History of Tata Motors

BIG
1
HISTORY OF TATA MOTORS
• 1945 – Tata Engineering and & Locomotive

Company Ltd. (TELCO) was established
• 1954 – Start Manufacturing commercial vehicles
• 1961 – Exporting Trucks
• 1966 – Machine tools division in Pune
• 1983 – Start Producing Heavy Commercial
vehicle
• 1986 – Light Commercial Vehicle, TATA 407
Contd…
• 1994 – Launch Multi-utility vehicle,
TATA Sumo
• 1998 – India’s first Utility Vehicle,
TATA Safari
• 1998 – Launch of Indica
• 2005 --- Launch of TATA ACE
• 2008 – Launch of TATA NANO
From concept to design engg to
mfg and marketing, the Ace
has been a story of innovation-
on process, culture and
customer orientation.
4
Story of TATA Ace
• There was loss of Rs.500cr, in 2000
• Lord Kumar Bhattacharya (Warwick mfg Group)”I don’t see anybody
with black hair in your team.”
• Girish Wagh was an eye-opener since he was from mfg and design
• In December 2000 Girish Wagh was called by Ravi Kant, Managing
Director, Tata Motors, to create a new line that went beyond Tata's
current truck offering.
•
• A vehicle that was cheap enough to take on the three wheel cargo
rickshaws in the country. Based on this brief Wagh decided to approach
users of current three wheel cargo rickshaws and get their feed back on a
future four wheel cargo vehicle
• He figured out – the cost incurred to transport one tone over one
kilometer distance- could be the selling point.
• The persons who were interviewed all wanted a cheap vehicle that could
take a certain amount of produce or products from village to market.
• This meant that besides the normal use of carrying cargo around, the
future customer also expected a certain amount of prestige in owning and
running a four wheeler cargo vehicle.
• Then at last, styling and looks emerged as a major
order winner for people who bought the
Ace .
• Tata Motors launched the Ace truck in May 2005 for
just above Rs 2 lakhs. The new vehicle was a big hit
selling 100,000 in just 20 months.
Innovation
• Due to pradhan mantri gramin sadak yojana , Road

connectivity is expected to greatly improve in rural areas
• It is envisaged that higher tonnages vehicles will be not
allowed in cities
• In both the cases, all last mile distributing will be covered by
large vehicles
• The exciting production in this category is cumbersome ,
coupled with safety, pollution & comfort etc.. issues
• Challenge
• Challenge was create 4 wheeler at the cost of 3
wheeler that would create paradigm shift in
movement of goods
• The vehicle should be useful in urban as well
as rural area
• Develop a 4 wheeler to cater a gap in the
market for goods haulages vehicles in sub
1 tone
• ACE comes at a nominal premium of 3
wheeler has like car features & runs on
diesel.
INNOVATION
• Anticipation of the demand

• Identify the gap
Uniqueness
• Create a completely new segment ;segment grew by 9%
• ACE is the only environment friendly vehicle in this category
• Complies with the 4 wheeler safety norms
• Versatility: both in rural & urban
• Comfort : Protected cabin & larger wheel
• Safety :Only its classes to have crash test
• Impact
• Reduce pollutants as compared to 3 wheeler from 21 % to 40%
• The product has created a new segment which contributed 15 %
companies volume in 1st year
INNOVATION
o Safety (Semi-
monologue frame)
o Versatility
o Comfort
o Environment friendly
o Fuel efficiency
o Low maintenance
CAR LIKE FEATURE BETTER LOOK
SMALL IS BIG MORE SPACE

Key Strategies
Operational
•
Marketing
•
16
Operational
Indigenous product development
• In operation, cost under control was the most imp factor for the project to succeed.
• Engine problem – slicing the Indica engine by half
• No. of vendors reduced - 200 to 125
• Vendors were willing to set up plant in the same premises – key factor
• Currently this truck is only offered in a single colour, white, to save time in the paint shop.
Tata is building a new factory that will be able to turn out 250,000 a year starting this month
• It helped the product to pitched at the Rs. 2.25lack-Rs. 2.40 lack.
E-Sourcing
• Online sourcing - the another
innovation was brought in
Value engineering
• It was performance measures
rather than product
specification.
Features of Tata ACE
Versatility Saving Performance
Comfort 19
Style Safety
• TATA ACE Bharat Stage II and III
ENGINE
• Model : TATA 275 IDI NA BS-II (and BS-III)
• Type : 4-stroke, naturally aspirated, indirect injection diesel engine Max. Output :
16 hp @ 3200 rpm Max. Torque : 3.8 mkg @ 2000 rpm Displacement : 700 cc
Special Items : catalytic converter (only in BS III)
CLUTCH : Single plate dry friction diaphragm type
GEAR BOX : GBS 65-4/5.27 Type : Synchromesh (4 forward gears), Sliding mesh
(reverse gear)
STEERING : Mechanical, variable ratio (20.5 to 24.5), 380 mm dia
BRAKES Type : Dual circuit hydraulically activated Front : Disc brakes Rear :
Drum brakes (200 mm dia x 30 mm) Parking Brake : Cable operated mechanical
linkages acting on rear wheels
• TATA ACE Bharat Stage II and III
• SUSPENSION Type : Parabolic leaf spring suspension at both front and rear
Shock absorber : Hydraulic double-acting telescopic type both at front and rear
• WHEELS AND TYRES Tyres 145R12 LT 8PR RADIAL FUEL TANK
Capacity 30 liters
• PERFORMANCE Max. Speed : 64 kmph Max. Gradeability : 16% Grade
restartability : 15%
• DIMENSIONS All in mm
• Overall Length (A) : 3800 Width : 1500 Wheel base (D) : 2100 Overall height © :
1820 Track Front (E) : 1300 Track Rear (F) : 1320 Min Turning Circle Dia : 8.6 m
• WEIGHTS Max. GVW : 1550 kg Kerb weight : 805 kg Seating capacity : Driver
+1
Marketing
• Key factor was that marketing was brought in early on during the product development process
• Marketing process was more product centric than customer.
Dealership and Service
• Sales and service was close to customer
• TATA allowed them to rent out premises for Ace
• For after sale service – created Suvidha, brand for Ace only- giving training geared the service
• Ace available 275 outlets
• Sales increased by 50% , about 30,000 units sold out in 8 months, which was projected for year
CRM and DMS
• CRM and DMS brought in 2003- cost Rs.35cr to date
• About 1000 dealer are connected through its online integrated
CRM and DMS
• With this coupling TATA monitoring of the service to more
than 25000 customer.
• It makes the largest implementation of a CRM program in the
automobile industry anywhere in the world- sources said
• It provides service, spare and replacement service to the
customer
Promotion
• Sale was risen near Pune region, so promotional

activities was set up near Pune with full force
• Due to coupled CRM and DMS, advertising cost
reduced to some extend
25
26
IMPACT ON TATA MOTORS & OTHER LCV
• Increase sales by 13.1%

• Market share increased by
13.6% points
• Contributed 15 % companies
volume in 1st year
• CV industry growth increased
by 10%
COMPETITOR’S STRATEGY
Mahindra & Mahindra

o Maxx Maxi Truck, (payload of 900 kg)
o Alfa and Champion
Force Motors Ltd

o M4
o Kargo King
Piaggio Vehicles India Pvt. Ltd

o Piaggio Quargo
o Ape Truck
Hyundai motor India

o Porter
Piaggio - quadricycle
• Create a new segment
• Capacity between 1 to 1.5
tonne
• Cargo and passenger variant
• Similar to Light commercial
vehicle
• Priced within Rs.200000
29
Force motors
• Large Cargo Holding with three
side
• Opening
• Also available with power
steering
• Low maintenance cost
• Heavy duty chassis and axles
• Wider wheel track and optimum
ground
Clearance
• Drivers cabin
New Strategies For
Counter attack
More Concentration on
Fuel Efficiency and Fuel
Improve Product features
Develop variants on the
same platform
Increased use of
CAD/CAE/CAM
Provide cheaper loans on
Tata Products
COMMENSURATE CHANGES
Launch Magic and the Winger, (Penguin)

CHANGES
o Introduce ‘stop-start’ technology
o Fuel efficiency increased by 6-10%
o Sold at a premium of Rs 10,000
o Extended as passenger vehicles and trucks.
o Equipped with 5-speed transmission
o Larger (13-inch) tyre to acquire higher speeds
Sales reaches to 10,000 units

per month
Why this happened?
• Mr. Wagh said “we were an arrogant organization” first change was
humility.
• Values and purpose: The Tata group’s principal purpose is to improve the
quality of life of the communities it serves. The values and ideals that
define the way the group functions help it do that.
• Tata Code of Conduct: This comprehensive document serves as the
ethical road map for Tata employees and companies, and provides the
guidelines by which the group conducts its businesses.
• Business Excellence: The quality movement in the Tata group is driven by
the Tata Business Excellence Model and Tata Quality Management
Services. The JRD QV Award is given to Tata companies reaching new
heights of business excellence.
Thank you !

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History of Tata Motors

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BIG

• 1945 – Tata Engineering and & Locomotive

order winner for people who bought the

• Due to pradhan mantri gramin sadak yojana , Road

• Anticipation of the demand

SMALL IS BIG MORE SPACE

Versatility Saving Performance

• Sale was risen near Pune region, so promotional

• Increase sales by 13.1%

Mahindra & Mahindra

Force Motors Ltd

Piaggio Vehicles India Pvt. Ltd

Hyundai motor India

Launch Magic and the Winger, (Penguin)

o Fuel efficiency increased by 6-10%

o Sold at a premium of Rs 10,000

o Extended as passenger vehicles and trucks.

o Equipped with 5-speed transmission

o Larger (13-inch) tyre to acquire higher speeds

Sales reaches to 10,000 units

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