TATA MOTORS The TATA Ace

Presented by Section 3 - Group 4

Tata Ace New Product by TATA Motors◦ Achieve Initial Success – Introduction Stage PLC

Doubled Production Capacity – 60,000 Units

Situational Analysis

BAU Most Likely Goal

“Best Commercial

Vehicle”

Strength Weakness Opportunity ThreatFirst Mover Advantage – New Business Line - INDIA’s 1st Mini TruckNEW TECHNOLOGY

81.5% parts Outsourced – 120 Vendors (High Dependency on External Factors)

ACE Launched only in 5 States in IndiaRest of India & Export Market Remains

Competition with Other 4 Wheeler Auto Companies – Maruti Omni – Major Threat

Only Vehicle in India with access to all kind of Roads + high turning radius

New Market Entry – Other States – Requires Local Mechanics Training Cost

Potential Existing 3W Cargo Market – 135.5K Units @ 14% Growth = 154.5K X Rs2.25L / unit = Rs 34.75 Bn

Foreign competitors – planning to come to India. Major Threat by Japanese & Korean Companies – Daihatsu & Hyundai

Trained Mechanics for Tata Ace Maintenance & Repair

Existing Plant @ Pune – 100% UtilizationHigher Cost for Expanding Capacity

Target 7% Performance Sensitive Customers – Asking for Premium

High dependency on external vendors leave possibility of becoming deserters

Successful “Small is Big Campaign”

Weak Distribution System Vs Competitors

Bharat Stage III Emission Standards - License

SWOT Analysis

Increasing Production Capacity Efficiently High Dependency on Government Policy on

Roads Construction High Dependency on External Vendors Entry into New Markets

◦ Demand Forecasting◦ Training – Local Technicians◦ Distribution and Supply Chain Management

Challenges

For Production Capacity Increase Pilot Project – North & East India

◦ Hire a assembly line & have a Cooperative Competition with Ancillaries of Bajaj, Maruti etc. (Launch RFI Plan with contracts of SLA meeting Quality Control Standards)

For New Market Entry Target Market – Travel – Intra City (56% of customer base) 80% of Customer Base – Balanced & ROI perspective Partnerships

◦ Maintenance & Repair– Local Auto Shop◦ Financing – Banking ◦ Micro Finance Firms & Driving School- CREATING JOBS

NEW GREEN INITIATIVES

Suggested Actions

International Markets – Not SuggestedFOCUS ON STRENTHENING BRAND & VARIANTS IN INDIA

Brand Extension – Existing Markets◦ Creating New Fad & Attributes

New Color – Blue, Yellow, Red Modification – lights, fender Luxury Features for 7% Premium Market

◦ Creating New Trends Tata Ace – Off Road Vehicle

Design – High Ground Clearance /New Suspension

Retained Earnings pull back for investment in plant for manufacturing own components – Critical to design

Suggested Actions

Prepared by

Abhishek Sharma FT13300Arjun Choudhry FT13312

Garv Sharma FT13325Irene Eltham FT13337

Mrityunjay Arya FT13350Ramachandran FT13362

Sonali Das FT13374Vijaykumar Bale FT13386

Thank You