep costs

low for the consumer, and if that is the case, then putting the

cheapest car out on the market automatically questions if it is safe

to drive.

Tata Motors only have been making passenger cars for the

approximately last ten years. This can be viewed as a weakness

from a customer standpoint since a decade does not seem like a lot

to consumers and therefore they will think that Tata Motors is

inexperienced car manufacturing. Consumers will wonder how a car

manufacturer can be in the market for 10 years and produce the

cheapest car out on the market. How can Tata Motors


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manufacture such a cheap car that meets emission and safety

standards being so young? This causes consumers to be skeptical.

Another weakness that Tata Motors faces is within its

domestic market. Car sales in India are less than 1 million annually.

This draws a problem because Tata Motors may not get the sales

that the company hopes for and how can they sell cars to people

who are not buying cars?

The new and innovative OneCAT still has some rough spots

that need to be worked out and one of them is that it has pollutant

emissions and greenhouse gas emissions from the generation of

electricity used to compress the air. So although it is marketed as

being emission free, it technically is not and this is another

weakness. Also, OneCAT only goes 62 miles per hour for 56 miles in

an urban cycle. This is not very far and Tata Motors will have to

improve on this weakness as well as the emission weakness in order

to draw more comsumers to this new automobile.

OPPORTUNITIES

Tata Motors has already opened the doors for many new and

innovative ideas, but not only for their company, but their

competitors as well which could turn into a threat. One of the major

opportunities that Tata Motor faces is that as of right now 90

percent of China and Indias adult population do not own cars, partly

because cars are costly and require more expenses after purchased.


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So the market for a low-priced car is huge which benefits Tata

Motors perfectly since they produce the lowest priced car on the

market. This is a huge opportunity for Tata Motors because if they

can get their feet into that market of people that do not have cars

because they cannot afford them, then they will make large profits

down the road. Chinas total car sales are estimated at over 8

million dollars annually and they were the worlds second largest car

market in 2006. Chinas government forecasts that demand for cars

will top 20 million by 2020. With Tata Motors in the market with the

cheapest car, Chinas demand for cars will probably increase even

more significantly which will in turn increase sales for Tata Motors.

Japan, North America, and Europe automobile sales went up

over the years because of demand for smaller cars increased. This

demand for smaller cars is a great window of opportunity for Tata

Motors because not only are their cars small, but they are cheap

and environmentally friendly as well. Once people in these countries

get Tata Motor automobiles then their automobile sales will continue

to rise.

As of March 2008 Tata Motors finalized a deal with Ford Motor

Company to acquire the British businesses, Jaguar Cars and Land

Rover. This is a huge opportunity for Tata Motors since they will

acquire the large knowledge base and technologies for producing

and marketing luxury vehicles. This acquisition helps them dive into

the more mature markets in Japan, Europe and the U.S. The


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knowledge transfer from these two companies will greatly improve

Tata Motors ability to continue to grow and flourish in both

developing and developed market segments.

THREATS

The obvious threat to Tata Motors is intellectual property

rights. Tata invented the cheapest car on the market and every

automobile manufacturer wants to know how Tata did it.

Headhunters are soon going to find out this valuable information

and make it available to their own company. This is a huge threat

to Tata Motors because at first they had low competition, but once

other car manufactures find out how they invented such a low cost

car, and then these companies too will jump on board and design

their own line of low cost automobiles. On one hand this can be a

threat, but on the other it may not affect Tata Motors at all because

people will still want to purchase their product since they were the

pioneers of all the excitement.

Other companies are starting to compete for some of this

market share. In fact, the Pakistans Transmission Motor company

has built a basic four-wheeler for only $2,100. This car is

considerably cheap and the Pakistan Transmission Motor company

started exporting them to Sudan, Qatar, and Chile. This is going to

be the beginning of new emerging car manufactures that will be

producing low priced cars.


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Another obvious threat is that dealing with gas prices. Gas

prices continue to rise and the Nano requires gas, but those who

purchase the Nano probably do not have a lot of money and so if

gas prices keep jumping up then that market of consumers will not

be able to purchase the car. If OneCAT can be made as cheaply as

the Nano then that will benefit the consumers even more because

they will get a car that does not run on gas and it will be cheap to

purchase. On the other hand, gas company will not want OneCAT to

hit the market because there will be no profits to be made off the

vehicle. Gas companies have a lot of say over the automobile

industry so this could be a big threat.

Another main concern that Tata Motors faces is that cheap

cars in India will have an adverse effect on pollution and global

warming because most of the population will be able to afford the

cars. With more people driving cars there will be more accidents

and deaths, as well as higher fossil fuels leaked into the

environment causing even more pollution then there already is.

Tata Motors is family owned and this can potentially cause

problems down the road because some family members can

become greedy and money hungry. Once they really start to rapidly

grow then there may be family feuds and people not pulling their

part.

Another threat is the whole point of their cars being made

with cheap plastic. Are these cars durable? Will they hold together


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in a head-on collision? As off August 2007 there was no further

information on this topic though.

CAPITALIZING ON TATA MOTORS SUCCESS

Arguably, one of the most significant aspects of a businesss

strategy is constant environmental scanning, or looking for

opportunities that will either help a business grow or salvage

plummeting profit margins and stock values. In the case of Tata

Motors, and the creation of the Nano and OneCAT from a line of

service and military vehicles provide a variety of different ways for

other companies as well as other industries to capitalize on the

success that Tata has realized. There are three main avenues that

businesses can take to exploit the success that Tata Motors has

generated. First, through acquisitions and mergers, like early

discussed, Tata integrates the management, programs, and

knowledge of the businesses it buys out. Secondly, Tata Motors

places heavy investment into research and development. These two

points have been discussed extensively throughout this report so

please refer to the previous sections: Core Competencies and the

SWOT Analysis. Finally, Tata understands and has succeeded in

growing, profiting, and reducing costs in developing markets for

over half a century.

Tata Motors, like its parent company Tata Group, has much

knowledge and understanding in working in developing markets and

countries. Companies considering expanding into developing


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markets should consider forming a joint venture or partnership with

any of Tata Groups numerous industries. The knowledge transfer

can save time and money and further ensure a more successful

expansion.

CONCLUSION

Tata Motors is an overall strong company that has found strength and expansion through its

parent company, Tata Group, but also through its numerous acquisitions and mergers. Although Tata

Motors stock prices have fallen since the start of the 2008 year due to suggestions that Tata Motors is

overreaching by adding luxury brands to pair with the Nano, the world's cheapest car. Chairman of

Tata Group, Ratan Tata, rejects suggestions that, ``We're not trying to be a global player,'' he told

reporters in New Delhi Jan. 10 after unveiling the Nano, which will be built in a new plant costing 10

billion rupees ($249 million). ``We will grow internationally in select markets'' (Krishnamoorthy).


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Documents

Tata Motors Limited is India’s largest automobile company