Background of Tata
1: Logo of Tata Motors (Glass, Lewis & Co, 2016)
in 1945, the Tata Motors is the India’s largest automobile company, and was
formerly known as TELCO (Tata Engineering and Locomotive Company). It has grown
rapidly since it was founded by Jamsetji Tata in 1868 (Tata Motors, 2018). The Tata Motors is the leader in
commercial vehicles in each segment, among the top in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. It
is also the world’s fifth largest truck manufacturer and fourth largest bus
manufacturer (Tata Automobile Corporation South Africa, 2012).
Tata Motors vision is “As a High-Performance Organisation, we are, by FY 2019, among
the top 3 in Global CV and Domestic PV, achieving sustainable financial
performance and delivering exciting innovations” and the mission is “We
innovate, with passion, mobility solutions to enhance quality of life”.
Moreover, the six values of Tata Motors are integrity, teamwork,
accountability, customer focus, excellence and speed (Tata Motors, 2015).
1948, the Tata Motors introduced the first steam roller in collaboration with
Marshall Sons (UK), and in 1954 TELCO started to manufacture medium commercial
vehicles in a joint venture with Daimler-Benz (Schuster & Holtbrugge, 2011). With the foundation
of the Research and Development Centre at Jamshedpur, Jharkhand, in 1959 and
the Engineering Research Centre at Pune, Maharashtra, in 1966 Tata Motors was the
first Indian carmaker that was able to produce direct injection engines
the company also offered the commercial and passenger vehicles in others
countries such as in Europe, Africa, the Middle East, South Asia, South
America, CIS and Russia. It also has joint venture assembly operations in Bangladesh,
Ukraine and Senegal (Tata Motors, 2018).
In addition, the company also has a leading market position in
commercial vehicles in India and continuously increases its market share in
different passenger car segments. In 2009-10, the Tata Motors domestic sales of
heavy vehicle and buses increased by 36.5% to a total of 155, 161. The sales of
light commercial vehicles grew by 44.2 % to 218, 681, and sales of passenger
cars grew by 25.3% to 260, 020 (Schuster & Holtbrugge, 2011). After a few years, in
2017, the Tata Motors commercial vehicles domestic sales was increased at 40,
447 units, a growth of 62% compared to 24,998 units in December 2016. Moreover,
the Tata Motors passenger vehicles sales performance also grew at 14, 180
units, which growth of 31% over last year (Tata Motors, 2018). Below figure are the market shares of
Tata Motors in different automotive segments.