MINOR PROJECT REPORT

ON
Tata motors
Submitted in partial fulfillment of the requirements for the
Award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Mahatma Gandhi University, Kottayam.
Submitted by
SAYANA VB
JITTY GEORGE
Under the Guidance of
Asst.Prof.TRESA ROSE JOHN

2019-2022
DEPARTMENT OF MANAGEMENT
ST. ANN’S COLLEGE
ST.ANN’S NAGAR ANGAMALY
(Affiliated to M. G University & Approved by Govt.of Kerala)
 CERTIFICATE
This is to certify that project entitle ‘A PROJECT REPORT TATA MOTORS’ is a
bonafide work done by SAYANA VB , JITTY GEORGE submitted in the partial
fulfilment of the requirement for the award of the degree of the Business
Administration of Mahatma Gandhi University, Kottayam during the period
2019 – 2022 It is also certified that this project work has not formed part of any
other Degree/Diploma/Fellowship or other similar title by this Candidatests.

Asst. Prof. TRESA ROSE JOHN Cpt.Prof.Dr.M.K.Ramachandran

Head of Department & Project Guide Principal Submitted for

Examination held oExaminer

………………………….

Examiner
 DECLARATION
We do hereby declare that the project work entitled ‘Tata motors’ Is a bona
work done by thus in partial fulfillment and the requirement for the award of
degree Bachelor of Business Administration, under the guidance and
supervision of Asst. Prof. Tresa rose john, Dept. of Management, St. Ann’s
College, Angamaly, affiliated to Mahatma Gandhi University. I further declare
that this report has not been previously presented for the award of any degree,
diploma, fellowship or other similar to any other Universities, Institutions and
so.

Place: Angamaly SAYANA VB

Date: JITTY GEORGE
 ACKNOWLEDGEMENT
would like to take opportunity to express our sincere gratitude to all those who
have helped throughout this project. It gives immense pleasure to acknowledge
all those who have rendered encouragement and support for the successful
completion this work.
We would like to extent our gratitude to Capt.Dr.M.K.Ramachand ran, Principal,
St.Ann’s College, Angamaly for granting us the permission to do the project.
We express our grate gratitude to Asst. Prof.Tresa rose john Project Guide and
Head of Department who have provided us grateful tips for doing the project.
We also express our thanks to all teaching and nonteaching staff of St.Ann’s
College, Angamaly for the help and support. We express our sincere thanks to
our dear friends and our family for their cooperation for completing this Project.

Place: Angamaly SAYANA VB

JITTY GEORGE
Date:
 Content

No. Chapters Page

1 COMPANY PROFILES

2 AN OVERVIEW OF
THE INDUSTRY

3 DISCUSSION

4 FINDINGS

5 BIBLIOGRAPHY
1.COMPANY PROFILES
Introduction

The Tata Group is a multinational conglomerate based in Mumbai, India. In terms of market
capitalization and revenues, Tata Group is the largest private corporate group in India and
has been recognized as one of the most respected companies in the world .The Tata Group
has operations in more than 85 countries across six continents and its companies export
products and services to 80 nations. The Tata Group comprises 114 companies and
subsidiaries in seven business sectors, 27 of which are publicly listed. 65.8% of the
ownership of Tata Group is held in charitable trusts. The group takes the name of its
founder, Jamsetji Tata, a member of whose family has almost invariably been the chairman
of the group. The Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is
currently one of the major international business figures in the age of globality. The
company is currently in its fifth generation of family stewardship.

1.1 History of the organisation

Jamsetji Nusserwanji Tata had established Tata Group as a private trading firm in 1868. In
1902, the group incorporated the Indian Hotels Company to commission the Taj Mahal
Palace & Tower; it was the first luxury hotel in the country. In 1904, Jamsetji died and his
son, Sir Dorab Tata took over as chair of the company. Under the guidance and leadership
of Dorab, the group grew quickly, venturing into different industry segments like

 steel (1907)
 , electricity (1910),
 education (1911),
 consumer goods (1917),
 and aviation (1932).
 chemicals (1939), In 1945,
 Tata Engineering and Locomotive Company,cosmetics (1952)
 , marketing, engineering and manufacturing (1954),
 tea (1962) and
 software services (1968).
 Tata Motors in the year 2003.

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company

Tata Group. Tata Motors increases its UV market share to over 8% in FY2019

Time line of industries:

 1868 - 29-year-old Jamsetji Nusserwanji Tata starts a trading company with a

capital of ₹21,000
 1874 - In a bold move, Jamsetji establishes a textile mill in Nagpur instead of
Bombay
 1886 - Empress Mills pioneers employee welfare initiatives, long before they are
enacted by law. 
 1892 - Jamsetji establishes the JN Tata Endowment Fund to help Indian students
pursue higher studies
 1907-Sir Dorab first establishes Tata Iron and Steel Company
 1910-Jamsetji's dream of bringing clean energy to Mumbai by establishing Western
India's first hydro plant, is brought to life by Sir dorab
 1912-Moved by widespread poverty in India, Sir Ratan Tata, Jamsetji’s younger son
and a philanthropist, funds research into its causes at the University of London.
 1917-The group makes its consumer space debut with Tata Oil Mills Co (TOMCO), 
 1932- Tata Airlines (later, Air India) is born.
 1945-The group's rapid business expansion continues with the establishment of
Tata Engineering and Locomotive Company.
  1952-Women across the country celebrate as the group launches India's first
cosmetics brand, Lakme.
 1968-India's first software services company,
 1984-The group clocks another win as Titan Industries, a JV with the Tamil Nadu
Industrial Development Corporation (TIDC),
 1998-Tata Indica, India's first indigenously designed and manufactured car, and
Tata Safari, India's first SUV, are launched by TELCO (now, Tata Motors).2000-
 2001-The group strengthens its presence in the insurance sector with two joint
venturesTata AIG this year, and Tata AIA in 2000
 2002-The Tata group acquires a controlling stake in VSNL, establishing Tata
Communications.
 2004-Tata Motors acquires the heavy vehicles unit of Daewoo Motors, and in the
same year, is listed on the New York Stock Exchange.
 2007-Tata Steel acquires Corus (now, Tata Steel Europe). 
 2008-Tata Motors unveils the 'people's car', Tata Nano, to make safe transport
affordable to millions.

Companies:

 Tata Steel
 Tata Motors
 Tata Consultancy Services
 Tata Chemicals
 Tata Global Beverages
 Titan
 Tata Capital
 Tata Power
 Tata Advanced Systems
 Indian Hotels
 Tata Communications.

Areas of involvement:

 Steel
 Chemical industry
 Automotive industry
 Information system
 Engineering
 Industry
 Manufacturing
Products:

 Automotive
 Airlines
 Chemicals
 Defense
 FMCG
 Electric Utility
 FinanceHome appliances
 Hospitality industry
 IT Services
 Retail
 E-commerce
 Real estate
 Steel
 Telecom

Chairman:

The chairman of Tata Sons is usually the chairman of the Tata Group. As of 2020, there have
been eight chairmen of Tata Group.

 Jamsetji Tata (1868–1904)

 Sir Dorab Tata (1904–1932)
 Nowroji Saklatwala (1932–1938)
 JRD Tata (1938–1991)
 Ratan Tata (1991–2012)
 Cyrus Mistry (2012–2016)
 Ratan Tata(2016–2017)
 Natarajan Chandraseka(2017-present)

 History of Tata motors

Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive
Company), is India’s largest passenger automobile and commercial vehicle
manufacturing company. It is a part of the Tata Group, and has its headquarters in
Mumbai. Maharashtra. One of the world’s largest manufacturers of commercial
vehicles and known for its hatchback passenger vehicle Tata Indica, Tata Motors has
its manufacturing base in Jamshedpur, Lucknow, Pune and Singur.. In 2004 it also
bought Daewoo’s truck manufacturing unit, as Tata Daewo0 Commercial Vehicle, in
South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving
it controlling rights in the company. On 10 January 2008, Tata Motors launched their
much awaited Tata Nano, noted for its Rs 100,000 price-tag, at Auto Expo 2008 in
Pragati Maidan, Delhi.Mission statement of Tata motorsWe innovate mobility
solutions with passion to enhance the quality of life.Vision statement of Tata
motorsBy FY 2024, we will become the most aspirational Indian auto brand,
consistently winning, by

-Delivering superior financial returns

-Driving sustainable mobility solutions

-Exceeding customer expectations, and

-Creating a highly engaged work force

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa,
Great Britain, and Thailand. It has research and development centres in Pune,
Jamshedpur, Lucknow, and Dharwad, India and South Korea, Great Britain, and
Spain. Tata Motors’ principal subsidiaries purchased the English premium car
maker Jaguar Land Rover (the maker of Jaguar and Land Rover cars) and the South
Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-
manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-
equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction
Machinery), and a joint venture with Fiat Chrysler which manufactures automotive
components and Fiat Chrysler and Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its
first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which
ended in 1969. Tata Motors entered the passenger vehicle market in 1988 with the
launch of the TataMobile followed by the Tata Sierra in 1991, becoming the first
Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile. In 1998, Tata launched the first fully indigenous Indian
passenger car, the Indica, and in 2008 launched the Tata Nano, the world’s cheapest
 car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford
in 2008

2.2Mission/Vision Statement and Quality policy

followed/Quality certification attained

Mission and vision statement:

 Vision

To be globally significant in each of our chosen businesses by 2025.

 Mission

To be the most reliable global network for customers and suppliers, that delivers value
through products and services. To be a responsible value creator for all our stakeholders.

Quality policy of Tata motors:

We, at Tata Motors, have embarked on our Transformation Journey, which means we are
now more committed to transform the consumer experiences. This will happen only when
we provide innovative mobility solutions with passion that excite our customers globally
through a Quality and customer centric culture involving all employees and business
partners as One Team. We will continue to strive for excellence in design, development,
manufacturing and sales experience of exciting products and services combined with an
unmatched ownership experience. To reach higher benchmarks on Quality, we will
internalize global best practices and sustainable technologies within the organization.
Initiatives such as 'first time right capability, a 'quality management system' will create
meaningful impact in the organization while also serving as a common set of guidelines and
improvement yardstick. Tata Motors also has a commitment towards improving the Quality
of life of its direct stakeholders, both within and outside its plants and offices, through
improved work practices and social welfare schemes. I urge each one of you to abide by the
Quality policy in letter and spirit.

Certificates of Tata motors:

When TATA Motors made a huge loss of 500 crores in the year 2000-01, analysts had all
but written off TATA Motors fortunes. But TML was determined to bounce back and hence
started the process of serious introspection. Three key reasons were identified for the
massive loss-a) Lack of customer focus b) lack of process management c) lack of new
products and variants. TML had decided the three elements in a systematic manner, the
major emphasis being process management. TATA Motors hence started to adopt the APQC
13 (American Productivity and Quality Center) processes and sub process and hence derive
the Tata Business Excellence Model (TBEM, based on the Malcolm Baldrige National Quality
Award Process), thus adopting a process oriented approach than merely people oriented
approach. This practice minimized the 'influence of individual employees' in running the
operations. This also entailed the documentation of the processes, which brought about lot
of clarity in terms of roles and responsibilities of process owners, inputs and outputs of the
processes, in process and end process measures, entities involved and stand

1.3 the Organization – Product profile

Products:-

1. Passenger cars and utility vehicles

 Tata Indica
 Tata Sierra
 Tata Estate
 Tata Sumo/Spacio
 Tata Safari
 Tata Indica
 Tata Indigo
 Tata Indigo Marina
 Tata Xenon XT
 Tata Winger Tata Magic
 Tata Nano
 Tata Aria.

Concept vehicles


 2000 Aria Roadster
 2001 Aria Coupe
 2002 Tata Indica
 2004 Tata Indigo Advent
 2005 Tata Xover
 2006 Tata Cliffrider
 2007 Tata Elegante
 2008 Tata Prima
 2010 Tata Versa
 2010 Tata Essota

Commercial vehicles

Tata 909 high deck covered rear load area truck Tata
1109 low deck open load area truck Tata 1613 low body open load area truck

 Tata Ace
 Tata TL/Telcoline/207 DI Pickup Truck
 Tata 407 Ex and Ex2
 Tata 709 Ex
 Tata Cliffrider
 Tata 809 Ex and Ex2
 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck)
 Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus)
 Tata 1613/1615 (Medium truck)
 Tata 2515/2516 (Medium truck) Tata 3015 (Heavy truck)
 Tata 3516 (Heavy truck)
 Tata Novus (Heavy truck designed by Tata Daewoo)
 Tata Star Bus (Medium Bus) Tata Globus (Low Floor Bus)
 Tata Marcopolo Bus (Low Floor Bus) Tata Prima (The World Truck designed by Tata
Motors and Tata Daewoo)

Military vehicles

 Tata LSV (Light Specialist Vehicle)

 Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
 Tata LPTA 713 TC
 Tata LPT 709 E Tata SD 1015 TC (4x4)
 Tata LPTA 1615 TC (4x4)
 Tata LPTA 1621 TC (6x6)
 Tata LPTA 1615 TC (4x2)
 Tata Winger Passenger Mini Bus
 Jaguar Land Rover (JLR)
 Jaguar:-
 Land Rover / Range Rover

1.4Customers of organization :level of operations (global, national, regional )

Tata Daewoo (is a commercial vehicle manufacturer headquartered in Gunsan, Jeollabuk-
do South Korea, and a wholly owned subsidiary of Tata Motors. It is the second-largest
heavy commercial vehicle manufacturer in South Korea and was acquired by Tata Motors
in 2004. The principal reasons behind the acquisition were to reduce Tata’s dependence on
the Indian commercial vehicle market (which was responsible for around 94% of its sales
in the MHCV segment and around 84% in the light commercial vehicle segment) and
expand its product portfolio by leveraging on Daewoo’s strengths in the heavy-tonnage
sector.

Heavy commercial vehicles

 Tata prima

This vehicle used to carry heavy goods .This vehicle is for drivers that using heavy
vehicles. It started the price at 31.2 lakh onwards.

 Tata tippers
Starts on 17.5 lakh onwards. Tata tippers With superior power and performance that
enable high efficiency in tough conditions, comfortable cabins made for driver productivity,
long service intervals and high fuel efficiency for superior savings – Tata Motors range of
Tippers deliver tremendous profits in heavy-duty industries such as mining and
construction .

 Tata trucks

Trucks are usable for everyone . But it mainly used to transport cements ,sand and for
the travelling of animals like elephants, large no of any animals .These are best for heavy
goods transportation , minors and captive users. These vehicles wanted a highly
experienced drivers because it is a heavy vehicle. Starts at 30 lakhs.

 Tata winger
It is manufactured for travelling such as ambulance, staff transportation ,tour schools etc. It
comes capacity under 9 to 13 seats. It is useful for a good journey .starts at 13.17 lakhs.

 TataTata buses.

Tata has launched some buses like staff bus, tourist, school bus, route permit bus ,long
distance inter city bus. Tata motors passenger avail both in CNG and diesel. At 140000
However brand recently launched electric bus and hybrid bus. But the hybrid bus is
launched in America at 1 cr.

 Tata Hitachi Consulting

Light commercial Vehicles

 Tata ace

Tata Ace, India’s first indigenously developed sub-one-ton minitruck, was launched in May
2005. The minitruck was a huge success in India with auto analysts claiming that Ace had
changed the dynamics of the light commercial vehicle (LCV) market in the country by
creating a new market segment termed the small commercial vehicle segment. Ace rapidly
emerged as the first choice for transporters and single truck owners for city and rural
transport. It is used by the customer that transportation of goods and paying passenger.
Starts at 4.36 lakh.

 Pick up

It is one of the most used transportation in the industry small and medium segment of
business . These pick up truck in India are highly useful as they bear the great pay load
capacity. Being a simple mode of transportation these trucks serves the maximum
needs of the business owners by moving goods from one place to another. Some times
the owner use these to go outing with their family. Starts at 3.75 lakhs.

 Jaguar and land rover

Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley,

Coventry, United Kingdom, and has been a wholly owned subsidiary of Tata Motors since
June 2008, when it was acquired from Ford Motor Company of USA Its principal activity is
the development, manufacture and sale of Jaguar luxury and sports cars and Land Rover
premium four-wheel-drive vehicles.

Level of operations

 Global level of operations

Tata Motors is a global player having markets in several countries around the world
including Europe, Africa etc. In 2008 TMS has purchased British car companies Land Rover
and Jaguar and in 2004 South Korean 2nd largest truck making Daewoo Commercial Vehicle
Company. TMS is the first company to be listed on New York Stock Exchange from Indian
engineering sector. TMS has recently released Tata Nano which is lowest price car in the
world. Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%)
and the Brazil-based Marcopolo S.A. (49%). The joint venture manufactures and assembles
fully built buses and coaches targeted at developing mass rapid transportation systems. It
uses technology and expertise in chassis and aggregates from Tata Motors, and know-how
in processes and systems for bodybuilding and bus body design from Marcopolo. Tata
Marcopolo has launched a low-floor city bus which is widely used by transport
corporations in many Indian cities. Its manufacturing facility is based in Dharwad,
Karnataka State, India.

 National level of operations

Tata Motors’ UK subsidiary, Tata Motors European Technical Centre, bought a 50.3%
holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for
US$1.93 million, and planned to launch the electric Indica hatchback in Europe the
following yearn September 2010, Tata Motors presented four CNG–Electric Hybrid low-
floored Starbuses to the Delhi Transport Corporation, to be used during the 2010
Commonwealth Games. These were the first environmentally friendly buses to be used for
public transportation in India.

 Regional level of operations

Indian auto company, manufactures vehicles such as cars, trucks, and vans under 3 major
brands that are Tata, Jaguar, and Land Rover. The vehicles are sold across various regions
such as Asia-Pacific, Europe, Americas, and Africa. The end users are individuals and/or
companies as Tata Motors manufactures both passenger vehicles and commercial vehicles.

1.5 Competitors of Tata automotive industries

An Indian auto company, manufactures vehicles such as cars, trucks, and vans under 3
major bands that are Tata, Jaguar, and Land Rover. The vehicles are sold across various
regions such as Asia-Pacific, Europe, Americas, and Africa. The end users are individuals
and/or companies as Tata Motors manufactures both passenger vehicles and commercial
vehicles. Tata Motors faces a number of competitors in its domestic and overseas markets.
Its main competitors are

 Honda
 Toyot
 Maruti
 Suzuki
 Hyundai
 Volkswagen
 ,Ford
 Mahindra
 Nissan
 Mitsubishi
  Ashok Leyland
 ,Skoda Auto
 Chevrolet

Competitive strategy of Tata motors

 The demand for a luxury vehicle is low and significantly higher demand for low cost
efficient vehicles.
 Tata focuses on the vehicles that required for their customers like fuel efficient
vehicles low cost comfortable sized and durability.
 The Tata company designed a car named Tata Nano for low class families
 Tata believes in constant innovation of their customers.
 The key component of Tata motors success is their supply chain superiority.
 The Tata motors focused on their customers satisfactiosuperior
 Tata Motors’ mission is to create an organisation that people enjoy working for,
doing business with and investing in
 It focuses on customer needs to provide them a range of innovative products and
maintain long-term relations, by working closely with its workforce and business
partners.

Competitive advantages of Tata motors

company’s purpose is to consistently create shareholder value by generating

greater returns and to foster long lasting ties with the vendors and channel
partners
 The products are manufactured at lower costs and sold to the new markets earning
huge profits. India is known for least expensive automobile parts which gives TATA
a direct access. Moreover the policies and regulations in India are very favorable for
TATA for business expansion.
 Continuous growth and expansion is the company goal. TATA has successfully
acquired various companies for breaking into the foreign markeexpansio
 The company gives utmost importance to dealer training as well to improve their
productivitexpansio
 TATA aims to fulfill the emerging needs of the automobile industry by coming up
with new range of products. These products are manufactured with purpose of
providing comfort, reliability, safety, capacity and value to the end customers.

CoreCore competencies

Tata Motors is able to maintain, as well as increase, their market share by capitalizing
on their core competencies. Tata Motors is active, competitive, and dynamic in all aspects
of the automotive industry, which means that there must be many different activities going
on in all areas of the company. One way that Tata Motors has done this is by producing one
of the most efficient and low cost vehicles on the market. Acquisitions, mergers, and
expansion is another core competency that Tata Motors has is embedded in their company
structure and philosophy. Another core competency that Tata Motors holds is being located
in the India. This location has allowed them to understand not only the Indian market but
also the dynamics of emerging and developing markets. This market understanding and
knowledge allows Tata Motors to manufacture their products at lower costs, sell them to
emerging markets while making profits as well as take advantage of the strong labor base
in India.

1.6Strategies – Business, Pricing, Management

 Business strategy

Tata Motors aims to emerge as the world-class automobile leader with the remarkable
price-performance ratio in combination with hyper-efficient engines to acquire the large
market share internationally.

Tata Motors’ mission is to create an organisation that people enjoy working for, doing
business with and investing in. It focuses on customer needs to provide them a range of
innovative products and maintain long-term relations, by working closely with its
workforce and business partners. The company’s purpose is to consistently create
shareholder value by generating greater returns and to foster long lasting ties with the
vendors and channel partners (Global Reporting Initiative 2010).

The company’s objective is to invest INR28.8billion over the next few years for increasing
its production and INR60billion for the expansion of the existing manufacturing plants and
in setting up vehicle testing facilities (Automotive Manufacturing Solutions 2010).

Tata Motors unmatchable ability to manufacture low cost vehicles provides the company
with a greater scope of earning high profit margins and enjoys a greater market share.
Economic slowdown has hyped the competition to provide low priced but the best quality
vehicles. Understanding rural Indian economy and growing incomes of the farmers, Tata
Motors view increased opportunities for its commercial sector (Thakkar 2010).
Nevertheless Tata Motors have a range of upcoming Jaguar and Land rover cars for the
luxury brand buyers to capture the higher-income/premium customer segment. This could
create a greater success for the company in near future.

Tata Motors have remarkable advantages of manufacturing in India when compared to

other MNC competitors. It benefits from the low labour cost, extensively skilled and
interwoven backward and forward linkages, boosting IT engineering, strong auxiliary
industry, substantial knowledge of the market, improving infrastructure and increasing
domestic demand.

Tata Motors aspires to be a world-class maker of quality vehicles by striking balance

between the needs of its customers, employee, suppliers, investors and the community as a
whole.

Pricing strategy

Tata Motors has a diverse portfolio, which means a diverse pricing strategy. In 2008, Tata
Motors launched Tata Nano the cheapest passenger car in the world. It followed
penetration-pricing strategy and vehicles manufactured by Tata Motors are comparatively
cheaper than its competitors are. Due to its low price, it attracted media attention and the
vehicle reported an increase in sales figure within short time during the initial days of the
launch. The lower pricing of Tata Nano also resulted in consumers perceiving it as a cheap
product. The penetration pricing strategy can act as entry barrier for new players in the
segment targeting lower income group. The pricing strategy in the marketing mix of Tata
Motors caters to the lower class as well as the affluent upper class. Tata Motors’
international acquisition Jaguar Land Rover targets niche customers providing high quality
features

Management strategy

Tata Strategic Management Group (TSMG) is the strategy centre of excellence for the Tata
group. TSMG works closely with the Chairman’s Office and the leadership of Tata group
companies to develop and support implementation of the group’s business strategy. TSMG
also helps Tata companies in developing and incubating new business ideas.

Defining elements of TSMG’s culture:

TSMG prides itself on a high-performance and meritocratic culture built on collaboration

and action-orientation. The defining elements of TSMG’s culture are summarised below:

 Excellence: Highest levels of professionalism; striving for impact

 Inspirational Change: Seeking innovative answers; influencing change; building
leaders
 Knowledge: Intellectual curiosity; quest for self-development
 Entrepreneurship: Taking initiative; action-orientation
 Deliberate openness: Thoughtfulness; open communication
 Respect: Fairness; diversity of thought and opinion
 Fun: Collaborating; Fun place to work

1.8 Export / Import

The Tata group has been international in its approach to business from its inception. The
Founder, Jamsetji Nusserwanji Tata, began his business career in international trade in
China and England. The businesses he later established in India measured up to
international standards and used world-class technology.

A substantial portion of the group’s total revenues are from outside of India, with the UK
and the US being the two main contributors.

Each operating company in the Tata group has its own international strategy as an integral
part of its overall strategy, depending on the nature of the industry, opportunities available
and the competitive dynamics of the global stage.

Beginning with Tata Tea’s acquisition of Tetley in 2000, Tata companies made several
significant overseas acquisitions including Corus by Tata Steel, Jaguar and Land Rover by
Tata Motors and Brunner Mond by Tata Chemicals – all in the UK; Daewoo Commercial
Vehicles by Tata Motors in South Korea; NatSteel in Singapore and Millennium Steel in
Thailand by Tata Steel; and General Chemical Industrial Products by Tata Chemicals, Eight
O’ Clock Coffee by Tata Tea and Tyco Global Network by Tata Communications in the US.

In 2004, Ratan Tata, then Chairman of Tata Sons, summed up the Tata group’s efforts to
internationalise its operations thus: “I hope that a hundred years from now we will spread
our wings far beyond India, that we become a global group, operating in many countries, an
Indian business conglomerate that is at home in the world, carrying the same sense of trust
that we do today.”

 Europe

The Tata group has been present in Europe since 1907, when Tata Limited was established
in London. Today, there are 19 Tata companies across the continent, with 60,000+
employees. In the UK, Tata is among the largest industrial employers, operating in over 40
locations. Jaguar Land Rover, Tata Steel and Tata Motors are leading Tata companies in the
region.

 North America

The Tata group has had a presence in North America for over 70 years. Today it is one of
the largest India-headquartered multinationals in North America, with 13 companies and
more than 35,000 employees. Prominent among Tata companies operating here are Tata
Consultancy Services, Jaguar Land Rover, Tata Communications, Tata Technologies, Tata
Steel,

 Asia Pacific

The Tata group’s presence in the region is from the early 1970s, when Tata Precision
Engineering was set up in Singapore. Today, the group has over 16 operating companies
and employs over 7,000 people in the region. Singapore is a nodal international location for
the group with over 3,300 employees.

 China

The Tata group has had links with China since the latter half of the 19 th century when
Jamsetji Tata began his career in international trade. Tata companies employ about 3,600
employees in China today, with Tata International, Tata Consultancy Services, Tata Steel
and Tata Global Beverages leading the pack.

 Middle East

The Tata group has a significant footprint in the Middle East and North Africa region, with
over 20 companies, $3 billion in revenues and over 10,000 employees. The major Tata
companies here are Jaguar Land Rover, Voltas, Tata Communications, TCS, Indian Hotels,
Tata Consulting Engineers, Tata Global Beverages, Tata Steel and Tata Motors.

1.9 Collaborations and expansion plans

The automotive industry is undergoing a rigorous transformation phase with new and
advanced technologies in manufacturing, digitisation solutions to optimise the operations
and supply-chain, innovative and advanced product technologies and disruptive
business/service models for engaging the customer and other related stakeholders. Today,
almost every segment of the automotive value-chain is required to drive its own innovation
story. TACNet will enable the outside world in connecting with us for such innovation and
collaboration opportunities. We are looking forward to unlocking the potential of India’s
finest startups and technology and solution based companies.

Tata motors collaborations with jaguar

 Jaguar Land Rover and BMW are joining forces to develop next generation electric
drive systems
 Collaboration seeks to advance development of electrification technology to support
transition to ACES
 Joint investment in research & development, engineering and procurement will
provide the necessary economies of scale to support increased consumer adoption
of electric vehicles.

Jaguar Land Rover and BMW Group today confirmed they are joining forces to develop next
generation Electric Drive Units (EDUs) in a move that will support the advancement of
electrification technologies, a central part of the automotive industry’s transition to an
ACES (Autonomous, Connected, Electric, Shared) future.
The strategic collaboration will build on the considerable knowledge and expertise in
electrification at both companies. Jaguar Land Rover has demonstrated its leading technical
capability in bringing the world’s first premium battery electric SUV to market – the 2019
World Car of the Year, the Jaguar I-PACE, as well as plug-in hybrid models; and BMW Group
bringing vast experience of developing and producing several generations of electric drive
units in-house since it launched the BMW i3 in 2013.

Tata motors with collaborations of Volkswagen and Skoda

The collaboration with Volkswagen AG for joint development of products will help
revitalize its Although the collaboration with TML may not have a meaningful effect on
earnings for VW and Skoda given their large global operations, Moody’s said, an increasing
focus on fast-growing emerging markets such as India makes the deal compelling for them.
Moody’s has written in its note that the deal is in line with VW’s long-term strategy to
partner with regional players in the small-car segment.

“In our view, a successful alliance with TML with its well-entrenched dealer and
distribution network will help improve VW’s and Skoda’s market shares in India of around
1.6% for VW and 0.4% for Skoda for the April 2016-January 2017 period”, the note says.
Portfolio in passenger cars in India, Moody’s said in its note. Tata Motors has over the last
10 years faced stiff competition from domestic and foreign automakers. The company’s
market share in the passenger vehicle segment reduced to 5.5%, in 2016 from 8.7% in
2013.

TheThe product-development collaboration will allow TML to leverage its European

partners’ technical expertise, improve its product offering and brand positioning with new
technologies, and help it reclaim lost market share by 2019-20.”, Moody’s has said in its
report.

The credit ratings agency expects the collaboration to pave the way for successful new
product launches, allowing TML’s capacity utilization levels in the passenger vehicles
business to rise to at least the segment’s breakeven minimum of 50% and reduce the drag
on profitability.

Although the collaboration with TML may not have a meaningful effect on earnings for VW
and Skoda given their large global operations, Moody’s said, an increasing focus on fast-
growing

A successful alliance with TML with its well-entrenched dealer and distribution network
will help improve VW’s and Skoda’s market shares in India of around 1.6% for VW and
0.4% for Skoda for the April 2016-January 2017.

Expansion plans of Tata automotive

 Tata Motors is going to expand its presence by adding 100 new dealerships by the end
of this year to improve its reach across small cities. Currently the company has 746
dealerships across the country. In the current fiscal year, the company is planning to sell
more than 75,000 units in villages. The home grown manufacturer is expected to achieve
this target by reaching out to 75,000 villages across the country and they are also planning
to reach 30,000 higher second schools in rural areas to make students aware about their
products.

Apart from villages, Tata Motors is also focusing on digital platform to help the company to
reach its potential customers as 70-80 percent buyers first check about the product online
before coming to dealerships. The Tiago, Tigor and Nexon are the main volume products
for the company and with the introduction of AMT variants, the sales is expected to grow in
coming months.

Tata Motors is planning capacity expansion at its Lucknow facility in Uttar Pradesh. The
company will increase the production of commercial vehicles from 30,000 units per annum
to 1,00,000 units per annum with an investment of Rs.350 crore.

The expansion will include setting up a paint shop, welding shop and a new assembly line
for commercial vehicles.

Overseas expansion

Tata Motors Ltd (TML) will consider setting up manufacturing facilities in various
overseas countries as it looks to expand its global presence.

InIn its annual report for 2010-11, the company said it will also introduce more fuel-
efficient products and market those in both domestic and export destinations.

Tata Motors has truck assembly units in Thailand and Bangladesh. It also produces pick-up
Xenon in Thailand.

Earlier, Tata Group’s subsidiary Tata Africa had acquired a truck facility in South Africa
from Japanese auto giant Nissan. Besides, it also had one bus body building unit there.

Tata Motors is at present in the process of setting up subsidiaries in key overseas markets,
including Latin America.

The annual report also said the firm will introduce more products in both domestic and
overseas markets.

The company will continue to focus on retaining its advantage of market reach and
penetration. The company will continue to introduce new products, variants and fuel
efficient products. These will offer superior value to the customers and improve the
company’s market position.

The report further said the British subsidiary Jaguar Land Rover will continue to focus on
profitable volume growth and increasing its presence in the growth markets such as China,
Russia, India and Brazil, along with launching new products and variants

Generally international expansion is not easy as it may sound since many factors have to
betaken in to account.

 Marketing strategy

Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customer in return. Tata motors
market their product differently when producing in different

 Segmentation strategy

Segmentation is dividing into distinct groups of buyers who have distinct needs,
characteristics, or behaviour and who might require separate products or marketing
programmes.

 Pricing strategies

Giving discount every month and special promotion for certain type of vehicle also one of
the strong strategy use by Tata Motors. Discount can be made from Company’s profit or
from dealer’s profit at certain range.

1.10 SWOT analysis of Tata automotive

SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT analysis is an
important for strategically formulation rule, which Tata has to embrace. The current
strength can become weaknesses of tomorrow. If Tata does not develop strategies to
support those strengths, to convert weaknesses into strength, realize opportunities and
also minimize threats and convert them into opportunities.

Strength of Tata motors

 Large and diversified product portfolio:

 Tata’s product portfolio is broad and well-diversified. The well-diversified automobile
portfolio helps them bring revenue and income stabilization. This stability develops
confidence for the investors in Tata Motors.

 . Brand recognition:

TATA is a well-known brand in the country of origin and in neighboring countries such as
Bangladesh, Pakistan, etc.

 StableStable Earning:

Stabilized profit has been earned. Tata has a strong method of governing. Tata Motors
acquire those companies which are similar in the management structure. They only
follow this policy, as they have confidence in their policy objectives of management.

 .Local Manager Recruitment Policy:

The internationalization policy to date consisted of keeping local managers in new

acquisitions and transplanting only some few senior managers from India into the new
industry. Thus in this way, Tata is able to exchange technical expertise

 Good strategy:

Good Strategy is the key to success and required for the expansion of the company. Tata
Motors not only focuses on Acquisitions and new products but also has an efficient
management development system in a place to create leaders and loyal employees.

 .Alliances:

Since 2006 Tata Motors is in alliance with Fiat for mass production. This has improved Tata
and Fiat’s product portfolio in terms of development and exchange of information.

Weaknesses of Tata automotive

 Global presence:

The global car market is growing at a rapid pace. If it’s limited to a particular area, then it’s
a strong barrier to growth as other international companies can enter the very same sector.
In achieving global market shares Tata remained silent. Until now it has not penetrated into
other foreign markets.
  neffective Marketing strategy:

A firm’s power lies in a solid marketing strategy. It’s the way a firm can know their
customer’s demands and produce the products accordingly. This also helps to connect with
customers and educate them about the value they expect to offer. The TATA lacks a clear
marketing strategy for promoting its company worldwide.

 old Technology Use:

The passenger car products of the company are based on old platforms which are the
major disadvantage for Tata Motors for competing with its rivals in the automobile
manufacturers.

 Indifferent to Changes:

Automotive is a highly competitive market. Every company remains competitive in this

industry as most of the automotive companies are very old and experienced in this
business. They sell a modern model, and cars that are tech-savvy. But in this case, the Tata
Motors are indifferent. Its large base model is old.

 Unable to establish Foothold:

Tata has no foothold for luxury cars in the Indian Market. Its brand is recognized for
commercial vehicles and low-cost passenger cars

 Nano is the world’s cheapest vehicle –

Tata Motors Nano Car launch was one of Tata Motors’ biggest failure. Because they didn’t
maintain its quality and price.

Opportunities of Tata motors

 Strategic Positioning:

For creating a positive brand identity company must have a clear marketing
strategy. It can also allow developing a good client base in India and around the world. For
reaching new markets and position itself TATA Motors must follow an aggressive
marketing and promotional strategy.

 Merger and Acquisition Opportunities:

Merger and acquisition is a fairly common tradition in the automotive sector. Tata has a
long track record as one of India’s oldest companies. As it grew larger, it has acquired
acquisition capabilities. It also has its own proven management policies which may help
manage newly acquired businesses.
  Increasing Purchasing Power of Indians:

The sales of a product depend largely on the price of the products. When costs are fair, an
organization can easily produce new cars that are tech-savvy and meet the sales target. As
the Indian people earn more than they did before, they have more purchasing power.

 Widening the Car Market:

Modernizing the world. Citizens are heavily reliant on the transport facilities. It’ll boost
motor vehicle sales. Seeing that Tata still has the potential to reach another international
market, it has a great opportunity to grow

In the summer of 2008, Tata Motor ‘s announced it had successfully purchased the Ford
Motors Land Rover and Jaguar brands for £ 2.3 million from the UK. Two of the world’s
luxury car brand has been added to the brand portfolio which would certainly provide the
company with the ability to sell luxury cars.

In 2004, Tata Motors Limited purchased Daewoo Motor’s Commercial Vehicles business
for approximately USD 16 million Electric Vehicles are the demand of the new generation.
Tata Motors must introduce new electric cars to compete with new emerging players.

The company can Tap New Markets. The Super Milo range of fuel-efficient buses is
powered by super-powerful, environmentally-friendly engines. The bus has an optional
organic clutch with a booster and better air intakes to reduce fuel consumption by up to
10%.

1.11 Organization chart of Tata motors

An organizational chart, also called organigram or organogram, is a diagram that shows the
structure of an organization and the relationships and relative ranks of its parts and
positions/jobs. The term is also used for similar diagrams, It is also used to show the
relation of one department to another, or others, or of one function of an organization to
another, or others. This chart is valuable in that it enables one to visualize a complete

organization, by means of the picture it presents.

The country’s largest automobile maker Tata Motors Ltd (TML) has embarked on a massive
restructuring of human resources (HR) that would transform the organisation into a much
leaner one with a flat hierarchical structure. Effective April 1, the new structure would be
in place.

From a 15-16 level hierarchy, the organisation is moving to a flat five-level hierarchy.
Earlier, Tata Motors had three levels in the supervisory grade, five in the managerial grade
and around six or seven in the executive grade. Now there would be five grades, L1 to L5,
with L1 being the highest. Above these levels, there would be the executive directors,
presidents and the managing director

TML is aiming to become a lean, agile organisation, by empowering its business units with
clear accountability, strengthening functional leadership and oversight, ensuring faster and
effective decision making, and improving customer focus, the company said in a response
to queries sent. The new flat organisation, which eliminates layers of middle management
and is internally called OE or Organisation Effectiveness, will empower business units with
clear accountability and strengthen the functional leadership. It will go live on January 1,
2017.

The structure of an organization has to do with the organizational climate along with
knowledge management. In the case of Tata Motors, the organization has understood the
importance of interactions between employers and workers. The process could be both
formal and informal and the objective is to make employees feel more bound to the
organization. Gathering and sharing knowledge is another way. Tata Motors has a relatively
flat structure, thus it facilitates easy interaction between the different levels in the
organization.

Advantages of organizational structure of Tata motors

1 The cost structure of a business is improved.

2. A flat organizational structure can quickly save hundreds of thousands, if not millions, of
dollars for certain businesses. Although large companies can struggle to implement this
structure because of the dynamics of siimproving

3. It is a structure that improves employee morale.

Without middle management expertise, the flat organizational structure requires the front-
line staff to be experts in their job responsibilities. Because there is a focus on hiring the
best people possible for each position, less turnover typically occurs. Fewer bosses means
fewer conflicts and that makes for happier employees as well. That improves employee
morale.

4. There is less miscommunication.

Because this organizational structure is based on direct contact, there are fewer
opportunities to misinterpret feedback or ideas. Instead of relying on an intercessory, the
C-Suite gathers information directly from the source and this can limit the amount of
miscommunication that can occur at the workplace. At the same time, the front-line staff
receives direct communication from the C-Suite, allowing each worker to make clear
adjustments to their responsibilities when necessary.
5. There is less dominance in the workplace.

The flat organizational structure naturally increases the levels of independence that
workers experience in their job every day. There are fewer eyes looking over their
shoulders or criticizing their ideas, which allows each worker to focus on what they do best
instead of focusing their efforts to please a supervisor who controls the feedback that goes
into their personnel file.

6. It can improve employee retention.

Highly-skilled workers often struggled in structured hierarchy environments because

their creativity is often limited. In a flat organizational structure, their creativity is
encouraged. For many workers, career satisfaction isn’t just about the size of the pay check.
It also involves a chance to pursue their passions and this business structure can make that
happen.

Disadvantages of organizational structure of Tata motors

 Bad decisions can be made under the guise of expertise.

Because the flat organizational structure is essentially a “bottom up” type of hierarchy,
there is tremendous reliance on the expertise of the front-line staff. If someone does not
have the level of expertise that their job requirements demand of them, the C-Suite could
make decisions based on false expertise. That can lead a business down the wrong path
very quickly.

 It can lead to a lot of wasted time.

Employees in this type of structure do benefit from being able to approach the C-Suite
with their ideas. There is also a lot of time spent talking with others to ensure that an idea
isn’t being duplicated before it is presented. Although access is a benefit, because there are
not continuous lines of communication between varying departments or teams, a lot of
time can be wasted when trying to be innovative.

 This structure can limit productivity.

The flat organizational structure assumes that each worker is going to give their best
effort every day. It lacks close supervision in many instances, which means workers can get
away with not working at all on some days. That is especially true for workers who might
be in a satellite office. Although there are monitoring programs that can track productivity
or worker presence, that isn’t always the same as having a manager be responsible for
team productivity.

 It isn’t scalable.
This structure works well for small organizations, but what happens if a company
experiences high levels of growth over a short period? This structure isn’t scalable, so fast
growth in an SMB or start up can cause the C-Suite to lose control over their workplace.
That can lead to poor decision-making experiences, unproductive behaviours, and other
negative workplace experiences.

 There is a lack of work-life balance.

Many people who work within a flat organizational structure find themselves always
connected to their work. There is a certain “responsibility” that comes when the C-Suite
sends out an email asking for a job to be completed or feedback to be offered. That makes it
difficult for some workers to turn away from their professional duties when enjoying
personal time, which affects their work-life balance.

Culture of organization structure

Culture is an important part of an organization and an organization’s success depends

greatly on it’s culture.

Every employee of Tata deal on behalf of the company with professionalism, honesty and
integrity, while conforming to high moral and ethical standards.

 Tata has a very strong culture giving much importance to ethics and moral values.
 Tata companies also extend social welfare activities to communities around their
industrial units.
 Tata has very strong employee relationships.
 Organize cultural events for colleagues and their family members
 Participation in voluntary activities
 Identify potential areas for employee volunteering and organize training programs
 Jamsetji Tata started a private trading firm named TATA group
 Tata motors was established as a locomotive manufacture.
 It tied up with Daimler-Benz and entered commercial vehicle segment .
2. An overview of the industry
2.1 Brief History of the Industry

The automotive industry comprises a wide range of companies and organizations

involved in the design, development, manufacturing, marketing, and selling of motor
vehicles.It is one of the world’s largest industries by revenue. The automotive industry
does not include industries dedicated to the maintenance of automobiles following
delivery to the end-user,such as automobile repair shops and motor fuel filling
stations.The word automotive comes from the Greek autos (self), and Latin motivus (of
motion), referring to any form of self-powered vehicle.[clarification needed] This term,
as proposed by Elmer Sperry[need quotation to verify] (1860-1930), first came into use
with reference to automobiles in 1898.

The automotive industry began in the 1860s with hundreds of manufacturers that
pioneered the horseless carriage. For many decades, the United States led the world in
total automobile production. In 1929, before the Great Depression, the world had
32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of
them. At that time, the U.S. had one car per 4.87 persons.After 1945, the U.S. produced
about 75 percent of world’s auto production. In 1980, the U.S. was overtaken by Japan
and then became world’s leader again in 1994. In 2006, Japan narrowly passed the U.S.
in production and held this rank until 2009, when China took the top spot with 13.8
million units. With 19.3 million units manufactured in 2012, China almost doubled the
U.S. production of 10.3 million units, while Japan was in third place with 9.9 million
units. From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the
number of automobile models in the U.S. has grown exponentially.

Top 10 Automotive Companies in India 2020

 Tata Motors Ltd

 Maruti Suzuki India Ltd
 Mahindra & Mahindra LtdHero
 MotoCorp Ltd
 Bajaj Auto Ltd
 Ashok Leyland Ltd
 TVS Motor Company Ltd
 Eicher Motors Ltd
 Force Motors Ltd
 SML ISUZU Ltd

Timeline of automotive

 1930s-India was an importer of automobiles

 1940s-The Indian automobile industry started its own manufacturing unit
 1950s-60- Tremendous trade restrictions could not boost the automobile industry
 1960-80 -The market was largely dominated by Hindustan Motors, with the
Ambassador model
 1983-Maruti came into the competition and swept the marketnd
 1984-92-The Govt. of India started promoting the automobile industry; Delhi Auto
Expo was established
 1992-The the opening up of the FDI
 1996-The merger of Maruti and Suzuki swept market with 60% market share
 2000-Almost all major car companies expanded their presence in India by
establishing manufacturing units
 2009-India emerged as the 4th largest exporter of passenger cars after Japan, South
Korea and Thailand
 2011-India became the 6th largest car manufacturer in the world. India is Asia’s 2nd
largest two-wheeler manufacturer
 Pre 1983-Closed market with limited supply and out-dated models
 Key Players: Hindustan Motors, Premier, Telco, Ashok Leyland, Mahindra &
Mahindra Pre
 1983-93-Japan-isation- Suzuki and Maruti JV to form Maruti Udyog. They started
production in 1983, thus, inducing growth of the industry
 Key Players: Maruti Udyog, Hindustan Motors, Premier, Telco, Ashok Leyland, etc.
  Post 1993- De-licensing of the sector in 1993.
 • Global majors like Toyota, Honda, Hyundai, GM, Ford started production in India.
Imports were allowed from April 2001. Implementation of VAT
 2008-More than 35 players in the market. Setting up of the NAB (National
Automotive Board) to act as the facilitator

1.2 Business Process of the Industry

Global Automotive Business Process Management Market: Dynamics:

Rapidly changing requirements from customers in terms of design and technology in the

automotive industry has increased the necessity of services that provide solutions to drive
the efficiency. Moreover, reducing the production cost without compromising the quality
has also become essential. All this has driven the need and demand for business process
management in automotive industry. Requirement of connecting & understanding rapid
change in choice, life style etc. of end user in short period of time is also expected to propel
the demand for business process fusion, thus driving the automotive business process
management market. Variations in the content & sequence in activity is also anticipated to
drive the automotive business process management market over the forecast period.

High initial cost of business process fusion technology is expected to be a major restraining
factor for the growth of automotive business process management market over the forecast
period. In addition to this, lack of knowledge about the benefits of business process fusion
has led to less adoption. This factor is anticipated to be a major challenge for key players in
the global automotive business process management market.

Global Automotive Business Process Management Market: Region-Wise Outlook

The global automotive business process management market is segmented into key regions
namely North America, Latin America, Middle East Africa, Asia-Pacific, Western Europe,
Eastern Europe & Japan region. Europe is expected to grow rapidly in automotive business
process management market because of adoption of new way of business process & need of
minimization in operational time. Apart from Europe, Asia-Pacific is expected to witness
high growth in the global automotive business process management market because of
Asia-pacific emerging as automotive destination. North America is also expected to exhibit
growth in the near future in the global automotive business process management market.

Global Automotive Business Process Management Market: Key Players

 SAP SE
 Peoples soft
 Oracle
 International Business Machines Corporation
 Capgemini Group
 Infosys ltd.
 WiproWipro ltd.
 LarsenLarsen & Toubro Infotech

The research report presents a comprehensive assessment of the market and contains
thoughtful insights, facts, historical data, and statistically supported and industry-validated
market data. It also contains projections using a suitable set of assumptions and
methodologies. The research report provides analysis and information according to
categories such as market segments, geographies, types and applications.

The report covers exhaustive analysis on:

 Market Segments
 Market Dynamics
 Market Size
 Supply & Demand
 Current Trends/Issues/Challenges
 Competition & Companies involved
 Value Chain
Regional analysis includes:

 North America
 Latin America
 Asia Pacific
 Japan
 Western Europe
 Eastern Europe
 Middle East & Africa

The report is a compilation of first-hand information, qualitative and quantitative

assessment by industry analysts, inputs from industry experts, and industry participants
across the value chain. The report provides an in-depth analysis of parent market trends,
macroeconomic indicators and governing factors, along with market attractiveness within
the segments. The report also maps the qualitative impact of various market factors on
market segments and various geographies.

Automotive Business Process Management Market

Report Highlights:

 Detailed overview of parent market

 Changing market dynamics in the industry
 In-depth market segmentation
 Historical, current and projected market size in terms of volume and value
 Recent industry trends and developments
 Competitive landscape
 Strategies of key players and products offered
 Potential and niche segments, geographical regions exhibiting promising growth
 A neutral perspective on market performance
 Must-have information for market players to sustain and enhance their market
footprint
Regional analysis includes

 North America (U.S., Canada)

 Latin America (Mexico, Brazil)
 Europe (Germany, U.K., France, Italy, Spain, Poland, Russia)
 Asia Pacific
 East Asia (China, Japan, South Korea)
 South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
 Oceania (Australia, New Zealand)
 Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)

2.3Market demand and supply of Tata automotive industries:

contribution to GDP revenue generation

Market of Tata automotive industries

With over 8.5 million Tata branded vehicles plying globally, Tata Motors is
among the select companies in the world to offer an extensive portfolio to its
consumers. We have expanded our international footprint through exports since
1961. In passenger vehicles, the company has a strong presence in the hatchback
and the sedan segment, going up to and MUVs. In commercial vehicles, Tata Motors
offers a wide spectrum of vehicles that are customized for local conditions and meet
the highest standards for quality, safety, environment norms and user comfort.
Today, the Tata Motors group is present in over 125 countries, with a worldwide
network comprising over 8,400 touch points. Tata Motors has R&D centres in UK,
Italy, India and South Korea. With vast global experience, the company brings deep
understanding of customer expectations from diverse markets, and is well
positioned to cater to ever changing automotive norms and consumer trends across
the globe.

 Africa
In the continent of Africa, Tata Motors has significant presence in South Africa, Angola,
Algeria, Democratic Republic of Congo, Ghana, Kenya, Morocco, Mozambique, Nigeria,
Seychelles, Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. Africa has been a
preferred destination for Tata Motors since 1992. The roads of Africa are home to both left-
hand and right-hand drive versions of our cars, buses, SUVs and trucks. We have a
manufacturing base in Rosslyn, South Africa, which produces trucks ranging from 7 to 75
 Latin America
Tata Motors has been wooing customers in Latin America since 2009. Our most popular
vehicles here are our compact and mid-sized sedans including the Indigo and the Manza,
our hatchback Vista, and the Tata Xenon, our bestselling pickup. What our vehicles bring to
the market are a winning combination of power-packed performance and lower lifecycle
cost of ownership
 Russia
Russia and the CIS form a large part of our global expansion strategy. Our manufacturing
base in Ukraine gives us access to local geographies and facilitates customisation and speed
of delivery. Our wide range of trucks and buses allows us to provide customers with the
best fit vehicle. Our local tie-ups with dealers and distributors give us the ability to provide
our customers with superior service experience.
 APAC
Tata Motors first ventured into other Asia Pacific markets with its foray into Sri Lanka in
1961. In addition, Tata Motors has a substantial presence in Bangladesh, Nepal, Myanmar,
Bhutan, Afghanistan, Indonesia, Malaysia, Philippines, Thailand and Vietnam. With an
established presence in most geographies, and a dominant share of the commercial vehicle
segment in various markets, Tata Motors is well on its way to realising its global expansion
strategy.
 Middle East

Tata Motors has been present in the Middle East geography since 1971 when our
trucks were first sold in Bahrain. Today, our vehicles are sold in the UAE, Oman,
Kuwait, Qatar, Saudi Arabia, Iraq and Turkey. The region accounts for a tenth of our
export market. We offer products with the reliability and ruggedness that are
necessary for operating in local weather conditions and terrains. We have achieved
a leadership position in the medium bus segment, and we are now expanding into
the pickup and truck sectors. The Tata Elanza, Xenon and Prima are our latest
launches in this region.

Demand of Tata automotive industries

A tremendous deal of transformation stemming from Covid-19 is expected in

mobility segment over the next two years as consumers move to “slow” travel with
personal versus public and/or shared transport likely to shape future demand for
passenger vehicles, according to Tata Motors Chairman Natarajan Chandrasekaran.

The turnaround journey of the company’s domestic business has also been
disrupted in 2019-20 as demand deteriorated sharply on the back of an abruptly
slowing economy coupled with the spread of Covid-19.

Addressing shareholders in the company’s annual report for 2019-20,

Contribution to gdp in revenue generation

The automotive industry in India has been on a growth trajectory with impressive
spikes in sales, production, and exports over the last two years. With an average
production of around 24 million vehicles annually and employer of over 29 million
people (direct and indirect employment), the automotive sector in India is one of
the largest in the world.
India is the largest tractor manufacturer, 2nd largest two- wheeler manufacturer, 2nd
largest bus manufacturer, 5th largest heavy truck manufacturer, 6th largest car
manufacturer and 8th largest commercial vehicle manufacturer.
For every vehicle produced, direct and indirect employment opportunities are
created with employment of 13 persons for each truck, 6 persons for each car and 4
for each three- wheeler and one person for two-wheelers. The $ 93 billion
automotive industry contributes 7.1% to India’s GDP and almost 49% to the nation’s
manufacturing GDP (FY 2015-16).
As a major employment generator, GDP contributor and FDI earner, the automotive
industry is instrumental in shaping the country’s economy and hence regarded as a
‘Sunrise sector’ under Make in India.
In order to further promote the sector, initiatives are being undertaken by the
Government of India to promote innovation and R&D and create a favourable policy
regime to make India a prominent manufacturing destination. Which acquired
Jaguar Land Rover (JLR) a decade ago, achieved sales of more than 1-million light
vehicles for the first time in the year ended March 2018.
India’s largest automobile company by revenue registered a growth of 13% in FY18,
the fastest pace in the past five years.
While JLR continues to build its reputation in evolved markets overseas and
competes against the German trio of Mercedes, BMW and Audi, Tata Motors made a
strong comeback in the domestic market, with over 20% growth last year. The
company overtook Honda Cars India in the No. 4 slot and is now targeting the No. 3
position.
JLR contributed the largest share with sales of 633,000 units, including those from
its Chinese joint venture. A bounce-back in the Indian market for both passenger
vehicles and small commercial vehicles, including pickup trucks, helped the group’s
global sales. Global sales for Tata Motors cross the milestone, has managed to grab
 10% of the global premium vehicle market and is on its own headed to the 1million
unit sales landmark in the next three to four years. The Tata Motors stock has risen
over 300% following the acquisition of JLR in 2008, helping to add Rs 80,000 crore
to shareholder wealth.
Tata Motors have increased its earnings over the years through their various
acquisitions and joint ventures with truck manufacturers in Southeast Asia. Gross
profit in the year 2006 was 1,160.9 million and increased to 1,510.1 million in the
year 2007. Earnings after taxes also increased significantly between 2006 and 2007
increasing from 336.6 million to 405.5 million in 2007. After a large drop in
revenues from 2004 to 2005 when the company first went public on the NYSE
(stock prices from May 1-22, 2008 can be found in Appendix C), it has been
increasing revenues greatly annually, from 4,422.0 million in 2005 to 7,354.0 in
2007.

2.4Level and type of competition :firms operating in an industry

The automotive industry is an extensive, contrast set of manufacturing and srucks and
cars to the market, whether keeping them in working order, painting them, or cleaning
them, fixing them or even trashing them when it’s time. While there are interesting
business opportunities at the auto dealership level, it’s chiefly after the cars are sold
that the franchising begins.

TheThe auto repair business is highly competitive. Each business within this arena has
high principal costs, low margins, and a high intensity of competitiveness. Providers
have a great deal of influence in setting and negotiating the prices of their goods and
services to repair shops. This is due to the element that the suppliers who absorb the
highest amounts of cash from repair shops are huge auto part companies. These
corporations are more united that the repair industry, have bottomless pockets, an
almost unlimited number of clients. Subsequently, these businesses can set whatsoever
price they wish to. In addition, because the clients see the service as undistinguishable
and a “product” with slight cost separation between competitors (if they offer an
appropriate level of excellence) consumer power is likewise very high. Furthermore,
the costs of services are not economical, and buyers are prepared to hunt for the most
satisfactory combination of price and satisfactory service.
The barriers to entrance and departure are discreetly low in this business. Substituting
costs are practically non-existent and the costs to entry and exist the marketplace are
low. The huge number of opponents in this field including alternatives mean that the
valuing for such services are actual competitive. The only method to have a benefit in
this business is a low-cost management principal applied hostilely to all facets of the
business or to build up customer relations to a point where the substituting costs are
raised. Even though many clients looking to buying automotive repair services are
worried with price, the main concern is with building an association of trust between
themselves and their service provider. Many people within the country have
experienced or overheard of bad service encounters within this business. As an
individual’s car is usually associated in one way or another with that individual’s
livelihood, a dependable automobile is critical. Consequently, countless clients are
willing to pay a slight more for a mechanic they feel ensures a quality job and
recognizes their needs. An automotive repair business that can anticipate, meet, and
even surpass customer’s needs can shape an impregnable position within the
marketplace and obtain market share at the expense of other competitors.

InIn recent years the Toyota emerged as a big threat for US companies in the
international market through its hybrid technology and is giving tough competition.
The Tata has launched the world cheapest car Nano in 2009, India is the focus of all
major car manufacturers due to its consumption of small cars The automotive industry
is the industry involved in the design, development, manufacture, marketing, and sale of
motor vehicles. According to Data monitor (2009), more than 40 million cars were sold
across the globe which means the market shrunk by 5.3% as compared to 2007.As
Europe is biggest consumer of new cars

The plunge in the consumption of new cars is caused by the recent recession and the
motor crises which are widely affecting the auto industry. Meanwhile the rising fuel
prices and increasing costs of raw material are another great concern for the
manufacturer in order to survive in this turbulent atmosphere. In recent years the
Toyota emerged as a big threat for US companies in the international market through
 its hybrid technology and is giving tough competition. The Tata has launched the world
cheapest car Nano in 2009, India is the focus of all major car manufacturers due to its
consumption of small cars

Type of competition

Market structure can be perfection competition; monopolistic competition; oligopoly;

or monopoly depending on the nature of business As the automobile industry in not
mainly dominated by one single firm and in different parts of world there are different
market leaders. So, in bigger picture the global automobile industry is having an
oligopolistic structure where many player are there to share profit and for competition

Direct competition

A direct competitor offers the same products and services aimed at the same target
market and customer base, with the same goal of profit and market share growth. This
means that your direct competitors are targeting the same audience as you, selling the
same products as you, in a similar distribution model as you.

Indirect competition

An indirect competitor is another company that offers the same products and services,
much like direct competitors; however, the end goals are different. These competitors
are seeking to grow revenue with a different strategy.

Nearly every company is involved with some form of indirect competition.

LevelLevel of competition

Category level

We can see that other gaming devices exist, including the iPad and Nintendo handhelds.

Generic level,
There are all manner of entertainment devices. Smart TVs, Google Chromecast, Amazon
Fire Stick all compete if the job-to-be-done is to ‘be entertained’.

Around these outer two levels of the circle is where things get a little less defined and
become more subjective. You might not consider a smart TV to be the competition for
an Xbox, but Microsoft might.

Competition or share-of-wallet level.

This is where you would categorize anything that would compete against your product
for your customer’s money. Again, you might not consider a packaged holiday to be
competing with a home improvement budget, but your customer might.

Tata Motors is able to maintain, as well as increase, their market share by capitalizing
on their core competencies. Tata Motors is active, competitive, and dynamic in all
aspects of the automotive industry, which means that there must be many different
activities going on in all areas of the company. As a result of the ever evolving
automotive industry Tata Motors must always be changing and one way to stay at the
forefront of the industry is to make continuous improvements in technology through
research and development. One way that Tata Motors has done this is by producing one
of the most efficient and low cost vehicles on the market. Acquisitions, mergers, and
expansion is another core competency that Tata Motors has is embedded in their
company structure and philosophy. Another core competency that Tata Motors holds is
being located in the India. This location has allowed them to understand not only the
Indian market but also the dynamics of emerging and developing markets. This market
understanding and knowledge allows Tata Motors to manufacture their products at
lower costs, sell them to emerging markets while making profits as well as take
advantage of the strong labor base in Indian

Level of business competition

1. No product / No content
 Businesses do not compete with products, media, or content. This is possible in
cases of highly regulated markets, monopolies, and other similar situations. At
this level of competition, businesses can use salesforce size, networking, large
budgets, lobbying to win. This type of competition is not the most developed
competition because a customer is left with a limited purchase choice.
Businesses that develop in this competition level have a hard time to compete in
other competition levels because they do not have the assets and know-how for
it.

2. ProductProduct / No content
Businesses compete only with products and therefore most of the values are
hard. Since hard values are easy to measure they are also easy to copy by
competitors. So the typical behavior of competitors is undeveloped media and
content, and a lot of similar products. Patents are relevant and patent litigation is
present. Also, businesses repeat what worked and constantly create new
products with which they enter in new categories, and each time their
competitors follow them quickly.

3. ProductProduct & Content

Businesses compete with all available assets – products, media, and content. This
allows them to offer soft values to their customers. Soft values are hard to copy
and businesses can maintain their position longer while the overall category
grows. This is the most sophisticated level of competition and requires a high
level of management and cultural maturity. Most brands which reached a
multinational level have mastered Mature Competition level. Businesses from
Developing level can grow to the Mature level. Businesses from Isolated
Competition will have a hard time doing it.
CompetitionCompetition level classification is a generalization designed as an
aid in the understanding of management decisions. The reality of many
businesses could be that all three levels of competition are used in different
categories. In such case the competition levels can be used to describe the most
dominant category business competes in.
2.5 Pricing strategies of Tata automotive industries

Tata Motors launched Tata Nano the cheapest passenger car in the world. It
followed penetration-pricing strategy and vehicles manufactured by Tata Motors
are comparatively cheaper than its competitors are. Due to its low price, it
attracted media attention and the vehicle reported an increase in sales figure
within short time during the initial days of the launch. The lower pricing of Tata
Nano also resulted in consumers perceiving it as a cheap product. The
penetration pricing strategy can act as entry barrier for new players in the
segment targeting lower income group. The pricing strategy in the marketing
mix of Tata Motors caters to the lower class as well as the affluent upper class.
Tata Motors’ international acquisition Jaguar Land Rover targets niche
customers providing high quality features.
Skimming pricing

Pricing is called skimming pricing when is it charged above the industry regular
prices and it is kept on higher side, objective of such pricing is to recover early
cash from the market or serve a certain niche in the market, moreover such
pricing is also used to provide prestigious image of brand (Richard et al, 2005).

Par pricing

At par pricing is charged when price is kept at same as of industry trend and
such prices are charges for “me too” kind of products. Such pricing is dangerous
in way that customer’s do see any perceived difference of the brand from other
(Richard et al, 2005).

Penetration pricing
When prices are kept lower than the industry trend, such pricing is called
penetration pricing and such pricing is used either for market development or
penetrating in the market by encouraging people to use the product (Richard et
al, 2005). Penetration pricing is very helpful in market development, when
organizations want to expand the market then there is always a need of a factor
that can make the people use the product

Advantages of pricing
 Product adaptation process is faster
 Another benefit is that in low price category organization would not
have to face more competition .
 Create good will in early customer
 Pricing strategy act as entry barrier
 Channel support,
Disadvantages of pricing strategies
Customer keeps on expecting prices to be on lower side and any increase in
price due to economic or organizational reason is resisted,

Related to customer’s perception about company and brand, the low price
effects the perception about product quality, and some segment of customer are
hesitant to buy low price because that they believe that lower price will result in
lower quality .

Other pricing strategies

 Penetration & psychological pricing strategies

In order to gain a great market share, many companies embrace the penetration
pricing strategy. The company aims to set up a customer-based price in the
market. This is primarily achieved by providing a free to low price for their
products or services to a limited period of time. This later on, with a revised
version comes into the market as a premium product with a little raise in the
price. This strategy is implied to meet the expectation that consumers will hop
on to new brands when they’re priced low. On the other hand, a psychological
pricing strategy is a method that embraces a consumer’s emotional response
rather than considering their rational one. Here consumer ignores the quality of
a service/ product but sticks on to the costing price.

 Product line & economy pricing strategies

The product line pricing strategy is nothing but, providing service with an option
to upgrade upon choosing higher value packs. Consumers are pushed to
compare the packages and choose a wise plus cost-effective product or service.
The other purpose of the product line strategy is to bring a product or service to
the spotlight which had low visibility or recognition earlier. Whereas, economy
pricing strategy embraces no to the low marketing cost in product or service
promotion. It’s more like the budget pricing of a product or service. A great
example would be promoting only a certain range of products or services that
shall gain specific and quick attention among people.

 Customer value-based pricing strategy

This is the most effective method that is followed by many successful companies.
Value-based pricing is a nothing but, price setting strategy that exclusively
focuses on consumer perceived value of a service or product. This is entirely
based on how consumers value the product or service and how they find it
worth buying. Many companies that offer unique and high-value products
choose this strategy in setting the price. The value-based pricing embraces
customer’s abilities to buy a product by considering the unparalleled experience
upon buying a particular service or a product. Many luxury automakers find
customer-value based pricing strategy an effective method of approach. A value-
based strategy will enable manufacturing companies to extend the life-cycle of
existing products and will help to establish a great bond with value-added
suppliers
  Importance of pricing strategies .

Effective pricing strategies shall help a company sell its products in a

competitive market to witness a profit. Well, it is a way or literally an approach
to find the competitive price of service or a product in that particular market.
This strategy is one of the other marketing strategies followed in the system of
every management. It is indeed a known fact that a company’s ultimate goal is to
maximize their turnover. In order to maximize the profit, one has to choose the
right strategy for price setting.

BusinessBusiness magnate might use different combinations of price strategies

to increase sales, but finding the right strategy is a crucial step in the journey
towards success. Often, the misconceived thought on price setting is, sales
volume is directly proportional to profit. An increase in sales volume is expected
to increase a company’s profit.

2.6 Industrial performance Global, National and Regional Basis

Globally performance of industry

If auto manufacturing were a country, it would be the sixth largest economy.The

world’s automotive industry made over 66 million cars, vans, trucks and buses
in 2005. These vehicles are essential to the working of the global economy and to
the wellbeing of the world’s citizens. This level of output is equivalent to a global
turnover (gross revenue) of almost €2 trillion.

AlternativeAlternative fuels

Automakers have invested hugely in reaching air quality improvements and in

developing diverse automobiles that run on alternative fuels including those
from sustainable sources or that use hybrid technology using both gasoline or
diesel engines and electric power. Because consumers, as well as different
regions of the world, favour different technologies, automakers are developing a
range of automobiles that run on different fuels.

Technology jobs

The automobile industry is also a major innovator, investing almost €85 billion
in research, development and production. The auto industry plays a key role in
the technology level of other industries and of society and is one of the largest
investors in research and development, with several manufacturers leading the
Top 10. Vehicle manufacturing and use are also major contributors to
government revenues around the world, contributing over €430 billion in
twenty-six countries alone.

National performance of industry

Market Size

Domestic automobiles production increased at 2.36% CAGR between FY16–20

with 26.36 million vehicles being manufactured in the country in FY20. Overall,
domestic automobiles sales increased at 1.29% CAGR between FY16–FY20 with
21.55 million vehicles being sold in FY20

Two wheelers and passenger vehicles dominate the domestic Indian auto
market. Passenger car sales are dominated by small and mid-sized cars. Two
wheelers and passenger cars accounted for 80.8% and 12.9% market share,
respectively, accounting for a combined sale of over 20.1 million vehicles in
FY20.

OverallOverall, automobile export reached 4.77 million vehicles in FY20,

growing at a CAGR of 6.94% during FY16-FY20. Two wheelers made up 73.9% of
the vehicles exported, followed by passenger vehicles at 14.2%, three wheelers
at 10.5% and commercial vehicles at 1.3%.
EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and
reached 1.56 lakh units in FY20 driven by two wheelers.

PremiumPremium motorbike sales in India recorded seven-fold jump in

domestic sales, reaching 13,982 units during April-September 2019. The sale of
luxury cars stood between 15,000 to 17,000 in the first six months of 2019.

Investments

In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few months.
The industry has attracted Foreign Direct Investment (FDI) worth US$ 24.21
billion between April 2000 and March 2020, according to the data released by
Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the recent/planned investments and developments in the automobile

sector in India are as follows:

 In September 2020, Toyota Kirloskar Motors announced investments of

more than Rs 2,000 crore (US$ 272.81 million) in India directed towards
electric components and technology for domestic customers and exports
 During early September 2020, Mahindra & Mahindra singed a MoU with
Israel-based REE Automotive to collaborate and develop commercial
electric vehicles
 During the same month, Volkswagen announced merger of its three
entities in India, the new entity will be called Skoda Auto Volkswagen
India Private Limited.
 InIn April 2020, TVS Motor Company bought UK’s iconic sporting
motorcycle brand, Norton, for a sum of about Rs 153 crore (US$ 21.89
million), making its entry into the top end (above 850cc) segment of the
superbike market.
  AsAs of May 2019, Jaguar Land Rover (JLR) launched its locally
assembled Range Rover Velar, making JLR cars more affordable by quite
some margin.
 In March 2020, Lithium Urban Technologies partnered with renewable
energy solutions provider, Fourth Partner Energy, to build charging
infrastructure across the country.
 In January 2020, Tata AutoComp Systems, the auto-components arm of
Tata Group entered a joint venture with Beijing-based Prestolite Electric
to enter the electric vehicle (EV) components market.
 In December 2019, Force Motors planned to invest Rs 600 crore (US$
85.85 million) to develop two new models over the next two years.
 In December 2019, Morris Garages (MG), a British automobile brand,
announced plans to invest an additional Rs 3,000 crore (US$ 429.25
million) in India.
 Audi India planned to launch nine all-new models including Sedans and
SUVs along with futuristic E-tron EV by end of 2019.
 MG Motor India planned to launch MG ZS EV electric SUV in early 2020
and have plans to launch affordable EV in the next 3–4 years.
 BYD-Olectra, Tata Motors and Ashok Leyland will supply 5,500 electric
buses for different state departments.

Government Initiatives

The Government of India encourages foreign investment in the automobile

sector and has allowed 100% foreign direct investment (FDI) under the
automatic route.

SomeSome of the recent initiatives taken by the Government of India are –

 Under Union Budget 2019–20, the Government announced to provide

additional income tax deduction of Rs 1.5 lakh (US$ 2,146) on the interest
paid on the loans taken to purchase EVs.
  TheThe Government aims to develop India as a global manufacturing
centre and a Research and Development (R&D) hub.
 Under NATRiP, the Government of India is planning to set up R&D centres
at a total cost of US$ 388.5 million to enable the industry to be on par
with global standards
 The Ministry of Heavy Industries, Government of India has shortlisted 11
cities in the country for introduction of EVs in their public transport
systems under the FAME (Faster Adoption and Manufacturing of (Hybrid)
and Electric Vehicles in India) scheme. The Government will also set up
incubation centre for start-ups working in the EVs space.
 In February 2019, the Government of India approved FAME-II scheme
with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20–
22.

Achievements

Following are the achievements of the Government in the last four years:

 In H12019, automobile manufacturers invested US$ 501 million in India’s

auto-tech start-ups according to Venture intelligence.
 Investment flow into EV start-ups in 2019 (till end of November)
increased nearly 170% to reach US$ 397 million.
 On 29th July 2019, Inter-ministerial panel sanctioned 5,645 electric buses
for 65 cities.
 NATRiP’s proposal for “Grant-In-Aid for test facility infrastructure for EV
performance Certification from NATRIP Implementation Society” under
the FAME Scheme was approved by Project Implementation and
Sanctioning Committee (PISC) on 3rd January 2019.
 Under NATRiP, following testing and research centres have been
established in the country since 2015

International Centre for Automotive Technology (ICAT), Manesar

  National Institute for Automotive Inspection, Maintenance & Training
(NIAIMT), Silchar
 National Automotive Testing Tracks (NATRAX), Indor
 Automotive Research Association of India (ARAI), Pune
 Global Automotive Research Centre (GARC), Chennai
 SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres
are being set up in the country for promoting smart and advanced
manufacturing helping SMEs to implement Industry 4.0 (automation and
data exchange in manufacturing technology).

Road Ahead

The automobile industry is supported by various factors such as availability of

skilled labour at low cost, robust R&D centres, and low-cost steel production.
The industry also provides great opportunities for investment and direct and
indirect employment to skilled and unskilled labour.

Regional Automotive Industrial

In previous papers、a revenue-based classification for firms ‘regional scope

developed、Rugman and Brain（2003）、Rugman and Verbeke（2004）Global firms
were defined as deriving over 20 per cent of their sales from each region of the
broad triad、but less than 50 per cent in any one region Bi-regional firms were
defined as deriving over 20 per cent of their sales from two regions of the
triad、including their own、but less than 50 per cent in the region in which
they are headquartered。Host-region firms are defined as deriving over 50 per
cent of their sales from a region other than their own、Home- region oriented
firms、derived over 50 per cent of their sales from the region in they are
headquarteredIf we begin by examining the

“Transnationality Index ‘（TNI）published in the World Investment

Report（UNCTAD）（2003）we find that all but two auto fims（Honda and Volvo）are
actually less transnational than the average（59.4 per cent）for the top 100
financial transnational corporations This widely-cited measure of
transnationality is based on comparing the foreign to total （F / T）ratios of three
measures：ales、employment and assets。So it focuses on the country-
level（FT）dependence of a im If we then examine the regional dependence of
these firms we find、as shown in Table 3、that none of the 29 automotive MNEs
in the lurgest 500 are global; in fact、23 are classified as” home-region oriented
“、with a majority of their sales in their home region of the triad 。This includes

Volvo which、despite its high TNI indicating a lack of home country orientation
is heavily dependent on the European region。Two automakers and two parts
makers are bi-regional、with over 20 per cent of heir sales in two parts of the
triad and less than 50 per cent in any region DaimlerChrysler and Honda derive
than 50 per cent of their revenue froma host region and are labeled” host-region
oriented。 “” The weighted average of intra- regional sales in the automotive
sector is 60.6 per cent、just below the manufacturing Sector “s average of 61.8
per cent。The automotive sector is concentrated of the United States（North
America）、Europe and Japan（Asia）In each of these regions、domesticproducers
are signifieantly more competitive than foreign producers。General
Motors、Ford and the Chrysler Group of DaimlerChrysler（a U.S. company prior
to the merger with Daimler Benz）each have 28.3 per cent、21.1 cent、and 12.9
per cent of the U.S. market for motor vehicles Together、the largest three
domestic automakers in the United States have 62.3 per cent of the U.S. market
Imports account for approximately 15 per cent of the United States market and
do not include locally made Japanese brands、Moris（2001）In general、the
European market is more fragmented than the North American market。In
2002、Renault had 11.3 per cent of the European market for passenger cars and
ight commercial vehicles。Volkswagen and Opel（a GM subsidiary）followed with
10 per cent and 9 per cent of this market respectively The five largest European
brands Renault、Volkswagen、Peugeot、Fiat and Citroen accounted for 43.6
per cent of the European market Ford、the fourth largest competitor in Europe
had 8.9 per cent of the market。Japanese and South Korean firms accounted for
approximately 12.2 per cent and 3.1 per cent respectively。The Jupanese
market is the most consolidated of all triad markets Toyota alone has 38.3 per
cent of the automobile market、Henderson（2003）。Honda、the second largest
Japanese automaker、accounts for 15.6 per cent
Together、Honda、Toyota、Renault- Nissan and Suzuki-Manuti、the four
largest Japanese automakers、have 78.4 per cent of the Japanese market
Ford、which acquired domestie Mazda、accounts for 5 per cent。General
Motors、the U.S. leader and the world’s largest car manufacturer、has a mere
0.4 per cent of this market。VW the European leader、has 1.2 per cent Imports
area mere 4.5 ner cent of the Japanese market and include imports by Japanese
companies manufacturing abroadExcluding Japan、Toyota is the market leader
in two of the six largest countries in Asia-Pacific Malaysia and Thailand South
Korea is dominated by Hyundai、which controls 72.9 that market。Suzuki-
Maruti is the leader in India、with 36.8 per cent market share Indeed、only
Australia and China have Western-based market leaders。In Australia、GM
controls 22 per cent of the market、followed closely by Japan、which holds
20.6 per cent of the market。Including Japan the top six Asian automakers
control 69.5 per cent of the Asian market This includes Renault-Nissan（8.1 per
cent）and Ford- Mazda（4.4 per cent）、Japanese companies in which Western fims
have a dominant share、Henderson（2003）Although the majority of the market
in each of the three triad regions is controlled by home-region oriented
companies、foreign companies continue to play a major role in each region For
example、Ford holds 10.9 per cent of the European market and is the fourh
largest competitor。A number of foreign companies attained a competitive
position acquiring the operations of a local producer、such as GM’s Opel
subsidiary and others、through organie growth in foreign markets、such as
Toyota and Honda in North America。These findings counter a number of
popular myths about the * archetypal global industry ‘、many dating from the
1980s and early 1990s which saw the global expansion of Japanese fims in the
industry Common views included：that a global car and a global car firm would
soon evolve：that all production would shift to cheap labour regions leaving
“hollow corporations’ in the United States and Europe、Jonas（1986）、and; that
sales by incumbents in the largest markets would be overtaken by more
competitive foreign rivals Both solid research、such as Womack、Jones and
Roos（1991）and more sensationalist books、Maynard（2003）supported these
views each of which hadsignificant strategic implications for management ctions
have not come to pass for the key reason that the industry operates regionally
not globully

2.7 Prospects and Challenges in the Industry

Prospect s

The automobile market is growing at about 25% for the last three years. The
number of persons per car is 200, which is very large compared to other
emerging markets like Korea and Brazil which have about 12 persons per car.
There is therefore a very huge untapped market. Uncertainty exists about the
extent of growth, but a minimum growth rate of 20% is expected until the year
2000. Sales are expected to rise to anywhere between 850,000 to 1.5 million
vehicles by the year 2000. Markets are highly price sensitive since a car is about
18 to 24 months salary for the average middle class buyer. However, incomes
are rising and the economy has been growing steadily at nearly 6%. Import
duties on CKDs and components is 50%. Reduction of prices because of lower
duties and taxes and progressive indigenization, and rising middle class incomes
are likely to further increase industry growth rates. Penetration in rural and
semi urban areas is extremely low and could provide fresh markets. New
entrants will have to deal with uncertainty of demand, different and evolving
customer needs, a relatively poor supplier base, a market crowded with
competition and industry wide capacity shortages. However, if there is a shake
out as many analysts expect, further opportunities for survivors will open up.
Another implication is that India could emerge as a significant manufacturing
base for exports. The supplier industry is also going through massive growth,
although from a small initial base. Except for Telco, indigenous product
development capabilities are very low, and the industry has some way to go
before it becomes world class.

Changes of automotive industry

Excess Production and Related Costs

The increasingly competitive scenario in automotive manufacturing has led to

the overcapacity cropping up as one of the most crucial challenges automotive
industry is facing today. In the U.S. alone, 1,13,14,705 units, including cars and
commercial vehicles had been manufactured in 2018, claims OICA. The same
year, China recorded production worth 2,78,09,196 units while Japan recorded a
volume of 97,28,528 units. Apparently, the figures prove that these sales have
been largely disappointing as compared to the earlier years.

With an unpredictable demand-supply graph at work, in conjunction with

changes in the automotive supply chain ecosystem, manufacturers have been
going overboard and have invested several resources in developing vehicles that
may not actually need to be produced. By the time automakers realize the same,
enough finances have already been drained for labor, production, raw material,
etc., and over-expenditure and resource wastage becomes the norm.

Not to mention, there has been a reduced demand for vehicles in the last couple
of years despite the increased affordability, which is also emerging as one of the
major challenges in automotive industry. Analysts cite the lowered demand for
vehicles in the world’s biggest automotive market, China, to be the reason for the
global slump. Carmakers with established automotive manufacturing businesses
in China have been bearing the full brunt of the U.S.-Sino war, leading to the
Chinese economy slowing down faster.
With lowered consumer confidence and a severely ferocious competitive
landscape, excess automotive manufacturing is becoming inevitable, leading to
heavy financial losses. One of the many ways to mitigate the same is to ensure
adequately efficient planning and better MPS (master production scheduling)
processes.

Connected Technologies and Their Implications

The advent of connected technologies is one of the biggest challenges

automotive industry is facing presently. With every functionality in automobiles
becoming data driven, digitization is becoming rather commonplace in vehicles.
This has led to a huge amount of data liable to be stored, transferred, and
analyzed. Modern cars equipped with automotive electronics apparently collect
a humongous amount of data on a daily basis, that scrutinizes the parameters of
speed, performance, component behavior, etc., and enables the derivation of
real-time insights.

While the greater demand for connected technologies is certain to bring about a
transformational impact on the automotive manufacturing industry, it will also
bring forth a spate of competition and the requirement of extensive planning and
cross-channel integration – right from safety to service. Automakers are
leveraging on consumer demand for connected vehicles, however, with
increased technological integration comes increased complexity, pertaining to
data protection and consumer safety, which car manufacturers are required to
address.

In essence, connected technologies by itself do not pose to be as much of a direct

challenge in automotive industry as their implications do – that include
regulatory pressure, millennial interest, etc.
One of the most revolutionizing breakthroughs of the 21st century, the self-
driving technology has surprisingly emerged to be one of pivotal challenges in
automotive industry, if experts are to be believed. While the world has embraced
the technology with open arms, it still has a very long way to go mainstream.
Numerous companies have already begun to get their technology on the road –
recently, Ford announced that it plans to expand its self-driving fleet in Texas.

However, the transition from level 1 to level 5 – as far as autonomous

technology is concerned, is easier said than done. A slew of technology-driven
challenges pertaining to delivering accurate real-time insights with the help of AI
and Big Data analytics is still midway, as carmakers struggle to grapple with the
same. The EV revolution is not as convenient as it sounds, claim experts, given
that automakers are not equipped yet, to deliver a completely functional,
seamless electric vehicle to the masses. Not only have technical limitations
restrained the progress, but the act requires extensive investments. Not to
mention, the EV industry is also governed by a stringent regulatory frame of
reference.

Yet another one of the challenges automotive industry is facing today is the fact
that despite the hype, the world isn’t quite ready for electric cars. According to
EV Volumes, global plug-in deliveries in H1 2019 were 46% higher than 2018.
However, it has been speculated that EV sales are remarkably a minor fraction of
the overall vehicle deliveries worldwide. One of the reasons for the same has
been attributed to the lack of charging stations across global economies. Another
reason the EV revolution is proving to be one of the challenges in automotive
industry is the limited range of some notable electric car brands.

Sustainability

Emissions have proved to be a major hassle for the global automotive

manufacturing sector. With air quality deteriorating by the day on account of
fuel-powered vehicles, the automotive industry has come to be governed by a
stringent regulatory spectrum. Regulatory authorities have introduced an
emissions cap, to be strictly adhered to by automakers. In this context, it would
be appropriate to state that sustainability challenges in automotive industry are
gaining more precedence than ever before. This is specifically true for Europe,
that houses a large number of automakers.

Increasing CO2 emissions have led to governments levying heavy taxes on car
makers, which has been adding to their financial woes. Manufacturers are
grappling to deal with the introduction of highly stringent CO2 emission
standards, which is making them shell out a humongous amount while designing
and building cars. A huge cut-off in diesel sales has also been observed
worldwide, which has further led to a massive drop in new vehicle registrations.
In the light of this scenario, automakers are now beginning to realize the vast
expanse of sustainability challenges in automotive industry.

With increasing negative publicity about diesel emissions and CO2 capping
becoming all the more stringent, carmakers are finding it highly difficult to offset
an appropriate profit margin, leading to huge financial losses. Not to mention,
surging car rates have also led to declining consumer interests, creating a vicious
cycle of sorts in the automotive sector.

In the coming years, automakers will need to find a cost-effective yet suitable
solution to simultaneously deal with increased regulatory pressure on account
of negative environmental impact and the rising demand for efficient, user-
friendly EV designs, making sustainability one of the highly pivotal challenges
automotive industry is facing today.

The shift from ownership to access

One of the most hard-hitting challenges automotive industry is facing is the

massive shift from ownership to access. Despite increased affordability and a
better standard of living, most consumers witness cars to be more of a
perfunctory requirement than a status symbol or a luxurious possession.
Numerous surveys have unearthed that consumers are open to the idea of using
their cars as a money-making service when they aren’t using them.

Also, consumers are ok with subscribing to monthly services that provide them
access to insurance, vehicles, roadside assistance, maintenance, and the like. On
account of practical ownership difficulties such as parking costs, repair and
maintenance expenditure, and even environmental impact, there has been a
massive decrease in the number of consumers wanting to own a car, which has
initiated service providers such as Uber and Lyft to leverage this inclination
toward access to vehicles on demand.

While not every service app is likely to retain 100% success, the current
scenario indicates that the automotive sector is on the verge of observing a
massive breakthrough that will see vehicle manufacturers focusing on the B2B
channel rather than the B2C channel. In a survey by Intellias, more than 66% of
respondents said that their use of car-sharing platforms may surge exponentially
in the ensuing years.

Dealing with potentially changing consumer preferences and the simultaneously

increasing production of cars is likely to emerge as one of the most crucial
challenges in automotive industry. This would be specifically true in case
driverless cars become mainstream, since it may curb the cost of travel per mile.

MillennialMillennial Woes

The millennial generation and their demands have come to crop up as one of the
major challenges in automotive industry. Increasing complexity in car
production leads to complex operating instructions as well – something that
millennials don’t really want to deal with. This has led to an increased
requirement for personalized, conversational interfaces in automotive
manufacturing, which will eventually result in the demand for more and more
technological advancements.

Decreased preference for ownership is also a pivotal reason millennial

marketing is becoming a major problem. According to an article by Fast
Company, the number of cars bought by the populace between ages 18 to 34
reduced by nearly 30%. A study by the AAA Foundation for Traffic Safety also
claims that of late, 54% teens are licensed before their 18 th birthday, while only
44% of teens apply for a driver’s license within the first year of eligibility. The
statistic increasingly points toward a situation where the millennial generation
has no particular inclination toward ownership and is more predisposed toward
car-sharing platforms, the interface of which can be periodically checked via
smartphones.

The U.S. Census Bureau claims that as on July 1, 2016, millennial population (20-
35) was pegged at 71 million, while that of boomers (52-70) was pegged at 74
million. Apparently, millennial populace is likely to surpass that of baby boomers
in America, by the end of 2019. As their numbers rise, so will their inclination
toward quick solutions. With web analytics company SDL claiming that
millennials between the ages of 18 and 36 check their phone close to 43 times a
day, the pressure on automobile manufacturers to accurately design
technologically advanced vehicles at affordable prices will surge extensively.

Retention of talented workforce

Attracting talent has come forward as one of the most significant challenges
automotive industry is facing today. With changing consumer interest in
digitization and a more personalized, connected car driving experience, the
demand for advanced technologies has also increased. This has consequently
surged the requirement for suitable personnel to understand, design,
incorporate, and maintain these technologies. As per a report
titled ‘Future of jobs in India: A 2022 perspective’, by EY and Ficci-Nasscom, the
automotive sector will continue to hire employees at a rate of 2%-2.5% yearly,
against a historical growth rate of 3%-3.5%. Apparently, close to 60%-65% of
the jobs by 2022 will require new skill sets.

In order to adapt to changing times, experts in the automotive industry are

required to educate themselves with the latest technologies and their
incorporation in automobiles. This also demands the existence of a strong
education system worldwide, with a collaborative learning approach, in tandem
with excellent training programs in companies. With the integration of
technology and the subsequent adoption of automated systems, the industry
requires highly sophisticated talent that is capable enough to endorse
themselves with the necessary skill sets for not only designing and
conceptualizing these systems, but also troubleshooting and maintaining when
necessary.

Novel roles such as 3D printing technician, AI-based vehicle cybersecurity

expert, automobile analytics engineer, and sustainability integration expert are
expected to be generated in the future, phasing out traditional job roles. In the
next half a decade, the automotive industry may be in a critical position where
conventional job roles may slowly disappear and new job roles may be scarcity.
This is undeniably emerging as one of the most significant challenges in
automotive industry
 3.Discussion .

3.1Objective Assessment – Observations by the candidate

Tata Steel has allowed a large section of its workforce to work-from-home

(WFH) even after the pandemic subsides, and the steelmaker on Monday
(November 2) unveiled the policy, in a clear hint that changes to work
routines made in recent months due to the Covid-19 crisis will be enduring.

The domestic steelmaker has launched the ‘Agile Working Models’ Policy
with effect from this month, it said in a statement. Under the new models,
effective November 1, even officers who are required to be based out of a
particular location can now work from home for unlimited days in a year, it
mentioned.Suresh Dutt Tripathi, vice president, Human Resource
 Management, Tata Steel, said: “This policy is a shift in mindset from
monitoring to creating a trust and outcome-based work culture. Flexible
working not only portrays an organisation’s intent to create a workplace for
the upcoming generations but also solidifies its intent to cater to the needs of
its diversified workforce across geographies.”

He went on to add that flexible working provides greater freedom to choose

locations and make essential life decisions such as supporting families, be it
ageing parents or spouse with the non-transferable job.Atrayee Sarkar
Sanyal, vice president, human resource management (designate), Tata Steel,
told ET: “The kind of culture we had was that physically being present was
important, which became completely unimportant for more than 40-50% of
our workforce post-Covid-19.”As a part of the strategy, the company to start
with shift several roles, including IT support, digital marketing, sales and HR,
strategy and planning, quality management to work-from-anywhere mode.

“As we get used to the benefits of absolute work-from-home, I can see around
20% to 30% of the roles that can actually work from any location. We are in
the process of digitally enabling people with the aim to manage machines and
mills remotely,” the financial daily quoted Sanyal as saying.Explaining that it
the entire model will be based on trust with one-year learning period, and if
problems crop up regarding salary structure, delivery or employees enjoying
too much flexibility, Sanyal said the “company will want to have answers”,
emphasising that the “policy is mostly here to stay.”

The main objective of the work-from-anywhere policy is to reduce the huge cost of
real estate. Recently, the company vacated its New Delhi sales office in Connaught
Place. Plus, it is vacating or consolidating offices in New Delhi, Mumbai, Kolkata,
Chennai, Nagpur and Indore.

Sanyal further revealed that the company shifted to the office of its acquired
entity Bhushan Steel and decided to sit together with “50:50 availability in office
space and save on a huge amount of money.” The company was, however,
reticent on the amount it will save.

She mentioned that the company’s attrition rate is primarily because of one
reason that is career opportunities in the location of employees’ choice.

MeanwhileMeanwhileMeanwhileMeanwhile, another Tata Group company Tata

Consultancy Services Ltd (TCS) had announced plans to have only 25 per cent of
its employees back in offices in the long term as the IT major intends to continue
the global work from home model.

3.2 Specific Learning Outcome

Tata Steel is moving towards a trust and outcome-based working culture and to
give more flexibility to its employees, the Company has launched the ‘Agile
Working Models’ Policy with effect from this month.

Under the new working models that are effective from November 1, 2020, even
the officers who are required to be based out of a particular location can now
work from home for unlimited days in a year. Once the pandemic situation
normalizes, the Agile Working Models policy will enable officers to move to a
location of choice, giving the employee the flexibility to operate out of any
location in the country.

This policy is yet another step for Tata Steel to become more agile, future-ready
and to strengthen its Employee Value Proposition. It will be piloted for a year
and based on adaptability and feedback, the policy will be reviewed after one
year.

“This policy is a shift in mindset from monitoring to creating trust and outcome-
based work culture. Flexible working not only portrays an organization’s intent
to create a workplace for the upcoming generations but also solidifies its intent
to cater to the needs of its diversified workforce across geographies. This
pandemic has helped us move away from the traditional thinking of productivity
being contingent upon fixed hours of work within an office environment and
bust many of the myths around remote working,” said, Suresh Dutt Tripathi, Vice
President, Human Resource Management, Tata Steel.

The policy will ensure better work-life balance, will give more flexibility to
choose where one lives as the daily work commute shifts out of consideration,
provide working opportunities to new parents at their convenience, and ensures
continuity of work for Persons with Disabilities in their respective work enabled
environment.

“Flexible working provides greater freedom to choose locations and make

essential life decisions such as supporting families, be it ageing parents or
spouse with a non-transferable job. This will help in retaining and enriching our
key talent from across the country and attract workforce for location-agnostic
roles,” Suresh Dutt Tripathi added.

The automotive industry comprises a wide range of companies and

organizations involved in the design, development, manufacturing, marketing,
and selling of motor vehicles.[1] It is one of the world’s largest industries by
revenue. The automotive industry does not include industries dedicated to the
maintenance of automobiles following delivery to the end-user,[citation needed]
such as automobile repair shops and motor fuel filling stations.The word
automotive comes from the Greek autos (self), and Latin motivus (of motion),
referring to any form of self-powered vehicle.[clarification needed] This term, as
proposed by Elmer Sperry][need quotation to verify] (1860-1930), first came
into use with reference to automobiles in 1898.

Safety
Safety is a state that implies to be protected from any risk, danger, damage or
cause of injury. In the automotive industry, safety means that users, operators or
manufacturers do not face any risk or danger coming from the motor vehicle or
its spare parts. Safety for the automobiles themselves, implies that there is no
risk of damage.

safety in the automotive industry is particularly important and therefore highly

regulated. Automobiles and other motor vehicles have to comply with a certain
number of regulations, whether local or international, in order to be accepted on
the market. The standard ISO 26262, is considered as one of the best practice
framework for achieving automotive functional safety.

In case of safety issues, danger, product defect or faulty procedure during the
manufacturing of the motor vehicle, the maker can request to return either a
batch or the entire production run. This procedure is called product recall.
Product recalls happen in every industry and can be production-related or stem
from the raw material.

tProduct and operation tests and inspections at different stages of the value
chain are made to avoid these product recalls by ensuring end-user security and
safety and compliance with the automotive industry requirements. However, the
automotive industry is still particularly concerned about product recalls, which
cause considerable financial consequences.

Economy

In 2007, there were about 806 million cars and light trucks on the road,
consuming over 980 billion litres (980,000,000 m3) of gasoline and diesel fuel
yearly. The automobile is a primary mode of transportation for many developed
economies. The Detroit branch of Boston Consulting Group predicted that, by
2014, one-third of world demand would be in the four BRIC markets (Brazil,
Russia, India and China). Meanwhile, in the developed countries, the automotive
industry has slowed. It is also expected that this trend will continue, especially as
the younger generations of people (in highly urbanized countries) no longer
want to own a car anymore, and prefer other modes of transport.[] Other
potentially powerful automotive markets are Iran and Indonesia. Emerging
automobile markets already buy more cars than established markets. According
to a J.D. Power study, emerging markets accounted for 51 percent of the global
light-vehicle sales in 2010. The study, performed in 2010 expected this trend to
accelerate. However, more recent reports (2012) confirmed the opposite;
namely that the automotive industry was slowing down even in BRIC
countries.In the United States, vehicle sales peaked in 2000, at 17.8 million units.
4.Findings
1) TATA MOTORS, is number three in passenger car market after maruti-suzuki
& hyundai. Majority of the customers see TATA MOTORS with savings

2) Most of the customers spend large sum of money

3) Out of the samples, people are highly convinced that TATA MOTORS will yield
them better results

4) As the sales of Maruti grows as well as Hundai's santro is still doing well in
mid size and small size segment so the INDICA VISTA may be a good options for
the company in this term for sustaining sales long run as well as in the current
situations

, 5) Product will have a gradual progress. Because most industries would wait for
the response about the product from other Company

. 6) Customers were educated by me, about fuel efficient cars by TATA MOTORS
 5. Bibliography

WEBSITES: Tatamotors.com

Yahoofinance.com

Valuerescacrhonline.com