TATA Commercial Vehicles Competitiveness Analysis

Ansoff Grid:

Market Penetration:

Tata Motors in its commercial vehicles segments adopted a turnaround strategy which aimed at
regaining lost grounds to its rivals, it involved execution of sales enhancement, rigorous cost
reduction and timely product launches.This resulted in growth of its market in the domestic market
inch closer to 44% in 2017-18.According to Society of Indian Automobile manufacturers (SIAM)
data, Tata Motors sold a total of 3,76,456 units of commerical vehicles in 2017-18 as against 3,05,620
units in 2016-17, a growth of 23.17 percent.

The company is now changing gears to move one level higher with Turnaround 2.0 in FY1 which
involves initiatives such as sale of certified pre-owned CV and a greater push on spare parts
and aftersales.

Product Development:

In Cargo transportation side, the move to stricter emission norms - from BS III to BS IV - has proved
to be an inflection point for the introduction of new tech features in the truck segment.

Tata Motors have equipped their trucks with sophisticated features which were otherwise seen, so far,
only in passenger vehicles. New safety technology such as Electronic Stability Control, Automatic
Traction Control and “Hill start” aid are being made available that will go a long way in preventing
truck accidents.

In Passenger Transportation side, Tata Motors has unleashed the future of mass public transportation
by launching the Starbus Electric (9m and 12m) and the Starbus Hybrid 12m buses. To meet the
current and future passenger transportation needs in smart cities, they have rolled out a range of smart
buses which are designed, developed and powered by alternate fuels. Developed indigenously, these
buses are safe and comfortable and are economically viable ‘Made in India’ solutions.

Market Development:

The company’s aim is to “win decisively” in commercial vehicle category. The company international
strategy involves identifying new international markets based on the demographical and socio
economical features of specific regions, which include the market’s regulatory, geopolitical and
competitive landscape. To expand global market footprint further, Tata Motors will focus on four key
areas of developing suitable products, driving optimal sourcing and manufacturing, enhancing overall
customer experience and further establishing the TML brand across geographies.

The launch of new models in the Middle East and Africa region, along with the opening of new
markets in these regions will contribute to an increase in international sales volumes.

Diversification:

To increase diversification in the commercial vehicle segment, Tata Motors have made a tie up with
Indian Oil to launch Tata Motors Genuine Oil (TMGO), a single brand of affordable lubricating oils
to be used across the range of CVs.

Apart from that to address the rising concerns over greenhouse gas emissions and their contribution to
global warming, Tata Motors have commited to contribute to the electric vehicle ecosystem

They have led the e-mobility evolution with their best-in-class solutions tailored for the bus segment
in India. They will be supplying a total of 80 Electric buses to the WBTC (West Bengal Transport
Corporation). They have already supplied 20 Ultra Electric 9/9m AC E-buses while the second batch
of 20 9/9m AC E-buses will be delivered by March 31, 2019. The remaining 40 9/12m AC electric
buses will be supplied to WBTC in a phased manner. This order is a part of a larger agenda wherein
they will be supplying 255 E-buses to 6 STUs in the country including WBTC (West Bengal), LCTSL
(Lucknow), AICTSL (Indore), ASTC (Guwahati), J&KSRTC (Jammu) and JCTSL (Jaipur).