BUSINESS STRATEGY OF TATA MOTORS

Running head: BUSINESS STRATEGY OF TATA MOTORS
BUSINESS STRATEGY OF TATA MOTORS
Name of the Student
Name of the University
Authors Note

1BUSINESS STRATEGY OF TATA MOTORS
Executive Summary
The regulation of strategic management goes beyond developing strategic plans for the
organization, which includes prior planning processes and strategic planning. Tata group is a
universal corporate unit known for its standard quality and commitment. This report throws the
light on the strategic management action plan of Tata Motors, part of Tata Groups. It is the
leading automotive corporation in India and is known as a market leader in both passenger
vehicles as well as commercial vehicles segment. This report initially shared the introduction of
the company with a detailed description of its market strategies, its tangible and intangible
resources led by the firm for its competitive advantages. This paper also focused on the Porters
Five forces model and its interpretation into the competitive market, highlighting the UN
sustainable development goals of agenda and CSR activities carried by Tata Motors.
Table of Contents

2BUSINESS STRATEGY OF TATA MOTORS
Introduction......................................................................................................................................3
Tata Motors Limited........................................................................................................................3
Strategies of Tata motors over the past three years.........................................................................5
Tata Motors tangible, intangible Resources....................................................................................9
Competitive analysis of Tata motors using Michael Porter’s Five Force Analysis......................11
CSR of Tata Motors in line with United Nation’s Sustainable Development Goals of Agenda
2030...............................................................................................................................................13
Recommendation for Tata motors.................................................................................................16
Conclusion.....................................................................................................................................20
Reference.......................................................................................................................................21

3BUSINESS STRATEGY OF TATA MOTORS
Introduction
Tata motors limited is the dominating automobile manufacturing industry formerly
TELCO, an Indian global company headquartered in Mumbai. It has entered into the joint
ventures and strategic acquisition in its mid-stage and launched new products at a swift pace in
various markets. It aims to provide Customers satisfaction at their best value; Tata Motors has an
outstanding portfolio for passengers and commercial customer’s vehicles and leaders in Indian
commercial space for several years. It employees 695,699 workers around the world and
operates for around one hundred and fifty years and is now active in more than one hundred
countries, covering six continents, selling its goods to more than one hundred and fifty nations. It
mainly focuses on connecting the aspirations of tech-enabled products helps in establishing the
forefront of the market. It is the world's leading car, bus, utility vehicles, truck, and vehicle
manufacturers. The portfolio of Tata motors automobile products ranging from all varieties of
passenger cars, buses, and coaches, it also includes gross weight trucks and pickup trucks of
1ton-49 tons.
Tata Motors Limited
Tata Motors Limited incorporated in 1945, an Indian multinational automotive
manufacturer based in Mumbai, Maharashtra, India. It is the world's leading car, bus, utility
vehicles, truck, and vehicle manufacturers. As the most significant Indian automobile firm and
part of the $ 100 billion Tata group, Tata Motors operates in the UK, Thailand, South Korea,
South Africa, and Indonesia with a robust global network with 76 subsidiaries and affiliates,
including Tata Daewoo South Korea and Jaguar Land Rover in the United Kingdom. In India,
Tata Motors is the market ruler in commercial vehicles with 9 million vehicles on Indian roads

4BUSINESS STRATEGY OF TATA MOTORS
and is one of the top passenger car manufacturers (Tatamotors 2020). The company’s
innovations are much more focused on developing pioneering technologies that are sustainable
and well situated for evolving aspirations for the market as well as for customers. Tata Motors
venture to launch new products that fire the artistry of GenNext customer’s
vehicle, fueled by state of the creative design and Research & Development
centres located in the UK, India, Korea, and Italy.
Currently, Tata Motors established five-passenger vehicles and a huge production of
commercial vehicles includes trucks, pick-ups, tippers, tractor-trailers, buses and vans. Both
product lines of the Tata Motors Group have been productive and are based on the more deeply
developed commercial vehicle product line. Tata Motors' commercial line has been operating for
many years in a variety of market segments such as the Middle East, Africa, Europe, Australia,
South East Asia and South Asia. Tata Motors grew its business and market share worldwide
through a sequence of acquisitions (Athreye. and Kapur 2015).
Tata Motors expands through acquisition rather than spending a decade in building a
business. It builds its reputation through commercial vehicles accounted for 80-85 percent of the
company's profits. The same business strategy continued to move into the passenger car market.
In 2008, Tata Motors made international headlines in the automotive industry by acquiring
Jaguar and Land Rover from Ford (Su et al. 2016.). Tata motors have much more experience in
luxury automobile, entitling the brand new segment of the company to be managed by previous
management. The success of the company shortly can be derived through its acquisition —
success, diversity and competitiveness of Tata motors derived through the significant outbreak in
the automotive industry.

5BUSINESS STRATEGY OF TATA MOTORS
It has acquired tremendous market share by endorsing passenger vehicles, commercial
vehicles globally. For instance, the memorandum of understanding was signed in 2017 with
Volkswagen to develop vehicles for the Indian market. In 2018, to unlock their potential Tata
sold its aerospace and defence business to other Tata group entities. Later in 2019, Tata motors
come into a partnership with Nirma University in Ahmadabad to provide a B.Tech degree
program for its employees of the Sanand plant. Tata motor is India's fifth-largest vehicle maker;
it is growing in commercial vehicles; still, the domestic passenger vehicle segment is declining.
In 2016 Tata motor's passenger car grew its sales up to 25% about 55,000 units. In 2017 the sales
were 57,300 units, but it dropped down to 52,796 units in 2018; thus, falling 7.8 percent of the
domestic sales market (Agnihotri and Bhattacharya 2018). The critical challenge for Tata motors
to be relevant in the local market as it fails to achieve any market share over the next 2-3 years
due to the low economic activity and uncertainty of consumer's buying behaviour. The market
seems to be critical for acquiring its position back in the local market by 2021. There is a chance
of steady growth of Tata motors and achieving 5 to 10 percent of the market share by 2021-2022.
Strategies of Tata motors over the past three years
Business strategy is concerned about how to compete, and corporate strategy address to
compete in which business. Whereas, the growth strategy is an action plan designed to capture a
large number of market share. It mainly focuses on the target market, and industry occupied.
These strategies aim to achieve long-term business success.
Previously the domestic passenger car market share was just three percent, and now it
has increased about seven to eight percent. Tata Motors has recently undergone an organisational
transition. To gain a competitive advantage, lay off redundant workers and transferred jobs
around the company for restructuring purposes (Rajashekar and Mallika 2018). Tata Motors are

6BUSINESS STRATEGY OF TATA MOTORS
more involved in decision-making and to concentrate more on their customers. It aims to focus
on transparency and have good realistic leadership. Tata motors also recruited experts from
Roland Berger and Accenture to help them improve cutthroat competition.
Tata motors embarked on an aggressive strategy that aims at the comeback of its
passenger vehicle and also re-energizing the status of the market leader in the commercial
vehicle sector. The organisation has three advocacy plans: Filling of products gap, Controlling
cost, Comprehensive supply chain strategy. Considering the massive loss of 28,000 crores in
2016-2017 operates on strategic supplier based design to build a proper supply chain
(Rothaermel 2017). Tata motors aim at establishing a productive bottom line and bringing
strength in the whole organisation by kicking-off structural revamp the program, which is
designed specially to bring simplicity, speed and agility by reducing the managerial level from
fourteen to five and Ensuring empowerment within the business segment and facing frontline
roles in improving customer-centricity.
The passenger vehicles of Tata motors provide additional sales, also incur a massive loss
through technology-driven products like Tigor compact sedan, Tiago hatchback and Hexa
crossover. In the financial year 2018, the company also signed an Indian armed force contract
and supplied 3192 Tata Safari Storme 4x4s. With an advanced modular platform, aims to cut
down the number of distributors from two-hundred to one-hundred. To leverage the full benefit
of a modular platform and reducing structural cost (Sugre 2018). It targets to get the third
position in the Indian passenger vehicle market. Tata pursues to be the market leader even
though its market share of commercial vehicles and numbers has been drastically dropped to
42.79 percent and later, it drops down to 40.99 percent. The whole focus shifted to a commercial
vehicle from passenger vehicles. Tata Motors aims to renovate its commercial vehicle, reduced

7BUSINESS STRATEGY OF TATA MOTORS
production cost, delivered fast volumes and launched products on time. This strategic plan
helped them to drive sales. The company sight of modifying the commercial vehicle from the
modular platform by reducing the complexity and increasing the flexibility. The overachieving
goal is produced to manufacture more product at lower cost the comprehensive strategy of the
commercial vehicle involves 15,000 crore investment across the segment. Developing a full
range defence sector product commercial vehicle exports contributes 20 percent topline.
Tata Motors launched a new range of MHCVs and LCVs, which helped in meeting the
customers growing demand for commercial vehicles and improved the total cost of ownership. In
May 2018, Launching of M&HCVs and LCVs enhanced Tata registers a strong growth of 58%
and sale of 54,295 units in contrast 34,461 units in the previous year. It boosts the sale and
increases the performance of both commercials as well as passenger vehicles in the domestic
market. Tata motors aggressively plan to introduce the advanced technological product that helps
in connectivity and passenger solution in the last-mile (MANICKKAVASAGAM and
RADHIKA 2019).
The M&HCV truck sector continues to thrive with 12,424 units, 90% compared to the
previous year. This growth is possible due to the government's focus on infrastructural
development, irrigation, road construction, and housing projects throughout the country. With
4,106 units, I&LCV truck segment recorded a significant increase of 73% compared to May
2017. This growth was due to the introduction of new products, electronic commerce, and
increased rural consumption. The recently launched Tata Ultra ILCV truck series has received
considerable acceptance and contributed to volume growth. M & HCV domestic sales decreased
9% to 15,337 units in March 2019, compared with 16,876 units sold in March 2018. Sales of
LCV trucks in the local market recorded a steady growth of 23% to 56,996 units in the fiscal

8BUSINESS STRATEGY OF TATA MOTORS
year2019 (April 2018 - March 2019) compared with 46,311 in the previous year. In March 2019,
I & LCV truck segment grew by 17% to 6,730 units compared to 5,737 units during the last year.
This segment is influenced by lower diesel speed and increased axle load, which leads to
improvement in this segment (Kamani 2017).
The Supreme Court's decision to transfer BSIII to BSIV, sales were affected in the first
quarter of last year due to substantial upfront purchases and limited supply of BSIV vehicles. In
May 2018, growth based on various macroeconomic factors such as increased investment in
industrial activity, expanding infrastructure and strong demand in sectors driven by private
utilisation. Introduction of SCR BS-IV and EGR technologies have become a successful trial for
Tata Ultra electric 9m bus covering 160 kilometres at a solo charge (Badal 2017). In the past
year, Tata also took the lead in alternative fueled mobility by developing and showcasing India’s
first LNG and fuel cell bus Starbus Hybrid. Tata motors not only focus on improving its sales
but also enhance achieving profitable growth. In the next few years, the company aims at
launching more than ten to fifteen new models based on two new architectures, Omega and
Alpha, which will begin early next year (Gopal et al. 2017).
The Company’s new launch helps Tata motors to fill the gaps in its product portfolio and
compete aggressively in the market. Broadly, Tata Motors is worthwhile, but not limited, and can
be emulated by the immense resources of its rivals. Operations are currently undergoing a
change, which puts Tata Motors at a competitive consistency, but not at a sustained competitive
advantage. Tata Motors' unmatched ability to manufacture low-cost vehicles gives the company
enormous scope for earning high-profit margins and enjoys a more significant market share. The
economic slowdown has intensified competition to produce low-priced but best-quality vehicles.

9BUSINESS STRATEGY OF TATA MOTORS
Understanding the rural economy of India and growing farmers ' incomes, Tata Motors
witnessed increased opportunities for its commercial sector.
Nevertheless, Tata Motors has a range of upcoming Jaguar and Landrover cars for luxury
brand buyers to capture the premium customer segment leads to greater success for the company
shortly (Bihari and Rath2015). Tata Motors have remarkable manufacturing advantages in India
compared to other MNC competitors. It benefits from low labour costs, intensely professional
and interwoven backwards and forward linkages, enhancing IT technologies, substantial market
penetration, improving infrastructure, a large auxiliary sector, and growing domestic demand.
Tata Motors tangible, intangible Resources
Like all businesses, Tata Motors uses the tools and skills to develop and grow more to
perpetuate its quality. Tools and potentials are classified as tangible and intangible resources
used by a business to select and execute its action plan. In general, Tata Motors has positioned
itself as a well-known automobile producing company, but throughout time, Tata Motors has
encountered several issues that continue to address every year. In recent, the market share of
Tata Motors dropped by 15.7 percent, generating adverse effects in the market. Due to the
problem created by Jaguar Land Rover which leads to the unemployment of 9,000 employees for
two weeks because of shutting down the Solihull plant (Donnelly et al. 2017). After losing one-
sixth of its market capitalisation, Jaguar Land Rover subsidiary announced the two-week
shutdown in one of its manufacturing plants due to low demand Tata Motors' decreased its
chances of gaining back sustainable competitive advantage. For example, Tata Motors lost its
market share for 4-5 years, not only of its struggle to ensure meeting foreign trade policies
instead ensure concerns for its consumers. Commercial vehicles drop 44.4% of its market share
in the local market, considerable failure in a business, which can be focused more to boost

10BUSINESS STRATEGY OF TATA MOTORS
market share and build a steadily expanding market. When Tata Motors merged with Jaguar
Land Rover enhances increase in sales, Tata Motors is at equivalent competitive level
demonstrating the lack of a resource-based operation which affected the company adversely. The
reason behind the vast decrease of market share is because Tata Motors is entirely dependent on
Jaguar Land Rover, and it is struggling with weak demand, less money flow, and a loss of market
share (Sharma and Kaur 2019). Tata Motors could improve more as a car manufacturing
company to ensure its products are remarkable, unique and exceptional that their organisation
continues to operate successfully.
Tata motors uses one of the finest core competencies in India, as it is the largest
domestic car manufacturer in India. And also, they produce steel in different locations in India so
that their strategy is teamwork and honesty among employees. Electric vehicles car
manufacturers have incorporated into car choices or other options, such as General Motors and
Tesla, in 2017 (Túry 2018). Tata Motors should tend to have a competitive balance rather than a
sustainable competitive advantage. Tata motors fall behind and indicate lack of risk as it fails to
implement and demonstrate the relevant attributes and improved standards in comparison to its
rival manufacturers, adherence and persistently displaying average results. To handle this
situation, Tata Motors expands an active market by building a great marketing strategy. Its
demand can be increased by demonstrating the production of the Electric Vehicle and delivering
the relevant information to customers, encourages them to link with Tata Motors. The company
plans to develop a 320-volt battery with a range of 300 plus kilometres to deliver efficiency,
faster acceleration, including fast charging (Gujarathi 2015).
Tata Motors initially Grapple to be competitive on its electric vehicle market, due to its
persistent drive including electric vehicles in the similar product range, they are strengthening

11BUSINESS STRATEGY OF TATA MOTORS
themselves as a group and taking care of customer's needs. Tata Motors needs to take a
continuous step to become a better company and increase its market share by entering in an
active market.
Competitive analysis of Tata motors using Michael Porter’s Five Force
Analysis.
Michael Porter’s five force Analysis presents Tata Motors with vital information
regarding the competitive environment, the competitiveness of the market and the possible
profitability of the business.
The first force of Porter’s model is the threat of a new entrance; it depicts the level of
threat of entering a potential firm into an automobile company. Some obstacles to new entry
include economies of scale, pre-existing customer expectations, high upfront capital costs, or
loyalty, government regulation, patents, trademarks and advanced technologies. Since Tata
Motors operates in such industry which requires high costs at an early stage, a good
understanding of government regulations incurs high costs of advanced technologies and many
more, it is said that entry barriers are high for new companies. As a result, the threat of new entry
is weak but still exists for the automobile industry, like Toyota, Maruti Suzuki; Ashok Leyland
made a strong entrance into the market (Gandhi 2017). Tata Motor is successfully operating for
decades with an excellent grasp of government policies and regulations for the industry. It is
famous for innovative technology, to excellent engineering and many research facilities. Tata
Motors, along with Jaguar Land Rover, ranked 13th in global Research & Development
investment last financial year (2017-2018). Enhancing standard quality, Tata Motors not only
attracts new customers but also keeps existing or old customers loyal. Another important barrier

12BUSINESS STRATEGY OF TATA MOTORS
to the new entry of industry is Economies of Scale; it aims not only to meet the high-quality
standards but also high-cost is expected. The economies of scale are generated through the
acquisition of Tata Motors by JLR (Namita and Gupta 2019).
The second force of Porter’s model is the existence of competition in the industry. It is
considered as the most powerful force among the five forces of the model. Tata Motors
competition intensity is high as competitors retaliate quickly to changes in policy, technology,
consumer expectations, and many. Tata Motors operates within a demanding, competitive market
as it competes with many big companies both internationally and locally. Even though Tata
Motors is a leading automobile company, it faces fierce competition than ever before. Because
India is currently one of the fastest-growing economies in the world, this attracts more attention
to new industries. Tata Motors needs to develop a comprehensive solution to deal with this
powerful existence of competitive force.
The threat of substitute products is the third force of Porter's model. Several alternative
products are available in the market. Tata Motors lowers its prices due to improved productivity
in its production process, and customers witness commercial vehicle models more attractive as
compared to other products, Ashok Leyland lost its market share because the switching costs are
not substantial (Crawford 2016). Tata Motors consumers can easily switch to a different brand
because of the strong force of existing substitutes. Tata increases the productivity of its
manufacturing process to reduce costs; however offer high value to its goods, the threat of
substitutes is lower for Tata. The main competitors in Indian commercial vehicle are Ashok
Leyland. Two-wheelers are the primary replacements for Tata engines. Affordability plays a vital
role in the Indian population for automobiles. Two-wheelers predominate the carmaker industry

13BUSINESS STRATEGY OF TATA MOTORS
in India, creating opportunities and challenge simultaneously for Tata Motors (Gandhi 2017).
Apart from product affordability, fuel efficiency, customer satisfaction is also required.
The fourth attribute of Porter is the bargaining power of consumers, which is the impact
that consumers can have on their goods. With more alternative options, more information is also
available to consumers, the switching cost of a product is small, and customers bargaining power
is high. Tata Motors not only produce products that satisfy the customer's preferences it also
focuses on the customer's needs — provides services as per the requirement of customers by
listening and responding to the feedback and concerns provided from customers. Five
customers–first principles are used by Tata Motors and Jaguar Land Rover to improve their
products and services continually (Mukherjee 2016). The five customer-first principles are easy
to do business with, reliable, customised, make a customer feel exclusive and transparent for the
product.
Bargaining power of the suppliers is the fifth forces of porter’s model. At present, the
negotiations power of the distributors is weak for Tata Motors due to the availability of various
suppliers available in the market as different components required for production. One of the
leading materials used is steel. Tata Steel is the leading supplier to Tata Motors it enjoys Tata
Groups own the benefit of suppliers as both.
CSR of Tata Motors in line with United Nation’s Sustainable Development
Goals of Agenda 2030
In line with the policy of the Tata Group Environmental, In November 2017, TML
created and released a Sustainability policy that incorporates companies’ economic, ethical and
social values. The policy directs towards environmental governance, identifying the

14BUSINESS STRATEGY OF TATA MOTORS
sustainability issues and developing strategies aligned for sustainability with global and national
commitments to create value and contribute towards sustainable development. In the transport
sector, this policy stimulates many aspirations to become a global leader of future mobility
solutions. In addition to the Sustainability Policy, Tata Code of Conduct regarded as an overall
guiding principle (Acharya and Patnaik 2018). Tata Motors always strived to grow while being
socially and environmentally responsible for meeting customer’s needs. In this context, the
Policy is designed to explore and evaluate the value of natural and social business capital.
Establishing a robust sustainability governance mechanism and developing policies for all the
relevant requirements.
Sustainable development goals are the set of the universal goals that UN members
expected to use to reshape the development policies and agenda within the deadline of 2030. The
Sustainable development goals provide specific opportunities to companies’ unparalleled
economies enhancing new products, services in the market (ABHIYAN). Under Sustainable
Development goals, there are 17 goals and 169 targets which try to allocate the challenges
involved for a human being. For instance- Reduction in poverty, zero hunger, Equality of gender,
good health, decent work and economic growth, proper sanitation and clean water, clean energy,
industry innovation and infrastructure, reduced inequalities, sustainable cities and communities
and many more. CSR has become increasingly popular in the Indian corporate scenario and is
one of the critical drivers of CSR (Majumdar et al. 2015). In India CSR is not the latest notion
organisations have recognised that, in addition to growing businesses, it is also essential to build
responsible and productive partnerships with the broader community. Considerable resources
have been spent by Tata Motors towards learning, wellness, family planning, environment and

15BUSINESS STRATEGY OF TATA MOTORS
development of cities. Tata Motors limited look forward to a significant role towards the social
and development of communities along with running a business.
By 2030 it targets to reduce poverty by engaging, training, recruiting, a massive number
of local community members. It aims at implementing social protection systems and measures
which is nationally appropriate for achieving substantial coverage for the vulnerable and weak
situations (Yadav et al. 2017). Tata motors provide education and entrepreneurial skills training.
The second goal of SDG is zero hunger by the end of 2030; it targets eliminating malnutrition,
fulfilling the nutritional requirement for adolescent girls, pregnant women and older persons. It
also aims to increase agricultural productivity and the income of small food producer’s farmers.
Business needs to focus on the development and accessibility of high nutrition food items. Tata
groups working on an NGO that is Tata Steel Rural Development Society, formed in 1970 for
implementing social development programs for rural communities around Tata group operational
areas (ABHIYAN). These programs aim to transform the agricultural income of 70 thousand
households around the functional areas near 2020by adopting various strategies- enhancing the
productivity of the land by improving irrigation facilities, development of wasteland into
cultivated land, creating and developing community institutions among farmers and many more.
By 2030 SDG aims to minimise the global maternal mortality rate up to less than 70 per 1 lac
liver per births, end of preventable deaths of newborn and under the age of five babies,
Preventing and treatment of narcotic drugs and harmful use of alcohols. Tata motors provide 16
bedded to Malnutrition Treatment Center (MTC) situating at Jamshedpur in collaboration with
UNICEF and the National Rural Health Mission. One thousand one hundred severe acute
malnutrition children were treated successfully. MTC is successful in bringing down the infant
mortality rate in the district of East-Singhbhum. Tata international organises health camps

16BUSINESS STRATEGY OF TATA MOTORS
around its leather product manufacturing facilities Madhya Pradesh (Yadav et al. 2017). The
programs help in creating an ecosystem that allows communities to sustain and grow; it is also
part of health and hygiene initiatives.
By 2030 ensuring all girls and boys must have access to quality education, childhood
development, and pre-primary education. For men and women; affordable quality vocational,
technical and cultural knowledge to enhance their skills. For this Tata group, strives to be a
leader in innovation and ideally driven technology, availability of quality and quantity of
information at the fingertip. Tata motors aim at bridging the gap in all aspects of life to provide
complete education and wholesome nutrition among underprivileged children (Singh and
Kaushik 2018). The ideal ways to grasp technology for global exposure were access through
internet and taught 1,700 children and more than 36 teachers across the four schools. Tata
Motors, under its CSR program, funded Avanti Coaching Centers at JNV Mangalore and JNV
Pondicherry providing substantial coaching to students of Std. XI and Std. XII for two years. The
other 2030 SD plan is establishing gender equality by ending all forms of discrimination and
violence against all women and girls everywhere and eliminating unethical practices, such as
child, early and forced marriage and female genital mutilations (Morgan 2017). Pay equal
remuneration, including benefits, for work of equal value and strive to pay a living wage to all
women and men are provided by an organisation. Establishing a zero-tolerance policy within an
organization towards various forms of violence at work, including verbal or physical abuse
preventing sexual harassment. Affordable and clean energy, clean water and many more
Sustainable goals proposed by2030.
An initiative of Tata Community Initiatives Trust and the first Group CSR program
address the need of accomplishing India’s youth for employment, community enterprise and

17BUSINESS STRATEGY OF TATA MOTORS
entrepreneurship. This community aims to develop the skills of people from financially
challenged backgrounds and accustom them with the changing work environment for work and
economic growth (Ranjan and Tiwary 2017). The sustainability performance of Tata Motors
Limited is overall reviewed by SH & Safety Committee and the SH & S Council on a quarterly
and monthly basis. Besides, Tata Motor is continually working with employees and board
members to enhance and develop their knowledge regarding economic, environmental and social
sustainability.
Recommendation for Tata motors
The fiscal year 2018-19 appeared to be tough year for Tata motors as its sales volume did no
boost up the market as its market share of commercial vehicles has been drastically dropped to
42.79 percent, and later, it drops down to 40.99 percent after Launching of M&HCVs, and LCVs
enhanced strong growth of 58% over last year, it boosts the sale and increases the performance
of vehicles in the domestic market (Kate and More).
By year fiscal year, 2023-24 Tata motors planning to become aspirational Indian
automotive brand globally, consistently succeeding by- driving sustainable mobility solution,
delivering superior financial reports, creating a highly engaged workforce, and exceeding
customer expectations are committed to meet the aspirations and expectations to improve further
performance of the year 2019-20. In the upcoming year 2024, Tata Motors Finance targets to
achieve its Return on Equity of 20% and Assets under Management worth `75,000 crores, while
maintaining Gross Non-Performing Assets at 2.5%. Moving towards the target, it already
identified a few action segment, which includes minimising the delays of collection and
enhancement of disbursals (tata motors 2020).

18BUSINESS STRATEGY OF TATA MOTORS
It can be assessed from the thorough study of Tata motors that improvement is noticed
over the years, but needs some development. Being more competitive with the products, TML
has the opportunity to increase their market share. By collaborating with manufacturers, they can
boost and retain the standard of the products. Tata motors should establish better relations with
its distributors to ensure adequate input resources whenever required. Without having access to
these resources, hampers the production process. The TML production process is currently
improved, but other companies have begun to make such changes. They must focus on their
marketing strategies so people think the company is automatically economic. Customers must
know the price that will encourage someone to buy a car. To sell and be more international, they
need to employ public figures to advertise and even have ambassadors so people can see their
type of business. Proper marketing of the product will bring the right name to the company (Tata
motors 2020).
Tata Motor needs to focus on combining its unique strengths to repeat its latest success in
new segments and new areas. In addition to product reliability, the company's ability to
strengthen supporting frameworks will determine future success. The future gives companies
challenges and opportunities, both nationally and internationally. Although there are many
branches, Tata Motors seems to be in an excellent position to take advantage of this opportunity
and conquer the world. Tata Motor is doing great in India at the moment, but not necessarily in
other countries. For increasing the sales in other countries advertising and sales, promotions are
required across the globe. The creation of customer relationships is a central point for increasing
brand loyalty. Free word of mouth marketing increases sales. Tata Motors fired thousands of
workers because of the organisational transition (tata motors 2020). There may be some change in

19BUSINESS STRATEGY OF TATA MOTORS
their ethics. By dismissing thousands of workers, have an impact on the reputation of a company
that is not ethical. In the Fiscal year, the 2018-19 Tata motor group intended to provide a
transparent, balanced and concise presentation of the value-creation process for the stakeholders.
It gives an insight into the operating environment, key strategies, risk and opportunities, holistic
approach and governance structure toward long term sustainability.
Figure: Tata Motors KPI
Source: (tatamotors 2020)

20BUSINESS STRATEGY OF TATA MOTORS
Conclusion
From the above discussion, it can be concluded Tata Motor is limited to influential
automotive companies that have gained a substantial market share through acquisitions and
mergers. However, companies face challenges such as a lack of adequate R&D investment to
improve the quality of their vehicles and a dramatic decline in market share. Tata succeeded in
acquiring JLR because of its strong financial position, which made it possible to hold the
company JLR. Tata motors have done a lot of CSR activities to grow the business and also to
build a productive and responsible partnership with the broader community. Tata Motors looks
forward to play a significant role in the social and development of communities. Tata Motors
expands through acquisition rather than spending a decade in building a business. It has acquired
tremendous market share by endorsing passenger vehicles, commercial vehicles globally. After
the drastic market fall of JLR, it shifted its focus from passenger vehicles to commercial
vehicles. The introduction of new vehicles helps in boosting the sales and BS-IV with electric
bus increased the industrial activity, which can be seen as positive growth in the market. It uses
the most excellent core competency as it is the largest domestic car manufacturer in India. Tata
Motors tends to have a competitive balance rather than a sustainable competitive advantage.
Initially, Tata motor will take time to come back and hold its position after a drastic fall down
but positive growth is seen, and by 2030, Tata motor limited will be a market-leading automotive
manufacturer.

21BUSINESS STRATEGY OF TATA MOTORS
Reference
ABHIYAN, W.N.T., Mapping the Sustainable Development Agenda 2030 with the Legal and
Policy Framework in India.
Acharya, J. and Patnaik, S.N., 2018. Corporate social responsibility in community development
and sustainability: Rourkela Steel Plant, a unit of SAIL, India. Asian Journal of Business
Ethics, 7(1), pp.53-79.
Agnihotri, A. and Bhattacharya, S., 2018. International acquisitions and emerging market firms'
performance—a structural contingency perspective. Thunderbird International Business
Review, 60(4), pp.691-698.
Athreye, S. and Kapur, S., 2015. Capital and technology flow: Changing technology acquisition
strategies in developing countries. The Handbook of Global Science, Technology, and
Innovation, pp.191-211.
Badal Dev Roy, D.R., 2017. Experimental Investigation on Performance of Turbo-matching of
Turbocharger A58N72 for TATA 497 TCIC-BS III Engine.
Bihari, S.C. and Rath, S.S., 2015. Market Research and Analysis of Customer Buying Patterns of
Commercial Vehicles by Tata Motors-A Case Study. EDITORIAL ADVISORY BOARD, 14(1),
p.2.

22BUSINESS STRATEGY OF TATA MOTORS
Crawford, M.J., 2016. An Analysis of Operating Environment & Strategy: A Case Study of Tata
Motor.
Donnelly, T., Begley, J. and Collis, C., 2017. The West Midlands automotive industry: the road
downhill. Business History, 59(1), pp.56-74.
Gandhi, M.A., 2017. A Review of the Indian Automobile Manufacturing Sector. IOSR Journal
of Business and Management, 19(3), pp.9-15.
Gopal, A.R., Karali, N., Sharpe, B., Delgado, O., Bandivadekar, A. and Garg, M.,
2017. Improved heavy-duty vehicle fuel efficiency in India, benefits, costs and environmental
impacts (No. LBNL-2001017). Lawrence Berkeley National Lab. (LBNL), Berkeley, CA
(United States).
Gujarathi, P.K., Shah, V.A. and Lokhande, M.M., 2015, May. Design, Modeling, Simulation and
Analysis for Conversion of Conventional Tata Indica Car into Plug-in Hybrid Electric
Vehicle. The 28th International Electric Vehicle Symposium and Exhibition (EVS28), KINTEX,
Korea.
Kamani, R.K., 2017. A Summer Internship Report (Doctoral dissertation, International
Management Institute).
Kate, M.N. and More, M.M., Perceived Customer Expectations in Purchasing Luxury
Commercial Mini Bus (LCV Segment): An Empirical Analysis.
Majumdar, U., Rana, N. and Sanan, N., 2015. India’s top companies for CSR and
sustainability. Published by The Economic Times partnered Future scape & IIM Udaipur:

23BUSINESS STRATEGY OF TATA MOTORS
Retrieved from https://www. futurescape. in/india-best-companies-for-csr-2015/, accessed on
April, 12, p.2017.
MANICKKAVASAGAM, N. and RADHIKA, M.R., 2019. A STUDY ON GROWTH AND
PERFORMANCE OF INDIAN AUTOMOBILE INDUSTRY IN CURRENT
SCENARIO. IJRAR-International Journal of Research and Analytical Reviews (IJRAR), 6(1),
pp.207-214.
Morgan, C., 2017. Public-Private Partnerships and Corporate Social Responsibility: Needs for
and Impacts on Education in India and Indonesia. In Corporate Social Responsibility and the
Three Sectors in Asia (pp. 199-224). Springer, New York, NY.
Mukherjee, D., 2016. Case analysis: Tata Motors' acquisition of Jaguar Land Rover. The
Business & Management Review, 8(3), p.48.
Namita, M. and Gupta, M., 2019. Cross Border Acquisition of JLR: A Boon or Pain for Tata
Motors.
Rajashekar, S. and Mallika, B.K., 2018. A Study on Fundamental Analysis of Automobile Sector
at Edelweiss Broking Ltd, Bangalore.
Ranjan, R. and Tiwary, P.K., 2017. A Comparative Study of CSR in Selected Indian Public &
Private Sector Organisations in Globalisation Period: A Research Finding. International Journal
of Emerging Research in Management and Technology, 6(6).
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education..
Sharma, K. and Kaur, M., 2019. Intangible assets: reporting practices and hidden value
measurement. research journal of social sciences, 10(1).

24BUSINESS STRATEGY OF TATA MOTORS
Singh, A. and Kaushik, T., 2018. Corporate Social Responsibility and its impact on the Indian
Education Sector.
Sugre, H., 2018. Innovation through Internationalization: A Case Study Analysis of Indian
Firms. J Glob Econ, 5(276), pp.1-15.
Taraniuk, L.M. and Gourango, M., 2016. Innovation in marketing of Tata motors (Doctoral
dissertation, Tkachov OO).
tatamotors (2020). [online] Tatamotors.com. Available at: https://www.tatamotors.com/wp-
content/uploads/2018/07/12115930/Annual-Report-2017-2018.pdf [Accessed 15 Jan. 2020].
Túry, G., 2018. Consequences of Technological Changes in the Automotive Industry. GLOBAL
ECONOMIC OBSERVER, 2(6), pp.89-94.
Yadav, N., Tikoria, J. and Dadhich, A., 2017. Pathway towards Competitiveness through
Sustainable Enterprise: A Case Study of Tata Group. International Journal of Global Business
and Competitiveness, 12(1), pp.45-58.