Tata motors: Strategies for success

Abstract

Tata Motors, part of the Tata conglomerate, is India’s largest automotive company. It is the leader in the commercial vehicle segment, one of the top three players in the passenger segment and one of world’s top five commercial vehicle manufacturers. This report analyses the strategy of the company which converted it from an Indian truck manufacturer to a global automotive major with a wide product portfolio. We have analysed significant events in its evolution with a focus on regulations and how it impacted the company from its evolution till the ‘90s. The emphasis in this report is however on the significant events and product introductions in the past two decades. We study TML’s entry into passenger vehicle segment in early ‘90s through its utility vehicles. The success provided by product introductions like the Tata Indica and Tata Ace is also analysed. Further, the company’s strategy of inorganic growth by means of acquisition is analysed through the Daewoo acquisition and the Jaguar Land Rover deal. We also explore the future growth engines of the company by studying the Tata Nano , the World Truck series and its entry into the used car segment Tata Motors Assured. Most of the above sections are studied in light of the crisis the company faced in 2001 and the strategy used for rebound. The internationalization strategy of the company, its JVs and alliance are further explored. One of the reasons for Tata Motors’s competitive advantage in terms of being a part of the Tata Group is also explored. The main objective of this project was to study if the portfolio of Tata Motors was too complex for efficient management and growth. To address this, the portfolio of TML was analyzed in terms of passenger segment, utility segment and commercial vehicle segment. The contribution in total sales and exports and the market share of Tata Motors in each of these segments is analyzed to answer the issue of complexity.