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Tata Motors PESTEL Analysis
Tata Motors is a major Indian automobile company established in 1945. It entered the passenger vehicle segment in 1954 through a collaboration with Daimler-Benz. This partnership helped Tata Motors become India's largest automobile manufacturer, producing over 8 million vehicles to date. A PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors influencing an organization. For Tata Motors, these include land acquisition issues, economic conditions, social responsibility programs, investments in green technology, and compliance with emission standards.
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Tata Motors PESTEL Analysis
- 2. Tata Motors •Tata motorsis 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.
- 3. PESTEL • PESTEL analysismeans Political, Economical, Social, Technological, Environm ental 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.
- 4. Politico Legal The SingurControversy • TML acquired a land of 997 acres for manufacturing Cars by state government support. Nano •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.
- 5. Economical • TML’s economicscenario 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.
- 6. Social • Where everTML 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.
- 7. Technological • In orderto 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.
- 8. Environmental • TML manufacturesits 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.
- 9. Conclusion • Tata motoris 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.
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