Tata Motors

1. Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging population being weighing factors on mass market car makers. This has led to cost cutting and over capacity for European car makers. This seems to be a trend worldwide as well as car makers are depending on there luxury brands to make them profitable. Tata has seen a profit due to Jaguar and Land Rover surging there net sales up 71% to 566 million dollars and raising revenues 31% to 568.82 billion rupees. This came dispute as the company said “a weak operating environment in the India business which was more than offset by increasing wholesale volumes and richer product and market mixes at JLR”. This is similar to Renault depending on Nissan and sales of cars produced in low cost factories in Romania to cover domestic losses. Mercedes and BMW are generating healthy profits but Volkswagen despite having a leading European market share relies on Audi for 60% of there profits. This is the same story for Tata as Mahantesh Sabarad, an analyst at Fortune Financial Services India Ltd. Stated that JLR is driving more than 100% of ...

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...ry of India and the sales of JLR in other nations such as England that have gave Tata their means for profitability as of right now. This differs from a global strategy due to Tata does not sell a standardized product all around the world and it is clear that Tata does not have a tight, controlled price of products across international markets and locations. Although transnational and multidomestic strategies are fairly close transnational differs from Tatas multinational business operates in several foreign countries, but it delegates strategic decision-making responsibility to its overseas subsidiaries, which operate as autonomous businesses where as transnational contain a varying degree of coordination between foreign nations and create value added features for a global environment but customized implications for regions that Tata doesn’t due besides in India.