Pest Analysis of Tata Motors Ltd

INTRODUCTION

Tata Motors Limited was establishes in the year 1945 under the Tata Group and is one of the

largest automobile corporate in India and perhaps in the South Asia. It is also the first company

from India to register itself in the New York Stock exchange. They started producing vehicles in

the year 1954 , with 15 years partnership bond with the Dailmer Benz company of Germany.

Over the years Tata Motors have become the top 5 vehicle manufacturers in the world in the

category of commercial vehicles.

Tata Motors is the first company in India to introduce the first light commercial vehicle, Tata

Ace, first indigenously produced cab, Tata Indica, first sports utility vehicle, Tata Safari, and

the world's least expensive car, Tata Nano.

COMPANY OVERVIEW

Since the introduction of the Tata Motors Ltd by the Tata Group, they have been a strong

presence in the field of commercial and passenger vehicles since 1991 in India as well as

abroad. Presently they have five lines of passenger vehicles and a huge production line of

commercial vehicles, which constantly manufactures trucks, vans, lorries, trailer, bus etc.

Even though the backbone of the company lies in the production of commercial vehicles, but

are fastly gaining the grip and pace is the production of passenger vehicles since a decade.

Their commercial have a have a huge demand in the international market consisting of Middle

East, Africa, Europe, Australia, Southeast Asia etc. And have expanded all over the globe

through taking over foreign companies or through exporting their cars to other countries. For

instance they have acquired the Daewoo, which is the second largest truck manufacturer in

South Korea in the year 2004. And enabling themselves to enter the Korean market and have

become a important presence in their market. In 2006 they collaborated with Thonbin

Automotive in Thailand and emerged into their market by the production of pickup truck. The

Tata also acquired the luxury car brands the Jaguar and Land Rover from Ford by paying USD

2.3 billion, thus making them enter into the luxury car segment. Thus they are proving

themselves to be a strong presence in the global market.

PEST ANALYSIS

And to know more about the Tata Motors Ltd, let's do the PEST analysis of the company which

will give us a clear cut idea about the company's future goals and strategies that helps them to

expand at a rapid rate internationally. PEST analysis also would give us an idea regarding the

political, economic, social and technological factors that influence the business of Tata Motors in

the international market.

POLTICAL ANALYSIS

The Tata have extended its operations throughout Africa, Europe, Asia and Middle East and

hence it needs to monitor the changing political situation and the legal laws of the foreign nation

where they have expanded their business. And needs to please the regulatory bodies that

govern the regions where they operate. As the success in trade in the local region depend upon

the governing system of the place. And the response of the local people, government, trade

patterns, and economy of the targeted market section by Tata Motors.

After the purchase of Jaguar and Land Rover from Ford in 2008, the Tata needs to develop a

strong governing system and company laws which can regulate and control the trade and

commerce in all the international markets where they have expanded their operation. Tata

currently have only 18% of its revenue from International business, which is very low when

compared to other automobile corporate in the world. Moreover they need to watch the political

situations in the countries where they want to expand. The headquarters of Tata from Mumbai

should make sure that their branches throughout the world are abiding the laws of the host

countries where they operate and moreover they have to deeply understand the needs of the

international customer and develop the product accordingly to it. And thus they can operate

efficiently in the global market and can gain competitive advantage over its rivals both

domestically and internationally.

ECONOMIC ANALYSIS

Tata Motors has established itself as a globalized brand. And in order to gain a clear cut

advance in the foreign countries they operate, they work with an international perspective

targeting on each segment on each segment of market individually. Tata is trying to grow at a

rapid rate internationally by expanding itself or through collaborating with other automotive

giants in the host country over five different international regions. Since the year 2004 , an

international style makes Tata to learn different marketing and business techniques and adapt

itself into the different place they operate. The experiences and the utilization of the resources

from