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The automobile industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), growing 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.
KEY COMPETITORS
BAJAJ AUTO LTD : It is market leader among the automobile companies in India. The Bajaj Group's flagship company is Bajaj Auto. It is the fourth largest two-wheeler and four-wheeler manufacturer in the world. The Bajaj Brand is renowned in countries like US,Europe,Latin America etc .It is also among the top ten Indian companies in market capitalizaion. The company has products in the segments like scooters,mopeds,motorcycles,three wheelers. FORD MOTOR COMPANY: This company entered the Indian automobile industry by a tie up with Mahindra Motors to manufacture the awesome Ford Escort. The company's models made for India are manufactured keeping in mind the Indian conditions. The company has sold about more than 260,000,000 vehicles across the globe. The eminent brands of the company are Jaguar,Mercury,Ford,Lincoln. The company also ranks among the best five industrial corporations in the globe and is found in about 200 countries.
HERO HONDA MOTORS LTD : The company is the result of the amalgamation between Japanese Honda Motors Company and India's Hero Honda Group in 1993.This is the single largest two-wheeler company of India. Hero Honda Motors Ltd is the market leader for being the largest Indian motorcycle company for selling CBZ and also the most fuel efficient one. MAHINDRA & MAHINDRA LIMITED: This Indian automobile company is a subsidiary of Mahindra Group. The company specializes in vehicles for the general purpose utility. It ranks tenth among the largest private sector companies in India. The company has four divisions-tractor, automotive,inter trade and MSL. It has about 33 sales offices and the network support is about 500 dealers across India.
MARUTI SUZUKI INDIA LTD. : It is the company which has ushered revolution in the industry of Indian cars. The Company is the result of the alliance of Japan's Suzuki and Maruti. Maruti Suzuki car is for the average Indian. It is the first Indian company which manufactured about one million vehicles. The motto of the largest Automobile Company of India was to offer low cost and fuel efficient vehicles. The company produces Zen ,Maruti 800, Maruti Esteem,Maruti Omni etc. TATA MOTORS: Initially known as TELCO, Tata Motors is the largest manufacturer of commercial vehicle in India and also the largest private sector company.The company produces light commercial vehicles,passenger cars,commercial vehicles and multi-utility vehicles.The most popular vehicles are Indica ,Safari,Estate,Sierra etc. The latest innovation of the Tata Motors is the Nano car which is called the people's car. This one lakh car has created a revolution in the history of the automobile industry across the world. HYUNDAI MOTOR INDIA LTD : The company is a sub division of the Hyundai Motors Company,a South Korean multi national. The South Korean top manufacturer of automobile has captured the Indian market through this sub division. The company has more than 70 dealer workshops. Hyundai Santro is giving competition to others. This car is designed in India near Chennai.
HINDUSTAN MOTORS: The leading manufacturer of Electric Motors in India is Hindustan Motors. The first Car Company of India to start the manufacturing process of cars in India in the year 1942 is Hindustan Motors. The company has a strong network of 115 dealers and 60 Parts Dealers and 4 regional offices. The new model,Ambassador Nova was launched by this company. TVS MOTORS : A significant name in the two wheeler industry is TVS Motors. The first two seater moped of India was manufactured by this company. The company has always worked for innovation in the arena of motor cycle. India's first 140cc motor cycle,Suzuki Shaolin,was developed by TVS Suzuki. Another remarkable success of the company is TVS Scooty. It ranks third among the largest manufacturers of two-wheelers in India.
ASHOK LEYLAND : It is the second largest key player among the commercial vehicles in India.The company manufactures Vestible buses,Haulage vehicles,18-82 seater single and double decker buses etc. The six manufacturing units of the company can produce 77,000 vehicles at a time. GENERAL MOTORS INDIA PRIVATE LIMITED : It is an interesting thing to note that there is a 50:50 partnership between General Motors and SAIC. According to sources, General Motors India Private Limited is the fifth largest automobile company in India after Maruti Suzuki, Hyundai, Tata Motors and Mahindra.This company has launched vehicle manufacturing plants in Halol, Gujarat and Talegaon Dabhade, Maharastra. The company has its headquarter in Gurgaon and Halol. LML : It is the company that brought new designs of scooters in the market.It did collaboration with Piaggio. This company has entered motorcycle market in collaboration with Daelim of Korea. Check out the site for more details. TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED : The main aim of the company is INNOVATION. The continuos efforts of the company has made it verry popular in the automobile sector. The company is working with the aim of becoming 'the most admired company in the country'.
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. In May 2009, Tata Motors 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 called Prima. 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 October 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover. The Tata Aria redefines several benchmarks with its design and technologies, offering class leading features that take comfort and safety to a new height. Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation.
Tata Sumo Tata Sumo Grande Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria Tata Venture Tata Iris
Discontinued
COMMERCIAL VEHICLES
Tata Ace Tata Ace Zip Tata Super Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1623 (Rear Engined Low Floor bus chassis) Tata 1518C (Medium truck) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger transportation) Tata Divo (Hispano Divo; Fully built luxury coach) Tata CityRide (12 20 seater buses for intra-city use) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (82) Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (64) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo) Tata Prima LX (Stripped down version of Tata Prima) Tata Ultra (ICV Segment)
MILITARY VEHICLES
Tata LSV (Light Specialist Vehicle) Tata Mine Protected Vehicle (44) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 44, and 42 versions Tata LPTA 713 TC (44) Tata LPT 709 E Tata SD 1015 TC (44) Tata LPTA 1615 TC (44) Tata LPTA 1621 TC (66) Tata LPTA 1615 TC (42) Tata Winger Passenger Mini Bus Tata Landrover 1515 F
CONCEPT VEHICLES
2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Pr1ma 2010 Tata Versa 2010 Tata Essota 2011 Tata Pixel 2011 Tata Sunny 2012 Tata Megapixel
SHORT-TERM OBJECTIVES
Consolidate the company within the markets in which we are already working with. Know other potential customers, in other words, other countries whose population have similar profiles to the profiles of our current customer audience. Know the legal and financial needs of the company to deliver or even produce and deliver our products in/to these countries. Know if the company can fulfill the needs of other customers outside our current target profile by developing new products. Know the legal, technological and financial needs of the company to develop these new products.
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."
SWOT ANALYSIS
STRENGTHS
1. Strong Domestic player (Indian market): Tata has a strong presence in India and is a key manufacturer of commercial vehicles. It is a market share of ~64% which has almost remained constant. Also, Tata Motors is Indias largest automobile manufacturer by revenue .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. 2. It is a demand driven, and customer-oriented, taking care of customerspreferences and taste. 3. Long list of portfolios: Its products include passenger cars, trucks, vans and coaches. It is worlds 4th biggest truck producer, it is also worlds second biggest bus producer. 4. Global Presence 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. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. Tata Motors has expanded its production and assembly operations to several other countries 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. 5. Dealership, Sales and Service Access: The Companys dealership, sales, services and spare parts network comprises over 3500 touch points. 6. Research and Development Activities: Tata motors is known as an innovative global leader. The company has a very strong R&D having over 3000 engineers and scientists. The Engineering Research Centre (ERC) in Pune was setup in 1966 and is among the finest in the country. It has been honoured with two prestigious awards - The DSIR National Award for R&D Effort in Industry - 1999 and National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern - 2000. Tata Nano was a recent outcome from the ERC.
WEAKNESS:
1. Return on Investment on TATA motors shares in low. 2. Tata motors products are not considered as luxurious. The products are generally targeted for economy class rather than for luxury. Hence, the company lacks a strong footprint in the sector of luxury products. 3. Safety standards are not maintained/ often ignored. This has led to diminish of public image of the TATA automobiles (eg Tata Nano). 4. Limited consumer base 5. 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 and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa. 6. Relatively smaller proportion of market share in Passenger vehicles in India. 7. The companys passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers.
OPPORTUNITY:
1. In the summer of 2008 Tata Motors announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the Worlds luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. 2. Tata Motors Limited acquired Daewoo Motors Commercial vehicle business in 2004 for around USD $16 million. 3. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! 4. The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China
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will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. 5. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.
THREATS:
1. Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. 2. Environmental Regulation: Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated. 3. Intense competition: Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Punebased plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Presently, Tata Motors face intense competition from its domestic as well as foreign competitors including General Motors, Honda Motor, Maruti Udyog, Mitsubishi Motors, Fiat, Ford and so on. Competition is expected to intensify further as Indian automobile manufacturers obtain greater access to debt and equity financing in the international capital markets or gain access to more advanced technology through alliances. Additionally, in recent years, the government of India has permitted automatic approvals for foreign equity ownership of up to 100% in entities manufacturing vehicles and components in India. 4. Rising cost of manufacturing: Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production. Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market. 5. Low safety standards can hamper the public trusts it has already attained which may prove fatal to its domestic market.
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MARKETING STRATEGY-INNOVATION
INTRODUCTION OF THE NEW TATA NANO
The introduction of the Nano received media attention due to its targeted low price. The Financial Times reported[: "If ever there were a symbol of Indias ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the $2,200 (1,490, 1,186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity." The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India as well as expand the Indian car market by 65% The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "peoples car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano Tata Group is expected to mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India,t o also export them worldwide. Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed inroad-accidents every year), and have also criticised the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised that it would definitely release Nanos eco-friendly models alongside the gasoline-model. The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand, Gujarat. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all theincentives offered by West Bengal government.
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It has 3 nuts on the wheels instead of the statutory 4 nuts. It only has 1 side view mirror
PRICE
Tata initially targeted the vehicle as "the least expensive production car in the world"aiming for astarting price of 100,000 rupees or approximately US$2000 (using exchange rate as of March 22,2009)6 years ago, despite rapidly rising material prices at the timeAs of August 2008, material costs had risen from 13% to 23% over the cars development, andTata faced the choice of: introducing the car with an artificially low price through government subsidies and tax- breaks forgoing profit on the car using vertical-integration to artificially boost profits on cars at the expense of their materials industries partially using inexpensive polymers or biodegradable plastics instead of a full metal- body raising the price of the car option.
MODEL VERSIONS
At its launch the Nano was available in three trim levels: the basic Tata Nano Std priced at 123,000 Rupees has no extras; the deluxe Tata Nano CX at 151,000 Rupees has air conditioning; the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow Colour Taxi Version; the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and central locking . The Nano Europa, European version of the Tata Nano has all of the above plus a larger body,bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standard sand emission. The base model will have fixed seats, except for the drivers, which will be adjustable, while the deluxe and luxury models will get air conditioning and body coloured bumpers.
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JAGUAR
A statement of ultra luxury, Holds Royal warrants, Rarely advertised, Fords formula one entry since 1990s . Founded in 1922 by Sir William Lyons, headquartered at Coventry ,ENGLAND. it became a part of FORD MOTORS in1990 when Ford acquired Jaguar for $2.5 billion.
LAND ROVER
Founded in 1948 as a marque of the Rover Company. Land Rover is an all-terrain vehicle and Multi Purpose Vehicle(MPV) manufacturer, based in Solihull, West Midlands. In 1994 Rover Group is taken over by BMW & sold to FORD MOTORS for 2.75 bn$ in 2000. It is Known for superior off-road performance, Used by military for projects and expeditions,
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Two, Tata also got two advance design studios and technology as part of the deal. This would provide Tata Motors access to latest technology which would also allow Tata to improve their core products in India, for eg, Indica and Safari suffered from internal noise and vibration problems. Three, this deal provided Tata an instant recognition and credibility across globe which would otherwise would have taken years Four, in the long run TATA Motors will surely diversify its present dependence on Indian markets (which contributed to 90% of TATAs revenue). Along with it due to TATAs footprints in South East Asia will help JLR do diversify its geographic dependence from US (30% of volumes) and Western Europe (55% of volumes) .Analysts were of the view that the acquisition of JLR, which had a global presence and a repertoire of well established brands, would help Tata Motors become one of the major players in the global automobile industry.
100% stake in Jaguar & land Rover Business 3 Plants in UK 2 advanced design & engineering center 26 National sales company Intellectual property rights Capital Allowance
TATA has acquired the business & initially they will be operated independently of the partner. These are well invested plants 4-5000 engineers engaged in testing ,prototype design & powertrain Engineering , development & integration Both existing national sales companies of jaguar/land rover & also those that are carved out of current Ford operation This covers all key technologies to be transferred to JLR & perpetual royalty free license on technologies shared with Ford A minimum guaranteed amount of $1.1 bn which will help managing in Tax going forward Ford Motor Credit will continue to support the sales of JLR for around next 12 months Ford will contribute $ 600 mn of the Pension Fund
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CONCLUSION
Tata Motors has been at the forefront of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. Therefore Tata Motors Limited is always committed to understanding customer needs.The name of TATA itself says it all T=Trust Acceptability T=Transparency A=Accountability
SUGGESTIONS
Though TATA motors is big player in heavy vehicle market, it still needs some innovationwork in small car section. Some of the related problems and suggestions are :1) TATA NANO cannot be targeted for a huge market share of rural India as when it comes to bad roads and frequent long drives people prefer Maruti 800 which is its nearest rival. What Tata motors can do in the above case is that they should go on with TATA NANO mainly targeting the metropolitans and big cities. Once they have acquired a major market share, they should launch its modified variant with higher price comparable to but cheaper than Maruti 800 having strength and long distance travelling capacity for sub urban and rural market. Though being cheaper than Maruti 800 it did not affected the sales of Maruti 800, its nearest competitor, although the production of MARUTI 800 has been put down.Through the launch of TATA NANO, it embarked one of the greatest innovations of the century in automobile sector by producing the cheapest car but still some issues related to it are to be tackled. 2) Another problem that lies with Tata motors small car segment is the common notion Tata vehicles as a carrier not as a luxury item. Tata motors in India are mainly famous for their carriers and this tag gets attached even with small luxury cars which affect their sales. Tata need to show their luxury through rigorous marketing and by launching a couple of high class luxury vehicles comparable to Audi and Mercedes (though the stock and distribution should be limited).This will create a special class for its small cars. 3) In heavy vehicles section though Tata enjoys most of its market share with its trucks and buses. But the launches of its new variants are only known when they hit on roads. e.g. Tatas 6wheeler Trucks were replaced by 6 wheeler LP trucks gradually and then later on with 10wheeler LP trucks.In case any competitor launches its variant of same type it can affect Tatas sales. They need to focus now on the marketing strategy in heavy duty vehicle section also.
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WEBLIOGRAPHY
www.google.com www.wikipedia.org
BIBLIOGRAPHY
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