Professional Documents
Culture Documents
MarketLineIC - Tata Motors Limited - Profile - 030120
MarketLineIC - Tata Motors Limited - Profile - 030120
India, the company's largest geographic market, accounted for 20.2% of the company’s
revenue in FY2018. This was followed by the UK (17.4%), the US (15.2%), China (14.7%),
rest of Europe (15.7%), and rest of the world accounted for the remaining 16.8%. Hence,
diversified geographic presence ensures that the company does not rely on any one market
for a majority of its revenues, which in turn reduces its business risk.
the South African market. Hence, the company's aggressive strategies for geographic
expansion and penetration would provide growth opportunities for the company in new
markets. In addition, it would diversify its business risk in the long run.
and Europe have stringent regulations relating to vehicular emissions. Jaguar Land Rover
business has significant operations in the US and Europe which have stringent regulations
relating to vehicular emissions. The proposed tightening of vehicle emissions regulations by
the European Union will require significant costs of compliance for Jaguar Land Rover.
Legislation is now in place limiting the manufacturer fleet average greenhouse gas emissions
in Europe for passenger cars starting 2012 and the US with their Federal Green House Gas
(GHG) Standard that apply to 2012-16 model year vehicles and issued regulations in 2012 for
tightened fuel economy and emissions standards for model years 2017-25. In addition, many
other markets either have or will shortly define similar greenhouse gas emissions standards
such as Canada, Mexico, China, Japan, South Korea, Switzerland, Brazil, Saudi Arabia,
Turkey, Taiwan, and Australia. In Europe, implementation of LCV carbon dioxide standards
would impact the Defender and a small number of Free lander and Discovery vehicles.
Furthermore, the Ministry of Road Transport & Highways and the Bureau of Energy Efficiency
in India finalized labeling regulations for the M1 category of vehicles, which includes all
passenger vehicles up to less than or equal to 10 seats. The label shows the combined fuel
economy of the vehicle, along with the ranking of fuel efficiency on a five star system. To
comply with the current and future environmental norms, the company could incur substantial
capital expenditure and research and development expenditure to upgrade products and
manufacturing facilities, which could affect the cost of production and results of operation.
Hence, new or changing laws, regulations and government policies regarding increased fuel
economy, reduced greenhouse gas and other emissions, vehicle safety and taxes may have
significant impact on the Tata Motors’ business.
Disclaimer:
The facts of this report are believed to be correct at the time of publication but cannot
be guaranteed. Please note that the findings, conclusions and recommendations that
MarketLine delivers will be based on information gathered in good faith from both
primary and secondary sources, whose accuracy we are not always in a position to
guarantee. As such MarketLine can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.