Tata Group is an Indian multinational company headquartered MUMBAI, MAHARASHTRA, INDIA. Tata group business is spread across 7 sectors their main sector being steels. Their empire is spread across 6 continents and has its presence in 80 nations. The combined market capitalization of all the 31 listed Tata companies was $89.88 billion as of March 2012.Tata group gets its major revenue from overseas market contributing 58%. Tata Motors Limited is an Indian multinational manufacturing company. It is a subsidiary of the Tata group. Its products include passenger cars, trucks, vans, coaches, buses and military vehicles. It is the worlds 18th largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. In Forbes fortune 500 companies Tata motors occupies 314th position. With the launch of Tata sierra in the year in 1991 Tata motors entered the passenger car segment. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and the British premium carmaker Jaguar Land Rover in 2008. Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia and Eastern Europe. Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano. Tata Motors has consolidated revenue of 32.5 billion USD in the financial year 2011-2012. Tata motors have an employee base of more than 55,000 employees. Tata motor is the first Indian company from the engineering sector to be listed in the New York stock exchange.
II. SWOT ANALYSIS OF TATA MOTORS LIMITED
1) Strong domestic presence:
Tata has a strong presence in Indian market and it is a key manufacturer of commercial vehicles. It is the leading producer in commercial vehicles in all segment and they are among the top 3 producers in passenger vehicles market. Tata motor company is India’s largest company with the revenue of 1,233,133 crore in the year 2010-2011. 2) Tata motors not only have the strategy for expansion and acquisitions but also they have the intensive management development program in order to develop the leaders of tomorrow. 3) Taste and preference of the consumers in local regions is always taken care of in Tata motors. 4) Tata motors have a long list of product portfolios. It has passenger cars, commercial vehicles, trucks and coaches WEAKNESS
1) Tata motors cars are considered for economy class people and not in luxury car segment. So the company lacks its place in luxury car segment. 2) Though Tata cars are present in worldwide it has created major customer base only in India and its nearby countries like Bangladesh, srilanka, Pakistan. 3) The consumer base is limited to certain areas and certain people. 4) Tata cars are not following the safety standards. Their design and the body metal used leads to this types of public image. This is a major concern for Tata. Their major example is their Tata Nano. 5) Tata cars are not for the younger generation consumers. Tata cars design is not been attracted by the people of the younger generation of people. 6) Return on investment in Tata motors shares is very low.
7) Even though they have bought luxury car manufacturers Jaguar and Land rover Tata has not made its strong presence in luxury car segment. OPPORTUNITIES:
1) Luxury carmaker jaguar and land rover has added a greater advantage to its product portfolio. 2) Tata has a major support from the Indian government.
3) High market demand for the passenger car segment with low price. 4) The world is geared up for the greener revolution and there is a huge market for alternate fuel vehicles. THREATS:
1) Tata cars safety standards can lay down the public trust on their varied portfolio of cars. 2) Other car companies are there for more than 40 years so Tata should learn the production and...