Pestel Analysis of Tata Motors

1. Tata Motors •Tata motors is a part of Tata group and was established in 1945. •It entered the segment in 1954. •TML started business in a collaboration with Daimler Benz, this partnership has made TML India’s largest automobile company. • Till date 8 million Tata vehicles are plying on the road.

2. PESTEL • PESTEL analysis means Political, Economical, Social, Technological, Environm ental and Legal analysis. • It is a standard way of analyzing macro-economical forces which impact a company or a corporation. • Every organization is started with a pre-determined objective, commonly known as the ‘mission’. • PESTEL analysis helps to infer whether a particular factor is helping the organization to achieve its goals or is acting as an impediment in its road to success.

3. Politico Legal The Singur Controversy • TML acquired a land of 997 acres for manufacturing Cars by state government support. Nano •But this acquisition required the displacement of farmers. •It attracted heavy criticisms, “Save Farmland” movement was started by opposition leader Mamata Bannerjee. •On 3rd October, 2008, TML closed its plant from Singur. •It was later established in Sanand, Gujarat.

4. Economical • TML’s economic scenario is quite promising with GDP growth rate around 7%. • However, high interest rates and low freight availability impacted its financial infrastructure in first quarter of 2013. • During the same time, price pressure from competitors also marred its financial position. • The commercial vehicle segment of TML gave it an edge over others at this time and the big and mid sized vehicles helped TML to regain its ground. Recently tata motors net profit falls by 56% in the last financial year.

5. Social • Where ever TML goes, may it be domestic or international markets, it hires mostly the local population generating employment. • Due to its age long history and its welfare activities, Tata enjoys full public support. • TML is also involved in philanthropy and supports around 600 NGOs. • Tata also works towards provided high standards of education to students. • Some of the institutes opened and managed by Tata are Indian Institute of Science, Tata Memorial Centre, Tata Institute Social Sciences, etc.

6. Technological • In order to adapt with the latest technology TML owns Tata Technologies Limited. • TTL helps TML in the upgradation of designs and technology. • Tata faced a technological hurdle when two units of its revolutionary Nano cars caught fire in the year 2009. • After forensic investigation TML released the word that the two incidents werent related in 2010. • It assured the customers that Nano is perfectly safe.

7. Environmental • TML manufactures its vehicles according to the norms of Indian and Euro standards of emission. • TTL is fostered by Tata to manufacture greener cars with low fuel consumption and lowest emission gases possible. • TML has invested huge sums of money in its R&D section to produce eco-cars. • As an eco-friendly company, TML has also invested in various “Green Earth, Clean Earth” campaigns. • It has also worked towards the stopping of deforestation many years in a row.

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