INTRODUCTION

Tata Motors Limited is ’s largest automobile company, with consolidated revenues of Rs.1,23,133 cores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer.

The company's 23,000 employees are guided by the 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."

Established in 1945, ' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), (Maharashtra), (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company’s dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar , a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano’s presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal.

Tata has enjoyed the prestige of having developed , India’s first indigenous light commercial vehicle; , India’s first sports utility vehicle; , India’s first indigenously manufactured passenger car; and the Nano, the world’s least expensive car. A full timeline of Tata Motors Limited is supplied in Appendix A.

The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 2,000 engineers and scientists, the company’s Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India’s first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India’s first indigenously developed mini- truck.

In January 2008, Tata Motors unveiled its People's Car, the , 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. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint.

In May 2009, Tata Motors introduced 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. 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 June 2009, the exciting new range of premium luxury vehicles from Jaguar and Land Rover were introduced for the Indian market. These include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover.

The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.

True to the tradition of the , Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Tata Motors Limited is a multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company).

Tata Motors is India’s largest automobile company, with consolidated revenues of USD 20 billion in 2009–10. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4 million vehicles in India.

Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.

Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005, was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, , Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa and Thailand.

Today Tata Motors is the world's second largest bus manufacturer with the most complete range of transit vehicles that meet every need that arises in our day-to-day travel. It has continued to be the leader in this segment not just by setting technological benchmarks but also by adapting innovations effectively to suit Indian travel conditions. It manufactures a variety of premium buses and coaches that cater to the entire gamut of utility vehicles and applications, from luxurious inter-city travel options to safe transport choices for school going children. While fully built buses come in a wide range from 12 seaters to 67 seaters, Chassis options vary from 4 tonne GVW (5m length) to 16 tonne GVW (12m length).

So whether you want to ensure that your child reaches school safely or wish to take your family out on a holiday trip to the nearby hotspot, buses from Tata Motors guarantee a journey that is pleasant and comfortable. No wonder that with trendy, durable and innovative features, the vehicles are the first choice for city and inter-city commuters, for children on their way to school and for travelers who seek optimum luxury during their journey.

We keep all your transit needs in mind through a variety of options and configurations in our range of buses.

History

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy. The oldest Indian state transport under taking is "North Bengal State Transport Corporation" founded by the Raj Durbar regime in the year 1945, the 1 April.With three buses and three trucks.Is still vibrant and running providing service to hundreds of commuters of North Bengal region of West Bengal. link nbstc.co.in

Tata Motors Limited is India’s largest automobile company, with revenues of 35,651.48 crore (US$7.95 billion) in 2007–08. 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. The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). Tata's dealership, sales, service and spare parts network comprises over 3500 touch points. Tata Motors also distributes and markets Fiat branded cars in India. Acquisitions

▪ In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. ▪ In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company. ▪ In 2007, Formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market. ▪ In 2008, Tata Motors acquired British (JLR), which includes the Daimler and Lanchester brand names. In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company Trilix for a consideration of €1.85 million. The acquisition is in line with the company’s objective to enhance its styling/design capabilities to global standards.

Subsidiary brands

Jaguar

Tata Daewoo Commercial Vehicle

Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:

▪ Company's global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. ▪ To expand the product portfolio Tata Motors recently introduced the 25MT GVW from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National highway development project. Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus.

Hispano Carrocera

In 2005, sensing an opportunity in the fully-built bus segment, Tata Motors acquired a 21% stake in Hispano Carrocera SA, the leading European bus and coach cabin maker. In 2009, the company picked up the remaining 79% stake in Hispano Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary.

Jaguar Cars and Land Rover After the acquisition of the British Jaguar Land Rover (JLR) business, which also includes the Daimler, Lanchester and Rover brands, Tata Motors became a major player in the international automobile market. On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar Land Rover operations for US$2.3 billion. The sale was completed on 2 June 2008.

In addition to the brands, Tata Motors has also gained access to two design centers and two plants in UK. The key acquisition would be of the intellectual property rights related to the technologies.

Joint ventures

Tata MarcoPolo released a low-floor bus in India and now it is widely used as public transport in , Mumbai, , , and Lucknow. Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. Tata and Marcopolo have launched a low-floor city bus which is widely used by Chennai, , Delhi, Mumbai, Lucknow and Bengaluru transport corporations. Its manufacturing facility is based in Dharwad.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. Tata Motors sells Fiat cars in India through a 50/50 joint venture Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with many small companies in various countries around the world.

Tata Motors Limited is India’s largest automobile company, with revenues of 35,651.48 crore (US$7.95 billion) in 2007–08. 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. The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). Tata's dealership, sales, service and spare parts network comprises over 3500 touch points. Tata Motors also distributes and markets Fiat branded cars in India. Sales & Service Network

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India.

Tata's global operations

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 Korea’s second largest truck maker. The re-branded Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.

In 2005, Tata Motors acquired a 21% controlling stake in Hispano Carrocera, a Spanish bus and coach manufacturer. Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. Debuting in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009 santhosh. In 2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture fully-built buses and coaches for India and other international markets. 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. 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.

Products

The standard Starbus is smart in looks and big on space. The internal styling, with superior fittings, gives space a new dimension. Incorporating high standards of aesthetics, the buses offer the following features:

Extra aisle space for comfortable movement and greater safety Wider seats with armrests and backrests that fit the body angle perfectly Extra legroom for greater comfort Ergonomically designed dashboard with a simple instrument cluster Spacious driver cabin for free movement Driving controls within easy reach Driver partition with a large windscreen for all-round vision and a peep window for safer driving Personalised lights for passengers Speakers for the entertainment system. LP / LPO 1512

Engine Cummins 6BT 5.9; Water cooled direct injection turbocharged diesel engine

Maximum Power 101 KW (135 HP ) at 2400 rpm

Maximum Torque 490Nm at 1400-1600 rpm

Gear Box TATA G-600; 6 Forward 1 Reverse

Clutch Diameter 330 mm; Dry Single Plate

Suspension Semi elliptical leaf spring at front and rear; Hydraulic double acting telescopic type at front and rear; Anti-roll bar - front only

Tyre Size 10 R 20 -16 PR

Steering Integral hydraulic power assisted steering

Brakes Dual circuit, full air S-cam brake system with EEB fitment Fuel Tank Capacity 250 litres

Wheelbase 5545 mm

Front Overhang 1775 mm

Rear Overhang 3325 mm

Maximum Width 2560 mm

Overall Length 10645 mm

Turning Circle Diameter 20830 mm

Maximum Speed 87 kmph

GVW 14860 kg

Electricals Battery: 2x12 Volts, 150 Ah; Alternator Capacity: 45 Amps

LPO 1316 Engine Cummins 6 BT Engine Position Front Max HP 160 hp at 2400 rpm Max Torque 550 Nm at 1400-1700 rpm Emission Norms Euro I / Euro II Fuel Diesel Transmission (Gears) GBS-600 Suspension Weveller-Semi elliptical leaf spring at front and rear, Antiroll bar at front axle only. Brakes Fully duplicated,full air S-CAM brake system Fuel Tank Capacity 250 litres Speed 90 kmph Gradability 35% Tyres 10.00 x 20 -16 PR Diagonal Ply Drive Option Right Hand Drive/Left Hand Drive A/C AUXILLARY ENGINE DRIVEN No of Doors 1/2

LPO 1621

CUMMINS 6BTAA 5.9 Engine Position FRONT Max HP 126 HP at 2500 rpm Max Torque 430 Nm at 1675 rpm Emission Norms Euro II Fuel Diesel Transmission (Gears) GBS-50/GBS 60 (Optional) Suspension Semi elliptical leaf spring at front and rear Brakes Dual circuit full air S-cam brake Fuel Tank Capacity 160 litres Speed 80 kmph Gradability 26% 10.00 x 20-16 PR 10 R 20 RADIAL Tyres (OPTIONAL) Drive Option Right Hand Drive A/C Auxiliary Engine Driven No of Doors 1/2

LP 1618

CUMMINS 6BTAA 5.9 Engine Position FRONT Max HP 180 hp at 2500 rpm Max Torque 646 Nm at 1500 rpm Emission Norms Euro III Fuel Diesel Transmission (Gears) Allison's Automatic Transmission Semi elliptical leaf spring at front and rear Suspension Antiroll bar at front axle only.Pneumatic suspension (Optional) Brakes Dual circuit,full air S-CAM brake system Fuel Tank Capacity 250 litres Speed 93 kmph Gradability 24% 10.00 x 20 -16 PR Diagonal Ply 10.00R20 Tyres (Radial Tyre) Optional Drive Option Right Hand Drive A/C AUXILLARY ENGINE DRIVEN No of Doors 1/2

A Comparison of Tata and Mazda School Bus Diesel BS-III 32 to 36 seat Air Condition Comparison between TATA and Mazda Buses

Comparison Tata and Mazda School 2 8 0 0

m m

8150 mm

2200 mm 2200 mm

Some Ergonomically Designed Features of Tata School WARRANTY

MAKE AND MODEL 36 Seat on LP 712 SWARAJ MAZDA T3500 BS3

ENGINE, DRIVELINE AND CHASSIS 3 YEARS/ 3 LAKH KM 2 Years on Engine only PAINT 6 MONTHS NA

BODY 18 MONTHS NA

Market Analysis of BUSES with New Trends Summer Internship Project Report Submitted towards Partial Fulfillment Of Post Graduate Diploma in Management (Approved by AICTE, Govt. of India) Academic Session 2010 – 2012

Submitted By: Abhinandan Mehrotra BM-010004 Under the Guidance of: Industry Guide Faculty Guide Mr. Jayant Khosla Dr. Timira Shukla Sales Manager Prof.IMS,GHAZIABAD TATA MOTORS Ltd.

Acknowledgement

We owe a lot many acknowledgements, to a lot many persons without whom this work would not have been in its present form. First, we thank Mr. Jayant Khosla, Sales Manager , at TATA MOTORS Ltd, My Mentor PROF. Dr. Timira shukla for his continuous support. They was always there to listen and to give advice. They taught us how to ask questions and express our ideas. He showed me different ways to approach a research problem and the need to be persistent to accomplish any goal. We are also indebted to thank our Faculty Guide for their valuable suggestion and guidance in this work. Last, but not least, we thank our family: our parents, for giving us life in the first place, for educating us with aspects from both arts and sciences, for unconditional support and encouragement to pursue our interests, even when the interests went beyond boundaries of language, field and geography.

Sincerely, Abhinandan Mehrotra , IMS Ghaziabad

DECLARATION

I hereby certify that content presented in the project entitled “Market Analysis of buses with new trends” in the partial fulfillment of the requirement for the award of the degree of Post Graduate Diploma In Management from IMS - Ghaziabad is an authentic record of my own work, carried out under the kind guidance of my industrial mentors Mr. Jayant Khosla and my Faculty Mentor Prof. Timira Shukla. The matter embodied in the project has not been copied by me from any sources.

Abhinandan Mehrotra

TO WHOSOEVER IT MAY CONCERN

This is to certify that Abhinandan Mehrotra, student of PGDM (Full Time) 2010-12 batch, IMS Ghaziabad, has executed his project in Marketing under my supervision and guidance. During the project execution he was found to be very sincere and attentive to small details, which were discussed with him. I wish him good luck and success in his future studies and endeavor.

Prof. Timira Shukla Faculty, Marketing IMS, Ghaziabad INTRODUCTION

Established under the parent company, Tata Group, in 1945, Tata Motors

Limited has become India’s largest automobile company. It was the first Indian automobile company to list on the New York Stock Exchange. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. This partnership has led Tata Motors to not only become India’s largest automobile company but also India’s largest commercial vehicle manufacturer; the world’s top five manufactures of medium and heavy trucks and the world’s second largest medium and heavy bus manufacturer. Having just entered the passenger vehicles market segment in 1991, Tata Motors now ranks second in India’s passenger vehicle market.

Tata has enjoyed the prestige of having developed Tata Ace, India’s first indigenous light commercial vehicle; Tata Safari, India’s first sports utility vehicle;

Tata Indica, India’s first indigenously manufactured passenger car; and the Nano, the world’s least expensive car.

COMPANY PROFILE

Company Overview The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. The motor group was established in 1945 as part of the larger Tata Group. They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market. Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both product lines of the Tata Motors group have seen success, but much of this has been built upon the more deeply established commercial vehicle product line. Tata Motors commercial line has been established for several years in many market segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. Tata Motors has expanded their business and market share around the world through a series of acquisitions. In 2004, they acquired Daewoo commercial vehicle Company in South Korea which was South Korea’s second largest truck manufacturer. This acquisition gave Tata Motors a significant presence in the Korean market. They have also entered into joint ventures with companies such as Thonburi Automotive in 2006, which allowed them to manufacture and market pickup trucks in Thailand. “We think it makes sense for Tata to expand through acquisition (as it did in tea and steel) than spend a decade to build the business” (Lehman Brothers). The commercial vehicle area of the business has certainly been how Tata Motors have built their reputation, with commercial vehicles accounting for 80-85% of company profits. They are beginning to employ a similar technique as they now expand into the passenger car business. Tata Motors have been making global headlines in the auto industry lately; the largest news being their acquisition of Jaguar and Land Rover from Ford. “Tata paid 2.3 billion dollars to Ford for the two brands that cost Ford 5.3 billion” (Carty, USA Today). This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time. Tata, like many new businesses it acquires, is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business. “Tata will give us some space. They want us to run our business, be a premium British car company” (Mike O’Driscoll, managing director of Jaguar). This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future. Furthermore, Tata Motors made another large announcement regarding their progress in the passenger vehicle segment. In January they announced that they, “would release a $2,500 car that could replace the motor scooters commonly used in developing countries to cart around whole families” (Carty, USA Today). This is a major break through in the automotive industry and shows how far reaching, diverse, and competitive the Tata Motors group is becoming. Soon they will be serving customers in the high-class luxury market while still catering to their older niches in developing countries. Corporate Governance Since Tata Motors is a part of a large conglomerate company it needs to have a strong corporate governance to ensure that its employees act ethically and the business continues to run smoothly especially during the ever changing and dynamic global economy. “Tata Group’s corporate governance is founded upon a rich legacy of fair, ethical, and transparent governance practices” (tatacarsworldwide.com). One of the more important parts of this is the transparency of the company people have a right to know what the company is doing not only to ensure ethical practices, but for the insurance of their many shareholders whom have a right to know the inner workings of the company. Tata has created some models for employees to guide themselves through everyday business practices to ensure that the corporate governance is continuously being upheld. The Tata business excellence model is upheld by Tata quality management services. Quality management is an in-house group dedicated to helping the various Tata companies achieve their business objectives through specific processes. The two main processes that the quality management services employees focus on are business excellence and business ethics. These two objectives have helped build Tata into the strong, dynamic company it is today. These models are entrenched in the company’s ethnical standards and Tata feels strongly about enforcing both throughout the company. “Tata quality management services plays the role of supporter and facilitator in the journey that Tata enterprises undertake to reach the peaks of business eminence while, at the same time, adhering to the highest ethical standards” (Tata.com). To further prove their commitment to quality and ethical practices Tata has introduced annual quality awards for those companies conducting business with the utmost quality. These awards are called the JRD quality value awards named after the late chairmen JRD Tata. These awards are presented annually on July 29th, the birthday of JRD Tata. Tata has committed to ensuring quality and ethical standards not only within Tata Motors, but throughout their many other branches and sectors of the Tata Group. They have done so by benchmarking quality standards through the Tata business excellence model as well as providing incentives for companies to strive to improve the quality of their service, by awarding JRD quality management awards. Financial Position Tata Motors have increased its earnings over the years through their various acquisitions and joint ventures with truck manufacturers in Southeast Asia. Gross profit in the year 2006 was 1,160.9 million and increased to 1,510.1 million in the year 2007. Earnings after taxes also increased significantly between 2006 and 2007 increasing from 336.6 million to 405.5 million in 2007. After a large drop in revenues from 2004 to 2005 when the company first went public on the NYSE , it has been increasing revenues greatly annually, from 4,422.0 million in 2005 to 7,354.0 in 2007.

Core Competencies Tata Motors is able to maintain, as well as increase, their market share by capitalizing on their core competencies. Tata Motors is active, competitive, and dynamic in all aspects of the automotive industry, which means that there must be many different activities going on in all areas of the company. As a result of the ever evolving automotive industry Tata Motors must always be changing and one way to stay at the forefront of the industry is to make continuous improvements in technology through research and development. One way that Tata Motors has done this is by producing one of the most efficient and low cost vehicles on the market. Acquisitions, mergers, and expansion is another core competency that Tata Motors has is embedded in their company structure and philosophy. Another core competency that Tata Motors holds is being located in the India. This location has allowed them to understand not only the Indian market but also the dynamics of emerging and developing markets. This market understanding and knowledge allows Tata Motors to manufacture their products at lower costs, sell them to emerging markets while making profits as well as take advantage of the strong labor base in India. Research and Development One factor to Tata Motors success is their constant advances in automobile technology through research and development. There is a high emphasis on thorough research that provides the much-needed inspiration for the birth of new ideas, which in turn breathes new life into products. They employ approximately 1,400 scientists and development officers. Tata Motors has several research and development centers in India. The Research Center at Jamshedpur and the Engineering Research Center in Pune are among the finest in the country (Tata.com). They possess forums to develop and test durability, engine performance, emission, safety, design and style, noise, hydraulics, tracks, and instrumentation. Both have won numerous national awards in research and development efforts since their inception in 1966. Through these advanced research centers Tata has created sophisticated emission measurement systems and digital prototyping laboratories. Some other technologies that are part of Tata Motors’ arsenal are those that offer improved electronic controls for engine systems and other “vehicle drive-train and chassis systems” (Tata.com). The company is currently focused on equipping vehicles of the future with technologies for improving communication, navigation and entertainment. One example of these technological improvements is highlighted in the OneCAT . This concept car is a fiberglass vehicle that virtually powered by air and is emission free. The OneCAT weighs only a 350 kg and has a piston engine that runs on compressed air. This car can run between 200 to 300 kilometers on one Euro of compressed air. A spokesman for Moteur Development International, a company that partnered in the development of this car said, "The engine is efficient, cost-effective, scalable, and capable of other applications like power generation," (Autopartswarehouse.blog.com) This car is truly a representation of the next step in green automobiles. The car’s engine’s emission can be used as an air conditioner in the cabin. This car is very futuristic and is still in the development stages: “Nonetheless, Tata and Moteur Development International are confident that OneCAT, which can accommodate three adult passengers, is competent enough to go against potential green car rivals and energy efficient autos such as the hybrid, bio- fuels, and electric vehicles. The ‘air car’ is targeted for release this year with a base price of around £2,500.” (Autopartswarehouse.blog.com) Some of Tata Motors other technological advances can be seen in the new car the Nano nicknamed the People’s Car. This car, which is just emerging into the market, is the world’s cheapest car. Tata Motors achieved this is through using new materials such as, re-engineered plastics and modern adhesives. It will revolutionize the auto industry in India and soon in other emerging markets when Tata starts exporting. The Nano was able to achieve its low price and gain the attention of the entire automotive industry through its advances in materials and adhesives technology. Acquisitions, Mergers & Expansion

Like other companies, Tata Motors is always growing and expanding and the main way they do this is through acquisitions and mergers. Since 2004, Tata Motors has merged or acquired all of or at least part of four different companies. In March 2004, Tata Motors acquired 100 percent of the Korean based Daewoo Commercial Vehicle Company, Korea’s second largest truck maker, for 102 million dollars. Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s current models as well as introducing a few new models globally just as it had been done under Korean management. In February 2005, they acquired 21 Percent of Hispano Carrocera, Spain- based company, for 12 million Euro. In April 2005, Tata Motors Limited merged with Tata Finance, and lastly in March 2008 Tata paid Ford Motor Company 2.3 billion for Jaguar and Land Rover companies (Tata.com). These acquisitions and mergers allow Tata Motors to break into foreign markets and develop a much larger share of the automotive industry. It also helps them attain the knowledge, technology, and programs that allow them to succeed in that particular sector of the automotive industry or in a particular region or culture. For instance, the purchase of Jaguar and Land Rover allows Tata to enter into the luxury car market without having to research the market, build the technology, among other important aspects of getting into a new market segment. It further helps them enter into the very competitive and highly desirable mature markets in Europe and in future hopes of securing market segments in the United States. Tata Motors is currently in a growth stage as stated on their website: “Tata Motors Ltd is in a mega expansion mode. The investments would be in product development, capital expenditure in capacity enhancement, domestic and international acquisitions and mergers” (Tata.com). Organization Location Tata Motors is located in the developing country of India. This location has been and will continue to be vital to Tata’s success. In India, Tata can take advantage of the fact that manufacturing labor cost is only eight to nine percent of sales, compared to 30 to 35 percent of sales in developed countries. In addition, India is one of the world’s largest producers of automotive components which give Tata Motors direct access to many of these components. Tata has higher bargaining power with suppliers because it is a local, not foreign, car manufacturer. Tata Motors is able to leverage Indian automotive market because the current increase in demand due to the improvements in infrastructure and growth of population and disposable incomes in India. The Society of Indian Automobile Manufacturers stated, “India, where some 1.4 million new cars are sold each year, is also a hugely attractive market for dozens of car companies and most of them can’t risk ignoring what appears to now be a potent competitive advantage for Tata Motors. India’s car market is expected to touch 2.2 million units a year by 2010” (Livemint.com). Additionally, the India government has made protectionist polices and regulations that are extremely favorable to Tata. In December 1997, the Indian government put in place policies that require foreign carmakers to invest at least 50 million dollars in equity to set up manufacturing operations in India. This means that Tata Motors is able to take advantage of the low cost of labor, land assets, and overall investment practices without having to implement this 50 million dollar investment. Finally, Tata Motors largest competitive advantage is that it has prospered and grown in only developing markets for over 70 years. Tata Motors has implemented programs that allow it to prosper while maintaining low costs and high profits. Lastly, Tata Motors has a competitive advantage simply because they are part of the larger Tata Group. Tata Group supplies Tata Motors with access to knowledge, resources, technology and companies operating in many different industries worldwide allowing innovation and easy availability to access other sources. PEST Analysis Political Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the Middle East, and Australia, it needs to pay close attention to the political climate but also laws and regulations in all the countries it operates in while also paying attention to regional governing bodies. Laws governing commerce, trade, growth, and investment are dependent on the local government as well as how successful local markets and economies will be due to regional, national and local influence. On March 26, 2008, Tata Motors reached an agreement with Ford to purchase Jaguar and Land Rover. In order to be capable of this acquisition, Tata Motors must have a full comprehension of the governing bodies and laws regulating commerce in the home country, the United Kingdom, but also in countries Jaguar and Land Rover operate in. In accordance, Tata’s headquarters in Mumbai, India, strictly controls and regulates operations in all dealerships and subsidiaries, in addition to knowing and abiding by all labor laws in the multiple countries where they have manufacturing plants it has to watch political change. This will be especially vital in the future as Tata Motors continues to expand and grow into new markets. “While currently about 18% of its revenues are from international business, the company's objective is to expand its international business, both through organic and inorganic growth routes” (Tata.com). The foundation of the company’s growth internationally is a deep understand of economic stimulation, customer needs, and individual government regulations and laws. Although it is the headquarters ultimate responsibility to make sure each individual office and branch is operating and abiding by the local laws, it will become increasingly more important for that duty to be taken care of at the regional or even local level. Economic Operating in numerous countries across the world, Tata Motors functions with a global economic perspective while focusing on each individual market. Because Tata is in a rapid growth period, expanding or forming a joint venture in over five countries world-wide since 2004, a global approach enables Tata Motors to adapt and learn from the many different regions within the whole automotive industry. They have experience and resources from five continents across the globe, thus when any variable changes in the market they can gather information and resources from all over the world to address any issues. For instance, if the price of the aluminum required to make engine blocks goes up in Kenya, Tata has the option to get the aluminum from other suppliers in Europe or Asia who they would normally get from for production in Ukraine or Russia. Tata Motors also has to pay close attention to shifts in currency rates throughout the world. Currency fluctuations can equate to higher or lower demands for Tata vehicles which in turn affect profitability. It can also mean a rise in costs or a drop in returns. But they also have to pay attention to not just the domestic currency, the rupee, but also to the dollar, euro, bhat, won, and pound, to just name a few. Just because the rupee is strong against the dollar does not mean it is strong against all the other currencies. Attention to currency is important because it influences where capital investment will develop and prosper. Social Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will affect how well a company performs. This includes every stakeholder from the CEO and President, down to the line workers who screw the door panel into place, from the investor to the customer, the culture and attitude of all these people will ultimately determine the future of a company and whether they will be profitable or not. For this reason, Tata Motors tends to use an integration and rarely separation technique with foreign companies they acquire. On the other hand, some economic issues that Tata Motors face must also be looked at from a more localized perspective. For instance, the market in India for cars is much different than the market for cars in Italy. For one, India has over one billion more people than Italy does, thus the market is much larger or not as limited. Second, you must also take into affect the demographics and the average income of each market. Italians have a higher average income per capita than Indians and Italian citizens tend to drive larger and fancier cars. For this reason, the Tata Nano might not do so well in the Italian market. In summation, Tata Motors views the economy from a global perspective with operations across the entire globe; however, they must also maintain a local market understanding and knowledge when it comes to product positioning and placement throughout the different markets Tata conducts business in. In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company, which was at the time Korea’s second largest truck maker. Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s current models as well as introducing a few new models globally just as it had been done under Korean management. With the new acquisition of Jaguar and Land Rover, Tata will have to be careful with how they handle the acquisition. While Land Rover is thriving while under the helm of Ford, Jaguar was more of the trouble child. “Jaguar cost Ford some $10 billion during its 18-year stewardship and its sales were in headlong decline, especially in America, its most important market. Industry analysts also struggled to see what value Tata could add that had eluded Ford, and what synergies there could be between a maker of trucks and basic cars… and two luxury marques.” (Economist). Separation could be a good approach for the immediate future to keep the name of Jaguar and Land Rover distinguishable and associated with the luxury automobile market. Overall, Tata does a good job of integrating some aspects of their large multi-national conglomerate into new acquisitions; however, the company must also understand that separation from the name Tata can be valuable in some social areas. Technology Tata Motors and its parent company, the Tata Group, are ahead of the game in the technology field. The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide. This equates to Tata Motors having lots of experience and resources to draw from for research and development purposes. “The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D” (Tata). Employing 1,400 scientists and engineers, Tata Motors’ Research and Development team is ahead of the pack in India’s market and right with the rest of the field internationally. Among Tata’s firsts are “the first indigenously developed Light Commercial Vehicle, India's first Sports Utility

Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car,” as well as the increasingly famous Tata Nano, which is projected to be the world’s cheapest production car (Tata). In the automotive industry, it is becoming increasingly crucial for manufacturers to stay on top of the technology curve with new problems always rising such as escalating gas prices and pollution problems. Tata recognizes this and dedicates lots of resources and time into research and development to be even with or preferably ahead of other competitors, global trends, and changing economies.

In all, an automobile manufacturer must change, adapt, and evolve to stay competitive in the automotive game, and this is exactly what

Tata is doing with their rapid growth, and extensive research and development.

SWOT ANALYSIS

STRENGTHS

Tata Motors excels when it comes to innovation through intensive research and development. Their ability to make the least expensive car on the market, the Nano which will retail for $2,500, is far beyond what any other car dealership has created. This innovation gives Tata Motors their main competitive advantage.

Tata Motors makes everything from tractor-trailers to the world’s least expensive car. This product diversity grants them a competitive advantage over their competitors because they can satisfy more markets and customer needs. Another strength that

Tata Motors possesses is high corporate responsibility. They donate a portion of their profits from stock increases towards a specific charity. This highlights Tata Motors overall desire for community improvement while also emphasizing Tata Motors’ high morals and values which is something money can not buy.

Tata Motors is also a very eco-friendly company. One of their goals is to produce an emission friendly car, and in 2000 Tata

Motors launched the first compressed natural air bus. This air bus requires the owner to plug the car into a standard electric plug for four hours to fill the air tanks. This brought the concept of an “air- car” to reality and the name for this compressed natural air car is

“OneCAT.” OneCAT has no gas costs or fossil fuel emissions which makes it a very attractive car for the more mature markets but also the upper classes in developing countries at this point. It is also a great car to have in highly populated countries, such as China and

India, because pollution with its adverse effects is a very large concern. OneCAT also is more efficient that any other present

Hybrid car, so when inventors think they have the best product out on the market, they actually do not. There will always be something else to invent or improve on and Tata Motors is a prime example of that.

Tata Motors is unique in a way in which when it buys a company. Tata Motors keeps the original management of that company intact. The company that Tata Motors purchases will look exactly the same in terms of management and organizational structure as if it was never purchased by Tata Motors.

WEAKNESSES There are strings attached with every new invention and improvement on products. These strings are Tata Motors weaknesses and what other groups perceive as their weaknesses.

One weakness that Tata Motors faces is its inability to meet safety sINTRODUCTION tandards. Although they have made the most inexpensive car out on the market, it has yet to pass all the safety standards which is a legal factor. Some consumertandards. Although they have made the most inexpensive car out on the market, it has yet to pass all the safety standards which is a legal factor. Some consumers and pessimists inquire as to how Tata Motors can make such a cheap car and withstanding a car accident or not just falling apart after hitting something once. Pessimistic people also want to believe that car manufactures are already doing everything they can to keep costs low for the consumer, and if that is the case, then putting the cheapest car out on the market automatically questions if it is safe to drive.

Tata Motors only have been making passenger cars for the approximately last ten years. This can be viewed as a weakness from a customer standpoint since a decade does not seem like a lot to consumers and therefore they will think that Tata Motors is inexperienced car manufacturing. Consumers will wonder how a car manufacturer can be in the market for 10 years and produce the cheapest car out on the market. How can Tata Motors manufacture such a cheap car that meets emission and safety standards being so young? This causes consumers to be skeptical.

Another weakness that Tata Motors faces is within its domestic market. Car sales in India are less than 1 million annually.

This draws a problem because Tata Motors may not get the sales that the company hopes for and how can they sell cars to people who are not buying cars?

The new and innovative OneCAT still has some rough spots that need to be worked out and one of them is that it has pollutant emissions and greenhouse gas emissions from the generation of electricity used to compress the air. So although it is marketed as being emission free, it technically is not and this is another weakness. Also, OneCAT only goes 62 miles per hour for 56 miles in an urban cycle. This is not very far and Tata Motors will have to improve on this weakness as well as the emission weakness in order to draw more comsumers to this new automobile.

OPPORTUNITIES

Tata Motors has already opened the doors for many new and innovative ideas, but not only for their company, but their competitors as well which could turn into a threat. One of the major opportunities that Tata Motor faces is that as of right now 90 percent of China and India’s adult population do not own cars, partly because cars are costly and require more expenses after purchased. So the market for a low-priced car is huge which benefits Tata

Motors perfectly since they produce the lowest priced car on the market. This is a huge opportunity for Tata Motors because if they can get their feet into that market of people that do not have cars because they cannot afford them, then they will make large profits down the road. China’s total car sales are estimated at over 8 million dollars annually and they were the world’s second largest car market in 2006. China’s government forecasts that demand for cars will top 20 million by 2020. With Tata Motors in the market with the cheapest car, China’s demand for cars will probably increase even more significantly which will in turn increase sales for Tata Motors.

Japan, North America, and Europe automobile sales went up over the years because of demand for smaller cars increased. This demand for smaller cars is a great window of opportunity for Tata

Motors because not only are their cars small, but they are cheap and environmentally friendly as well. Once people in these countries get Tata Motor automobiles then their automobile sales will continue to rise.

As of March 2008 Tata Motors finalized a deal with Ford Motor

Company to acquire the British businesses, and Land

Rover. This is a huge opportunity for Tata Motors since they will acquire the large knowledge base and technologies for producing and marketing luxury vehicles. This acquisition helps them dive into the more mature markets in Japan, Europe and the U.S. The knowledge transfer from these two companies will greatly improve

Tata Motors ability to continue to grow and flourish in both developing and developed market segments.

THREATS

The obvious threat to Tata Motors is intellectual property rights. Tata invented the cheapest car on the market and every automobile manufacturer wants to know how Tata did it.

Headhunters are soon going to find out this valuable information and make it available to their own company. This is a huge threat to Tata Motors because at first they had low competition, but once other car manufactures find out how they invented such a low cost car, and then these companies too will jump on board and design their own line of low cost automobiles. On one hand this can be a threat, but on the other it may not affect Tata Motors at all because people will still want to purchase their product since they were the pioneers of all the excitement.

Other companies are starting to compete for some of this market share. In fact, the Pakistan’s Transmission Motor company has built a basic four-wheeler for only $2,100. This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile. This is going to be the beginning of new emerging car manufactures that will be producing low priced cars. Another obvious threat is that dealing with gas prices. Gas prices continue to rise and the Nano requires gas, but those who purchase the Nano probably do not have a lot of money and so if gas prices keep jumping up then that market of consumers will not be able to purchase the car. If OneCAT can be made as cheaply as the Nano then that will benefit the consumers even more because they will get a car that does not run on gas and it will be cheap to purchase. On the other hand, gas company will not want OneCAT to hit the market because there will be no profits to be made off the vehicle. Gas companies have a lot of say over the automobile industry so this could be a big threat.

Another main concern that Tata Motors faces is that cheap cars in India will have an adverse effect on pollution and global warming because most of the population will be able to afford the cars. With more people driving cars there will be more accidents and deaths, as well as higher fossil fuels leaked into the environment causing even more pollution then there already is.

Tata Motors is family owned and this can potentially cause problems down the road because some family members can become greedy and money hungry. Once they really start to rapidly grow then there may be family feuds and people not pulling their part.

Another threat is the whole point of their cars being made with cheap plastic. Are these cars durable? Will they hold together in a head-on collision? As off August 2007 there was no further information on this topic though.

CAPITALIZING ON TATA MOTORS’ SUCCESS

Arguably, one of the most significant aspects of a business’s strategy is constant environmental scanning, or looking for opportunities that will either help a business grow or salvage plummeting profit margins and stock values. In the case of Tata

Motors, and the creation of the Nano and OneCAT from a line of service and military vehicles provide a variety of different ways for other companies as well as other industries to capitalize on the success that Tata has realized. There are three main avenues that businesses can take to exploit the success that Tata Motors has generated. First, through acquisitions and mergers, like early discussed, Tata integrates the management, programs, and knowledge of the businesses it buys out. Secondly, Tata Motors places heavy investment into research and development. These two points have been discussed extensively throughout this report so please refer to the previous sections: Core Competencies and the

SWOT Analysis. Finally, Tata understands and has succeeded in growing, profiting, and reducing costs in developing markets for over half a century.

Tata Motors, like its parent company Tata Group, has much knowledge and understanding in working in developing markets and countries. Companies considering expanding into developing markets should consider forming a joint venture or partnership with any of Tata Group’s numerous industries. The knowledge transfer can save time and money and further ensure a more successful expansion.

CONCLUSION

Tata Motors is an overall strong company that has found strength and expansion through its parent company, Tata Group, but also through its numerous acquisitions and mergers. Although Tata

Motors stock prices have fallen since the start of the 2008 year due to suggestions that Tata Motors is overreaching by adding luxury brands to pair with the Nano, the world's cheapest car. Chairman of

Tata Group, , rejects suggestions that, ``We're not trying to be a global player,'' he told reporters in New Delhi Jan. 10 after unveiling the Nano, which will be built in a new plant costing 10 billion rupees ($249 million). ``We will grow internationally in select markets'' (Krishnamoorthy).