CHAPTER –I

AN OVERVIEW OF AUTOMOTIVE INDUSTRY

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 (from 16 % such as in France up to 40 % to countries

like Slovakia). It is also the industry with the highest spending

The word automotive comes from the Greek autos (self), and Latin motivus (of motion),

referring to any form of self-powered vehicle. This term, as proposed by Elmer Sperry (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 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.[6] From 1970 (140 models) over 1998 (260 models) to 2012 (684

models), the number of automobile models in the U.S. has grown exponentially.

Early car manufacturing involved manual assembly by a human worker. The process

evolved from engineers working on a stationary car, to a conveyor belt system where the car

1
passed through multiple stations of more specialized engineers. Starting in the 1960s, robotic

equipment was introduced to the process, and today most cars are produced largely with

automated machinery.

Safety is a state that implies being 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 one of the best practice frameworks 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 raw material.

Product 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.

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

2
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.

In July 2021, the European Commission released its "Fit for 55" legislation package,

which contains important guidelines for the future of the automotive industry; all new cars on the

European market must be zero-emission vehicles from 2035.

The governments of 24 developed countries and a group of major car manufacturers

including GM, Ford, Volvo, BYD Auto, Jaguar Land Rover and Mercedes-Benz committed to

"work towards all sales of new cars and vans being zero emission globally by 2040, and by no

later than 2035 in leading markets". Major car manufacturing nations like the US, Germany.

The global automotive industry is a major consumer of water. Some estimates surpass

180,000 L (39,000 imp gal) of water per car manufactured, depending on whether tyre

production is included. Production processes that use a significant volume of water include

3
surface treatment, painting, coating, washing, cooling, air-conditioning and boilers, not counting

component manufacturing. Paintshop operations consume especially large amounts of water,

because equipment running on water-based products must also be cleaned with water.

In 2022, Tesla's Gigafactory Berlin-Brandenburg ran into legal challenges due to

droughts and falling groundwater levels in the region. Brandenburg's Economy Minister Joerg

Steinbach said that while water supply was sufficient during the first stage, more would be

needed once Tesla expands the site. The factory would nearly double the water consumption in

the Gruenheide area, with 1.4 million cubic meters being contracted from local authorities per

year — enough for a city of around 40,000 people. Steinbach said that the authorities would like

to drill for more water there and outsource any additional supply if necessary.

Automotive industry, all those companies and activities involved in the manufacture of

motor vehicles, including most components, such as engines and bodies, but excluding tires,

batteries, and fuel. The industry’s principal products are passenger automobiles and light trucks,

including pickups, vans, and sport utility vehicles. Commercial vehicles (i.e., delivery trucks and

large transport trucks, often called semis), though important to the industry, are secondary. The

design of modern automotive vehicles is discussed in the articles automobile, truck, bus,

and motorcycle; automotive engines are described in gasoline engine and diesel engine. The

development of the automobile is covered in transportation, history of: The rise of the

automobile.

The history of the automobile industry, though brief compared with that of many other

industries, has exceptional interest because of its effects on history from the 20th century.

Although the automobile originated in Europe in the late 19th century, the United

States completely dominated the world industry for the first half of the 20th century through the

4
invention of mass production techniques. In the second half of the century the situation altered

sharply as western European countries and Japan became major producers and exporters.

Although steam-powered road vehicles were produced earlier, the origins of the

automotive industry are rooted in the development of the gasoline engine in the 1860s and ’70s,

principally in France and Germany. By the beginning of the 20th century, German and French

manufacturers had been joined by British, Italian, and American makers.

Most early automobile companies were small shops, hundreds of which each produced a

few handmade cars, and nearly all of which abandoned the business soon after going into it. The

handful that survived into the era of large-scale production had certain characteristics in

common. First, they fell into one of three well-defined categories: they were makers of bicycles,

such as Opel in Germany and Morris in Great Britain; builders of horse-drawn vehicles, such as

Durant and Studebaker in the United States; or, most frequently, machinery manufacturers. The

kinds of machinery included stationary gas engines (Daimler of Germany, Lanchester of Britain,

Olds of the United States), marine engines (Vauxhall of Britain), machine tools (Leland of the

United States), sheep-shearing machinery (Wolseley of Britain), washing machines (Peerless of

the United States), sewing machines (White of the United States), and woodworking and milling

machinery (Panhard and Levassor of France). One American company, Pierce, made birdcages,

and another, Buick, made plumbing fixtures, including the first enameled cast-iron bathtub. Two

notable exceptions to the general pattern were Rolls-Royce in Britain and Ford in the United

States, both of which were founded as carmakers by partners who combined engineering talent

and business skill.

5
 In the United States almost all of the producers were assemblers who put together

components and parts that were manufactured by separate firms. The assembly technique also

lent itself to an advantageous method of financing. It was possible to begin building motor

vehicles with a minimal investment of capital by buying parts on credit and selling the finished

cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of

motor vehicles in the United States ever since. European automotive firms of this period tended

to be more self-sufficient.

Studebaker electric car

The pioneer automobile manufacturer not only had to solve the technical and financial

problems of getting into production but also had to make a basic decision about what to produce.

After the first success of the gasoline engine, there was widespread experimentation with steam

and electricity. For a brief period the electric automobile actually enjoyed the greatest acceptance

because it was quiet and easy to operate, but the limitations imposed by battery capacity proved

competitively fatal. Especially popular with women, electric cars remained in limited production

well into the 1920s. One of the longest-surviving makers, Detroit Electric Car Company,

operated on a regular basis through 1929.

Steam power, a more serious rival, was aided by the general adoption, after 1900, of the so-

called flash boiler, in which steam could be raised rapidly. The steam car was easy to operate

because it did not require an elaborate transmission. On the other hand, high steam pressures

were needed to make the engine light enough for use in a road vehicle; suitable engines required

expensive construction and were difficult to maintain.

6
 CHAPTHER – II

(A) PROFILE OF TATA

Formerly Tata Engineering and Locomotive Company Ltd.

(TELCO)

Type Public

BSE: 500570
Traded as
NSE: TATAMOTORS

NYSE: TTM

NSE NIFTY 50 Constituent

ISIN IN9155A01020

Industry Automotive

Founded 1945; 77 years ago

Founder Jehangir Ratanji Dadabhoy Tata

Headquarters Mumbai, Maharashtra, India[1]

Area served Worldwide

Key people Natarajan Chandrasekaran (Chairman)

Martin Uhlarik (CDO)

Products Automobiles

7
 Luxury vehicles

Commercial vehicles

Automotive parts

Pickup trucks

SUVs

Production output  1.1 Million (approx) (2021)

Services Automotive finance

Vehicle leasing

Vehicle service

Revenue  ₹281,507 crore (US$35 billion) (2022)[2]

Operating income  ₹−7,003 crore (US$−880 million) (2022)[2]

Net income  ₹−11,234 crore (US$−1.4 billion) (2022)[2]

Total assets  ₹330,619 crore (US$41 billion) (2022)[3]

Total equity  ₹44,554 crore (US$5.6 billion) (2022)[3]

Number of employees 78,906 (2021)[2]

Parent Tata Group

Divisions Tata Motors Cars

Subsidiaries Tata Daewoo

Jaguar Land Rover

Tata Technologies

Tata Hispano

8
 Tata Hitachi Construction Machinery

Tata Passenger Electric Mobility

Website www.tatamotors.com

Tata Motors Limited is an Indian multinational automotive manufacturing company,

headquartered in Mumbai, India, which is part of the Tata Group. The company

produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, construction

equipment.

Formerly known as Tata Engineering and Locomotive Company (TELCO), the company

was 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 most affordable car. Tata Motors acquired the South Korean truck

manufacturer Daewoo Commercial Vehicles Company in 2004. Tata Motors has been the parent

company of Jaguar Land Rover since the company established it for the acquisition of Jaguar

Cars and Land Rover from Ford in 2008.

Tata Motors' principal subsidiaries include British 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 construction-equipment manufacturing joint

9
venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture

with Stellantis which manufactures automotive components and Fiat Chrysler and Tata branded

vehicles. On Oct 12, 2021 private equity firm TPG invested $1 billion in Tata Motors' electric

vehicle subsidiary.

Tata Motors has auto manufacturing and vehicle plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in

Argentina, South Africa, the United Kingdom, and Thailand. It has research and development

centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and South Korea, the United

Kingdom, and Spain. Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is a

constituent of the BSE SENSEX index, the National Stock Exchange of India, and the New York

Stock Exchange. The company is ranked 265th on the Fortune Global 500 list of the world's

biggest corporations as of 2019.

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

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

Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Group entered the

commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany.

After years of dominating the commercial vehicle market in India, Tata Motors entered the

passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility vehicle based on

the Tata Mobile platform. Tata subsequently launched the Tata Estate (1992; a station

wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV) and

the Tata Safari (1998).

Tata launched the Indica in 1998, a fully indigenous Indian passenger car tailor-made to

suit Indian consumer needs though styled by I.D.E.A, Italy. Although initially criticised by auto

10
analysts, its excellent fuel economy, powerful engine, and an aggressive marketing strategy

made it one of the best-selling cars in the history of the Indian automobile industries. A newer

version of the car, named Indica V2, was a major improvement over the previous version and

quickly became a mass favourite. Tata Motors also successfully exported large numbers of the

car to South Africa. The success of the Indica played a key role in the growth of Tata Motors.

In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo

Commercial Vehicles Company, later renamed Tata Daewoo.

On 27 September 2004, Ratan Tata, the Chairman of Tata Motors, rang the opening bell

at the New York Stock Exchange to mark the listing of Tata Motors.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach

manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through the

introduction of new products such as buses (Starbus and Globus, jointly developed with

subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata

Daewoo).

In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo

Bus, to manufacture fully built buses and coaches.

(B) PROFILE OF KIA

Kyungsung Precision Industry

Formerly
Kia Motors Corporation

11
Type Public

Traded as KRX: 000270

Industry Automotive

Founded June 9, 1944; 78 years ago[1]

Headquarters Seoul

, 

South Korea

Area served Worldwide (except Japan and North Korea)

Key people Chung Eui-sun, chairman

Song Ho-Sung, president and CEO

Karim Habib, chief design officer [2]

Products Automobiles

Commercial vehicles

Production output  2,558 million units (2021)[3]

Revenue  KRW 69.86 trillion (2021)[4][3]

Operating income  KRW 5.06 trillion (2021)[4][3]

Net income  KRW 4.76 trillion (2021)[4][3]

Total assets  KRW 66.84 trillion (2021)[4]

Total equity  KRW 34.91 trillion (2021)[4]

Owner Hyundai Motor Company (33.88%)

Number of  51,975 (2021)[5]

12
 employees

Parent Hyundai Motor Group

Subsidiaries Kia America

Kia Central & South America

Kia Europe

Kia Mexico

Kia India

Kia Motors Chenab

Kia Lucky Motors Pakistan

Kia Defense

Website kia.com

Kia Corporation, commonly known formerly known as Kyungsung Precision

Industry and Kia Motors Corporation), is a South Korean multinational automobile

manufacturer headquartered in Seoul, South Korea. It is South Korea's second largest automobile

manufacturer, after its parent company, Hyundai Motor Company, with sales of over 2.8 million

vehicles in 2019. As of 2015, the Kia Corporation is minority owned by Hyundai, which holds a

33.88% stake valued at just over US$6 billion. Kia in turn is a minority owner of more than

twenty Hyundai subsidiaries ranging from 4.9% up to 45.37%, totaling more than

US$8.3 billion. Kia was founded on June 9, 1944, as Kyungsung Precision Industry, a

manufacturer of steel tubing and bicycle parts, eventually producing Korea's first domestic

bicycle, the Samchully, in 1951. In 1952, Kyungsung Precision Industry changed its name to Kia

13
Industries, and later built Honda-licensed small motorcycles (starting in 1957) and Mazda-

licensed trucks (1962) and cars (1974). The company opened its first integrated automotive

assembly plant in 1973, the Sohari Plant. Kia built the small Mazda-based Brisa range of cars

until 1981, when production came to an end after the new military dictator Chun Doo-

hwan enforced industry consolidation. This forced Kia to give up passenger cars and focus

entirely on light trucks. Kia assembled a few hundred more cars in 1982 and 1983, after the ban

had taken effect, but no passenger cars were built in 1984 and 1985.

Prior to the forced 1981 shutdown, Kia had rounded out its passenger car lineup with two

other foreign models assembled under license: the Fiat 132 and the Peugeot 604. The import of

these knock-down kits was permitted as long as Kia exported five cars for every single Fiat or

Peugeot brought in (Hyundai had to meet the same requirement).

Starting in 1986 (when only 26 cars were manufactured, followed by over 95,000 the

next year), Kia rejoined the automobile industry in partnership with Ford. Kia produced several

Mazda-derived vehicles for both domestic sales in South Korea and for export into other

countries - where they were positioned at the budget end of the market. These models included

the Kia Pride, based on the Mazda 121 and the Avella, which were sold in North America

and Australasia as the Ford Festiva and Ford Aspire. In 1992, Kia Motors America was

incorporated in the United States. The first Kia-branded vehicles in the United States were sold

from four dealerships in Portland, Oregon, in 1992. Since then, Kia methodically expanded one

region at a time. Dealers in 1994 sold the Sephia and a few years later the United States segment

expanded their line with the Sportage. Over one hundred Kia dealerships existed across thirty

states by 1995, selling a record 24,740 automobiles.

14
 Kia declared bankruptcy in 1997, during the Asian financial crisis, and in 1998 reached

an agreement with Hyundai Motor Company to diversify by exchanging ownership between the

two companies. Hyundai Motor Company acquired 51% of the company, outbidding Ford Motor

Company, which had owned an interest in Kia Motors since 1986. After subsequent divestments,

Hyundai Motor Company owns about one third of Kia Motor Corporation. While Hyundai Motor

Company remains Kia's largest stakeholder, Kia Motor Company also retains ownership in some

22 Hyundai Motor Company subsidiaries. Since 2005, Kia has focused on the European market

and has identified design as its "core future growth engine"—leading to the hiring of Peter

Schreyer in 2006 as chief design officer and his subsequent creation of a new corporate grille

known as the 'Tiger Nose'. In October 2006, Kia Motors America broke ground for Kia Motors

Manufacturing Georgia in West Point, Georgia, representing a US$1 billion investment for the

company. Kia Motors Manufacturing Georgia opened in February 2010, after Kia recorded its

15th consecutive year of increased U.S. market share. In August 2014, the company received

international attention when Pope Francis of the Catholic Church rode in one of their compact

cars, the Kia Soul, during a five-day visit to South Korea. The Kia Soul drew bigger attention

than two other vehicles used by the Pope, their Kia Carnival and Hyundai's Santa Fe, because it

appeared in the high-profile welcoming ceremony of his arrival at the Seoul Airport on August

14. In 2016, Kia Motors model reliability was ranked first in the United States by J.D. Power and

Associates, becoming the first non-luxury automaker since 1989 to top that list

Kia America, Inc. was incorporated in California on October 21, 1992, and became the American

sales, marketing, and distribution arm of Kia Corporation. KMA is based in Irvine, California,

and currently offers a complete line of vehicles through more than 755 dealers throughout the

United States. The first two models that were introduced to the U.S. market in 1993 were KIA

15
Sephia and Kia Sportage 4x4. In the United States, sales began in late 1993 for the 1994 model

year.

CHAPTHER – III

(A) MARKETING MIX OF TATA

16
 Marketing is the process by which a product or service originates and is then priced,

promoted, and distributed to consumers. The principal marketing functions involve market

research and product development, design, and testing. It is the business activity of presenting

products or services in such a way as to make them desirable.

One has to consider promotion that is balanced with a suitable product available at a reasonable

price, provided at all places to maximize the sale of one’s product.

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

 Brand : Advertising is often used to make consumers aware of a product’s special low

price or its benefits. But an even more important function of advertising is to create an

image that consumers associate with a product, known as the brand image. The brand

image goes far beyond the functional characteristics of the product. The products of Tata

Motors have many special characteristics to them, but when consumers think of it, they

not only think of its features, but they may also associate it with quality, performance,

class. All of these meanings have been added to the product by advertising. Consumers

frequently buy the product not only for its functional characteristics but also because they

want to be identified with the image associated with the brand.

 Tata Motors have been successful in creating and maintaining a professional brand

image.

 Packaging : A vehicle cannot have a material packaging. Here, packaging refers to and

effective assembly of features. Tata Motors provide many innovative features to suit the

target customers and the product. E.g. Tata Safari Dicor has ‘Reverse Guide System’

which includes a weather-proof camera to help the driver while reversing the vehicle.

17
 Innovations : The various motives behind buying an automobile are Need, Prestige,

Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to

bring new innovations in their product. Tatas have an industrial experience of over 100

years and they are well known with the Psychology of Indian customers, who desire more

at less price. This experience has helped them to develop products which fulfill the

expectations of Indian consumers.

 Quality Control : Tata Motors have their Quality Control standards and the QC Dept.

ensures that the customer does not face any inconveniences of a defective product.

2. PRICE (Pricing Strategy, Alterations, Discounts)

 . Pricing Strategy : The prices are fixed keeping in mind a number of factors. As told by

Mr. Desai, prices have to be at par with the prices of the competitors. Tata Motors give a

relative price advantage as compares to its competitors. The various determinants of price

are

 Market Condition

 Costs incurred

 Profit percentage desired by the Co.

 Dealer Profit

 Alterations : The Company does not allow any alterations to any of the features of the

product. If there is an alteration which affects the performance of the engine, then the

warranty becomes void. However, there may be alterations in the accessories, if desired

by the customer.

18
  Discounts : Discounts are decided by the Co. every month. Any further discounts made

from the profits of the dealer. However, the Co. may compensate the dealer for the

discounts allowed to a certain extent.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations)

 Personal Selling : There is minimal personal selling involved. The Sales Officers at the

dealerships collect prospective customer databases and perform cold calling to attract

customers.

 Advertising : Advertising is a form of commercial mass communication designed to

promote the sale of a product or service. Tata Motors is responsible for the advertising of

its products. The dealer does play any role in the advertising. The various media used for

advertising are T.V., Newspapers, Magazines, Hoardings, Internet etc. The dealer

conducts point-of-purchase displays to advertise the products. The advertisements done

by the Co. help the dealer to capitalize on the market.

 Sales Promotion : The purpose of sales promotion is to supplement and coordinate

advertising and personal selling; Sales promotions are designed to persuade consumers to

purchase immediately by providing special incentives such as cash rebates, prizes, extra

product, or gifts. The Co. conducts intensive sales promotion during festivals such as

festive discounts during Diwali.

 Public Relations : Public Relations is a management function that creates, develops, and

carries out policies and programs to influence public opinion or public reaction about an

idea, a product, or an organization. The Co. takes serious measures to maintain good

19
 public relations. The Co. follows business ethics to ensure that the customer is satisfied

and receives good service whenever and wherever he desires

4. PLACE (Channels of Distribution, Physical Distribution)

 Channels of Distribution : In case of vehicles, dealership method of distribution and

sales is generally adopted. Tata Motors have also adopted dealership method of

distribution of its products. The dealers purchase products from the Co. at a negotiated

price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. As

the Co. deals in commercial and passenger vehicles, there may be a single or distinct

dealerships to market its commercial and passenger vehicles in a town. However, if there

is a single dealership appointed, then the commercial and passenger vehicles are managed

under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively..

 Physical Distribution : The commercial vehicles are manufactured

at Jamshedpur, Lucknow and Pantnagar whereas the passenger vehicles are manufactured

at Pune plant. From the plant, the finished product is transported to the dealerships. The

nation-wide dealership.

(B) MARKETING MIX OF KIA

Kia Motors is a public company of Korean origin. It is associated with automotive

industry and deals in manufacturing vehicles. It was founded in the year 1994 and was named

20
Kyungsung Precision Industry which was later changed to its current name Kia Motors. It is

ranked at the second position as the largest manufacturer of automobiles in South Korea.

The brand has targeted upper-middle and an upper class section of society as its target customers.

Some of its rival companies in consumer market.

Product in the Marketing Mix Of Kia Motors :

Kia Motors is positioned as one of the top manufacturers based on its sales figures which

are estimated at 1.5 million units every year. Its product portfolio includes trucks, SUVs and

passenger cars.It has also produced military vehicles along with transportation equipment and

several variants.  Kia Motors is an easily recognised brand because of its distinctive, vibrant and

reliable range of vehicles. Some of its popular models that have been available to its customers

are as follows-

 OPTIMA Plug-in Hybrid

 OPTIMA Sports Wagon GT

 OPTIMA Sports Wagon

 OPTIMA GT

 OPTIMA

 SOUL

 PRO_CEED

 SORENTO

 SPORTAGE

 CARENS

 SOUL EV

21
  CEE’D GT

 PRO_CEE’D GT

 VENGA

 NIRP

 CEE’D Sports Wagon

 CEE’D

 RIO

 PICANTO

Place in the Marketing Mix Of Kia Motors :

Kia Motors serves a worldwide area with its headquarters base at Seoul in South

Korea. It has fourteen plants for manufacturing and designing at places like Hwaseong, Seosan,

Gwangju and Sohari in South Korea, Georgia in the United States, Quang Nam in Vietnam,

Pesqueria in Mexico, Jiangsu in China and Zilina in Slovakia. Distribution and sales of Kia

Motors are handled by Kia Motors America.

Vehicles are serviced and sold via a strong and widespread

distribution channel that includes services of dealers and distributors spread over one hundred

and eighty countries. Kia Motors has an efficient workforce that includes specially trained fifty

thousand employees. It has R&D facility at Namyang in South Korea along with research centres

in Germany, Japan and the USA. It also manufactures in local markets using car Kits in places

like Vietnam, Uruguay, Russia, Malaysia, Iran and Ecuador. Vehicles from Kia Motors are easily

available at several showrooms and can also be booked via online auto-shopping portals.

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Price in the Marketing Mix Of Kia Motors :

Kia Motors has estimated annual revenues of nearly forty-four billion dollars. It

realises the necessity to target right market and set up effective pricing strategy after a complete

overall analysis of market conditions. It is very important to know the extent a customer is

willing to shed on a purchase.Kia Motors also faces strong competition from rival companies and

as it manufactures and markets premium products it is very important to strike a right balance

between its customers, its prices and its company. It has adopted a competitive pricing policy so

that its product prices are marginally similar to vehicles manufactured by rival companies. Kia

Motors has put its onus more on sales figures than on profits because it is aware of the basic

golden rule that higher volume will ultimately lead to greater profits.

Promotions in the Marketing Mix Of Kia Motors :

Kia Motors has a very descriptive slogan Power to Surprise and it is reflected via its ad

campaigns. It has adopted Positioning strategy to leave a positive mark on the mindset of its

present and prospective clients. Its ads are shown via social, electronic and print media.

One can easily find an ad related to this brand via television, magazines and hoardings

and especially via YouTube, Twitter, online banner and Facebook. Kia Motors has been an avid

participant in several sports and events because of sponsorship deals in FIFA World Cup,

Australian Open, Euro Cup, NBA, WNBA, Archery World Cup and Formula 1. It has

won International Car of the Year Award since 2013, every year. 

CHAPTHER – IV

23
(A) MARKETING STRATEGY OF TATA

Headquartered in Mumbai Tata Motors (formerly known as TELCO acronym form

for TATA Engineering and Locomotive Company) are an Indian multinational automotive

manufacturing company and a member of Tata group. Products offered by the company varies

from cars, trucks, vans, coaches, military vehicles, sports cars, buses and construction

equipment.TATA Motors is ranked as 226th in the Fortune Global 500 list of world’s biggest

corporations as of 2016.

Segmentation, targeting, positioning in the Marketing strategy of Tata Motors

Tata Motors does not follow a single marketing approach or formula but it

believes that all members of the community should be served. Brand targets crowd from the rural

part to the metros with its offerings varying from NANO to Jaguar Land Rover segment.

It targets anyone above 4 Lakh p.a. salary, millennial employed as

professionals, managers and all those looking to switch from 2-wheeler to 4-wheeler. The age

bracket for brand’s offering varies from 21-65 years with all Middle class. Upper middle class,

High class and Affluent class in its target category.Tata Motors offers products such as Tata

ACE a mini truck mainly used for agriculture transport purpose, Tata NANO for the middle

class, Tata Indica and Indigo for commercial purposes and Jaguar in the high-class segment thus

creating the image that there’s something for everyone in its huge line of offerings.

Competitive advantage in the Marketing strategy of Tata Motors

Based in India serves as a huge competition for the company as it offers the brand

low-cost labour base with the help which company not only targets the Indian market but also

24
other emerging markets with a huge range of economical segment vehicles. The products thus

offered are manufactured at a much lower cost and sold to new markets earning huge profits for

the company.

The policies and regulations for the automobile sector in the country along with

the least expensive automobile parts availability are the some of the major conditions which help

the brand in its business expansion.The excellent innovation and research and development at

TATA Motors have set up an example for its competitors. With its various research centres

across the country, the brand is working on the improvement of the engine efficiency, design,

style and instrumentation of vehicles.

For breaking into foreign markets TATA Motors has over the years acquired

various foreign companies. While the company has delivered amazing results in the domestic

market, its subsidiary Jaguar land rover has broken all the records of competitors as a top luxury

automobile manufacturer. This mega expansion mode calls for major product development,

capacity capitalization and various national and international mergers.

BCG Matrix in the Marketing strategy of Tata Motors

Indica being the most preferred commercial vehicle features in the star segment along

with Safari Dicor, Manza, Winger and Magic.With Safari, Sumo and Indigo CS being their cash

cow, Nano& Zest still continues to be in question mark segment.

Distribution strategy in the Marketing strategy of Tata Motors

Tata With 576 car dealers across 424 cities in India, TATA Motors holds a robust dealers

network in the country through it sells more than 56,000 in the month of July 2018. Brand

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registered a staggering growth of 64%  in its domestic sales for the first quarter (April-June

2018), FY19 at 164,579 units compared to 100,141 units over the previous year due to its strong

network of dealers.

Brand equity in the Marketing strategy of Tata Motors

TATA aims to fulfil the emerging needs of the automobile industry by coming up with a

new range of products. These products are manufactured with the purpose of providing comfort,

reliability, safety, capacity and value to the end customers. In order to stay ahead of the

competition, the company is going for huge investments in the area of product development.

TATA Nano carries an image of the cheapest car in the world, TATA Ace is being introduced in

the commercial vehicle market for snatching the market share of its rivals. Another sporty

vehicle Nexon with both diesel and petrol engine is also attracting customers already

Market analysis in the Marketing strategy of Tata Motors

With a market share of 44% in commercial vehicles segment in a 2017-2018 brand is

a market leader in the sector.With an initiative Turnaround, 2.0 company is targeting to regain its

market share in Passenger vehicle segment. Part of this has already put in place which has

already started showing signs of improvement for the company’s PV firm.With the focus on

serviceability tapping and penetrating the growing markets will further help the company with its

Turnaround 2.0 initiative in this highly competitive sector.

Customer analysis in the Marketing strategy of Tata Motors

Customers of TATA Motors are the low, middle groups who are looking to switch to 4-

wheeler from 2-wheeler who are looking to purchase a car for a family purpose at affordable

26
prices. Customers of the brand also include youth and high-class business professional who is

looking for innovative, trending vehicles with world-class safety features.

Promotional strategy in the Marketing strategy of Tata Motors

TATA Motors carries out its promotional strategy in 2 ways:

Above the line (ATL)

It includes: print ads (newspaper advertisements by local dealers, magazines)

TV, Radio

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 (B) MARKETING STRATEGY OF KIA

Marketing Strategy of Kia Motors analyses the brand with the marketing mix framework

which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies

like product innovation, pricing approach, promotion planning etc. These business strategies,

based on Kia Motors marketing mix, help the brand succeed in the market.

Kia Motors marketing strategy helps the brand/company to position itself competitively in the

market and achieve its business goals & objectives.

Let us start the Kia Motors Marketing Strategy & Mix to understand its product, pricing,

advertising & distribution strategies:

 Product Strategy

 Pricing Strategy

 Place and Distribution Strategy

 Promotional and Advertising Strategy

Kia Motors Product Strategy:

The product strategy and mix in Kia Motors marketing strategy can be explained as follows:

Kia Motors is one of the leading car manufacturing companies. Kia is majorly a car

manufacturing company and it also manufactures commercial vehicles, which are the products in

its marketing mix strategy. Kia Motors also has wing which produces military vehicles for the

Government of South Korea.

In the car segment Kia Motors has basically compact cars, sedans, crossovers &

minivans, hybrid and electric, special edition cars and concept cars. Some of the popular brands

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are Optima, Rio, Picanto, Sorento, Cerato, Carnival, Soul, Sportage and Cadenza. Kia Motors

also has a 5 door variants for certain sedans such as Cerato and Rio. In the commercial vehicles

segment Kia Motors has mini trucks

Kia Motors has been building its brand on quality and design and advantage of the 10

year warranty period at affordable prices. Kia also tries to build upon the overall ride quality and

experience by using innovation and R&D centres.

Kia Motors Price/Pricing Strategy:

Below is the pricing strategy in Kia Motors marketing strategy:

Kia Motors follows a competitive pricing strategy in its marketing mix when it had been in South

Korea.

But as it has stepped into the global frontier and exports vehicles from the manufacturing

plants itself. Due to this it charges higher prices in other countries such as US, in various parts of

UK, parts of Africa. Even the cheapest car Rio is priced at $14000. Kia Motors also is not

providing very competitive discounts as its counterparts such as Nissan after it has gained brand

value in various parts of the world. As the company is expanding ambitiously and upscaling its

flagship cars and its other brands, it is trying to move up the ladder of the price range. But Kia

Motors is still not as competitive as compared to the traditional brands. Kia also maintains price

gaps between the ranges of products it is selling so that the brand segments don’t overlap.

Kia Motors Place & Distribution Strategy:

Kia Motors has got a network of around 4000 dealers globally which serve to the 170+

countries. This has helped in gaining sales in excess of 3 million units. There are 20 regional

headquarters which look after 342 sales offices. Kia Motors has also got a network of 11

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shopping offices across the globe which are strategically placed and able to cater to Europe,

America, Middle East, Africa and Asia Pacific regions. There is also a huge network of 20

regional service centres and 243 comprehensive service provider across the globe as Kia Motors

provides a long duration of warranty. It majorly manufactures cars in South Korea itself and

others coming from China, Slovakia and USA plant. Kia Motors has also got 3 R&D centres

which look after reengineering the ride experience and provide innovative design in form

concept cars. It has also got Technical centres which help in enhancing the safety ratings and

efficiency and overall ride quality. The customers get by Kia cars through its dealers only.The

commercial vehicle segment are also reached through dealers itself.

Kia Motors Promotion & Advertising Strategy:

The promotional and advertising strategy in the Kia Motors marketing strategy is as follows:

Kia Motors has a strong advertising and marketing policy. Kia has gained recently

recognition because of its association with various major sports events happening around the

globe in its marketing mix promotional strategy. Kia Motors had sponsored Australian Open

along with other events. It also sponsors major football events such as the FIFA and UEFA cup

also basketball events of NBA and Women’s NBA. Kia Motors uses TV, print, online ads,

billboards etc for its marketing. It also has also tied up with various sports teams and athletes for

gaining recognition. Kia Motors also has tied up with celebrities to again tell its story of

resurgence. It also showcases quality, design and safety features in various motor shows which

wins it laurels which faith for the customer and gains brand reputation. It also promotes itself on

various online platforms with the ‘Share #Kia’ campaign. Kia also participates in various CSR

activities to show its global concern for environment and society. Kia has tied up with various

NGOs, governments, local communities and employee volunteering to support its stakeholders.

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It has tried to help by donating vehicles for the handicapped and supporting college students.

Hence, this covers the marketing mix of Kia Motors.

About Kia Motors:

Kia Motors is an Asian automobile manufacturer company based in Seoul, South Korea.

It originated in 1944 as Kyungsung Precision Industry, a bicycle manufacturing company. It was

renamed to Kia Industries in 1952. It launched its first car, Brisa in 1974. Kia Motors has been

through various ups and downs because of various local factors and the big Asian Financial

where it had declared its bankruptcy. It then hit a deal with Hyundai Motors where mutual

ownership was agreed upon. Currently Hyundai Motors owns almost 34% of Kia Motors and in

return Kia also holds minor holdings in many Hyundai subsidiaries. It has made its presence in

172 countries worldwide. It is currently valued at $6.3 Billion and is ranked 69th in Interbrand

Best Global Brands 2016.

Kia Motors has won time again various awards in consumer satisfaction, design and lifestyle

segments. It also achieved high safety ratings for various segments too.

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 CHAPTHER – V

(A) MISSION AND VISION OF TATA

MISSION

Organizations relate their existence to satisfying a particular need of the society. They do

this in terms of their mission. Mission is a statement, which defines the role that an organization

plays in a society. It refers to the particular needs of that society, for instance, its information

needs. A book publisher and a magazine editor are both engaged in satisfying the information

needs of society but they do it through different means. A book publisher may aim at producing

excellent reading material while a magazine editor may strive to present news analysis in a

balanced and unbiased manner. Both have different objectives but an identical mission.

A mission was earlier considered as the scope of the business activities a firm pursues.

The definition of mission has gradually expanded to represent a concept that embodies the

purpose behind the existence of an organization. Thompson (1997) defines mission as the

“essential purpose of the organization, concerning particularly why it is in existence, the nature

of the businesses it is in, and the customers it seeks to serve and satisfy” Hunger and Wheelen

(1999) say that mission is the “purpose or reason for the organization’s existence”.

Now there is not much difference of opinion about the definition of mission. Yet, you

finds instances of organizations confusing mission with vision or objectives. In strategic

management literature, mission occupies a definite place as a part of strategic intent.

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VISION

While the essence of vision is a forward looking view of what an organization wishes to

become, mission is what an organization is and why it exists.

Several years ago Peter F Drucker raised important philosophical questions related to

business: What is our business? What will it be? And what should it be? These three questions,

though simply worded, are in reality the most fundamental questions that any organization can

put to itself. The answers are based on the analysis of the underlying needs of the society that

any organization serves to fulfill. The satisfaction of that need is, then, the business of the

organization.

33
(B) MISSION AND VISION OF KIA

MISSION

Our customers include Acura, Audi, Bentley, BMW, Chrysler, GM, Honda, Hyundai,

Kia, Mercedes-Benz, MINI, Mitsubishi, Porsche, TESLA, Toyota and Volkswagen, and our

participation in the global markets requires us Ford Motor Company’s objectives span a number

of areas, including sales, research and innovation, sustainability and safety. In 1951, it was

named “Kia industries”. 5. should be in, or wants to be in, and what it wants to do with those

businesses. 2. 3.1 Kia Motor Corporation (KMC) Kia Motor Corporation the oldest Korean

automobile manufacturer whose headquarters are based in South Korea was founded in 1944 as

Hyungsung Precision Industry, a manufacturer of bicycle parts and steel tubing. number of

projects: 9 the overall amount of support: eur 1,033,925 These business strategies, based on Kia

Motors marketing mix, help the brand succeed. For our consumers. We want to have a positive

impact on the world – from the communities where we source our raw materials to the way our

products help our customers live a more sustainable life at home. Convergence: Lead the

industry with an ecosystem of devices, services, applications and content … Ford is a family

company, one that spans the globe and has shared ideals.

Kia Motors Corporation has announced today details of ‘Plan S’, its mid- to long-term

strategy aimed at progressively establishing a leadership position in the future automotive

industry, encompassing electrification and mobility services, as well as connectivity and

autonomy. 1. In 2021, General Motors provided $86.7 million cash and in-kind donations to

nonprofits working to help create inclusive solutions to social issues around the world. Our

mission at Publix is to be the premier quality food retailer in the world. SWOT analysis – Here is

34
the SWOT analysis of Hyundai Motors. Nissan’s Corporate Purpose, Mission & DNA: Nissan

introduces its corporate purpose, mission, and DNA of driving innovation to enrich people’s

lives. Customer first: Customers take precedence over all else, always. ... As Kia’s experience

illustrates, international business is a huge segment of the world’s economic activity.

The mission statement of Kia Motors is also inspirational in that it develops the need for

growth and progress in individuals – for the betterment of not only the company but also for …

Charge your future. 2. Hyundai and Genesis are proud of our parent organization’s growth and

development through hard work, sacrifice, strong planning, and a focus on long-term objectives.

Open Document. Product and services: It has a total of 22 models of cars out of which 7 are

SUVs’ and MUVs’, 3 are economical and 1 is commercial car. Sister brand Hyundai Motor

Company has a comparable, yet distinct forward-looking mission that is also shared by their

mutual parent, Hyundai Motor Group. ... corporate goliaths such as General Motors (GM), Coca-

Cola, and Microsoft conduct a great volume of business overseas. This mission is essential for

the marketing strategy of Kia Motors as it focuses on all operations and marketing activities in

the direction of: Consumer centrism. Our Mission Statement.

VISION

Kia MotorsKia SoulVision Statement:Kia Motors vision is to blend cultures to become

the best and most innovative automotive company in theworld by ensuring customer first and

mutual prosperity of people . They believe they can achieve their visionby creating the best in

everything they do every day .

35
 CHAPTER – VI
(A) SWOT ANALYSIS OF TATA

Strengths

 Large and diversified product portfolio: Tata’s product portfolio is broad and well-

diversified. The well-diversified automobile portfolio helps in stabilizing revenues and

earnings. This stability strengthens investor confidence in Tata Motors.

 Brand Awareness: TATA is a well-known brand in the home country and neighbouring

countries like Bangladesh, Pakistan, Nepal etc.

 Stable Revenue: revenue has stabilized. Tata has a strong method of corporate

governance. Tata Motors acquires companies that are similar in their management

structure. They follow this policy only because they have confidence in their management

policy objectives.

 Large employee base: the company employs a large number of people. More than 82,797

workers are working in Tata Motors.

 Hiring policy for local managers: the past internationalization policy was to retain local

managers in new acquisitions and transplant only a few senior managers from India to the

new industry. In this way, Tata is able to exchange technical expertise

 Good strategy: good strategy is the key to success and is necessary for the expansion of

the company. Tata Motors not only focuses on acquisitions and new products but also has

an efficient management development system to produce leaders and loyal employees.

 Alliances: since 2006, Tata Motors has entered into an alliance with Fiat for mass

production. This has improved the product portfolio of Tata and Fiat in terms of

development and information sharing.

36
  Premium Segment: Premium automotive brands Land Rover and Jaguar are owned by

Tata Motors.

 Global strategy: To retain local managers for new acquisitions and just transplant a few

senior managers from India to the new market. This has the advantage that Tata could share

expertise. For example, after the Daewoo acquisition, the Indian company learned how to

be disciplined and how to get the end product right the first time.

Weaknesses 

 Global presence: the global car market is growing at a rapid pace. If it is confined to a

particular area, it is a strong barrier to growth as other international companies can enter

the same sector. Tata has been silent in gaining global market share. So far, the company

has not penetrated into other foreign markets.

 Ineffective marketing strategy: the strength of a company lies in a sound marketing

strategy. This way, a company can know the requirements of its customers and

manufacture the products accordingly. This also helps in connecting with the customers

and educating them about the value they have to offer. TATA lacks a clear marketing

strategy to promote its business globally.

 Limited presence in the domestic market: Tata has not marked its presence in too many

countries. Tata Motors needs to try and tap into international markets.

 Use of old technologies: The company’s passenger car products are based on old platforms

which are the biggest disadvantage for Tata Motors in competing with its rivals among car

manufacturers.

 Indifferent to change: The automobile industry is a highly competitive market. Every

company remains competitive in this industry because most of the automobile companies

37
 are very old and experienced in this business. They sell a modern model and cars that are

technically up to date. But in this case, Tata Motors are indifferent. Its big base model is

old.

 Unable to gain a foothold: Tata has no foothold for luxury cars in the Indian market. The

brand is known for commercial vehicles and affordable passenger cars.

 Nano is the cheapest car in the world:  The launch of the Nano car was one of the biggest

failures of Tata Motors. This is because they failed to maintain the quality and price.

Opportunities

 Strategic positioning: to create a positive brand identity, a company must have a clear

marketing strategy. It can also enable building a good customer base in India and around

the world. To reach new markets and position itself, TATA Motors must have aggressive

marketing and advertising strategy.

 Mergers and Acquisitions: Mergers and acquisitions are a common tradition in the

automotive industry. As one of the oldest companies in India, Tata has a long history of

success. As the company grew larger, it acquired the ability to make acquisitions. The

company also has a proven management policy that can help in managing newly acquired

companies.

 Growing purchasing power of Indians: the sales of a product largely depend on the price

of the products. If the cost is fair, a company can easily produce new cars that are

technically advanced and meet the sales target. As Indians are earning more than before,

they have more purchasing power.

 Expanding the car market: modernizing the world. The citizens are relying heavily on

transportation facilities. This will boost the sales of automobiles. Since Tata still has the

38
 potential to enter another international market, the company has a great opportunity to

grow.

Threats

 Fuel Price: Fuel prices affect vehicle sales not only in India but also globally. The price of

fuel and car sales are directly linked. So if the price of the product goes up, the sales will

go down. This is the biggest threat for an automobile manufacturer like TATA Motors.

 Government environmental laws: many countries are developing laws on carbon

emissions. If India introduces this type of law, TATA may have to produce more carbon-

efficient cars, which will require additional investment.

 Industry pressure: There is so much competition in the auto industry. These companies

are also selling redesigned cars that are fuel-efficient, updated models, technology and eco-

friendly.

 The rising cost of production: competition has increased in this new age. As a result, the

cost of production is higher than before as the company has to be more competitive and

offer innovative products.

 Environmental policies: Conservation and environmental protection could require

additional costs. This could affect the competitive advantage that the company is based on.

Of course, this problem will reduce as Tata globalizes and acquires new brands.

 Luxury segment competition: Tata Motors is lagging behind in the luxury car segment.

Tata Motors needs to launch new luxury cars with good and competitive technical features.

The players in the luxury car market are giving tough competition to Tata Motors. Luxury

carmakers like Ford, Toyota, Kia, etc. will be the main competitors of Tata Motors.

39
(B) SWOT ANALYSIS OF KIA

Strengths in The SWOT analysis of Kia Motors

Strengths are defined as what each business does best in its gamut of operations which can give

it an upper hand over its competitors. The following are the strengths of Kia Motors:

 Product Portfolio: Kia Motors has a wide p[roduct portfolio with multiple offers in

categories like sedans, coupes, sports cars, passenger cars, SUV’s and crossovers. Some of

their brands are Optima, Forte, Sedona, Cadenza, Sorento, and Niro.

 Brand value: Kia is a valued brand across the world with an estimated value of 6.7 billion

USD which is up by 6.7 % from the previous years. The brands from the company have

also been consistently included in the top 50 brands of the world.

 Positioning: Kia positions their cars as vehicles that can provide driving experiences that

surpass customer expectations.Their cars are also superior in terms of styling

and performance.

 Hybrid cars: Kia Motors have introduced the hybrid version of their variants Cadenza

and Optima both popular brands globally. They are characterized by regenerative braking

systems and EV drive mode.

 Innovation: Kia Motors has not just been innovative in design and styling of their cars but

have also been involved in a lot of research on alternate energy vehicle options such as

hybrid cars, hydrogen cell powered cars, electric cars, and plug-in hybrids.

40
Weaknesses in The SWOT analysis of Kia Motors

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some

of the key weaknesses of Kia Motors are:

 Poor reach: In comparison to competition Kia Motors has not been able to reach out to a

wider audience and has restricted itself to smaller and niche markets.

 Brand Identity: Though a well-known brand in its home market, Kia Motors has been

struggling to build a brand identity or a positive image for itself in Europe and USA and

has been largely unsuccessful in doing that.

 A shift of focus: Kia which was primarily focusing on fleet sales earlier have attributed

their dip in revenues to the decrease in demand for fleet vehicles and decided to reinvent

themselves as a retail car brand. This may not be a right strategy.

 Poor advertisements: The company has been looking primarily at sponsorships of

Formula 1 and other sporting events and ends up spending most of their promotional

budget there with the result that they are almost invisible in the retail market.

Opportunities in The SWOT analysis of Kia Motors

Opportunities refer to those avenues in the environment that surrounds the business on which it

can capitalize to increase its returns. Some of the opportunities include:

 Market potential: Research indicates that emerging markets are going to be huge future

sources of revenue for automakers. Markets like China and India are going to give more

demand than the USA or Europe.

41
  Improved infrastructure: There has been a focused effort by governments of emerging

economies to improve the condition of the road and to enhance road safety. There has also

been an improvement in intercity connectivity through highways which in turn improves

long distance driving prospects as well.

 Change of trends: The growing number of dual-income households, the increase in urban

migration, more women drivers on the road etc will all create a positive impact on car

sales.

 Green cars: Kia Motors has invested a lot of money into research in alternate energy

vehicle options a cause that is being pioneered by a lot of governments and environmental

activists. These efforts will see fruit in the near future as the demand for hybrid, green and

environment-friendly cars pick up. This is an opportunity for the company.

Threats in The SWOT analysis of Kia Motors

Threats are those factors in the environment which can be detrimental to the growth of the

business. Some of the threats include:

 Competition: There is high competition in the automakers market. The main rivals of the

company are Toyota, Honda, and Nissan.

 Regulatory framework: With concerns like global warming and depletion of fossil

fuels, the regulatory framework for the automobile is likely to be made stricter and there

may be a stringent control on quality and environmental compliance. This may create an

additional cost for automakers.

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 CONCLUSION

ConclusionThe global growth for Tata Group became feasible as the acquisition took

place throughbetter ethical leadership, the need to access new markets, the opportunity cost and

thegrowth, need for the quality of the product thereby creating a brand name to integrate thevalue

chain of ethics and social responsibility towards its stakeholders and thecommunity itself. Tata

Group has followed the ethics and no corporation issues regardingthe finances and accounts has

come out so far as they have not given any chances toexploit or cook the books, a benchmark

created by the Tata Group. Tata Group has shown

KIA Motors is the world's fifth-largest car manufacturer, creating technologically

advanced automobiles that are highly rated for passenger safety, with numerous models

classified as leaders in their class on the JD Powers Index.

KIA Motors began in December 1944 as Kyungsung Precision Industry. KIA Industries

was eventually adopted as the company's name. KIA Motors is based in Seoul, South Korea, and

is the country's second-biggest automaker. KIA Motors owns nearly a dozen Hyundai companies

for a total of USD 8.3 billion.

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 BIOLIOGARPHY

 www.tata.com

 www.kia.com

 www.wikipedia.com

 www.marketing91.com

 www.gambassa.com

 www.slideshare.com

 www.thinkwithniche.com

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