Tata Indica EV Presentation

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Iftakhar Alam Zakia Jamal Ricky Singh Umer Sabzweri Jaseem PK Tong Vanichkobchinda

Tata Motors

Established in 1945, Indias largest automobile company with a portfolio of commercial, passenger and utility vehicles. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. It is Indias third largest passenger vehicle player.

It has had a strategic alliance with Fiat since 2005. Tata Motors distributes Fiat-branded cars in India.

TATA INDICA VISTA EV


SPECIFICATION

Engine : Permanent magnet motor Max Engine output: 55 kW Max Torque: 157 Nm Transmission: Single speed Top Speed: 114 km/h / 71 mph Acceleration: 0-30 km/h 4.5 sec; 0-60 km/h 9.0 sec Driving range per charge: 160 km / 100 miles (European Combined Drive Cycle) Battery type: Lithium ion super polymer Battery Capacity: 26.5 kWh On a single charge: Travels 177 km while hitting a top speed of 114kmph, 8 hours to recharge.

Seating capacity: 4 Doors: 5

TATA INDICA VISTA EV

Denmark, Norway and the UK are the first three countries on the plan to launch. The Vista EV is being developed and assembled at the International Automotive Research Centre at the University of Warwick Campus, Coventry. The battery comes from Swedish manufacturer Miljobil Grenalnd, the drivetrain from Canadian electrical systems company TM4, and the rest of the kit comes from India. Base price falls between 25,000 to 30,000 The Vista EV does qualify for the UK's 5,000 ($8,041 U.S.) plug-in car grant which drop its price down to a more reasonable level.

PEST Analysis
Political

Oil prices Foreign regulation Overloaded road network Restricting traffic flow by imposing additional taxation Administrative barriers

Economical

The target market size maturity of the target market personal disposable income (PDI) Currency stability Labour costs expansion of existing political and economic blocs (EU)

Social factors

Demographic factors Lifestyles

Technological factors

development of information technologies impact of new technologies on supply chain architecture

Market Screening
Internal Environment Key player in Automobile industry Own Plant & out sourcing Make the company globalize Innovation and engineering External Environment Social, cultural, legal, political, Economic & technological factors Market Size & profitability

Potential Market (By continent) Asia, Europe and USA Specific Segment in the country- Middle class Target Segment- Early adapter, Eco friendly, Young to Middle age

SWOT Analysis
Useful Analysis

to contrast between own and competitor activities

Internal Analysis

Strenghts

Weaknesses

Strengths:
Large

distribution network Vast experience Good mileage Strong and robust R&D division Sturdy body Tatas brand name (acquisition of Land Rover)

Weaknesses:

Unattractive look Crude Interior

Opportunities:

High growth rate of premium hatch back segment.

Strategic acquisitions - opportunity to develop its offering and reach across various segments and geographies.

Threats:

The global automotive industry is intensely competitive. Continuing globalization and consolidation in the worldwide automotive industry.

Ranking Markets (Attractiveness)


Weighting Market Size Market Growth Risk of Investment 40% 20% 20% UK 8 7 4 7 USA 5 5 7 5 Asia 3 3 9 4

Internal 20% Consideratio ns

Total Score

100%

26

22

19

Ranking Markets(Ability to Compete)


UK Product fit to 50% market demand Market Presence Resources 10% 20% 9 USA 5 Asia 1

3 7

0 1

2 5

Obtainable market share


Total score

20%

100%

26

10

Ability to Compete Vs. Market Attractiveness

Competition
Electric vehicles bound for the UK market
Make and Model
Mitsubishi i-MiEV Peugeot iOn Nissan Leaf Citroen C-Zero Tata Indica Vista EV Vauxhall Ampera

First UK delivery
January 2011 January 2011 February 2011 Early 2011 Mid 2012 Early 2012

Toyota Prius Plug-in Hybrid


Daimler Smart Fortwo E Drive Chevrolet Volt

Early 2012
Mid 2012 Mid 2012

Electric car prices


Mitsubishi i-MiEV Nissan Leaf Tata Indica Vista EV Vauxhall Ampera 23,990 23,990 24,000* 28,995

*before the 5000 government subsidy


Current choice of electric car is limited in the UK Some of the designs are well, not overly easy on the eye. Prices are also currently quite high.

Market Entry Strategy


Greenfield Entry approach. Tata Motors European Technical Centre TMETC), a wholly owned subsidiary of Tata Motors. Actively engaged in the design, development, assembly and commercialization of the Vista EV and Ace EV vehicles on behalf of Tata Motors.

Pros & Cons of Greenfield

Advantages
Avoids risk of overpayment Avoids problem of integration Still retains full control

Disadvantages
High risk and high commitment Slower Startup Requires knowledge of foreign market and culture

Recommendation

Appropriateness

Lack of proper acquisition target In-house local expertise Embedded competitive advantage

Recommendation
Correct entry approach has been taken.

Questions?

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