Tata Motors Strategy
Topics: Automobile, Tata Motors, Truck, Vehicle, Automotive industry, Renault / Pages: 8 (1838 words) / Published: Apr 24th, 2013

Tata Motors

Industry Analysis: Tata Motors is currently situated in India with only 6% of the revenue coming from exports. India’s automobile market has grown steadily over the last seven to eight years, with the exception of the previous two years where the effects of the global downturn were felt, primarily in sales of passenger vehicles. Indian automobile market (passenger vehicle) share is currently little more than 4% of the total available market. In the year 2011-12, total 2.53 million passenger cars were sold in India. Currently India has 31.4 million middle class households. In next 5 years, this number is expected to reach 53.3 million middle class households, thus providing a great market opportunity for car manufacturers. HHI for passenger car manufacturer market is 2139 (Exhibit 1) which is relatively low. There are more than 20 car manufacturers currently present in Indian market. Prominent factors which govern the selection of a passenger car are Affordability, Fuel Economy and Luxury. In case of commercial vehicles, 0.89 million vehicles were sold in the year 2011-12. HHI for commercial vehicles is 4326 (Exhibit 2). Currently there are 4 major competitors in this segment. What business the company is in: Tata Motors is India’s largest automobile company. It is the leader by far in commercial vehicles in each segment, and has third highest market share in passenger vehicles segment. The company is the world’s fourth largest truck and bus manufacture. Who will be its targeted customers: 85.1% of the total revenue (10.9 billion USD) of Tata motors comes from Domestic vehicle sales in India. Hence, India is the primary target market for Tata Motors. Being the low cost leader, target customers for Tata motors are middleclass households and youngsters which are the final consumers of passenger vehicles. For recently acquired luxury brand Jaguar Land Rover, target customers are affluent class of the society. Target market for this brand is US and

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