Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0027

Year : 2004

Industry : Automobiles

Region : China

Teaching Note:Available

Structured Assignment :Available

Abstract: In July 1994, when the Chinese authorities began the task of making China's automotive sector one of the country's strongest industries, the automobile market was opened to the foreign companies. But the access to the market came with a rider – technology transfer to the local companies. General Motors (GM) entered the Chinese automotive market through joint ventures with seven Chinese companies.

Eventually GM got the permission to set up a manufacturing unit investing between $1 billion and $2 billion to manufacture mid-sized cars in China. But the company's Chinese odyssey has not been very smooth. It not only had to deal with fluctuating car demand but also with its joint venture partners who proved to be tough negotiators.

Despite the problems, GM continued to focus on China and the perseverance seemed to pay off with the company tripling its sales in 2003.

Pedagogical Objectives: