Faculty Contributor: Murali Patibandla, Professor
Student Contributors: Arun A, Balasubramanian C, Indranil Guha, Gautham M N
Tata Motors produces vehicles both in the Light Commercial Vehicles (LCV) and the Medium and Heavy Commercial Vehicles (M and HCV) segments. It faces higher competition in the LCV segment, where its Tata ACE has been a huge success. Internationalization forms a key component of Tata Motor 's strategy and it has successfully entered countries having a demand similar to India like South Africa, Thailand and Argentina, mainly through acquisitions and joint ventures. It needs to improve its product reliability, service network and channel reach in order to maintain and replicate this success in other markets. Some of the recommendations for Tata Motors are exploring mass customization options in the Small Commercial Vehicle (SCV) segment, improving brand reputation and technology appropriation to bring out a world class ultra-HCV segment.
Tata Motors is currently India 's largest automobile company with revenues of $7.2 billion in 2006-07. It is by far the leader in commercial vehicles and the second largest player in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. Employing around 23000 people and headquartered in Mumbai, Tata Motors became the first company from India 's engineering sector to be listed in the NYSE in September 20041. While currently about 18% of its revenues come from international business, the company 's objective is to expand its international business, both through organic and inorganic growth routes.
A brief examination of the truck industry in India using Porter 's analysis helps us understand the threats that Tata Motors faces.
Overview of the Truck Industry in India
The truck market in India comprises the light trucks (LCV) and the medium and heavy trucks segments (M and HCV), of which the
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