Tata Motors

Global Business Management
Case Study
October 24, 2012

1. There are many features of the Indian market that made it an attractive domestic market for Tata Motors. India had good economic conditions in the year 2004. They had a growth rate of 8%, their gross domestic product (GDP) grew 4.3% in fiscal year 2003, and the GDP was expected to grow 11% in fiscal year 2007. According to Goldman Sachs, India will have the highest growth rate in GDP in comparison with other emerging economies until 2045-2050. It was also expected that in 2009, 60% of India’s population will be 25 years of age and less. Transportation needs grew to 13.5% in the year 2000-2001, from 2.8% in 1970-1971. Actually, transportation became the second
5. The international success strategies for Tata Motors were to consolidate position in the domestic market and expand international footprint through development of new products by leveraging in house capabilities, acquisitions, and strategic collaborations to gain complementary capabilities. Tata Motors was able to achieve these goals by developing a two pronged strategy. First, they expanded their capacity. In 2004 the utilization was around 75% for commercial vehicles and utility vehicles and 100% for the Indica plant, which made passenger cars. That same year, commercial vehicle capacity was expanded and new products were developed. Tata Motors goal was for expansion into new markets and product categories, both domestically and internationally. By 2006-2007, new platforms were started up for global trucks, a new utility vehicle, and compact cars. For the people’s car, there were new engine offerings and commensurate expansion in R&D capability. 6. I agree with Kanth’s viewpoint. I believe that success internationally will be through focused positioning and marketing in selected countries. For example, Tata Motors gained a position in the domestic market by partnering with some world-class players. Tata