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Brand Evaluation Of Tata Motors. Essay

1384 words - 6 pages

Company Background:Profile.Tata Motors is India's foremost, and only fully integrated, automobile manufacturer. Established in 1945 as the Tata Engineering and Locomotive Company to manufacture locomotives and other engineering products, the company is today among the world's top 10 producers of commercial vehicles.Tata Motors, previously known as Tata Engineering, is one of the biggest and most prominent companies in the Tata Group, with an annual turnover of US$ 1.8 billion in 2001-02.Area of BusinessTata Motors' product range covers passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles for goods and passenger transport. Seven out of 10 medium and heavy commercial vehicles in India bear the trusted Tata mark.The Indica V2 -- India's first indigenously designed and manufactured passenger car -- has been a phenomenal success, standing testimony to the company's research and engineering expertise. Tata Motors followed this up with the launch in 2002 of the Indigo, a sedan.The company enjoys a significant demand in export markets such as Europe, Australia, South East Asia, the Middle East and Africa. Tata Motors vehicles currently sell in over 70 countries.The Passenger Car Industry:The global car industry is estimated to be valued at around 38mn cars and US$700bn in value. The highly penetrated markets of US, Europe and Japan have witnessed a slowdown in demand growth during the last three years due to economic slowdown. Most auto majors globally have therefore set their sight on the low penetrated markets in developing economies.Global Penetration statisticsCountry Cars per thousand populationUSA 800Japan 700Bangladesh 14Sri Lanka 12India 7As it's clear from the above pie chart, Tata Indica (shown as Telco) in the figure has a share of 11.5%.The Indian Passenger Car Industry in the Financial Year 2002-03:As we know Tata Indica falls in the Segment B and segment B has a total sales of 357292 and has a market share of 53%, higher than any other segment. Telco has a installed capacity of 160000 and utilization of 58%.Strength and Weaknesses of the Major Players in Segment B1. Hyundai - Santro.Hyundai's performance in India has not been entirely blemishless. The company did not bring its latest engine technology to India and unlike rival Daewoo, could offer its Euro II2 compliant versions only at a higher price. In the process, the company's image took a beating. Hyundai also miscalculated the demand for the Santro. When demand peaked, customers had to wait for three months. Hyundai has now embarked on a capacity expansion project at its plant in Sriperambadur in Madras. The investment of around $400 million will take the capacity from 120,000 cars to 200,000 by December 2001.Strengths- More headroom- excellent advertising campaign- innovative design- competitively priced.Weakness- Initially perceived as an unconventional design.- General substandard perception of Korean products.- Limited dealer network.MUL.In the...

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