Will Tata Motors run like a Startup ?

In India, Car Manufacturer are not finding easy way for survival.

Auto Market is tough for scale. Recent news of General Motor exits from India and others brands VW, Ford area also under pressure (according to ET).

They states reasons are pricing and profitability. Among Indian players, Maruti with major share 47% in the market is trying hard to lure the customers and Tata Motors ‘s recent decision on running flatter hierarchy organization. These are signals of the tough competition and major changes in auto market scenario in India.

Recent news of Tata Motors, India’s largest automobile company by revenue, has decided to make flat hierarchy and decided to remove designations. The car manufacturer want to establish an environment in which teamwork-inspired creativity can flourish.

Designation matters for everybody but level of hierarchies delays the decisions, that is the only reason Startups always scale faster than corporate in EARLY days and become big.

There is no surprise if Tata Motors build culture like any successful startup as Mr. Ratan Tata, chairman of Tata Group, has already experienced by investing into 25 startups.