Is TATA Motors PV business turnaround real? If so how does it happened?

1. A case study on business
turnaround of TATA Motors PV
Segment
Sai Krishna Gudibandi

2. Segment’s Overview & History
History
1st Indian to
own a car!!!
Before 1930 s
Only in 1940 s
India started
Producing cars
1981
Things got
changed
Overview
1998
India’s 1st fully indigenous passenger car
GDP
Contribution
CAGR
Domestic Sales : 6.75%
Exports : 2.14%
(FY15-FY19)
Total PV : 4Mn
Domestic Sales: 3.3Mn
Exports : 0.7Mn
We are the 4th largest producer

3. Company Overview
Tata Motors
Founded by J. R. D. Tata in 1945
Presence 125 countries
Touch points 8,400
Employee Strength 79,000
Chairman N. Chandrasekaran
CEO Mr. Guenter Butschek

4. The history of TATA MOTORS
Previously known as Tata Engineering and Locomotive Company (TELCO)
The company stated with
manufacturing of
Locomotives & other
engineering products.
Steam road roller introduced
in collaboration with
Marshall Sons UK.
Out rolled the first
commercial vehicle, The
TMB 312 truck.
The 1210 series of vehicles
set out from Jamshedpur.

5. Telco began to
travel under Tata
brand
Indian roads discover
the Tata 1210 Semi-
forward model
Manufacture of
heavy commercial
vehicle commences
Launch of the 1st
indigenous passenger
vehicle Tata Sierra
India’s 1st SUV
Safari
Launched of its 1st
MUV

6. • Indica was the 1st fully indigenous
passenger car.
• Completely tailor made for India.
• It was such a car that Indian buyers
wanted but never given.
• After hitting the market it was not exactly
a dream run.
• 2006 it had a market share of 16.7% and
stood at the 2nd position.
• 2nd generation Indica's are built on X1
platform.
• 1st generation always used to cannibalise
the sales of the 2nd generation.

7. Need for the Turnaround Strategy
0
50
100
150
200
250
300
350
FY6 FY7 FY8 FY9 FY10 FY11 FY12 FY13 FY14 FY15 FY16
189
228
218
208
260
320
333
229
142 137
127
TATA MOTORS PV SALES (DOMESTIC)
*All no are in thousands

8.  Is TATA Motors PV business
turnaround real?
 If so how does it happened?
Objectives

9. OEM H1FY’21 H1FY'20 Market Share
FY21
Market Share
FY20
Maruti Suzuki 423,689 663,522 49.9% 47.7%
Hyundai 162,525 244,434 17.8% 17.8%
Tata Motors 70,081 68,286 8.0% 5.3%
M&M 51,475 104,066 5.7% 7.1%
Kia Motors 46,967 13,789 4.1% 1.7%
Top 5 carmaker sales in H1FY21 Vs H1FY20
 Tata Motors is bullish about the months ahead and increased its production
to 25000 units per month.
 Average discounts on Tata cars came down from INR 24,000 to INR 9,000.
 Average weighted price gone up by INR 6,000.

10. Building strong product portfolio in high volume segments
2020 2021 Segment Model from
TML
Market share
Contribution
Competitors
1 1 Compact Hatchback Tiago 28.60% Wagon R, Kwid, Celerio, Santro,
Swift
5 2 Compact SUV Nexon 28.30% Venue, Sonet, Brezza, XUV 300,
Eco Sport
4 3 Premium Hatchback Altroz 28.07% i20, Baleno, Polo, Glanza
6 4 Mid-size SUV Harrier 8.2% Creta, Seltos, Hector
3 7 Compact SEDAN Tiagor 6.60% Dzire, Aura, Amaze, Rapid

11. Attention to product life cycle management
 Tata Hexa which was launched in Jan 2017 was discontinued in Feb 2020.
 In just 3 years, about 9 old cars were discontinued.
Product focussed branding strategy
 Making product as the hero not the brand.
 People are buying Nexon, not Tata Nexon.
 Even in IPL, it is Altroz every where, not Tata Altroz.

12. w
o
s
T
• Presence in all the segments
• 5Star Rated Safety Tags
• Strong distribution network
• OMEGARC, ALFA Platforms
• Capable of meeting demand
• Tag of Affordable Taxi
Cars
• Smaller portfolio
• Strong computation from
newly entering brands
• Uncertainty in the
government policies
• Taxi sharing business
• Synergistic relation with
Group Companies
• JLR (Platform Sharing)
• Vocal for Local
• Increase in fuel price
S
W
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A
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13. Relative Market Share
High Low
High
Low
Market
Growth
Rate
B
C
G
M
A
T
R
I
X

14. Case Solution
• Tata Motors is the largest Indian automobile company in terms of revenue but if we look at the Passenger
Vehicle segment alone it is not the same.
• The main objective of Turnaround 2.0 strategy is to make Tata Motors no 3 player in the domestic
passenger segment, and then get back to its double-digit market share.
• Even though Tata Motors haven’t reached to the double-digit Market share yet, but it is able to get on to
the 3rd position in PV segment.
• This has been achieved because of its 3rd generation impact design models which are very well known
for its safety rating.
• And also, its diverse portfolio also played an important role, because Tata maintained at least one model
in all the segments which are in high demand.
• Tata Motors also started “Atmanirbharta by Tata Motors” campaign digitally highlighting the need of
localisation, this also played crucial role in turning customers to choose Tata Motors over others.

15. T
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#safetyfirst