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1. INTRODUCTION
TATA MOTORS, India’s largest motor company was founded by Mr. JRD Tata in
1945 with its headquarters in Mumbai. The company has shown consolidated
revenues of INR 1, 65,654 crores for the financial 2011-12. It is the world's fourth
largest truck and bus manufacturer. The company's manufacturing base in India is
spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar
Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Tata
Motors is also expanding its international footprint, established through exports since
1961. The company's commercial and passenger vehicles are already being marketed
in several countries in Europe, Africa, the Middle East, South East Asia, South Asia,
CIS, Russia and South America. The company‟s vision is to be ''best in the manner in
which we operate best in the products we deliver and best in our value system and
ethics.''
Tata Motors Limited (TML), a USD 42 billion organization, is India’s largest
automobile company by revenues. The company is a leading global manufacturer of
cars, utility vehicles, buses, trucks and defence vehicles and is working towards
developing Smart Mobility Solutions for Smart Cities. Tata Motors is also developing
a smart range of EVs, to accelerate the adoption of Electric Vehicles (EV) in the
country, supporting the government’s mission on electric vehicles.
Incorporated in India, in the year 1945, Tata Motors is a part of the USD 100 billion
Tata group and has operations across India, UK, South Korea, Thailand, South Africa,
and Indonesia.

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A leader in the Indian commercial vehicle market, Tata Motors also ranks amongst
India’s top passenger vehicle manufacturers, with over 9 million vehicles plying on
Indian roads. The company has played an instrumental role in transforming the
country into a destination for world-class automotive manufacturing and continues to
work towards building the nation. Tata Motors has always been at forefront of
innovating technologies and providing products and experiences catering to the
discerning needs of our customers across both passenger and commercial vehicles
business. With its corporate brand identity - Connecting Aspirations, Tata Motors
continues to create segment-defining products that will fire up the imagination of
customers - generation after generation; reiterating the company’s promise of offering
better journeys. With some of the worlds’ most iconic brands, including Jaguar Land
Rover in the UK, Tata Daewoo in South Korea, and a network of 76 subsidiaries
globally, the company has consolidated its position as the Tata Motors Group. In
India, Tata Motors’ presence cuts across the length and breadth of the country with a
manufacturing base spread across its biggest industrial hubs; Jamshedpur (Jharkhand),
Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand
(Gujarat) and Dharwad (Karnataka).
Recognized for its world-class quality, originality, engineering and design excellence,
the company is on the path of shaping the future of mobility in India. With a strong
team of 4,500 engineers, scientists and technicians at the company’s Engineering
Research Centre, Tata Motors’ R&D centers span multiple geographies, including
Pune (India), UK and South Korea. For the rapidly changing automotive environment,
Tata Motors launched its sub-brand – TAMO. TAMO acts as an incubating center of
innovation towards new technologies, business models and partnerships in order to
define future mobility solutions. It operates as an agile, ring-fenced vertical, in the

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first step on a low volume, low investment model to provide fast tracked proves of
technologies and concepts. TAMO will transform the experience of interfacing and
interacting with customers and the wider community. It will provide a digital
ecosystem, which will be leveraged by Tata Motors to support the mainstream
business in the future.
Sustainability and the spirit of ‘giving back to society’ serves as the guiding
philosophy at Tata Motors; along with good corporate citizenship, which is strongly
embedded in the company’s DNA. Through the Affirmative Action Programmed, it
has touched the lives of more than 5 lakh people in FY 16-17.
In June 2008, we acquired the Jaguar Land Rover business from Ford Motor
Company. Jaguar Land Rover is a global automotive business, which designs,
manufactures and sells Jaguar luxury sedans and sports cars and Land Rover premium
all-terrain vehicles as well as related parts, accessories and merchandise. The Jaguar
Land Rover business has internationally recognized brands, a product portfolio of
award-winning luxury performance cars and premium all-terrain vehicles,
brandspecific global distribution networks and research and development capabilities.
As a part of our acquisition of the Jaguar Land Rover business, we acquired three
major manufacturing facilities located in Halewood, Solihull and Castle Bromwich
and two advanced design and engineering facilities located at Whitley and Gaydon,
all in the United Kingdom, together with national sales companies in several
countries.
The company‟s Mission is “Leadership with trust.” and its objectives are enlisted as:
• Employee Focus: Make the organization a Great Place to work

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• Community Focus: Be a responsible corporate citizen
• Supplier Focus: Treat Suppliers as partners
• Shareholders Focus: Demonstrate superior results
• Customer Focus: Improve Customer Satisfaction
Tata Motors is equally focused on environment-friendly technologies in emissions
and alternative fuels. It has developed electric and hybrid vehicles both for personal
and public transportation. It has also been implementing several environment-friendly
technologies in manufacturing processes, significantly enhancing resource
conservation.
Tata Motors is committed to improving the quality of life of communities by working
on four thrust areas employability, education, health and environment. The activities
touch the lives of more than a million citizens. The company's support on education
and employability is focused on youth and women. They range from schools to
technical education institutes to actual facilitation of income generation. In health, our
intervention is in both preventive and curative health care. The goal of environment
protection is achieved through tree plantation, conserving water and creating new
water bodies and, last but not the least, by introducing appropriate technologies in our
vehicles and operations for constantly enhancing environment care.

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2. BACKGROUND
History of Tata motors
Tata Motors was established in 1945 as Tata Engineering and Locomotive Co. Ltd. to
manufacture locomotives and other engineering products. It is India's largest
automobile company, with standalone revenues of Rs. 25,660.79 crores (USD 5.5
billion) in 2008–09. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fourth largest
truck manufacturer, and the world's second largest bus manufacturer.
The company's 23,000 employees are guided by the vision to be 'best in the manner in
which they operate best in the products they deliver and best in their value system and
ethics.
Tata Motors' presence indeed cuts across the length and breadth of India. Over 4
million Tata vehicles ply on Indian roads, since the first rolled out 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, it has 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). The company's dealership, sales, services and spare
parts network comprises over 3500 touch points; Tata Motors also distributes and
markets Fiat branded cars in India.

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Tata Motors, the first company from India's engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands that was acquired in 2008.
In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's
second largest truck maker. The rechristened 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% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, with an option to acquire the remaining stake as well. Hispano's
presence is being expanded in other markets. In 2006, it formed a joint venture with
the Brazil–based Marcopolo, a global leader in body–building for buses and coaches
to manufacture fully–built buses and coaches for India and select international
markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's
pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun
production of the Xenon pickup truck, with the Xenon having been launched in
Thailand at the Bangkok Motor Show 2008.
Tata Motors is also expanding its international footprint, established through exports
since 1961. The company's commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle East, South East Asia,
South Asia and South America. It has franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia and Senegal.

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The foundation of the company's growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate
them into customer–desired offerings through leading edge R&D. With over 2,000
engineers and scientists, the company's Engineering Research Centre, established in
1966, has enabled pioneering technologies and products. The company today has
R&D centers in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain,
and the UK. It was Tata Motors, which developed the first indigenously developed
Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata
Indica, India's first fully indigenous passenger car. Within two years of launch, Tata
Indica became India's largest selling car in its segment. In 2005, Tata Motors created a
new segment by launching the Tata Ace, India's first indigenously developed mini–
truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India
and the world have been looking forward to. The Tata Nano has been subsequently
launched, as planned, in India in March 2009. A development, which 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 standard version has been priced at
Rs.100, 000 (excluding VAT and transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous
leg space and head room. It can comfortably seat four persons. Its mono–volume
design will set a new benchmark among small cars. Its safety performance exceeds
regulatory requirements in India. Its tailpipe emission performance too exceeds
regulatory requirements. In terms of overall pollutants, it has a lower pollution level
than two–wheelers being manufactured in India today. The lean design strategy has
helped minimize weight, which helps maximize performance per unit of energy

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consumed and delivers high fuel efficiency. 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.
In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in
keeping with its pioneering tradition, by unveiling its new range of world standard
trucks. In their power, speed, carrying capacity, operating economy and trims, they
will introduce new benchmarks in India and match the best in the world in
performance at a lower life–cycle cost.
The years to come will see the introduction of several other innovative vehicles, all
rooted in emerging customer needs. Besides product development, R&D is also
focusing on environment–friendly technologies in emissions and alternative fuels.
Through its subsidiaries, the company is engaged in engineering and automotive
solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high–precision tooling and plastic and electronic components for
automotive and computer applications, and automotive retailing and service
operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit
to Corporate Social Responsibility. It is a signatory to the United Nations Global
Compact, and is engaged in community and social initiatives on labor and
environment standards in compliance with the principles of the Global Compact. In
accordance with this, it plays an active role in community development, serving rural
communities adjacent to its manufacturing locations.
Presently operating in about 26 countries across 4 continents of the world, Tata stands
at the 18th position amongst the world's largest motor vehicle manufacturers. But,

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India, being the homeland of the auto-giant, offers it with the largest customer base of
all and gets to enjoy the widest model range in return. Covering a number of different
segments like those of compacts, midsize cars and utility vehicles, the current fleet
of Tata cars in India has a pretty big lot of as many as 8 models to present to its
customers. Models that are at present a part of this fleet are Tata Tiago, Tata Tigor,
Tata Altroz, Tata Yodha Pickup and Tata Nexon.
The Indian auto-market is one of the most rapidly growing markets on the planet
today, which has driven car-manufacturers from all over the world to try their luck
here. But despite the Indian auto-industry being full of national and international
brand names, very few marques are there that provide a range as varied and as smartly
assorted as the one that has been put together by Tata Motors. From the mass-volume
hatchback segment to that of luxury SUVs, Tata cars encompass several different
categories, and hence several different price brackets too. At present, the least
expensive Tata Motors car is the Tata Tiago, which comes tagged with an extremely
affordable cost of ownership of just Rs 4, 85,500.
For more than two decades now, Tata Motors in India has been a name closely
associated with quality, power, innovation and trust. Building vehicles for the rapidly
evolving India, the company has striven to bring nothing but the best in each and
every one of its offerings, one of the best examples of which is the exhilarating Jaguar
Land Rover range. Acquired by Tata Motors in 2008 from Ford Motor Company, the
JLR has been a synonym for luxury, strength, power and style in the world of cars.
Cars like these, while, on the one hand, offer all that a buyer could ever ask for in
their ride, on the other hand, tend to take away a considerable amount of their hard-
earned money as well in return for their exceptional services. One such car belonging

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to the Tata clan is Tata Harrier, which is presently the most expensive Tata car in
India thanks to its hefty price tag of Rs 13, 99,500.
Ever since the year 1998, when Tata Indica was first launched in India, the automaker
has been known for the extreme power that its engines have the capability of pumping
out and yet somehow maintain fuel-economy ratings at pretty impressive levels. This
dual-quality of its powermills has been one of the biggest USPs of Tata Motors and
has been a major factor responsible for the glorious sales record that the company
keeps in the country. Of all the Tata cars that currently feature on its Indian lineup,
Tata Tiago is the one that offers the best mileage returns. The price tag that comes
attached to this superbly efficient model features a figure of Rs 4, 85,500.
Tata Motors has always been an automaker that believes strongly in innovation and
advanced technology and uses it to not only to make its offerings better than before
but also to bring them within a closer reach of its countless buyers. Tata Nano, which
is the least expensive production car of the world, is an example of that. So is the
takeover of an 80% stake in the Italy-based design and engineering company Trilix,
which Tata carried out in 2010 to boost its styling and design capabilities. Presently
offering a total of 8 cars in India, the models that this celebrated automaker is soon
going to introduce in the market with the same innovative characteristics are Tata
Altroz EV, Tata Altroz, Tata HBX, Tata Hexa, Tata Safari, Tata Sierra and Tata
Tiago EV.
Tata Motors is a global manufacturer of passenger and commercial vehicles, utility
vehicles, buses, trucks and even defence vehicles. Their passenger cars product lineup
caters to a variety of segments, focussing on buyers with a lower spending capacity.
Their smallest car, the Tata Nano was an ambitious project, offering a car for as less
as Rs 1 lakh and it even got noticed by international audiences. While the Nano did

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enjoy some success, the micro-hatchback ran into a host of issues and is on the way to
being discontinued. Tata Motors and other Tata subsidiaries are expected to invest
heavily into electric vehicles (EV) infrastructure in India in the coming years.
In recent times, Tata Motors has been delivering some of the best looking cars for an
Indian automotive manufacturer with production-spec cars looking as good as if not
better than their auto show concepts. The company also has a global network of more
than 100 subsidiaries and associate companies, including Jaguar Land Rover in the
UK and Tata Daewoo in South Korea.
Product range of the company includes:
Passenger Cars
Our ranges of Tata brand passenger cars include the Nano, a micro, the Indica, the
Vista, the Zest and the Bolt, which are compacts and the Indigo CS and the Manza,
which are mid-sized, in the sedan category. We have expanded our passenger car
range with several variants and fuel options designed to suit various customer
preferences. Our Jaguar Land Rover brands have an established presence in the
premium passenger car category under the Jaguar brand name. There are four car lines
currently manufactured under the Jaguar brand name, including the F-TYPE two-
seater sports car coupe and convertible (including all-wheel drive derivatives) the XF
sedan (including the Sport brake and all-wheel drive derivatives), the XJ saloon, and
the new XE sports saloon, which commenced sales in May 2015. State of
Maharashtra, at Lucknow in the state of Uttar Pradesh, at Pantnagar in the state of
Uttarakhand, Sanand in the state of Gujarat and at Dharwad in the state of Karnataka.
We also operate three principal automotive manufacturing facilities in the United
Kingdom through our Jaguar Land Rover business: at Sol hull and Castle Bromwich

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in the West Midlands and at Hale wood in Liverpool. Jaguar Land Rover also
manufactures its models in India (in the Pune plant) and China with its joint venture
partner, Chary Automobile Company Ltd. Our Jaguar Land Rover business also
includes an engine manufacturing canter at Wolver Hampton in the West Midlands,
where, in Fiscal 2015, it began to build the new family of ingenious engines.
Jaguar Land Roveralsohas twoadvanceddesign and engineering facilities located at Pune,
India, Whitley in Coventry and at Gaydon in South Warwickshire, United Kingdom. We
manufacture a variety of medium and heavy commercial vehicles, which include
trucks, tractors, buses, tippers, and multi-axled vehicles, with GVWs (including
payload) of between 8 tons and 49 tons. In addition, through Tata Daewoo
Commercial Vehicles Co. Ltd., or TDCV, we manufacture a wide array of trucks
ranging from 215 horsepower to 560 horsepower, including dump trucks, tractor-
trailers, mixers and cargo vehicles. Our Prima line of trucks is aimed at its customers
in India and South Korea, and we have extended the Prima line by offering Prima LX
and multi-axle truck variants. We expect to gradually export our Prima products to
other countries such as South Africa, Russia, the other South Asian Association for
Regional Cooperation countries, the Middle East and various countries in Africa. We
also offer a range of buses, which includes the Divo Coach, the Semi Deluxe Star bus
Ultra Contract Bus and the new Star bus Ultra.
Utility Vehicles:
We manufacture a range of Tata brand utility vehicles, including the Sumo and the
Safari, which are SUVs, the Xenon XT, a lifestyle pickup, the Tata Aria, a crossover,
and the Venture, a multipurpose utility vehicle. We offer two variants of the Safari:
the Decor and the Storme. We also offer a variant of the Sumo, the Sumo Gold, and
launched the new Moves in May 2014, which is an entry level UV. There are six car

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lines under the brands of Range Rover and Land Rover in the premium all-terrain
vehicles categories: the Range Rover, Range Rover Sport, including the Range Rover
Sport SVR, the Range Rover Evoque (available in 5-door and coupe versions), Land
Rover Discovery, including the Discovery 4 which features 7-seat capacity, the
Discovery Sport and the Defender, which will cease production in Fiscal 2016.
Light Commercial Vehicles:
We manufacture a variety of light commercial vehicles, including pickup trucks and
small commercial vehicles. This includes the Tata Ace, India’s first indigenously
developed mini-truck, with a 0.75 ton payload with different fuel options, the Super
Ace, with a 1-ton payload, the Ace Zip, with a 0.6 ton payload, including a CNG
variant launched in Fiscal 2015, the Magic and the Magic Iris, including an electric
variant, both of which are passenger variants for commercial transportation developed
on the Tata Ace platform, and the Winger. In addition, we introduced a new

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generation of Ultra LCV trucks, including the Ultra narrow cab, in Fiscal 2015. We
also offer the City Ride and Star bus ranges of buses.
Medium and Heavy Commercial Vehicles:
We manufacture a variety of medium and heavy commercial vehicles, which include
trucks, tractors, buses, tippers, and multi-axled vehicles, with GVWs (including
payload) of between 8 tons and 49 tons. In addition, through Tata Daewoo
Commercial Vehicles Co. Ltd., or TDCV, we manufacture a wide array of trucks
ranging from 215 horsepower to 560 horsepower, including dump trucks, tractor-
trailers, mixers and cargo vehicles. Our Prima line of trucks is aimed at its customers
in India and South Korea, and we have extended the Prima line by offering Prima LX
and multi-axle truck variants. We expect to gradually export our Prima products to
other countries such as South Africa, Russia, the other South Asian Association for
Regional Cooperation countries, the Middle East and various countries in Africa. We

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also offer a range of buses, which includes the Divo Coach, the Semi Deluxe Star bus
Ultra Contract Bus and the new Star bus Ultra.

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3. METHODOLOGY
The purpose of methodology is to describe the process involved in research work.
This includes the overall research design, data collection method, the field survey and
the analysis of data
 Sampling Frame: The list of sampling units from which sample is taken is
called sampling frame. Jaipur City map was studied thoroughly and samples
were selected from the place in a scattered manner to get effective result.
 Sampling Technique: Convenient Sampling
 Sampling Size: Total sample size is 100. The following sample size according
to area wise is as (20 Raja park, 20 Sodala, 20 GPO, MI Road, 20 Rambagh
Circle, 20 Tank Road)
 Sampling Procedure: The selection of respondents were accordingly to be in a
right place at a right time and so the sampling were quite easy to measure,
evaluate and co-operative. It was a randomly area sampling method that
attempts to obtain the sample of convenient.
Source of data collection
Primary:
For my survey primary data have been used as a questionnaire to collect the data.
Filled questionnaires were taken. After confirming the same, the filled up
questionnaires were fed for analysis as per coding.
Secondary:

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The secondary data has been collected from the following modes:
• Journals
• Magazines
• Newspaper
• Data through internet sources
• Data collected from organization
World-class manufacturing forms the essence of Tata Motors. In the manufacturing
process, our facilities ensure that every step - from design to production to assembly -
follows the highest standards of quality. Our plants combine modern manufacturing
practices with cutting edge technology. We are home to India’s biggest engine
development facility and own the country’s only facility for full climate test and
pedestrian test. Tata Motors' overseas plants too are equipped with state-of-the-art
manufacturing and assembly lines to cater to large numbers and different variants of
vehicles. Our constant focus on automation and technology makes us the leader in
India’s commercial vehicle market and places us among the top vehicle makers in the
world.
Design gives personality to a vehicle. Our expertise in producing private and
commercial vehicles for over seven decades has helped us develop a deep
understanding of customer needs, and this has been translated as our own Impact
Design language. Our designing units in India, UK and Italy specialize in the very
latest in designing practices, such as clay modeling, digital modeling, styling,
architecture, packaging, to name a few. Our latest cars – Tigor and Nexon – are
examples of our focus on cutting-edge, global design. Our Ultra trucks are designed to

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offer global styling, enhanced driving comfort and superior performance. While
designing commercial vehicles, the designers at Tata Motors pay emphasis on safety,
maintenance, user comfort and life cycle cost, while also conveying the trendy and
trustworthy message that is the heart of Tata Motors’ design language.
Tata Motors is driven by a passion for excellence, which is reflected across all our
operations. To offer the best vehicle experience to our customers, our passionate
engineering and quality talent ensures production of superior vehicles, which has led
to the rapid growth in global demand for our products. We focus on critical issues
such as the look and feel of a vehicle, safety and efficiency, operations and
maintenance, and fuel efficiency and life-cycle cost. Our world-class engineering and
research centres are capable of carrying out complex vehicle designing through 3D
visualization and the integration of intelligent electronic vehicular control systems
with hybrid technologies. Our recent offerings, Tigor and Nexon, along with our latest
commercial vehicles, Ultra and Signa, reflect the relentless effort put in at our
technical centres. Our unmatched lead in auto technologies has helped us strengthen
our leadership position in the automobile industry.
TATA Motors is known to have a focus on the introduction of exciting mobility
solutions and keeping customers central to their organizational plans. This journey is
seen in their every department and processes. When it comes to TATA fulfilling its
mission and vision statement, it is seen the organization has instilled its values and
work ethics in every department. This instillation changes the way a department
works in every organization. Similarly, TATA is viewed to have its departments work
a certain way in order to achieve its set goals. With the help of its research and
development department, development of enterprise level vehicle diagnostics system
for achieving speedy diagnostics of complex electronics of modern vehicles has been

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made possible. Research and development has taken the initiative in telematics has
further spanned into a fleet management, driver information and navigation systems,
and vehicle tracking system using GNSS (Global Navigation Satellite Systems). To
further get closer to their vision, the organization has taken initiatives in the area of
vehicle electronics such as engine management systems, in-vehicle network
architecture and Multiplexed Wiring, Electronic Stability programs etc. which could
possibly be deployed on their future range of vehicles. Likewise, various new
technologies and systems have improved safety (gov.uk, 2018) [4], performance and
emissions of different product range which are under implementation in passenger
cars and commercial vehicles (hse.gov.uk, 2018) [3]. Through these innovations,
TATA fulfills its vision of being passionate in anticipating and providing the best
vehicles to exhilarate the customers globally. The Board takes responsibility for the
overall process of risk management in the organization. Through an Enterprise Risk
Management programmed, each Business Unit addresses opportunities and the
attendant risks through an institutionalized approach aligned to the Company's
objectives. This is also facilitated by internal audit. The business risk is managed
through cross functional involvement and communication across businesses. The
results of the risk assessment and residual risks are presented to the senior
management. The Audit Committee reviews reports covering operational, financial
and other business risk areas. This caters to their vision of achieving sustainable
performance while delivering exciting innovations. The goal behind the risk
management function operating throughout processes is to find solution to enhance
the quality of life. The traditional factory of TATA Motors is called to be more
efficient than other factories due to its production lines. At TATA, the production
process is divided between three assembly line each line is well planned with

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sophistication containing about forty to forty-five work stations. Due to a continuous
assembly line, the vehicle (end product) enters with components only and exits with
the final products. It has high degree of automation involved, this minimizes manual
labor. The materials are placed very close to the line to decrease travelling time.
Difference between manufacturing techniques adopted by TATA and other
plants
How to use the figure for better understanding:
 Assembly Line 1 contains ‘A-Block’ to ‘E-Block’ workstations.
 Assembly Line 2 contains ‘F-Block’ to ‘G-Block’ workstations.
 Assembly Line 3 contains ‘H-Block’ to ‘K-Block’ workstations.
 The Assembly line begins at ‘A-Block’ ends at ‘H-Block’.
 The arrows display one workstation being used for the production of many
other products.

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 The red dots near the workstations determine the processes each workstation is
responsible for.
 The original plant consists of more than 40 workstations however, the figure
shows only 11 workstations for simpler understanding.
TATA Motors in the second image uses different equipment and processes and the
level of automation are really high tech. it reduces the error of human intervention,
high automation leads to better safety and few incidents of accidents happening. By
doing this the quality is improved by a good amount. At every station, the material is
prepared in advance, the person on the line does not have to keep looking for
materials. Benefits of this production line are having very few chances of error and
high degree of accuracy.
The first figure shows an example of a layout of another plant. The layout shows
multiple workstations cramped in a workplace without any sequence. This can cause
the assembly line stations to remain underutilized or over utilized; this can cause the
plant to experience bottlenecks and efficiency issues. One more reason the line may
be poorly balanced is because it was based on industry timing standards and
documents which did not accurately reflect the real task timing at each station. Due to
plant following various paths, the communication between the stations can become
difficult. This can further cause a delay in movement of finished goods from one
station to another. Movement in between the stations with unclear pathways increases
the chances of accidents leading to low motivation among the employees. Unlike
other plants the assembly line at TATA Motors is flexible. As the assembly line
receives high level of investment allowing the organization to recruit skilled labor is
one of the many reason that make the plant unique. The line can take other products
and not just the product the line was primarily built for, making the line highly

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flexible to change. There are about 10-15 other products than can be made on one
line. Through this efficient process, the plant can concentrate on cost cutting.
The Company's automotive operations are further subdivided into Tata and other
brand vehicles and Jaguar Land Rover (tatamotors.com, 2018). The Company's
automotive segment operations include all activities relating to the development,
design, manufacture, assembly and sale of vehicles including vehicle financing, as
well as sale of related parts and accessories. The acquisition of the Jaguar Land Rover
business has enabled the Company to enter the premium cars market in developed
markets such as the United Kingdom, the United States, Europe and China as well as
several emerging markets such as Russia, Brazil and South Africa. Going forward, the
Company expects to focus on profitable growth opportunities in its global automotive
business through new products and market expansion. Within automotive operations,
the Company continues to focus on integration and synergy through sharing of
resources, platforms, facilities for product development and manufacturing, sourcing
strategy and mutual sharing of best practices. With the help of their quality output the
company has been able to establish a strong position in the Indian automobile industry
by launching new products, investing in research and development, strengthening its
financial position and expanding its manufacturing and distribution network. The
Company has increased its presence in the global automotive markets and enhanced
its product range and capabilities through strategic acquisitions and alliances. The
Company aims to position itself as a major international automotive company by
offering products across various markets by combining its engineering and other
strengths as well as through strategic acquisitions. All these operations and strategic
decision have lead TATA to satisfy their mission and vision of providing their

23. 23
customers with good quality products, to satisfy the demand and open markets to new
possibilities.
TATA Motors believe the foundation of its growth has been a deep understanding of
economic conditions, an idea of customer needs and the ability to translate deep these
understandings into desirable products through research and development. The ERC
in India and Jaguar Land Rover engineering and development operations in the United
Kingdom have identified areas to leverage the facilities and resources to enhance the
product development process and achieve economies of scale. These advantages were
obtained due to evaluations of quality gateways done internally within the company.
Furthermore, the Company has a wholly-owned subsidiary, Tata Motors European
Technical Centre PLC, or TMETC, in the United Kingdom, which are engaged in
automobile research and engineering. The company is inspected to carry out business
functions while adopting value adding processes to the already existing quality
gateway functions. The following particulars presents detailed information of the
quality gateway functions and value adding processes implemented in the functions of
the company.
 Research and Development
o Quality Gateway Functions: The Company is mainly focused on specific areas
of research and development and engineering by which it can strengthen its
HorizoNext Philosophy, a three horizon strategy. Their strategy changes
according to the type of the car the plant is producing. In the case of passenger
cars, more emphasis is paid on creating stunning designs, connectivity and
pleasurable driving experience. Therefore, the research and development

24. 24
portfolio is aligned towards developing technologies, core competence and
skill sets in these specific domains to secure impactful delivery of the future
product with leading product attributes. The Company uses a three-horizon
strategy for managing its engineering and technology initiatives. The first-
horizon involves products that it is currently working on to bring to the
market. The second-horizon involves researching known technologies that the
Company may not be entirely familiar with at the present time but are needed
for future products. Finally, the third-horizon is for ‘blue sky' research projects
and projects aimed at fostering a culture of innovation in the company. The
Company has constantly adopted new technologies and practices in the digital
product development domain to improve the product development process.
This has led to better front loading of product creation, validation and testing,
which results in greater likelihood of timely delivery and ensuring that new
products are properly developed from the beginning.
 Value Adding Process:
o Three Horizon Strategy
o Development portfolio is aligned towards developing technologies, core
competence and
o skill sets
o Three-horizon strategy for managing its engineering and technology initiatives
o Adoption of new technologies
 Intellectual Property
 Quality Gateway Function: The Company creates, owns, and maintains a wide
array of intellectual property assets throughout the world that are among its

25. 25
most valuable assets. The Company's intellectual property assets include
patents, trademarks, copyrights designs, trade secrets and other intellectual
property rights. The Company proactively and aggressively seeks to protect its
intellectual property in India and other countries. The Company owns a
number of patents and it has applied for new patents which are pending for
grant in India, as well as in other countries. The Company obtains new patents
as part of its ongoing research and development activities. The Company owns
registrations for a number of trademarks and have pending applications for
registration of these in India, as well as other countries. The registrations
mainly include trademarks for its vehicle models and other promotional
initiatives. The Company uses the "Tata" brand, which has been licensed to
the Company by Tata Sons Limited. The Company believes that establishment
of the "Tata" word mark and logo mark, in India and internationally, is
material to its operations.
 Value Adding Process:
 TATA own creates and maintains most of its intellectual property assets.
 The company owning a number of patents.
 Company owns registration for a number of trademarks
They raised a bridge loan from the consortium bank for US $ 3 billion. They were
under an acute financial crisis as the sales of Jaguar and Land Rover in 2009 started
decreasing and a greater impact on the sales of luxury vehicles due to global financial
crisis was high Jaguar and Land Rover could not generate working capital so Jaguar
and Land Rover needed to run the operations after acquisition by Tata. For
refinancing Tata Motors came with two right issues which opened in the September
October 2008 as it was supposed to get the promoters of the company out of drastic

26. 26
fall of share price of Tata Motors. Tata Motors called for public and issued non-
convertible debentures. Back home in India Tata Motors launched the commercial
vehicle small car Nano and it required more time than excepted and as the Indian
economy didn’t have right potential of any possibility to increase any domestic
customer demand of the customer however the global economy growth slowed down
and this effected global automobile industry. Tata Motors had a risk factor ahead for
the growth of Jaguar and Land Rover. Tata Motors expected that this deal would put
them in the lead in the global market of automobiles. As Ratan Tata was accepting the
deal did not turn in that way. As the disastrous financial problems in the year 2008-09
Rattan Tata was still in his positive self and told that they will regain from all their
loses. Although social issues were a major hitch in the beginning Tata motors
generally uses the integration method and never uses the separation technique with
their acquisition. However the company understood that split up from the name Tata
can be valuable in some social areas. They used de culturation technique. In
summation Tata does a great job of merging some aspects of their target into
multinational group the new acquisition.

27. 27
4. Data analysis and findings
Tata Motors Limited is the biggest automobile company in India. The consolidated
revenues of Tata Motors Ltd. In 2020 are 2.64 lakh crores INR (US$37 billion). It has
the largest market cap in commercial vehicle segment in India, and second largest in
the passenger car segment. Tata Motors was established in 1945 and today has more
than 5.9 million vehicles on Indian roads. In manufacturing truck, Tata motors ltd. has
become the fourth in the world and second largest in bus manufacturing. Currently,
24000 employees are working with Tata motors Ltd. and their main dream is to be the
best in comportment and to distribute the best product and also to best in ethics and
value system.
BUSINESS OVERVIEW
India’s GDP growth continues to remain weak, at 4.7% in FY 2013-14 (advance
estimates) after growing at 4.5% in FY 2012-13. Industrial activity continues to
remain weak. Index of Industrial production (IIP) was negative at 0.1% during FY
2013-14. The stagnation in the industrial activity was broad-based. While mining
output registered a negative of 1.1%, manufacturing output registered a negative of
0.7% during the same period. FY 2013-14 witnessed a decline in investments in new
projects in line with slowdown in overall growth.
Growth rate in GDP

28. 28
Source: Ministry of Statistics and Programmed implementation
FY 2019-20 was marked by the challenge to the Government to contain the fiscal
deficit, and the Government expenditure on infrastructure and other key sectors
suffered. Current account deficit was brought in control. As a result, the domestic auto
industry saw decline after a long time. With the continued high interest rates and
inflation, households were forced to spend more on essentials and discretionary spend
reduced, leading to deferring of purchase decisions. The consistent stagnation of the
industrial growth mainly in the areas of mining and quarrying, manufacturing and
infrastructure adversely impacted the domestic auto industry.
On the global economy front, it was still a struggle, with the Euro zone in recession
for much of 2013. However, in the developed world which had started as an uneven

29. 29
and patchy, recovery began to strengthen. The US economy, despite having to cope
with feuding over its budget, seems to have sped up. It has been creating jobs and its
housing market and stock indicator have moved up sharply. By the end of the year
2013, the UK had become, on some counts the fastest growing large developed
economy. UK labor market conditions improved as employment increased. Rising
consumer and business confidence helped to underpin stronger retail sales and
investment spending, while the recovery in house prices helped shore up household
wealth. This was led by higher consumption, in turn leading to fears of overheating in
the housing market.
Germany had a solid year, reducing unemployment and boosting living standards.
However, across the Mediterranean the pattern was more disappointing, with Italy,
Spain, Portugal and Greece all enduring a year of rising unemployment. Europe and
the euro are not out of trouble, but the acute phase of their difficulties may be past.
However, there is still a long way to go: deflation risks remain, the sovereign and
banking crisis is not fully resolved, and there is a considerable gulf in performance
between the core and the periphery.
The structural shift from the developed world towards the emerging world continued
but at a slightly slower pace than before. Industrial activity picked up pace throughout
the year, supporting continued employment growth. With asset prices buoyant and
confidence returning, the pillars of support for consumer spending fell back into place
during 2013. In the emerging markets due to announcement by the US Federal
Reserve in May, that it would soon begin reducing its monthly asset purchases (so-
called “tapering”), caused currencies to depreciate, stock markets to fall and
borrowing costs to rise. Countries with large current account and fiscal deficits were

30. 30
worst affected. Growth in China was at 7.5% and Africa, encouragingly, grew by
more than 5%.
4.1Tata Motors Business
Consequent to the macro economic factors as explained above, the Indian automobile
industry posted a decline of 9.3% in FY 2013-14, as compared to 1.1% growth in the
last fiscal. The commercial vehicles declined by 22.4% (last year growth of 1.7%) and
passenger vehicles declined by 4.7% (last year growth of 0.9%).
INDUSTRY STRUCTURE AND DEVELOPMENTS
Commercial Vehicles
The demand for Commercial vehicles remained depressed throughout the year. For
FY 2019-20 the Commercial vehicle industry volumes at 698,907 reflect a decline of
22.4% over FY 2019-20. The Medium and Heavy Commercial Vehicles (M&HCV)
segment recorded a further negative of 25.2% on the back of 23.3% decline in the last
fiscal. The ban on mining, fleet underutilization, fall in resale value and low economic
activities contributed to the fall. However, over the last few months, the decline has
slowed down and volumes have stabilized through efforts taken by the Government to
revive the sector by 4% reduction in excise duty, partial lifting of mining bans and
increase in freight rates, indicating that the economy may be nearing the end of the
down-cycle. While the M&HCV segment had declined in the last fiscal, the
contraction of the Light Commercial Vehicles (LCV) segment by 21.2% is more
significant because it was the growth driver in the past, growing by 17.9% in the last
fiscal. The fall in this segment has been led by the drop in the Small Commercial
Vehicle (SCV) volumes where fund availability is the most critical element. The high

31. 31
default rates in loans coupled with early delinquencies prompted the financiers to
tighten lending norms, reduce the Loan-to-value (LTV) ratio and go into a collection
mode impacting the SCV segment quite sharply. The Company registered a decline of
29.5% to 377,909 units, primarily due to fall in LCV volumes coupled with the falling
demand in M&HCV.
The Company’s commercial vehicle sales in the domestic and international markets at
420,992 units were 27.5% lower than the previous year. Even under these difficult
conditions, the Company has been able to gain market share in the critical M&HCV
segment. The Company has been focusing intensely on market and customer activities
to stimulate the buying sentiments. Activities included the Prima Truck Racing
Championship event in March, 2019 the first of its kind initiative in the Indian
trucking history. The Prima LX series of trucks – a combination of economy
&technology - were launched in FY2019- 20 which included – 2523T, 3123T, 4028S
(Single reduction and Hub reduction) and 4928S (Single reduction and Hub
reduction), 4923.S LX, Prima 4938 Tractor, 3138K Tipper, LPT 3723 - India’s first 5
axle truck and LPK 3118, and Prima LX series of Tippers – 2523K, 3123K, 2528K &
3128K. One of the successful marketing initiatives was the Power of Five campaign
for M&HCV trucks which was conducted across various locations across the country
to counter competition. The campaign focuses on five advantages of the Company’s
vehicles.
1) Better KMPL
2) Best Vehicle Uptime
3) Highest Resale Value,

32. 32
4) Best in class four year warranty,
5) Lowest maintenance cost and five powerful offerings
i) Triple benefit insurance,
ii) Increased Oil change interval,
iii) 4 Year AMC,
iv) Tata Alert,
v) Fleetman.
The bus segment also witnessed growthin market share for the Company, due to
intensive sales efforts coupled with launch of buses with mechanical FIP, introduction
of Starbus Ultra in Stage carriage, marketing initiatives such as ‘Humare Bus Ki Baat
Hain’ and ‘Dream it to win it’ program. The warranty for M&HCV buses and trucks
were increased to three years and four years respectively symbolizing improvement in
quality. The Tata Alert service, to return a vehicle back on road within 48 hours, has
been expanded across all national highways.
The Company registered a decline in the market share of LCV segment due to the
sharp fall in volumes of the high share SCV segment. The newly launched Ultra
trucks have started to receive good response from the market. There have been
various other initiatives such as the Freedom campaign and Triumph through trials
campaign of back-to-back and standalone fuel trials to establish the superior fuel
efficiency of vehicles. The Company tied up with various PCGs (Public sector, Co-
operative & Gramin banks) and has brought out several lucrative financing schemes
to ease the financing situation. The Companyalso launched a major initiative called,

33. 33
‘Saathi’, a Parts retailers’ customer referral program for entire SCV range, to leverage
their customer base. Some of launches this year were the Ace, Magic DICOR and
facelifts.
Passenger Vehicles
The Passenger Vehicle Industry contracted for the first time in the last five years, in
FY 2019-20 with decline of 4.7%. The last such instance was during the economic
slowdown of FY 2015-16 when it remained close to flat at negative 0.5%. The decline
in sales volumes is seen across segments, but sedans bore the biggest brunt.
Hatchbacks and UV’s continue to be the volume segments. The high growth in UV
segment last year, with the onset of Soft Roaders could not be repeated this year. The
premium and luxury vehicles segment however has seen a growth even in an
otherwise declining year.
During the year, the Company recorded sales of 141,846 vehicles (including Jaguar
Land Rover) in the domestic market; a decline of 38.1%. The domestic market share
was 5.8% as compared to 9.0% last year. The Company introduced a host of new
products including the E-max range of CNG vehicles, Vista tech, the refreshed and
improved Sumo Gold. Nano Awesome Campaign was launched during the year,
along with the launch of Nano Twist with electronic power steering, thereby
continuing to take the Nano Brand closer to the youth.
The Company sold 2,805 Jaguar and Land Rover vehicles through its exclusive
dealerships in India registering an impressive growth of 12.5%. The globally popular
Range Rover Sport and Jaguar XF 3.0D was launched during the year. New brand
touch points were created in social media for both Jaguar and Land Rover in a short

34. 34
span. Besides Land Rover Experience events were launched through which over 600
Dynamic Drive Off-road Experiences were delivered.
Tata Motors Exports
The Company markets its commercial and passenger vehicles in several countries in
Europe, Africa, the Middle East, South East Asia and South Asia. However, the
Company’s exports of vehicles manufactured in India decreased marginally by 2% in
FY 2019-20 to 49,922 units from 50,938 units in FY 2018-19. Commercial vehicles
export sales of the Company shrunk by 2.3% to 43,083 units impacted by the external
environment influencers in Europe, the Middle East, and South Asia and passenger
vehicle sales remained flat 6,839 units.
For FY 2019-20, the Company’s top five export destinations accounted for
approximately 73% and 88% of the exports of commercial vehicles and passenger
vehicle units, respectively. The Company continues to strengthen its position in the
geographic areas it is currently operating in and exploring possibilities of entering
new markets with market characteristics similar to the Indian market.
The Company has set up a network of distributors in almost all countries where the
vehicles are exported. The distribution network includes local dealers for sales and
servicing products in the respective regions. The Company has also deputed its
representatives overseas to support sales and services and to identify opportunities.

35. 35
The company's current liabilities during FY19 stood at Rs 1,455 billion as compared
to Rs 1,432 billion in FY18, thereby witnessing an increase of 1.6%.
Long-term debt stood at Rs 710 billion as compared to Rs 612 billion during FY18, a
growth of 16.0%.
Current assets fell 9% and stood at Rs 1,234 billion, while fixed assets fell 11% and
stood at Rs 1,479 billion in FY19.
Overall, the total assets and liabilities for FY19 stood at Rs 3,072 billion as against Rs
3,314 billion during FY18, thereby witnessing a fall of 7%.
TATA MOTORS Cash Flow Statement Analysis
TATA MOTORS's cash flow from operating activities (CFO) during FY19 stood at
Rs 189 billion on a YoY basis.
Cash flow from investing activities (CFI) during FY19 stood at Rs -197 billion on a
YoY basis.

36. 36
Cash flow from financial activities (CFF) during FY19 stood at Rs 88 billion, an
improvement of 339% on a YoY basis.
Overall, net cash flows for the company during FY19 stood at Rs 68 billion from the
Rs 7 billion net cash flows seen during FY18.
TATA MOTORS Cash Flow Statement 2018-19
4.2Ratio Analysis for TATA MOTORS
 Solvency Ratios
Current Ratio: The Company’s current ratio deteriorated and stood at 0.8x during
FY19, from 0.9x during FY18. The current ratio measures the company's ability to
pay short-term and long-term obligations.
Interest Coverage Ratio: The Company’s interest coverage ratio deteriorated
and stood at 0.7 x during FY19, from 3.0x during FY18. The interest coverage ratio of

37. 37
a company states how easily a company can pay its interest expense on outstanding
debt. A higher ratio is preferable.
 Profitability Ratios
Return on Equity (ROE): The ROE for the company declined and down at -
47.7% during FY19, from 9.5% during FY19. The ROE measures the ability of a firm
to generate profits from its shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company declined
and down at -19.4% during FY19, from 11.6% during FY18. The ROCE measures the
ability of a firm to generate profits from its total capital (shareholder capital plus debt
capital) employed in the company.
Return on Assets (ROA): The ROA of the company declined and down at -
7.5% during FY19, from 4.2% during FY18. The ROA measures how efficiently the
company uses its assets to generate earnings.
Key Ratio Analysis
Flexible Strategy Framework

38. 38
There are numerous models to manage strategic changes focusing on multiple aspects.
Kim and Mauborgne (2013) stated that blue ocean strategy emphasizes on radical
changes to create uncontested market space. This strategy deals with changes linked
with novel business ideas. Sushil (2019), in his work, has suggested a ‘Flexible
strategy framework’ as a paradox of continuity and change. This framework is a bold
attempt in managing change, along with the consideration of continuity forces in the
organization. It is supported by numerous methodologies and innovative tools for
strategy formulation to manage critical areas of continuity in conjunction with the
change.
Flowing Stream Strategy Process
The flowing stream strategy is implemented using a strategic crystal framework, as
shown in Fig. 1. It uses the concept of duality theory and consists of two dual planes
(Sushil 2019). One plane based on the reality of an organization comprising opposing
forces of continuity and change, and the other based on major strategic elements for
enterprise as well as customers (Sushil 2019). The flowing stream strategy’ process as
illustrated by Bhat et al. (2016) in the case of ‘Moser Baer Industries Limited’, which
is one of the largest makers of optical storage media is done in following steps:
1.Identifcation of continuity and change forces,
2. Mapping on C–C matrix,
3. Identification of strategic factors,
4. Analyze strategic crystal,
5. Formulate strategic direction,
6. Selection of channels and strategies.

39. 39
Continuity Forces
Every organization has specific set of continuity forces that help it to steer through the
obstacles and aid to succeed. The forces that give better performance in current
scenario may become counterproductive in different situation. The larger
organizations carry huge baggage of inertial forces with it and require substantial
amount of energy to change its course.
In the October-December quarter financial year 2019-2020 the auto motive sector in
India suffered sever contraction in demand, arising from major financial and other
market upheavals. This exacerbated the lack of liquidity and unavailability of
consumer finance. This along with contraction in freight movement in many segments
of the industry. Led to a massive drop in the M&HCV segment demand. High interest
rates and peak commodity prices also affected the industry and the supply chain. The
overall CV industry declined by 43.9% while TML’s commercial vehicle business

40. 40
declined by 40% supported by a diversified product portfolio. Consequently Tata
motors gained substantial market share both in MHCV and LCV segments. While the
passenger vehicle industry declined by 16.5% affected by high interest rate and
restricted credit availability. TML;s passenger vehicle business by a lower14.4%. The
rate was decline arrested due to encouraging response to new product introduce.
4.3Swot analysis of Tata motors
Strength
1. Strong presence of market place:- Tata motors is only company in
India with a broad based presence across the industry, in all segments of the
commercial vehicle market heavy and medium commercial vehicle, light
commercial vehicle, pick-ups, sub one tonne, mini-trucks –and key segments –
compact, mid-size car and utility vehicle segment of the of the passenger
vehicle market.
2. Unique Understanding customer need: - With 50 years presence in
the automotive business. Tata motors understand customers need and
developed products that meet their needs. To consider some example, as early
as 1980’s,the company launched light commercial vehicle. Amidst Japanese
competition in which in today strongly leads. In the 1990’s anticipating the

41. 41
need for an affordable family car it launched the now famous Tata Indica. This
occupies leading position among compact cars.
3. Skill base developed over the last 40 years: - Tata motors are also
much welled place on technology capability. The company had set up its
engineering research center as early as 1966 with 1400 scientist and engineers
and state of an art development. Testing and validation facilities.it is this
technology capability which has allowed Tata motors. Over the decade to offer
indigenously developed product. This strength has been accentuated with the
inclusion of TMETC, TDCV and Hispano carrocera in the R&G network,
beside several other specialist external agenesis. The company no longer needs
to develop every necessity itself. Today it just has to manage the process of
product creation, drawing upon available R&D and skill from different
sources.
4. Engineering: - The Tata group has a robust process in engineering, with
operations in automobiles and auto components and a variety of other
engineering product and services.
5. Materials: - The Tata group is among the global leaders in this business
sector. With operations in steel and composites.
6. Services: - The Tata group has widespread interests in hospitality
businesses. As also in insurance. Reality and financial and other services
7. Energy: - The Tata group is a significant player in power generation and is
also involved in the oil and gas segment.
Tata Motors Limited is the biggest automobile company in India. The consolidated
revenues of Tata Motors Ltd. in 2009-10 are $20 billion. . It has the largest market

42. 42
cap in commercial vehicle segment in India, and second largest in the passenger car
segment. Tata Motors was established in 1945 and today has more than 5.9 million
vehicles on Indian roads. In manufacturing truck, Tata motors ltd. has become the
fourth in the world and second largest in bus manufacturing. Currently, 24000
employees are working with Tata motors Ltd. and their main dream is to be the best in
comportment and to distribute the best product and also to best in ethics and value
system.
Before 1990s, Tata mainly focused on the commercial vehicle sector and different
kinds of vehicle like commercial trucks, military trucks, and construction vehicles
was made by them. Their first movement was to introduce utility vehicles in
passenger car sector with two main models, Tata Safari and Tata Sumo. After that
Tata has got great success and satisfactoriness among customers with these two model
car and also got big support then entered into small business car sector in India.
Tata Motors the first listed Automobile company in the New York Stock Exchange
(September 2004) that is from India’s engineering sector; it has also emerged as a
global automobile company. Tata has also operations in different countries of the
world. These are UK, South Korea, Spain and Thailand.
Impact and influence of external environment in an organization:
External environment has many influences on business to run that effectively. It
involves many factors outside the organizations that can give opportunities or
pressure to the business. The overall success of any business organizations depends
on its consciousness about its surroundings, environment and flexibility to cope up
with the changing environment. Business environment may be defined as combination
of some factors that cannot be controlled in nature and it effects on organizational

43. 43
decisions; these are economical, demographical, legal and governmental, social and
cultural and so on.
Technological
Political
Economical
Legal
An organization
Environmental
Social
Tata motors are doing their business in different countries across the world such as
Africa, Europe, Middle East and Australia. The countries where Tata motors are
going to operate should concentrate on political climate as well as the regional leading
bodies. The business trade, expansion and investment are reliant on laws and
regulations on business imposed by the local government. How much they will be
flourishing in markets and economies for the effect of home and national influences.
Tata Motors made a deal with Ford for purchasing Jaguar and Land Rover on 26th
March’2008. For fulfilling this achievement, Tata Motors need to understand the laws
and regulations of the home country related to commerce, the United Kingdom, but
also in countries Jaguar and Land Rover operate in. UK political environment
analysis: Government offers impressive tax benefits to attract the investors from other
countries, Strong political inspiration regarding globalization, Strong reputation and
trust, and political stability and goodwill, adaptive governmental support.
In India Tata Motors strictly maintain government laws and regulations and also keep
in eye on labor laws in different countries where they are going to establish their

44. 44
manufacturing plant. Political changes always need to consider by the organizations
this will facilitate them to spread out in new market. These all things maintained by
the headquarters of Tata Motors which situated in Mumbai that all branches are
maintaining and obeying local laws or not.
Tata Motors is operating through different countries across the world; they are
functioning by focusing on individual market with considering global economic
standpoint. They are spreading out by forming joint ventures over the five different
countries in the world. Tata Motors have the experiences about the changes in market
that occurs and can easily acclimatize by using resources they have around the globe.
For example Tata Motors need raw materials for production of engine blocks but the
price of raw materials is high in South Africa. They have suppliers for raw materials
in Europe, so they can easily get it from Russia because they are operating globally.
One important things need to consider that is the currency rate of that country.
Suppose they are investing at a higher rates but when they get return rate is lower
because it will impact on profit or loss. The demand of product also can vary with the
fluctuations of currency. The rate of currency and its variations also influence the
company to invest. Another important thing needs to consider labor cost is that cheap
or high and available or not with related to business. In case of Tata Motors deals with
Ford in UK economic advantages-huge movable workforce, reasonable labor cost,
good in export, supportive authority to invest in technology.
The Tata Motors group is an established passenger and commercial vehicle
manufacturer in 1945 and it was the part of larger Tata Group. Tata motors were
holding their recognitions for the last ten years in the passenger car market. Currently,
Tata Motors are operating on five passenger vehicles and these are pickups, trucks,

45. 45
tractor trailers, tippers, and buses. Tata Motors commercial contour has been
recognized for a number of years in various market segments such as Europe, Africa,
The Middle East, Australia, Southeast Asia, and South Asia. It has gained high market
share by expanding their business around the world through a series of acquisitions. In
2004, they acquired Daewoo commercial vehicle Company in South Korea which was
the second largest truck manufacturer in South Africa. This acquisition gave Tata
Motors a considerable charisma in the Korean market. After that they have merged in
companies as a joint venture such as Thonburi Automotive in 2006, which gave them
access to manufacture and sell pickup trucks in Thailand. This is how they built their
reputations which hold 80-85% of company profits with respect commercial vehicle.
Their largest acquisition was with Ford and they paid to Ford $2.3 billion for taking of
Jaguar and Land Rover from Ford. In January 2008, Tata Motors induced a new Car
that is Tata Nano. Tata Nano has been consequently launched, as it planned before, in
India in March 2009. It signifies the global automobile industry, the price of the car is
affordable and it is only Rs.10 million. In May 2009, Tata Motors introduced new
trucks name Prima in modern era it practices best utilization of power, speediness,
good carrying ability, functioning economy and trims, which will bring in the latest
benchmarks in India and equivalent the best in the world in presentation at a minor
life-cycle cost.
Tata Motors is equally concentrating on environment-friendly technologies especially
in emissions and substitute fuels. . There are many electric and hybrid vehicles
developed by Tata motors especially for personal and public transportation. Tata also
involve in many activities such as engineering and automotive solutions, production
equipment manufacturing, automotive motor vehicle machinery built-up and supply
chain conduct, machine tools and factory mechanization solutions, high-precision

46. 46
tooling and plastic and electronic machinery for automotive and computer
applications, and automotive retailing and service operations through subsidiaries
4.4The Business Environment Of Tata Motors In India
As emphasized by (Palmer and Hartley, 2006) the Macro environment of a company
is composed of the External Determinants. This includes factors such as political,
economical, social, technological, environmental and legal. These factors have an
indirect impact on a firm or any business activity. The Microenvironment of a
company is composed of the Internal Determinants. This includes factors such as
suppliers, consumers, competitors.
Bringing this into perspective it is very significant for any company to analyses and
study the Business environment in order to make plans, design strategies and take
decisions. For example, a company from the United Kingdom setting up its activities
in India has to focus on the Macro and Micro Environment in India to run
successfully. If they work according to the analysis of the business environment in the
United Kingdom they are bound to fail in their operations in India.
Thus to understand the Macro environments, companies and management students
can make use of PEST analysis which helps in critically evaluating the political,
economical, social, technological, environmental and legal determinants which have
an indirect impact on any business entity. This critical evaluation helps a business
firm to strategies effectively and take justified decisions. After analyzing the business
environment using the PEST tool, any company can make use of SWOT analysis to

47. 47
gain an insight on the strengths, weaknesses, opportunities and threats to survive in
today’s world comprised of severe competition.
The company selected for this work is Tata Motors. Being a huge manufacturer of
automobiles, its periphery consists of all the accordant forces. Thus an analysis will
be done considering the changes that have occurred over the last five years, how Tata
Motors have reacted to these changes in order to survive in today’s world of fierce
competition. In this work Tata Motors will be analyzed using tools like PEST
Analysis, Michael Porters five forces and SWOT Analysis, and in the process these
tools should be of help in deriving some conclusions and making some
recommendations.
Tata Motors is India’s largest manufacturer of automobiles. It was initially known as
Tata Engineering and Locomotive Company. In 1954, the company signed a
collaboration agreement with Daimler Benz of Germany and started the
manufacturing of commercial vehicles. It has been a pioneer in this sector, especially
in India. They also have their base of operations in the UK, South Korea, Thailand
and Spain. Manufacturing of passenger cars, utility vehicles, passenger buses and
light, medium and heavy commercial vehicles are the main areas of business of Tata
Motors.
As mentioned above Tata Motors has its operations in several countries around the
world. In setting up these operations it was vital for Tata Motors to analyzed the
Political Environment so as to run the business smoothly. Over the last five years Tata
Motors has had a chance to venture in different Markets. When it entered in the UK,
the options of entering USA and Russia were also available. But Tata Motors
preferred UK over USA and Russia due to favorable political factors such as India

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being a preferred economic agent, UK car market and potential and language
similarity. USA market requires high quality and there are several non-tariff barriers
which make it difficult for a new company to enter the market. The reason Russia was
declined is because they lack a well-developed dealership network, there were high
entry barriers, Language problem and finally there was always the uncertainty of
future economic state. As emphasized by (Hill, 2002) the cooperation between India
and the UK falls in the regime of favorability which implies benefits being derived
due to less tariff and non-tariff barriers. Thus Tata Motors’ decision of entering the
UK market is justified.
Main weakness of Tata motor is low return on share investment. Their vehicle is not
maintaining safety standards at that much require with compared to its competitors.
The product sale of Tata motors is not up to the score in domestic market. The sales of
cars in India are less than 1 million yearly. This creates a problem for the company
because if people don’t want to buy cars how can they sell. Technological
advancement is not up to the mark as compared to its competitors. Tata owned Jaguar
and Land Rover but Tata has not got enough recognition in producing luxury vehicles.
Tata’s new innovation One CAT still has some rough spots that require working out
on problems like it exhaust pollutant emissions and greenhouse gas emissions from
the generation of electricity used to compress the air. It is the technical fault and this
is another weakness. Moreover, One CAT only goes 62 miles per hour for 56 miles in
an urban cycle. This is not very far and Tata Motors will have to recover this
weakness as well as the emission weakness in order to attract more consumers to buy
this new automobile.
Tata motors can get benefits from low cost car; they can enter into third world
countries where people can afford this car. Though this low cost car is fuel efficient

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and cheap so they can easily capture the market. They have export opportunities to
other countries as well. Tata motors should focus in developing luxury cars. Tata
motors can bring in additional safety features in vehicles to achieve added customer
satisfaction. They can easily access into new markets though they have joint ventures
with other countries.
Tata motors have low cost advantage over its competitors, if the competitors manage
to find out production method of low costs, and then there will no longer have
competitive advantage over competitors. In case of market, their competitors are
already started to compete with that. In fact, the Pakistan’s Transmission Motor
Company has built a basic four-wheeler for only $2,100. This car is considerably
cheap and they started exporting them to Sudan, Qatar, and Chile. This is going to be
the beginning of new emerging car manufactures that will be producing low priced
cars. Another threat for Tata motors is that the increases in price of raw materials like
steel, aluminum and plastic. The low standard in safety may reduce sell of cars.
Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the
Middle East, and Australia, it needs to pay close attention to the political climate but
also laws and regulations in all the countries it operates in while also paying attention
to regional governing bodies. Laws governing commerce, trade, growth, and
investment are dependent on the local government as well as how successful local
markets and economies will be due to regional, national and local influence.
In accordance, Tata’s headquarters in Mumbai, India, strictly controls and regulates
operations in all dealerships and subsidiaries, in addition to knowing and abiding by
all labor laws in the multiple countries where they have manufacturing plants it has to
watch political change. This will be especially vital in the future as Tata Motors

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continues to expand and grow into new markets. “While currently about 18% of its
revenues are from international business, the company’s objective is to expand its
international business, both through organic and inorganic growth routes” (Tata.com).
The foundation of the company’s growth internationally is a deep understand of
economic stimulation, customer needs, and individual government regulations and
laws. Although it is the headquarters ultimate responsibility to make sure each
individual office and branch is operating and abiding by the local laws, it will become
increasingly more important for that duty to be taken care of at the regional or even
local level.

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5. Conclusions & Recommendation
Tata Motors Limited is a strong automobile company that has gained a large market
share through acquisition and mergers. However, the company faced challenges such
as lack of proper investment in R&D to enhance the quality of automobiles produced.
Tata successfully acquired JLR due to its strong financial condition which made it
possible to maintain JLR.
CONCLUSION After all the research work and SWOT analysis of TATA Motors ,I
came to the conclusion that Tata Motors is an overall strong company that has found
its strength and expansion through its parent company -Tata Group and its numerous
acquisitions and mergers. Tata motors are a market leader in the Automobile Industry
with high market share. Manufacturing low price car with low fuel consumption gives
it the advantage of entering into the third world countries. Its management is
strengthened by the collective experience of its partners and acquired companies –
this includes general management, marketing, sales and operations. TATA Motors
should come in Luxury segment with new strategies in the domestic market. It should
focus on increasing the proportion of market share in Passenger vehicles in India.
Developing new products and covering new market will always be their main
purpose.
From the whole study I conclude that the Tata motors is the India’s largest company
in the automobile industries and having the strong financial position in the whole
world

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They are providing some of the social security schemes and benefits provided to the
employees which are helpful to the employees for doing the job in effective and
efficient manners and which are motivating them to increase their performance and
efficiencies.
I just recommended that each and every company should be giving all the benefits to
the employees like medical benefits, education facilities, provident funds and all the
insurance and retirement benefits so the employees can secure our future.
Tata Motors has faced a financial crisis in their business model by taking up various
products development and marketing simultaneously. Though acquisition of Jaguar
and Land Rover in international market itself is a major accomplishment in
competition to automobile giants of the world, Tata Motors has further risked another
major breakthrough in Indian automobile industry by introducing itself through the
cheapest family car Nano. These above simultaneous national and international
launching brought a financial crunch. To come out of this Tata Motors approached all
major financial institutions where they did not find a solution. By incorporating Step
Analysis, marketing R &D tool which analyzes all sectors of the company as well as
the social, political and economic sectors from outside world. This analysis helped the
company to understand the loopholes and deficiencies in their strategies, which finally
helped rectification of the problems and brought the company to where it stands now.

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6.References & Appendix.
www.google.com
www.tatamotors.com
www.economictimes.indiatimes.com/news/india-Automobile-industry.html
www.icmrinda.com/case studies/catalogues bstr341.html
www.tatamotors.com
www.scribd.com
https://studycorgi.com/tata-motors-company-market-research/
https://en.wikipedia.org/wiki/Tata_Motors#References
https://www.slideshare.net/sanchitjasuja/project-ontatamotors
Prof. T.S Reddy & Dr. Y. Hari Prasad Reddy, Margam publications, publishers and
book sellers, Chennai- 600 017.
Dr. S.N.Maheswari, Financial Management principles and practice, sultan Chand &
sons, New Delhi.
“Tata Motors enters into Definitive Agreement with Ford for purchase of Jaguar Land
Rover.” Motor Industries, 26 (14), 45-60.
Gummesson, E (2000). Qualitative Methods in Management Research. 2nd edition,
Sage, Thousand Oaks, CA.