Future of Tata Motors
CATEGORIES
- Asset Performance
- Innovation assets and pipeline
- Disruption vulnerability
- Company headlines
- Company’s future prospects
DATA ACCESS
Tata Motors Limited (previously TELCO, short for Tata Engineering and Locomotive Company) is an Indian global automotive producing company headquartered in Mumbai, India, and a member of the Tata Group. Its products include trucks, coaches, sports cars, military vehicles, passenger cars, vans, buses, and construction equipment. Tata Motors has auto production and assembly plants in Pantnagar, Sanand, Jamshedpur, Lucknow, and Dharwad Pune in India, as well as in South Africa, Thailand, Argentina, and Great Britain. It has research and development centers in Lucknow, India, Great Britain, Spain, Pune, Jamshedpur, Dharwad, and South Korea. Tata Motors' major subsidiaries purchased the English premium car producer Jaguar Land Rover (the producer of Land Rover cars and Jaguar) and the South Korean commercial vehicle producer Tata Daewoo. Tata Motors has a bus-production joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment production joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which produces automotive components and Fiat Chrysler and Tata branded vehicles. Established in 1945 as a producer of locomotives, the company produced its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.
Innovation assets and Pipeline
All company data collected from its 2015 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page.
DISRUPTION VULNERABILITY
Belonging to the motor vehicles and parts sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:
*First off, the plummeting cost of solid-state batteries and renewables, the data crunching power of artificial intelligence (AI), the increasing penetration of high-speed broadband, and the falling cultural attraction to car ownership among millennials and Gen Zs will lead to tectonic changes in the motor vehicle industry.
*The first giant shift will arrive when the price tag for an average electric vehicle (EV) reaches parity with an average gasoline vehicle by 2022. Once this happens, EVs will take off—consumers will find them cheaper to run and maintain. This is because electricity is usually cheaper than gas and because EVs contain significantly less moving parts than gasoline-powered vehicles, resulting in less strain on internal mechanisms. As these EVs grow in market share, vehicle manufacturers will shift most-to-all of their business to EV production.
*Similar to the rise of EVs, autonomous vehicles (AV) are projected to attain human levels of driving capability by 2022. Over the following decade, car manufacturers will transition into mobility service companies, operating massive fleets of AVs for use in automated ride-sharing services—direct competition with services like Uber and Lyft. However, this shift toward ridesharing will lead to significant reductions in private car ownership and sales. (The luxury car market will remain largely unaffected by these trends until the late 2030s.)
*The two trends listed above will result in the reduced volume of vehicle parts sales, negatively impacting vehicle parts manufacturers, making them vulnerable to future corporate acquisitions.
*Moreover, the 2020s will see increasingly devastating weather events that will further drive environmental awareness among the general population. This cultural shift will lead voters to pressure their politicians to support greener policy initiatives, including incentives to purchase EV/AVs over traditional gasoline powered cars.