Tata-Daewoo: Road to Gunsan

Scenario of TATA motors prior to acquisition Tata gos Commercial Vehicles (CV) business was focused and dependant on the domesticated markets in India. Global sales were a scanty 5% of total sales & it had plans to increase this to 20%. Tata Motors CV division wanted to reduce its domestic exposure, since the Indian markets were cyclical with regards to the volumes. This cyclicality is higher in India as compared to some other countries, since the Indian Market is still evolving. Tata Motors, also had been quite unsuccessful, in trying to gain entry into China, which was a growing CV market as Tata CVs were underpowered and what China and authentic countries wanted was powerful and high tonnage carrying capacity vehicles. also the Chinese market was flooded with low-end cheaper trucks, and profit margins were far too low for Tata Motors to make an entry. Examine the market implications of acquiring the Daewoo rig by Tata Motors Market Implications Tata Motors inked an investment agreement in February 2004 to sire the South Korean truck-major Daewoo Commercial Vehicle for $102 million.   The acquisition mark the beginning of Tata Motors global expansion trail and is expected to serve well the company make headway in a minute of other markets.

Tata Motors is the largest company of the Tata Group of companies. Poised at a Global growth mission where it aspires that in long endpoint basis major revenue of the organization will be fulfild from overseas market. Tata Daewoo marks a significant milestone to achieve such ambitious mission. The Global Tata Motors The most important favour is that Tata Motors top line and bottom line will go up. Daewoo is a profit-making company though Daewoos manufacturing plant was operating at only a quarter of its capacity, yet it commanded a 30 per cent market domestic share in the 8-tonne-plus segment. Tata Motors suffer set a goal where... If you want to get a full essay, order it on our website: Ordercustompaper.com

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