Tata boasts impressive numbers according to their profile. Not only is Tata the largest car manufacturing company in India, but it is also the fifth largest medium and heavy commercial vehicle manufacturer, and the second largest medium and heavy bus manufacturer in the world. Fuelled by their drive to be the best in values and production, there is no surprise that Tata is on the top of their game.
Founded in 1945 by Jamshetji Tata under the Tata and Sons Group, the company formerly known as TELCO (TATA Engineering and Locomotive Company) was originally producing trains.
Tata first established itself in the international market in 1961, with their commercial vehicles distributed in different parts of the country such as Ukraine, Malaysia, South East Asia, and Africa, to name a few.
What separates Tata from any other car manufacturer is the way they produce vehicles that appeal to the needs of the consumers. The Engineering Research Centre was founded in 1966 and is responsible for producing some of the company's most popular cars, such as the Tata 407, India's first light commercial vehicle, and the Tata Indica. The latter, in particular, became India's fastest selling car. To increase car performance and reduce pollution that theirs cars were previously causing, Tata signed with Cummins Engines Co. to help the manufacturing of emission-friendly engines.
Given their successes, the ERC has gained critical praise that led them to win awards from the Government of India, including the National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern and the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in the late ‘90s.
In 2004, Tata was listed in the New York Stock Exchange, a first for India's engineering sector. The same year also saw the company begin its global expansion starting with the acquisition of Korea's second largest truck maker, Daewoo Commercial Vehicles Company. They formed the Tata Daewoo Commercial Vehicle Company and are responsible for two-thirds of the heavy commercial vehicles distributed in the international market. The following years saw them acquire Hispano Carrocera of Spain, Marcopolo of Brazil, and Thonburi Automotive Assembly Plant Company of Thailand.
After the Indica in 1998, Tata achieved commercial success yet again with the release of Tata Ace, India's first, less than one ton mini truck, in May of 2005. Due to its excellent performance and sturdy design, Tata Ace clearly became the choice of single truck owners for transportation. At the same time, the demand for the Ace also increased LCV sales by more than 35 percent.
Currently, Tata is headed by Ratan Tata. It has factories located all over India, with Lucknow (Uttar Pradesh) and Pantnagar in the north, Jamshedpur in the east, and Pune in the west. Another plant in Singur is planned to be built in order to accommodate their line of small cars. Much of their success is also due to their strong financial backing in TML Financial Services Limited.
Despite their achievements, the highly-competitive nature of automobile manufacturing poses a great challenge to the company's goal of reaching the top. However, expect Tata to maintain its service of providing excellent transport solutions.
Original Authors: Manny
Edit Update Authors: M.A.Harris
Updated On: 11/06/2008