Tata Motors Limited: Innovation of Electric Cars - Business Report

This report provides a comprehensive analysis of Tata Motors' innovation in the electric car market. It begins with an executive summary highlighting the importance of innovation in the automotive industry, particularly with the rise of electric vehicles. The report then delves into Tata Motors' organizational view, followed by a discussion on the innovation of electric cars, and Tata Motors' approach to it. A detailed macro-environment analysis is presented, including political, economic, social, technological, and legal factors. The report further employs the VRIO framework, Porter's Five Forces, and SWOT analysis to assess Tata Motors' competitive position, market dynamics, and internal capabilities. Leadership strategies, challenges, and opportunities are also discussed, concluding with recommendations for future strategic direction. The report emphasizes the impact of environmental changes, technological advancements, and market trends on Tata Motors' innovation process, providing a holistic view of the company's adaptation to the evolving automotive landscape.

Tata Motors, Limited
Innovation Of Electric Cars
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Executive Summary
Innovation is the important aspect every business entities pay attention because in the present
developing and competitive market deal with the innovation with effective strategies is
necessary for a long-run journey. Industry of automobile is very wide and it has been
developing many ideas and innovation to facilitate the production of cars and other vehicles
with innovative ideas to increase sells and to attain the sustainable profit. Electronic cars are
most developing innovation and this report will discuss the innovation of the electric cars in
the Tata Motors. Tata Motors is an Indian company that hold global market of the innovation
in the automobiles; this report will examine the external and internal environment affecting
the procedure of innovation in Tata Motors.

Contents
Introduction...........................................................................................................................................3
Organisation view..................................................................................................................................4
Innovation of electric cars.....................................................................................................................5
Tata motors and innovation...............................................................................................................6
Macro environment analysis..................................................................................................................6
VRIO framework analysis of Tata motors.............................................................................................9
Porter’s five forces analysis.................................................................................................................11
SWOT analysis....................................................................................................................................12
Leadership strategy..............................................................................................................................14
Challenges.......................................................................................................................................15
Opportunities...................................................................................................................................16
Conclusion...........................................................................................................................................16
References...........................................................................................................................................18

Introduction
This report aims to identify the impact of the changes in the automobile industry, as
introducing the electric cars in the automobile sector leading organisations face challenges to
make strategies meeting the requirement of the innovation. Introducing the electric cars in the
automobile sectors is very effective step taken by industries to reduce the emission impact
over the nature. Automotive industry is facing many developing changes in the industry,
these mass changes affect the small, or big, domestic, and international all types of
companies (Tata 2020). Adaptions of new and developed technologies in the sector of
automotive industry consider three essential and general methods to meet the changes
requirement. These approaches are taking or bringing the new technologies in the industry,
continuously optimization, and enhancement in the manufacturing department, and managing
the effective supply chain to transport and deliver developed products to the targeted
customers (Tata 2020).
This report will discuss impact of the changes on an automotive industry and the method it
used to meet the change with successful return to the organisation; organisation selected for
this assignment is Tata Motors Limited, a successful leading organisation at global level,
operating in many countries with its subsidiaries’ and partnership firms with other leading
organisations (Al Khajeh 2018). This report will analyse internal and external market
conditions to examine the supportive and challenging aspects of the organisational
environment. Various frameworks used to analyse the impact of innovation in the automotive
industry. Electric cars introduced by the automobiles industries are a part of their sustainable
development goals, this innovation sis aimed to save the earth from toxic gases of emission
and to secure the natural oils for the future generation (Al Khajeh 2018). Tata motors Limited
with its initiative and innovative designs has participated actively in the changed scenario,

impact of this change on the organisation is discussed in this report with the
recommendations of suitable strategies to the lead the organisation to adapt the change.
Organisation view
Formerly famous as Tata Engineering and Locomotive Company Limited (TELCO), Tata
Motors Limited is an Indian company operating as a global locomotive industrialized
company was established since 1945, at by J. R. D. Tata at Jamshedpur. Tata Motors Limited
is listed on the Bombay Stock Exchange, New York Stock Exchange in America, and on
National Stock Exchange of India Limited with its annual revenue around ₹ 301,938 Crore
and total assets worth 307,194 Crore. It is a successfully operating company serving in₹
diversified products and services in automobiles, sports cars, transportation vehicles, buses,
coaches, commercial vehicles, auto spare parts, and military vehicles (Barbaro & Spoehr
2014).
Tata Motors Limited is offering services in automotive designing, outsourcing services, and
engineering services at worldwide. Tata group is the parenting company operating the
services in Tata Motors Limited and worldwide operating with the acquisition and
partnership in subsidiaries as Jaguar Land Rover, Tata Technologies, Tata Hispano, and Tata
Daewoo. Research and Development department of the organisation is engaged in planning
the innovative strategies to meet the development in the market. Electronic cars
manufacturing innovation by the leading automobiles companies is very important
innovation, meant to meet the environment development and protect the nature from harmful
gases and emission of toxic gases (Barbaro & Spoehr 2014).
Tata Motors adopted the innovation as a challenging factor to meet the requirement of the
developed innovation in the automobile technology and tried to plan activities in order to
manufacture and selling of the innovative services in the targeted market. it is operating in the

global market hence it need to meet the demand of every country or particulate reign it is
trying to sell its product, Indian market is domestic and selling of the electric cars in the
overseas countries like the United States, have different challenging factors (Bauwens,
Audenaert & Decramer 2019). Innovation of the electronic cars in the industry is a new
concept that the Tata motors limited have to deal in domestic and global automobile market
with the innovative strategies and leadership.
Innovation of electric cars
Innovation in automobile industry play very significant role to develop the external and
internal competition among the industries participating in selling or manufacturing of the cars
in the international market. Innovation of the electronic engines were introduced more than
the expected time one can think, since 1884 first electronic car was introduced by Tesla
motors in London and another design was produced in Germany in 1888 as the Flocken
Elektrowagen (Conlon & Perkins 2018). Late in the 18th century and 19th century, electric cars
became popular because of their cosiness and comfort of use by equalling technology at the
time. Electric cars are running effectively in the innovative world of automobiles, because
many developing technologies used in the electronic cars provide effective solution to the
issues related with the old conventional vehicles or cars (Lee 2019).
New electric cars are very popular because these are very effective and easy to use with
effective outcomes to the user and manufactures as well. These cars are free of the emission
of the harmful gases hence these are very suitable for the environment (Busse & Regenberg
2018).
Rapid increase or hike in the price of the petrol and gases needed to run the old conventional
vehicles many challenges were occurring in the automobile sector, but electric cars consumes
the power and electricity and these are easily chargeable at home like smart phones for the

use in next time. Hence, issue of the high price and hike of the petroleum and gases does not
affect the running of the electric cars (Pathak 2016). On the other hand, electric cars became
famous in the medium earning families due is affordability and easy to use techniques. This
affected the world of the innovation in the automobile sector and many brand of the
automobile sector as if Toyota, Tesla, and Tata entered in the manufacturing of electric cars
to earn maximization in the production and profit (Crawford 2016). Innovation of the electric
cars in TATA Motors is very interesting with many challenges and opportunities as discussed
below:
Tata motors and innovation
Tata motors limited is successfully operating the innovation in the present and is ready to
adapt the innovative idea for the competitive position in the market (Bauwens 2018). Ratan
Tata is a successful person using the effective leadership styles to implement the innovation
in the automobiles sectors, as introduction of the Nano cars to facilitate the cars facility to the
medium earning families (Singh 2019). According to a study presented in the “India Today”
Ratan Tata has planned to implement the Tork Motors, to produce and launch the electric
cars. Hence innovation is important aspect even after many unsuccessful attempts for
example, Nano in the Tata motors (Dhekale 2014). A deep analysis of its external and
internal environment to describe the effective environment is as follows;
Macro environment analysis
Tata motors limited a very successful Indian multinational automobile company is part of the
$100 billion Tata group, it is operating in the multinational framework hence it has to deal in
the in the international macro environmental framework including political, environmental,
social, technological, legal, and economical aspects of the countries where it operates

(Bauwens, Audenaert & Decramer 2019). A detailed analysis of these aspects on the
operation of Tata Motors is presented as:
Political
Political environment of the domestic country of Tata motors, India is very challenging and
its rapid changes affect the operations of the manufacturing and production of the vehicles.
As it introduction of the GST (Goods and Services Tax) by the Indian government in the year
2017, opened the growth of the opportunity for the Tata Motors (Breuer & Upadrasta 2017).
Old tax system in the India was very difficult and levied on the production and manufacturing
units of the automobiles industries (Lee 2019). New tariffs introduced by the government to
trade with the overseas countries are positive and negative to affect the opportunity of the
growth of the Tata Motors, like investing in the jaguar and ford motors manufacturing at the
broad level. Impact of the overseas politics like UK and other countries affect the operation
and introduction off the new aspect in the present world as negative impact of the Brexit,
over the operation of the Tata Motors in the sales of the Jaguar Land Rover declined in the
year 2017-18 (Choi, Kim & Kang 2017).
Economical
Industrial sector of India support 23% of to the Indian economy, and automobile sectors as if
Tata Motors is one of the best leading industries operating manufacturing and selling of the
cars to the overseas countries as joint venture or in partnership with the successful industries
(Ray & Ray 2011). Brexit impact of the UK economy affected the operations of the Jaguar in
the UK for the Tata motors, but innovation in the country open the growth opportunity for
Tata Motors. Demonetization in the year November 2016 affected the entire industries in
negative manner but promotion to the cashless economy and elimination of black money

leaded the issues to the industries due unavailability of the cash. Less cash affected the
manufacturing and production of the cars in Tata Motors (Busse & Regenberg 2018).
Social
Car holding was seen as the status symbol in the recent few years, but with the development
of the Uber and Ola cab services, not only millions but also a normal earning person can use
cars for the traveling and this also affected the selling of the cars in negative manner (Tiwari
2016). In the developed and developing countries, cars is no more seen as status symbol it is
assumed to be a source of the traveling and these are easily available on rent for everyone
(Conlon & Perkins 2018). This change in the trend of the cars selling and uses has negatively
affected cars manufacturing industries.
Technological
Technological development of automobile sector in India and in the overseas countries,
innovation of the driverless sensuous cars and electric cars by the competitive dealers and in
the international Tata Motors also face force to cope with the developed technological
environment (Tata 2020). Research and Development department engaged in the
development adaption of the innovation ideas with effective development techniques, these
developed techniques of the intelligence and electric cars is connected with a major global
trend. Global connected market is assumed to the raised up to $219.21 billion in year 2025.
Presently development in the technological with innovation is increasing rapidly and this is
very challenging to keep updated with the turns and curves of the development of technology
and intelligence in the automobile sector (Clarsen 2010).
Legal

Goods and Service tax and demonetization in the country and Brexit at the UK affected the
growth and opportunity to develop the business in Tata Motors very deeply, where tax
policies are changed and this is very positive sign to develop the environment of small cars
manufacturing like SUV’s and many other in effective impacts over the buyers (Clarsen
2010). Changes in the regulation of trade in the overseas countries affect the operations of the
selling. Many legal factors in the organisation affects the operations like demand of the
product in the domestic countries, demand of the cars in the overseas market and changes of
the legal regulations regarding the exportation and manufacturing of the cars in the market of
the overseas countries (Vakhariya 2017).
Environmental
Most challenging factor in the external environment of the automobiles industry is the impact
of the organisations on the environment of the country. Manufacturing and uses of the
conventional cars create harmful impact over the environment many changes are introduces
by the countries government to reduce the uses of such vehicles (Tata 2020). Government of
India introduces the emission norms that restrict the automobile manufacturing industries to
reorient their emission report and level of emission in the environment is under control with
valid proof, this law is estimated to be applied form April 2020 (Conger 2015). Hence, these
changes raised threats and issues to the car manufacturing companies, planning to respond
these changes Tata motors have introduced the EGR (Exhaust Gas Recirculation) and SCR
(Silicon Controlled Rectifier) with an effective climate change agenda.
VRIO framework analysis of Tata motors
valuable Rare
 Financial resources of the Tata
Motors play very significant role to
 Employees and human resources in
Tata Motors are very valuable as they

provide support to its all operations
 VRIO analysis of Tata Motors
represents the employees and human
as the important resources to
suggesting the innovative ideas and
skills to meet the emerging challenges
in the overseas and domestic market
 According the VRIO framework,
shareholders and patents of the
organisation are valuable because
these are the base to deal the
challenging strategies of the
development in the competitive
market.
 Cost structure of the Tata Motors is
challenging and is not counted as the
valuable because method of the
production and manufacturing cost
higher rate of the materials to the
organisation
are well trained with effective training
programs making them profitable to
the organisation.
 Financial resources of Tata Motors
are rare according to the VRIO
framework, because highly profitable
and sufficient financial resources are
available only in few firms.
 Patents of the Tata Motors are
recognised as the rare resources
because of their effective availability
only for the Tata motors as these
patents are not easily accessible for
other organisations.
 Network of the distribution of the
Tata motors is identified as a rare
resource, because competitors of Tata
motors are not able to acquire and
develop huge and effective
distribution of network.
Imitable Organisation
 As discussed in the VRIO framework
analysis of Tata Motors financial
resources are identified as costly to
imitate because Tata Motors has
 Financial resources of the Tata
Motors are organised and strategically
invested in the right and profitable
place to use the opportunities and

earned these through protracted
profits or many years, new entering
competitor organisation face
difficulty to meet the standard rates of
the financial resource and stability
 Human resources in the Tata Motors
are not costly to imitate, as training
and skill development technologies
and leadership is easily acquirable
and by the competitors.
 Patents in Tata Moors are difficult to
imitate by the competitors as these are
difficult to buy or registrar in the
patents
 As identified by the analysis of the
VRIO Framework of Tata Motors,
distribution of the network is very
difficult and costly to be imitate by
the others as it is developed after a
long duration with detailed
investment
make the organisation profitable in
the industry
 Employees of the Tata motors are
highly skilled and talented identified
as the organised by the VRIO
framework, because they are trained
and have effective skills to deal the
challenges and operations
 Patents of the Tata Motors are not
organised effectively because many
patents are not effectively used by the
Tata Motors to deal the challenges of
the innovation
 Distribution of the network in the
Tata Motors is identifies as the
organised resource because it provide
a challenging environment to the
competitors and a framework
sustaining the operation of the
organisation