Summary TATA_Motors_The_Leader_In_Automobile_Manufacturing_Industry.

HISTORY OF TATA MOTORS Tata motors Limited is the largest automobile manufacturing company in India with its revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10 [1] . It is the world’s second largest manufacturer of buses and world’s fourth largest truck manufacturer too. It is the leading commercial vehicle company in India and ranks among the top three in passenger vehicle companies of India. The company was established in 1945 and grown into a large corporation with 24000 employees till now and over 5.9 million Tata vehicles produced and used in Indian roads. Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors is in charge of the whole Tata group of companies at present. Tata motors manufacturing base is situated wide across the nation and the places include Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). It has alliance with world leading automobile companies and Tata motors became the first company from Indian engineering sector to be listed in New York Stock Exchange (NYSE) during September 2004 and its international venture started to establish after this achievement. Tata motors production branches, sales, manufacturing units and other networks comprises of more than 3500 units throughout the world [2] . 1.2 THE HISTORY [3] Tata motors forms a part of the Tata group of companies, and its share-holdings were managed by the Tata Sons. Right from their start in 1945 as a locomotive manufacturing unit, Tata motors started to expand their operations over commercial vehicle sector. In 1954, they made a joint venture with Daimler-Benz AG of Germany to make their presence felt in global arena. Even after their success in commercial vehicle manufacturing sector, Tata motors always interested in diversifying their products to remain a global competitor. So they analysed the local consumer market and decided to build a small car which would be useful for the consumers and it will be of mutual benefit for both the company and the society. So, they launched Tata Indica, the first Passenger Car in 1988, which is designed to be inexpensive and simple to built and maintain. This product of Tata motors was a big hit in Indian automobile industry sector, which was also later exported to Europe, that too especially in United Kingdom (UK) and Italy (TATA MOTORS,2010). For more than six decades of its operations, Tata motors growth rate in the consumer market was enormous. They introduced innovative model cars and astonished their competitors locally as well as globally. In 2004, Tata motors bought Daewoo’s truck manufacturing unit in South Korea which is followed by many acquisition in various countries such as South Africa, UK and Italy. In 2008, they acquired Jaguar and Land Rover from Ford Motor Company and this was considered as an important milestone in Tata motors history, since then they gained brand value and power in the global community (TATA MOTORS,2010). 1.3 TATA MOTORS BUSINESS STRATEGY DEPENDING ON PERIODS From 1945 till now Tata motors has changed a lot and this is due to their timely recognition of opportunities and threats in the market. When they first launched a passenger vehicle in 1988, the demand for their product was enormous and they continued to concentrate more on that particular product with demand. But when they incurred loss at 2002, and their profits were reduced Tata motors started analysing the consumer markets need and why their commercial vehicle product was no more successful. They identified the demand for innovation, which is must at that point of time, and so they started thinking about acquiring or signing Memorandum of Understanding (MoU) with international automobile industry partners to uplift their brand name and value. They succeeded in that mission too and by 2005 their presence was felt in South Africa, Senegal, Turkey, Europe, Thailand and West Asia (TATA MOTORS,2010). This innovative strategy in planning and execution helped them to create the world’s cheapest car in 2009 which is called “Tata Nano”. Thinking beyond the borders and acting quickly to the market change has taken Tata motors to high limits in world’s automobile sector. 2. ORGANIZATIONAL STRUCTURE AND GOVERNANCE Tata motors is largest and one of the biggest automobile industries in the world. They have operations in many parts of the world, and they are successful in their business sector for a long period of time. This requires an effective organizational structure, which is maintained and followed unanimously (Refer Table 2&3 in appendix). In my analysis, I could see that Tata motors international partners and Executive officers are from various parts of the world, working together to reach a common goal. Thus illustrates they are adopting an “international organizational structure” with the power is created and monitored from the centre and then dispersed equally to all other subsidiary parts of the organization (TATA MOTORS ANUAL REPORT, 2010).