The company has the workforce of 22000 employees working in its three plants and other regional and zonal offices across the country.
Tata Motors' range of passenger cars is still not comprehensive by international standards. In commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic heavy commercial market. The company is trying to modernise its range of commercial vehicles. Tata Motors hived off its vehicle finance business into a separate subsidiary, TML Financial Services (TMLFS), in September 2006.
Daewoo acquisition
Tata NovusIn 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 Tata Novus 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 On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus).
Tata Nano
The Tata Nano is a city car launched by India's Tata Motors. The model was unveiled at the 9th annual Auto Expo on January 10, 2008 at Pragati Maidan, New Delhi, India.According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km (51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways (61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-cylinder petrol engine will be used in a car with a single balancer shaft.Tata Motors has reportedly filed multiple patents related to the innovations in the design of Nano, with powertrain design alone having 34 patents. The head of Tata Motors' Engineering Research Centre, Girish Wagh has been credited with being one of the brains behind Nano's design.Tata claims that the Nano complies with Bharat Stage-III and Euro-IV emission standards.The Nano has 21% more interior space and an 8% smaller exterior, when compared with its closest rival, the Maruti 800. The standard version of the Nano (without air conditioning, radio and power steering) will cost Rs 100,000 (not including levies such as VAT/LT, transport and delivery charges) (US$2500, GB£1277, €1700), making it the least expensive production car in the world. The choice of price has led to the Nano being called the "1-lakh car" (after the Indian word, meaning '100,000').The car will come in different variants, including one standard and two deluxe variants. The Deluxe variant will have air conditioning, but no power steering. The car is expected to be produced in the Singur plant in West Bengal which is under construction. The initial production target set by Tata Motors is 250,000 units per year. Bajaj Auto and Mahindra-Renault have plans to launch cars in this price range.
Global competition
Tata Motors have some distinct advantages in comparison to other MNC competitors. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. India is an excellent source for IT based engineering solution for products & process Integration. There are strong supporting industries i.e. auto component industry has world class capabilities. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. There are favorable Government polices and regulations to boost the auto industry i.e. Incentive for R&D.
Global presence Tata Motors, which has major presence India as seen at a roadside truck stop in Ladakh, is looking to expand its business globally.In 2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company.
On January 3, 2008 Ford Motor Co. picked India's Tata Motors Ltd. as the top bidder for its Jaguar Cars and Land Rover units and has now entered more "focused negotiations at a more detailed level" with Tata.
Present global challengeVolvo, a manufacturer of trucks, buses, cars, construction equipment, and aero engines, has entered in India in 1998. Its main focus is in the area of fully built buses. In India, it has focused on providing economical transport solutions in consonance with its values of safety, quality, and environmental care. Its competitive advantage is its high technology which makes the vehicle a very comfortable option to travel through. Its trucks are reputed for their performance and economy and are the flag bearers in their production activities in India. It is still operating in the niche market of high end buses where the Tata compete through its Spanish buses.
Future challenges
Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.
Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA, (parent NAVISTAR), to manufacture commercial vehicles and to bolster its position in the CV business. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport, cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09. Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007. Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates.
Passenger cars and utility vehicles
- Tata Indica
- Tata Sierra
- Tata Estate
- Tata Sumo/Spacio
- Tata Safari
- Tata Indigo
- Tata Indigo Marina
- Tata Nano (September 2008)
- Tata Xenon XT
