PRODUCT INNOVATION BY TATA MOTORS: HYBRID VEHICLES

Introduction

This report focuses on improving the digital capabilities of Tata Motors and introducing the new product “Hybrid cars” in the market. Tata Motors is a global automotive company which produces a wide range of vehicles including the commercial vehicle, electric vehicles and passenger vehicles (Tata Motors: Business: Tata Group, 2024, p.1). It is one of the largest Indian automotive manufacturing companies which have an extensive range of products for meeting the needs and expectations of the customers. Most of the customers face challenges in using the EVs due to the lack of charging infrastructure, this creates pressure on the company to innovate its product range and launch the new hybrid cars for meeting up to customer expectations.

It further discusses the job to be done and the customer needs, highlights the PESTLE analysis for the innovative product and provides recommendations. At the same time, it also focuses on the implementation plan for the new product. The SWOT analysis of the employee’s digital skills and capabilities and the SMART Action plan are also analysed here.      

JTBD & Customer Needs

Jobs to be done and the functional, social or emotional needs of a key custom

Customer Persona

Name: Hiten Patel
Demographics and story	Gender: Male  Age: 32 Location: AB block, New Delhi Occupation: IT Professional
Profile	Working at TCS, Delhi
Background	Lives alone and travels frequently to her hometown which is 500 Kms from DelhiTravels this distance weeklyTech-savvyCurrently uses the Tata Nexon EV for her personal trips and visiting home
Motivations for using hybrid cars	She is dependable for travelling to long distances and short tripsShe is very environmentally conscious, thus prefers using a vehicle which reduces environmental pollutionUsing the Hybrid car aligns with her profession and helps her to be environmentally conscious at the same time
Goals for using the hybrid cars	She seeks for a car Which reduces the dependency on charging infrastructure as it runs on both petrol and electricUsing such a car can minimise the carbon footprint and at the same time help her to maintain her professional image
Pain Points for Using Hybrid Cars	There are insufficient numbers of charging stations which creates problems for taking the electric vehicle for long drives.The charging time is much longer than the refuelling time of a patrol carElectric vehicles create an issue for planning long trips, due to the inability of charging infrastructure. This creates a need for hybrid cars.

Jobs to be done

Figure 1: Jobs to do framework

(Source: Gecis, 2021)

The Job to be done is mainly a business theory which suggests that the customers buy the products or services to accomplish certain tasks and related duties (Kurdi et al., 2022, p.5). Buying hybrid cars will solve multiple issues faced by customers in India for use electric vehicles and petrol cars. The Indian customers, who are using the EVs offered by Tata Motors face difficulty in taking the car for long distances, due to the inability of the charging infrastructure in India. Thus, introducing Hybrid vehicles will efficiently solve this issue. The different jobs to be done can be explained further:

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Functional jobs

The hybrid cars can help in long trips as they run on both petrol and electric. After a certain point when the fuel is used completely, the cars can cover the remaining distance on the electric energy. Therefore, it is more flexible for long trips, family vacations and business trips. Since the car runs on both electricity and petrol, it is cost-effective and reliable for commuting to work and other daily life activities. 

Social Jobs

The hybrid car reduces the carbon footprint and helps individuals sustain a professional and personal image aligning with the goals of environmental sustainability (Leckie et al., 2021, p.4). Choosing hybrid vehicles over petrol cars and electric vehicles reflects the commitment towards environmental conservation and helps them to maintain a public image.

Emotional jobs

The hybrid cars can easily run on electricity once the petrol is completely finished, thus it reduces the anxiety of individuals who are travelling long distances with their family or alone. This also satisfies their driving experiences and fulfils the environmental goals simultaneously. Thus, the majority of the customers opt for a better version of electric and traditional cars which is completely fulfilled by hybrid cars.

The need for innovation in response to market trends and customer feedback

Market trends

As per the research, the hybrid car market globally is estimated to be at USD 329 billion in the year 2021 and is expected to reach up to USD 1670 billion by the year 2030 (Gaikwad, 2024, p.1). At the same time, the market for hybrid cars is also expanding in India. The sales of Hybrid cars in the Indian market have increased from 18,000 in 2022 to about 83,000 in 2023 which is more than the sales of EVs (Oriel, 2024, p.1). The regulations by the government worldwide are also encouraging most of the companies including Tata Motors to adopt hybrid cars. On a similar note, the rising fuel prices are also changing the preferences of customers for travelling long distances with their traditional vehicles, which is also increasing the demand for hybrid vehicles.

Figure 2: sale of hybrid cars and EVs in India

(Source: Oriel, 2024, p.1)

Customer feedback

The customers are raising complaints, due to the insufficient charging infrastructure available in India. They face difficulty in taking their electric vehicles for long-distance travel. The reviews given by the customers focus on the need for more convenient charging solutions. Hence Tata Motors needs to introduce hybrid vehicles to satisfy customer needs and maintain sustainability goals

Critical Evaluation and Recommendations

Most significant factors from PESTLE

The political factor is one of the most significant factors in increasing the sales of hybrid cars in the Indian market. The support from the Indian government and other incentives for the production of hybrid cars can help Tata Motors in launching its new range of hybrid cars. By launching Faster Adoption and Manufacturing of Hybrid Cars and EVs (FAME) in 2015, the government provided financial support to the manufacturers and buyers of electric cars (Briefing, 2024, p.1). This scheme also focuses towards developing the charging infrastructures to increase the demand for hybrid vehicles.

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Considering the economic factor, the fuel prices in the Indian market keep on fluctuating (Mani et al., 2020, p.3). Thus, Tata Motors can launch the hybrid cars; it will solve this problem and fulfil the expectations of the Indian customers. On the other hand, Tata Motors can also use the latest technologies and integrate with advanced battery technology staying competitive within the Indian automotive industry. As per the legal factors, lowering the tax on hybrid cars has also encouraged Indian consumers to shift from traditional to hybrid cars (ETEnergyworld, 2024, p.1). Hence these factors are very crucial for Tata Motors to start manufacturing hybrid cars.  

Recommendations

Tata Motors has a wide range of traditional cars which run on petrol and a range of EVs (Devi, 2023, p.4). Thus, the company can combine these features in a sustainable manner to create a new product which is the hybrid vehicle, which is more affordable and fuel-efficient. The company can also conduct thorough market research, analyse the changing trends and collect customer feedback to make any changes in its new hybrid cars. Gen Z and the millennial have a hectic lifestyle and most of them are environmentally conscious, thus they mainly prefer environmentally friendly vehicles (Courtney, 2020, p.6). Tata Motors can use unique opportunities such as tax relaxation to launch the new hybrid cars and popularise these new products in the Indian market. Introducing new features in the hybrid car can also strengthen its position in the Indian market and help the company to reach different segments of the customers. 

Change and Stakeholder Management Plan

Creating an implementation plan for the product

Artificial Intelligence Initiative

The implementation of AI technology within hybrid cars can also help increase the sales of these hybrid cars in the Indian market. The integration of AI-powered self-driving technology can improve the safety of the passengers and reduce the chances of accidents (Karnati and Mehta, 2022, p.3). On the other hand, self-driving cars offer multiple levels of autonomous driving capabilities, which turn out to be beneficial for Indian customers. The AI algorithms also help in route optimisation, collision avoidance and finding the best route which is free from traffic. It provides a complete prediction of the traffic patterns and reduces the travel time of the individuals. Hence it improves the customer experience and is preferred by a majority of customers across India.

Implementation Plan

Factors	Main activities to be initiated	Stakeholders	Timeline
Conducting a thorough research	Hiring R&D teams to conduct market research Gathering data about the existing Indian automotive industry	R&D teams	6 months
Development of the new product	Designing the hybrid cars Introducing new technologies in these cars	AI development teamEngineering team	12 months
Manufacturing the products	Hiring new employees Training the employees to design the productsAccommodating self-driving components in hybrid vehiclesConducting audits and quality control surveys	Operations teamManufacturing teamR&D team	12 months
Installing the AI self-driving technology	Conducting research and adding self-driving technology in the new hybrid cars (Al-Nuaimi et al., 2021, p.4)Adding new safety features in the cars	AI development teamCustomer support teamR&D team	6 months
Marketing of the product	Using the social media platforms such as Facebook and InstagramCreating a marketing campaign for popularising hybrid cars with auto-driving technology (Rodrigues and Ponchio, 2020, p.3)Collaborating with influencers and other celebrities to promote and market hybrid cars	The sales and management teamMarketing team	4 months
Collecting customer	Creating an online website where customers can share their reviews regarding hybrid cars with self-driving technologyHiring a team to address the queries faced by the customers	Technical teamCustomer support team	5 months

Ways of handling the stakeholders

The stakeholders should be made aware of the changes and other updates regarding the manufacturing of hybrid cars. At the same time, it is essential to involve the stakeholders in the decision-making process to avoid any kind of future conflicts (Cao et al., 2021, p.2). They should be made aware of the progress in the manufacturing of hybrid cars and the challenges related to the adaptation of self-driving technology. On a similar note, these stakeholders should be provided with comprehensive training and other support so that they can be equally involved in the process of manufacturing hybrid cars.

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Accelerators of the change

To speed up the change and adopt self-driving hybrid cars, Tata Motors can form partnerships with the other leading research and development institutes in India. On the other hand, Tata Motors can also collaborate with celebrities and influencers and create marketing campaigns to increase awareness about hybrid cars. By using a social media platform and other digital platforms, they can create a campaign highlighting the benefits of hybrid cars, which can attract more customers in the Indian market to buy the cars from the hybrid car segment.   

Ways to overcome blockers

The company may face difficulty in understanding the new technologies and upgrading itself. Thus, the company needs to invest in a proper research and development team to overcome these technological barriers and manufacture self-driving hybrid cars. At the same time, customers may have different queries regarding buying these self-driving hybrid cars (Kumar and Hallur, 2020, p.7). The company should hire a technical team to maintain transparent communication with the customers and inform them about the benefits of self-driving hybrid cars. On a similar note, they should also collaborate with the regulatory authorities to address the safety concerns and increase the sales of these cars.

Digital Capabilities SWOT Analysis and Action Plan

Evaluating individual’s digital capabilities

The JISC Building Digital Capability Discovery Tool helps in understanding individual digital capabilities (Balyk et al., 2020, p.5). My personal digital capabilities include my ability to engage with teammates, create PowerPoint presentations and be extremely creative in completing any research work.

Summary of the SWOT

Figure 3: SWOT Analysis

(Source: Global, 2023, p.1)

As per my strengths, I have strong communication skills which can expand my employability and help me to participate in management-related job roles in the future. With the help of research and data analytics skills and the skills of managing digital projects, I can also enrol myself into a career related to research and become a data scientist in the future. Participating in digital projects and engaging in different community programmes can help me to improve my digital capabilities. However, the lack of understanding of the latest technologies and the limited knowledge of innovative strategies and AI technologies can create obstacles in my career path. Moreover, there is high competition in the data-related field which will also act as one of the potential barriers to my professional growth and development.

Summary of SMART Action Plan

To improve my digital skills, I can also enrol in a technology-related course. By setting a target of six months, I can work on improving my digital skills and gain a deeper understanding of the latest technologies. On the other hand, it is also essential for me to participate in AI-related webinars where I can learn about innovations and AI technologies. Hence, these workshops and webinars can help my career development.

Completion of the BCG Digital Transformation Job Simulation

I have participated in this simulation, which has helped me to identify my skills and capabilities. Moreover, I have also enrolled myself in different workshops, webinars and courses to improve my digital efficiency.

Conclusion

From the findings of the report, it can be concluded that the implementation of hybrid cards would be extremely beneficial for Tata Motors in increasing its sales in the Indian market. Since the country lacks EV charging stations, it becomes very difficult for travellers to use electric vehicles. Thus, the shift from traditional and electric vehicles to hybrid vehicles is extremely preferable for consumers.  The use of such cars is more cost-effective and reliable for commuting from one place to another. Hence, more customers will end up buying the hybrid electric cars.

References

Al-Nuaimi, M., Wibowo, S., Qu, H., Aitken, J. and Veres, S., (2021). Hybrid verification technique for decision-making of self-driving vehicles. Journal of Sensor and Actuator Networks, 10(3), p.42.

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Cao, J., Chen, X., Qiu, R. and Hou, S., (2021). Electric vehicle industry sustainable development with a stakeholder engagement system. Technology in Society, 67, p.101771.

Courtney, D.A., (2020). Exploring Generation Z’s Environmental Concerns and Its Effects on their Purchasing Behaviors.

Devi, A.J., (2023). TATA Motors limited: A revolution in electric cars-a case study. International Journal of Case Studies in Business, IT and Education (IJCSBE), 7(2), pp.156-172.

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Gaikwad, A. (2024) [latest]global hybrid vehicle market size, forecast, analysis & share surpass US$ 1670 BN by 2030, at 30% CAGR, LinkedIn. Available at: https://www.linkedin.com/pulse/latestglobal-hybrid-vehicle-market-size-forecast-analysis-avi-gaikwad-n6klf#:~:text=The%20Global%20Hybrid%20Vehicle%20Market,30%25%20between%202022%20and%202030.&text=A%20hybrid%20car%20makes%20use%20of%20multiple%20power%20sources.

Gecis, Z. (2021a) 8 things to use in ‘jobs-to-be-done’ Framework for product development, Medium. Available at: https://uxdesign.cc/8-things-to-use-in-jobs-to-be-done-framework-for-product-development-4ae7c6f3c30b

Global, B. (2023) 3 easy steps to create a SWOT analysis, BNI. Available at: https://www.bni.com/the-latest/blog-news/3-easy-steps-to-conduct-a-swot-analysis (Accessed: 25 May 2024).

Hamzah, M.I. and Tanwir, N.S., (2021). Do pro-environmental factors lead to purchase intention of hybrid vehicles? The moderating effects of environmental knowledge. Journal of Cleaner Production, 279, p.123643.

Karnati, A. and Mehta, D., (2022). Artificial Intelligence in Self Driving Cars: Applications, Implications and Challenges. Ushus Journal of Business Management, 21(4).

Kumar, A. and Hallur, G.G., (2020). Driving The Electric Vehicle Revolution in India: Case Study of Tata Nexon. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(6), pp.4273-4287.

Kurdi, B., Alshurideh, M., Akour, I., Alzoubi, H., Obeidat, B. and Alhamad, A., (2022). The role of digital marketing channels on consumer buying decisions through eWOM in the Jordanian markets. International Journal of Data and Network Science, 6(4), pp.1175-1186.

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Rodrigues, J.C. and Ponchio, M.C., (2020). Impact of brand trust and technology readiness on the willingness to use autonomous cars in Brazil. International Journal of Business Strategy and Automation (IJBSA), 1(4), pp.56-72. Tata Motors: Business: Tata Group (2024) Tata Motors | Business | Tata group. Available at: https://www.tata.com/business/tata-motors#:~:text=Tata%20Motors%20is%20a%20global,commercial%2C%20passenger%2C%20and%20EVs.&text=Tata%20Motors%20Limited%20(TML)%20is,mobility%20solutions%20in%20its%20portfolio.