TATA motors is the market leader in Indian Industry with high market share. TATA motors began in 1945 since then it produced more than 3 million vehicles. TATA motors employed around 23000 employees and it is expanding with pace.

Strengths

TATA motors is market leader in Automobile Industry with high market share.

TATA Motors Company have huge employee base.

TATA motors employee productivity percentage is higher.

TATA motors produce low price car with low fuel consumption.

TATA motors is the reputable brand in Indian Industry.

Tata Motors Limited is India’s largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08.

The company’s dealership, sales, services and spare parts network comprises over 3500 touch points.

Tata Motors has been aggressively acquiring foreign brands to increase its global presence.

The research and development department of TATA motors is very strong.

TATA motors posses High corporate responsibility.

Weakness

Return on Investment on TATA motors shares in low.

TATA motors is not able to meet safety standards in their vehicles.

The domestic sales of the company are not up to the mark.

Tata has not got a foothold in the luxury car segment in its domestic market.

Opportunities

TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power.

TATA motors should focus in developing luxury cards.

TATA motors can introduce more safety features in vehicles to gain more customer satisfaction.

Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats

TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage.

Other companies are starting to compete for some of this market share.  In fact, the Pakistan’s Transmission Motor Company has built a basic four-wheeler for only $2,100.  This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile.  This is going to be the beginning of new emerging car manufactures that will be producing low priced cars.

The major challenge for TATA motors is the rising prices of steel, Aluminum and plastic which is heavily used in vehicle manufacturing.

The low safety standards can impact the sales.