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SWOT Analysis of Tata Motors

Tata Motors is the largest company in India's automobile and commercial vehicle sectors, with over 70% market share in commercial vehicles. It has strengths in its large market share, employees, and reputation as a leading Indian brand. However, it faces weaknesses such as older vehicle platforms and low returns on investment. Opportunities exist in new markets and luxury vehicles, while threats include competition from more established automakers and rising input costs.

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Shubham Tiwari
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2K views13 pages

SWOT Analysis of Tata Motors

Tata Motors is the largest company in India's automobile and commercial vehicle sectors, with over 70% market share in commercial vehicles. It has strengths in its large market share, employees, and reputation as a leading Indian brand. However, it faces weaknesses such as older vehicle platforms and low returns on investment. Opportunities exist in new markets and luxury vehicles, while threats include competition from more established automakers and rising input costs.

Uploaded by

Shubham Tiwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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SHRI RAMDEOBABA COLLEGE OF ENGINEERING AND MANAGEMENT,

Ramdeo Tekdi, Gittikhadan,


Katol Road,
Nagpur - 440013 (M.S.) (India)

SWOT ANALYSIS
OF
TATA MOTORS
COMPANY PROFILE

 The company was established in 1935 as a locomotive


manufacturing unit and later expanded its operations to
commercial vehicle sector in 1954 after forming a joint venture
with Daimler-Benz AG of Germany.

 Ratan N Tata is the chairman of Tata Sons, the Tata promoter


company.

 Tata Motors Ltd is a multinational corporation headquartered in


Mumbai, India. Part of the Tata Group, it was formerly known as
TELCO (TATA Engineering and Locomotive Company). Tata Motors
has a consolidated revenue of USD 16 billion after the acquisition
of British automotive brands Jaguar and Land Rover in 2008.
CONT…

 It is India's largest company in the automobile and commercial vehicle sector


with upwards of 70% cumulative market share in the domestic commercial
vehicle segment, and had a 0.81% share of the world market in 2007.

 Second largest manufacturer of commercial vehicles in the world. The


company is the world’s fourth largest truck manufacturer, and the world’s
second largest bus manufacturer. In India Tata ranks as the leader in every
commercial vehicle segment, and is in the top 3 makers of passenger cars
STRENGTHS

 TATA motors is market leader in Automobile Industry with high market share.

 TATA Motors Company have huge employee base.

 TATA motors employee productivity percentage is higher.

 TATA motors produce low price car with low fuel consumption.

 TATA motors is the reputable brand in Indian Industry.

 TATA Motors Limited is India’s largest automobile company, with revenues of Rs. 92,519 crores (USD 20
billion) in 2009-10.
CONT…

 The research and development department of TATA motors is very


strong.

 TATA’s management is strengthened by the collective experience of its


partners and acquired companies – this includes general
management, marketing, sales and operations.

 TATA Motors has been aggressively acquiring foreign brands to


increase its global presence.

 TATA motors posses High corporate responsibility.


WEAKNESSES

 One weakness which is often not recognised is that in English the word
'tat' means rubbish. Would the brand sensitive British consumer ever
buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar
and Land Rover.

 The company's passenger car products are based upon 3rd and 4th
generation platforms, which put Tata Motors Limited at a disadvantage
with competing car manufacturers.

 Return on Investment on TATA motors shares in low.


CONT….

 Tata has not got a foothold in the luxury car segment in its
domestic market.

 The Company’s manufacturing practices trail competitors.

 Most of the automobiles Tata manufactures are based on older


platforms.
OPPORTUNITIES

 TATA motors can take the advantage of their low cost car by entering
into third world countries where people have low purchasing power.

 Joint ventures in other countries allow TATA motors to easily enter


into new market.

 TATA motors should focus in developing luxury cards.

 Nano is the cheapest car in the World - retailing at little more than a
motorbike.
CONT….

 The range of Super Milo fuel efficient buses are powered by super-
efficient, eco-friendly engines.

 Emerging industrial nations such as India, South Korea and China will
have a thirst for low-cost,environmentally friendly passenger and
commercial vehicles.

 The company has put in place a very proactive Corporate Social


Responsibility (CSR) committee to address potential strategies that
will make is operations more sustainable.
CONT….

 Increase its product line in light & heavy vehicle. So that it can
encash on its Brand image.

 The Company can work on its big product range with


environment friendly Technology.

 The Company should focus on both Passenger & Commercial


Vehicle for improving its Design (interior & exterior) & Quality
of Fiber.
THREATS

 Competing car manufacturers have been in the passenger car


business for 40, 50 or more years. Therefore Tata Motors Limited has
to catch up in terms of quality and lean production.

 Since the company has focused upon the commercial and small
vehicle segments, it has left itself open to competition from overseas
companies for the emerging Indian luxury segments.

 Rising prices in the global economy could pose a threat to Tata


Motors Limited on a couple of fronts. The price of steel and
aluminum is increasing putting pressure on the costs of production.
CONT..

 TATA motors have low cost advantage over its competitors, once the
competitors find out the low cost production methodology then there
will no competitive advantage.

 Pakistan’s Transmission Motor Company has built a basic four-


wheeler for only $2,100.  This car is considerably cheap and the
Pakistan Transmission Motor company started exporting them to
Sudan, Qatar, and Chile.

 The low safety standards can impact the sales.

 Powerful competitors for the luxury market including Honda, Toyota,


Ford and Mercedes-Benz are beginning to push into the Indian market
REFERENCES & SOURCES

 Tata Motors' Official Website


 Wiki - Tata Motors Ltd.
 Business Today - Pick and Choose
 Business Today - Tata Motors to bring Jaguar, Land Rover to India

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