Founded by the legendary J.R.D. Tata in 1945 Tata Motors Ltd. (Formerly known as TELCO) Tata Motors is an Indian multinational giant automotive manufacturing company , a subsidiary of the 100 Billion $ Tata Group.
Going by the trend: All- Indian earlier:
It was set up initially to manufacture locomotives, although it manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG. It entered the passenger vehicle market with the launch of Tata Sierra in 1991 when our country was coincidently entering into a new world of LPG (Liberalization, Privatization and Globalization).
Tata Motors made a history which no Indian will ever forget by launching the first fully indigenous passenger car, Indica.
It established itself as a highly value –driven company which had through its hardwork and commitment had transformed into an epitome of quality and integrity.
Breaking the shackles: Going Global:
After gaining an experience in the domestic market and establishing itself as a brand of high-recognition, Tata Motors decided to tap the international market. In 2004 Tata Motors acquired Daewoo’s South Korea-based truck manufacturing unit, Daewoo Commercial Vehicles Company, later renamed Tata Daewoo. Then the very next year, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano Carrocera.
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to manufacture fully built buses and coaches. In 2008 Tata Motors acquired the British car maker giant Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company. In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company Trilix for €1.85 million. In 2012, Tata Motors announced it will invest around [pic]6 billion on developing Futuristic Infantry Combat Vehicles in collaboration with DRDO.
Vehicle Assembly Operations (besides India): Icing on the cake
2. South Africa
3. South Korea
Risks faced while entering the global market:
Tata Motors was among the first Indian Companies to enter the global market which was full of international giants who were many times bigger and powerful than Tata Motors. Thus it had a business failure risk of being rejected because of presence of International Brands which had decades of experience.
Availability of a large international market with no individual Indian player was an opportunity to make a mark by grabbing the First Mover Advantage.
Also, recent acquisition of JLR has taken Tata Motors to a new platform and it has become a brand of the world after acquiring a worldwide recognized brand. Also the production of Tata Nano, the world’s cheapest car has given it a fame to reckon with in the international market.
Thus an out-of-the-box thinking, dare to take risk by entering international market, innovations and strong brand name has launched Tata Motors into one of the most successful automobile manufacturers of the world.
|PARTICULARS |Global Giant TATA MOTORS | |Revenue |32.67 Billion$ | |Operating Income |3.06 Billion$ | |Profit |2.28 Billion$ | |Assets |28.05 Billion$ | |Employees |59,759 | |Area of operations |Worldwide |