*http://books.google.co.in/books?id=nDEEAAAAMBAJ&pg=PT53&dq=tata+nano+suppliers&lr=&ei=IA_wS-2VB5KMkASm-ZydCg&cd=11#v=onepage&q=tata%20nano%20suppliers&f=false** local component manufacturers will save about Rs 16 lakh per month as transportation charges, for nearly 400 tonnes of spare parts that they sent to Singur. Vendors will also get benefit---http://www.dancewithshadows.com/autoindia/how-tata-nano-project-will-benefit-gujarat/
1.) CRISIL Research estimates the consumer price of the car at around Rs 1.3 lakh. This brings down the cost of ownership of an entry level car in India by 30%
UNDER THE GUIDANCE OF
The automotive industry began in the 1890s with hundreds of manufacturers that
pioneered the horseless carriage
After World War II, the U.S. produced about 75 percent of world's auto production. In
1980, the U.S. was overtaken by Japan and became world's leader again in 1994.
In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when
China took the top spot with 13.8 million units
With 19.3 million units manufactured in 2012, China almost doubled the U.S. production,
with 10.3 million units, while Japan was in third place with 9.9 million units
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but
in very small numbers.
In 2002, the Indian government formulated an auto policy that aimed at promoting
integrated, phased, enduring and self-sustained growth of theIndian automotive industry
Allows automatic approval for foreign equity investment up to 100% in theautomotive
sector and does not lay down any minimum investment criteria.
Ensure a balanced transition to open trade at minimal risk to the Indianeconomy and local
Promoting multi-model transportation and the implementation of mass rapid transport
Economic pressures on the industry are causing automobile companies toreorganize the
traditional sales process.
Weighted tax deduction of up to 150% for in-house research and R & Dactivities.
Govt. has granted concessions, such as reduced interest rates for exportfinancing.
Several Indian firms have partnered with global players.
While some haveformed joint ventures with equity participation, other also has entered
Since changed lifestyle of people, leads to increased purchase of automobiles,
so automobile sector have a large customer base to serve
Indian customers are highly discerning, educated and well informed. Theyare
price sensitive and put a lot of emphasis on value for money.
Preference for fuel efficient cars with low running costs
The Government of India is promoting National Automotive Testing andR&D
Infrastructure Project (NATRIP)to support the growth of the autoindustry in India
Technological solutions helps in integrating the supply chain, hence
reducelosses and increase profitability
Major global players like audi, BMW Hyundai etc have setup their manufacturing
units in India.
Physical infrastructure such as roads and bridges affect the use of automobiles. If
there is good availability of roads or the roads are smooththen it will affect the use
Physical conditions like environmental situation affect the use of automobiles. If
the environment is pleasant then it will lead to more use of vehicles.
Legal provision relating to environmental population by automobiles.
Legal provisions relating to safety measures
Ensure a balanced transition to open trade at minimal risk to the Indianeconomy
and local industry
ISSUES AND CHALLENGES
The rapid development of the low-cost labour economies in Eastern Europe, South East
Asia, China and India is putting enormous pressures on labour intensive suppliers
Increasingly, environmental considerations and public opinion are driving manufacturers'
decisions around the mix of materials used in manufacturing, the types of engine and the
end of vehicle life (ELV)
Supply chain management and cost reduction
In the age of global trading, supply chains never stand still.
Therefore, supply chain architectures must be kept under constant review in order for then
to be both logistically efficient and cost effective.
Rapid economic developments in emerging markets, notably China and India, are providing
significant opportunities to increase sales and reduce costs
Founded in 1945 as a manufacturer of locomotives, the company manufactured
its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which
ended in 1969
Tata Motors Limited (formerly TELCO, short for "Tata Engineering and Locomotive
Company") is an Indian multinational automotive manufacturing company
Its products include passenger cars, trucks, vans, coaches, buses and military vehicles.
It is the world's eighteenth-largest motor vehicle manufacturing company, fourth-largest
truck manufacturer and second-largest bus manufacturer by volume.
Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the
BSE SENSEX index, the National Stock Exchange of India and the New York Stock
Exchange. Tata Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the
world's biggest corporations.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa,
Thailand and the United Kingdom. It has research and development centres in Pune,
Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United
To be passionate in anticipating and providing the best
vehicles and experiences that excite our customers globally.
Most admired by our customers, employees, business
partners and shareholders for the experience and value they
enjoy from being with us.
• Tata Power Delhi Distribution by winning hearts and changing
mindsets, and through technology and commercial savvy
• transformed a loss-making government entity into an efficient
and profitable operation that has become a benchmark for
• Tata Group companies cumulatively spend Rs.12,500 crore on
research & development.
• knowledge-based engineering application software from Tata
Technologies that speeds up results.
• An engine ‘start-stop’ technology developed by Jaguar Land Rover
that stops an engine when the vehicle isn't moving, thus saving on
• High performance rail steel that saved £150,000 over five years was
developed by Tata Steel Europe
• High standard steel for safer and fuel efficient vehicles from Tata
• The world's cheapest car, Nano, an innovation from Group company
Tata Motors, launched in April 2009, has 37 patents,
• Swach, the cheapest water filter from Tata Chemicals, has 14.
• Tata Steel, which acquired British company Corus in 2007,
meanwhile, files around 50 patents each year.
• P2 or pollution prevention is a proactive strategy that
uses fewer or smarter resources to begin requiring
lesser cleanup at the final disposal.
• It is done by reducing or eliminating waste at the
source by modifying production processes, promoting
the use of non-toxic or less-toxic substances,
implementing conservation techniques, and re-using
materials rather than putting them into the waste
• It assumes no waste will occur. It is an effective ‘getting
more from less’ strategy.
• Reducing packaging material by either using
sustainable packaging (replacing wood with
metal) or reusing existing packaging (recycling
• The company recycles close to 69 percent of the
wood packaging thus eliminating use of fresh
• The company aims to source 60% of its
components from the park thereby increasing its
resource efficiency and reducing its emissions
due to reduction in logistics and transportation.
• This is a ‘getting more from the same’ strategy where
otherwise wasted resources are recovered by way of
proper disposal – recycling or reconditioning.
• Increasing life of aggregates – ‘Recon’ business
• In 2010-11 a total of 13,788 engines and 8,690 other
parts were reconditioned.
• Other resource conservation techniques like reusing
engine oil for multiple testing cycles has been
• A 200 litre engine oil barrel can now be used to test
170 engines instead of 85.
• Reusing paint sludge and thinner
• Last year, approximately 390 tonnes of hazardous
paint sludge was converted to a low quality paint
suitable for floor painting.
• Tata Motors has also developed a process to convert
the incinerator ash to pavement bricks that can be
used in walkways within the plant.
• This model has been very successful and has
significantly reduced the amount of hazardous
incinerated ash sent to landfills.
• CONSOLIDATED net profits of Rs 1988.73crores for the quarter ended June30, 2010 on
the back of strong sales in the domestic market and a good show of J&LR.
• A strong faith of Indian people in Tata brands.
• A group global sale grows by 36% at 90,646 vehicles in July 2010.
• Market leader in commercial vehicles.
• largest car seller in passenger car vehicles.
•largest truck manufacturer.
•largest bus manufacturer.
• Cases of fire in Nano Cars.
• Image of Taxi for Tata Indica.
• Less no of service station as comparison to Maruti Suzuki.
• Fastest growing market for small cars in India.
• Positive business outlook for both commercials and passengers vehicles in the Indian
market would give a boost to Tata Motors ‘Indian operation.
• Crisil raised its long term debt rating to AA-.
• Reflecting an improvement in the ability of the Auto Major to repay loa
• Entries of foreign players in Indian automobile sector.
• Stiff competition from Maruti Suzuki and Hyundai.
Value Chain & Value System of TATA motors
Transporters, Convoy Drivers
Dealer Network, Marketing
Research Firms, Vehicle
SAP , VCM
SAP , CRM - DMS
Suppliers , Contractors
Regional Warehouses, Dealer
Workshops, Distributors, TASS
Long term contract with service provider’s – transporters and
Personnel at regional offices for over seeing the smooth transit
Transparency and monitoring through deployment of IT – all
transactions through SAP.
DTL (daily transport logistics) supplies for critical high value
Efficient storage facilities – easy storage and retrieval.
Capital Equipment Manufacturing division – tooling development capabilities
of global standard.
Apprentice Trainee Course – ensuring stable source of skilled manpower.
Kaizen & TPM(total productive management) team – continuous drive to
Automated manufacturing processes.
Distributed manufacturing – Assembly units at South Africa, Thailand,
Bangladesh, Brazil etc.
Maintenance – technical competence.
Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop
Stockyards, all across the
Long term contracts with transporter’s – higher volume of
business to transporters ensures competitive price.
Regional Sales Office and Vehicle Dispatch Section linked through
Efficient security system for prevention of any kind of pilferage.
Marketing & Sales
Structured approach to understanding the requirements of individual customers
conducted at regular intervals.
Clear identification of product requirements, leading to development of
innovative products – Tata 207 DI, Tata Ace
Pan India presence and global footprint.
Independent teams for addressing the requirements of institutional customers –
Defense, State Transport Units
Helping to augment the scarce resources – Fiat selling vehicles through Tata
dealerships, in return Tata has access to Fiat’s technology and unutilized capacity.
Quick assessment of the changing market dynamics and consumer preferences –
Tata 407 LCV
Large network of dealers – use of technology (CRM-DMS).
Easy availability of spare parts.
Efficient collection of data from field and communication to the
Pan India presence, as well as global presence.
Large network of workshops – Dealer workshops and TASS.
Training facilities – for dealer end and TASS personnel.
Threat of new entrants is
Tata NANO Advantages
Threat of new
Entry Deterring Price
Yes, The Price is Rs
Retaliation by TATA in
case of competition
Yes, because of large
High Entry Costs
Yes,TATA spent Rs 17oo*
crore as initial
investment + 4 years on
Medium because of
HIGH because of its
Other Cost advantages
Bargaining Power of Buyers is
Price , Durability ,
Large number of
Easy Availability of
•Car has passed the
full frontal crash and
side impact crash
•Passed Govt. Test of
Bargaining Power of Suppliers
is influenced by
Threat of Substitute product is
Threat of substitute
Same category -NO
Yes, but, minimal
extent e,g. High end
bikes and other car
models like Reva,Alto
Time Lag in
availability of same
Quality of substitute
Quality influences the Low in short term
Rivalry among Existing
competitors is influenced by
Low among same
Negligible in short
Size of payoff
Depends on Volume
switch to other
ARTICLES OF TATA MOTORS
Tata Motors hit record high as Jaguar Land Rover
reports good sales in August
Sep 11, 2013, 03.59AM IST
MUMBAI: India's largest truck and bus maker Tata Motors hit its record high beating
analysts price targets fuelled by its British subsidiary Jaguar Rand Rover's (JLR)
reported record sales in August, its plan to sell vehicles in Indonesia and its
marketing alliance with Malaysian conglomerate DRB-HICOM for distribution and
assembly of its commercial vehicles in that country.
Investors should start buying Tata Motors on
decline, say analysts
Sep 11, 2013, 12.43PM IST
MUMBAI: Tata Motors surprised the street following a sharp rally of over 17
per cent in the month of September. The major upside was seen yesterday as
it rallied over 10 per cent after its subsidiary Jaguar Land Rover (JLR)
reported strong sales for the month of August.
According to analysts, while there may be more upside for the stock on hopes
of better sales from JLR, it has run up sharply and investors should use
correction to start accumulating.
JLR to invest £1.5 bn in new tech, create 1,700
Sep 10, 2013, 10.38 AM IST
Tata Motors -owned Jaguar Land Rover (JLR) has announced
a major investment boost of £1.5 billion to introduce a
technologically advanced aluminium vehicle architecture in a
new range of models
The company will create as many as 1,700 new jobs IN
England to meet the requirements of the enhanced product
TATA MOTORS TO LAUNCH DIESEL NANO
September 4, 2013
NEW DELHI: Tata Motors will launch a diesel-powered version of its ultra-cheap
Nano by the end of March 2014, its managing director said, hoping to kick-start
demand for the model after years of disappointing sales. Launched to great fanfare
in 2009 as the world's cheapest car, the Nano has been dogged by poor sales, which
slumped 27 percent in the company's financial year that ended on March 31. Asked
when the diesel-powered Nano would go on sale, Karl Slym told...
Tata Motors launches the brand new-look high-tech
showroom in Bangalore
Tata Motors' new format showroom brings luxury segment type customer
The best-in-class showroom offers:
Video walls highlight key car features
Wi-Fi connected, luxurious customer lounge area
Specially trained staff for customer care
Branded accessories and lifestyle merchandising
Tata Motors today opened its new look, stylish, tech-savvy, best-in-class showroom,
for superior customer experience in Bangalore. The new showroom offers a
contemporary-styled, single-point hub for 3- S (Sales, Service and Spare Parts) facility.