BUSINESS ENVIRONMENT

INTERIM PROJECT REVIEW

ON
TATA MOTORS

AUTOMOBILE

PGDM 2020-2022, Term- 3

Submitted By: - Submitted To:-

Ashish Rawat - 202011007 Dr Gajavaelli V S

Manish Ashok Harwani – 202012064

Harshika Mohta – 202012087

Astha Parakh – 202022047

 ACKNOWLEDGEMENT

We express our sincere gratitude to Professor Dr Gajavelli V S to encourage us to the highest

peak and to provide the opportunity to prepare for the project. We are immensely obliged for

all the elevating inspiration, encouraging guidance and kind supervision in the completion of

the project.

The flipped class methodology was very effective in learning. Besides, your way of

connecting the tough concepts with real-life examples is a very helping and smart way to

understand. Because of your flipped classroom methodology, we have become more

corporate-friendly and corporate ready.

Thank you for all the help and guidance, which you have provided us during our term. We

are blessed to get a teacher and a mentor like you at the beginning of our corporate career.

Thanks and Regards,

Group - 4

Section – B
 Tata Motors

Mission - We innovate mobility solutions with passion to enhance the quality of life.

Vision
By FY 2024, we will become the most aspirational Indian auto brand, consistently w

 Delivering superior financial returns

 Driving sustainable mobility solutions
 Exceeding customer expectations, and
 Creating a highly engaged work force

Tata’s Motor

Non market Environment

 COVID-19 and global economic conditions The ongoing COVID-19 pandemic has
caused a significant global economic downturn. Tata Motors are exposed to changes in the
global economic and geopolitical environment such as trade tensions and Brexit.

 Credit rating and liquidity Risks: External challenges and the COVID-19 pandemic
have impacted the credit ratings of the Tata Motors Group. Credit rating agencies continually
review the assigned ratings and these ratings may be subject to revision, suspension or
withdrawal by the agency at any time. Maintaining adequate liquidity is critical to our
business for running day-to-day operations and servicing our short-term obligations.

 Heavy custom and import duty: Some of the countries have duties as high as 250%
(For e.g. Nepal). This makes vehicles very expensive as compared to Indian prices.

 Inconstant import duties: Erratic and frequent fluctuation of import duties poses

newfound challenges every few years. This also handicaps the strategy formulation for PV-
IB.

Market environment

Competiton strategy - Tata is popular for its fuel efficient and low cost vehicles in india. In
indian automotive market, the demand for a luxury vehicle is low and there is significantly
high demand for low cost efficient vehicle. Tata focuses on vehicle requirement of their
customer which include fuel efficiency , low cost, comfortable size, and durability.

Mitigating Cyclacity - To mitigate the impact of cyclicality in the automobile industry, the
Tata Motors Group plans to continually strengthen operations while gaining market share
across different product lines and offering a wide range of products in diverse geographies.
The Company also plans to strengthen other business operations such as financing of vehicles
and spare part sales, service and maintenance contracts, among others.

Company - Industry - Economy (C-I-E framework)

Company

Tata Motor’s Triple Bottom Line Approach

 People- In the last financial year, the company improved its safety for employees by
38% and Health Index by 0.5. Tata Motors offers VRS, interest subsidy on loans,
flexible working hours, higher education programme and many more benefits to
employees. It spends 8-10 per cent of its cost on employees.
 Planet- Tata Motors has been leading the technology advances in the industry while
at the same time striving hard to institutionalize sustainable practices in every slant of
the business by increasing the share of renewable energy.
 Profit- Tata Motors released in January 2021, the net profit to Rs. 2,906.45 crore for
the quarter ended in December 2020 and a growth of 67.2 %. Revenues rose to Rs.
75,653.8 crore with a rise of 5.5 %.

Industry

The automobile industry in India is the fourth largest. Being ranked as the fourth largest
manufacturer of cars and seventh-largest manufacturer of commercial vehicles in 2019, the
automobile industry attracted Foreign Direct Investment (FDI) worth more than US$ 24
billion during the first two decades of the 21st century, according to data released by the
Department for Promotion of Industry and Internal Trade (DPIIT). The Indian automobile
industry is predicted to reach Rs.16-18 trillion in valuation by 2026.

Economy

The auto industry is the sole greatest engine of economic increase in the world. The global
auto industry is a pivotal sector of the economy for every influential nation in the world. The
industry continues to grow, registering a 30 per cent rise over the past decade. Automobile
Industry is one of the prominent employment generation sectors too. Tata Motors is has 37%
share in the commercial vehicles.

References: