Proposing a Strategy to Maintain the Demand of Tata Tiago by Experimental Study on Tata Organization & Its Competitor

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We would like to thank Dr. Sudhir Kamath and Dr. Aparna Venugopal for their support and guidance throughout the project.

We would also like to thank the management and the faculty members of MYRA School of Business, Mysore who provided us with the required facilities and conductive conditions for our project.

Thanking you.

Anudeep.T

Saiteja.N

Vidhyadhar.K

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EXECUTIVE SUMMARY

The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and globalization. The sector seems to be optimistic of posting strong sales in the couple of years in the view of a reasonable surge in demand.

A detailed analysis of TATA motor has been covered under the research in respect of past and Present - Resources and capabilities. The Company Analysis has been done with the help of five forces model, BCG Matrix, SWOT analysis, Vrine Model with comparative analysis of its competitors.

For our project, we have taken the TATA Tiago model of TATA Motor to maintain the demand of product by exploratory study on TATA Motor Organization.

The project is undertaken to look at the market potential for Proposing a Strategy to Maintain the Demand of TATA Tiago by Experimental Study on TATA Organization & its Competitor.

- 1.1 INTRODUCTION

According to the Society of Indian Automobile Manufacturer’s Report quoted in Tata Motors’ Annual Report 2015-16, the industry sales in 2015-16 has 1,318,933 passenger vehicles.

In fact, the sales of Passenger Vehicles grew by 7.24 percent in April-March 2016 over the same period last year. Within the Passenger Vehicles, Passenger Cars have a domestic market share of 14% in overall domestic market share of Automobile industry. In April 2016, Tata Motors passenger vehicles recorded sales of 10,495 no’s, a growth of 2.7%, compared to 10,215 No’s, sold in April 2015.

The opportunities in the Indian automotive industry are the development of the roads network infrastructure, the increasing car penetration in India (partly due to announce of the duty decrease on small cars, the increasing income, and the existence of financial solutions), and the international growth sales.

On the other hand, threats are the global competition (an increased number of global players are entering the Indian passenger car market, as well as in commercial vehicle segment), the booming fuel prices, the input costs, the interest rate hardening and Government regulations (especially in the fields of safety and emission).

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of INR 2,62,796 crores (USD 42.04 billion) in 2014-15. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia.

1.2 A Brief Overview about Tata Motors

Tata Motors was established in 1945 as Tata Engineering and Locomotive Co. Ltd. to manufacture locomotives and other engineering products. It is India's largest automobile company, with standalone revenues of Rs. 25,660.79 crores (USD 5.5 billion) in 2008–09. 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 second largest bus manufacturer.

The company's 23,000 employees are guided by the vision to be 'best in the manner in which they operate best in the products they deliver and best in their value system and ethics.'

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, 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.

Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, 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. 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.

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 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.

Through its subsidiaries, the company is engaged in engineering and automotive solutions,