TATA motors Essay Example | Topics and Well Written Essays - 1000 words

TATA motors - Essay Example However, there are issues of uncertainty that affects the automobile industry, such as economic downtimes that reshapes the entire structure of the sector (International Labor Organization, 2010). This presentation thus analyses these uncertainties in relation to how it affects Tata Motors. The automobile industry is subject to consider by many as being the most profitable industries. On the contrary, the industry has been able to experience its own highs and lows. For example, the recent economic downturn experienced in 2009 led to the major economic downturn in the industry (Economic Outlook no. 1210, 2014). Other factors causing uncertainty in this industry are as listed below; Conducting PESTLE analysis is a popular and most useful tool to help in understanding on the reductions or growth through the market. The understanding may include the position of the potential that the business has in the market. The automobile industry is again under the period of uproar. Crises of 2008/09 are far from over, and currently, the industry may probably be marking the start of the second revolution (UNIDO, 2010). These are the three key uncertainties facing the industry; In an overall outlook, India’s automotive industry is in a better shape than compared to what it was five years ago, with the growth progress estimated to continue over the coming years. Four key challenges (best and worst) need to address in determining the future profitability (McKinsey & Company, 2013). 1) Complexity and cost pressure – the future of the industry predicts that there will an extra platform for sharing and more modular systems. More regulatory pressure will occur and prices will be flat (Freyssenet & Groupe, 2009). 2) Diverging markets – the auto industry should adapt to the changing regional and the segment patterns of both supply and demand patterns. There is a threat from the emerging Chinese after sales market that offers new growth opportunities (Giachetti &