tata motors company analysis

PAGE 9 5. This is a huge opportunity for Tata Motors because if they can get their feet into that market of people that do not have cars because they cannot afford them, then they will make large profits down the road. A full timeline of Tata Motors Limited is supplied in Appendix A. The company that Tata Motors purchases will look exactly the same in terms of management and organizational structure as if it was never purchased by Tata Motors. Another core competency that Tata Motors holds is being located in the India. Tata Motors excels when it comes to innovation through intensive research and development. TATA MOTORS operates under Auto Manufacturers classification in India and is traded on Bombay Stock Exchange. Tata-owned Jaguar Land Rover (JLR) has reported a profit for the three months ended 30 September 2020 (the company's Fiscal Q2). TATA MOTORS Income Statement Analysis. About Tata Motors : Tata Motors is a leading automotive multinational manufacturing company headquartered at Mumbai, India. Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Tata Motors has already opened the doors for many new and innovative ideas, but not only for their company, but their competitors as well which could turn into a threat. In the UK Tata Motors is one of the leading green-technology automotive companies. Another weakness that Tata Motors faces is within its domestic market. Clipping is a handy way to collect important slides you want to go back to later. China’s total car sales are estimated at over 8 million dollars annually and they were the world’s second largest car market in 2006. One weakness that Tata Motors faces is its inability to meet safety standards. The Society of Indian Automobile Manufacturers stated, “India, where some 1.4 million new cars are sold each year, is also a hugely attractive market for dozens of car companies and most of them can’t risk ignoring what appears to now be a potent competitive advantage for Tata Motors. This car is very futuristic and is still in the development stages: “Nonetheless, Tata and Moteur Development International are confident that OneCAT, which can accommodate three adult passengers, is competent enough to go against potential green car rivals and energy efficient autos such as the hybrid, bio-fuels, and electric vehicles. In fact, the Pakistan’s Transmission Motor company has built a basic four-wheeler for only $2,100. They are beginning to employ a similar technique as they now expand into the passenger car business. This demand for smaller cars is a great window of opportunity for Tata Motors because not only are their cars small, but they are cheap and environmentally friendly as well. This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future. Tata has committed to ensuring quality and ethical standards not only within Tata Motors, but throughout their many other branches and sectors of the Tata Group. Thereby, indicating reduced efficiency. Laws governing commerce, trade, growth, and investment are dependent on the local government as well as how successful local markets and economies will be due to regional, national and local influence. It operates in India, China, the United States, the United Kingdom, rest of Europe, and internationally. It will revolutionize the auto industry in India and soon in other emerging markets when Tata starts exporting. This concept car is a fiberglass vehicle that virtually powered by air and is emission free. These awards are called the JRD quality value awards named after the late chairmen JRD Tata. One way that Tata Motors has done this is by producing one of the most efficient and low cost vehicles on the market. Annual Report Analysis of Tata Motors âTata Motors is an automobile manufacturer providing mobility solutions to over 175 countries. This location has been and will continue to be vital to Tata’s success. This includes every stakeholder from the CEO and President, down to the line workers who screw the door panel into place, from the investor to the customer, the culture and attitude of all these people will ultimately determine the future of a company and whether they will be profitable or not. From the above graph we can infer that the company hit the 52-week high of Rs. If you continue browsing the site, you agree to the use of cookies on this website. The knowledge transfer from these two companies will greatly improve Tata Motors ability to continue to grow and flourish in both developing and developed market segments. Having just entered the passenger vehicles market segment in 1991, Tata Motors now ranks second in India’s passenger vehicle market. Italians have a higher average income per capita than Indians and Italian citizens tend to drive larger and fancier cars. The launch was done at the Geneva motor show. Currency fluctuations can equate to higher or lower demands for Tata vehicles which in turn affect profitability. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Looks like youâve clipped this slide to already. Tata Motors is in collaboration with Fiat and Ford. For instance, the purchase of Jaguar and Land Rover allows Tata to enter into the luxury car market without having to research the market, build the technology, among other important aspects of getting into a new market segment. Industry analysts also struggled to see what value Tata could add that had eluded Ford, and what synergies there could be between a maker of trucks and basic carsÃ¢â¬Â¦ and two luxury marques.” (Economist). These acquisitions and mergers allow Tata Motors to break into foreign markets and develop a much larger share of the automotive industry. In March 2004, Tata Motors acquired 100 percent of the Korean based Daewoo Commercial Vehicle Company, Korea’s second largest truck maker, for 102 million dollars. Check out why Tata Motors share price is up today. SWOT Analysis – Tata Motors Limited. Or analyse: Avanti Feeds Godawari Power Rossell India NGL Fine Chem Marksans Pharma Alembic Pharma Lincoln Pharma Poly Medicure Shivalik Bimetal Vikram Thermo RACL Geartech Sandur Manganese. Tata recognizes this and dedicates lots of resources and time into research and development to be even with or preferably ahead of other competitors, global trends, and changing economies. Tata Motors Porter’s five forces Analysis The five forces were identified by Michael Porter of Harvard University. 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. The mainstream of revenue for Auto Sector is their sales, Tata Motors has reported poor sales growth of - 36.5225173100032 % and in the latest quarter sales was Rs 14630 .6 Cr. “The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D” (Tata). Published: 1st Jan 1970 in The company's operating profit decreased by 21.6% YoY during the fiscal. This acquisition gave Tata Motors a significant presence in the Korean market. Financial Ratios Analysis of Tata Motors Ltd. - The Key ratio of Tata Motors Ltd. Company, including debt equity ratio, turnover ratio etc. Tata Motors is innovative through intensive research and development activities. Tata has higher bargaining power with suppliers because it is a local, not foreign, car manufacturer. Company Registration No: 4964706. This is a huge threat to Tata Motors because at first they had low competition, but once other car manufactures find out how they invented such a low cost car, and then these companies too will jump on board and design their own line of low cost automobiles. 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. In 2004, they acquired Daewoo commercial vehicle Company in South Korea which was South Korea’s second largest truck manufacturer. “Tata Group’s corporate governance is founded upon a rich legacy of fair, ethical, and transparent governance practices” (tatacarsworldwide.com). Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s current models as well as introducing a few new models globally just as it had been done under Korean management. It was the first Indian automobile company to list on the New York Stock Exchange. The Research Center at Jamshedpur and the Engineering Research Center in Pune are among the finest in the country (Tata.com). Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will affect how well a company performs. This growth is mainly on the back of new top performing utility vehicles like Nexon and … Another Value Chain Analysis Example is using the value chain information to make modest advertising budget that can reduce marketing costs and offer the product at an affordable cost. The founder and chairman of TATA are Ratan Tata, and the headquarters is in Mumbai, India. A spokesman for Moteur Development International, a company that partnered in the development of this car said, “The engine is efficient, cost-effective, scalable, and capable of other applications like power generation,” (Autopartswarehouse.blog.com) This car is truly a representation of the next step in green automobiles. This location has allowed them to understand not only the Indian market but also the dynamics of emerging and developing markets. Additionally, the India government has made protectionist polices and regulations that are extremely favorable to Tata. They have also entered into joint ventures with companies such as Thonburi Automotive in 2006, which allowed them to manufacture and market pickup trucks in Thailand. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. A specific charity was formerly known as Tata Engineering and Locomotive company Limited and its. 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