REPORT PREPARED BY:
Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), was formed in 1954. It is the only fully integrated automobile manufacturer that now stands as India's largest and the world’s 5th largest passenger automobile and commercial vehicle manufacturing company with a product range designed to meet national and international transportation needs.
Tata Motors has a wide portfolio ranging from a Tata Mercedez Benz truck to diversifying into passenger cars like Tata Sierra,Tata Estate,Tata Indigo and Indica, concept vehicles like Aria Roadster and Tata Elegante, commercial vehicles like Tata heavy trucks and military vehicles.
Tata Motors was first listed on the NYSE in 2004. It created wealth of Rs. 320bn during 2001-2006 and stood among top 10 wealth creators in India. It has its manufacturing bases in Jamshedpur, Lucknow and Pune. Tata Motors has recently had a couple of important mergers and acquisitions like with Daewoo in South Korea, Hispanso and a JV with Fiat.
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata and is currently headed by Ratan Tata who is the chairman. The company has the workforce of 22000 employees working in its three plants and other regional and zonal offices across the country. This report analyses the current market position of Tata Motors and gives details regarding the company’s plans and strategies for growth in the future.
Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures (JV):
• 21% stake in Hispano Carrocera, a Spanish bus manufacturing company and introducing its high-end inter-city buses in the country. • A 70% JV with Thailand’s Thonburi (auto assembler) which will set up a plant to manufacture pick-ups and will sell them in Thailand. • The 25MT GVW Tata Novus launched from Daewoo’s platform (TDCV). • 51:49 JV with Brazilian based Marcopolo (bus building). This JV is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. • In 1993, it started manufacture of high horsepower and emission friendly diesel engines in an effort to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. • In 2000, it launched CNG buses and filled the product line gap through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is useful for medium tonnage loads. • Its Ex- series vehicles have high tonnage capacity and high pick up and the LCV (207 DI) with direct ignition technology caters to the customers' requiring one and same vehicle for commercial as well as personal use. • Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the LCV segment. • The latest hit of Tata Motors is its mini truck Ace which is India's first indigenously developed sub-one ton mini-truck. Ace has rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. • The only major engine manufacturer in the world to express any formal interest in the turbulence-boosting cylinder head grooves • There is definite cost advantage as labor cost is 8-9 per cent of sales as against 30-35 per cent of sales in developed economies. • Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. Also, India is an excellent source for IT based engineering solution for products & process Integration.
• Tata Motors' range of passenger cars is still not comprehensive by industry...