A Strategic Study On How Tata Motors Entered Into The Manufacturing of Electric Vehicles

A Strategic study on how Tata motors entered into the
manufacturing of electric vehicles
Presented by : Group A10
•Gowtham P :19139
•Harshita H S:19141
•Kanna Naga Puzvika:19143
• Manasvi Deshpande:19148
•Monica P M:19150
Introduction
● $45 billion organisation, leading global
automobile manufacturing company.
● India's largest OEMs.
● 82797-employee strength, 1274072-
vehicles sold, >6600-sales and service
points.
● Products - cars and sports utility vehicle,
trucks and buses, defence sector, EV’s.
● Notable vehicles: TAta Nano, TAta Ace,
Tata 407, TAta prima, Tata harrier.
● 134 direct and indirect subsidiaries in
India and abroad.
● Innovation: demonstrated through their
path-breaking vehicles.
SWOT
STRENGTH WEAKNESS
● Industry experience ● Sharp decline in sales
● Diverse portfolio ● Brand image
● The alliances
● Good strategy
OPPORTUNITY THREAT
● Electric car market ● Increasing price of raw
● Rapid technology change materials
● Diesel uncertainty ● Competition in luxury segment
● Widening the car market ● Fuel price
Porter’s Five Forces Framework
Threats of New Entrants
• New entrants in Auto Manufacturers -innovation, reducing costs, and providing new value propositions to the
customers.
Tata Motors Limited can tackle the Threats of New Entrants
• By innovating new products and services
• By building economies of scale
• Building capacities and spending money on research and development
Bargaining Power of Suppliers
• Suppliers in dominant position can decrease the margins Tata Motors Limited can earn in the market.
Tata Motors Limited can tackle Bargaining Power of the Suppliers
• By building efficient supply chain
• By experimenting with product designs
• Developing dedicated suppliers
Bargaining Power of Buyers
• Buyers are often a demanding lot. Tata Motors Limited the higher the bargaining power of the customers and higher
their ability to seek increasing discounts and offers.
Tata Motors Limited can tackle the Bargaining Power of Buyers
• By building a large base of customers
• By rapidly innovating new products
Threats of Substitute Products or Services

• value proposition that is uniquely different from present offerings of the industry.
Tata Motors Limited can tackle the Threat of Substitute Products / Services
• By being service oriented
• By understanding the core need of the customer
Rivalry among the Existing Competitors

• Tata Motors Limited operates in a very competitive Auto Manufacturers
Tata Motors Limited can tackle
• By building a sustainable differentiation
• Collaborating with competitors
EV market in India:
• Indian automobile market stands at 5th place currently in
the global map
• The requirement of mobility in India is set to change
dramatically in the near future, to cater the need of growing
population.
• Government of India working towards developing a
mobility which is “Shared, electric and connected”.
• a vision for 100% electric vehicles by 2030.
Strategic Imperatives of Indian government on EV:

• To reduce carbon emission
• Fuel consumption
Tata Motors:
Tata Motors in collaboration with its subsidiary, the UK
based Tata Motors European Technical Centre (TMETC), are
looking to have a major play in the EVs market in India.
• It plans to address both the Passenger Vehicles and Electric
Buses market in India.
• launched their EV Passenger cars business by winning a
major tender of 10,000 cars launched by EESL.
• Commercial launch – Tigor EV later in the year compact
SUV – Nexon.
• It also unveiled India’s first intermediate commercial
electric truck.
Strategy of Tata motors on entering Ev segment:
•To win proactively in the EV segment

•To create a component supplier system and play price sensitive.
•To create a Ecosystem - TATA UniEVrse
•Integration approach to electrification of the Indian automobile industry, with the help of 6 Tata group
companies.
1. Tata power
2. Tata chemicals
3. Tata Auto components
4. Croma
5. Tata motors finance with Tata motors.
Opportunities in Indian Market
• World's 3rd largest car market by 2020 is now starting its EV journey – India could learn from the
world largest EV market.
• EV business throws up multiple new business / technology challenges such as
• EV charging
• Smart Charging
• Batteries
• Cloud based mobility etc
• which could be key areas where many start-ups can raise to solve the issues in the sub-continent.
• It wholly provides an opportunity not only for EV vehicles, But also for it related components.
Challenges faced by Tata Motors by entering into
this strategy
• To optimize energy efficiency and efficient power electronics integration without compromising
performance, cost-effectiveness, and safety.
• The phasing out of internal combustion engines (ICEs) and the electrification of their entire fleet pose
formidable challenges for the big existing car makers.
• Investment challenges to obtain the raw materials required for the manufacture of batteries are emerging
as a critical problem.
• Replacing traditional transport in India are widespread available charging stations and rising market
acceptance.
• In India, the awareness, experience, infrastructure, manufacturing cost and capital expenditure for
processing aluminium induction equipment is still not well explored and this will happen as demand
increases.
Findings and Recommendations
• putting together the whole ecosystem, with economies of sale

• It also helps to develop and work collaboratively to leverage one another’s capabilities to ensure a
seamless experience for consumers.
• TATA Motors finance has chalked out vehicle financing options
• They are working on a circular economy concept
• Shared mobility is critical to India’s future growth
Conclusions
● Strategic flexibility enables a organization to achieve a significant competitive advantage

● Successful adaptation is likely to generate superior performance through strategic flexibility,
exacerbating the rival imitation problem. It is then essential for decision-makers to have the capabilities
for strategic versatility in their various forms.
● Through analysis they need to concentrate on their marketing strategies to the point where people think
of the company it automatically comes up with the economical
● They commit to drive the future of mobility in a connected India by providing responsible and
sustainable mobility solutions
Thank you

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A Strategic study on how Tata motors entered into the

manufacturing of electric vehicles

Presented by : Group A10

•Kanna Naga Puzvika:19143

Threats of Substitute Products or Services

Rivalry among the Existing Competitors

Strategic Imperatives of Indian government on EV:

•To win proactively in the EV segment

• putting together the whole ecosystem, with economies of sale

● Strategic flexibility enables a organization to achieve a significant competitive advantage

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