Tata Motors - Marketing Case Study

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)

Tata Motors: Roads to Revival
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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

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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?

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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

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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.

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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.

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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)

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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

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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

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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

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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

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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

19 | P a g e
Exhibit 1.7 Varieties of Passenger Vehicles; Comparison in terms Price, Mileage, Engine

20 | P a g e

21 | P a g e

22 | P a g e

23 | P a g e
REFERENCES
https://en.wikipedia.org/wiki/Tata_Motors_Cars
https://www.google.co.in/search?q=tatamotors+customer+service+reviews%2C+news&oq=tatamotors+customer
+service+reviews%2C+news&aqs=chrome..69i57.22436j0j7&sourceid=chrome&ie=UTF-8
http://www.indiainfoline.com/article/news-top-story/tata-motors%E2%80%99-diminishing-market-share-is-
credit-negative-moody%E2%80%99s-113110803394_1.html
http://epaper.timesofindia.com/Default/Layout/Includes/ETNEW/ArtWin.asp?From=Archive&Source=Page&Skin
=ETNEW&BaseHref=ETM%2F2010%2F10%2F22&GZ=T&ViewMode=HTML&EntityId=Ar00700&AppName=1
https://www.google.co.in/search?q=tata+motors+in+trouble+case+study+analysis&sa=X&ved=0ahUKEwjT68nssP
DWAhXKLI8KHdW0AJUQ1QIInQEoBQ
http://1000projects.org/tata-motors-problems-in-market-mba-literature-survey.html
https://www.google.co.in/search?q=Tata+motors+branding+problems&oq=Tata+motors+branding+problems&aq
s=chrome..69i57.8800j0j7&sourceid=chrome&ie=UTF-8
http://marketingpractice.blogspot.in/2013/05/tata-motors-what-ails-brand.html
http://www.forbesindia.com/article/boardroom/karl-slym-has-a-fix-for-the-ailing-tata-motors/35221/0
https://www.linkedin.com/pulse/tata-motors-problem-branding-dr-vasant-khisty-sammy-consulting/
https://blogs.wsj.com/indiarealtime/2016/07/11/tata-motors-brand-is-bruised-again-by-messi-mess/
http://www.livemint.com/Companies/b6ImKxp8WqUnns6PsCyCCI/Can-Tata-Motors-get-its-groove-back.html
http://www.bluebarn.in/reviving-tata-motors/
http://zeenews.india.com/companies/tata-motors-suffered-from-product-portfolio-quality-and-service-
responsiveness-issues-cyrus-mistry_1957175.html
http://www.forbesindia.com/article/special/tata-motors-to-refine-its-brand-position-guenter-butschek/42719/1
https://automotivelectronics.com/tata-motors-inject-4000cr-investment-part-turnaround-strategy/
http://www.autocarpro.in/news-national/tata-motors-ante-aggressive-pv-cv-growth-game-plan-25872
https://www.autocarindia.com/car-news/tata-motors-reveals-future-platform-strategy-404105

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