International Business and Economics
Amsterdam Business School, 2010
Introduction
Tata Motors is an automotive company to take notice of. Representing the evolving Indian population and growing economy of one of the world’s key emerging markets, it is a market leader for commercial vehicles and third for passenger vehicles in the Indian market. It shocked the world by introducing the $2000 Nano in 2009 and also by growing its portfolio by purchasing Jaguar Land Rover, a company that at first glance embodies values and skills very different to its own. At the same time, Tata Motors has also made some very smart global moves through its purposeful joint ventures and subsidiaries and through its product adaptions to the local markets. However, Tata Motors needs to fully understand its domestic market, as well as the global automotive industry, in order to create a strategy that will ensure its future total success.
History of Tata Motors
Tata Motors began manufacturing vehicles in 1954, though the company was established before that, in 1945 for locomotive manufacturing. Its first commercial vehicle in 1954 was created through a partnership with Daimler-Benz AG. In 1991 it expanded and entered the passenger vehicle market with its Tata Sierra.
Currently Tata Motors operates in 35 countries, especially focusing on markets with conditions similar to India, such as Russia, Turkey, and many African nations. It is currently the Indian market leader in commercial vehicles, and they are expected to produce almost 400,000 in FY2010. The product line for commercial vehicles includes all sizes and styles of trucks and buses. Tata Motors produces less passenger vehicles than CVs, with an expected output of almost 300,000 for FY2010. The most popular product in India is the Indica Vista, a small hatchback car (see appendix for image).
The Indian economy and its automobile market
To a great extent Tata Motors will see its future