Tata Motors: The Car Maker
Tata became India’s third-largest carmaker, with a market share of 14% as of January 2024, according to data compiled by the Society of Indian Automobile Manufacturers.
Tata Motors is India’s largest electric vehicle maker, having nearly 80% of the Indian EV car market.
Car Revenue Bifurcation -
1. Jaguar Land Rover — 69.1%
2. Commercial Vehicle — 18%
3. Passenger Vehicle — 12%
4. Vehicles financing — 0.8%
The world that The TATA covers -
1. India,
2. The UK (Jaguar Land Rover),
3. South Korea (Tata Daewoo),
4. South Africa,
5. China,
6. Brazil,
7. Austria and
8. Slovakia
Powerful Infrastructure
- India- 10 manufacturing facilities
- The UK- 05 manufacturing facilities,
- Europe- 02 manufacturing facilities,
- China- A manufacturing facility in a Joint Venture with Chery Automobiles.
TATA also operates various R&D centers in North America, the UK, Europe, and India.
Capacity Expansion
Acquiring the facility from Ford in Sanand will help in the increase of annual capacity of 300,000 units — scalable to 420,000 units.
NOTE:- {Industrialization of Sanand plant to begin in CY2024}
A TURNAROUND STORY
TATA MOTORS- the big name was not performing as well as they could be when we look at the chart of TATA MOTORS' market share, we find that they have only a 6% average market share in the Indian car market. TATA MOTORS’ dealers were not happy and losing faith as well and the company was also not in a position to help the dealer.“How could you support dealers when you are losing money yourself?”- This one is the most challenging question in front of TATA MOTORS.
THE YEARLY DATA CLEARLY EXPLAINS WHAT MENTIONED ABOVE-
2017- 5.3%
2018- 6.3%
Then there comes one of the most drastic periods in history- COVID-19. This may be seen as the curse of the world but TATA MOTORS proves this period as a boon for themselves, as this is the period of the lockdown when the sales were down and every company was almost on the same line in the matter of sales.
TATAS’ new updated models of cars prove themselves as the new conqueror of the car market. Their new models started getting 4 & 5-star ratings in safety and standards also helped them to revive and robust their business.
During and after COVID-19 TATA played the most conventional move and started to spend more and more on an advertisement, and due to its goodwill, and product value very soon the results favored TATA MOTORS.
Harrier, Nexon, Tiago, and Altroz dwelled on the company’s high safety standards, driving pleasure, better engine performance, aesthetic design, and rich features, in comparison to some of their previous models.
When the demand increased TATA MOTORS increased its prices to record levels that no one thought of in the car industry but due to product quality and customer satisfaction it did not affect their orders and demand.
But this is not the complete story there is a lot to come.
Now TATA MOTORS is peaking its speed and everyone focusing on the same traditional model of cars. Tata Motors initiated selling diesel, petrol, CNG, and EVs in the country, unlike others such as Maruti Suzuki, which sells petrol or hybrid engines, and Skoda Volkswagen which sells only petrol engines.
The adoption of CNG & Electric models provides an extra edge to TATA MOTORS against its rivals. But TATA has a little surprise hidden in his pocket again TATA MOTORS slashed its EV vehicle rates when there came a reduction in the price of battery.
The rest is history TATA MOTORS became a significant player having 14% of the market share.
YOU CAN ALSO PREFER READING THE ARTICLE PUBLISHED IN FORBES INDIA:-
How Tata Motors defied the odds to emerge as India’s third-largest carmaker.
