Regional College of Management

and Entrepreneurship
TOPIC :TATA MOTORS

NAMES : NITHISH.l, ZEENAT ,VINAYaka m.y ,PAWAN

PGDM : 2023-2025
 Overview of Tata Motors
Tata Motors is a leading automotive manufacturer in India, part of the Tata Group. The company has a
significant presence in the electric vehicle (EV) market, holding a substantial 67% market share in the
electric four-wheeler segment as of the first half of FY25. Tata Motors offers popular EV models like
the Nexon EV, Tigor EV, and Tiago EV, and plans to launch 10 new EV models by 2025
The EV segment in India is rapidly growing, with EVs expected to account for 30% of total vehicle
sales by 2030. The Indian government is actively promoting EV adoption through various initiatives,
including subsidies, tax benefits, and infrastructure development
Future of EVs in India
India's EV market is on a rapid growth trajectory. The government has set ambitious targets to
achieve a significant EV mix by 20301. Key initiatives include the National Electric Mobility
Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric
Vehicles (FAME) scheme. The finance minister has also announced reductions in customs duty and
taxes to boost domestic production of lithium-ion batteries1. Private players are entering the EV
market, setting the stage for further adoption.

Changes in EV Mobility
The shift to EVs is expected to disrupt the automotive landscape. By 2030, electric two-wheelers
(E2Ws) and three-wheelers (E3Ws) are projected to account for 50% and 70% of new vehicle
sales, respectively2. Internal combustion engines (ICE) will still dominate passenger vehicles (PVs)
and heavy commercial vehicles (HCVs), but EVs are expected to make up 10-15% of new PV sales
and 5-10% of new HCV sales.
The future of mobility in India
1. Electrification and EV Adoption
India is rapidly moving towards electric mobility, with ambitious targets to achieve a substantial EV mix by 2030. The government's initiatives,
such as the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
(FAME) scheme, are pivotal in this shift2. The adoption of electric two-wheelers (E2Ws) and three-wheelers (E3Ws) is expected to reach 50%
and 70% of new vehicle sales, respectively, by 2030.
2. Advanced Air Mobility (AAM)
Advanced Air Mobility (AAM) solutions, such as electric vertical take-off and landing (eVTOL) aircraft, are being explored to decongest roads
and improve accessibility. These solutions can provide on-demand passenger and cargo transport within urban and regional areas, offering a new
dimension to India's transportation landscape3.
3. Digital Public Infrastructure (DPI)
The integration of digital public infrastructure (DPI) and interoperability among players in the EV ecosystem is crucial for building a robust
infrastructure. This includes smart mobility solutions and electrified buses, which are essential for a seamless transition to electric mobility2.
4. Sustainable Financing Ecosystem
Developing a sustainable EV financing ecosystem is vital for scaling EV adoption. Partnerships with manufacturers, fleet operators, dealerships,
and other stakeholders are necessary to ensure a smooth transition to electric mobility2.
5. Battery Swapping
Battery swapping is emerging as a transformative solution to address issues of cost, range anxiety, and charging time. With over 650 battery-
swapping stations already deployed across the country, this solution is particularly beneficial in urban areas where space constraints limit
traditional charging infrastructure2.
6. Government Support and Policy
Government support through incentives, subsidies, and favorable policies is a driving force behind the shift to
electric mobility. The reduction in customs duty and taxes on lithium-ion batteries is an example of such support2.
7. Technological Advancements
Continuous advancements in battery technology, charging infrastructure, and vehicle performance are essential for
overcoming range anxiety and improving the overall appeal of EVs.
8. Economic Impact
The automobile industry contributes significantly to India's GDP, with the sector valued at USD 122.53 billion (Rs.
10.22 lakh crore) as of FY24. The passenger car market alone is expected to reach USD 54.84 billion by 20271.
9. Environmental Benefits
The shift to electric mobility is expected to reduce emissions and oil dependence, contributing to a cleaner and
more sustainable environment.
10. Future Trends
The future of mobility in India will be shaped by trends such as rapid urbanization, rising incomes, and the growing
middle class. These factors will drive the demand for mobility solutions that are efficient, sustainable, and
accessible.
 Current GDP of the Automobile Industry
As of FY24, India's automobile industry is valued at USD 122.53 billion (Rs. 10.22 lakh
crore). The sector contributes 7.1% to India's GDP and employs about 19 million
people directly and indirectly.
 Share of the Car Industry
In FY23, the passenger car market in India was valued at USD 32.70 billion, and it is
expected to reach USD 54.84 billion by 2027. Maruti Suzuki leads the market with a
share of over 46%5. The top four players hold approximately 80% of the market share.
For more detailed information, you can refer the References page.
 Situation Analysis Using Strategic Management Tools

1.PEST Analysis (Political, Economic, Social, Technological):

PEST analysis is a strategic management tool used to analyze and monitor the macro-
environmental (external marketing environment) factors that may have a profound impact
on an organization. It examines the Political, Economic, Social, Technological, factors in
the external environment.
 Political: Government policies and incentives for EV adoption.
 Economic: Rising fuel prices and cost of ownership.
 Social: Growing environmental awareness and demand for sustainable transport.
 Technological: Advancements in battery technology and charging infrastructure.
By conducting a thorough PESTLE analysis, businesses can gain a deeper understanding of
the external environment and make informed decisions to achieve sustainable growth and
success.

.
2.Porter's Five Forces
Porter's Five Forces is a strategic management framework that helps businesses analyze the
competitive intensity and attractiveness of an industry.
By understanding these forces, companies can identify opportunities, threats, and potential areas for
strategic intervention .

 Competitive Rivalry: High competition from other EV manufacturers.

 Threat of New Entrants: Low barriers to entry for new players.
 Bargaining Power of Suppliers: Dependence on battery suppliers.
 Bargaining Power of Buyers: Increasing demand for affordable EVs.
By analyzing these five forces, businesses can develop effective strategies to improve
their competitive position, increase profitability, and ensure long-term sustainability.
3.The Boston Consulting Group (BCG) Matrix

The Boston Consulting Group (BCG) Matrix, also known as the Growth-Share
Matrix, is a strategic planning tool used to analyze a company's product portfolio.
It helps businesses allocate resources effectively by classifying products into four
categories based on their market growth rate and relative market share
 Stars: Nexon EV, Tigor EV (high market growth, high market share).
 Cash Cows: Tiago EV (low market growth, high market share).
 Question Marks: Upcoming EV models (high market growth, low market
share).
 Dogs: Older models (low market growth, low market share).
By using the BCG Matrix, companies can make informed decisions about their
product portfolio, ensuring long-term growth and profitability.
 4.The Ansoff Matrix
The Ansoff Matrix, also known as the Product/Market Expansion Grid, is a strategic planning
tool used to help businesses identify growth opportunities.
It categorizes strategies into four quadrants based on existing or new products and markets
 Market Penetration: Increasing market share in existing markets.
 Market Development: Expanding into new geographical areas.
 Product Development: Launching new EV models.
 Diversification: Entering new segments or industries

The Ansoff Matrix is a valuable tool for businesses because it helps them:
Identify growth opportunities, Assess risk ,Make informed decisions, Develop a
comprehensive growth strategy
5.Value Chain Analysis:
Value chain analysis is a strategic management tool that helps businesses understand the
activities involved in creating and delivering a product or service.
It breaks down a business into its primary and secondary activities to identify areas for
improvement, cost reduction, and value enhancement

 Inbound Logistics: Efficient supply chain management.

 Operations: High-quality manufacturing processes.
 Outbound Logistics: Effective distribution network.
 Marketing & Sales: Strong brand presence and marketing strategies.
 Service: Comprehensive after-sales service and support.
Value Chain Analysis helps Map the Value Chain, Analyze Each Activity ,Identify
Interrelationships, Identify Opportunities ,Develop Improvement Strategies
6.VRIO Framework
The VRIO framework is a strategic management tool used to evaluate a firm's internal
resources and capabilities to determine their potential for creating a sustainable
competitive advantage. It stands for :
 Value: Unique EV models and technology.
 Rarity: Strong market position and brand reputation.
 Imitability: Advanced technology and innovation.
 Organization: Efficient production and distribution capabilities.

VRIO Framework help us to Identify Resources and Capabilities , Assess Value ,

Evaluate Rarity ,Analyze Imitability ,Consider Organization
7.Porter's Generic Strategies:
Michael Porter's generic strategies provide a framework for businesses to achieve a
sustainable competitive advantage.
These strategies are based on two key dimensions

 Cost Leadership: Offering affordable EVs.

 Differentiation: Providing unique features and technology.
 Focus: Targeting specific market segments

Porter's Generic Strategies helps in Competitive Advantage ,Strategic Decision-Making,

Resource Allocation, Performance Improvement
8.McKinsey 7S Framework for Tata Motors EV
The McKinsey 7S Framework is a powerful tool for analyzing and improving an organization's performance. It
focuses on seven interconnected elements that must be aligned for optimal performance. Let's apply this
framework to Tata Motors' EV initiative.
 Structure:
Current: Tata Motors has a hierarchical organizational structure with clear divisions for its various product
lines, including EVs.
Impact: This structure enables focused strategies for each segment, fostering innovation in the EV sector.
 Strategy:
Current: Tata Motors’ strategy focuses on expanding its EV portfolio, improving battery technology, and
enhancing charging infrastructure.
Impact: A well-defined strategy aligns with market demand and government initiatives, ensuring growth
and competitiveness.
 Systems:
Current: Robust manufacturing processes, supply chain management, and customer service systems.
Impact: Efficient systems ensure high-quality production, timely delivery, and excellent customer support.
 Style:
•Customer-Centric Culture: A strong customer focus, prioritizing customer needs and satisfaction.
•Innovation-Driven Culture: Encouraging a culture of innovation and experimentation.
•Ethical and Sustainable Business Practices: Adhering to high ethical standards and promoting sustainability.

 Staff:
•Skilled Workforce: Hiring and developing skilled professionals in EV technology, engineering, and design.
•Talent Development: Investing in employee training and development to build a future-ready workforce.
•Diverse and Inclusive Workforce: Fostering a diverse and inclusive work environment to drive innovation.

 Skills:
•Technical Expertise: Strong technical expertise in battery technology, electric motors, and charging
infrastructure.
•Digital Skills: Proficiency in digital tools and technologies for data analysis, automation, and remote
operations.
•Sustainability Skills: Knowledge and skills in sustainable practices, circular economy, and environmental
impact assessment.

 Shared Values:
•Sustainability: Commitment to sustainable development and reducing carbon emissions.
•Innovation: A relentless pursuit of innovation and technological advancements.
•Customer Focus: A customer-centric approach, prioritizing customer satisfaction and loyalty.
9.Points of Difference
Points of Difference are the attributes or benefits that make a
product or brand stand out from its competitors.  Two-Wheeler Dominance:
Detail: The Indian EV market is dominated by two-
 Cost of Manufacturing: wheelers, which account for 85-90% of all EV units sold.
Detail: India has a cost-effective manufacturing base, This segment is crucial for Tata Motors' strategy, as it
keeping costs lower by 10-25% compared to regions like aligns with the country's transportation preferences.
Europe and Latin America. This allows Tata Motors to
offer competitive pricing.  Charging Infrastructure Development:
Detail: India aims to set up 1.32 million charging
 Government Incentives: stations by 2030, presenting a significant growth
opportunity. Tata Motors' focus on expanding charging
Detail: The Indian government has introduced several
infrastructure is a key differentiator.
schemes, such as FAME II, to incentivize EV adoption
and support manufacturing. These policies make EVs
more affordable and appealing to consumers.
10.Points of Parity
Points of Parity are the attributes or benefits that a product or brand shares with its competitors,
necessary for a category membership.
 Sustainability Focus:
Detail: Like other EV manufacturers, Tata Motors emphasizes sustainability and reducing carbon
emissions, aligning with global trends towards eco-friendly transportation.
 Technology and Innovation:
Detail: Tata Motors invests heavily in R&D to advance battery technology and vehicle
performance, similar to competitors such as Tesla and BYD.
 Customer Support and After-Sales Service:
Detail: Comprehensive customer support and after-sales services are provided to ensure customer
satisfaction, akin to other leading EV brands.
 Government Regulations Compliance:
Detail: Tata Motors adheres to government regulations and standards for EVs, ensuring
compliance and benefiting from subsidies and incentives, much like other players in the industry.
SWOT Analysis for Tata Motors EV Sector
 Strengths
 Strong Market Share: Tata Motors holds a significant market share in the EV segment, making it a
dominant player in the Indian market.
Supported by Competitor Analysis: Highlights Tata Motors' strong position relative to competitors.
 Diverse EV Portfolio: Offering a range of EVs such as Nexon EV, Tigor EV, and Tiago EV caters to
various customer segments.
Supported by Product Development in Ansoff Matrix: Shows strategic focus on expanding product lines.
 Government Support: Benefiting from government incentives and policies that promote EV adoption.
Supported by PEST Analysis - Political: Emphasizes the role of supportive government policies.
 Advanced Technology: Continuous innovation and strong R&D capabilities ensure high-quality EV
products.
Supported by VRIO Framework - Value and Rarity: Illustrates Tata Motors' unique technological
capabilities.
 Weaknesses
 High Initial Costs: High production and investment costs in developing EV
technology.
Supported by Financial Ratios Analysis: Reflects the financial burden of R&D
and manufacturing.
 Limited Charging Infrastructure: The current infrastructure for EV charging is
still developing, which can hinder adoption.
Supported by Value Chain Analysis - Service: Points out the gaps in the support
network for EVs.
 Customer Range Anxiety: Concerns about the driving range of EVs among
potential customers.
Supported by PEST Analysis - Social: Indicates consumer apprehensions affecting
market penetration.
Opportunities
 Growing EV Market: The Indian EV market is expected to grow significantly, providing ample
opportunities for expansion.
Supported by Market Development in Ansoff Matrix: Focuses on capturing new and expanding markets.
 Government Incentives: Various government initiatives and subsidies to boost EV adoption.
Supported by PEST Analysis - Political: Outlines the financial and regulatory support available.
 Technological Advancements: Continuous improvements in battery technology and charging
infrastructure.
Supported by PEST Analysis - Technological: Highlights the potential for product and service
enhancement.
 Partnerships with Tech Firms: Collaborations with technology companies to enhance EV features and
performance.
Supported by Key Partnerships in Business Model Canvas: Shows strategic alliances for innovation.
Threats
 Intense Competition: Increasing competition from both domestic and international players in the EV market.
Supported by Porter’s Five Forces - Competitive Rivalry: Indicates the high level of industry rivalry.
 Regulatory Changes: Potential changes in government policies and regulations that could impact the EV
market.
Supported by Scenario Planning - Worst Case Scenario: Considers the impact of unfavourable regulatory
shifts.
 Economic Instability: Economic downturns affecting consumer purchasing power and overall market growth.
Supported by PEST Analysis - Economic: Reflects the broader economic risks affecting the industry.
 Dependence on Battery Suppliers: Relying heavily on external suppliers for battery components, which can
impact production costs and supply chain stability.
Supported by Porter’s Five Forces - Supplier Power: Highlights the risk of supplier dependency.

This SWOT analysis, grounded in insights from the 10 strategic management tools, provides a comprehensive view
of Tata Motors' strengths, weaknesses, opportunities, and threats in the EV sector. It highlights the company's
competitive advantages while also identifying areas that require strategic focus to mitigate risks and capitalize on
opportunities.
 Business Model Canvas
Customer Customer Revenue
Key Partners Key Activities Key Resources Value Propositions Channels Cost Structure
Relationships Segments Streams

- Manufacturing - Affordable and reliable - Personalized - Personal EV

- Battery suppliers - Manufacturing of EVs - Dealerships - Production costs - Sales of EVs
facilities EVs service buyers

- Charging
- Research & - Advanced technology - After-sales - Charging
infrastructure - R&D capabilities - Online platforms - Fleet operators - R&D expenses
Development (R&D) and connectivity support services
providers

- Maintenance
- Technology - Technology and - Comprehensive - Authorized - Government and - Marketing and
- Marketing and Sales - Loyalty programs and service
partners innovation charging solutions service centers public sector distribution costs
contracts

- Customer support
- Government - Development of - Sustainable and eco- - Community - Financing and
- Brand reputation - Company website - Urban commuters and service
agencies charging infrastructure friendly vehicles engagement leasing options
operations

- Financial - Customer support and - Supply chain - Cost savings in terms - Social media - E-commerce - Partnerships and - Subscription
- Rural areas
institutions service network of fuel and maintenance interactions platforms collaborations models
Key Elements Explained:
 Key Partners: Collaborations with battery suppliers, charging infrastructure providers, technology partners, government agencies, and
financial institutions ensure a robust support system for EV operations.
 Key Activities: Core activities include the manufacturing of EVs, R&D for continuous innovation, marketing and sales efforts, development
of charging infrastructure, and providing customer support and service.
 Key Resources: Essential resources include manufacturing facilities, R&D capabilities, technology and innovation, brand reputation, and a
strong supply chain network.
 Value Propositions: Tata Motors offers affordable and reliable EVs, advanced technology and connectivity, comprehensive charging
solutions, and sustainable, eco-friendly vehicles that provide cost savings in terms of fuel and maintenance.
 Customer Relationships: Building strong customer relationships through personalized service, after-sales support, loyalty programs, and
community engagement is crucial for customer satisfaction and retention.
 Channels: Distribution channels include dealerships, online platforms, authorized service centers, company websites, social media
interactions, and e-commerce platforms.
 Customer Segments: Target customer segments include personal EV buyers, fleet operators, government and public sector entities, urban
commuters, and rural areas.
 Cost Structure: Major cost components include production costs, R&D expenses, marketing and distribution costs, customer support and
service operations, and partnerships and collaborations.
 Revenue Streams: Revenue is generated through the sales of EVs, charging services, maintenance and service contracts, financing and
leasing options, and subscription models.
Why EV is Booming in India?
Environmental Concerns: Increasing awareness about pollution and climate change.
Government Initiatives: Policies and incentives like FAME II, GST benefits.
Rising Fuel Prices: High cost of petrol and diesel.
Technological Advancements: Improved battery technology and charging infrastructure.
Consumer Demand: Growing preference for sustainable and cost-effective transport.

Government Initiatives to Boost Evs-

FAME II Scheme: Financial incentives for EV buyers and manufacturers.
GST Reduction: Lower GST rates on EVs to make them more affordable.
Charging Infrastructure: Development of public and home charging stations.
Local Manufacturing: Encouragement of domestic production to reduce import dependency.
Policy Support: Regulations and standards to promote EV adoption.
Conclusion on Tata Motors EV Sector Report
Tata Motors is well-positioned to lead the electric vehicle (EV) market in India. The company's strong market presence, diverse EV
portfolio, and advanced technology provide it with a competitive edge. Government support through various incentives and policies
further strengthens Tata Motors' position in the EV sector.
 Key Strengths:
Significant market share in the EV segment.
Diverse and innovative EV product lineup.
Continuous R&D and technological advancements.
Strong brand reputation and extensive dealership network.
 Notable Opportunities:
Rapidly growing EV market in India, with substantial projected growth.
Various government initiatives and subsidies that encourage EV adoption.
Technological advancements in battery and charging solutions.
Potential partnerships with technology firms to enhance product offerings.
 Significant Threats:
Intense competition from both domestic and international players.
Potential regulatory changes that could impact the market dynamics .
Economic instability affecting consumer purchasing power.
 Future Outlook
The future of EVs in India appears promising, with increasing consumer demand driven by environmental
concerns, rising fuel prices, and favourable government policies. Tata Motors is set to capitalize on these
trends with its robust strategy and continuous innovation. The company's focus on expanding its EV
portfolio and improving charging infrastructure will be critical in maintaining its market leadership.
 Government Support
Government initiatives, such as the FAME II scheme and reductions in GST rates, play a vital role in
promoting EV adoption. Investment in charging infrastructure and support for local manufacturing are
essential for sustaining the growth of the EV market.
 Final Thoughts
Tata Motors' commitment to sustainability, innovation, and customer satisfaction positions it as a
frontrunner in India's EV sector. The company's strategic use of advanced technologies and effective
utilization of government incentives will drive its success in the rapidly evolving EV market. Continuous
efforts to address weaknesses and mitigate threats will ensure Tata Motors remains a key player in the
future of electric mobility in India.
References

https://www.tatamotors.com/blog/powering-the-future-a-vision-for-the-ev-industry-growth-i
n-2024/
https://investors.tatamotors.com/financials/77-ar-html/pdf/Electric-Vehicles.pdf
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