Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's sixteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors consolidated revenues of Rs1,88,818 crore (USD 34.7 billion) in 2012-13. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles. The present chairman is Mr Cyrus Mistry

1945 - Tata Engineering and Locomotive Co Ltd (TELCO) set up as a locomotive maker at the end of World War Two

2002 - TELCO renamed Tata Motors Ltd

2005 - Buys 21 percent stake in Spanish bus maker Hispano Carrocera SA, launches mini-truck Ace in India

STRENGTH  Tata motors is a market leader in Automobile Industry with high market share.  Tata Motors Company have huge employee base.  Tata motors produce low price car with low fuel consumption.  Tata motors is the reputed brand in Indian Industry.  Tata Motors Limited is India’s largest automobile company.  Tata Motors has been aggressively acquiring foreign brands to increase its global presence.

Ownership of heritage of British motor brands like Land Rover and Jaguar.  Tata’s management is strengthened by the collective experience of its partners and acquired

companies – this includes general management, marketing, sales and operations.  Managerial Expertise – Experience of CEO, CMO & CFO.  Successful New Products launched in last 5 years.  Strong financial condition.  The research and development team of TATA motors is very strong.

WEAKNESS  Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got a

foothold in the luxury car segment in its domestic, Indian market.  Return on Investment on TATA motors shares in low.   Most of the automobiles Tata manufactures are based on older platforms.  Missing some key skills/competencies.  Low level of stocks in times of peak sales.  Poor Product Design.  No clear Strategic Direction.  Weak marketing skills.

OPPORTUNITIES

  TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power.

  Joint ventures in other countries allow TATA motors to easily enter into new market.  TATA motors should focus in developing luxury cards.  Acquisition of rivals.  The Nano could sell well in other geographic markets. Expanding markets such as China may find

the Nano just the answer.  Favourable Government Policy  Expanding to New Geographic Areas  Expanding Product Line.

THREATS  Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of

fronts. The price of steel and aluminum is increasing putting pressure on the costs of production.  Since the company has focused upon the commercial and small vehicle segments, it has left itself

open to competition from overseas companies for the emerging Indian luxury segments.  Slow Market Growth  Rising Raw Materials Cost.  Entry of Potential New Competitors.

Volkswagen

Headquartered in Pune, Maharashtra, the Volkswagen Group in India is represented by five brands: SKODA, Volkswagen, Audi, Porsche and Lamborghini. The Indian journey began with the launch of SKODA in 2001. Audi and Volkswagen entered in 2007, while Lamborghini and Porsche were introduced in 2012. Today, the Group upholds its mantle of superior engineering, with plants in Pune and Aurangabad working seamlessly to manufacture the world's most loved cars. Today, Volkswagen Group India has about 5,000 employees working at its various locations in India.

1930s

Factory opened in

Wolfsburg, Germany

1940s

Production of first Volkswagen

Company turned over to German government

1950s

VW begin building foreign plants

Launched “Beetle” in US market

Developed Microbus

1970s

Beetle discontinued in every country except Mexico

1980s

Begin car venture in China

Purchased SEAT

Formed Autolatin in Brazil

1990s

Built China’s largest auto plant

Launched Passat

Acquires Rolls-Royce and Bugatti

Launched New Beetle in US

Entry into India with launch of SKODA in 2001

Volkswagen brand launched the globally successful Passat in 2007.

Volkswagen launched Jetta in India in July 2008 catering mid-segment

SWOT Analysis

Strength

1. Wide range of cars which provides enough options to choose from

2. High brand presence and recall 3. One of the oldest car manufacturers, resulting into increased reach to masses4. Owner of Audi, Bentley, Bugatti, Lamborghini, Skoda which gives a wide and large customer base5. Has over 350,000 employees globally6. Volkswagen has manufacturing or assembly plants in Germany, Slovakia, China, India, Indonesia, Russia, Brazil, Argentina, Portugal, Spain, Poland, Bosnia and Herzegovina, and South Africa7. Volkswagen also has presence in hybrid cars and motorsports

Weakness

1. Intense competition from global  Car manufacturing companies

2. Limited presence in emerging markets where some other brands have taken over the market

Opportunity

1. Create long term relationships with non-German car manufacturers

2. Implement continuous innovations in cars to stand competition

3. To enter different markets by offering cars with features attractive for the targeted market4. Increasing purchasing power of people

Threats

1. Innovative features included by competitors

2. Increasing fuel costs3. Government regulations and policies to protect interest of local car manufacturers e.g. TATA in India

Y volkswgen is nt doing well

n a market dominated by the Japanese and Koreans, Volkswagen, Europe's largest car maker, needed an initial burst that could put it on the right track in India.

The glitzy launch of its maiden car, Passat, in 2007 and the high-voltage promotional campaign showed that the Wolfsburg-based company was determined to erase the history of failed attempts by European carmakers in the country until that time.

The next few years saw Volkswagen walk the talk it launched six models, including three fully imported ones such as the worlds most popular Peoples Car Beetle.

A locally produced hatchback Polo and sedan Vento saw huge demand. But that was till the last financial year.

The present looks remarkably different. With no new product launches since 2010, stiffer competition and the general slowdown in the industry, Volkswagen showed a 16 per cent decline in sales in the April 2012-January 2013 period (The industry recorded sales growth of seven per cent in that period). It slipped to the ninth position from eighth in the ranking of India's largest car makers.

Promotional schemes offering discounts to the tune of Rs 55,000-Rs 70,000 were offered on the Vento and Polo during the festival season, which is generally when consumer demand hits a peak.

Very little clarity on its proposed small car, targeted at the compact Marutis and Hyundais, planned for the country has impacted Volkswagen the most.

According to the original plan, Volkswagen was to launch a completely new model built to suit Indian needs in 2009-10 and build volumes.

But Volswagens mid-term plan didn't advance as planned as the proposed global partnership with Suzuki went awry.

Suddenly, the company's strategy seemed tentative: it appeared apprehensive of giving up its premium tag and entering the low-cost segment.

Meanwhile, despite mid-life refreshments done to the Polo and the Vento, sales continue to slide. According to SIAM data, Vento sales slumped 30 per cent to 19,621 units during the 10 month period ended January.

Average monthly sales of the Vento stood at 1,962 units, much below the segment leader Hyundai Verna which sells an average of 4,860 units per month.

Its iconic Beetle, priced at Rs 26.85 lakh or Rs 2.68 million (on-road, Mumbai), sold just one unit in 10 months this year as against 59 units sold in the same period last year. The company has refused to divulge details on plans of launching the new Beetle.

As Volkswagens headquarters in Germany gets anxious about the sales drop in one of the most promising markets (it has invested Rs 4,000 crore or Rs 40 billion in India so far), other brands are racing ahead concentrating on segments such as compact SUVs and compact sedans.

Volkswagen also created further confusion about its strategy by announcing recently that India is no longer a priority market for it and that introduction of new models and major investments will not happen until 2015.

Stating that the business case (for India) does not look positive, strategically important models like a new small car and investment for a new factory have been put on hold for the time being.

Also, Volkswagens multi-crore Phase II investment plans are kept on hold because the Maharashtra government changed its investment policy abruptly, much to the dislike of automakers.

A senior executive of Volkswagen had stated that it was not possible to produce the new small car Up! at the existing unit in Chakan.

Employees at Volkswagen India are using this period for streamlining operations and strengthening its front-end business like revisiting its dealers and distributors.

Dealers, who once enjoyed higher commission, have been forced to take a cut in their margins to increase discounts on products.

Arvind Saxena, managing director, says, Life was very easy for the first three years when we were growing at 140 per cent. But nobody can grow at that rate for ever.

A hard taskmaster, Saxena, who comes from Hyundai, believes it was also not possible for any company to maintain the same pace of launches for years on end.

We were late entrants in the market. Now we have to focus on a lot of things from the brand point of view to create awareness (and) to create a network, adds Saxena.

Though Volkswagen is looking a bit wobbly at present, it has done relatively much better than quite a few of its competitors in terms of brand exposure, network and reach etc.

For instance, Fiat, one of Europes earliest entrant into India, continues to struggle with a market share well below one per cent. French car giant Peugeot attempted a re-entry after quitting the country in early the 2000s, but it failed to do so.

General Motors, too, could not script a comeback for its strong European brand Opel after it was withdrawn and replaced by Chevrolet.

We need a phase where we need to consolidate so that we are able to go to the next step. Today the challenge is to do the fundamental quality check and processes, adds Saxena. That may not look sexy, but could be just what the doctor ordered.

INNOVATIVENESS OF TATA

. Indica in the late 90s.—More Car per carThis was the first indigenously designed passenger car in India and it was innovative in the sense that it provided more value for money in terms of internal space (comparable to the Ambassador which was the benchmark in the country for internal space), contemporary features (comparable to Maruti Zen) and all that at a very competitive price.

Volkswagen Group net profit plunges by over 80% in 2009PTI Mar 12, 2010, 08.24pm IST

WOLFSBURG (Germany): European auto giant Volkswagen Group today reported an over 80 per cent plunge in net profit for the year 2009 and said the prospect of the global auto industry remains grim this year also.

The group reported a net profit of 911 million euro during 2009 as against 4,688 million euro in the previous year, a huge slump of 80.57 per cent, Volkswagen said in a statement issued here from its global headquarters.

It also registered a fall of 69.84 per cent in its operating profit at 1.9 billion euro, as against 6.3 billion euro in 2008. The figure, however, excluded the operations of its Chinese joint ventures.

Volkswagen group, which recently acquired a 20 per cent stake in Japanese auto major Suzuki, the parent company of Maruti Suzuki India, said the climate in the global automotive industry is likely to remain harsh in 2010.

It said that the high volume of 2007 are unlikely to be achieved before 2012, although this year may see a "slight recovery in the global market."

The group's unit sales increased marginally to 6.3 million vehicles in 2009. However, excluding China, sales were down by 6.1 per cent.

Sales revenue for 2009 was down by 7.56 per cent at 113.8 billion euro.

The group made investments worth 5.8 billion euro in new production facilities in India, Russia and the USA last year.

Volkswagen India kills the Bug, no sign of the new model yetPosted on Oct 10 2013 - 4:32pm

Volkswagen India launched the iconic Beetle in India in 2009 to re-kindle the love affair that India has had with the Beetle in the past. With a sexy tagline ‘Curves are back’, Volkswagen wanted to garner as many eyeballs as possible so that they could sell their bread and butter products, the Polo and Vento.

Sadly, eyeballs were the only thing that the VW Beetle garnered in India. The Beetle only sold around 500 units and was pulled off the shelf. Of course, there were several factors for its discontinuation such as the high price, very limited marketing efforts and supply stoppage from the main plant.

However the biggest factor for its failure was that the car did not manage to establish an emotional connect with the audience.

The Beetle that is discontinued in India is a previous generation model. An all-new Beetle was presented to the world at the Auto Shanghai and the New York Auto Show in 2011. Volkswagen did bring this Beetle to the 2012 New Delhi Auto Expo but the automaker is pretty mum about its market introduction in India.

Did the Beetle achieve the task it was intended for, to not warrant a re-launch? To be honest, the Beetle was not a showroom-puller like the Duster was for Renault. The Beetle did not have any spillover effect on the Polo or the Vento or for that matter, brand Volkswagen.

As it stands today, Volkswagen India has shifted its entire focus towards the Vento and the Polo. In 2013 we have seen many variants and special edition models of the Polo and Vento launch, and if reports and sources are to go by, there are a few more variants lining up for 2014.