Challenges Facing Tata Motors Essay

860 Words 4 Pages
Q. What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
Ans. Following are the challenges faced by Tata Motors while introducing commercial vehicles:-
 To develop on its internal capabilities, Tata had to integrate all its resources and align it to the manufacturing operations to be carried out. So bringing together all the products and packaging under one brand name was challenging.

 Tata had to enter a market where big players like Hyundai Motors, Daewoo Motors and Fiat India already existed. Increased competition in the sector had to lead to rise in price sensitivity among the customers.

 There lied a challenge to integrate the efforts of
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 Tata was focussing on the domestic market only, so they were not sure to get benefits of economies of scale as the volumes to be produced were thought to be low.

 There was major shortfall in the marketing area of Tata Motors as they did not have showrooms to create customer base. After sales service in terms of spare parts availability and servicing facility was also poor. Q. How did Tata Motors overcome the challenges? Reflect on the sequence of events and action plans and the impact thereof on the performance.
Ans. Tata Motors followed the listed steps to overcome the challenges:-
 In order to enter a new segment, Tata needed to associate its employees to its idea, hence a clear and ambitious task was set to become a world class car manufacturer.

 To address the resource gap Tata Motors utilized its second hand plants and paint shops which was used while being in partnership with Mercedes.

 The company also utilized the robots bought from Nissan plants by shipping them to machine tools division to be installed. The company to suit Indica, bought two presses from Mercedes-Benz and modified at machine tools division of the company. These three presses were commissioned to form the body
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This led its joint venture with world renowned IDEA in order to seek key inputs in design, transmission and engine and later to be modified by the in- house engineers.

 The next step of Tata was to create a suitable vendor base. Tata had a simple notion to select vendor, deliver quality within the stipulated time. For ensuring this system, it created a Supplier Quality Improvement Team which had the task to carry on supplier evaluation through a 13- step quality improvement programme.

 To encourage global manufacturers, Tata invested in Tata Auto Comp Systems and hence formed several joint ventures to keep the Indica project at pace.

 Tata decided to roll out its cars as fast as possible. Hence where an average car took 48 months to run on road, Tata took only 18- 24 months as its gestation period. This was only possible through its excellent supply chain management.

 Tata came up with a unique concept that they will use online service for speedy flow of information through very small aperture terminal (VSAT).it also helped in demand forecasts for its

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