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ata Motors Ltd is a multinational corporation headquartered in Mumbai, India. Part of the ata
Group, it was formerly known as  LCO (AA ngineering and Locomotive Company).

ata Motors is India¶s largest automobile company, with consolidated revenues of USD 20
billion in 2009-10. It is the leader in commercial vehicles and among the top three in passenger
vehicles. ata Motors has winning products in the compact, midsize car and utility vehicle
segments. he company is the world's fourth largest truck manufacturer, the world's second
largest bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, ata
Motors has produced and sold over 4 million vehicles in India.

stablished in 1945, when the company began manufacturing locomotives, the company
manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG,
which ended in 1969. ata Motors is a dual-listed company traded on both the Bombay Stock

change, as well as on the New York Stock
change. ata Motors in 2005 was ranked among
the top 10 corporations in India with an annual revenue e
ceeding INR 320 billion. In 2010, ata
Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual
survey conducted by Brand Finance and he conomic imes. ata Motors has auto
manufacturing and assembly plant in Jamshedpur, Lucknow, Ahemdabad, Sanand And Pune In
India, as well as in Argentina, South Africa and hailand.

Despite the success of its commercial vehicles, ata realized his company had to diversify and he
began to look at other products. Based on consumer demand, he decided that building a small car
would be the most practical new venture. So in 1998 it launched ata Indica, India's first fully
indigenous passenger car. Designed to be ine
pensive and simple to build and maintain, the
Indica became a hit in the Indian market. It was also e
ported to urope, especially the UK and
Italy.

c

'c In 2004 ata Motors acquired Daewoo's truck manufacturing unit, now known as ata
Daewoo Commercial Vehicle, in South Korea.
'c In 2005, ata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling
rights of the company.
'c In 2007, Formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in
the Indian Market.
'c In 2008, ata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler
and Lanchester brand names.
'c In 2010, ata Motors acquired 80% stake in Italy-based design and engineering company
rili
for a consideration of ¼1.85 million. he acquisition is in line with the company¶s
objective to enhance its styling/design capabilities to global standards.

x


c
c
c
c
After the acquisition of the British Jaguar Land Rover (JLR) business, which also includes
the Daimler, Lanchester and Rover brands, ata Motors became a major player in the
international automobile market. On 27 March 2008, ata Motors reached an agreement with
Ford to purchase their Jaguar Land Rover operations for US$2 billion. he sale was completed
on 2 June 2008. In addition to the brands, ata Motors has also gained access to two design
centers and two plants in UK. he key acquisition would be of the intellectual property rights
related to the technologies.

x c
c
ata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of Brazil.
his joint venture is to manufacture and assemble fully-built buses and coaches targeted at
developing mass rapid transportation systems. he joint venture will absorb technology and
e
pertise in chassis and aggregates from ata Motors, and Marcopolo will provide know-how in
processes and systems for bodybuilding and bus body design. ata and Marcopolo have launched
a low-floor city bus which is widely used by Chennai, Delhi, Mumbai, Lucknow and Banglore
transport corporations.

ata Motors also formed a joint venture with Fiat and gained access to Fiat¶s diesel engine
technology. ata Motors sells Fiat cars in India and is looking to e
tend its relationship with Fiat
and Iveco to other segments. ata has also formed several JV's with many small companies in
various countries around the world.


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cc

In January 2008, ata Motors launched ata Nano, the least e
pensive production car in the
world at about Rs. 100,000 (US $2,500). he city car was unveiled during the Auto
po 2008
e
hibition inPragati Maidan, New Delhi.
ata has faced controversy over developing the Nano as some environmentalists are concerned
that the launch of such a low-priced car could lead to mass motorization in India with adverse
effects on pollution and global warming. ata has set up a factory in Sanand, Gujarat and the
first Nanos are to roll out summer 2009.

ata Nano uropa has been developed for sale in developed economies and is to hit markets in
2010 while the normal Nano should hit markets in South Africa, Kenya and countries in Asia
and Africa by late 2009. A battery version is also planned.

c
c

ata Ace, India's first indigenously developed sub-one ton mini-truck was launched in May
2005. he mini-truck was a huge success in India with auto-analysts claiming that Ace had
changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a
new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged
as the first choice for transporters and single truck owners for city and rural transport. By
October 2005, LCV sales of ata Motors had grown by 36.6 percent to 28,537 units due to the
rising demand for Ace. he Ace was built with a load body produced by Autoline Industries. By
2005, Autoline was producing 300 load bodies per day for ata Motors. ata Ace - Apka Pyaara
Chota Hathi.

Ace is still a top seller for ML with 5M units sold to date (June 2010).

Ace has also been e
ported to several uropean, South American and African countries and all-
electric models are sold through Chrysler's Global lectric Motorcars division.
c

  c c

ata Motors unveiled the electric versions of passenger car ata Indica and commercial
vehicle ata Ace. Both run on lithium batteries. he company has indicated that the electric
Indica would be launched locally in India in about 2010, without disclosing the price. he
vehicle would be launched in Norway in 2009.

ata Motors' UK subsidiary, ata Motors uropean echnical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for
US$1.93 M, which specializes in the development of innovative solutions for electric vehicles,
and plans to launch the electric Indica hatchback in urope ne
t year. On 17 Sept 2010 ata
motors presented to the DC [Delhi ransport corporation] Four CNG - lectric Hybrid low
floored Star buses to be used for commonwealth games. hese will be the first nvironmentally
friendly buses to be used for public transportation in India.

c c  c
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 LCON is a joint venture between ata Motors and Hitachi, which focuses on e
cavators and
other construction equipment.

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HVAL and HVL are 100% subsidiary companies of ata Motors engaged in the business of
manufacture of gear bo
es and a
les for heavy and medium commercial vehicles, with
production facilities and infrastructure based at Jamshedpur.

c  'c"%c# $c

L provides ngineering and Design ( D) solutions to the Automotive Industry. ata Motors
holds 86.91% of L¶s share capital. L is based in Pune (Hinjawadi) and operates in the US
and urope through its wholly owned subsidiaries in Detroit and London respectively. It also has
a presence in hailand. ata echnologies is a software service provider in the I services and
BPO space. Its global client list includes Ford, General Motors, oyota and Honda, to name a
few. It bought over the British engineering and design services company, Incat International Plc
for Rs4b in August 2005. Incat specializes in engineering  design services and product
lifecycle management in the international automotive, aerospace and engineering markets. With
this acquisition, ata Motors will have closer pro
imity to its global customers and be able to
provide a wider range of services.

cc!c   cc

ata Motor uropean echnical Centre is ata's subsidiary based in the UK. It was the joint
developer of the World ruck.

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ata Motors is the only company in India with a broad based presence across the industry, in all
segments of the commercial vehicles market ±heavy and medium commercial vehicles, light
commercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments - compact, midsize
car and utility vehicle segments - of the passenger vehicles market.

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With 50 years¶ presence in the automotive business, ata Motors understands customer needs
and develops products that meet their needs. o consider a few e
amples, as early as 1980s, the
company launched Light Commercial Vehicles, amidst Japanese competition, in which it today
strongly leads. In the 1990s, anticipating the need for an affordable family car, it launched the
now famous ata Indica, which occupies a leading position among compact cars. his keen
sense of the customer pulse led the company to launch in 2005, the ata Ace, India¶s first sub
one tone mini-truck, as a last-mile distribution vehicle once again creating a new market. Going
forward, ata Motors has anticipated that non-car owning families, at the bottom of the pyramid,
will look for an e
tremely affordable vehicle, providing e
ceptional value and this small car will
be launched in 2008.

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ata Motors is also very well-placed on technology capability. he company had set up its
ngineering Research Centre as early as 1966.With 1400 scientists and engineers and state-of-
the-art development, testing and validation facilities, it is this technology capability which has,
allowed ata Motors, over the decades, to offer indigenously developed products. his strength
has been accentuated, with the inclusion of M C, DCV and Hispano Carrocera in the RD
network, besides several other specialist e
ternal agencies. he company no longer needs to
develop every necessity itself. oday it just has to manage the process of product creation,
drawing upon already available RD and skills from different sources.
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he company¶s key strength is its people. he over 22,000 employees comprise a very broad
talent base, with the required skills in every aspect of the industry. With increasing international
initiatives by the company, this talent base is now getting enriched with the necessary
competencies to respond to meet world-class standards of quality and cost.
c
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ata Motors¶ goal is to enhance its leadership in India, and establish meaningful presence in
select international markets. he company will achieve this by developing and marketing
relevant products, on its e
isting platforms and new ones, which delight consumers in every
market they are introduced in.
he global automobile industry seems to be recovering ± in line with the world¶s improving
economic climate. Market sentiment has improved. he outlook for ata Motors appears to be
robust. he automotive demand in Asia remains strong and the market in urope, United
Kingdom and the United States has improved.
’c JLR¶s operations have been profitable over the last two quarters and the new Jaguar and
Land Rover products recently launched have all been well-received in the market. he
Company has enormous talent, capabilities and skills, in addition to an impressive
development of product and process technologies. hese will enable the Company to
achieve a more prominent position in the international automobile marketplace in the
coming years.

Highlights for each brand and their future plans are summarized below:-
x'c± he newly launched XF and XJ lu
ury sedans have been welcomed by customers in
the market. Jaguar cars are regaining the confidence of customers as being reliable, in addition to
being high-performance, with great road-handling and occupant safety. he Company is
considering widening the product range of Jaguar cars by introducing a station wagon, a new
entry-level Jaguar, and a new roadster.

%c*c-c'c*c± he Range Rover continues to be the gold standard for offroad

vehicles. Work is underway to revamp and refresh the entire model range. he new Range Rover
µ VOQU ¶ will be a bold design evolution in SUVs. Fuel-efficient µstart/stop¶ and hybrid
vehicles will also be introduced progressively. he current range of vehicles has seen resurgence
in demand, and the challenge before the Company today is to deliver enough vehicles to meet
market demand. China has emerged as the third-largest global market for Land Rover/Range
Rover and studies are underway to consider options to increase market penetration in China,
India and other developing markets.

cc.c%c
During the year ata Motors launched its all-new second-generation Indigo Manza sedan to join
the new Indica Vista hatchback launched last year. Both have been well-received in the market.
In January, the Company also displayed its new Crossover vehicle, two new passenger carriers
and an entire new range of heavy commercial vehicles. hese are being released progressively
during the current year.
he shift of the Nano manufacturing facilities from Singur in West Bengal to Sanand in Gujarat
has been completed. he new plant in Sanand, Gujarat, has become operational in a record 14
months¶ time and while this new facility will initially produce 250,000 Nanos per annum, it will
have the capability to e
pand to 500,000 units per annum. In the interim, Nano deliveries had
been e
ecuted from the Company¶s facilities in Uttaranchal. he new Sanand plant will now
make it possible to derive scale and optimization of manufacturing processes. he Nano has been
selling e
tremely well and continues to evoke unprecedented customer interest across the
country. Recognizing that scale and market growth are essential, ata Motors has, in addition to
its
domestic growth, viewed international e
pansion as an important strategic factor. With the
acquisition of Jaguar/Land Rover, Daewoo Commercial Vehicle Company Limited, Hispano
Carrocera S.p.A. Spain, and a major bus joint venture with Marco Polo of Brazil, ata Motors
e
pects to be in a position to offer a much wider product range in passenger cars and commercial
vehicles in an increasing number of international markets. he operational strategy would be to
leverage the Company¶s strengths in the design and development of products for the base of the
pyramid, namely, addressing the often-unserved large potential market at the low end, while also
growing in the higher priced segment. he Company also plans to undertake several joint
initiatives which will leverage the respective strengths and economies of its various domestic and
overseas establishments. While sales of JLR, as also the Indian commercial vehicle segment
suffered badly in 2008-09 during the global meltdown, resulting in a consolidated loss, all these
segments have been able to register an impressive recovery in 2009-10, vindicating the sound
fundamentals of the Company¶s longer-term strategies. here is great confidence that with the
major initiatives undertaken in terms of global acquisitions, product development, new product
introductions and operational synergies, ata Motors will achieve growth and take its place as a
respected and viable automobile enterprise in the global industry with meaningful size and scale
in the various segments in which it operates.
he progress which the Company has made would never have been possible without the
tremendous support of our management, our workforce and our unions. We also appreciate the
confidence and loyalty displayed by our customers, whom we will always strive to serve better.
Last, but not least, we wish to thank our shareholders for their continued faith and support to the
Company through good times and bad. All of this has gone towards making ata Motors the
company it is today. We would need this continued support to achieve the goals we have set for
ata Motors in the years ahead.



 c
’c Ratan N ata(Chairman)
’c Ravi Kant(Vice-Chairman)
’c J J Irani
’c R Gopalakrishnan
’c N N Wadia
’c S M Palia
’c R A Mashelkar
’c S Bhargava
’c N Munjee
’c V K Jairath
’c Ranendra Sen
’c Carl-Peter Forster(Chief
ecutive Officer  Managing Director)
’c P M elang(Managing Director- India Operations)
’c C Ramakrishnan(Chief Financial Officer)

 c
c
he Company recorded a sale of 633,862 vehicles in 2009-10, a growth of 34% over previous
year (472,885 vehicles) in the domestic market in India, representing a 25.5% share in the
industry (improving from 24.4% share in the previous year).
Commercial vehicle sales were highest ever at 373,842 vehicles achieving a robust growth of
40.9% over previous year and a market share of 64.2% (a gain of 0.4%, over previous year). A
strong product portfolio, successful launch of new products and variants, e
tensive efforts in
marketing and finance enablement for customers and leadership in market research and
penetration, contributed to the significant improvement in overall performance.

Passenger vehicle sales were 260,020 vehicles, highest ever, achieving a growth of 25.3% over
previous year and a market share of 13.7% (stable compared to 13.6% in the previous year). he
Company continues to be amongst the top three players in the passenger vehicle market which
has over 25 players. he growing sales of the new generation % c and successful launch
and market response for the %'c/cmainly contributed to the growth.


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Road development Hardening of interest rates and other
inflationary trends
Population Dividend and Increase in income Fuel Prices
levels
Growing consumer culture Input Costs
Rural Market Growth Government Regulations
Increasing scope for international business Global Competition

change Rates

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(RS. IN CROR S)

 

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N  WORH 2+4563+7 12230.15

LOANS 25586342 13165.56

FOR IGN CURR NCY MON ARY I M - 164.12

RANSLAION DIFF R NC ACCOUN
(N )

D F RR D AX LIABILIY (N ) 26,935+ 865.81


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N  FIX D ASS S 25+153,+ 14592.16

GOODWILL - -
INV SM NS 8811534, 12968.13

. FOR IGN CURR NCY MON ARY I M 252354

RANSLAION DIFF R NC ACCOUN
(N )
N  CURR N ASS S #691+352$ (1136.67

MISC LLAN OUS XP NDIUR - 2.02

OAL ASS S 33100.02 26425.64

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SAL OF PRODUCS AND OH R 1915+32, 28568.21
INCOM FROM OP RAIONS

L SS : XCIS DUY 87723,6 2938.48

166413,6 25629.73

DIVID ND AND OH R INCOM 29613+6 925.97


cc 17++536, 26555.70

:

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RAW MA RIALS / COMPON NS, 8467935+ 22325.90
MANUFACURING
AND OH R XP NS S
MPLOY COS 2915321 1551.39

PRODUC D V LOPM N XP NDIUR 2++3,1 51.17

D PR CIAION / AMORISAION 2,11397 874.54

IN R S AND DISCOUNING CHARG S 22,139+ 673.68

XC PIONAL I MS 48,3+6 65.26

OAL XP NDIUR c 1+525345 25541.94

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N  R V NU ( XCLUDING XCIS DUY) 35,593.05 25,629.73 28739.41
OAL XP NDIUR 31,414.77 23,877.29 25807.82

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;c
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OH R INCOM 1,853.45 925.97 483.18
PROFI B FOR IN R S, D PR CIAION, 6,031.73 2,678.41 3414.77
AMORIZAION, XC PIONAL
I MS  AX
IN R S AND DISCOUNING CHARG S (N ) 1,103.84 673.68 282.37

c? c 4,927.89 2,004.73 3132.4
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D PR CIAION, AMORISAION  PRODUC 1177.90 925.71 652.31
D V LOPM N XP NS S
XC PIONAL I MS 920.45 (65.26) 160.73
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AX XP NS 589.46 12.50 547.55
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BALANC BROUGH FORWARD FROM 1,685.99 1,383.07 1013.83
PR VIOUS Y AR
AMOUN AVAILABL FOR APPROPRIAIONS 3,926.07 2,399.62 3042.75
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In this table, the comparative change is shown of various important items like gross revenue,
operating profit, and profit after ta
etc. All are showing the same pattern: there are decreases in
2009 and growth rate is very high in 2010.
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Promoters and 37% 84.27%
Promoter Groupc
Mutual Funds and 2.15% 00.00%
Unit rust of Indiac
Government 15.78% 12.77%
Companies,
Financial Institutions
Banks and cosc
Foreign Institutional 17.83% 0.09%
Investorsc
NRIs, Foreign 17.41% 0.02%
companies
and ADRs/GDRsc
Othersc 9.83% 2.85%
c 2,,;c 2,,;c
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his table presents the shareholding pattern of the company i.e. which shows the share of
different shareholders in ownership.
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CURR N RAIO= CURR N ASS S/ CURR N LIABILII S

D B- QUIY RAIO=D B/ QUIY

R URN ON QUIY=PROFI AF R AX AND PR F RNC DIVID ND*100/N 

WORH

R URN ON INV SM N: PROFI B FOR AX*100/OAL CAPIAL MPLOY D.

ASS S URNOV R RAIO: SAL S/FIX D ASS S

PAY-OU RAIO: DIVID ND P R SHAR *100/ ARNING P R SHAR

his table shows the different ratios which are important to calculate to understand the position
of the company with the help of formulas written above. All ratios are increasing as compared to
previous year which is a sign of good performance but some ratio like current ratio and returns
can be increased.
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c As at 31.03.10 As at 31.03.09
N  CASH FROM OP RAING ACIVII S 56953,1 1295.02
N  CASH US D IN INV SING ACIVII S #229+9384$ (10585.12)
N  CASH FROM FINANCING ACIVII S 61+93+4 8104.70

his table shows the cash flow from different activities in the organization.
 
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<,4c 281.50c 180.00c

<,4c 363.25c 257.30c
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<,4c 421.55c 262.65c


<,4c 499.70c 403.85c
<,4c 614.85c 508.30c
 <,4c 589.25 c 529.30c
<,4c 663.15c 552.35c
<,4c 791.55c 688.70c
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?<2,c 721.55c 667.40c

<2,c 813.00c 725.20c
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<,4c 215.00c 175.35c

<,4c 296.10c 210.20c
x
<,4c 320.00c 267.00c
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<,4c 350.85c 235.25c


<,4c 365.10c 300.05c
<,4c 437.95c 383.05c
 <,4c 449.85c 413.75c
<,4c 495.10c 431.50c
<,4c 513.55c 472.40c
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<2,c 511.35c 415.05c
?<2,c 420.35c 379.35c

<2,c 484.55c 422.25c

his table shows the share performance of shares of AA MOORS LD. On National Stock

change. he value of share is increased manifolds in this time-period.
 
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PROFI AF R AX 88+,3,9c 1001.26
W IGH D AV RAG NUMB R OF +5B17B15B+51c 41,30,53,469
ORDINARY
SHAR S FOR BASIC PS
W IGH D AV RAG NUMB R OF µA¶ 5B+2B75B,89c 2,74,28,499
ORDINARY
SHAR S FOR BASIC PS
SHAR OF PROFI FOR ORDINARY SHAR S 245+34+c 937.63
FOR BASIC PS
SHAR OF PROFI FOR µA¶ ORDINARY 87632+c 63.63
SHAR S FOR BASIC PS

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ARNING P R SHAR =PROFI AVAILABL FOR QUIY SHAR HOLD R

NUMB R OF QUIY SHAR S

his table shows the earning per share of by the company which is also increased as compared to
previous year. It is the basic earning per share, not the diluted. arning per share is quiet good
but it can be improved.
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