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SWOT Analysis for TATA Motors

TATA motors are one of the leading motor vehicle producers in the world. TATA motors

have strong background and reputation in the market. The company is working to strengthen its

position in automobile industry by adopting different strategies. Following are the strengths,

weaknesses, opportunities and strengths of TATA motors.

Strengths

TATA Motors is one of the leading companies in automobile industry with more than 70 years of

experience. One of the strengths which is very visible in the industry and beneficial for TATA

motors revenue are low price vehicles and low fuel consumption. Due to TATA motors strong

brand and quality vehicles it has good reputation in the industry (Sekar et al. 456). TATA motors

are expanding its network in International market by aggressively acquiring foreign companies.

The company is renowned for introduce new vehicles, which has been made possible by its

strong research and development. The corporation`s corporate and social responsibility will also

provide an added advantage in the U.S. market.

Weaknesses

One weakness that TATA Motors faces is its inability to meet safety standards. Although they

have made the most inexpensive car out on the market, it has yet to pass all the safety standards

that are a legal factor, which could hinder its entry into the American market. Similarly, TATA
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Motors ventured into passenger cars segment less than two decades ago, which can be viewed as

a weakness due to the firm`s inexperience in the segment.

Opportunities

TATA Motors has already opened the doors for many new and innovative ideas. One of the

major opportunities that TATA Motor faces is that as a large U.S. adult population do not own

cars, partly because vehicles are costly and require high maintenance costs. Therefore, the huge

market for low-priced cars is likely to benefit TATA Motors. Similarly, with its entry into the

American market, TATA can benefit from the technological advancement in the American auto

industry, which can potentially enable the business to venture into the luxury car segment, thus

opening more opportunities in mature markets, such as Europe.

Threats

The obvious threat to TATA Motors is intellectual property rights. TATA invented the cheapest

car on the market and every automobile manufacturer seeks to copy this technology. Overtime,

competitors are likely to discover TATA`s valuable information and use it to manufacture their

own versions of low-cost cars. The threat is particularly huge in the US market where

competition is stiffer. Additionally, the evidence from developing countries suggests that cheaper

cars are associated with increased pollution and global warming, partly because many people can

afford them (Nielsen and Wilhite 376). Since many American consumers are environmentally

conscious, the pollution tag associated with low-cost cars is likely to affect TATA`s sales

negatively.
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Works Cited

Nielsen, Kenneth Bo, and Harold Wilhite. "The Rise And Fall Of The ‘People's Car’: Middle-

Class Aspirations, Status And Mobile Symbolism In ‘New India’". Contemporary South

Asia, vol 23, no. 4, 2015, pp. 371-387. Informa UK Limited,

doi:10.1080/09584935.2015.1090951. Accessed 4 Oct 2018.

Sekar, M. et al. "A Study On Capital Structure and Leverage Of Tata Motors Limited: Its Role

And Future Prospects". Procedia Economics and Finance, vol. 11, 2014, pp. 445-458.

Elsevier BV, doi:10.1016/s2212-5671(14)00211-1. Accessed 4 Oct 2018.