Tata Motors achieved its competitive advantage in global commercial vehicle markets through its 2004 acquisition of Daewoo Commercial Vehicle Company. The acquisition of Daewoo by Tata Motors brought essential market exposure to the company for competing against major commercial vehicle manufacturers Daimler Volvo and Traton. The company gained expertise in cross-cultural integration and collaborative product development through this acquisition which will prove vital for its upcoming strategic partnership with Iveco.
The medium and heavy-duty trucks from Daewoo use Indian-designed cabins that have been modified for the Korean market. The light-duty segment in Korea built by Tata uses Indian-developed components to demonstrate its market adaptation and innovation capabilities.
Tata Motors aims to acquire Iveco’s commercial vehicle division while focusing on premium customer segments and utilizing the existing strengths of the company. Tata Motors will maintain both the brand identity and distribution networks of Iveco to preserve market continuity and customer loyalty based on its experience with Jaguar Land Rover (JLR).
The strategic acquisition will make Tata Motors a more dominant global player by using established international integration models to enter high-value markets.
