Topic > Features of the automotive industry in…

The recent launch of Prima Trucks and Tata Ultra in the commercial segment is creating further headway for the company in terms of market share. With several launches in the passenger car segment such as Bolt (premium sedan) and Zest (compact sedan), the company plans to take on the likes of Hyundai, Maruti and Honda. The company operates in 175 markets with over 6,600 sales and service outlets5. They have manufacturing facilities in 7 countries: South Africa, Morocco, UK, Spain, India, Thailand and South Korea. Their research and development facilities are located in UK, Italy, Spain, India and South Korea. Profits and sales volumes declined in 2014 (figure 3)5. Further details on revenue distribution are provided in Exhibit 45. On the bright side, Tata Motors could capitalize on the conglomerate advantage being a part of the diversified Tata Group. WHICH STRATEGY TO FOLLOW? Tata Motors since its inception wanted to have a broad product line - passenger cars, commercial vehicles and also commercial vehicles. The Indian automobile market is one where there are many buyers and many sellers and hence in such a market no single player dominates. Tata Motors therefore had the opportunity to choose between two different strategies: cost leadership or product leadership. Tata Motors has adopted a cost leadership strategy by focusing on the right product at the right time. And where the technology to differentiate was lacking