INDIAN FIRMS

INTERNATIONAL MARKETING
AFTER LIBERALIZATION

Presented ByKRITI MATHUR (MBA/4501/13)

MANSI SHARMA (MBA/4503/13)
VIDUSHI GAUTAM (MBA/4543/13)
KAPIL KUMAR (MBA/4546/13)

Liberalization refers to laws or rules being

liberalized, or relaxed, by the government.

 Economic liberalization is generally defined as the

loosening of government regulations in a country to
allow private sector companies to operate business
transactions.
In relation to International Marketing, it refers to
opening of their economic borders to multinationals
and foreign investment.

 Balance of Payments (BOP) crisis in 1991 which pushed the country

to near bankruptcy.
Devaluation of Rupee & Economic Reforms were forced upon India.
India central bank had refused new credit & foreign exchange

reserves had reduced to the point that India could barely finance three
weeks worth of imports.
No FDI & FII Investments.

 Political Reforms for Good Governance

Re-engineering the Role of the government
Administrative and Legal Reforms

Strategic Management of the Economy with a focus on

knowledge based HRD Activities
Fiscal Prudence

Agricultural Sector Reforms

Industrial Restructuring
Labour Sector Reforms
Foreign Trade and Outward Investment Policies
Financial Sector Reforms

BEFORE LIBERALISATION
In 1942 Hindustan Motors Ltd incorporated and their first vehicle was
made in 1950.
In 1944 Premier Automobiles Ltd incorporated and in 1947 their first
vehicle was produced.

In 1953 the Government decreed that only firms having a

manufacturing program should be allowed to operate.
Only seven firms namely - Hindustan Motors Limited, Automobile
Products of India Limited, Ashok Leyland Limited, Standard Motors
Products of India Limited, Premier Automobiles Limited, Mahindra &
Mahindra and TELCO received approval.

CONTD..
In 1960, Association of Indian Automobile Manufacturers formally
established.
Major factors affecting the industry's structure were the
implementation of MRTP Act, FERA and Oil Shocks of 1973 and
1979.
In 1980s, First phase of liberalization announced and unfair practices
of monopoly, oligopoly, etc slowly disappeared. It was beginning of
Liberalization of the protectionism policies of the Government.
Since 1982 the Government had permitted foreign collaborations for
the manufacturing of Two Wheelers up to 100cc engine capacity.

CONTD..
In 1983 Maruti Udyog Ltd was started in collaboration with Suzuki,
a Japanese firm.
Important policy changes like relaxation in MRTP and FERA, delicensing of some ancillary products, broad banding of the products,
modifications in licensing policy, concessions to private sector (both
Indian and Foreign) and foreign collaboration policy etc. resulted in
higher growth / better performance of the industry than in the earlier
decades.

AFTER LIBERALISATION
Mass Emission Norms were introduced for in 1991 for Petrol
Vehicles & in 1992 for Diesel Vehicles.
In 1991, New Industrial Policy was announced. It was the death of
the License Raj & the Automobile Industry was allowed to expand.

The 90s had become the melting point for the car industry in India.
Though sales had taken a dip in the first few months of 1999, it is
back to boom time.
New models like Marutis Classic, Alto, Station Wagon, Fords Ikon
& the new look Mitsubishi Lancer had all been launched with an eye
on the emerging market.

CONTD..
In 2006, the Government of India has drawn up an ambitious
Automotive Mission Plan 2016
Exports are playing an increasing role in Indias automobile industry
with manufacturers such as Hyundai, Renault-Nissan & Ford,
Chevrolet, Honda, Toyota and VW, - investing in new capacity for
supplying local and overseas markets.
The foreign sales of Indian automakers are also increasingly being
made through directly-owned or joint venture-based foreign
operations, rather than through exports from Indian manufacturing
facilities.

CASE ON TATA
MOTORS

 Indian economy had a red letter day on July 24, 1991 when Mr.
Manmohan Singh, then finance minister, heralded the era of
liberalization.
The Indian automobile sector saw influx of many foreign players into
the market in the post liberalization era.
Tata Motors understood these challenges and translated these into
opportunities by exploiting new product-market segments.
Created new segments and developed innovative business models.
In spite of increasing competitive intensity, Tata Motors maintained
its leadership position in Indian commercial vehicle market.

ACHIEVEMENTS
Today Tata Motors is the 4th largest CV manufacturer in the world.

It is also the world's fifth largest truck manufacturer.

Tata Motors, also listed in the New York Stock Exchange (September 2004), has
emerged as an international automobile company.

Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand, South Africa and Indonesia.
In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas
second largest truck maker.

CONTD..
In 2006, Tata Motors formed a 51:49 joint venture with the Brazil-based,
Marcopolo, a global leader in body-building for buses and coaches to manufacture
fully-built buses and coaches for India .

Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the companys pickup vehicles in
Thailand, and entered the market in 2008.

Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa
Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north of
Pretoria.

The companys commercial and passenger vehicles are being marketed in several
countries like Europe, Africa, the Middle East, South East Asia, South Asia, South
America, CIS and Russia.

It has franchisee / joint venture assembly operations in Bangladesh, Ukraine, and

Senegal.

INTERNATIONAL
MARKETING OF TATA
MOTORS
Tata Motors is developing products that would suit global markets as well, as it also
explores
opportunity
to
enter
the
South
American
continent.
The company entered Indonesia last week. It has also entered Saudi Arabia, apart
from expanding business in Malaysia and plans for launches in Australia.

Last year, Tata Motors sold a total of 6 lakh units, of which 50,000 were in export
markets.
Tatas recent success with Jaguar Land Rover (JLR) certainly is a start. JLR gave Tata
direct access to the luxury car market in developed countries like Europe and the U.S.
Tata is primarily focusing on 14-15 countries that have similar market conditions to
India.

CONTD..
Tata is also taking its globalization plans to the next level in Indonesia, South
Africa, and Brazil, and from there tap the East Asian, African, and South American
markets.
Tata Motors entered the advanced Korean Market by acquiring Daewoo, with
which it has tremendous synergies in terms of product strategy and R & D.
In the export market, Tata Motors moved from a fragmented approach to specific
markets, chosen in terms of consumer behavior, distribution networks, supply
chain, etc. and identified South Africa as one of the best markets.
Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up
truck, for Latin American markets from Fiat's facility in Argentina.