Background of TataMotors Group Figure1: Logo of Tata Motors (Glass, Lewis & Co, 2016)Foundedin 1945, the Tata Motors is the India’s largest automobile company, and wasformerly known as TELCO (Tata Engineering and Locomotive Company).
It has grownrapidly since it was founded by Jamsetji Tata in 1868 (Tata Motors, 2018). The Tata Motors is the leader incommercial vehicles in each segment, among the top in passenger vehicles withwinning products in the compact, midsize car and utility vehicle segments. Itis also the world’s fifth largest truck manufacturer and fourth largest busmanufacturer (Tata Automobile Corporation South Africa, 2012). TheTata Motors vision is “As a High-Performance Organisation, we are, by FY 2019, amongthe top 3 in Global CV and Domestic PV, achieving sustainable financialperformance and delivering exciting innovations” and the mission is “Weinnovate, 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).In1948, the Tata Motors introduced the first steam roller in collaboration withMarshall Sons (UK), and in 1954 TELCO started to manufacture medium commercialvehicles in a joint venture with Daimler-Benz (Schuster & Holtbrugge, 2011).
With the foundationof the Research and Development Centre at Jamshedpur, Jharkhand, in 1959 andthe Engineering Research Centre at Pune, Maharashtra, in 1966 Tata Motors was thefirst Indian carmaker that was able to produce direct injection enginesindependently. Furthermore,the company also offered the commercial and passenger vehicles in otherscountries such as in Europe, Africa, the Middle East, South Asia, SouthAmerica, 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 incommercial vehicles in India and continuously increases its market share indifferent passenger car segments. In 2009-10, the Tata Motors domestic sales ofheavy vehicle and buses increased by 36.5% to a total of 155, 161.
The sales oflight commercial vehicles grew by 44.2 % to 218, 681, and sales of passengercars grew by 25.3% to 260, 020 (Schuster & Holtbrugge, 2011). After a few years, in2017, 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, 180units, which growth of 31% over last year (Tata Motors, 2018).
Below figure are the market shares ofTata Motors in different automotive segments.