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Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
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Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
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Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
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Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
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Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
Tata Motors - Marketing Case Study
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Tata Motors - Marketing Case Study

  1. TATA MOTORS: ROADS TO REVIVAL -BY GROUP H TEAM HEMANT GUPTA - (PGP/008/03) P CHANDRA PRIYAN - (PGP/018/03) SAI PRASAD S N - (PGP/028/03) VIVEK BEDSE - (PGP/038/03)
  2. Tata Motors: Roads to Revival 1 | P a g e CONTENTS 1. Company History……………………………………………………3 2. Tata Motors Passenger Vehicles…………………………………….4 Jaguar Landrover…………………………………………………...5 3. Problems…………………………………………………………….5 Branding…………………………………………………………….6 Product Portfolio………………………………………………,.…..7 Decreasing Market Share……………………………………………8 Deteriorating Relations with Dealers & Customers………………... 8 4. Turnaround Strategies………………………………………………..9 Targeting organisational effectiveness………………………………10 Passenger Vehicle Tuning……………………………………………10 Advanced Modular Platform (AMP)……………………………….. 11 Turning Electric………………………………………… .…………..11 Hiring Top-Notch Talent…………………………………….……….12 5. Road Ahead ……………………………………………….…………12 6. Exhibits ……………………………………………………………....13 7. References………………………………………………………… …23
  3. Tata Motors: Roads to Revival 2 | P a g e TATA MOTORS: ROADS TO REVIVAL N Chandrasekaran, the new appointed Chairman of Tata Motors Ltd. had voiced his concern and disappointment with the performance of the company, and hoped that a turnaround occurred, and the company gets back to the path of providing dividends for its shareholders. He clearly stated his priority for growth, education and healthy balance sheet. After discussing with the MD, Guenter Karl Butschek, he said that a short term and a long-term turnaround plan had been put in place in the next 6-9 months. There was a dire need to revise marketing strategies, planning and obtaining the required results. There has been a significant perpetual lag in margins on Passenger & Commercial vehicles of Tata Motors in comparison to their competitors such as Ashok Leyland and Maruti Suzuki over a significant period of time. Tata Motors’s business per say is of around 280000 crores, out of which around 234000 crores owes to Jaguar Land Rover, which is undergoing double digit volume growths and has a good balance sheet. The remaining 35-45000 crore business is covered by the passenger and commercial vehicles segments out of which the passenger cars occupies about 8000-9000 crore business. He spoke of the passenger vehicle segment, where margins have suffered deeply in almost every single car model. A bright spot amongst all this was the winning of the EV (Electric Vehicle Contract), where he believed his team put up a great show and assured that his company will end up being profitable although the bid price was fixed at 10.2 lacs/vehicle, around 2 lacs lesser than the closest bidder, Mahindra & Mahindra. Also, he brushed off concerns about Tata Nano, which he felt was targeted unnecessarily. He said, “It really isn’t a billion-dollar question for Tata Motors” with respect to whether Nano should be produced or shut down altogether, claiming that it accounted for less than 4% of total losses. That they cannot do away with it because it is entry level segment car and most buyers will be first time buyers. He admits that Tata Motors has a comparatively smaller passenger car business in India, and there is a dire need to scale up, being approximately 1/10th of the market leader. Although there is immense scope for capturing markets, with the markets expanding rigorously, the track record of Tata Motors in passenger car segment hasn’t been adequate to arrive at any conclusion. With decreasing market share, shrinking brand identity, frequent management changes etc, can it be concretely predicted as in what is next for Tata Motors?
  4. Tata Motors: Roads to Revival 3 | P a g e Company History Tata Motors Limited (formerly TELCO, i.e. Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company, headquartered in Mumbai, and is a constituent company under the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. Founded in 1945, as a manufacturer of diesel locomotives for commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine tools. The commercial diesel vehicles which were known `Tata Mercedes Benz' (TMB) are now called `Tata' vehicles after the collaboration agreement with Daimler-Benz AG, West Germany expired in 1969. The company also manufactured pulp and paper making machinery. Tata Motors Ltd. had a clear vision with regard to its customers and employees: “To strengthen the Tata brand and create lasting relationships with the customers by working closely with business partners to provide superior value for money over the life cycle. To create a seamless organization that incubates and promotes innovation, excellence and the Tata core values” Tata Motors entered the passenger vehicles market in 1991, shortly after the liberalization policies adopted, with the launch of the Tata Sierra, becoming the first Indian manufacturer to achieve the capability of developing a competitive indigenous automobile. In 1998, Tata launched the first fully indigenous Indian passenger car, the Tata Indica, and in 2008 launched the Tata Nano, the world’s cheapest car. Talking of achieving a global appeal, the MD & CEO of Tata Motors said, “We will look to establish a global footprint and it is imperative that we, therefore, evaluate ourselves with respect to global benchmarks on everything we do”, which would play a significant role in the holistic transformation to make the company future-ready. Thus, over the years, Tata Motors has made global acquisitions - the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased the English premium car maker Jaguar Land Rover from Ford in 2008. The Road Car timeline can be observed in Table 1.
  5. Tata Motors: Roads to Revival 4 | P a g e Table 1: Tata Motors Road Car Timeline, Indian Market Tata Motors has its auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Great Britain and Thailand. It has research and development centres in Pune, Jamshedpur, Lucknow, and Dharwad in India and expanded globally in South Korea, Great Britain and Spain. Tata Motors has a bus-manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which manufactures automotive components and Fiat Chrysler and Tata branded vehicles. The company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of 2016. On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company. Tata Motors Passenger Vehicles Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra, a multi-utility vehicle. This was followed by the launch of the Tata Estate in 1992 (a station- wagon based on the existing Tata Mobile light commercial vehicle) and the Tata Safari in 1998, India's first sports utility vehicle. Tata launched Tata Indica in 1998, the first fully indigenous Indian passenger car. It has exhibited excellent fuel economy, powerful engine and an aggressive marketing strategy, making it one of the best-selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a favourite, with cars being exported to South Africa as well. The success of Tata Indica played a key role in the growth of Tata Motors. In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the world at about ₹120,000 (US$3,000).[3] The city car was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi.
  6. Tata Motors: Roads to Revival 5 | P a g e Over the years, the number of vehicles sold by Tata Motors has been decreasing recently, as seen in Exhibit 1.1(a), 1.1(b) and 1.1(c). This has been observed over a period of time from 2001-16, as seen in the exhibit itself. Jaguar Land Rover Jaguar Land Rover Automotive PLC is the holding company of Jaguar Land Rover Limited, a British blue-chip multinational automotive company, now a subsidiary of Indian automaker Tata Motors. The principal activity of Jaguar Land Rover Limited is the design, development, manufacture and sale of vehicles bearing the Jaguar and Land Rover (including Range Rover) marques. Both marques have long and complex histories prior to their merger, going back to the 1940s, first coming together in 1968 as part of the ill- fated British Leyland conglomerate; and later existed independently of each other as subsidiaries of BMW (in the case of Land Rover), and Ford Motor Company (in the case of Jaguar); Ford later acquired Land Rover from BMW in 2000 following the break-up of the former Rover Group; which was effectively the remainder of British Leyland. Jaguar Land Rover has been a subsidiary of Tata Motors since 2008, when the latter acquired it from Ford. It sold a total of 462,678 vehicles during 2014, comprising 381,108 Land Rover vehicles and 81,470 Jaguar vehicles, with its main market being China. Problems In the past few years, Tata Motors has faced a diverse mix of problem- Deep losses, disastrous sales, poor service and dealer relations, frequent leadership changes and changing brand perception. Ratan Tata, former chairman of Tata Motors had envisioned to transform the company into a global auto conglomerate. Yet, Tata Motors has consistently failed to keep in line and make the envisioned headway in the domestic car market and sustain its market share. Margins have been suffering deeply in every single model of passenger vehicle, albeit Tata Indica. Between 2010-11 and 2015-16, the company’s market share shrunk from 13.97% to 5.35%, as can be seen from Exhibit 1.2(a) and 1.2(b). Hyundai Motor India Ltd, Tata’s nearest competitor, had a lead of 7,191 units in 2010-11 and by 2014-15, the lead had widened to 334,904 units. Due to leadership problems and top-level management exits, there was organizational instability, as a result of which Tata’s car business was run by people who had made their career and had expertise in the commercial vehicles business. Thus, consultants studying the company widely believe that Tata’s passenger vehicle business is being run on the similar lines of commercial vehicles business.
  7. Tata Motors: Roads to Revival 6 | P a g e Citing the above issue, a Senior Automotive Consultant (Name Undisclosed) said, “Look at their product refresh cycles. While competition has added products one after the other, Tata Motors must have used all the alphabets in the English language to launch one version after another of their old cars. That’s how you sell trucks not cars.” Branding The branding of Tata products generally revolves around designs of trust and reliability. On similar lines, Tata Motors virtually transformed the Indian passenger car market in 1998, with the launch of Tata Indica. Although it faced various teething issues, the brand became a trail- blazer, creating a diesel car segment which is affordable and durable. But along with the success came the baggage of perception. In spite of being highly successful car, Tata Indica was perceived to be a car riddled with nagging problems. The lack of refinement and the not- so-perfect build quality became the hallmark of Tata Passenger Cars. Consumers accepted those nagging issues because the value offering was good and unparalleled. With entry of competitors, who oftentimes provided better alternatives with respect to better quality diesel engines and superior build quality. Tata Motors, was unable to effectively respond to this surge of passenger vehicles alternatives, remaining relatively static and stuck in the past for too long, till became overly late. Although the company brought about product refinement, it failed to make the necessary quantum leap to alter the perception problem. This resulted in Tata Cars no longer being a part of the 'choice list' of potential customers. This became a grave problem which needed to be addressed quickly and effectively. Citing the company’s fuzzy brand core proposition, the Co-founder of one of the Gurgaon- based brand strategy firm said, “What really does the Tata badge mean to me? Does it stand for India’s best, or bring the best of the world to me? The brand’s core proposition is fuzzy.” In studies conducted by Tata Motors, it was found that the young generation did not identify the brand appropriately and did not find Tata cars engaging. This was despite the fact that the group has in its portfolio some relatively Pro-Youth Brands such as Starbucks and Fastrack. This brand positioning problem of Tata Motors further compounded with Tata Nano’s positioning as “cheapest car” started to erode the leftover brand value. In recent times, Tata Motors desperate turnaround efforts backfired after signing Argentine footballer Lionel Messi as its global brand ambassador. He got himself entangled with tax fraud and faced jail time. Its newly launched passenger car, Zica, had to be renamed at the last minute after tropical epidemic Zika hit the headlines just ahead of its launch. Hence, there was immense scope for appropriate research to be done before the ideas were actualized. The R&D expenditure of Tata Motors have been tabulated in Exhibit 1.3(a) and Exhibit 1.3(b), where it has been observed that R&D expenditure has grown from 117 Crores in 2001 to 2217 Crores in 2016.
  8. Tata Motors: Roads to Revival 7 | P a g e The brand image of Tata passenger cars has been tarnished to the core. Meanwhile, Butscheck has asked the company’s leadership to rewrite Tata Motors’ brand statement, as against an agency that normally drafts such statements. The current brand statement is loaded with jargons. He wants it to be a simple one. Product Portfolio The car business of Tata Motors was built around the development of relatively similar models such as Indica, Indigo, Manza and Nano, among others. The product mix has been tabulated in Exhibit 1.4(a), (b), where it has been observed that the product mix % has been decreasing from 40% in 2008 to 26% in 2016. Normally, such a model is non-scalable and was in contrast to largely successful auto makers who work with multi-product portfolios where everything from market research to product development fall under same framework, leading to more visible product differentiation. In early 2006, the Safari18 project was initiated at the Engineering and Research Centre at the Tata Motors plant in Pune. The old Safari had been Tata’s workhorse in the sports utility vehicle (SUV) segment for over seven years and it urgently needed a refresh—the ‘18’ stood for 18 months. This was a healthy target by industry standards, but it didn’t garner an increased demand for the product. Rather, it took Tata Motors over six years to finally get the vehicle out of the market and launch the new Safari Storme in October 2012. The overall money spent for this project was about Rs. 400 crores. In the automotive business facing cut-throat competition in India, an error of this kind can prove to be quite costly. In the last six years, sales of utility vehicles in India have skyrocketed. The market has grown by almost four times to more than 5,53,000 units per year. In this same period, utility vehicles manufacturer and competitor Mahindra & Mahindra launched three completely new vehicles (Xylo, XUV 500 and Quanto), refreshing its existing portfolio (Bolero and Thar). Even India’s largest car maker Maruti Suzuki, which was primarily a small car manufacturer, launched a hugely successful UV from scratch called Ertiga. Moreover, the entry of Renault’s into the SUV space with Duster, has captured the whimsy of Indian customers. Who was caught napping? Tata Motors. All this culminated in Tata Motors underperforming in a segment where it enjoyed pole position just a few years back. With the entry of seven new global manufacturers and the introduction of 150 new models over a period of 4 years (2008-12), the passenger vehicle segment witnessed fierce competition, which Tata Motors could not cope up with. In the table below, we can see how market share has been declining in this years.
  9. Tata Motors: Roads to Revival 8 | P a g e Declining Market share As it is evident from the below Table 2, Tata Motors has seen constant decline in the market share. In years 2005-15, it has declined from 16.9% to 6.9%. Dealer and Customer Relation Problems In October 2012, Karl Slym had recently joined Tata Motors as the new Managing Director. He was keen to get a pulse of the organisation quickly to rectify the miscalculations and errors made earlier. He asked Tapan Ghosh, Regional Manager (West) in the Passenger vehicles division to fix up a meeting with Kasturi Wasan, owner of Wasan Motors, one of the oldest and largest dealers of Tata Cars in India. The meeting was fixed at Wasan’s Tata-Fiat dealership in Chembur, Mumbai at 5 pm. Slym walked into Wasan’s sprawling fourth floor office, overlooking the Sion-Trombay road, with two of his colleagues—Prashant Fadnavis, head of marketing services, and Ghosh. After exchanging pleasantries, Slym got down to business, and asked “So Mr Wasan, how is it going?” Wasan had been waiting for this opportunity for a long time and he didn’t hold back. Sales had plummeted to 225 units per month compared to an average of 900 units in 2008-09. Despite all kinds of marketing pushes and strategies e.g—buy a Nano with a credit card, exchange your old motorcycle for a Nano etc., the car had largely remained a non-starter. It was the same story with Manza, Indica, Safari and Aria. The footfall in his showroom was dwindling and his sales-staff were dissatisfied and demoralised. “With these issues, I will not have enough money to even pay salaries to my staff. In fact, I have been thinking of closing this dealership because I have been making losses for the last two years,” he told Slym.
  10. Tata Motors: Roads to Revival 9 | P a g e The new MD heard him out patiently. At the end of the meeting which lasted about 90 minutes, Slym said, “No, Mr Wasan, don’t give up. Give me 90 days and I will do something. If you still think your dealership is not viable, then you are free to go.” Slym’s promise of 90 days ended in December 2012. It is now actually more than 180 days but Wasan hadn’t heard from him. During this period, Ghosh quit to join Hyundai. According to sources, in the last financial year, Wasan’s Tata dealership made a loss of about Rs 6 crore. In March, 2013, he sold only 70 units. He was seriously contemplating pulling the plug. He won’t be the only one to have done that. During the period of 2009-2012, Tata Motors has lost three large dealers in Mumbai, one in Pune, one in Chandigarh, two in Hyderabad and two in Delhi. RMJ Motors, after running Tata Motors' dealerships in Madhya Pradesh at multiple locations for seven years, finally bid adieu to the Indian passenger vehicle maker and has moved on to Maruti Suzuki. Pune based BU Bhandari Auto, which became a Tata Motors dealer at launch of Indica switched to rivals because of less profit margin provided by Tata motors and declining sales. The volume sales growth of the products has been decreasing and even reached negative values over the years, as observed in Exhibit 1.5(a) and 1.5(b), which gives specific details of the same. Turnaround Strategies Tata Motors is India’s largest automaker by revenue and ranks 5th in both, the list of largest Commercial Vehicle manufacturer globally and largest Passenger Vehicle manufacturer in terms of domestic sales. The automaker is not satisfied with its ranking and has officially stated that it aims to grab the 3rd place in both those above-mentioned lists by 2019. In an investor presentation, the carmaker announced its turnaround year for this fiscal year. The company plans to inject a total investment of 4,000cr, which would be divided into 1,500cr for the development of new commercial vehicles and 2,500cr for the launch of new passenger vehicles. The current mix of Tata Motors’ passenger vehicles on road can be seen in Exhibit 1.7, where they have been differentiated in terms of price, mileage etc. The company also intends to save additional 1,500cr through different cost optimization techniques, which would be added to the profits of the domestic business. It also plans to set some of its plants into “temporary hibernation” till they derive ways to make optimum use of all the plants. This is imperative considering Tata Motors reported a loss of Rs 2,800 crore despite Rs 49,100 crore sales turnover in 2016-17. While rigorous cost reduction is expected to be across all categories and functions and by raising the bar for impact projects, there will be a sharper focus on bringing products to market faster. Moreover, Tata Motors is working towards a strategic supplier base designed to build a
  11. Tata Motors: Roads to Revival 10 | P a g e lean and capable supply chain and increase market share as seen in Exhibit 1.6 compared to its main competitors. Tata Motors also announced a new corporate identity, titled ‘Connecting Aspirations’ that aims to define the company “as a brand that intuitively understands people and imagines mobility in all its forms.” Targeting organisational effectiveness Targeting organisational improvements – to be a leaner and stronger organisation, Tata Motors initiated a new structural revamp programme designed to bring about ‘speed, simplicity and agility’. This involves sharply reducing managerial levels from 14 to 5, ensuring empowerment within business units and more frontline-facing roles to improve customer centricity. This, combined with an intense top line focus and agile cost management, is aimed at creating a positive bottom line and bringing momentum to the entire organisation. Passenger Vehicle Tuning Tata Motors's passenger vehicle business has been making huge losses and a substantial part of it is riding on the new crop of technology-laden products like the Tiago hatchback, Tigor compact sedan and the Hexa crossover. All three vehicles have given the company an uptick in sales as well as PV market share. During the April-July 2017 period, Tata has sold a total of 56,506 units (+7.81% YoY) and currently has a PV market share of 5.50 percent. In Q1 FY2018, the company also signed a contract with the Indian Armed Forces for supply of 3,192 Tata Safari Storme 4x4s. The next – and absolutely critical – product for the company is upcoming Nexon compact SUV, which is to be launched next month and Tata’s answer to the Ford EcoSport and the Maruti Brezza. It will be the last of the ‘bridge products’ or those on legacy platforms. The Nexon, which will be the company's first compact SUV, also promises to deliver fatter margins and stem the flow of red ink in the PV division. Guenter Butschek, managing director, Tata Motors, confirmed that Tata Motors will launch new five- and seven-seater SUVs in FY2018- 19. Advanced Modular Platform (AMP) With its Advanced Modular Platform (AMP), Tata Motors plans to cut the number of component suppliers from 200 to under 100. The first car to be built on AMP will be a premium hatchback (codename X451) slated for rollout in 2019. The estimated initial investment will be Rs 2,500 crore. The company, which has a product plan ready till FY 2022 to leverage the full benefits of the modular platform as well as structural cost reduction, is targeting No. 3 position in the Indian PV market. “We plan to deliver more number of products, for greater market coverage, with lesser platforms. Going forward, we will work with a next generation advanced modular platform for all our future vehicles enabling a faster time to market approach. We will reduce our current 6
  12. Tata Motors: Roads to Revival 11 | P a g e platforms to 2 platforms. The idea is to roll out more nameplates per platform and reduce complexities. The strategy is to deliver 7-8 product variants from two platforms, for greater coverage and sizable economies of scale. Our investments have been channelized towards the new wave of transformation in our business” said spokesperson of Tata Motors Passenger Vehicle Division. The changes projected in Supplier bases can be seen in Table 3. Table 3: Changes in Supplier Bases for Tata Motors Turning Electric Tata Motors started to work on the electric variant of its two entry-level cars — the Nano and Tiago. The company is offering a comprehensive five-year warranty on the e-Tigor, while the warranty on e-Verito is for three years. Tata Motors is likely to sell electric cars in the open market as well. The company won a government-administered tender to sell 10,000 electric variants of the Tigor, its sedan car. Priced at Rs 10.16 lakh, it will be the company’s first electric car, supplies of which will begin in November, 2017. All the cars will be supplied by October 2018. Tata Motors emerged as the lowest bidder in the tender floated by Energy Efficiency Services Ltd (EESL), a joint-venture comprising four government-owned power sector entities — NTPC, Power Grid, Power Finance Corp and Rural Electrification Corporation. It was the single-largest tender in the world for procurement of e-vehicles, stated the government.
  13. Tata Motors: Roads to Revival 12 | P a g e Hiring Top Notch Talent Vivek Balasubramaniam Srivatsa, the former Product Group Head (Marketing) at Maruti Suzuki has joined Tata Motors as Marketing Head for the Passenger Vehicle Business of the group. Srivatsa brings along an experience of over 23 years in sales and marketing, across consumer durable and automobile industries. He was also responsible for marketing communication, product management, planning and distribution. He had worked with Maruti Suzuki from August 2007 to December 2010 as product group head- Marketing. Srivatsa was responsible for new Product development, marketing campaigns, brand positioning and KPI, managing product portfolio, profitability, market share, top line sales and growth. During his tenure, Maruti launched new product in every three months. After his appointment, Tata Motors has successfully launched many new products in the market and many more are in the pipeline. They are eyeing 12 new models in commercial vehicle (CV) and passenger vehicle segments over the next three years, as reported by CNBC-TV18. The company plans to launch six new cars over the next three years. These cars have been codenamed X-451, X-422, X-445, X-434, X-441 and X-442. Cars part of the pipeline include entry-level small car, mid-sized sedan and compact SUVs. As the result of these efforts, Tata Motors has outpaced the market in FY17, growing 23 per cent when the industry expansion was 8-9 per cent. Executives are now expecting as much as 30-40 per cent growth this year, owing to the models it launched recently and those that are in the immediate pipeline. Road Ahead Even after all the these turnaround efforts there is still more left for Tata motors to work on. It is the tarnished brand value of the Tata cars. They have to put lot of efforts and money to regain the brand equity. Apart from this Tata motors customer service has been poor and its is also an important area to work on.
  14. Tata Motors: Roads to Revival 13 | P a g e EXHIBITS Exhibit 1.1: 1.1 (a) Number of Vehicles Sold in period 2001-07 1.1(b) Number of Vehicles Sold in period 2007-16 72 89 104 140 179 189 228 0 50 100 150 200 250 2001 2002 2003 2004 2005 2006 2007 Number of vehicles sold(in thousands) Number of vehicles sold(in thousands) 218 208 260 320 333 229 142 137 127 0 50 100 150 200 250 300 350 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of vehicles sold(in thousands) Number of vehicles sold(in thousands)
  15. Tata Motors: Roads to Revival 14 | P a g e Exhibit 1.1(c) Approximately number of vehicles sold from 2001-016 Year Number of vehicles sold (in thousands) 2001 72 2002 89 2003 104 2004 140 2005 179 2006 189 2007 228 Exhibit 1.2(a) Decreasing Trend of Tata Motor’s Market Share from 2008-16 14 14 14 14 13 9 5.8 5.3 4.6 0 2 4 6 8 10 12 14 16 2008 2009 2010 2011 2012 2013 2014 2015 2016 Market Share(%) Market Share(%) Year Number of Vehicles sold (in thousands) 2008 218 2009 208 2010 260 2011 320 2012 333 2013 229 2014 142 2015 137 2016 127
  16. Tata Motors: Roads to Revival 15 | P a g e Exhibit 1.2(b) Approximate Numbers per year Market Share of Tata Motors Exhibit 1.3(a) Yearly R&D expenditure by Tata Motors from 2008-16 1196 1437 1167 1187 1549 1759 2144 2204 2217 0 500 1000 1500 2000 2500 2008 2009 2010 2011 2012 2013 2014 2015 2016 R&D Expenditure(in Crores) R&D Expenditure(in Crores) Year Market share (%) 2001 10 2002 13 2003 15 2004 16 2005 17 2006 17 2007 16 Year Market share (%) 2008 14 2009 14 2010 14 2011 14 2012 13 2013 9 2014 5.8 2015 5.3 2016 4.6
  17. Tata Motors: Roads to Revival 16 | P a g e Exhibit 1.3(b) Appropriate Figures (in crores) of R&D expenditure Exhibit 1.4(a) Proportionate amount of each product it offers to its customers (Product Mix) 40 42 40 39 37 29 26 28 26 0 5 10 15 20 25 30 35 40 45 2008 2009 2010 2011 2012 2013 2014 2015 2016 Product mix (%) Product mix (%) Year R&D Expenditure (in crores) 2008 1196 2009 1437 2010 1167 2011 1187 2012 1549 2013 1759 2014 2144 2015 2204 2016 2217 Year R&D Expenditure (in crores) 2001 117 2002 125 2003 143 2004 152 2005 393 2006 476 2007 797
  18. Tata Motors: Roads to Revival 17 | P a g e Exhibit 1.4(b) Approximate Values of Product Mix 2001-16 Exhibit 1.5(a) Graphical Representation of Sales Volume Growth % during 2008-2016 -4.4 -4.6 25 23 4 -31.2 -38 -3.5 -7.3 -50 -40 -30 -20 -10 0 10 20 30 2008 2009 2010 2011 2012 2013 2014 2015 2016 Volume Growth (%) Volume Growth (%) Year Product Mix (%) 2001 44 2002 52 2003 50 2004 48 2005 48 2006 46 2007 42 Year Product Mix (%) 2008 40 2009 42 2010 40 2011 39 2012 37 2013 29 2014 26 2015 28 2016 26
  19. Tata Motors: Roads to Revival 18 | P a g e Exhibit 1.5(b) Percentage Values of Volume Growth in period 2002-16 Exhibit 1.6 Declining Figures of Market Share for Tata Motors (in % terms) Year Volume Growth (%) 2001 2002 23.6 2013 16.8 2004 34.6 2005 27.8 2006 5.6 2007 20.6 Year Volume Growth (%) 2008 -4.4 2009 -4.6 2010 25 2011 23 2012 4 2013 -31.2 2014 -38 2015 -3.5 2016 -7.3 Year Tata motors Maruti Suzuki Hyundai M&M 2005 17 45.9 13.4 7.5 2006 17 46.1 13.9 7.4 2007 16 45.9 14.1 6.5 2008 14 46.5 14 8.4 2009 14 44.6 15.9 7.8 2010 14 45.3 16.4 8.1 2011 14 38.4 14.7 7.3 2012 13 39.4 14.8 9.5 2013 9 42.1 14.3 11.6 2014 5.8 45 15.2 10.2 2015 5.3 47.5 16.2 8.4 2016 4.6 47.4 16.7 7.8
  20. Tata Motors: Roads to Revival 19 | P a g e Exhibit 1.7 Varieties of Passenger Vehicles; Comparison in terms Price, Mileage, Engine
  21. Tata Motors: Roads to Revival 20 | P a g e
  22. Tata Motors: Roads to Revival 21 | P a g e
  23. Tata Motors: Roads to Revival 22 | P a g e
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