How TATA Motors’ latest strategy is
leading them towards market leadership
TATA’s Motors and it’s Journey:
Tata Motors embarked its journey in the September 1945 as Tata Locomotive and Engineering
Company (TELCO) to manufacture commercial vehicles (CVs). The company after its successful venture
in commercial vehicles moved into the passenger vehicles (PVs) segment in early 1990s. The company
made a history with its launch of first indigenously designed and produced passenger car, Indica, in
India. Indica happened to be the star performer of Tata Motors; with continuous technology
upgradation it became India's second largest selling hatchback. Since the beginning, Tata Motors had
an eye on the global market. In as early as 1954, it collaborated with Daimler Benz of Germany for
technical assistance to produce world- class products. Over the years, in pursuance of its vision of
becoming a world-class automobiles company, Tata Motors acquired stakes in various international
companies.
Sr.No.
Year
Company Name
Country of Type of owenership
Origin
1
1954
Daimler Benz
Germany
Technical Collaboration
2
1989
Cummins Engine Company
USA
Joint Venture
3
2003
Daewoo Commercial Vehicle Co. Korea
Acquired
Ltd
4
2005
Hispanso Carrocera SA
Spain
Acquired 21%
5
2005
Marcopolo
Brazil
Joint Venture
6
2007
Thonburi
Thailand
Joint Venture
7
2008
Jaguar Land Rover
UK
Acquired
After more than six decades of its operations, Tata Motors was an undisputable leader in commercial
vehicles in India, but it had less than significant presence in the passenger vehicle segment. One of the
reasons for its sluggish performance in PVs segment was intense competition in the domestic market,
which was led by dominant players like Maruti-Suzuki, Hyundai Motors, Mahindra & Mahindra, Honda,
Toyota etc. Tata Motors remained the fourth largest car maker in India in terms of market share.
With a portfolio that covers a comprehensive range of cars, trucks, buses, defence vehicles and more,
Tata Motors Limited is recognized as one of the leading automobile manufacturers in the world today.
The company's marque can now be found both on and off-road around the globe. Here's how Tata
Motors went from being an Indian company to the globally recognized brand that we know today.
Tata Motors' CVs around the world
Having a presence in over 46 countries around the globe, Tata Motors is without a doubt among the
top 10 CV makers in the world today. The company started creating ripples with the launch of Tata
407 Light Commercial Vehicle (LCV) in 1986. The truck became popular not only in India but also in
several other countries around the world, thanks to its reliability. Here are some of the most important
milestones that the CV sector of Tata Motors achieved in countries abroad:
 1991 - Tata Motors entered into a Joint Venture (JV) with Nitol Motors to set up NITA
Company Ltd., the first assembly set up of the company outside India. In the years to come,
Tata Motors grew its assembly operations in different forms across Myanmar, Vietnam,
Bangladesh, Ukraine, South Africa, Kenya, Senegal, Nigeria & Tunisia.
 1993 - Tata Motors sets up a JV with Cummins Engine Inc. The tie-up enables Tata to
introduce powerful diesel engines with far lesser carbon emissions.
 2004 - Tata Motors rings the opening bell at the New York Stock Exchange in this year,
marking the listing of the company on the bourse. The company also acquires South Korean
truck manufacturer Daewoo in this year. Together, they unveil the Tata World Truck range
for sale in South Korea, South Africa, SAARC nations and the Middle East.
 2006 - Tata Motors joins hands with the Brazil-based Marcopolo S.A and launched the Tata
Marcopolo Bus in the following years
 2008 - Tata Motors sets up Tata Motors Thailand, its first national sales company in markets
around the globe
 2009 - Tata Motors acquires the Spanish bus and coach manufacturer Hispano Carrocera.
Starbus and Globus range of buses, manufactured by this new venture, rolled out in the
coming years.
 2011 - Tata Motors Indonesia was established as a fully owned subsidiary of Tata Motors
 2012 - Tata Motors launches its next generation platform of heavy trucks, Tata Prima, in the
markets around the world2014 - Tata Motors launches its new platform for light trucks and
buses, Tata Ultra, in the international markets
 2015 - Tata Motors launches SkillPro - a unique skill development programme that trains
aspiring youth, transforms them into skilled technical professionals and makes them
employment ready
Tata Motors' PVs around the world
Tata Motors began manufacturing Passenger Vehicles (PVs) in India in 1991. Just like its CV division,
the PVs segment made its foray into nations around the world in the following years. Apart from India,
the company's new as well as legacy cars are also available in many countries through exclusive
dealerships. Variants of Tata vehicles like the Indica, Indigo, Vista, Manza, Aria, Bolt, Safari Storme,
Tiago, GenX Nano, Sumo, Tigor, Zest, Nexon and Hexa can be purchased in various countries of Africa,
APAC and Latin America, while those of Jaguar and Land Rover are available in Europe. Featured below
are some of the most important milestones of the PV sector of Tata Motors that the company achieved
in other regions (excluding India):
 APAC Region - Tata Motors PVs make their entry in Nepal in 2003, followed by
commencement of operations in Sri Lanka in 2004, Indonesia in 2011, Bangladesh in 2012,
Myanmar in 2013, and Philippines in 2014
 Africa - PVs of Tata Motors make their foray into Africa with South Africa in 2004, Tanzania
in 2005, Ghana in 2006, followed by Algeria in 2014
 Latin America - Tata Motors' PVs sector begins its operations in Latin America by venturing
into Uruguay in 2014 and Bolivia in 2015
 Europe - Tata Motors enters the European market after the acquisition of Jaguar and Land
Rover from Ford Motor Co. in 2008
Tata Motors' mission "to be passionate in anticipating and providing the best vehicles and experiences
that excite customers globally" has enabled it to make its presence felt around the globe. Thanks to
its commitment to excellence, the company has set its sights on expanding its CV and PV operations
in several other countries around the world.
Struggles In Tata Motor’s Journey:
JLR & Brexit:
Back in 2008, Tata Motors made a bold acquisition. It bought the struggling UK luxury car-maker,
Jaguar Land Rover (JLR) by shelling out close to ₹10,000 crores and vowed to turn it around. Although
the first year was a bit topsy turvy (considering the Global Financial Crisis), JLR soon started churning
out big profits thanks to Tata Motors’ intervention.
Problem started in 2016. Britain finally decided it wanted to part ways with the European Union (EU).
This meant the country had to rework its relationship with other members of the Union —on matters
of trade, tariffs, free movement of people, all that stuff. For instance, back then, the EU contributed
21% of all sales accruing to JLR. The company, meanwhile, imported 50% of all its component from
other countries in the Union. So, friction between the UK and the EU had to have material
consequences for both Tata Motors and JLR.
In fact, almost immediately after the first Brexit vote, the Pound fell by as much as 10% against the
Euro. At the time JLR owed money to many entities in the European Union— payables for supplies and
raw materials. However, as soon as the Pound began to lose value, JLR had to cough up a premium
(more Pounds). In fact, they had to take a hit of ~ ₹2,300 crores on account of currency fluctuations
alone.
Covid 19 Effect and Debt Concerns:
The automobile industry was hit hard in FY 2019-20 as sales fell across vehicle segments. According to
data released by SIAM, in FY 2019-20, the Indian automotive industry recorded a 20.3% decline in
domestic sales as compared to a 5.9% growth in FY 2018-19. The Passenger Vehicle segment decline
17.3% in FY 2019-20 (as compared to 2.8% growth in FY 2018-19) due to weak consumer sentiment,
rising cost of vehicle ownership, liquidity stress and general economic slowdown The Commercial
Vehicle industry in India registered a 30.0% decline in FY 2019-20 as compared to 17.1% growth in FY
2018-19, because of sharp slowdown in the economy, subdued demand, and higher capacity arising
from the new axle load norms and the transition to BSVI. JLR Events and pandemic imposed severe
debt concerns over Tata Motors.
Tata Nano- Failure of positioning strategy
The word “Nano” connotes high technology and small size. The Tata Nano's design is such that it offers
an incredibly spacious passenger compartment which can comfortably seat four adults. With a length
of just 3.1 metres, width of 1.5 metres and height of 1.6 metres, the Tata Nano has the smallest
exterior footprint for a car in India but is 21% more spacious than the smallest car available today. The
reasons for Nano getting wrongly positioned was the failure of its primary positioning strategy i.e Price
Positioning Strategy. Tata Nano was positioned on the price attribute dimension and was widely
publicized as the world's cheapest car at ₹ 1 lakh. While the endeavour was presumed to be an
exciting, and brilliant societally, for any consumer buying the Nano, there is the inherent danger of
being viewed by his social group as poor as they owned a car that is thought off as cheap. Because of
the intense perception of class position in India, it turns out that many poor people would rather buy
a used, higher-end car than buy a Nano, which would mark them as poor. Also, because in India price
serves to signal quality i.e higher price serves to signal higher quality and lower price serves to signal
lower quality to the customer. (Aaker and Shanby ,1982). Further Within a few months of initial sales,
technical problems were found in the product and there were a few reports of Nano catching fire,
which further weakened the trust for the brand ‘Nano’ and people further believed that low price is
because of low quality. Thus, Nano though a good car did not carry enough prestige to be a passenger
car.
 Introduction:
For the past 15 years, Tata motors had been struggling to stay in the Indian auto market. In spite of having
several competitive edges such as:
1. They had huge experience in the auto market,
2. They were backed by one of the wealthiest houses in the world,
3. They had the Brand name of the noblest brand in the country
The company was in such a terrible condition that they had a market share of just 4.6% in FY16. Their
projects like Indica, Safari, and Sumo had proved to be a failure in the long run.
The losses were piling up so fast that in December’18, their quarter loss stood at Rs 26,961crores. This was
the highest-ever quarterly loss reported by any company on Dalal street at that time.
However, times have changed and within the last 6 years, the TATA motors team has achieved
extraordinary profits and market share.
1. They have more than doubled their market share to 12.14% in Fy 22
2. They have an 80% market share in the EV space,
3. For the first time in a decade, Tata Motors made more money per car than the giant Maruti Suzuki
itself.
The question is, how did the Tata motors team achieve such an extraordinary rise? What was the business
strategy that is speeding them towards market leadership?

Automobile Market of the 21st Century
There are some challenges faced by automobile companies in today’s market. These are:
1. Every time a new car is launched in the market, the respective company has to invest
hundreds or thousands of

Strategies implemented by TATA Motors:
1. Platform Strategy
Tata Motors will reduce its existing six platforms to just two. Both new platforms will be
modular in design and adaptable enough to manufacture vehicles and SUVs of various
shapes and sizes, which will enable the corporation to achieve higher economies of scale.
The initial of them is known as AMP (Advanced Modular Platform). Its modular design, which
consists of 15 distinct modules that may be combined to create a full car, is like VW's MQB.
The size can vary as well. Scaling options for the floor pan, for instance, include length,
width, track, and wheelbase (track and wheelbase each variable by more than 100mm).
Guenter Butschek, CEO of Tata, predicts that the first vehicle built on this new platform will
go on sale by 2018 and that up to eight other models could be built on it.
There are hatchbacks, sedans, people movers, and SUVs on the list of available vehicles. As
much as 80% of the parts will be interchangeable, according to Tata, while important
modules like the front and rear axles, powertrains, HVAC modules, etc. will account for 70%
of the cost of the vehicle. Like VW's MQB, the only fixed element of the platform will be the
distance from the firewall to the front-wheel axis, and it will support both three- and fourcylinder engines. Both manual and automatic gearboxes will be offered, and the new chassis
will have a flat floor to maximise back legroom.
Tata also asserts that the weight of the new platform is far lower than the one it replaces, a
claim that is expected to influence both performance and efficiency. Additionally, future
hybrid powertrains have been planned for. The Discovery Sport's existing platform, Land
Rover's L550, will serve as the foundation for the second platform in the line-up.
This bigger platform will probably give rise to more expensive cars, like the Q501 that was
recently spotted in testing, as well as bigger SUVs and soft-roaders. Four-wheel drive,
independent rear suspension, and other more advanced features like radar-based cruise
control are anticipated to be available as options. Tata's frame-based architecture, seen on
the Hexa and updated Safari, is relatively new, and the company will, if necessary, explore
synergies with its Commercial Vehicle portfolio, which will still use this "load-bearing"
architecture in the future. Tata insiders claim that there won't be a new body-on-frame
platform for the time being.
2. Entry into the EV market
If we look at Tata Motors' electric market segment, it becomes abundantly evident that the
corporation is now making great efforts to break into every market. The corporation
currently rules the electric vehicle market, not just with automobiles but also with buses,
batteries, chargers, and charging stations.
The company has segmented its subsidiaries under the name of Tata UniEVerse in the Fiscal
year 2020. Some of the notable segments under this uniEVerse are:
Tata Motors: Currently, Tata motors currently overlooks the EV manufacturing segment in
India. The manufacture of Electric cars and Startbus electric busses is under this segment.
Tata Power: Under Tata power, the company maintains a robust network of electric vehicle
charging stations across the nation.
Tata Chemicals: Through this subsidiary, Tata manufactures Lithium-Ion batteries and is
currently looking for opportunity to enter the energy storage industry.
3. Integration with other TATA subsidiaries
When it comes to EV, it almost looks like the TATA companies were just meant to be a piece of the
puzzle. If you look at their operations, we will see TCS aided TATA Power in setting up EV charging
stations with its charge core platform because of which the project actually saw 300 charging
stations joining the network within just 12 weeks. Similarly, TATA Elxsi partnered with TATA Motors
in developing their unified connected vehicle platform. We have TATA Capital and TATA Motors
finance for vehicle finance and insurance and when it comes to infrastructure TATA Power is already
aiming to build 10000 stations over the next five years. Lastly, while TATA chemicals makes lithiumion cells, TATA autocom assembles battery packs. So if we see the seven group companies have
actually come together to bring an EV ecosystem in India.
As a result of when companies of the same family come together to share their resources, they can
easily produce a high quality product at an affordable price and that is exactly what the TATAs are
doing with Nexon and Tigor.
4. Government Support
The expansion of EVs in India is being fuelled by a combination of national and state-level initiatives.
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) policy has been
implemented by the federal government, while other EV-specific regulations have been unveiled by
state governments. Based on the sort of incentives available for EV promotion, policy actions fall into
two basic groups, demand side and supply side.
Customers can receive financial incentives through the FAME policy of the central government and
the EV policy of the Delhi government, which work to lower the cost of EV purchases and close the
price gap between EVs and ICE vehicles. On the other hand, a number of state governments have
mostly concentrated on supply-side incentives to promote investment in the EV sector in their
individual states to assist produce employment possibilities. The upfront cost differential for EVs
should be significantly reduced with the support of state policies and the central FAME-II subsidy's
demand incentives. In addition to the policy changes, various actions have been made to support the
EV business, like lowering the GST on EVs and EV chargers to 5%.
Cherry on the cake is that government regulations by default support the TATAs because TATA
Motors is an Indian company.
Ground rules for launching new car in market
The Motor Vehicles Act (MVA), 1988, and the Central Motor Vehicles Rules (CMVR), 1989, are the
laws that govern driving privileges, vehicle registration, traffic management, vehicle construction
and maintenance, and other matters in India.
The Motor Vehicle Act and the CMVR contain several provisions, and the Ministry of Road Transport,
Highways & Shipping (MoRTH & S) serves as the nodal agency for their development and
implementation.
Three committees have been established by MoRT&H to discuss and provide advice to the ministry
on matters pertaining to safety and emission standards. These committees are:



CMVR- Technical Standing Committee (CMVR-TSC)
Standing Committee on Implementation of Emission Legislation (SCOE)
Automotive Industry Standards Committee (AISC)
The Ministry of Heavy Industries and Public Enterprises (MoHI&PE), the Ministry of Road Transport
and Highways (MoRT&H), the Bureau of Indian Standards (BIS), testing organisations like the
Automotive Research Association of India (ARAI), the Vehicle Research Development &
Establishment (VRDE), and the Central Institute of Road Transport (CIRT), as well as representatives
from the industry from the Society of Indian Automobile Manufacturers (SIAM) and the Automotive
Component Manufacturers Association (ACMMA), are all represented.
These committees provide guidance to MoRTH&S on different technical CMVR-related issues. The
committees' primary responsibilities include, if needed,






Providing technical interpretation and clarification of the Central Motor Vehicles Rules with
regard to MoRT&H.
To advise the government to use worldwide standards rather than those announced under
the CMVR. Allow the use of parts, components, and assemblies that adhere to these
standards.
To offer advice on any other technical matter(s) that directly affect the application of the
Central Motor Vehicles Rules
To provide advice regarding the notice and implementation of new safety requirements for
various components under the Central Motor Vehicles Rules.
To provide advice on the amount of time needed to adopt such safety requirements
To suggest revisions to the Central Motor Vehicles Rules that have a technical impact in light
of the advancements in automotive technology
Another committee, the Automotive Industry Standards Committee, which includes representatives
from numerous stakeholders, assists the CMVR-TSC in creating the technical standards relating to
vehicle safety. The following are the committee's primary duties:



Create new safety-related requirements for automobile components.
Review the current requirements and suggest changes.
recommend the CMVR Technical Standing Committee accept these standards.



Encourage testing facility commissioning at the right times.
suggest to the CMVR Technical Standing Committee that the required financing for such
facilities be provided, and
Advice on any further matters referred to the CMVR Technical Standing Committee
MoRT&H makes notices for essential revisions and modifications to the Central Motor Vehicle Rules
based on the recommendations from CMVR-TSC and SCOE.
Moreover, other ministries like the Ministry of Environment & Forest (MoEF), the Ministry of
Petroleum & Natural Gas (MoPNG), and the Ministry of Non-Conventional Energy Sources are also
involved in the formulation of regulations relating to emissions, noise, fuels, and alternatively-fueled
vehicles.
The Bureau of Indian Standards creates the Indian Standards for the Automotive Industry (BIS). The
BIS also transforms the standards created by AISC into Indian Standards. The CMVR-TSC evaluates
the standards developed by BIS and AISC for implementation.
The SCOE is the Standing Committee on the Implementation of Emissions Laws. The concerns
surrounding the application of emission rules are discussed by this committee. This committee's
primary duties are:




To talk about the upcoming noise and emission standards
to advise MoRT&H about standards for in-use vehicles
To complete the testing protocols and the implementation plan for the emission standards
On any matter involving the application of emission and noise rules, advise MoRT&H.