Tata Motors Limited is an automotive vehicle manufacturing company based in India. The company is engaged in development, design, manufacture and assembly, sale, and financing of vehicles, as well as sale of auto parts and accessories. The company primarily operates in India, South Korea, South Africa, Thailand, Bangladesh, Indonesia, Singapore, Spain, and UK. The company is headquartered in Mumbai. TATA Motors got listed on the New York Stock Exchange in 2004.
SWOT Analysis
Strengths: Strong domestic player (Indian market).
It is a key manufacturer of commercial vehicles. It has a market share of 64% which has always remained constant. It is India’s largest automobile manufacturer in terms of revenue. It is world’s 4th
Biggest Truck producer and world’s 2nd Bus Producer.
Tata Motors has global presence and in process of acquiring M&A recent Acquisition is with jaguar.
Weakness: Return on Investment on Tata Motors Shares is Low which makes Investors Reluctant
On Investing in Tata Motors. Products made by Tata Motors aren’t considered Luxurious. Products generally targeted for Economy class. Saftey Standards ain’t maintained. One weakness which is often not recognised is that in English the word ‘TAT’ means rubbish.
Opportunities: In summer of 2008 Tata motors announced that it Purchased Land rover and Jaguar from Ford motors. Two of world’s luxury brands have been added to its portfolio will undoubtedly off company’s chances to market vehicles in luxury segments. Nano cheapest Car in the world- retailing at a price slightly higher than a Motor bike.
Threats: Other competing car Manufacturers have been in Passenger Car business for 40 or more years. Therefore Tata Motors have to catch-up in terms of quality and lean production. Sustainability and Environment concern means extra cost for this Low-cost producer. Low safety measures can hamper public trusts which may prove fatal to its domestic market.
Political