Operations & Supply Chain Management

Facilitated By Prof V.Seshadri

Group Project Interim Report

Submitted by Group 1(DIV A)

Venkata Akhil Anumalasetty(A009)
Vummadi Shankar Reddy (A011)
Vineet S (A019)
Smridhi Arya (A047)
Nikita Gupta (A062)
Contents

Overview ……………………………………………………………………….03

Introduction ………………………………………………………………………. 04

Product Portfolio ……………………………………………………………………….05

Production Strategy ……………………………………………………………………….06

Location Selection ……………………………………………………………………….06

Production Product Selection……………………………………………………………………08

Quality Management ……………………………………………………………………….10

Environment Management...…………………………………………………………………….11

Work Measurement ……………………………………………………………………….11

Value Engineering ……………………………………………………………………….12

Material Management ……………………………………………………………………….12

Tata Nano Failure ……………………………………………………………………….12

Tata Motors - JLR ……………………………………………………………………….14

Challenges ……………………………………………………………………….14

Future Scope ……………………………………………………………………….16

References ……………………………………………………………………….18

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Overview:

Tata Motors, one of the biggest automobile manufacturers started in India and spread its presence
in multiple countries. The report is intended to study Tata motors operations and supply chain
strategy in detail. As a part of the report, the Production portfolio of Tata Motors is discussed
mentioning its products. A product overview is explained taking the Production strategy of the
company, Location selection parameters that Tata motors followed and their production plants
and process selection is discussed in detail to understand what all processes Tata motors undergo
while producing a vehicle. Along with this, important events of Tata Motors like failure of Tata
Nano and Acquisition of JLR by Tata motors and consequences is discussed in detail analysing
parameters that caused the events followed during that period. Challenges posed by various
factors which tata motors need to solve to sustain as a company is also discussed. Possible areas
into which Tata Motors may venture in the future is also discussed.

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Introduction
India’s manufacturing sector contributes to 17.4% of GDP in 2020 and it has grown at 7% in the
last decade. The automobile industry is one of the major contributors to the manufacturing sector
contributing 22% of manufacturing GDP. Established in 1945, Tata Motors towers over the
industry with a net worth of $35 Billion. The product line of the company is immensely diverse,
comprising a wide range of cars, sports utility vehicles, buses, and trucks. Today, Tata Motors is
one of India’s largest original equipment manufacturers (OEMs) that offer an extensive plethora
of commercial, smart, and E-mobility solutions. Effective operations and supply chain
management of Tata motors helped it to grow throughout the years.

The manufacturing plants of the company are spread across different parts of India. They have
also established a dense distribution network to reach customer demand. The focus of the
company on interfacing goals and its pipeline of tech-enabled products keeps it at the forefront
of the market. Six drivers have been recognized to thrust the company forward – modular
design, complexity decrease in fabricating, associated & independent vehicles, clean drivelines,
shared mobility, and low total cost of ownership. The sub-brand TAMO is an incubating center
of advancement that will start new mobility solutions through modern technologies, trade
models, and partnerships. The mission across their universally scattered organization is to be
enthusiastic in expecting and providing the finest vehicles and experiences that energize their
worldwide customers.

To keep the company at par with the new developments in technology, Tata Motors is entering
into the electric vehicle (EV) segment for which it has to realign the manufacturing lines and the
supply chain agreements. The report will attempt to analyze the past decisions to provide future
recommendations to reduce the costs.

Aim
The aim of the project is to understand and analyse the role of Operations & Supply Chain
Management at Tata Motors and to study the issues related to the same.

Objectives
● To analyze and understand the manufacturing and distribution process
● To observe and comprehend the various operational strategies utilized in the company
● To understand the role of technology in the operational process in the company
● To elaborate the role played by supply chain management in ensuring the viability of the
business
● To analyze and identify the gaps in the operations & supply chain and provide
suggestions to improve efficiency

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Product Portfolio
The diverse product portfolio of the company consists of commercial vehicles comprising sub
1-tonne to 49-tonne mass movers, and passenger transporters that range from 5-seater mini vans
to 81-seater buses and passenger vehicles comprising compact cars, mid-sized sedans, SUVs,
utility vehicles, hatchbacks and crossover cars.

All these vehicles are powered by efficient systems that feature high quality design and are
produced to meet the versatile demands of the market. It offers reduced Total Cost of Ownership
(TCO) to all users fleet operators, mid-size transport operators and small transport operators and
small transporters, with higher-than-before vehicle performance through value improved
features, regular service intervals and efficiency. With different models to address each segment
M&HCV, I&LCV, SCV & PU, as well as passenger commercial vehicles, Tata Motors has a
wide array of vehicles to choose from.

The 6 value propositions, which guided the design and development of this range institute
significant advances across the key areas relevant for each segment; like lower TCO, improved
potential, increased comfort, connectivity and performance, among other attributes. Tata Motors
has upgraded every vehicle from front to back , while also introducing internal and performance
upgrades that generate higher revenue and profits through higher fluid efficiency, excellent
driving comfort and world-class connectivity features. Some of these key features include higher
power output, superior gear shifts, multiple driving modes, improved ergonomics and
crash-tested cabins for the security of the driving force .

Apart from the commercial and passenger vehicles, Tata has also entered the market of electric
vehicles. Tata Motors has unveiled electric versions of the Tata Indica coach powered by TM4
electric motors and inverters, as well because the Tata Ace commercial vehicle, both of which
run on lithium batteries.In September 2010, Tata Motors presented four CNG–Electric Hybrid
low-floored Starbuse. These were the primary environmentally friendly buses to be used for
public transportation in India.In December 2019, Tata Motors unveiled the Nexon EV, an SUV
with a 30.2KWh lithium-ion battery and a uniform range of 312 km on one charge.

Prominent Products include

Passenger Cars: Tiago, Altroz, Tigor

Sports Utility Vehicles : Safari, Harrier Nexon
Commercial Vehicles : Ace, Pickup, 407

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Production Strategy
Commercial vehicles segment has seen the largest chunk of sales and the company has
formulated the restructuring strategy. In times of industry transition to the latest developments
fine tuning of production strategy gained importance. Automobile regulations keep becoming
more stringent with government norms. As BS-6 is in place, operating economics of
manufacturing is significant. Tata Motors observes movement towards higher payload in small
CV and M&HCV. It meant gaps are being identified and filled across all segments. Stats are
indicating the increasing commercial sales and de-growing passenger vehicle sales. Passenger
vehicles are de-growing due to lack of demand for tata models and reduced expenditure of
governments in buying public transport buses. To address this, new models are being introduced
in the market. Tata motors also decided to concentrate on planning to produce electric vehicles.

The Car Division piece executes the whole process of car manufacture over five shops - the
engine shop, the transmission shop, press and body shops, paint shop and the trim and last
gathering shop. The shops are fully mechanized guaranteeing that there's negligible chances for
blunder within the fabricating processes. Production Methodology being executed in Tata Motors
is ‘Make to Stock'. Demand forecast is done by the marketing team and based on this forecast a
generation plan is ready and after that the production is done in understanding with this
production plan. Tata Engines Passenger Cars unit does not have warehouses in all the cities. The
cars produced are tested completely and after fruitful completion of the testing are put away in
expansive free space available within the company premises. From here these cars are dispatched
to the authorized merchants as per their order. Some special purpose vehicles such as utility
vehicles for defense, mini-ambulance for clinics are made as per the order

Location Selection
Location choice decisions made presently will have a sensational impact on a company’s
long-term viability. The financial landscape of today is much more distinctive than 10 years ago,
and it’s likely the financial landscape in 10 years will alter significantly from what it is
nowadays. Companies with the finest data and processes, with respect to the location of a new
facility, will position themselves for victory down the road. Usually vital for all businesses, but
particularly transitional ones just like the automotive sector.

Advanced fabricating has evolved incredibly over the last decade, and alongside it has come a
high demand for talented specialists. This challenge heightens when a car producer is looking for
the finest area for a new, extended, or migrated operation. Companies ought to not only
distinguish planned destinations, but also carefully analyze their appropriateness for their
particular needs. From the point of view of the overall real estate market, counting brownfield
redevelopment and greenfield location advancement; transportation framework; vulnerability to
natural calamities; proximity to competitors and sellers; labor advertise conditions; and

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economic impact studies; sites must be inspected for their current esteem and future impact to
the company’s operations.
Successful location select typically includes:
● Data on workforce expertise levels and labor costs
● Real estate costs
● Available financial improvement incentives
● Demographic statistics
● Cost of living
● Utility rates, accessibility, and redundancy
● Tax rates
● Individual Infrastructure availability
● Transportation alternatives and access to interstates, rail lines, and airports
● Regulatory environment
Jamshedpur plant:
Jamshedpur plant was vertically integrated with engine manufacturing and foundry and casting
of the body parts of the vehicles. One of the major factors that should be considered is the
accessibility to iron ore and aluminium ore and the availability of the cheap labour, land and
electricity.

Jamshedpur was located in Jharkhand and is surrounded by the large iron ores in West Bengal,
Dhanbad and Orissa. There are power projects in the Jamshedpur which supply power to the
plant and the Jharkhand was one of the back warded states in India and have cheap land and
labour. Apart from the raw materials, Tata motors majorly produced commercial vehicles in the
Jamshedpur plant which are used in the mining and transportation. This made the location best
for Tata Motors.

Sanand plant:
The Sanand plant was started in 2012 to produce the small car, Tata Nano. Sanand was located in
Gujarat which is very well connected to the other parts of the country by road. Government has
incentivised the plant with a soft loan of 9,500 crore investment and a reduced power tariff and
exemption from electricity duty, among others. Gujarat has a large number of MSMEs in the
state which are located in vendor parks and access to labour.

One of the major disadvantages of this plant is nearness to the customers. Major markets for
Nano are West Bengal, Karnataka, Maharashtra and Uttar Pradesh. This increases the complexity
of the supply chain and increases the costs.

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Production and Process Selection
Jamshedpur plant:
It is one of the oldest manufacturing plants in India that was established in 1945. It produces
more than 200 models of vehicles and rolls out a vehicle every 5 minutes. One of the major
advantages of Jamshedpur plant is its in-house foundry which casts all the critical parts needed in
the production process and is highly automated.

Tata motors implemented repetitive process selection in the Jamshedpur plant as it was required
to produce more than 200 models and needed out in high volumes. It has implemented a
robotized body shop which redJamshedpur plant:
It is one of the oldest manufacturing plants in India. It produces more than 200 models of
vehicles and rolls out a vehicle every 5 minutes. One of the major advantages of Jamshedpur
plant is its in-house foundry which casts all the critical parts needed in the production process
and is highly automated.

Tata motors implemented repetitive process selection in the Jamshedpur plant as it was required
to produce more than 200 models and needed out in high volumes. It has implemented a
robotized body shop which reduces the roll out time. It aimed to create a sustainable plant by
decreasing the power and water utilized per vehicle over the past 1 decade. It established and
standardised the quality assurance at every level to minimize the defective end products. Plant
also established quality operations by ensuring sustenance of product consistency and controls
quality before the product leaves the plant. Focus on the logistics and customer quality by
delivering the fresh vehicle delivery to the customer and resolving their issues efficiently.
Tata motors has taken initiatives to improve the supply chain and customer experience. Some of
them are
• DRONA: Initiative to provide rich training on product and soft skills of sales, on the job
training
• LEAP: focusing on educating the dealers

Sanand plant:
Sanand plant is the newest plant of Tata Motors and it contributes to 60% of the PV vehicles
produced by Tata Motors. It evolved from a single model plant producing Tata Nano to multi
model plant producing 21 variants with 150 vehicle combinations. It is highly mechanised and
has incorporated lean process management. Process selection in the plant is a flexible assembly
line and produces 400 vehicles per day. To decrease the lead time, the plant contains an
integrated vendor park in the plant location itself and also has a dedicated EV manufacturing
facility. Plant is designed to produce Alfa products i.e smaller cars up to 4 meters. It’s a modern
and sustainable plant with 30-40% of energy used is clean energy.

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Pune Plant:
Pune plant produces both commercial and passenger vehicles. It was established in 1966 and it
has a production engineering division. It is a highly vertically integrated plant as regards to core
processes such as engines, gear box, paint shop, etc. There are six assembly lines that produce a
large range of products from HMCV, ILCV and PV etc. Production of SUV’s will take place in
Pune plant.

Lucknow Plant:
This was constructed in 1992 to particularly meet the demands of the Indian commercial market.
Plant is specialized in designing and manufacturing modern buses. It has a combination of a job
shop and assembly process of production. This facility includes weld shops, paint shop, Axel
shop and assembly lines. Lines are automated. This facility has a vehicle factory with trucks and
bus chassis and an integral bus factory for assembling module buses. It is on track to become
100% renewable energy sourcing for its energy requirements by 2030.

Pantnagar plant:
It started its operations in 2007. It manufactures Intra truck, 1-tonne mini-truck and Tata Ace
series, the small commercial vehicle. It has an integrated vendor park spanning over 337 acres.
This helps the company to lower its inventory costs by ensuring JIT supplies. 70% of the
supplies come from the vendors present in the vendor park. It is a gold rated green building for
its energy efficiency and reduced consumption. Facility includes Weld shops, Paint shops,
Engine and Gearbox shops, Assembly lines and has a capacity of 1440 vehicles per day.

Dharwad plant:
The latest plant of Tata Motors opened in 2012. It is one of the One of the first automobile plants
in the country to obtain Platinum Rating by the Indian Green Building Council. Dharwad plant
has a state of art manufacturing facilities to cater SCV, LCV & M&HCV models and
manufacturing line details are as below

SCV (Ace Zip) - BIW, Paint shop, Manufacturing line of frame, TA & assembly shops.
ILCV/LCV assembly shop - Flexible manufacturing line
M&HCV assembly shop - Flexible manufacturing line
EV Buses - Manufactured on M&HCV lines and ILCV

These assembly lines have implemented several lean manufacturing processes that help ensure
quality and product reliability.

• Various fool-proof (Poka-yoke) mechanisms have been established to ensure DIFTR (Do
It First Time Right) concept in production.

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• FIFO (First-In-First-Out) is assured through process design while manufacturing,
vehicle dispatch stages and proper inventory management
• WCQ (World Class Quality) Quality gates have been established at different stages to
ensure products are without defects when they leave the plant
• Ergonomics is ensured by scientific assessment of work using a global standard motion
study technique called MOST (Maynard Operations Sequence Technique).

Analysis
Tata motors divided its production among the plants based on type of vehicle. Most of the High
and medium CV production happens in Jamshedpur plant which also has engine manufacturing
and other body parts required for manufacturing which decreases the inventory cost and also
produces the critical parts required for the production which will reduce the risk of disruption. It
has flexible assembly lines and job shops which helps them produce more than 200 models of
vehicles. This plant can also create an ecosystem of vendors around the plant as other plants do.
This ensures JIT supply of raw materials required for production.

Almost 50% of the CV vehicles Tata motors sells are sub 1 tonne. These CV vehicles are majorly
produced at Pantnagar plant. Having more than 70% of vendors within the plant helps it reduce
inventory costs and higher quality assurance. Highly automated assembly line helps in increasing
the production as this plant majorly produces single product. Dharwad plant was established in
2012 to supplement the production of SCV vehicles, majorly Tata Ace and Tata IRIS PV.

Sanand plant majorly produces the low segment PV vehicles which are less than 4 meters.
Sanand plant is again highly automated assembly lines and runs at 100% utilisation. Tata motors
2.0, which focuses on the PV will be supported by this plant. This is a world class and
sustainable plant. It has in house vendor park and implements lean process management, which
helps in higher quality and higher production.

Pune plant focuses on both commercial vehicles and passenger vehicles. There are 6 lines of CV
and 2 PV lines. Most of its high end PV’s are produced in the pune plant. It has engine
manufacturing within the plant. This is a highly vertically integrated plant which reduces the
disruption in the production process and more control of critical paths.

Busses are completely produced in the Lucknow plant in a JV agreement and its majorly
assembling the buses.

Quality Management
Tata Motors takes special effort in producing cleaner cars. They hold the distinction of being the
first company to introduce vehicles with Euro I and Euro II norms in the country.Tata Motors is
committed to maximizing client fulfillment and endeavors to attain the objective of greatness, by

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nonstop advancement, through continuous going design and improvement, fabricate and sale of
solid, secure, cost-effective, quality items and administrations of international standards, utilizing
ecologically maintainable innovations, for progressing levels of effectiveness and efficiency
inside its premises and ancillaries.

The plant in Pune has received ISO 9001:2000 certificate from Bureau Veritas Quality
International-BVQI in July 2003. It characterizes the quality administration framework
necessities for the plan and improvement, generation, establishment and benefit of
automotive-related products. And to control the quality of its cars TATA Motors applies different
rigid measures amid the pre-manufacturing stage as well as post-manufacturing stage. During the
fabricating stage regular quality reviews are held by the in-house inspectors in all the shops. All
the process sheets, spot plans, control plans are shown in the workplace. In the post fabricating
stage once the vehicle comes out of the assembly line it passes through rigid testing measures
such as shower test, wheel balancing etc. After completion of testing , the car is ready to be
delivered after Pre Delivery Inspection

Environmental Management
TATA Engines reaffirms its commitment to play down the unfavorable impacts of its products,
operations and administrations on the environment. It endeavors to:
• Diminish the emission levels of vehicles in full compliance of the administrative standards &
proactively work with the industry, Government, other related businesses & organizations to
bring in universal practices.
• Use of ecologically maintainable innovations & practices for avoidance of contamination and
the persistent change in environment performance.
• Moderate common assets and vitality by minimizing their utilization & wastage.
• The unit is certified with ISO 14001 : 1996 for Environmental Administration Framework
(EMS)

Work Measurement
Tata Motors is the first Indian Company to present the Balance Scorecard Framework in the car
segment in India. The scorecard consolidates SQDCM (Security, Quality, Conveyance, Fetched
and Morale).The execution of the Balanced Scorecard has empowered more noteworthy focus on
distinctive components of operational execution. Characterizing, cascading and communicating
procedures over the organization have brought approximately straightforwardness and
arrangement. Apart from Balance scorecard half yearly surveys of the employees are done on the
basis of participation, kaizen at work etc. A proposal scheme is started by the administration
wherein any worker irrespective of his cadre can suggest an advancement within the work put
and in the event that this recommendation is affirmed by the concerned specialist the
representative gets rewards points. Once an employee accomplishes a specified limit of points

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he/she gets a gift voucher. Apart from this workers also receive bonus on certain festive
occasions.

Value Engineering
Nonstop endeavors are made to decrease the cost of service in TATA Motors. Dismissal of input
parts received from merchants is very closely checked at all the offices. The merchants are
penalized on the off chance that rejection surpasses beyond the defined limits. Separated from
rejection of standard parts a few stations are distinguished as CTQ (Critical to Quality) Stage.
Extraordinary care is taken of the components added on these stations. Any negligence on these
stations may lead to a client claiming replacement of the vehicle. Value Engineering group
moreover works for exploring vitality productive alternatives, strategies and eco-friendly
innovation, by receiving successful support & work. The utilization of power, water, LPG,
Compressed air etc. is persistently observed and steps are taken to diminish the utilization of
these assets.

Material Management
Tata Motors employments SAP 4.6C Material Management (MM) module for:
• materials planning and control,
• purchasing,
• products receiving,
• stock management,
• receipt verification.
Various spare parts for the machines, and other essential supplies are requested by the support
and T & PS departments through the central support shop and purchase department. Quotations
are welcomed from the interested parties and after the negotiations one party is finalised to
obtain the fabric.

Tata Nano Failure

Tata Nano, the world's cheapest car is a dream come true of the patriarch of Tata Motors Ratan
tata. Building a car that is affordable by the lower middle class customers, for most of whom this
will be the first car. The aim of Ratan Tata is to sell this car at 1 lakh rupees so that it is
affordable to targeted customers. But at this moment this stunt by Tata Motors is seen as a
failure.Tata motors did not sell at least 2 units during the year in which it closed. Tata Nano is a
failure because it failed in every part of the business i.e marketing, operations, Supply chain.
Reading through the backstory of how this project gives more understanding about how the
project failed.

Manufacturing cars with such aim need close observations and changes that have to be made to
carry on the project forward. Care has to be taken in operations of projects like, designing,

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manufacturing, maintaining Inventory and location of the plant also plays a major role in
acquiring raw materials and a good supply chain.

Production and delivery and Location issues

Tata Motors have established their manufacturing plant in west bengal at first and once it is ready
to carry out the production activities according to planned schedule and promised delivery dates.
Location of the plant is all good to tata motors but local demographics are not in favor of Tatas
and due to eruption of protests to move the plant from west bengal, Tata nano plant is moved to
gujarat. This shift in the establishments caused a major delay in production schedule and delivery
of tata nanos.

After the plant started functioning, Tata motors aimed at increasing production to 250000 cars
per year, but due to not upto the mark demand and lack of efficient operations units, the plant did
not reach that scale.

Model Issues
Modelling Tata Nano is a challenge as any unnecessary part will increase the price of the car. So
Tata took extra care even about minute things like building a model with only one wiper instead
of 2 wipers which is usual in normal cars. But Tata’s compromised safety while building this car
like removing the airbags option. All this lead to production of car within 1 lakh but this model
failed to impress customers

Quality Issues
Tata Motors received many complaints about fires erupting in the nano cars. In preliminary
analysis this is found to be erupting from the electric circuit. Finally reason is found to be the
wrong circuiting model of the car led to the fires. Tata nano is built at 635kg and it lacks the
bulkness to sustain on the roads. Along with this, overall build quality doesn't appeal as a safe
car to travel due to poor build body quality also added to the failure.

Supply Chain and Customer relationship

Due to shifting of plant from the initial location to the new location, Tata motors was not able to
maintain the supply chain demands. Although it was able to source raw materials in time and
maintain good inventory later in part of production, It was not able to cope up with supply chain
demands when there is a good swing in demand.

Customer relationships form an important part in maintaining the brand image. When many
customers came up with issues with the car i.e fire or quality issues, the company did not
maintain good customer relationships and did not respond properly and in time with the
customers. These delays also led to failure of Nano as customers tend to move away from nano
due to poor response.

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Tata Motors - JLR
Tata Motors were one among the options that Ford motors considered to approach to sell Jaguar
and Landrover car segments. Tata went on with the acquisition after enquiring demand of JLR
with dealers. Tata Motors have made several changes to the operations of the cash strapped Tata
motors to make the JLR segment work. The operational team worked on a daily reporting basis
to understand the skeleton of the JLR and appointed consultants to save costs and improve
profits by setting up the suited operations strategy for JLR right from the product team giving out
refreshing models.

After acquisition Tata motors started its operations of Jaguar and landrover cars segment and
main market of JLR segment was UK and Tata motors profits raised and major part of it is
contributed by JLR. Tata Motors did everything to obtain capital to run operations of JLR. Tata
Motors manufactured JLR cars in the UK and all the materials required for manufacturing are
obtained from different parts of Europe. So, Tata Motors supply chain includes obtaining a
majority of raw materials from the various parts of Europe and assembling them in the JLR plant
of the UK and maintaining a good number of dealers locally in the UK. Good sales figures have
encouraged Tata Motors to not think of increasing capital spendings on JLR as they forecasted
the same trends for a few years that will make JLR debt free. But geopolitical tensions like
Brexit and the Volkswagen emission scandal came as a speed breaker in the way of Tata Motors.
After the Brexit decision, the pound fell as much as 10% and more at times which made import
of raw materials for manufacturing costly, this has increased the burden much more on Tata
motors. It made a failed attempt to obtain a relief package from the UK government that
increased taxes on diesel variants after the Volkswagen emission scandal made things worse.

The JLR segment also faulted on quality aspects in manufacturing. China has also been a big
market for JLR cars. JLR also started local manufacturing with JV with Chery automobiles. JLR
achieved a big success with this JV and sales surged. With increasing sales, customer complaints
also increased. JLR started to recall cars with complaints and almost 70% of customers have
raised complaints regarding quality issues. All the issues are about product quality which is
indicating their inefficiency in supply chain and operations. JLR operations have become burden
with all these and debt raised to a very high level on Tata Motors because of JLR, with all these
in place Tata Motors have turn around the legacy of JLR and ended debt ridden and steps are
being taken to tackle these problems can be grasped from their recent announcement to be debt
free company in upcoming years.

Challenges
Tata motors being one of the well known automobile manufacturers in the Industry, It is
important to study the margin of challenges that Tata motors is facing. Challenges faced by tata
motors can be broadly classified into 4 divisions and let us understand the factors contributing by
each classification

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● Industry challenges
Automobile industry is one of the most sought after industries in the economy, their sheer
size and scale is very high. Running companies in this industry need a lot of capital.
Along with this, there are some other factors that should be discussed when we consider
challenges faced from the industry.
➢ Global Overcapacity is an issue that arises because of the unsold
inventory that is lying in the warehouses just as a lean waste of inventory.
It arises due to producing too much of a product or producing it sooner
than the customer needs it. Tata motors increased inventory days from
70.32 from march 2018 to 82.8 in march 2020 indicates that sales of tata
motors slumped down. Falling automobile market also added to this
slowdown which happened across industry.
➢ Complex M&A is important in setting the tone not only to the company
but also to the industry in whole. Missed M&A like Tata motors - Chery
may have turned around its left opportunity cost now or it could have
ended up in loss.
○ Jaguar & Landrover acquisition by Tata motors from ford
happened in 2008. Since acquisition tata was able to get the sales
on track and towards the assumed target. But due to various
challenges like Brexit and 70% of cars that are recalled in china
market due to low quality and etcetera factors led to increase in
debt on jaguar and landrover segment amounting to 1.2 lakh crore
in FY20.

● Customer Challenges
➢ Segmentation and polarization
○ Tata motors being the powerhouse of engineering the vehicles that
are segment builders. With all this track record, tata motors
performance is dull in the passenger vehicle segment. To gain good
market share going forward considering India's top automobile
market in upcoming years, Tata motors targeted 2023 as the year
by which they establish versatile models in the passenger segment.
Considering this many models are going to come up in near future
from tata motors with many variants. This require to enhance and
establish newer production lines and better supply chain to meet
demands
➢ Decreasing loyalty
○ Tata as a conglomerate is having a high trust rating among the
Indians. Tata motors enjoys the same loyalty among Indians. But

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 not having a loyal customer base has become a challenge for Tata
motors. Not maintaining the choice of fleet of its vehicles and
moving forward with the outdated fleet is one of the reasons for
this.

● Competitor Challenges
➢ Global Game
○ Tata motors having its presence across the world has competition
from many companies in each segment. High FDI allowed in India
in the present time, any company with good models that works for
Indian market are able to come and set up plants and production
lines and piercing into distribution phase with the capital from its
own pockets or through JV’s
➢ Presence across Vehicle segments
○ Tata Motors' varied presence across vehicle segments led Tata
motors open to numerous competitors across different vehicle
segments. Maintaining production lines of various vehicles and
maintaining plants across or various vehicle segments and
maintaining supply chains for the same and staying profitable is a
challenging task.

Future Scope
Tata Motors is losing its stake in the passenger vehicle market in its domestic market.
When Cyrus took up the responsibility as CEO, Tata Group decided to take initiatives to
develop its domestic passenger vehicle segment, It has set a target to give a good number
of models in the passenger vehicle segment by 2023. By doing this they intend to
increase their sales and market share in the domestic market. In the process of doing this,
Tata motors not only started designing new petrol/diesel vehicles but also ventured into
the e-mobility segment.
● EV Ecosystem
○ Electric mobility has become the future considering increasing climate
cautious population and encouraging government initiatives across the
world. India is also into the same bandwagon after taking initiatives to run
the majority of electric vehicles on the Indian roads.
○ Tata Motors have taken a step ahead than the other companies and are
planning not only to introduce various models in the electric vehicle
segment but to build the entire electric mobility ecosystem. By building
such an ecosystem tata motors wants to play its strengths to capture the
good market and regain its lost share in the passenger vehicle segment.
Tata motors joined hands with Tata Chemicals, Tata Power and Tata

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 Croma to build the internal synergies through which Tata motors can
establish the complete ecosystem of the Electric mobility segment.
○ In the process of building an Electric ecosystem, Tata chemicals has set up
a factory to build the batteries and Tata group has decided to open up 650
outlets for EV charging across the country.

Tata Motors is also planning to take many measures to increase its efficiency and gain track in
the domestic market. Some of these are listed below
● Intense Topline Focus - Tata motors is planning to introduce numerous models in the
upcoming years which falls across all segments of customer bases including premium
luxury segment
● Structural Improvements - Planned structural modifications are done to meet the
manufacturing demand and supply of newer models and at the same time reduction of
portfolios to become more structurally efficient and reduction in manufacturing costs.
● New Business Models and Technologies - Organisational structure is also being
modified with the introduction of a sub-brand called TaMo which comes up with the fast
paced latest mobility solutions. This sub-brand also works on fast paced development and
introduction of new concept modules.
● Lean and accountable organisation - Tata motors realised the importance of being
accountable as an organisation to improve on its productivity, increase efficiency and to
describe in an overview, Tata motors is moving towards becoming a more lean
organisation.

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