Operations Management at Tata Motors

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Case Details:

Case Code : OPEA003
Case Length : 22 Pages
Period : 2003
Organization : Tata Motors
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Automobile

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Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies


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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Business Segments

Tata Motors had two main business segments - commercial vehicle business unit and passenger car business unit.

Commercial Vehicle Business Unit (CVBU)

In 2003, Tata Motors' commercial vehicles sales grew by 27.3%. CVBU recorded domestic sales of 1,06,194 units, a growth of 32% over 2001-02, maintaining its overall CV market share at 56%. The company had a 67% share in the truck segment and 51% in the bus segment. While Tata Motors lost some market share in the LCV segment in the first half of the year, it recovered in the second half of the year with the successful introduction of new models like Tata Safari Exi, and Tata SFC 407 EX Turbo...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies


Tata Motors had all along believed in developing strong in house design, engineering, and manufacturing capabilities. Tata Motors performed a large part of its manufacturing activities in-house. It had installed facilities to manufacture engines, gearboxes and transmission mechanisms, body panels, castings and forgings and important components & sub-assemblies. It even manufactured its own machine tools, dies and fixtures, in its machine tools division...

Product Development

Sumant Moolgaokar, Chairman Tata Motors, from 1970 to 1988, had played an important role in shaping Tata Motors's R&D philosophy. Moolgaokar once commented:

"We spend a lot of money, Rs.10 to Rs.12 Crores (US$7 to 8 million at prevailing exchange rates) on R & D. It is our strong point...in a manufacturing industry research and development is a series of mistakes by which you benefit. It gives our people excitement and real knowledge. My singular contribution has been to build a team. We regard our whole operation as one big training facility"...

Vendor Management

In 1997, Tata Motors promoted Tata Autocompsystems Limited (TACO) with the objective of forming joint ventures with international auto component manufacturers and giving a special thrust to vendor development...

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