International Business Management

By:

Lysandra D’silva (1016015)

Kranthi (1016077)

Joel Pais (1016018)

Aloysius Institute of Management and Information Technology

Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519

crore ($20 billion) in 2009-10. Tata Motors Limited is an Indian multinational automotive

corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as

TELCO (TATA Engineering and Locomotive Company). Its products include passenger cars,

trucks, vans and coaches.

Through subsidiaries and associate companies, Tata Motors has operations in the UK, South

Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two

iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is

South Asia’s largest automobile company; it is the leader in commercial vehicles and among the

top three in passenger vehicles. The company is the world's fourth largest truck manufacturer, the

world's second largest bus manufacturer, and employs 50,000 workers. Tata Motors has

produced and sold over 4 million vehicles in India since 1954.

Established in 1945, when the company began manufacturing locomotives, the company

manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG,

which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay Stock

Exchange and New York Stock Exchange. In 2010, Tata Motors surpassed Reliance to win the

coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance

and The Economic Times.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow,

Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the

United Kingdom.

Tata Motors is the country's market leader in commercial vehicles and among the top three in

passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy

commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are

being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East

Asia and South America.

The company, formerly known as Tata Engineering and Locomotive Company, began

manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with

Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light

commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first

indigenously manufactured passenger car, and the Nano, the world's cheapest car.

Tata Motors has over 1,400 engineers and scientists in six R&D centers in India, South Korea,

Spain and the UK.

Areas of business

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy

commercial vehicles.

Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo

in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiat’s

cars in India.

Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.

Commercial vehicles: The commercial vehicle range extends from the light two-tonne

truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment.

Passenger buses: The Company also manufactures and sells passenger buses, 12-seaters

to 60-seaters, in the light, medium and heavy segments.

History

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The

company was established in 1950 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. Despite the success of its commercial vehicles, Tata realized his company had

to diversify and he began to look at other products. Based on consumer demand, he decided that

building a small car would be the most practical new venture. So in 1998 it launched Tata Indica,

India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and

maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially

the UK. Tata acquired Spanish bus and coach manufacturer Hispano Carrocera in 2009. In 2006

it formed a joint venture with Marcopolo S.A. of Brazil, and introduced low-floor buses in the

Indian Market under the name Tata Marcopolo Bus. Recently, it has acquired British Jaguar

Land Rover (JLR), which includes the Daimler and Lanchester brand names.

Acquisitions

In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata

Daewoo Commercial Vehicle, in South Korea.

In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling

rights of the company.

In 2007, formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in

the Indian Market.

In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler

and Lanchester brand names.

In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company

Trilix for a consideration of €1.85 million. The acquisition is in line with the company’s

objective to enhance its styling/design capabilities to global standards.

Expansion

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 multi utility vehicle. After the

launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier

'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998,

India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous

passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent

fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling

cars in the history of the Indian automobile industry. A newer version of the car, named Indica

V2, was a major improvement over the previous version and quickly became a mass-favorite.

Tata Motors also successfully exported large quantities of the car to South Africa. The success of

Indica in many ways marked the rise of Tata Motors.

Products

Passenger cars and utility vehicles

Tata Nano Europa

Tata Starbus Low Floor 1610

Tata Marcopolo buses in the Delhi

BRT.

Tata Aria

Tata Sierra (Discontinued)

Tata Estate (Discontinued)

Tata Sumo/Spacio

Tata Sumo Grande

Tata Safari

Tata Indica

Tata Vista

Tata Indigo

Tata Manza

Tata Indigo Marina

Tata Winger

Tata Magic

Tata Nano

Tata Xenon XT

Tata Aria

Tata Venture

Tata Iris

Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Pr1ma

2010 Tata Versa

2010 Tata Essota

2011 Tata Pixel

Commercial vehicles

Tata Ace

Tata Super Ace

Tata TL/Telcoline/207 DI Pickup Truck

Tata 407 Ex and Ex2

Tata 709 Ex

Tata 809 Ex and Ex2

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1512 (Medium bus chassis)

Tata 1612/1616 (Heavy bus chassis)

Tata 1618 (Semi Low Floor bus chassis)

Tata 1623 (Rear Engined Low Floor bus

chassis)

Tata 1518C (Medium truck)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Branded Buses for city,

inter city, school bus and standard

passenger transportation)

Tata Divo (Fully built luxury coach)

Tata CityRide (12 – 20 seater buses for

intra-city use)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8×2)

Tata 3516 (Heavy truck)

Tata 4018 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6×4)

Tata Novus (Heavy truck designed by

Tata Daewoo)

Tata Prima (The World Truck designed

by Tata Motors and Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4×4)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in

hard top, soft top, 4×4, and 4×2 versions

Tata LPTA 713 TC (4×4)

Tata LPT 709 E

Tata SD 1015 TC (4×4)

Tata LPTA 1615 TC (4×4)

Tata LPTA 1621 TC (6×6)

Tata LPTA 1615 TC (4×2)

Tata Winger Passenger Mini Bus

Tata Motors technology and design subsidiaries

Tata has dozens of technology and design subsidiaries. These include the main ones.

Telco Construction Equipment (TELCON)

TELCON is a joint venture between Tata Motors and Hitachi, which focuses on excavators and

other construction equipment. and research work are done.

HV Transmission (HVTL) and HV Axles (HVAL)

HVAL and HVTL are 85% subsidiary companies of Tata Motors engaged in the business of

manufacture of gear boxes and axles for heavy and medium commercial vehicles, with

production facilities and infrastructure based at Jamshedpur.

Tata Technologies Limited (TTL)

TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors

holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in the US

and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has

a presence in Thailand. Tata Technologies is a software service provider in the IT services and

BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a

few. It bought over the British engineering and design services company, Incat International Plc

for Rs.4 billion in August 2005. Incat specializes in engineering & design services and product

lifecycle management in the international automotive, aerospace and engineering markets. With

this acquisition, Tata Motors will have closer proximity to its global customers and be able to

provide a wider range of services.

Tata Motor European Technical Centre

Tata Motor European Technical Centre is Tata's subsidiary based in the UK. It was the joint

developer of the World Truck.

Operations

Tata in India

Tata Motors Limited is India’s largest automobile company, with revenues of 35,651.48 crore

(US$7.23 billion) in 2007–08. It is the leader in commercial vehicles in each segment, and

among the top three in passenger vehicles in India with products in the compact, midsize car and

utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata

vehicles have been produced domestically since the first Tata vehicle was assembled in 1954.

The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).

Following a strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat

Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat

powertrains. The company is establishing a new plant at Sanand (Gujarat). Tata's dealership,

sales, service and spare parts network comprises over 3500 touch points. Tata Motors also

distributes and markets Fiat branded cars in India.

Sales & Service Network

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union

Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and

Hyundai.

Tata's global operations

Tata Motors has been in the process of acquiring foreign brands to increase its global presence.

Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among

these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British

brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the

Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The re-

branded Tata Daewoo Commercial Vehicles Company has launched several new products in the

Korean market, while also exporting these products to several international markets. Today two-

thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.

In 2005, Tata Motors acquired a 21% controlling stake in Hispano Carrocera, a Spanish bus and

coach manufacturer. Tata Motors continued its market area expansion through the introduction

of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano

Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In May, 2009

Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo Debuting in

South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In

2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture fully built

buses and coaches for India and other international markets. Tata Motors has expanded its

production and assembly operations to several other countries including South Korea, Thailand,

South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern

Europe.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,

Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is

present in many countries it has only managed to create a large consumer base in the Indian

Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing

consumer base in Italy, Spain and South Africa.

Business excellence

A key vector that has helped Tata companies grow and establish themselves on the global stage

as business leaders in their respective fields is the strong business excellence movement in the

group.

One of the initiatives in the business excellence movement is a framework known as the Tata

Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm

Baldrige archetype. TBEM assesses core aspects of business operations: leadership, strategic

planning, customer focus, measurement, analysis and knowledge management, workforce focus,

process management and business results.

The model works under the aegis of Tata Quality Management Services (TQMS), an in-house

organisation mandated to help different Tata companies achieve their business excellence and

improvement goals.

In recent years, the TBEM framework has been adapted to include new business and societal

initiatives such as governance, safety, climate change and innovation.

The other core elements of the Tata business excellence movement are the Tata Code of Conduct

(TCoC), a mandatory pan-Tata policy that defines how Tata employees can conduct themselves,

and the Management of Business Ethics, a programme that helps Tata companies drive ethics

and values in the organisation.

Since the 1990s, there is a formal arrangement that governs the relationship between individual

Tata companies and the superstructure that is the Tata group. In order to use the Tata

nomenclature, a group company has to sign a contract called the Brand Equity and Business

Promotion (BEBP) Agreement. This places an obligation on the company signing on to adopt

TBEM and TCoC as a means to attaining business leadership.

As a result, the business excellence processes have come to characterise the Tata way of

enhancing and conducting its business endeavours, and to a great extent, have helped define the

Tata brand.

The TBEM movement in Tata has a built-in reward and recognition mechanism wherein

companies that have achieved a score of 600 on the TBEM framework are felicitated with the

JRD QV Award.

TQMS

Tata Quality Management Services (TQMS), a division of Tata Sons (the principal promoter

company of the Tata group of companies), is a trusted partner, working closely with Tata

companies to achieve their business excellence and improvement goals.

TQMS collaborates with group companies, through long and short-term initiatives, in the areas

of innovation, climate change, business ethics, customer focus, improvement, strategy

development, safety, human resource, process improvement, corporate governance, training and

affirmative action.

Through TBEM, TQMS helps Tata companies gain insights on their strengths and their

opportunities for improvement. This is managed through an annual process of 'applications and

assessments'. Each company writes an application wherein it describes, in the context of the

TBEM matrix, what it does and how it does it. This submission is then gauged by trained

assessors, who study the application, visit the company and interact with its people. The

assessors map out the strengths and improvement opportunities existing in the company before

providing their feedback to its leadership team.

TQMS trains and certifies assessors, who are selected from across the group, and it designs and

administers an assessment apparatus that helps them evaluate different Tata companies. The

contact point person in each company is the 'corporate quality head', nominated by the CEO as

the business excellence process owner. Typically, each company has a network of business

excellence people from a variety of functions and locations.

The commitment a company makes when it signs the BEBP contract compels it to attain explicit

business excellence scores over specific time periods. A result-driven scoring mechanism

enables the company to track its progress over time, and ensure that it keeps improving. There is

also an annually administered, group-wide recognition system for companies that exceed a

certain score, thereby reflecting excellence, industry leadership and consistent improvement.

Implicit in the TQMS approach is the belief that its wide-ranging methodology will enable Tata

companies to become exemplars — on business as well as ethical parameters — in their

respective spheres.

TBEM

The TBEM methodology has been moulded to deliver strategic direction and drive business

improvement. It contains elements that enable companies following its directives to capture the

best of global business processes and practices. The model has retained its relevance thanks to

the dynamism built into its core. This translates into an ability to evolve and stay in step with

ever-changing business performance parameters.

The TBEM matrix is used for the organisational self-assessment of Tata companies, recognition

and awards, and for providing feedback to applicants. In addition, TBEM plays three important

supportive roles in strengthening the competitiveness of Tata companies:

It helps improve business excellence practices, capabilities and results.

It facilitates communication and sharing of best practices among Tata companies.

It serves as a working tool for understanding and managing performance, for providing

planning guidance, and for identifying learning opportunities.

The TBEM methodology comprises a set of questions that applicant Tata companies have to

answer. Its main objectives are to enhance value to customers and contribute to marketplace

success; maximise enterprise-wide effectiveness and capabilities; and deliver organisational and

personal learning.

The core values and concepts of TBEM are embodied in seven categories: leadership; strategic

planning; customer focus; measurement, analysis and knowledge management; workforce focus;

process management; and business results. The TBEM system focuses on certain key areas of

business performance: customer-focused results; product and service results; financial and

market results; human resource results; organisational effectiveness results; governance and

social responsibility results.

JRD QV Award

While quality has always been one of the cornerstones of the Tata way of business, the need to

introduce a formal system that calibrated how different group companies were faring on this

scale began to be felt in the early 1990s. That led to the institution, in 1995, of the JRD Quality

Value Awards, the forerunner to TBEM. Named after JRD Tata, the late chairman of the group

and a crusader for the cause of business excellence in Tata companies, the awards have now been

incorporated in TBEM.

Jehangir Ratanji Dadabhoy Tata, or JRD, as he was popularly known in business circles, guided

the destiny of India’s largest business house for well over half a century. Over the years that he

was at the helm of affairs of the group, JRD Tata helped establish many new enterprises.

He was always conscious about the importance of quality, and ensured that this quality

consciousness prevailed in all the organisations that belonged to the Tata group. He was proud

that the companies within the group were known, domestically and internationally, for the

quality of their products and services.

As a tribute to his quest for perfection in every sphere of activity, the JRD Tata Quality Value

Award was instituted in his memory.

The JRD QV Award is modelled on the lines of the Malcolm Baldrige National Quality Award,

integrating beneficial attributes from other national quality awards. The award recognises a

company within the Tata group, which excels in quality management and has achieved the

highest levels of quality.

This is an annual award presented to the winning company on the 29th day of July, the birth

anniversary of JRD Tata.

The objectives of the award are:

This award is given to group companies in order to create awareness on the importance of

the value of quality and the need for total customer satisfaction in all areas of operations

within the Tata group companies.

To achieve and sustain continuous excellence and consequently leadership in the

marketplace through perfection and the achievement of quality which will be recognised

as being the best and ahead of competition.

Evaluation process

Tata companies participate in a bi-annual process of external assessments. The idea is to subject

them to an assessment, based on the excellence parameters embedded in the Tata Business

Excellence Model (TBEM).

Each company writes an application in which it describes what job it does and how it does the

job in the context of the criteria set by TBEM. This application is then 'assessed' by trained

TBEM assessors who study the document, visit the company and interact with its people, draw

out the strengths and the improvement opportunities, and then provide feedback to the leadership

team. An in-built scoring mechanism enables the company to track its progress over time, and

ensure that it keeps improving.

Criteria for recognition:

JRD QV Award: 600+ for the first time

Leadership in Excellence: 700+ for the first time

Sustained Excellence: 3 successive improvements beyond 600

Active Promotion: 500 to 600 for the first time

Serious Adoption: 450 to 500 for the first time

High Delta: High improvement in one year min 75 for 500-

High Delta 500+:  High improvement in one year min 50

High Delta 600+:  High improvement in one year min 25

Addressing climate change

The Tata group is facing up to the challenge of climate change and making it integral to its

processes. The broad idea is to develop a common approach to the critical questions confronting

the group's businesses on the environmental front, and formulate policies that can deal

effectively with issues that impact climate change.

Coordinating and directing the climate change efforts of the group's companies is Tata Quality

Management Services (TQMS), a centrally administered organisation that draws on the

experience and expertise of senior Tata leaders.

The Tata group considers climate change to be a serious issue and is taking the following steps to

increase carbon consciousness and institute mitigation strategies:

A steering committee and working group have been assigned to address the climate

change issue and cascade it into a group-level movement.

Tata companies from five business sectors — steel, automotive, power, chemicals and

IT — will participate in the first phase through the following strategies:

o Intensive awareness and training programmes will be conducted for senior

leadership. Climate change champions will be identified in each company.

o Policies on energy efficiencies, green buildings, green data centres and green

protocols will be developed. Awareness will be created amongst all stakeholders.

o Individual Tata companies will measure their current carbon footprint to assess

where the group stands. This will be extrapolated for future years.

o Cost abatement curves will be established and mitigation strategies identified for

the major companies. Other Tata companies will follow in the second phase.

o The climate change initiative will be integrated with the Tata group's internal

business excellence framework, the Tata Business Excellence Model, in order to

further motivate and encourage companies.

Climate change policy for Tata companies

Tata companies will play a leadership role in climate change by being knowledgeable,

responsive and trustworthy, and by adopting environment-friendly technologies, business

practices and innovation, while pursuing their own growth aspirations and the enhancement of

shareholder value. Tata companies will measure their carbon footprint and will strive to:

Be the benchmark in their segment of industry on the carbon footprint, for their plants

and operations.

Engage actively in climate change advocacy and the shaping of regulations in different

business sectors.

Incorporate ‘green’ perspective in all key organisational processes.

Global Presence:

Tata in Asia Pacific

Asia Pacific is a key market for the Tata group as it enjoys a strong brand presence in the

region — apart from the Indian sub-continent, Tata is present in Singapore, Thailand, Vietnam,

Indonesia, Malaysia, the Philippines, South Korea, Australia and China. 

Although most Tata companies are headquartered in India, the group's growing global spread has

resulted in the Asia Pacific region becoming a significant base of operations as well. Singapore is

the headquarters of Tata Technologies and Tata NYK and also the regional headquarters of Tata

Consultancy Services.

Several Tata companies have set up manufacturing plants, sales and marketing operations and

representative offices around the region. For instance, NatSteel, a Tata Steel company, is the

leading provider of steel in the region with plants and bases in several Asia Pacific nations. A

significant portion of Tata Communications network is located in the area. 

Tata Motors has two large operations — Tata Daewoo in South Korea and Thonburi Automotive

Assembly Plant Company in Thailand. Indian Hotels has set up several Taj properties in the area,

including its luxury getaways in Malaysia, Bhutan and the Maldives, and the Blue in Sydney.

Tata in China

China is a critical and growing market for the Tata group, which has a bit of history with regard

to doing business with the Middle Kingdom. In 1859, a young Jamsetji Tata, the founder of the

Tata group, was sent to Hong Kong to open a branch for his father's banking firm. He relocated a

few months later to Shanghai, where he remained till 1863.

 

Currently the Tata group has a fairly significant presence in China, with the number of

companies and operations growing steadily. Tata companies employ over 2,600 employees in

China, generated $3 billion worth of sales in the country and purchased goods and services worth

$700 million in 2010.

Recognising the potential for high growth in existing businesses and opportunities for new ones,

Tata Sons, the group promoter company, has set up representation in China.

Tata motors in North American

Tata TTM -0.36% has received twice as many orders for the $2,000 micro car as it is set up to deliver

through 2010. Some investors nevertheless expressed dismay Tuesday, disappointed that Tata didn't haul

in even more orders. 

It's a problem anyone still holding stock in Ford F +0.68% or General Motors GM +0.04%might relish.

Detroit need not fear an imminent incursion of home turf by the Nano. There are no Tata Motors

distributorships in North America, creating a protective buffer zone that for the time being affords a good

chuckle.

Seriously. What's the likelihood that a car with a 650 cc, two-cylinder engine with a top speed of 63 mph

poses a threat to anything larger than a scooter?

America has a long history of making fun of little foreign cars. Back in the 1950s, it was the Volkswagen

Beetle. But then it sort of caught on. In the 1960s, the jokes were aimed at those little Japanese imports

from Toyota and Datsun. And who can forget those dinky Honda Civics? All were dismissed as cheap

knock-offs of what we knew to be real cars.

Then came the 1973 Arab oil embargo, gasoline shortages, and suddenly our precious land yachts were

being swapped at par for those little foreign jobs that, despite initial skepticism, seemed to holding up

pretty well after all.

Gradually the U.S. auto industry realized it was losing home court advantage to the imports. The backlash

was painful and palpable. No one in their right mind would park a Toyota on the streets of the Motor City

without fearing it would be keyed by some angry patriot.

Eventually we found new cars to joke about. Now it's Tata's turn.

But there's a pattern here. Like earlier invaders, Tata is backed by a company much bigger and a history

much older than we care to recognize.

While the Nano grabs headlines, it's only the latest model in a Tata lineup of sedans, SUVs and

commercial vehicles. Tata has a distributor network that spans parts of Europe, Asia and Africa. And it is

in full growth mode, teamed up with Fiat IT:F +3.18% and capitalizing on some staggering production

advantages when sized up against North American competitors.

Given the evolution of the industry over the past 60 years, Tata is bound to face lots of jokes. But Detroit

needs to take this relative newcomer deadly serious because they are going to find themselves in head-to-

head competition for many of the same overseas customers and, just as importantly, the same pool of

investor capital.

Retail Production of tata motors in north American

Tata motors is considering pooling engine production. Ratan Tata, chairman of the Indian holding group

whose automotive business owns Jaguar Land Rover, has spoken of setting up joint engine production for

its mass-market Indian operations and the two UK premium brands.

JLR, which specialises in high-end executive saloons and four-by-fours, had in the past spoken of

building engines in the UK or India, but this is the first time Tata Motors has spoken of combining the

two parts of its business.

“To optimise the synergetic strengths between JLR and Tata Motors in India, an examination is also

under way on a joint engine development programme which would have manufacturing facilities both in

the UK and India”, Mr Tata said in the company’s annual report, released on Monday.

JLR currently gets its engines from Ford Motor, which sold the premium carmakers to Tata for $2.3bn in

2008.

Joint engine development with India’s largest carmaker – best known for the tiny, cheap Nano – could be

a sensitive topic for Jaguar and Land Rover on the competitive premium-car market. Tata is investing at

least £5bn over the next five years to improve the quality of the car brands’ products and designs, as it

takes on Germany’s larger premium car marques.

Jaguar’s image took a knock under Ford’s ownership, when the brand’s X-Type car was criticised for

having too much in common with the Ford Mondeo.

However, since then carmakers – including the German premium producers – have established

increasingly global manufacturing operations or teamed up with mass-market rivals, as they seek to cut

costs and build cars closer to where they sell them.

BMW and Daimler’s Mercedes-Benz brand make cars in the US, and rival premium brand Audi is

considering a US production site. Daimler is co-operating with mass-market carmakers Renault and

Nissan in areas including small cars and commercial vehicles.

Chas Hallett, editor of Britain’s WhatCar magazine, said: “I don’t think where things are made has any

bearing on consumers any more. What’s more important are that [JLR’s] cars are engineered and

designed in Britain. Where they’re actually manufactured is irrelevant”.

Jaguar and Land Rover have rebounded strongly since the financial crisis, on the back of reviving global

demand for premium cars and well-reviewed products such as the recently launched Range Rover

Evoque.

In an interview last month, Ralf Speth, JLR’s chief executive, said that the carmakers had not yet decided

on an engine strategy.

Mr Speth said: “We have a long-term contract with Ford. We don’t need another partner.” However, he

added that if JLR decided to produce its own engines, the company might do so “either in the UK or in

India or both”.

Industry observers widely expect the UK carmakers to develop their own capacity for what is seen as a

core automotive technology. Rival UK premium carmaker Aston Martin, which Ford sold in 2007, said

earlierthis month it had extended an agreement to buy engines from Ford, due to lapse in 2012, for at least

four more years.

Production process of Tata motors in north American

1) Build out a network of dealerships versus utilize existing distribution networks.

2) Import all completed cars from India versus setting up an auto manufacturing plant in the US or

Mexico.

Import Finished Cars from India or Build an Auto Manufacturing Plant Many large foreign auto

companies import thousands, sometimes millions, of cars into the US each year. Toyota, for example,

imports so many vehicles that it operates its own logistical branch, Toyota Logistics Services (TLS),

which operates container ships and organizes import activities for many of Toyota’s imports.

Accordingly, economies of scale benefit these companies and make importing each vehicle relatively

inexpensive when compared to the cost of setting up an auto manufacturing plant for those same cars here

in the US or in Mexico. Further, the private nature of these types of logistics subsidiaries makes it

difficult to determine the exact cost of importing a vehicle. While a breakdown of the complete import

supply chain follows in a later section, estimating the cost to push a vehicle through Tata’s supply chain is

contained in Exhibit 6. This simple financial analysis compares the roughly $600 estimated cost of

importing each Nano to the US to the prospective capital outlay that building a Nano factory would

require, around $225 million on the low-end. While these figures are not directly comparable, they do

play a role in determining whether importing or building in North America is the better route. 

The prospect of spending $225 million to build a North American factory is supported by the very low

transportation cost that Tata would pay in delivering completed cars from the factory to its dealerships in

the US. This is where the benefits end, however, as lengthy list of cons presents itself. First, spending this

much capital is an unlikely option for Tata as intra-Asia and European expansion are the company’s main

concerns right now. The establishment of a dealer network involves many millions of dollars, however its

operational and long-term strategic benefits are immediately clear. Second, the standardization of parts in

Tata vehicles makes the current Nano plant’s location in India ideal, as many of the same parts Tata uses

in other vehicles are included in the Nano. Third, the Tata CEO has said that the Nano plant in India has

been designed for customizing Nanos for sale in the European and US markets. The current Nano factory

is located in Sanand, Gujarat State, India, along the country’s Western coast. It has capacity to produce

250,000 vehicles annually. Demand for the Nano in India is currently far below this figure, and an

efficient supply chain delivery Nano parts to the factory is already in place. These facts reveal that

building another Nano plant in North America would be largely redundant. 

Another issue to consider is Tata’s current supply chain which brings parts from across Asia to the Nano

plant in Sanand. Were a new factory in North America to be setup, this supply chain would need to be

expanded to bring all the same parts to the new factory, located on the opposite side of the world. With

hardly any North American parts suppliers at present, setting up a factory in the US or Mexico would

require establishing an expensive new supply chain to ship nearly all the separate Nano parts overseas.

When further considering that labor costs in North America are far higher than those in India, it appears

that myriad new costs would result from this additional supply chain. Exhibit 7 details the difference in

pay rates among skilled auto workers in various countries. The bottom-line impact, should Tata move

production to a US location, would be an additional $49 million in labor costs. This is an outrageous

figure which would boost the retail price of the Nano more than $500 higher. 

The wage rates for auto workers in Mexico and India are actually nearly the same. Mexican production

facilities would only incur an additional half-million dollars in labor cost, an amount that would be more

than accounted for by savings in finished-car shipping costs and NAFTA tariff reductions. Conversely,

the added inefficiencies of establishing a redundant supply chain (one leading to the plant in India and

one leading to a plant in Mexico) would result in costs that far outweigh the potential savings from

localized finished-car shipping. For this reason, it is clear that importing finished Nano cars from India is

the best fiscal choice for Tata. Only later, once the company has an established foothold in the US market

and is ready to introduce new products to it, should Tata consider constructing an auto manufacturing

plant somewhere in North America. The risk of US consumers rejecting the Nano is relatively low,

though its presence makes the notion of building a plant in North America premature at this time.

Tata in South America

The Tata group has had a presence in South America since the 1990s, principally through Tata

Consultancy Services (TCS), which started its first project in Brazil. Since then the company has

expanded its reach to 14 countries in the region and today serves more than 150 clients. TCS employs

more than 5,000 people across the South American continent, which is a strategic base in the company’s

operations to service customers in the US and Europe.

Among the other Tata companies that have businesses in the region are Tata Motors and Rallis.

Additionally, Tata Steel Europe, Tata Chemicals, Tata Communications and Tata International have a

sales presence in the region.

Tata Motors unveils Assembly Plant in South Africa

Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd.,

today formally opened its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng

province of South Africa. The establishment of the plant is a major step towards bolstering the operations

and presence of the Tata Group in South Africa.

The plant was inaugurated by South Africa's Minister of Trade & Industry, Dr. Rob Davies, in the

presence of top dignitaries from South Africa and India. Among them were Mr. Noel N. Tata, Managing

Director, Tata International, Mr. Carl-Peter Forster, Group CEO and Managing Director, Tata Motors,

Mr. Raman Dhawan, Managing Director, Tata Africa, as well as dealers and key associates of the

company.

Established with an investment of R110 million, the plant can assemble, from semi knocked down (SKD)

kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes, with an

annualised capacity of 3,650 vehicles. The capacity can be further expanded as required. The plant has

been awarded with ISO 9001 accreditation by Bureau Veritas, South Africa. To begin with, it is

assembling two models, the Tata LPT 813 and Tata LPT 1518, both already popular in South Africa.

Speaking at the event, Dr. Rob Davies said that the launch of the plant can be attributed to South Africa's

investment friendly policies. He said that the project comes at a time when the department is aggressively

pursuing an industrial development strategy for the South African Medium and Heavy Commercial

Vehicle (M&HCV) sector.

"The key focus area of the MHCV strategy is based on: Support for Market Development (Local and

Regional), development of OEM Production Capabilities and the Strengthening of the Supply Chains (1st

tier Supplier base). Industry role players have and still are part of the extensive consultation process that

accompanies the development of such a strategy. This will be an opportunity for further expansion of Tata

Motors in South Africa," added Dr. Davies

Speaking on the occasion, Mr. Carl-Peter Forster said, "With a comprehensive product portfolio, Tata

Motors is now at a stage where it can consolidate its international business in its chosen markets. The

assembly plant in South Africa is an expression of that resolve. Step by step, we shall expand the

footprint of our international business matching markets and products."

Mr. P. M. Telang, Managing Director - India Operations, Tata Motors, said, "We are very proud to

commence assembly operations in South Africa, which has traditionally been among our focus countries.

It is integral to Tata Motors' international business presence and plans. The company has already carved a

niche for itself in the country and is confident of greater opportunities."

Built over a period of 18 months, the plant is spread over an area of 34,500 sq. metres. In line with latest

world-class manufacturing practices, the plant has been equipped with state-of-the-art equipment

following lean manufacturing principles. It has built-in flexibilities to assemble large numbers and

different variants in mixed mode production, to meet the requirements of the South African market.

The entire capital outlay, encompassing civil and plant engineering work for the facility, has been sourced

from and carried out by South African suppliers and companies. In addition, all major equipment, like

heavy duty cranes, inversion mechanisms and paint booth, have also been sourced from South African

vendors. The entire workforce of the plant is from South Africa.

Training, skill transfer and development of local workforce is one of the top priorities of the Tata Group

in South Africa. The Tata Group's training processes and facilities in India have been acknowledged as

among the best. Leveraging this expertise through a robust local skill transfer and apprentice programme,

Tata Motors South Africa is committed to ensuring that skill levels of individuals employed in various

industrial trades, such as auto mechanic, welder, painter etc, are further enhanced. Tata has an already

established state-of-the-art technical training centre in Germiston, Johannesburg, operating since 2006,

for skill development of dealer mechanics in South Africa and various other countries in the continent.

Tata Motors started exports to South Africa in 1998, with commercial vehicles. Exports of passenger

vehicles began in 2004. Currently there are over 20 commercial vehicle models .from pick-ups to 49

tonne prime movers and from 14-seater buses to luxury coaches -- and 5 passenger vehicle models Tata

Indica Vista, Tata Indica, Tata Indigo, Tata Indigo SW and Tata Safari in diesel & petrol variants catering

to the needs of the South African market. The company has thus far exported over 32,000 commercial

vehicles and 31,000 passenger vehicles to the country. Tata Motors' vehicles are available across 85

dealerships, through M/s Accordian Investments (Pty) Ltd., the distributor for light commercial vehicles

and passenger vehicles, and M/s Tata Automobile Corporation SA (Pty) Ltd., the distributor for medium

and heavy commercial vehicles.

Main occupation of Tata Motors

Tata Motors is India's largest automobile company, with consolidated revenues of INR. 1,23,133 crores ($

27 billion) in 2010-11. Through subsidiaries and associate companies, Tata Motors has operations in the

UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the

two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 5.9 million

Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and

among the top three in passenger vehicles. It is also the world's fourth largest truck manufacturer and the

third largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in

Europe, Africa, the Middle East, South Asia, South East Asia and South America.

Tata motors in UK

Tata Motors is the leader in commercial vehicles and among the top three in passenger vehicles in India.

It is also the world's fourth largest truck manufacturer and the second largest bus manufacturer. Through

subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and

Spain. It also has a strategic alliance with Fiat.

In the UK, Tata Motors has set up the Tata Motors’ European Technical Centre in Warwick, engaged in

the business of design engineering and product development for the automotive industry.

In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, to be launched later in the year in

India. A development that signifies a first for the global automobile industry, the Nano brings the comfort

and safety of a car within the reach of thousands of families. The high fuel efficiency also ensures that the

car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation

solution with a low carbon footprint.

Tata Motors boosts UK production areas

The UK’s technology base has been given a major boost with the announcement that Tata Motors’

European Technical Centre is to expand its partnership with experts at Warwick University.

The TMETC plans to increase its team of highly skilled engineers by 40 per cent over the next two years.

Multinational automotive group Tata Motors has invested more than 85 million pounds in research and

development (R&D) at TMETC since it was established on the university campus in 2005.

It already has a team of 240 engineers and researchers working alongside colleagues in university

department WMG, with 60 of these hired over the last 12 months because of increased R&D investment.

The TMETC aims to increase the engineering and research force by a further 100 to 340 by 2013.

Tata Motors is India’s largest automobile company, headquartered in Mumbai, with revenues of 20

billion US dollars in 2009-10. The group is the leader in commercial vehicles and among the top three in

passenger vehicles.

In 2004, it bought the Daewoo Commercial Vehicles Company, South Korea’s second largest truck

maker. Along with many other stake holdings and joint ventures in other leading automotive companies

across the world, it owns the classic UK brands Jaguar and Land Rover.

Dr Tim Leverton, head of Advanced & Product Engineering at Tata Motors Limited, said the

announcement “represents a further demonstration of Tata’s long-term commitment to build and develop

R&D facilities here in the UK. TMETC plays a vital role in Tata Motors’ global R&D network.

“Tata Motors gets access to world-class thoughts, skills and technologies through the TMETC and its

collaboration with WMG. The contribution of TMETC and WMG is important to Tata Motors becoming

an international company,” he added.

Through this arrangement TMETC’s engineers work alongside researchers at WMG - a university

department occupying a unique position between academia and industry, formerly known as the Warwick

Manufacturing Group - in low-carbon technology collaborative R&D programmes.

They have already started to produce tangible results, for example Tata Motors’ Vista electric vehicle that

will be built at a nearby factory in Coventry and will be available to fleet customers in the UK later this

year.

Tata Motors’ Pixel city car, which was unveiled at the 2011 Geneva Motor Show, has also been

developed on the WMG campus. Based on the Tata Nano, the Pixel is a concept vehicle aimed at the

European market and features a zero-turn infinitely variable transmission that gives it a turning circle

radius of 2.6 metres, making it ideal for dense urban environments.

At just over three metres in length the Pixel is claimed to be “the most package efficient four-seater in the

world,” comfortably accommodating four adults.

The zero-turn toroidal traction-drive transmission assists rotation of the outer rear wheel forwards and the

inner rear wheel backwards, while the front wheels turn at acute angles to achieve its exceptionally tight

turning circle radius.

“Scissor” doors rotate upwards from the front to allow passengers to enter or exit the Pixel, even in the

tightest of spaces.

The vehicle is also designed to provide a high level of connectivity. Key functions are controlled by the

driver’s smart phone, running My Tata Connect, the first integrated human-machine interface concept

from Tata Motors.

Nick Fell, Tata Motors’ European Technical Centre’s director, said: “WMG and TMETC are building on

five years of successful partnership to further grow TMETC’s presence at the University of Warwick.

“We plan to further increase our team on the campus by up to 100 over the next two years, and are

discussing establishing test and development facilities here. This shows a clear commitment to build and

develop our R&D and facilities in the UK in collaboration with WMG for the long term.”

This was supported by WMG’s director Professor Lord Bhattacharyya who said “Technology businesses

such as Tata are crucial to us solving global challenges that will require new thinking energy, climate-

change related technologies.

“Tata’s work alongside WMG will meet those challenges and will even lead the field in new low-carbon

technologies. Tata’s Pixel concept city car is a clear symbol of Tata’s current technological prowess and

its future aspirations.”

The partnership announcement came shortly after research by the Council for Industry & Higher

Education that indicates that the UK’s manufacturing sector could be re-energised by a closer

collaboration between companies and the science and technology departments at top universities.

As well as working with more than 500 UK companies, the university’s WMG is an international unit

with collaborative centres in the UK, China, India, Malaysia, Russia, Singapore and Thailand.

Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519 crore ($20

billion) in 2009-10. Through subsidiaries and associate companies, Tata Motors has operations in the UK,

South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two

iconic British brands. It also has an industrial joint venture with Fiat in India.

Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger

vehicles. It is also the world's fourth largest manufacturer of medium / heavy commercial vehicles, and

the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries

in Europe, Africa, the Middle East, South Asia, South East Asia and South America.

The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing

commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. It

has, since, developed Tata Ace, India's first indigenous light commercial vehicle, Tata Safari, India's first

sports utility vehicle, Tata Indica, India's first indigenously manufactured passenger car, and the Nano,

the world's cheapest car.

Areas of business 

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy commercial

vehicles.

Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002

and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiat’s cars in India.

Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.

Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to

heavy dumpers and multi-axled vehicles in the above 40-tonne segment.

Passenger buses: The company also manufactures and sells passenger buses, 12-seaters to 60-

seaters, in the light, medium and heavy segments.

Tata Motors in Africa

In a period of just three years, Tata Motors has emerged as the third-largest player in South Africa's

commercial vehicles market, and one of the fastest growing brands in the passenger vehicles segment

Tata Motors has played a major role in Tata Africa's origins and current operations in Africa. The

journey began in the 1970s with the marketing of Tata Motors' heavy vehicles in Zambia. In the 1990s,

Tata Africa expanded its automotive operations to Tanzania, Zimbabwe, Malawi, Namibia,

Mozambique, Uganda and Ghana. Today, Tata Motors' vehicles enjoy leading positions in several

vehicle segments in South Africa and Zambia.

Tata Motors offers a range of passenger, multi-utility and commercial vehicles: 

Passenger cars: 

The popular Indica 

Commercial vehicles: 

Telcoline, an all-terrain vehicle suitable for both commercial and private use 

Heavy commercial vehicles: 

Tata Novus' new range of Tata Daewoo tippers and tractors 

Tata Ubuntu and other bus models 

Over the years, the company has established a strong distribution and marketing network with the help

of various country-specific Tata Africa subsidiaries. In Ghana, operations cover both vehicle sales and

after-sales. Tata Uganda, set up in 1994, conducts vehicle sales and after-sales business. In Mozambique,

Tata De Mozambique Lda (TDML) is engaged in sales and service of Tata vehicles.

South Africa has played an important role in the success of Tata Motors in Africa. Launched in South

Africa in 2004, the Indica set the record for the most successful car launched in the country. A bus-body

fabrication plant was set up in 2004 to build indigenously designed buses that are now sold in Zambia,

Ghana and Mozambique. The company enjoys a leading position in tippers, medium commercial

vehicles (MCV) and heavy vehicles. Recently, Tata Africa Holdings has acquired a Nissan

manufacturing plant in South Africa.

Sustaining its leading position in South Africa, the company recently introduced more commercial and

passenger vehicle models: 

Safari Dicor, to be available in early 2007. 

Commercial vehicles, new trucks (6 and 10 tonners), tippers (2-6 cubic metre capacity) and

bakkies (1.3-tonne flat-bed) are being launched. These vehicles are aimed at meeting diverse

transportation needs in South Africa. 

The new models are on display at Auto Africa 2006 in Johannesburg. Exhibited along with new models

are, for the first time at the expo, two 'concept cars' — Tata Crossover, a 'crossover' vehicle concept, and

Tata Cliffrider, a multi-utility 'lifestyle' vehicle. Speaking about the new models, Ravi Kant, managing

director, Tata Motors, said, "Our endeavour now is to expand our range with improved applications, to

reach out to more customers and build a lifetime relationship."

Future plans for South Africa are upbeat. "We are looking at increasing our logistical efficiency besides

considering options to set up an assembly unit in South Africa. We are also looking at using South

Africa as a source for components," says chief financial officer Praveen Kadle. The only commercial

vehicle assembly unit the company has outside India is in Bangladesh. Tata Africa managing director,

Raman Dhawan, defines future areas of growth and says, "Towards the end of this year, we would be

entering the Nigerian and Kenyan markets with our range of commercial vehicles."

Apart from the stronghold the company has in South Africa, Tata Motors is among the top automotive

players in other countries as well. 

In Zambia, the company is at the forefront in the medium commercial vehicles segment. In Ghana, the

company recently launched a range of passenger vehicles that includes the Indica hatchback, Indigo

sedan and Indigo Station Wagon, along with the multi-utility vehicle Sumo and the Safari Dicor.

According to Divyendu Kumar, head of Tata Motors' international business for the passenger car units,

the new models will offer superior value to customers in the traditionally important Ghana market.

The company is also making progress in other countries such as DR Congo, Ivory Coast, Kenya,

Madagascar, Senegal, Tanzania, and Uganda. It is looking at options such as setting up assembly lines,

re-working its price and product positioning, improving logistics and accessing local sources.

The Tata journey in Africa, which began over three decades ago, has continued uninterrupted, with more

milestones crossed and new strengths gained. Leading the way is Tata Motors, with its ever-expanding

range of luxury and utility vehicles that promise a smoother ride ahead and more milestones to be

crossed on the road to excellence.

Ventures/ Company of Tata Motors:

Jaguar Land Rover

 Jaguar Land Rover Automotive Trading (Shanghai)

Jaguar Land Rover Automotive Trading (Shanghai) is the company that handles the China

operations of Jaguar Land Rover (JLR). The company's main activities are the import and

distributionof JLR's range of premium sedans and SUVs in China. Headquartered in Shanghai,

the company has a corporate office in Beijing, three distribution facilities (a fourth one to be

opened soon) and two technical training academies.

JLR China sells its exclusive range of products through a distribution network of approximately

60 dealers, providing sales and service coverage across the country. In 2010, it sold

approximately 26,000 units in the country, making it the third largest market for Jaguar Land

Rover in the world. Given its size and maturity, China has the potential to become JLR's largest

global market within the next few years.

Jaguar Land Rover is a business built around two iconic British car brands that designs,

engineers and manufactures in the UK.  With investment in product creation topping £1 billion a

year, Jaguar Land Rover is at the centre of the UK automotive industry’s drive to deliver

technical innovation in all areas of vehicle development.

The Jaguar Land Rover business directly employs more than 18,000 people and supports

approximately 130,000 jobs (through direct employment, dealers, suppliers and broader

economy). Jaguar Land Rover exports annually generate almost £6 billion for the UK economy

with 78 percent of Land Rovers exported to over 160 countries and 70 percent of Jaguars

exported to over 60 countries.

Jaguar Cars Limited, founded in 1922, is one of the world’s premier manufacturers of luxury

saloons and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that

define 'breadth of capability' in their segments. The Jaguar XF, XK and XJ models are

manufactured at the company's Castle Bromwich plant in Birmingham. Land Rover's Defender,

Discovery 4, Range Rover Sport and Range Rover models are all built at the Solihull plant.  The

Land Rover Freelander 2 is built at the Halewood plant in Liverpool.

Jaguar Land Rover is a business built around two great British car brands with exceptional

design and engineering capabilities. Jaguar Land Rover’s manufacturing facilities are in the UK.

Areas of business

Jaguar Cars, founded in 1922, is one of the world’s premier manufacturers of luxury saloons and

sports cars. Land Rover has been manufacturing 4x4s since 1948. Its products have defined the

segments in which they operate.

Jaguar Land Rover’s manufacturing facilities are in the UK. The Jaguar Land Rover business

employs over 16,000 people, predominantly in the UK, including some 3,500 engineers at two

product development centres, in Whitley in Coventry and Gaydon in Warwickshire.

The Jaguar XF, XJ and XK models are manufactured at the company's Castle Bromwich plant in

Birmingham, UK, while the Jaguar X-TYPE is produced alongside the Land Rover Freelander 2

at the Halewood plant in Liverpool, UK. Land Rover's Defender, Discovery 3, Range Rover

Sport and Range Rover models are all built at Solihull, UK.

The business is a major wealth generator for the UK, with 78 per cent of Land Rovers exported

to 169 countries and 70 per cent of Jaguars exported to 63 countries. Sales to customers are

conducted principally through franchised dealers and importers.

Location

Jaguar Land Rover is based in the UK.

Subsidiaries, JVs and Associates Websites

Tata Daewoo Commercial Vehicle Company Ltd

(TDCV)http://www.tata-daewoo.com/

Tata Marcopolo Motors Ltd (TMML)  

Tata Hispano Motors Carrocera S. A. http://www.tatahispano.com/

Tata Motors (Thailand) Limited (TMTL) http://www.tatamotors.co.th/

Tata Motors(SA) Proprietary Ltd (TMSA)  

HV Axles Limited (HVAL) http://www.hvaxles.com/

HV Transmissions Limited (HVTL) http://www.hvtransmissions.com/

Telco Construction Equipment Co. Ltd. (Telcon) http://www.telcon.co.in/

TAL Manufacturing Solutions Ltd. (TAL) http://www.tal.co.in/

Tata Motors European Technical Centre plc.

(TMETC) 

Tata Technologies Ltd. (TTL) and its subsidiaries http://www.tatatechnologies.com/

TML Distribution Company Limited (TDCL)  

Concorde Motors (India) Ltd. (Concorde)  

Tata Motors Finance Limited http://www.tmf.co.in/

Tata Motors Insurance Broking & Advisory Services

Ltd (TMIBASL) 

TML Holdings Pte. Ltd. (TML)  

Sheba Properties Ltd. (Sheba)  

Tata Daewoo Commercial Vehicle Company

The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest

manufacturer of medium and heavy-duty trucks. Formerly part of the Daewoo Group, the

company was acquired by Tata Motors in 2004. With the acquisition of TDCV, Tata Motors has

grown to become the world's fifth largest manufacturer of heavy commercial vehicles. 

Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo

Commercial Vehicle Company in 2002. TDCV trucks are distributed locally through Daewoo

Motor Sales Company and are exported to over 60 countries worldwide, including South Africa

and China and countries in the Middle East, Southeast Asia and Eastern Europe.

Areas of business

TDCV has a product portfolio of over 75 types of trucks in the commercial vehicles segment. Its

product range includes flat beds, dumpers, mixers, tractors, arm-roll trucks, refrigeration trucks

and special-purpose trucks.

Location

The company’s headquarters and plant are in Gunsan, South Korea. It has an office in Incheon

and sales offices across the country.

Internationalization

As a part of the company's new internationalization strategy, the company has decided to focus

on a narrow base of 14-15 countries where market conditions are similar to that of India. In these

countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales

teams. The idea is to have self sustained operations in this narrow band of countries. The

company evaluates locations on the basis of market opportunities and labour skills. In the

framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender,

and is focusing on expanding into markets similar to those of the home base, using competencies

developed at home

Where is Tata Motors now and How to Globalize?

Korean Operations

Tata Motors entered the advanced Korean Market by acquiring Daewoo, with which it has

tremendous synergies in terms of product strategy and R & D. Tata Motors has planned to use

this merger and leverage the technology for developing a World Truck for India and international

markets.

South African Operations

In the export market, Tata Motors moved from a fragmented approach to specific markets,

chosen in terms of consumer behavior, distribution networks, supply chain, etc. and identified

South Africa as one of the best markets. The sales in this region are about 15,000 units 4. This is a

significant improvement over what Tata Motors was cumulatively exporting (8000 units) before

adopting its new internationalization strategy.

Thailand Operations

Tata Motors formed a joint venture with Thonburi Automotive Plant to enter Thailand. Thailand

is the second most competitive market for pickups, and the new pickup trucks developed here

will be sold in both domestic and export markets.

Latin American Operations

Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up truck, for Latin

American markets from Fiat's facility in Argentina. This arrangement will also see Tata Motors

forming a joint venture with a subsidiary of Iveco, the commercial vehicle division on Fiat, to set

up a distribution network.

Now that Tata Motors has established a sustainable model in some countries, its main challenge

is to replicate this model in other countries as well.

How to replicate this strategy for other markets?

Sustainable competitive advantage lies not in one, but a combination of multiple resources, each

of which individually need not necessarily be the best, but in overall weighted average terms,

presents the best solution. For Tata Motors, the combination of resources providing it

competitive superiority on a weighted average basis includes (see Exhibit 3):

1. Product Reliability

2. Service Network

3. Channel Reach

Three-way Resource Based View

In terms of product reliability, Tata Motors offers products of reasonably high standards. However,

foreign players like Volvo and even local competitors like Ashok Leyland arguably offer products that are

far more refined. But this is more than compensated by a dependable service network and extensive

channel reach. Tata's service and distributor network is by far the most extensive of any player in the

trucks industry. Hence in overall weighted average terms, Tata Motors still has a winning proposition.

Recommendation Matrix

Based on a close scrutiny of the resource based view of Tata Motors and the challenges it faces, we

propose a recommendation matrix arranged along three broad dimensions - Tangible, Intangible and

Capabilities

Three Dimensional Recommendation Matrix

Tangible

The strategies in this domain are primarily directed at sustaining Tata Motors' first mover

advantage with respect to its offering in the Small Commercial Vehicle segment - ACE.

Strategy Sustaining the First Mover's Advantage of ACE

National

Footprint

Tata Motors has an unparalleled network of dealers and service stations across the country

for Medium and Heavy Commercial Vehicles (M and HCV). However most of these service

stations are along inter-city routes. It would need to replicate this network at intra-city level

for its hugely successful SCV - the Tata ACE. For this Tata Motors can liaise with small

garages, train them and certify them as 'Tata Authorized Service Station'.

Product

Portfolio

Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata

Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as

a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose

positioning to a mass customization positioning for ACE, wherein multiple variants are

offered on the ACE platform, each uniquely suited for a specific application - such as

tippers, long base trawlers, milk carriers.

Intangible

In intangible terms, Tata Motors needs to bolster its brand loyalty, by providing a unique

customer experience.

Strategy Intangible Assets

Unique

Customer

Experience

In commercial vehicles industry, the uniqueness of customer experience is largely driven

by the efficacy of the 'Support' framework. If your car breaks down, you can take a taxi

to office. But that's not so for a transport operator. For him, his vehicle is at the heart of

his business and hence responsive after-sales support is critical. Minimizing downtime

calls for a service network that is highly responsive and easily accessible. Besides, Tata

Motors should also

1. Consider introducing mobile service units for Tata ACE that can respond to customer

calls anywhere within a given city.

2. Start treating "Services" as a dedicated profit center. Towards this end, the company

should "productize" annual maintenance contracts.

Brand

Reputation Building a reputation will help sustain sales, without having to engage in discount sales.

Capabilities

There are two broad capabilities that Tata Motors should seek to acquire.

Strategy Capability Acquisition

Technology

Appropriation

Technology Appropriation is the key to Tata Motor's ambitions to offer products with

engines larger than 210 HP. As the share of ultra heavy commercial vehicles grows,

the company will need to face up to technologically superior players like Volvo. Here,

Tata will have to carefully spearhead its 'World Truck' program by carefully

coordinating technology appropriation from its numerous international technology

partners, notably Daewoo, Fiat and Hispano.

Robust Supply

Chain

Tata Motors has made significant investments in IT systems to network its

countrywide service network. This helps them maintain very high spares parts

availability at their service stations and minimize downtime. In the years to come, it

would need to include their SCV service station within this framework. This will

however be a big challenge, since these service stations would largely be managed by

illiterate and not-so-tech-savvy repairmen.

Contingency Plans

1. Mass customization has its own shortcomings. Firstly, it puts a disproportionate amount of

strain on the company's supply chain. And this is a wasted effort in case the demand patterns

aren't properly understood. Hence we propose that the sales of the customized vehicles be

closely tracked and in case sales achieved within a reasonable timeframe do not merit the

additional resource outlay, then the company should revert to the original multipurpose

positioning.

2. In the background of rupee appreciation, exports will become costly. Hence it is prudent to

open integrated production plants in other countries rather than just concentrating on exports.

A few pointers on what Tata Motors ought not to do are captured below:

1. Compete on price because proportion of individual players is low. Instead differentiate

through service.

2. Engage in rapid capital expansion given the high debt to equity ratio. Use ring fencing

judiciously.

3. Focus on rapid acquisitions and instead focus on consolidation in the foreign market.

4. Lose focus on the 'Value for Money' positioning, especially in the soon to be launched

offering in the Ultra Heavy Commercial Vehicle segment

Culture over view

In the country the sustainable factor which will be highly influence the motor sectors to grow in such a

way to success is mainly the culture of the areas this is important aspects when the company want to grow

in the particular country so main objective peoples behaviors and the acceptance so they are the main

consideration when globalization take place and the political and geographical aspects also play a roal in

the company this are the main issues in the any company to be the success so they will consider the main

aspect in the international business.

Reference:

Sours: http://www.time.com/time/world/article/0,8599,1881404,00.html#ixzz1cZDSfj00

http://www.ukti.gov.uk/investintheuk/sectoropportunities/moresectors/item/157760.html

http://www.tatamotors.com/media/press-releases.php?id=693