Market Analysis of Tata Motors: Economic Characteristics and Key Success Factors

Running head: MARKET ANALYSIS OF TATA MOTORS
MARKET ANALYSIS OF TATA MOTORS
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1MARKET ANALYSIS OF TATA MOTORS
Executive Summary
The analysis of the report is based on the examination of the economic characteristics of the
global industry of automobiles. The ways with which the economic characteristics of this
industry influences the different companies is analysed in detail. The key success factors of
the industry are also analysed. The company that is taken into consideration for this analysis
is Tata Motors Limited. The company is analysed based on the Porter’s five forces analysis.
The financial condition of the company is also analysed in this report. The report is
concluded by the learning that the company has held its position even after the loss incurred
after the failure of the Tata Nano project.

2MARKET ANALYSIS OF TATA MOTORS
Table of Contents
Introduction....................................................................................................................3
Discussion of Tata Motors.............................................................................................3
Economic characteristics of the global motor industry..............................................3
The key success factors of the industry......................................................................4
The driving forces of the industry in the year 2014...................................................6
Assessment of the financial situation of Tata Motors................................................6
Position of the company in the industry.....................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................8

3MARKET ANALYSIS OF TATA MOTORS
Introduction
Tata Motors limited is an Indian company that operates in the field of the manufacture
of automobiles and the company is also known as TELCO which is the short form for Tata
Engineering and Locomotive Company. The company has its headquarters in Mumbai, India
and it is multinational company which is a member of the Tata Group. The products
manufactured by this company include, trucks, coaches, vans, buses, construction related
equipment and sports cars. The company has its plants for manufacturing purposes in
Pantnagar, Lucknow, Pune, Dharwad and Sanand. Tata Motors has its plants in Great Britain,
Argentina and South Africa as well (Tatamotors.com 2017). This report is based on the
analysis of one of the dream projects of the company which is the Nano car. The car was
tagged as “the world’s cheapest car” and was launched in the year 2009. The was priced at
one lakh rupees which amounts to approximately two thousand US dollars. The analysis in
this report is based on the examination of the performance of Tata Nano in the market in the
last eight years. This will be based on the analysis of the economic characteristics of the
automobile industry and forces that drive this industry as well (Tatamotors.com 2017).
Discussion of Tata Motors
Economic characteristics of the global motor industry
The global industry of motor vehicles has gone through a tumultuous phase in the last
five years. The main factors that have affected the industry of motor vehicles are the price of
fuel and the changes of the preferences of consumers of cars. The preference of the car
consumers has shifted from the petrol and diesel driven ones to the electric cars. The focus of
the consumers has shifted from big cars to the small ones in the recent times due to the prices
of fuel (Amador, Cappariello and Stehrer 2015). The main factors that affect this industry
include, the pressure related to pricing, the spending trends of the consumers, the increase in