tata motors pestel analysis

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Page 1: Tata Motors PESTEL Analysis
Page 2: Tata Motors PESTEL Analysis

Tata Motors•Tata motors is a part of Tata group and was established in 1945.

•It entered the segment in 1954.

•TML started business in a collaboration with Daimler Benz, this partnership has made TML India’s largest automobile company.

• Till date 8 million Tata vehicles are plying on the road.

Page 3: Tata Motors PESTEL Analysis

PESTEL• PESTEL analysis means Political, Economical, Social,

Technological, Environmental and Legal analysis.

• It is a standard way of analyzing macro-economical forces which impact a company or a corporation.

• Every organization is started with a pre-determined

objective, commonly known as the ‘mission’.

• PESTEL analysis helps to infer whether a particular factor is helping the organization to achieve its goals or is acting as an impediment in its road to success.

Page 4: Tata Motors PESTEL Analysis

Politico Legal

The Singur Controversy

• TML acquired a land of 997 acres for manufacturing Nano Cars by state government support.

•But this acquisition required the displacement of farmers.

•It attracted heavy criticisms, “Save Farmland” movement was started by opposition leader Mamata Bannerjee.

•On 3rd October, 2008, TML closed its plant from Singur.

•It was later established in Sanand, Gujarat.

Page 5: Tata Motors PESTEL Analysis

Economical

• TML’s economic scenario is quite promising with GDP growth rate around 7%.

• However, high interest rates and low freight availability impacted its financial infrastructure in first quarter of 2013.

• During the same time, price pressure from competitors also marred its financial position.

• The commercial vehicle segment of TML gave it an edge over others at this time and the big and mid sized vehicles helped TML to regain its ground.

Page 6: Tata Motors PESTEL Analysis

Social• Where ever TML goes, may it be domestic or international

markets, it hires mostly the local population generating employment.

• Due to its age long history and its welfare activities, Tata enjoys full public support.

• TML is also involved in philanthropy and supports around 600 NGOs.

• Tata also works towards provided high standards of education to students.

• Some of the institutes opened and managed by Tata are Indian Institute of Science, Tata Memorial Centre, Tata Institute Social Sciences, etc.

Page 7: Tata Motors PESTEL Analysis

Technological• In order to adapt with the latest technology TML owns Tata

Technologies Limited.

• TTL helps TML in the upgradation of designs and technology.

• Tata faced a technological hurdle when two units of its revolutionary Nano cars caught fire in the year 2009.

• After forensic investigation TML released the word that the two incidents werent related in 2010.

• It assured the customers that Nano is perfectly safe.

• TML even increased the warranty of Nano cars from 6 months to 4 years.

Page 8: Tata Motors PESTEL Analysis

Environmental• TML manufactures its vehicles according to the norms of

Indian and Euro standards of emission.

• TTL is fostered by Tata to manufacture greener cars with low fuel consumption and lowest emission gases possible.

• TML has invested huge sums of money in its R&D section to produce eco-cars.

• As an eco-friendly company, TML has also invested in various “Green Earth, Clean Earth” campaigns.

• It has also worked towards the stopping of deforestation many years in a row.

Page 9: Tata Motors PESTEL Analysis

Conclusion

• Tata motor is a well known Indian brand, known for its quality, reliability and safety of its vehicles.

• Tata motors recently come into news when it manufactured the world’s cheapest car Nano.

• Tata motors is a leader in its domestic market with a market share of 70%.

• Tata motors established stronghold internationally with its collaboration with Jaguar and Land Rover.

• Tata motors is also known for its good reasons by providing financial help to NGO’s, trusts, educational institute and monetary help to needy students by providing scholarship.