Take a Look on Tata Motors’ Ambitions!

The car market has evidently changed for the recent years: the sizes of market and sales volumes across the world relatively decreased, while new players from ‘beyond’ has come to join the ‘veterans’. For example, TATA Motors, a famous Indian automobile-manufacturer, has demonstrated the solid abilities of strategic planning relying on the practice of global expansion since 1998. New deals and contracts – as well as great plans in the future - with outstanding automobile magnets such as Fiat and Ford for the recent decade have shown the practical efficiency and grandiose ambitions of TATA Motor’s bosses.

In fact, the strategy of TATA Motors can be formally named as impulsive and multiple penetration into global market. This offensive strategy, however, does not imply the direct ‘conquering’ of market share, but a gradual ‘attacks from the different flanks’ involving versatile directions of manufacturing and marketing. After several years of domination on the market of commercial cars, TATA Motors entered the market of passenger automobiles in 1998 introducing ‘TATA Indica’, which was the first automobile developed in India. Due to powerful and economic engine and aggressive marketing policy, the model became one of the best-selling cars in Indian auto history. Indeed, it was the first great success of TATA Motors, while the British version of model imported as “Rover CityRover”. After the success with ‘TATA Indica’ the company made most rational and well-timed decision – to increase own influence on the global market. Therefore, TATA Motors purchased the South-Korean ‘Daewoo Commercial Vehicle Company’ in 2004 (Menezes).

 The reasons behind such action were quite obvious: TATA Motors intended to reduce the dependence on domestic market ofIndia , and increase the number of offered products. The company’s expansion continued with intrusion into the market of buses where ‘Starbus’ and ‘Globus’ had been introduced. In 2005 TATA Motors acquired 21% of Hispano Carrocera’ shares and signed a contract with Brazilian car leader Macropolo S.A. In the same year, the production of TATA Ace – first Indian mini-truck – had begun: the model had a commercial success on both domestic and international markets. The export was directed towards the European, South-American and African countries. In 2007 TATA Motors signed a cooperative contract with Fiat and Iveco obtaining a legal permission for manufacturing of diesel engines. Evidently, the appetite of Indian company was unlimited, and 2008 resulted in new business achievements for TATA Motors. Thus, in cooperation with Luxemburg ‘Motor Development International’, the company developed first aircar called ‘TATA OneCAT’. Then, the company introduced one of the cheapest cars in the world – TATA Nano – which led to enormous increasing of demand. In the same year, Tata Motors signed a contract with Ford buying the rights for manufacturing of Jaguar Cars and Land Rover (Carty). Soon, the list of deals will be added with Daimler and MG Rover. Some months later, TATA Motors presented new marketing alternative within their large assortment: TATA Indica and TATA Ace equipped with electro-engines. Generally, it looks impressive, even extraordinary, does not it?

Most notably, TATA Motors does not plan either to stop, or change their global expansion’ swift strategy. Today, there are big plans to take a market niche in neighboring car markets, particularlyRussia and China. That is how with discovering new marketing directions and introducing a big array of market options, the company can take serious economic advantage from global expansion.