The International Strategy of Tata Motors

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Category

1. Background        

1.1 The development of automobile in India        

1.2 The development of automobile in worldwide        

1.3 Brief introduction to TATA Motors        

1.4 The development of TATA motors in domestic and global        

2. The international strategy of TATA Motors        

2.1 Why TATA Motors go abroad--- from the perspective of five forces        

2.1.1 Competitive rivalry        

2.1.2 Threat of new entrants        

2.1.3 Threat of substitutes        

2.1.4 Bargaining power of suppliers        

2.1.5 Bargaining power of customers        

2.2 SWOT analysis of TATA Motors        

2.2.1 Strengths        

2.2.2 Weakness        

2.2.3 Opportunities        

2.2.4 Threats        

2.3 The international way of TATA Motors        

2.3.1 Stage One: International strategy        

2.3.2 Stage Two: Multidomestic strategy        

2.3.3 Stage Three:Transnational strategy        

3. Potential challenges        

4.Suggestions for future        

Reference        

The international strategy of TATA motors

1.  Background

1.1 The development of automobile in India

The automotive industry in India is one of the largest in the world, the industry produced a total 23.96 million vehicles in FY 2015-2016, compared to last year, the growth rate is 8.68%, and it accounts for 7.1% of the GDP of India.^[1]

Here is the domestic market share of 2015-16 in India, it can be seen that two wheelers(80%) still accounts for the vast majority of India’s automobile market, followed by passenger vehicles(15%), but the commercial vehicles only accounts for 3%.

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(Data resource: )

In graph 2, the sales of automobile kept a steady growth in both domestic and global market.

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(Data resource: )

So it can be concluded that India’s automobile industry is leading a growth trend, serving domestic demand and increasing exports for exploring international market. But the automobile industry concentrates on producing two wheelers, which is low value-added, materials-consuming and low technology.

1.2 The development of automobile in worldwide

Charter 1 is ordered by the quantity of total. India ranks 6 on the table, with a high growth rate of 6.5%. And for the most of countries, they are experiencing an increasing trend.

Charter 1 2016 Q2 automobile production statistics around world (TOP 10)

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(Data resource: http://www.oica.net/category/production-statistics/)

From charter 2, it can be seen that Europe and Asia, OCEA NIA, and middle East have a high demand of automobile, while in Africa, sales fluctuated and decreased ever sine 2015. Although the market of America always leads the top role, it is experiencing a decreasing nowadays.

Charter 2 Total sales figures of automobile around world

(Data resource: http://www.oica.net/wp-content/uploads//total-sales-2016-Q2.pdf )

From the analysis above and other materials untouched, there are some characters about global automobile market. 21st century is a golden age for automobile, especially the increasing needs in China and India contribute a lot to the pace of growth. And leading vehicle producers are expanding its markets to the worldwide, for many countries, the globalization of automobile industry is a big issue. On the production side, regional integration has been a trend, automakers are deeply engaged in creating regional advantage.