TATA motors is not able to meet safety standards in their vehicles.

The domestic sales of the company are not up to the mark.

Tata has not got a foothold in the luxury car segment in its domestic market.

Opportunities

TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power.

TATA motors should focus in developing luxury cards.

TATA motors can introduce more safety features in vehicles to gain more customer satisfaction.

Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats

TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage.

Other companies are starting to compete for some of this market share.  In fact, the Pakistan’s Transmission Motor Company has built a basic four-wheeler for only $2,100.  This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile.  This is going to be the beginning of new emerging car manufactures that will be producing low priced cars.

The major challenge for TATA motors is the rising prices of steel, Aluminum and plastic which is heavily used in vehicle manufacturing.

The low safety standards can impact the sales.