TATA Motors SWOT Analysis

TATA motors is one of the leading motor vehicle producer in the world. TATA motors has 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.


One of the leading company in automobile industry with more than 70 years of experience. During this period it had produced more than 3 million vehicles which is huge achievement  for the company.

TATA motors has been expanding its business which is obviously require more workforce. Currently TATA motors employee base is 23,000 Approx.

One of the strengths which is very visible in the industry and also 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.

It is India largest automobile company with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08.

TATA motors is expanding its network in International market by aggressively acquiring foreign companies.

TATA motors has been famous to introduce new vehicles, this is possible just because of the strong research and development.

TATA motors also play active role in corporate and social responsibility.


Shareholders of TATA motors are not getting much from their investments due to low ROI on shares.

The thing which customer not like about TATA motors vehicles is weak safety standards.

Domestic sales are not impressive.

TATA always followed the low cost advantage strategy although the other segment such as luxury car are still untapped.


As it is low cost vehicle product so it can take the advantage of this strength to exploit the opportunity by entering into the third world countries.

Incorporate safety features in the vehicles to gain more customer satisfaction and allow the safety cautious people to become the customer of TATA motors.

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries.


The prices of material such as steel, plastic, rubber is rising which also raise the total production cost of vehicle.

TATA motors has cost advantage over its competitors.If the competitors will follow the same strategy then it may reduce the sales of TATA motors.

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol, diesel and CNG

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