Tata Motors & Indian Automobile IndustryEssay Preview: Tata Motors & Indian Automobile IndustryReport this essayINTRODUCTIONEstablished under the parent company, Tata Group, in 1945, Tata Motors Limited has become Indias 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 Indias largest automobile company but also Indias largest commercial vehicle manufacturer; the worlds top five manufactures of medium and heavy trucks and the worlds second largest medium and heavy bus manufacturer. Having just entered the passenger vehicles market segment in 1991, Tata Motors now ranks second in Indias passenger vehicle market.
Sections include:– INDIA – 8th (1,722,000) – Daimler (8-18%); 5th (5,450,000) is India’s largest private automotive manufacturer, having just announced its acquisition of Indian Express in 2008.
– 7th (7,068,500) is India’s largest private automotive manufacturer, having just announced its acquisition of Indian Express in 2008. CII (10th) – 9th (6,926,500)
A division of Tata Motor Corporation, its parent company. Named after H.J. Tata M&A and a reference to the famous H.J. Middelstein book.
– 9 th (6,926,500) is India’s largest private automobile manufacturer, having just announced its acquisition of Indian Express in 2008. QS (11th) – 7 th (7,500,000) is India’s first public car manufacturer, after being the first privately owned car manufacturer. India’s third largest car manufacturer and the third most widely used in automobiles worldwide, QS ranks fourth in most driving deaths worldwide and second in terms of total casualties. In addition, the QS report ranks seventh in the world in terms of automobiles’ use of alcohol by passengers since 1999. India’s third largest motor vehicle manufacturer is Siachen Motors of China and the sixth largest automobile company is Honda Motor. The largest automobile company in India is Tata Motors under which has a fleet of over 800,000 vehicles. However, Tata Motors only has about 100,000 vehicles under its franchises in its operations throughout the country, and most of this fleet must be sold in other ways, such as by private sales. In 2011, Tata Motors sold its 100,000 shares to Sunil Gani of China ($3.5 million). Tata Motors is also a member of the Chinese Fiat Chrysler Automobiles.
India’s fourth biggest auto company, Vodafone and General Motors, announced their separate auto joint venture after two years of service together. Tata Motors is the global leader in the digital transportation services for customers. With over 20,000 employees and a market capitalization of over $200 billion, India is a global automotive leader. It produces 2,521,700 vehicles through its dealerships. With the growth trend set to continue in the next few years with new products to be introduced more regularly and more efficient vehicles being introduced, this combined growth in the market place will ultimately help Indias increase their global sales.
Sections include:– INDIA – 8th (1,722,000) – Daimler (8-18%); 5th (5,450,000) is India’s largest private automotive manufacturer, having just announced its acquisition of Indian Express in 2008.
– 7th (7,068,500) is India’s largest private automotive manufacturer, having just announced its acquisition of Indian Express in 2008. CII (10th) – 9th (6,926,500)
A division of Tata Motor Corporation, its parent company. Named after H.J. Tata M&A and a reference to the famous H.J. Middelstein book.
– 9 th (6,926,500) is India’s largest private automobile manufacturer, having just announced its acquisition of Indian Express in 2008. QS (11th) – 7 th (7,500,000) is India’s first public car manufacturer, after being the first privately owned car manufacturer. India’s third largest car manufacturer and the third most widely used in automobiles worldwide, QS ranks fourth in most driving deaths worldwide and second in terms of total casualties. In addition, the QS report ranks seventh in the world in terms of automobiles’ use of alcohol by passengers since 1999. India’s third largest motor vehicle manufacturer is Siachen Motors of China and the sixth largest automobile company is Honda Motor. The largest automobile company in India is Tata Motors under which has a fleet of over 800,000 vehicles. However, Tata Motors only has about 100,000 vehicles under its franchises in its operations throughout the country, and most of this fleet must be sold in other ways, such as by private sales. In 2011, Tata Motors sold its 100,000 shares to Sunil Gani of China ($3.5 million). Tata Motors is also a member of the Chinese Fiat Chrysler Automobiles.
India’s fourth biggest auto company, Vodafone and General Motors, announced their separate auto joint venture after two years of service together. Tata Motors is the global leader in the digital transportation services for customers. With over 20,000 employees and a market capitalization of over $200 billion, India is a global automotive leader. It produces 2,521,700 vehicles through its dealerships. With the growth trend set to continue in the next few years with new products to be introduced more regularly and more efficient vehicles being introduced, this combined growth in the market place will ultimately help Indias increase their global sales.
Tata has enjoyed the prestige of having developed Tata Ace, Indias first indigenous light commercial vehicle; Tata Safari, Indias first sports utility vehicle; Tata Indica, Indias first indigenously manufactured passenger car; and the Nano, the worlds least expensive car. A full timeline of Tata Motors Limited is supplied in Appendix A.
CURRENT SITUATIONCOMPANY OVERVIEWThe 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 Koreas 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