Arising Issues and Events

Arising Issues and Events

During this research, there were several emerging issues and stories making news as far as the two automotive companies are concerned. First, the uniqueness of the products produced by the two companies as well as their market impact makes every step of the companies make news of value. On one hand, JLR Company has found itself in media spotlight on various occasions. For example, the 14 percent increase in sales of JLR products in November 2012 from the previous figure of 29,893 units caused a magnetic effect of media attraction. This was closely followed by a rise in profit gains by Tata Motors Limited., which was a tremendous climb by the company as it recorded a 3.1 percent by the end of May. According to analysts, the sales of JLR products have been increasing significantly, especially in Asia and China causing the decline of TML product sales. JLR has done this through the introduction of new brands of products such as the F-type and the Range Rover (Clegg et al. 2012, p. 32). Consequently, it is expected that this trend will continue through 2013 as the company is opening a new branch in Saudi Arabia. It also received an approval from the main industrial planner in China to start producing cars in the digest auto market. From this, it is clear that the future of JLR is brighter than that of TML, as JLR is venturing into emerging markets, including Russia, China and South Africa in order to expand its market. However, it is impossible to establish assembly plants in countries where taxes are too high. For instance, the production of JLR in India is almost impossible as the tax system in India makes manufacturing of vehicles much more expensive than imports. For such obstacles to be dissolved there is a need for the government of such countries to provide incentives to foreign investors. Similarly, for TML to overcome its downward trend in sales there is need for it to learn from JLR. New products should be produced for it to expand its market. Innovative production will lead to the discovery of new market segments, hence making its products competitive. It should invest detailed analysis in order to discover emerging market in which to expand its boundaries (Lester, 2007, p. 22).