Part of the USD 100 billion Tata group, Tata Motors Limited (BSE: TATAMOTORS), a USD 45 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, buses, trucks, and defense vehicles. Being India’s largest and the only OEM(Original Equipment Manufacturer) offering an extensive range of smart, integrated, and e-mobility solutions, it aims to bring new products that fire the imagination of next-generation customers which is fuelled by the state of the art design and R&D centers situated in India, the UK, Italy and South Korea.
With operations within Thailand, UK, South Korea South Africa, and Indonesia, Tata Motors has a robust global network consisting of 109 subsidiary and associate companies, including Tata Daewoo and Jaguar Land Rover.
An Indian multinational automotive manufacturing company, Tata Motors Limited was formerly known as Tata Engineering and Locomotive Company (TELCO). The company believes in ‘Connecting aspirations’, by providing innovative mobility solutions that fulfill customers’ aspirations.
The company takes the topmost position in shaping and enhancing the Indian commercial vehicle landscape, with the introduction of leading-edge powertrains and electric solutions packaged for power performances and user comfort at the minimum life-cycle costs. Their new passenger cars and utility vehicles are made on Impact Design and provide a good blend of connectivity, performance, and driveability.
The mission of Tata Motors, across their globally dispersed organization, is to be passionate in anticipating and offering the best vehicles and experiences that excite their customers globally.
History
Founded in 1945, the company initially manufactured locomotives, but eventually, in 1954, the company manufactured its first commercial vehicle in collaboration with Daimler-Benz AG. In 1988, the company entered the passenger vehicles market with the launch of Tata Mobile and followed by Tata Sierra in 1991.
Headed by Guenter Butschek as its CEO, the company ranked at #226 on the 2016 Fortune Global 500 list of the World’s Biggest Corporations. The company is listed on the Bombay Stock Exchange and The New Stock Exchange.
Product Division of Tata Motors
The diverse portfolio of Tata Motors includes an extensive range of cars, sports utility vehicles, trucks, buses, and defense vehicles which is further explained clearly in figure
Mergers & Acquisitions
Jaguar & Land Rover Automotive Plc.: On 2nd June 2008, Tata Motors announced the completion of the acquisition of Jaguar Land Rover businesses from Ford Motor Company at a consideration of US$ 2.3 billion on a debt-free and cash-free basis. According to the deal, Ford Motors also agreed to contribute $600 million to the Jaguar Land Rover pension plans. This acquisition of two premium British automakers presents the future of sustainable mobility.
Trilix Srl.: An Italy-based design and engineering company, Trilix Srl, was acquired by Tata Motors in October 2010, for the cost of €1.85 Million with the motive to enhance and improve its styling/design capabilities to global standards.
Daewoo Commercial Vehicle Co Ltd (DWCV): Daewoo Commercial Vehicle Co Ltd (DWCV) which was a Korean commercial vehicle manufacturer was acquired by Tata Motors in February 2004 from a consideration of $102 million or ₹465 crores.
Hispano Carrocera: 21% stake of Hispano Carrocera, a Spanish bus and coach manufacturer was acquired/taken by Tata Motors in 2005. The rest of the 79% stake was acquired by Tata Motors in 2009.
INCAT International: It is a UK-and US-based automotive and Aerospace Engineering Company which was acquired in August 2005 for £53.4 million by Tata Technologies which is a fully owned subsidiary of Tata Motors
Marketing Strategy
With approximately 8.5 million Tata branded vehicles plying globally, Tata Motors has provided a broad and varied spectrum of vehicles that are customized for local conditions and meet the highest standards for product quality, environment norms, safety measures, and user comfort. A few of the strategies are listed below:
Tata Motors has developed virtual showrooms where customers can have 3D experience of the cars to working on a blend of dealer development, network expansion, and repositioning of products to turn around the sales of its passenger vehicle.
Tata Capital is exploring different facets of digital media from launching a Voice Bot to a wealth management app called Moneyfy; it caters to help its consumer navigate the challenges posed today.
]By launching click to drive, which is an end-to-end digital sales initiative, their entire passenger vehicle product sales have been taken online.
With its latest social media campaign #WeCountOnYou with comedian Atul Khatri, fitness guru Gunjan Shouts, it tends to teach senior citizens how to remain positive, the importance of being fit, and helping society.
To appreciate the efforts of truck drivers and acknowledging their role on the frontline of the Covid-19 pandemic, Tata Motors has launched a #ThankYouIndianTruckers campaign. Through this campaign, Tata Motors’ motive is to uplift the morale and confidence of the truck drivers. It has also been providing various facilities across the country for the truck drivers through its dealerships, workshops, and Saarthi Aaram Kendras, while also engaging with the ones that are on highways by offering free food, sanitizers, and masks.
Strategies and Reason for Success
Their constant advances in automobile technology through research and development is one factor that makes Tata motors success. 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 Centre at Jamshedpur and the Engineering Research Centre in Pune are among the finest in the country (Tata.com).
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They have forums that can 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.
Tata has created sophisticated emission measurement systems and digital prototyping laboratories through these advanced research centers. Other technologies that are crucial elements of Tata Motors’ arsenal are those that provide advanced electronic controls for engine systems and also ‘vehicle drive-train and chassis systems’. 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 One CAT. This concept car is a fiberglass vehicle that is virtually powered by air and is free of emission. The One CAT weighs only 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 Meteor Development International, a company that partnered in the development of this car has stated that the engine of One CAT is efficient, cost-effective, scalable, and capable of other applications, i.e. power generation.
Being truly a depiction 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 stage.
Conclusion
Tata Motors is able to maintain, as well as increase, their market shares by capitalizing on its core competencies. Not only Tata Motors is active but competitive and ever-changing in all facets of the automotive industry, which means that there must be many varied activities operating in all areas of the company.
As a consequence of the ever-evolving automotive industry, Tata Motors must always be changing, and one way to remain at the forefront of the industry is to make subsequent advancements in technology through research and development. One way that the company has done this is by producing one of the most efficient and low-cost vehicles on the market. Another core competency that Tata Motors has and which is embedded in their company structure and philosophy are acquisitions, mergers, and expansion.
Another core competency that they hold is their presence in India. This location has made them understand not only the Indian market but also the dynamics of emerging and developing markets. This understanding of the market and the technical knowhow allows Tata Motors to manufacture their products at cheaper costs, sell them to emerging markets while earning high profits as well as take the benefit of the strong labor base in India.
