PESTLE Analysis of Tata Motors. Tata Motors is an Indian automotive manufacturing company. JRD Tata established the automobile company in 1945. The headquarters of the automotive company is in Mumbai, Maharashtra, India.
Some of the main products and services of Tata Motors are as follows;
- Automotive parts
- Commercial vehicle
- Luxury vehicle
- Vehicle leasing
- Pickup trucks
- Automotive finance
- Vehicle services
Key statistical facts and figures about Tata Motors are as follows;
- The annual revenue of the automotive company in 2023 was 44 billion US dollars
- Out of which, the net income of the brand was 300 million US dollars
- Approximately 59000 people are working for the company to manage its operations
Some of the main subsidiaries of Tata Motors are as follows;
- Tata Hitachi Construction Machinery
- Hispano Tata
- Technologies Tata
- Marcopolo Tata
- Daewoo Tata
- Jaguar Land Rover
- Tata Motor Cars
Some of the top competitors of Tata Motors are as follows;
- Mitsubishi Motors
Today, we’ll discuss the PESTLE analysis of Tata Motors. It is going to focus on the macro factors like political, economic, social, technological, legal, and environmental impacting the automobile company. Here’s Tata Motors PESTLE analysis as follows;
Political Factors Impacting Tata Motors
Some of the main political factors in the PESTLE analysis of Tata Motors are as follows;
Tata Motors is operating its business in dozens of countries and nations. The political environment of those countries impacts the business operation of the automotive company. The automobile brand should be aware of the government and political conflicts before making any strategic decisions.
Tata Motors should comply with the rules and regulations of various countries. There are many types of regulations that the automotive brand has to follow, and they are as follows;
- Merchandise Area
- Mechanical wellbeing guidelines
- Valuation guidelines
- Licensed innovation security
- Organization and obstruction
- Degrees of defilements
Economical Factors Impacting Tata Motors
Some of the main economic factors in the PESTLE analysis of Tata Motors are as follows;
Tata Motors is operating its automotive business in different countries across the world. The currency foreign exchange rate has a great impact on the profitability of the company. For instance, if the dollar rate is higher in the currency exchange market than the local currency of the country; then it would decrease the sale and impact the overall revenue and profitability of the company.
High Capital Cost
The expanding and increasing capital cost has a negative and terrible impact on the growth of Tata Motors in the global market. It pushes the company towards downsizing and puts great pressure on it. As a result, subsidiary brands like Tata Nano have failed, but some other brands have greatly benefited the company.
Social Factors Impacting Tata Motors
Some of the main social factors in the Tata Motors PESTLE analysis are as follows;
Public perception matters a lot when you are selling cost-efficient automobiles at a mass scale. Tata Motors claims its vehicles to be the least expensive. It has attracted the attention of a lot of customers, and low cost doesn’t mean low quality. Automotive vehicles are like the small room of a person, and it has to be good because people spend a significant amount of time there.
Speaking of public perception, Tata Motors also engages in various types of charitable and social welfare projects to present a healthy brand image. According to an estimate, the automotive brand is supporting and funding more than 300 NGOs, and it shows the company’s interest in the welfare of society.
Technological Factors Impacting Tata Motors
Some of the main technological factors in the Tata Motors PESTLE analysis are as follows;
Tata Motors is operating its business in the cutting-edge and highly competitive automobile industry. In order to deal with the tough competition, research, and development in innovative technology is the only way to stay relevant in the competitive environment.
Speaking of innovative technology, Tata Motors is investing a significant amount of resources in the development of electric vehicles. Electric vehicles are a growing industry trend, and various automotive companies are working on the efficiency of electric vehicle technology. Any type of unique and innovative feature would give the brand a competitive edge.
Legal Factors Impacting Tata Motors
Some of the main legal factors in the Tata Motors PESTLE analysis are as follows;
As we are aware of the fact that Tata Motors is operating its business in dozens of countries and nations across the world. The governments of different countries are highly cautious about the production, material sourcing, automotive operations, and imports and exports of the automobile industry.
Environmental Factors Impacting Tata Motors
Some of the main environmental factors in the Tata Motors PESTLE analysis are as follows;
The automobile industry contributes significantly to environmental pollution and carbon emissions. The consumer market has become highly cautious about the environment and Mother Nature. It imposes a great obligation on the company to keep up with the growing trend and develop hybrid and electric vehicles.
Conclusion: Tata Motors PESTLE Analysis
After an in-depth study of the PESTLE analysis of Tata Motors; we have realized that Tata Motors is the world’s leading automotive manufacturing company. If you are learning about the impact of macro factors on the automotive brand Tata Motors, then you should keep in mind the abovementioned external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.