Challenges Facing Tata Motors Case Study

1. What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
The Key challenges faced by Tata Motors in the process of moving to produce passenger’s cars from successfully producing commercial vehicles were:
Tata wanted to expand their operation to produce car in collaboration with Honda of Japan but realised political barrier because Government of India refused the permission.
There were many complexities in involved from the stretch of Raw materials to after sales-services.
Organizing upon competencies and alliances were also one of the challenges. Working upon international standards in domestic market and also to rival with global players were the challenges they had to answer.
They were having the designing technology and expertise in LCV and HCV

Initially after collaboration many design improvements were required and they used to experiment with that. They had a tough job to induce an engine which should suit Indian roads.
Earlier during commercial vehicle designing they were into only exterior designing but now they had to perform interior designing.
They already had large engine manufacturing facilities but they shift required them to produce small engines for the cars.
They were in need of new assembly line to large cater large volume needs of cars. And also had to develop a strong vendor network to supply them with all equipment and components for assembly.
Most of its value of car was outsourced during In-house manufacturing, due to which they had to incur huge transaction cost.
They set a target to monitor cost, quality and set up numerous channel partners.
They already had several centres and a large network of sales, services and spare parts across India for the commercial vehicles but now they were required to establish new sales and distribution channel for the car