Abstract

Tata Motors (TM) and Fiat Auto S.p.A (Fiat) are large auto manufacturers. The case describes the transformation of TM from a commercial vehicle manufacturing company to a leading passenger car company in India, and its forays into global markets. It also details the growth of Fiat, the problems the company faced, and the strategies it adopted to tackle these problems. The case then talks about the alliance between the two companies, and the benefits and costs from the alliance for each company. The case ends with a brief discussion on the future prospects of the alliance.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Gain insights into the developments in the Indian and global auto industry
• Analyze the turnaround strategies of TM and Fiat, and the compulsions behind the formation of the alliance between the two companies
• Understand the importance of alliances in the global automobile industry.

Keywords

Tata Motors, Fiat Auto, Strategic alliance, Joint ventures, Automotive industry