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Market

As the dominant force for movement of goods and passengers in a country of more than a billion people and area of 3.3 million sq. kms. the Indian commercial vehicles industry is at the core of economic development. Over 60% of all goods and 80% of all passenger movement in India is by road. The business of road transportation in the country is, therefore, a complex one, involving different road conditions, loading and distribution, taxation, operational economies, safety and emission.

Over the last decade, there have been a number of changes in Government policies, attempting to rationalise and assist this crucial industry. The recent initiatives of the National Highway Development Project (NHDP) involving construction of the Golden Quadrilateral, the North-South-East-West corridor and strengthening of the state and rural networks, have given a fillip to the industry. Over Rs. 1,200 billion has been earmarked for this ambitious project which will increase the highway length in the country by over 6,500 kilometres in the next five years.

The strengthening of the road infrastructure network, coupled with technological advancement and easy availability of finance

are bringing about a structural change in the industry. Transport operators, today, prefer multi-axle trucks which are capable of carrying heavier loads, to single and double axle trucks which were in vogue earlier. Operating economies, turnaround time, reliability and durability of these heavy trucks are superior.

Tata Trucks have been a dominant force in the Indian transportation industry for nearly five decades. Seven out of ten trucks seen on Indian roads, today, bear the trusted 'TATA' mark.

Achievements

Tata Motors is not only a full-range, commercial vehicle manufacturer it is also India's largest and amongst the world's top ten. Over 130 models - from 2-tonne light commercial vehicles (LCVs) to 40-tonne tractor-trailers and buses that can seat from 12 to as many as 60 people - provide a wide variety of transport solutions. Besides, the company offers a range of special purpose vehicles, off-road vehicles and vehicles for India's defence needs.

Tata Motors has been at the forefront of technological advancement of the commercial vehicles industry in India by product innovation and a focus on R&D programmes. It has introduced vehicles with safety and emission norms much before they were mandated by government regulations.

The opening up of the Indian economy and the entry of several multinational companies in the passenger car industry raised expectations of luxury, comfort and safety in the commercial vehicles industry, too. Discerning customers now look beyond operational economies - which are a must - and demand more comfort,

safety, luxury which in turn increase the productivity of their fleet. The EX range of Tata trucks introduced in the light, medium and heavy commercial range offered all these and more, creating a revolution in an industry that was slow to change. The TATA 2515, a 25-tonne multi-axle truck is the largest selling in an industry previously dominated by medium trucks.

The launch of the

TATA 407 in 1985 was a defining moment for the LCV industry in India. In a seven-player industry that included four renowned Japanese manufacturers, Tata Motors succeeded in offering a product that the customer found to be the best in performance, economy and value. It would be no exaggeration to say that the TATA 407 has become synonymous with the LCV in India. A number of customers equate it with gold - a unique symbol of prosperity and security in this country. It is the first

commercial vehicle brand in the country to offer an unlimited 300,000 kilometre/ three-year manufacturer's warranty.

The TATA 207 DI, with its numerous customer-friendly features is another example of a product success resulting from listening to the voice of the customer and combining it with excellent

product attributes. The product has been a runaway success in the sub 3-tonne segment and contributes significantly to sales volumes in the LCV category.

There is no Indian city, town or village that has not seen the familiar TATA name on a truck or a bus. From 1961, when Tata Motors exported its first truck to Sri Lanka, the name, Tata, has earned trust and respect in over 70 countries. In recent years, the company has consolidated its presence in key markets like Sri Lanka, Bangladesh, Malaysia and the African countries through new product introductions, product up gradation and strengthening its marketing and sales network.

History

Established in 1945, the company's lineage actually dates back to 1868 when the Tata Group was founded. The guiding principles

of the group have always evolved around national interest.

In the words of J R D Tata, founder-chairman of Tata Motors, "No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people and is achieved by fair and honest means".

Tata Motors, which started with the manufacture of steam locomotives at Jamshedpur, East India, entered into collaboration with Daimler Benz in 1954 to manufacture trucks. It quickly gained leadership in the Indian commercial vehicle market By the time the collaboration ended in1969, Tata Motors had become a dominant force in the Indian commercial vehicle industry.

The company's manufacturing facilities are spread over three plants located at Jamshedpur, Pune and Lucknow. When manufacturing facilities were set up in Pune in the mid 1960s, the company had taken another step in its quest for technological excellence and self-sustenance.

The late Sumant Moolgaonkar, then Chairman and Managing Director was seen as "not building a factory, but building a nation."

Product

With over 130 variants on offer, Tata Motors is India's largest and only full-range manufacturer of commercial vehicles. The commitment to understanding customer needs and innovation has seen the company introduce new models at a faster rate than any of its competitors. From the 2-tonne Pick-up to the 40-tonne giant multi-axle tractor-trailer, the company's range is unmatched.



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