A Project Report

I I I

On

“Impact Iof I ICovid-19 Ion Ibusiness Iperformance Iof Ithe IAutomobile Isector Iin

I India and their Sales and Performance.

I I I I I

For

“Tata Motors Ltd” I I

By

Nishan N I

Reg Ino. I19153

Submitted Iin Ipartial Ifulfillment Iof Ithe Irequirement Iof

Summer IInternship IProgramme I

Under Ithe Iguidance Iof

Mr Sridhar C V
I I I

Manager IAdministration, ISDMIMD, IMysore

&

Dr Neetu Ganapathy
I I

Associate IProfessor- ISystems, ISDMIMD, IMysore

___________________________________________________________________________

Shri IDharmasthala IInstitute Ifor IManagement IDevel

I
 Certificate
This is to certify that NISHAN N student of first year PGDM 2019-21, bearing
I I I I I I I I I I I I I

I the register no 19153 undertook the project entitled, “IMPACT OF COVID-19

I I I I I I I I I I

I ON BUSINESS PERFORMANCE OF THE AUTOMOBILE SECTOR IN

I I I I I I I

I INDIA AND ANALYSIS OF SALES AND PERFORMANCE OF TATA

I I I I I I I I

I MOTORS LTD”. In partial fulfillment of the requirement of Post Graduate

I I I I I I I I I I

I Diploma In Management, SDMIMD, and that he has worked under my

I I I I I I I I I I

I guidance and supervision. I I

The views expressed and suggestions made are entirely of her own and based on
I I I I I I I I I I I I I

I her empirical study.

I I

----------------------------------------------------------------------------------------------------------------

ACCEPTED AND FORWARDED TO THE DIRECTOR FOR I I I I I I

I APPROVAL

Place: Mysore I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Mr. SRIDHAR. CV

I I

Date : I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Manager administration I

------------------------------------------------------------------------------------------------

ACCEPTED AND FORWARDED TO SHRI DHARMASTHALA I I I I I

I INSTITUTE OF MANAGEMENT DEVELOPMENT I I I

Place: Mysore I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Dr N.R PARASURAMAN

I I

Date : I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Director

II
 DECLARATION

I, NISHAN N of first year of PGDM hereby declare that this report titled
I I I I I I I I I I I I I

I “IMPACT OF COVID-19 ON BUSINESS PERFORMANCE OF

I I I I I I

I AUTOMOBILE SECTOR IN INDIA AND ANALYSIS OF SALES AND I I I I I I I I

I PERFORMANCE OF TATA MOTORS LTD”, has been submitted during I I I I I I I I

I the year 2019-21 under the guidance and supervision of Mr. SRIDHAR. C.V
I I I I I I I I II I I

I Manager administration, Shri Dharmasthala Institute of Management

I I I I I I

I Development.

I also declare that this report is my original work and has previously not formed
I I I I I I I I I I I I I I

I the basis for the award of any degree

I I I I I I I

Place: Mysore I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII NISHAN N I

Date: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII REG NO: 19153I I I

III
 ACKNOWLEDGEMENT

To begin with, I would like to express great respect and gratitude to our beloved
I I I I I I I I I I I I I I

I Director Dr. PARASURAMAN for giving me an opportunity to do this project

I I I I I I I I I I I

I report.

My deepest gratitude to my project study guide Mr SRIDHAR. C.V for his

I I I I I I I I I I I I

I continuous and useful guidance and without which this project study would have
I I I I I I I I I I I

I hardly being carried out successfully.

I I I I

I express my sincere gratitude to the teaching and Non-teaching staff of Shri

I I I I I I I I I I I I

I Dharmasthala Institute of Management Development for their help, support and

I I I I I I I I I

I kindness.

My heartfelt thanks to all respondents of the survey for their kind corporation and
I I I I I I I I I I I I I

I I am grateful to every individual who has been my inspiration to take up this

I I I I I I I I I I I I I I

I project study and motivated me, both knowingly and unknowingly.

I I I I I I I I

Date: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII NISHAN N I

IV
 List of Contents
I I

Chapter Contents Page no

I

s No
I

1 Introduction & Project Design

I I I 1-2

2 Industry Profile
I I 3-10

3 Literature Review
I 11-19

4 Company Profile
I 20-45
5 Conceptual Context
I 46-78

6 Data Analysis & Interpretations

I I I 79-89

7 Findings 90-91

Suggestions 92-93

Conclusion 94-95

Annexure 96-99

Bibliography 100-101

V
 Chapter-1
Introduction I

&
Project Design
I I

VI
Introduction
A Iwell-advanced Itransport Inetwork Idesignates Ia Iwell-advanced Ieconomy. IFor Irapid
I development, Ia Ideveloped Iand Iknit Itransportation Isystem Iis Icrucial. IAs IIndia’s Itransport
I network Iis Iimproving Iat Ia Irapid Ipace, Ithe Iautomobile IIndustry Iof IIndia Iis Igrowing Itoo. IAnd,
I the Iautomobile Iindustry Ihas Istrong Ibackward Iand Iforward Ilinkages Iand Ihence Iprovides Ijobs I
I to Ia Ilarge Iportion Iof Ithe Ipopulation. IHence, Ithe Irole Iof Ithe Iautomobile Iindustry Ican’t Ibe
I ignored Iin IIndian Ieconomy. IAll Ikinds Iof Ipassenger Ivehicles Iare Iproduced Iby Ithe Iautomobile
I industry, IIndian IAutomobile Iindustry Icomprises Imanufacturing Iof Ibuses, Itrucks, Idefence
I vehicles, Ipassenger Icars, Itwo-wheelers Ietc. IThe Iindustry Iis Ibroadly Iclassified Iinto Ithe Icar
I manufacturing, Itwo-wheeler Imanufacturing I Iand Iheavy Ivehicle Imanufacturing Iunits. IThe
I major Imanufacturers Iare IHindustan Imotors, IYaya Imotors ILtd, IMaruti ISuzuki, IFord IIndia,
I Tata Imotors, IHyundai, ISkoda IIndia Iprivate ILtd, IKirloskar IToyota Imotors ILtd Ito Iname Ia Ifew.
I The Itwo-wheeler Imanufacturing Iasserts Idominance Iby Icompanies Ilike ITVS, IHonda, IHero
I MotoCorp, IYamaha, IBajaj Ietc. IThe Iheavy Imotors Ilike Itrucks Iand Ibuses, Idefence Ivehicles,
I auto Irickshaws Iand Iother Imulti-utility Ivehicles Iare Imanufactured Iby ITata-telco, IAshok
I Leyland, IBajaj, IEicher Imotors, IMahindra Imotors Ietc

Project Design I

A IProject Idesign Iis Ia Iplan Ior Ia Iconduct Iof Iformal Iinvestigation Iand Isurvey. IIt Iis Ithe
I specification Iof Imethods Iprocedure Ifor Iacquiring Ithe Iinformation Ineeded Ifor Ithe Iresearch Ior
I for Isolving Iproblem.

Research Design I

Title of the study:-

I I I

“IMPACT IOF ICOVID-19 ION IBUSINESS IPERFORMANCE IOF ITHE IAUTOMOBILE

I SECTOR IIN IINDIA IAND ISPECIFIC IANALYSIS IOF ISALES IAND IPERFORMANCE IOF
I TATA IMOTORS ILTD”

1
Research Objective I

 To study the Impact of performance of automobile sector due to Covid-19 pandemic

I I I I II I I I I I I I

 To examine profitabilty status

I I I

 To analyse and study sales and marketing strategy of Tata Motors Ltd
I I I I I I I I I I I

 To make a comparitive study of financial performance of Automobile sectors

I I I I I I I I I I

Scope of the study

I I I

The Istudy Iwill Ibe Idone Iin IAutomobile Iindustry Ispecifically Iof ITata Imotors ILtd Iin Iorder Ito
I analyze Ithe Icurrent Iposition Iof Iits Iprofitability Iand Iperformance Idue Ito ICovid-19 Ipandemic.
I The Istudy Ihelps Ito Iknow Ifinancial Iposition Iand Iother Ifactors Ilike Iemployee Ilay-offs Ietc. IThis
I study Iis Iconfined Ito Ionly Ione Ibranch Iand Ipossibly Ibe Iextended Ito Iother Icenters. IThse Istudy Iis
I based Ion Ithe Iannual Ireports Iof Ithe Icompany Ibalance Isheet, IP&L Iaccounts Ifor Ia Iperiod Iof I3
I years Iand Iperformance Irate Iis Icompared Ito Iselected Iautomobile Iindustries Isuch Ias IMaruthi
I Suzuki Iand IMahindra I& IMahindra.

Research methodology I

An Ianalytical Istudy Iwas Iundertaken Ito Iobtain Iinsight Iand Iclear Iunderstanding Iof Ithe Imarket.
I For Icollection Iand Ireference Ia Iquestionnaire Iwas Isent Ito Ifew Isamples Iand Ipersonal Iinteraction
I was Iundertaken Iwith Ione Iof Ithe Iclients Iof ITata Imotors

Limitations of the study I I I

 Study Iis Irestricted Ito IIndia Ionly.

 More Iof Ithe Iprimary Idata Icouldn’t Ibe Iprocured Idue Ito Icountry-wide Ilockdown.
 Datacollected Ifrom Isources Isuch Ias Iquestionnaire Icould Inot Ibe Iinterpretted Idue Ito INon
I response Iissues.
 Some Iof Ithe Iinformation Icollected Iare Iprivate Iso Ino Iviolation Ihas Ibeen Iundertaken Iby
I revealing Iit.
 The ICovid-19 Ioutbreak Iapproached Irapidly Iwithin Ia Ishort Ispan Iof Itime Iand Ithat Iis Iwhy
I not Imuch Iof I Iin-depth Iinformation Iwas Iavailable.

2
CHAPTER-2
Industry profile
I

3
Historical background of Indian Automobile Industry
I I I I I

In IIndia, Ithere Iare I100 Ipeople Ifor Ieach Ivehicle, Iwhilst Ithe Ifigure Iis I82 Iin IChina. IIt Iis Iforeseen
I that IIndian Icar Iindustry Iwill Iachieve Imass Imechanization Istatus Iby Iend Iof I2018 ISince Ithe
I primary Ivehicle Iappeared Iin Ithe Icity Iof IBombay Iin I1898, Ithe IIndian Iautomobile Iindustry Ihas
I progressed Isignificantly. IDuring Iits Iinitial Istages, Ithe Iautomobile Ibusiness Iwas Ioverlooked Iby
I the IGovernment Iand Ithe Iapproaches Iwere Inegative. IThe Iadvancement Iapproach Iand Idifferent
I expense Ireliefs Iby IIndian Igovernment Ilately Ihas Imade Isurprising Iimpact Ion IIndian
I Automobile IIndustry. IIndian Icar Iindustry, Iwhich Iis Iat Ipresent Iimproving Iat Ithe Iphase Iof
I around I17 I% Iper Iannum, Ihas Ibecome Ia Ihot Igoal Ifor Iworldwide Iauto Iplayers Ilike IVolvo, IFord
I and IGeneral Imotors.

Today, IThe IIndian Iautomotive Iindustry Iis Ifully Icapable Iof Iproducing Idifferent Ikinds Iof
I vehicles Iand Ican Ibe Iclassified Iinto I3 Icategories I: Iheavy Ivehicles, Icars Iand Itwo Iwheelers.
 The Ifirst Iautomobile Iin IIndia Iwas Iapproached Iin I1897 Iin IBombay.
 India Iis Irecognized Ias Ia Ipotential Iemerging Imarket Ifor Iautomobile.
 Foreign Icompetitors Iare Iheavily Iinvesting Is Iin Ithe IIndia Iauto Imarket.
 Among Itwo Iwheelers, Imotorcycles Isolely Icontributes I80% Iof Ithe Isegment.
 Unlike IUSA, Ithe Ipassenger Ivehicle Imarket Iin IIndia Iasserts Idominance Iby Icars Ithat Iis
I about I79%
 Tata IMotors Iasserts Idominance Iabout I60% Iof Ithe IIndian Icommercial Ivehicle Imarket.
 2/3rd Iof Iauto Icomponent Imanufacturing Iis Iused Idirectly Iby IOEMs
 The Ithree-wheeler Imarket Iof IIndia Iis Ilargest Iin Ithe Iworld.
 India Iis Ithe Ilargest Itwo-wheeler Iproducer Iin Ithe Iworld.
 India Iis Ithe Isecond Ilargest Itractor Iproducer Iin Ithe Iworld.
 India Iis Iachieved Ias Ithe I5th I Ilargest Icommercial Ivehicle Imanufacturer Iin Ithe Iworld.
 India Iis Ithe I4th Ilargest Icar Imarket Iin IAsia I– Iit Ihas Icrossed Ithe I1 Imillion Imark.

About I40% Iof Ithe Ithree-wheelers Iare Iused Ifor Ithe Ipurpose Iof Itransporting Igoods. IPiaggio
I covers I40% Iof Ithe Imarket Ishare. IWithin Ithe Ipassenger Itransportation, IBajaj Iis Ithe Ileader Iby
I holding I68% Iof Ithe Ithree-wheelers. ICars Iassert Idominance Iin Ithe Ipassenger Iengines Imarket
I by I79%. IMaruti ISuzuki Ihas Ishare Iof I52% Iin Ipassenger Icars Iand Iis Ia Iwhole Imonopoly Iin Imulti-
purpose Ivehicles. IIn Iutility Ivehicles IMahindra Iholds Ia Ishare Iof I42%.

4
In Icommercial Ivehicle Isector, ITata IMotors Iasserts Idominance Iin Ithe Imarket Iwith Igreater Ithan
I 60% Ishare. ITata IMotors Iis Ialso Ithe Iworld's I5th Ilargest Imedium I& Iheavy Icommercial Ivehicle
I producer.

Current scenario I

The Ievolvement Iof Ithe IIndian Iwhite-collar Iclass Ialong Ithe Idevelopment Iof Ithe Ieconomy Iover
I the Icouple Iof Iyears Ihas Idragged Iglobally Iin Iauto Imajors Ito Ithe IIndian Iautomobile Imarket.
I Also, IIndia Igives Iprepared Ilabour Iat Iserious Icosts Imaking IIndia Ia Isupported Iworldwide
I assembling Icentre Ipoint. IThe Iquality Iof Ithe IIndian Imarkets Ion Ione Ihand Iand Ithe Idecay Iof Ithe
I auto Ipart Iin Isectors Isuch Ias Ibusiness Isector, Ifor Iexample, IUS, IJapan Iand IEurope Ion Ithe Iother
I have Ibought Iabout Imoving Iof Inew Ilimits Iand Istream Iof Imoney Ito Ithe IIndian Icar Iindustry. IAs
I designated Iby Ithe IInternational IYearbook Iof IIndustrial IStatistics I2008 Idischarged Iby IUNIDO,
I India Iachieved Itwelfth Iposition Iin Ithe Irundown Iof Ithe Iworld's Imain I15 Iautomakers.

Indian OEMs Come of Age

I I I I

The IOEM I(Indian Ioriginal Iequipment Imanufacturers) Iare Idoing Itheir Iimprinting Itoday Iwith
I Tata Iand IMahindra Ias Idriving IIndian IOEMs Idevelopment Ion Ithe Iworldwide Imarket. IWith
I firm Icompetition Ifrom Ithe Iplayers Iworldwide, IIndian IOEMs Ihave Ialready Ioverhauled Itheir
I innovation Iand Iare Ifabricating Iprogressed Istructured Ivehicles. I
'Frugal IEngineering' Ihas Ibecome Ithe Imark Iof Ithe IIndian Icar Iindustry, Iwith IIndian IOEMs
I optimum Iutilizing Ithe IIndian Ilead Iin Icost-worthy Iand Ian Iexceptionally Iskilled Ihuman Iasset
I pool Ito Ilet Idown Ithe Iadvancement Icosts Iof Iitem. IAdding Ito Iit, Icapabilities Iof Itheir Iproviders
I have Iadditionally Iencouraged Ito Ilessen Iexpenses Iand Iassembling Itime. ITruth Ibe Itold,
I worldwide IOEMs Iare Icurrently Itaking Ia Igander Iat Iprofiting Iby Ithe IIndia Ileveraged Iby
I utilizing IIndian-based Iplan Iand Iimprovement Ifocuses. ITata IIndica, INano, Iand IMahindra's
I Scorpio Iare Icases Iof Iitems Idelivered Iby IIndian IOEMs Ito Imeticulous Istatistical Isurveying
I about Ithe Iparticular Ifulfilment Iof Ithe IIndian Ishopper.

Production
Inspite Ithe Ifact Ithat Ithe Idivision Iwas Istriked Iby Ifinancially Ilog Ijam, Igenerally Ispeaking
I creation I(passenger Ivehicles, Ibusiness Ivehicles, Imotorbikes Iand Ithree Iwheelers) Iexpanded
I from I10.84 Imillion Ivehicles Iin I2007-08 Ito I11.16 Imillion Ivehicles Iin I2008-09. ITraveller
I vehicles Iexpanded Iimperceptibly Ifrom I1.76 Imillion Ito I1.82 Imillion Iwhile Ibikes Iexpanded
I from I8.02 Imillion Ito I8.41million

5
In Irecent Itimes, IIndia Iis Iknown I Ias Ione Iof Ithe Ifavourite Iinvestment Idestinations Ifor Iautomotive
I manufacturers
 Volvo IBusses IIndia Iis Isearching Ifor I35% Idevelopment Iin Ithe Ihousehold Ideals Ithis Iyear
I at I550-650 Iunits Ias Iagainst I440 Iunits Isold Iin I2010
 Toyota IKirloskar Iengines IPvt Iltd I, Ithe IIndian Iauxiliary Iof IJapan's IToyota Iengine
I enterprise, Iis Iexpanding Iits Ispeculation Iby IUS$ I164.10 Imillion Iat Iits Iassembling
I destinations Iclose IBengaluru. ITo Ireach IUS I824$.40 Imillion Iby I2016.
 French Icarmaker, IRenault Ihas Itotally Irenovated Iits Iarrangements Ifor IIndia Ia Ipiece Iof
I another, Iforceful Iideology Ithat Iwill Isee Iit Icreating Ipassenger Ivehicles Iin Iits IChennai
I plant Iby I2011.
 Hyundai Imade IIndia Ias Iits Iworldwide Icentre Ifor Iassembling Ilittle Iamount Ivehicles. IIt
I put IUS$ I1Billion Iin Iits Isecond Iplant Iin IChennai Iin I2013. IMoreover, Iit Iis Iadditionally
I putting IUS$ I50 Imillion Iin Iits Iinnovative Iwork, Ifor I(R&D) Ioffice Iin IHyderabad.
 General Imotors Ihas Iinvested IUS$ I1 Ibillion Iinto IIts IIndian Ioperations.
 Mercedes IBenz Iwill Ibe Idoing Ian Iinvestment Iabout IUS$ I64.21 Imillion Iin Iits Iplant Iat
I Chakan Inear IPune.

Domestic market I

Arrangements of vehicles and passenger vehicles have been influenced taking into
I I I I I I I I I I

I account fiscal log jam far and wide. Regardless, ignoring that there was been a minor
I I I I I I I I I I I I I I

I addition in the amount of vehicles sold in 2008-10 when appeared differently in

I I I I I I I I I I I I

I relation to 2007-08. Hard and vast number of vehicles sold including voyager vehicles,
I I I I I I I I I I I I

I business vehicles, bicycles and three-wheelers in 2008-09 was 9.74 million as

I I I I I I I I I I

I tolerably stood out from 9.65 million of each 2007-10. According to an Ernst and
I I I I I I I I I I I I I

I Young assessment, arrangements of voyager vehicle in the country will create at a

I I I I I I I I I I I I

I CAGR of 12 per cent to show up at 3.76 million units by 2014 as against 1.90 million
I I I I I I I I I I I I I I I I I

I units close to the completion of 2008-09. While family unit promote is anticipated to
I I I I I I I I I I I I I

I contribute 2.76 million units to the full-scale tally, the preceding 1 million units would
I II I I I I I I I I I I I

I be contributing towards conveys. something different, as per checks by means of

I I I I I I I I I I I

I CARE Research. The association foresees that its supreme arrangements ought to be
I I I I I I I I I I I

I around 60,000-65,000 units during the current year, up from 55,300 vehicles sold in
I I I I I I I I I I I I

I 2008-09.

6
Exports
As Iindicated Iby Ithe ISIAM I(Society Iof IIndian IAutomobile IManufacturers), Icar Ideals I(counting
I passenger Ivehicles, Icommercial Ivehicles, Imotorbikes Iand Ithree-wheelers) Iin Ithe Iforeign
I markets Iexpanded Ito I1.63 Imillion Iunits Iin I2008-09 Ifrom I1.24 Imillion Iunits Iin I2007-08. IFare
I of Ipassenger Ivehicles Iexpanded Ifrom I218,411 Iof Ievery I2007-08 Ito I335,736 Iunits Iin I2008-09.
I The Idevelopment Iin Isend Iout Iwas Idriven Iby IHyundai IIndia, Itrailed Iby Iothers, Ifor Iinstance, I,
I Mahindra IRenault, I, IGeneral IMotors IIndia, IFiat IIndia IAutomobiles Iand IHonda I ICars IIndia.

Policy
So, Iin Imaking IIndia Ia Icapacity Ito Ideal Iwith Iin Ithe Icar Isegment Ithe Ilegislature Idrove Ithe IAMP
I (Automotive IMission IPlan) I2006-2016. IThe IAMPs Ivision Iis I"to Irise Ias Ithe Ipre-characterized
I goal Iof Idecision Ion Ithe Iplanet Ifor Istructure Iand Iproduction Iof Imotorcars Iand Iauto Iparts Iwith
I yield Iarriving Iat Ia Idegree Iof IUS$ I146 Ibillion Irepresenting Imore Ithan I10 I% Iof Ithe IGDP Iand
I giving I7 Iextra Iwork Ito I26 Imillion Iindividuals Iby I2016." Iaccording Ito Ithe IAMP, Iit Iis Ievaluated
I that Ithe Iwhole Iturnover Iof Ithe Ipassenger Icar Ibusiness Iin IIndia Iwould Ibe Iin Ithe Irequest Ifor IUS$
I 123 Ibillion-159 Ibillion Iout Iof I2016. IIt Iis Inormal Ithat Iin Igeneral Iterms, IIndia Iwould Ikeep Ion
I doing Ithe Imost Iof Iits Ifamous Isituation Iof Ibeing Ithe Ilargest Itractor Iand Ithree-wheeler
I manufacturers Iin Ithe Iworld Iand Ithe Iworld's Isecond Ibiggest Ibike Iproducer. IBy I2016, IIndia Iwill
I develop Ias Ithe Iworld's Iseventh Ilargest Ivehicle Imaker I(when Icontrasted Iwith Ithe Ieleventh
I largest Ias Iof Inow) Iand Icover Ithe Ifourth Ibiggest Isituation Iin Iworld Itruck Ifabricating Isegment.
I Further, Iby I2016, Ithe Icar Idivision Iwould I Idouble Ifold Iits Icommitment Ito Ithe Ination's IGDP
I from Icurrent Idegrees Iof I5% Ito I10 I%.

Automobile Industry analysis

I I

Indeed, Ieven Ias Idownturn Istrikes Iuniversal Icar Imajors Iare Ibattling Ito Ikeep Iup Ifeasible
I marketing Iprojections Ivehicle Isends Iout Ifrom IIndia Iflooded Iby Ian Iexceptional I57 Ipercent Iyear
I on Iyear Iin Ithe Ias Iof Ilate Ifinished ILed Iby IHyundai IIndia ILtd Iand IMaruti ISuzuki IIndia ILtd,
I India-based Ivehicle Icreators Idispatched Ia Inumber Iof Ivehicles, Iprevalently Ito IEurope. IFares
I developed Ito I331,536 Ivehicles Ifrom I211,114 Iper Iyear Ipreviously. IFares Ihad Ideveloped Iby Ia
I similarly Imeasure I8.8 Ipercent Iin Ithe Iearlier Iyear I(2007-08), Ias Iper Ifigures Iappeared Iby Ithe
I Society Iof IIndian IAutomobile IManufacturers. IThe Ination's Igreatest Iexporter, IHyundai Ifaced
I with Ia Ifare Idevelopment Ipace Iof I63 Ipercent Iat I235,346 Iunits, Icontrasted Iand I144,444 Iunits Iin

7
I the Iyear-back Iperiod. ILocal Imarket Ipioneer IMaruti ISuzuki Iwas Isecond, Ienrolling I32.68
I percent Idevelopment Iin Iforeign Ideals Iat I68,834 Iunits. IMaruti Iand IHyundai Idrove Inew Imodels
I in Ithe Iprevious Iyear, Icomprising IMaruti's IA-Star Iand IHyundai's Ii20, Idirected Iat Ithe IEuropean
I market, Iwhich Iis Ireferred Ito Ias Ione Ireason Ibehind Ithe Ivigorous Ifares. IThe Ishortcoming Iof Ithe
I rupee, Iwhich Ifell Iin Iexcess Iof I20 I% Iagainst Ithe Idollar Iin Ithe Isimply Ifinished Ifinancial Iyear,
I likewise Iencouraged Iby Imaking IIndian Ivehicles Imoderate Iin Iabroad. IFare Idevelopment Iwas
I additionally Iin Ivigorous Iin Ithe Ibike Iclassification, Iwhich Ienrolled I22.60 Ipercent Iascend Iat
I 1004,176 Iunits Ias Iagainst I819,613 Iunits Iin Ithe Ipast Imonetary Iyear. IBe Iit Imay, Iwith Ithe I
I economy Iworldwide Islugging, Irequest Ifrom IEurope Imay Inot Igo Iup, Iexaminers Isaid. IIn Ithe
I interim, Iloan Irates Iin IIndia Iare Iat Ialmost Ifive-year Ihigh Ias Ibanks, Istressing Iover Iawful Icredits
I placing Ithemselves Iinto Irisk, Ikeep Iaway Ifrom Ifinancing Ivehicle Ibuys.
"The Icrucial Iconcerns Iare Iavailability Iof Irecord, Iwhich Iconsolidates Iliquidity, Iand Ihigh Icredit
I costs. Icompetitors Ivehicle Ibargains Iin Ithe Iyear Icompleted I31 IMarch Icreated Iby Ian Iimmaterial
I 1.3 Ipercent Ifrom Ia Iyear Isooner Ito I1.21 Imillion Ivehicles Ifrom I1.2 Imillion Iin Ithe Iprior Iyear.
I contenders Ivehicle Ibargains Ihad Iclimbed I12 Ipercent Iin Ithe Ipast Imoney Irelated Iyear. IPrivate
I arrangements Iof Itrucks Iand Itransports Ifell I22 Ipercent Ito I384,122 Ivehicles Ifrom I490,494.
I Bicycle Ibargains Ibecame I1.2 Ipercent Ito I5.83 Imillion, Iwhile Ibicycles Iexpanded I9.1 Ipercent Iat
I 1.14 Imillion. IIndustry Iauthorities Iand Iexaminers Iexpect Imeasures Itaken Iby Igovernment
I experts Ito Igoad Icrediting Iwhile Ithe Iintroduction Iof Inew Imodels Icould Ito Isome Idegree Ibolster
I private Ivehicle Ibargains Ithis Iyear. Iordinary Ivehicle Ibargains Istayed Iin Ievery Iway Ithat Ireally
I matters Ilevel, Irecording Ian Iimmaterial I0.13 Ipercent Iadvancement Iover Ithe Iprevious Iyear.
I Inside Ithis Ipart, Ifinancial Ivehicles Iand Imulti-reason Ivehicles Icreated Iby Ijust I1.31 Ipercent Iand
I 5.69 Ipercent Iindependently Iduring I2008-09. IIn Iany Icase, Iarrangements Iof Iutility Ivehicles
I truly Ideclined I7.94 Ipercent. IDuring Ithe Iextended Ilength Iof IMarch Iitself, Ivehicle Ibargains Ifell
I 1.15 Ipercent Iover Ia Icomparable Iperiod Ia Iyear Iback. IThe Isegment Ithat Iwas Ihardest Ihit Iwas
I business Ivehicles, Iwith Itruck Iand Itransport Ibargains Idropping Ia Itremendous I21.69 Ipercent
I during I2008-09 Iover Ia Icomparable Iperiod Ia Iyear Iprior. IMedium Iand Isignificant Ibusiness
I vehicles Ideclined Iby I Ia Ilot Igreater I33.16 Ipercent, Iwhile Ithe Irot Iwas Iless Ioutrageous Ifor Ilight
I business Ivehicles, Iwhich Idropped I7.10 Ipercent. IIn IMarch I2009, Ibusiness Ivehicle Ibargains Ifell
I an Iextensive I26.22 Ipercent Istood Iout Ifrom IMarch I2008, Iwith Imedium Iand Ioverpowering ICVs
I dropping I43.40 Ipercent Iand ILCVs Ibasically Ifalling I0.17 Ipercent. IMoreover, Imedium Iand
I considerable Ivehicles Icreated Iby Ia Inegligible I0.57 Ipercent Iand Ilight Ivehicles Idropped I6.72
I percent. IThree-wheeler Ibargains Ifell Iby I4.13 Ipercent Iduring Ithe Ipast Ifiscal Iyear, Iwhile
I transporters Igrew Ia Isolid I14.36 Ipercent Iduring I2008-09. IItems Ibearers Ideclined Ia Igigantic

8
I 37.52 Ipercent Ion Iaccount Iof Ithe Ilog Ijam Iin Ifiscal Iactivity. IIn IMarch Ithis Iyear, Ithree-wheeler
I bargains Itruly Icreated Iby I11.40 Ipercent Iover Ithat Imonth Ia Iyear Iprior. IBicycle Ibargains Ialso
I went Iunder Igenuine Iload Iin Ithe Ilast Icash Irelated Iyear Ias Ia Iresult Iof Ithe Iunexpected Istoppage Iin
I crediting Ito Ithis Ibit Iby Ihuge Iprivate Istore Iassociations. IThis, Ijoined Iwith Iweak Ipurchaser
I feeling, Ihas Iseen Ithe Ipart Ireport Ia Ilittle I2.60 Ipercent Iadvancement Iduring I2008-09. IWhile
I mopeds Iand Ibicycles Icreated Iby I4.22 Ipercent Iand I9.11 Ipercent Iindependently, Ibicycle
I bargains Iwere Iparticularly Iseriously Ihit, Igrowing Iessentially I1.16 Ipercent. IElectric Ibicycles
I created Iby I49.48 Ipercent, Iyet Ifrom Ia Imodestly Imore Idiminutive Ibase. IDuring IMarch I2009,
I bicycle Ibargains Icreated Iat Ian Iapathetic I3.65 Ipercent Iover Ithat Imonth Ia Iyear Iprior, Iindicating
I that Ia Iproceeded Iwith Irecovery Iis Istill Isooner Ior Ilater Iaway. IToll Iof Ivehicles Iduring I2008-09
I grew Iimmovably, Ishowing Ian Iextension Iof I23.61 Ipercent, Iwith Iall Ipieces Irecording
I augmentations, Ibeside Ibusiness Ivehicles Iwhich Iwere Iaffected Iin Iview Iof Ithe Ioverall Imoney
I related Ilog Ijam. IThe Itoll Iof Ivehicles Iand Ibicycles Icreated I53.73 Ipercent Iand I22.50 Ipercent
I independently, Iwhile Ithree-wheeler Iexchanges Icreated I4.85 Ipercent. IIn Iany Icase, Ipassages Iof
I trucks Iand Itransports Ideclined Iby I27.67 Ipercent Iduring Ithis Iperiod. IAccording Ito ITata IMotors,
I its Iprivate Iarrangements Ifor IMarch I2009 Iwere I52,686 Iunits Iwhile Ihard Iand Ifast Iarrangements
I (checking Iexchanges) Iwere I54,485 Ivehicles. IFor Ithe Ientire Icash Irelated Iyear Icompleted IMarch
I 2009, Ihard Iand Ifast Iarrangements Iwere I498,581, Iwhich Iare I14 Ipercent Ilower Ithan Ithe I582,390
I units Isold Iin Ithe Ipast Imonetary. IThe Iassociation Iacknowledges Ithat Ithe Ibudgetary Ioverhaul
I groups Iannounced Iby Ithe Igoverning Ibody, Iparticularly Ifor Ibusiness Ivehicles, Ihave Ihad Ia
I beneficial Ioutcome. IRegardless, Iit Ifeels Ithat Ithe Ienthusiasm Ifor Itrucks Iat Ithe Iretail Ilevel Iwould
I regardless Iput Iaside Isome Ipush Ito Ishow Iup Iat Ilevels Ifrom Ithe Ilast Imoney Irelated. IAs Ineeds Ibe,
I its IMarch I2009 Ivehicle Ibargains Iwere I13 Ipercent Ilower Ithan Ithose Iof IMarch I2008.
I Meanwhile, IMahindra Isaid Iit Isold I25,748 Iunits Iin IMarch I2009 Iin Ithe Ivehicle Iadvertise, Iits
I most Iimportant Iever Imonth Ito Imonth Ishowcasing Iprojections. IThis Icomplexity Iand Ithe I23,128
I units Isold Iin IMarch I2008, Ia Isolid I30 Ipercent Idevelopment Iin Ibargains Ifor Ithe Iassociation's
I utility Ivehicles. IThis Ijoins Ithe Imost Icritical Iever Imonth Ito Imonth Ibargains Ifor Ithe IScorpio,
I Bolero Iand Ithe IPick-Up Imodels, Iwhich Istayed Iat I19,973 Iunits Ifor IMarch I2009 Ias Iagainst
I 15,366 Iunits Ifor Ia Icomparable Iperiod Ia Iyear Iback. IThe Ias Iof Ilate Imoved Ixylo Imulti-reason
I vehicle Iin Ilike Imanner Isold Ivehemently Iwith I3,124 Iunits Ifinding Ibuyers Iin Ithe IIndian Imarket.
I According Ito IAnand IMahindra, Inegative Ibehaviour Ipattern Iofficial Iand Imanaging Iboss,
I Mahindra Iand IMahindra IThe IBolero Imodel Ihas Ialso Idone Ivery Iwell Ifor Ithe Iassociation,
I selling Ia Irecord I55,924 Iunits Iin I2008-09. IAccording Ito IMahindra, Ithis Imakes Ithe IBolero Ithe
I chief Ibrand Iin Ithe ISUV/UV/MPV Isegments Ito Icross I50,000 Iunits Ifor Itwo Iceaseless Iyears.

9
I Hyundai IMotor IIndia Ienrolled Ia I1.8 Ipercent Idecline Iin Itotal Iarrangements Iduring IMarch I2009.
I While Iits I Ibargains Idropped I15.8 Ipercent, Iconveys Icreated Iby I21.6 Ipercent, Iby Ivirtue Iof Ihigher
I admissions Iof Ii10 Iand Ii20 Imodels Ito IEurope. IHard Iand Ifast IMarch I2009 Iarrangements Iwere
I 46,160 Iunits Iagainst I47,001 Iunits Iin IMarch I2008. IThe IIndian Imarket Ispoke Ito I24,754 Iunits
I appeared Idifferently Iin Irelation Ito I29,401 Iunits Ifor Ithat Imonth Ia Iyear Iback, Iwhile Ithe Icharges
I totalled I21,406 Iunits Iin IMarch I2009 Iagainst I17,600 Iunits Iof IMarch I2008. IAccording Ito
I Arvind ISaxena, Isenior IVP I- IMarketing Iand ISales, I"As Iwe Ihave Icommunicated Ipreviously, Ithe
I business Iis Ifar Ifrom Iseeing Ia Iturnaround Iat Ithe Ipresent Itime. IIf Iwe Ilook Iat Ithe IFebruary Iand
I March I2009 Iarrangements Ijoined Iand Ibalance Ithem Iwith I2008 Ifor Ia Icomparative Iperiod, Iby
I then Iwe Ihave Ienrolled Ian Iimprovement Iof I4.5 Ipercent, Iwhile IMarch I2009 Iarrangements Iover
I February I2009 Ihave Icreated Iby I16.7 Ipercent." IMaruti Iin Ilike Imanner Ideclared Ia Ibusiness
I record Iin IMarch I2009 Iwith Iits IAlto Imodel Ireporting Iits Imost Iessential Iever Imonth Ito Imonth
I arrangements Iof I23,569 Iunits, Ia Ijump Iof I20.98 Ipercent Iover Ithe Icontrasting Itime Ispan Ia Iyear
I back. IHonda Ihas Iin Ilike Imanner Iuncovered Istrong Inumbers, Iin Iview Iof Ithe Iamazing
I unmistakable Iquality Iof Iits INew ICity, Iwhich Isold I6,040 Iunits Iduring IMarch I2009. IThis Iis Ia
I particularly Iamazing Iachievement, Igiven Ithe Iinconvenient Imonetary Icircumstances
I succeeding Iright Inow. IHard Iand Ifast Iarrangements Ifor Ithe IJapanese Icarmaker Iduring Ithe
I month Igrew I32 Ipercent Iwith I7,368 Iunits Ibeing Isold Iin IMarch I2009 Iagainst I5,579 Iunits Isold Iin
I February I2009. ISIAM Ihas Iforeseen Ithat IIndian Ivehicle Ibargains Iduring I2009-10 Iwould Icreate
I around Ifive Ipercent, Idriven Iaccording Ito Ipopular Idemand Ifrom Icommonplace Iand Isemi-urban
I markets. IBusiness Ivehicle Ibargains Iare Iassessed Ito Iclimb Iby Ias Imuch Ias Iseven Ito I10 Ipercent
I during Ithe Icurrent Ifiscal, Iwhile Ibicycles Iare Irequired Ito Icreate Iby Ifive Ipercent Iin I2009-10, Iby
I virtue Iof Ithe Iadvancement Iin Icredit Iavailability. IAdvancement Iwell Iknown Ifor Ivehicles
I would, Ias Idemonstrated Iby ISIAM, Ibe Idriven Iby Ithe Iavailability Iof Ia Icouple Iof Inew Ilittle
I vehicles Iincluding Ithe ITata INano, IMaruti IRitz, IHonda IJazz Iand IVW IPolo. IVarious Ipositives
I for Ithe Idivision Iare Ithe Ibest Iin Iclass Ivehicle Irepossession Irules Ifrom Ithe IReserve IBank Iof
I India Iand Ifalling Icredit Icosts. IArrangements Iof Ibusiness Ivehicles Iwill Ifire Igetting Ithis Iyear, Iin
I view Iof Ithe Iincrease Iof Ithe I50 Ipercent Idegrading Ipreferred Iposition Igiven Ito Itruck Iowners
I from IMarch I'09 Ito IJune I'09. IExtended Iestablishment Ispending Iby Ithe Icouncil Ishould Iin Ilike
I manner Igive Ia Ilift Ito Ivehicle Idemand Iin I2009-10. IThe Iadvancement Iin Ilight Ibusiness Ivehicles
I like Ithe ITata IAce Iis Ifurthermore Iexpected Ito Icontinue. IA Icouple Iof Icarmakers, Iin Iany Icase,
I can't Iresist Inegating Ithese Iprojections Isaying Ithat Ithey Iare Iexorbitantly Ihopeful

10
 Chapter-3
Literature review I

Review of Literature
I I

Survey Iof Iwriting Istructures Ian Iindispensable Ijust Ias Ia Ibasic Ipiece Iof Icurrent Iresearch
I considers. INo Iexploration Iis Iviewed Ias Icomplete Iexcept Iif Ia Ibroad Iwriting Iaudit Iis Imade Iby

11
I the Ispecialist I. IThe Iessential Imotivation Ibehind Iendeavour Ithis Iactivity Iis Ito Idiscover Ithe
I exploration Ihole Ibetween, Iconsiders Iled Iup Iuntil Inow Ior Iwriting Iaccessible, Iand Ifurthermore
I to Iconclude, Idecisively Ithe Isubject Iof Iresearch Iand Ito Iget Iunderstanding Iinto Ithe Iexamination
I theme Ichose Ifor Istudy. IIn Ithis Isense Ithis Iactivity Iturns Iinto Ia Ikind Iof Iexploratory Iresearch I.

Keeping Ithese Ifacts Iin Iview Iresearcher Ihas Iundertaken Ian Iextensive Iexercise Iof Iliterature
I review Iand Icame Ito Ithe Iconclusion Ithough Isome Ibooks Iare Iaccessible Ion Ithe Itopics Irelated Ito
I the Iresearch Itopic Ichosen Iby Ithe Iresearcher, Ibut Iall Iof Ithese Ihave Ibeen Iwritten Iin Isome Iother
I outlook Iand Inone Iof Ithese Ihave Idirect Irelation Ito Ithe Itopic Iof Ithis Iresearch. IIn Ifact Iresearcher
I intended Ito Iexamine Ithe Isustainability Iof Ismall Icars Iin IIndian Iautomobile Isector, Iin Ithe Ilight
I of Inew Idevelopments Itaking Iplace Iin Ithe IIndian Iauto Isector Isuch Ias Iintroduction Iof Ibig Icars Iby
I number Iof Iauto Imanufacturers Iin IIndian Imarket Iin Ithe Irecent Ipast, Iincreased Iin Ipersonal Iand
I disposal Iincome, Ibetter Iand Iimproved Iroad Iconditions, Ishifting Iconsumers Ibehaviour Ifrom
I ‘To Isave Ito Iconsume’, Ieasy Ifinancing Iand Iloan Ifacility, Iinstalment Ifacility, Isymbol Ietc. IThese
I facts Ialso Ilead Ito Ithe Iquery Iwhether Ismall Icar Iwill Ibe Iable Ito Iwithstand Iin Ithe Imarket Iand Iwill
I it Ibe Ipreferred Ichoice Iof IIndian Icar Ibuyers. INone Iof Ithe Ibooks Iresearcher Igone Ithrough Ias
I been Iwritten Ifrom Ithis Iperspective. ISimilarly Ia Inumber Iof Iresearch Istudies Ihave Ibeen
I undertaken Ion Ithe Isubject Irelated Ito Ithe Iresearch Itopic, Isome Iof Ithese Ihave Ibeen Iconducted Ion
I the Isubject Irelated Ito Iresearch Itopic, Isome Iof Ithese Ihave Istudied Ithe Iconsumer Ior Ibuyer
I behaviour Iof Ithese Icars, Isome Iof Ithem Ihave Istudied Isome Iother Iaspects, Ilike Ienvironmental
I sustainability Ior Ieconomic Isustainability Ibut Inone Iof Ithem Ihave Istudied Ifrom Ithe Iangle,
I researcher Iintended Ito Istudy.

A Iclear Irecord Iof Ithe Iaudit Iof Iwriting Idone Iby Ithe Iscientist Iis Ibeing Iintroduced Ihere, Ithe Iplan
I to Imanufacture Ismall Ivehicles Ifor Ithe IIndian Imarket Iis Ias Iold Ias IIndia's Ifreedom. IAs Iof Inow,
I by Ithe Ilate I1950's, Ithe IIndian Igovernment Iset Iup Ia Icommission Iwith Ithe Iundertaking Ito Itake Ia
I decision Iat Ithe Ireason Iand Icosts Iof Iengine Ivehicles Icreated Iin Ithe Ination Iand Iwelcomed
I recommendations Ifor Ithe Icreation Iof Ian I''Economy Ivehicle''. IAccordingly, Ivarious Iproducers
I submitted Iproposition. IGoodbye, Ifor Iinstance, Ipresented Ia Iproposition Ifor Ithe Ipermit Icreated
I of Ia IDKW Ilight Ivehicle. IIn I1959, Iit Iwas Ihead Icar Iconstrained I(PAL) Ithat Iwas Ipermitted Ito Igo
I into Ijoint Ieffort Iwith Ithe Ifiat Iengine Iorganization Ifor Ithe Icreation Iof Ithe Ifiat I500 Iwhich Iwas
I later Isupplanted Iby Ifiat I1100 I(Mohanty Iet Ial I1994) Iwhile Ithere Iwere Iever Inot Imany
I commissions Iinvestigating Ithe Isubject Iof Imass-delivering Ithe Ilittle Ivehicles. IThere Iwas Ino
I genuine Iexertion Ito Iunderstand Ithe Iundertaking Ibefore Ithe I1980s I(Venkataramani-1990)

12
I contends Iin Ithis Iunique Isituation. IEvery Inow Iand Ithen Iadvisory Igroups Iselected Iby Ithe
I administration Iindicated Ito Icontemplate Ithe Iissue Iif Istarting Ithe Iassembling Iof Ithe Ilittle,
I conservative, I"Individuals' Ivehicle". IBe Ithat Ias Iit Imay, Ithe Iindustriousness Iof Icountry's Iin Ihigh
I government Ihovers Iand Iin Ithe Iarranging Icommission Ithat Ithe Itraveller Ivehicle Iwas Ian
I extravagance Ithing Ithat Itook Iinto Iaccount Ithe Inecessities Iof Ithe Ilittle Iarea Iof Ithe Ipopulace
I definitely Iadvanced Iinaction. I(Venkataramani, I1990: Ip. I12)

India's Iwholly Icreation Iof Ipassenger Ivehicles Iand IMUV's Irose Iduring Ithe I1950s Ito I1980s Ijust
I gradually Ito Iaround I40,000 Ivehicles Ievery Iyear. ILow Icreation Ivolumes Iand Isignificant
I expenses Iput Ipassenger Ivehicles Iproprietorship Iintentionally Ifar Ifrom Inormal Iwhite-collar
I class Ishoppers. IThe Istagnation Iwas Iabove Ito Iall Iidentified Iwith IIndi's Ipost-freedom Istate
I drove Ispeculation Isystem Ithat Isupported Icapital Imerchandise Icreation I(preferring Ibusiness
I vehicle Icreation Iand Itransports), Ilimiting Ibusiness Isector Irivalry Ithrough Ia Ipermitting
I framework Iand Iprotecting Iof Inational Ieconomy Iby Ia Iprotectionist Iexchange Iand IFDI Isystem.
I Consequently, Iwhen Ithe Iinterest Ifor Iinterest Ifor Ipassenger Ivehicles Iin Iany Ievent, Ifor Ia Ilittle Ica
I like Ithe IFiat I500/Padmini Iis Ilimited Iby Isevere Iprice Icontrols Iand Ihigh Iassessments, Ithe
I flexibly Iside Iis Isimilarly Iconfined Iby Ian Iauthorizing Iframework Iand Iprotectionism Ithat Icheck
I creation, Ihousehold Irivalry Iand Ibolting Iout IInternational Iplayers I(Becker-Ritterspatch Iand
I Becker-Ritterspatch,2008)

In Ithe Imid-1970s Imass Icreating Ia Ilittle Ivehicle Iwas Itaken Iup Ionce Imore. IIt Iwas ISanjay IGandhi,
I at Ithat Ipoint IPrime Ipriest IIndira IGandhi's Ichild Iwho Iresuscitated Idelivering Ia Ivehicle Ifor Ithe
I individuals. IOn Ithe Isixteenth Iof INovember I1970, ISanjay IGandhi Iestablished Ia Iprivate
I constrained Iorganization Inamed I'Maruti Ispecialized Iadministrations Iprivate Irestricted'. IThe
I expressed Icrucial Ithe Iendeavour Iwas Ithe Iadvancement Iof Ia I"people's Ivehicle"- IA Ireasonable,
I financially Isavvy, Ilow Iupkeep Iand Ieco-friendly Ivehicle Ifor IIndia's Iwhite-collar Iclass Ithat
I indigenously Iplanned Iand Idelivered. IFollowing ISanjay IGandhi's Idrive IPrime Iclergyman
I Indira IGandhi's Ibureau Iproposed Ithe Icreation Iof Ia Ipeople's Ivehicle Iand Ipassed Ia Iconsistent
I goal Ifor Iits Iturn Iof Ievents Iand Icreation. IDespite Ithe Ifact Ithat ISanjay IGandhi Ineither Ihad Iany
I related Iknowledge Iin Ivehicle Icreation Inor Ia Ireasonable Iplan Iproposition Ior Itie-ups Iwith
I another Iorganization, Ihe Iwas Igranted Ithe Iagreement Iand Ielite Icreation Ipermit
I (Venkataramani, I1990). ITo Ideliver Ithe Ivehicle Ia Isubsequent Iorganization Icalled I'Maruti
I restricted' Iwas Ifused Iin I1971 Iunder Ithe IIndian Iorganizations Iact Iunder Isupport Iof IIndira
I Gandhi's Iadministration Ithe Iorganization Igot Iland, Itax Icuts Iand Iassets I(Shirali, I1984, IShenoy,

13
I 2003) IHowever, Iregardless Iof Iall Iadministration Isponsorship Iand Ibacking, IMaruti-named
I after Ithe IHindu Idivine Iforce Iof Ithe Ibreezes Ididn't Itake Ioff. IThe Iyouthful Iorganization
I demonstrated Iunequipped Ifor Idelivering Ia Isolitary Iattractive Ivehicle. ISeparated Iof Ithe Iissue
I lay Iin Ithe Iinvolvement Iwith Ivehicle Icreation Iof Ithe INehru-Gandhi Irelatives Iwho Icontained Ithe
I organization's Iliquidation Iin I1977 I(Becker-Ritterspatch, I2007)

Gandhi Ito Irestore Iher Ifamily Iname, IIndira IGandhi Ihandled Ithe Iuncertain IMaruti Iissue. IIn Ithe
I long Irun Ithe IMaruti Ioutrage' Ifound Isome Iconclusion Iwhen Iin IOctober I1980 Ithe IGovernment
I of IIndia Itook Iover IMaruti Iconstrained Iand Iconsolidated Iit Iin IFebruary I1981 Iby Ia
I demonstration Iof Iparliament I(Maruti Irestricted Iobtaining Iand Imove Iof Iundertaking Igo Iabout)
I as Ian Iopen Iconstrained Iorganization. IRechristened IMaruti IUdyog Iltd, Ithe Iorganization Iwas
I fused Iunder Ithe Iarrangements Iof Ithe IIndian Iorganizations Iact, I1956 Iunderstanding Ithat Ithe
I organization Ijust Ias Ithe Ibusiness Iall Iin Iall Icould Ijust Iprevail Iwith Ioutside Iparticipation; Ioffers
I for Iremote Ijoint Ieffort Iwere Iwelcomed. IAlso, Ithe IIndian Igovernment Inot Ijust Ilooked Ito
I transform IMaruti Iinto Ian Iexample Iof Iovercoming Iadversity Ihowever Isought Iafter Ia Imore
I extensive Ipolitical Iplan Iwith Ithe Iundertaking Ithat Idrove Ithe Iquest Iand Ichoice Ifor Ia Iremote
I joint Iendeavour Iaccomplice.

According Ito IVenkataramani, Ithe Iproject Ireport Ifor Ithe IManufacture Iof Ipassenger Icars Iand
I light Iutility Ivehicles”, Idated I27th IMay I1982 Irevealed Ithat Iamong Ithe Imajor Igoals Iassociated
I with IMaruti Iwere

 Modernization Iof Ithe Iautomobile Iindustry Iof IIndia

 Production Iof Ifuel-efficient Ivehicles
 A Ilarge Ioutput Iof Imotor Ivehicles
 Import Iof Iforeign Itechnology Iand Iequity Iparticipation Iby Ithe Icollaborator
 Production Iof Ia Ipeople’s Icar Isuited Ito IIndian Idriving Iand Iclimate Iconditions
 Creating Ipotential Ifor Iearning Iforeign Iexchange Iby Iexport Iof IMaruti Iproducts Iand
 Generating Iemployment Ithrough Iestablishment Iof Iancillary Iindustries
I (Venkataramani, I1990:p. I65)
Inspite Iof Ithe Ifact Ithat Ithere Iwas Ia Iprevious Igoal Ito Icreate Ilight Ibusiness Ivehicles Iand Imedium
I measured Ivehicles, Idelivering Ian Ieco-friendly Ilittle Ivehicle Iwon. IIn I1981, IMaruti's Itop
I managerial Istaff Iconcluded Ithat Ithe Ivehicle Ito Ibe Ifabricated Iwould Ibe Ia Ilittle Ivehicle Iand Ithat
I the Imotor Isize Iought Ito Ibe Ikept Ibeneath Ione Iliter I(Venkataramani, I1990). IThe Ichoice Iwas

14
I propelled Iby Ithe Ijustification Ithat Ithe IMaruti Itask Icould Ipossibly Isucceed Iif Ilarge Iscale
I manufacturing Iwere Ifigured Iit Iout. IThis, Ithusly, Iwas Ifirmly Iconnected Ito Ithe Ivehicle's
I moderateness Iand Icost Iof Iactivity. IThe Ichoice Iwas Iadditionally Iupheld Iby Istatistical Isurveying
I discoveries Ias Irecorded Ibeneath.

While Ithe I1980s Isaw Ithe Irise Iof IIndia's Ilittle Ivehicle Iin Ideals Iand Icreation Iterms Iand Ijust
I because Ihigher Icreation Iof Itraveller Ivehicles Icontrasted Iwith Ibusiness Ivehicles, Iinquire Iabout
I and Ithe Iturn Iof Ievents I(R&D) Ifor Ilittle Ivehicles Iassumed Ia Iminor Ijob. IEssentially, Iall Iitem Iand
I creation Ifitness Ilay Iin Ithe Ihands Iof Ithe Iremote Iaccomplice ISuzuki. IFirst Iendeavours Ito Iset-up
I R&D Iin IMaruti, Itranscendently Ifocusing Ion Ia Iminor Iitem Iadjustment Ito Ineighbourhood Istreet
I and Iatmosphere Iconditions I(Mohanty Iet Ial, I1994). IBy Ia Isimilar Itoken, Icreation Iwas
I immovably Icentred Iaround Iresidential Iinterest. IAs Ithe Ifigure Iunderneath Ishows Iin Igeneral
I fares Istayed Iunimportant Iuntil Ithe I2000s

Change and continuity of India’s small car from the 1990s onwards:
I I I I I I I I I I

During Ithe I1990s Iand Ispecifically Iduring Ithe I2000s, IIndia's Ilittle Ivehicles Icontinued Ito Icreate
I and Ibecome Imore Igrounded. IWhile Iit Iwas Ias Iyet Ithe Ilocal Iinterest Istructure Ithat Icontinued Ithe
I little Ivehicles Iin Ideals Iand Iunderway Iterms, Ithe Irise Iof Ismall Ivehicle Ifares Iand IR&D Ifurther
I fortified Ithe Ismall Ivehicle Iadvertise. IAs Ithe Ismall Ivehicle Ishowcase Igrew Ifurther, Ithere Iwere
I changes Iin Ithe Ibusiness Isectors Isubjective Iand Iquantitative Iterms. IThese Iprogressions Iwere Ito
I a Igreat Iextent Isteered Iin IIndia's Imonetary Ichanges Ithat Ibegan Iin I1990's Iand Igotten Ianother Ilift
I in I2000's

A New Industrial Policy in 1990s

I I I I I

Following Ithe Ibalance Iof Ipayment Icrisis Iin Ithe Iearly I1990s, Ithe IIndian Igovernment Ilaunched
I stabilizing Imeasures Iand Iembarked Ion Ia Inew Iindustrial Ipolicy Iin I1991. IFirst Istabilizing I
I measures Iincluded Ithe Ireduction Iof Ithe Ifiscal Ideficit Iand Idevaluation Iof IIndian Irupee. IWhile
I the Istabilisation Imeasures Iaimed Iat Ishort Iterm Ialleviation Iof Ithe Ieconomic Icrisis, Ithe Ireform
I program Iaddressed Istructural Iproblem Iin Ithe IIndian Ieconomy Iwith Ithe Imore Ilong-term
I approach. Internally the reforms focused on shifting the economy from a state led
I I I I I I I I I I I I

I coordination and state led investment growth regime. This implied a massive de-
I I I I I I I I I I I

regulation of private sector controls and a step wise privatization of public sectors and
I I I I I I I I I I I I I

I their enterprises. Externally, the reforms aimed at liberalizing the trade regime
I I I I I I I I I I

15
I summarised by Kruger and Chinoy (2002) as follows: In the first two years of the
I I I I I I I I I I I I I I

I reforms, measures liberalizing the trade regime included-Economic reform and small
I I I I I I I I I

I car demand
I

The Iadvancement Iand IIndia's Inew Imodern Istrategy Inot Ijust Ilittle Iaffected Ithe Igracefully Iside
I for Icreating Ismall Ivehicles; Isimilarly, Isignificant Iwas Ithe Ieffect Ithe Iprogression Ihad Ion Ithe
I interest Iside Ifor Ithe Ilittle Ivehicles Iin IIndia.=.
In I2004/2005 Ithe Ideals Iof Itraveller Ivehicles Iand Imulti I- Iutility Ivehicles Icrossed Ijust Ibecause
I the Ione Imillion Iimprints I(Maruti IUdyog Irestricted, I2004). IIn I2004, IIndia Iwas Ia I"the Iquickest
I developing Ienormous Imarket Ifor Itraveller Ivehicles Ion Ithe Iplanet" I(the Ifinancial Iexpert Iinsight
I unit, I2006: Ip.40). IHowever, Iit Istayed Ia Ilittle Ivehicle Iadvertise. IThe Ifinancial Ispecialist Iinsight
I unit Iexpressed Iin Ithis Iunique Isituation: IIndia's Ivehicle Iadvertise Iis, Ianyway Istrikingly Ione
I dimensional: IThe Iscaled Idown Iand Iminimal Ivehicle Iportions Ijoined Irepresented I74.5%. IIt Iwas
I the Iexceptionally Ivalue Idelicate, Ilower Iadvertise Iportions, I(particularly Ithe Ilittle I(A1) Iand
I conservative I(A2) Ifragment Ithat Iprofited Ifirmly Ifrom Ithe Ichange Idriven Ifinancial
I development Iand Iespecially Ifinancial Iand Ifiscal Ichanges. IAdditionally, Ithe Ichange Iof Ithe
I financial Iframework, Ilow Iloan Ifees Iand Ithe Iproceeded Iwith Idecrease Iof Iextract Iobligation
I rendered Ivehicle Ifinancing Isimpler Iand Ianimated Isection Ilevel Iinterest

Eventually, Ithe Icar Ibusiness Iprofited Iall Iin Iall Ifrom Ithe Ifoundation Iventures, IGovernment
I endeavours Ito Ilessen Ineediness Iand Irustic Iturn Iof Ievents. IThe Imarket Ianalyst Iknowledge Iunit
I (2006) Inoticed Ithat Iinterests Iin Irural Ieffectiveness Ipreviously Iadded Ito Iexpanded Iinterest Iin
I country Izones. IIndia Istays Ion Ioverwhelmingly Iagrarian Iculture, Iso Iany Iactivity Ito Iraise Iranch
I salaries Iought Ito Iconvert Iinto Irising Ivehicle Ideals. IVehicle Ideals. IVehicle Imakers Iare Ias Iof
I now Iopening Imore Ibusinesses Iin Isemi-urban Izones Iand Icountry Ilocales Ito Itap Irising Iwages
I and Irequests, Iand Ithese Iterritories Icurrently Irepresents Ia Ideveloping Iportion Iof Iin Igeneral
I deals I(The Ifinancial Ispecialist Iinsight Iunit, I2006:p.39)
While Ithe Iprogression Iprompted Ia Igeneral Iopening Iup Iand Idivision Iof Icar Irequest Iin IIndia, Iit
I was Ithe Ilower Ifragments Ithat Iremained Ithe Imost Igrounded Irecipients Ifrom Ithe Ichanges Iand
I monetary Idevelopment. IRegardless Iof Ia Isolid Idevelopment Iof Ithe Iextravagance Isections
I (starting Ifrom Ian Iextremely Ilow Ilevel, Iin Iany Icases), IIndia's Isocial Istructure Iand Iexpendable
I salaries Irecommend Ithat Ithe Imarket Istayed Ito Ibe Ioverwhelmed Iby Ilower Iand Ilittle Ivehicle
I portions Iin Ithe Ithen Inot Iso Idistant I(e.g. ID'Costa I2005)

16
As Iper IIndia's Inational Icommittee Iof Iapplied Ifinancial Iresearch, Iin I2002 Ijust I6.1m Ifamily Iunits
I out Iof Ian Iaggregate Iof I176m Iwere Idelegated I'well-off Ior Iextremely Irich', Iand Iin Ithis Iway Iready
I to Ibear Ithe Icost Iof Icruisers Iand Ibikes, Iyet Inot Ivehicles. IA Ipart Iof Ithose Ihopeful Ishopper Ifamily
I units Iwill Ihave Ijust Imoved Iinto Ithe Iwell-to-do Iassemble Iduring Ithe Icurrent Ifinancial Iblast. IIn
I the Ievent Ithat Ilone I10% Iof Ithese I'wealthy' Ifamilies Ican Imove Ito Ithe Ifollowing Ilevel Iin Ithe
I following Ifive Iyears, Ithe Iquantity Iof Ivehicle Iclaiming Ifamilies Ican Imove Ito Ithe Ifollowing
I level Iin Ithe Ifollowing I5 Iyears, Ithe Iquantity Iof Ivehicle Ipossessing Ifamilies Icould Iascend Iby
I about I6m, Ialmost Imultiplying Icurrent Ilevels. IDespite Ithe Ifact Ithat Ithis Iauxiliary Imove Iappears
I to Ibe Iprominently Iattainable, Ifinancial Istuns, Ifor Iexample, Idry Ispell Ior Ia Imonetary Iemergency
I that Iprompts Ia Ilot Ihigher Iloan Icosts Icould Istem Iinterest Ifor Ia Iwhile. I(The Ifinancial Iexpert
I insight Iunit Ili Iited,2006: Ip.38). IThe Ifinancial Isupportability Iof Ithe Ilittle Ivehicle Ilays Imost
I importantly Ion Ithe Iidea Iof Ilocal Iinterest Iin Ithe Iyears Ito Icome. IThis Iinterest Isituation Iis
I comprised Ihowever IIndia's Imarket Ichange Iand Imonetary Idevelopment, Ithe Ipolitical Iwill Ito
I additionally Ibuild Iup Ithe Ilittle Ivehicle Ishowcase Ior Imore Iall Ithe Isocial Istructure Iand Ipay
I circumstance Ithat Imake Irequests Iat Ithe Ilower Iend

Likewise, Ithis Iessential Icondition Ithat Itempts Inew Iplayers Ito Ipresent Ilittle Ior Ilately Ismaller
I than Iexpected Ivehicles Iinto Ithe IIndian Imarket. ITake Ithese Iexamples Iare Ithe ITata Inano, Ibut
I then Ianother Ismaller Ithan Iusual Ivehicle, IRenault Iand IBaja Iare Iwanting Ito Ipresent Iin
I collaboration Iby I2011 I(e.g. ILamparter, I2008) IEspecially Ithe Iscaled Idown Ivehicle Iventures Iare
I probably Igoing Ito Isubstantially Iaffect Ithe IIndian Icar Isegment. IAs IBaig I(2008) Istates I"Effect
I on Ithe Iauto Iadvertise: IPriced Iat Iabout Ia Ilarge Iportion Iof Ithe Icost Iof Ithe Ileast Iexpensive IIndian
I vehicle Ihowever Imultiple Itimes Ithe Icost Iof Ia Inormal Ibike, Ithe ITata Inano Iwill Imake Ianother
I market Ispecialty. IIt Imight Isimply Iwind Iup Ipulling Iin Isome I5% Iof Ithe I7 Imillion Iyearly
I purchasers Iof Ithe Ibikes Iand Icharacterize Ianother Ipassage Ilevel Ifor Ivehicles. IIndian Ipurchased
I 1.2 Imillion Ivehicles Ia Iyears Iago Iand ITata Inano Iwill Imost Ilikely Iinclude Isome I300000-400000
I new Ipurchasers Ito Ithis. IGreater Ivehicles Ianyway Iare Iprobably Igoing Ito Istay Iunaffected Iand
I cruisers Iand Ibikes Iwill Ikeep Ion Iselling" I(Baig I2008: I9.2)

Acore Imethod Iof Ireasoning Iof Ithe Inew Iauto Istrategy Iis Ithat Ithe Iadvancement Iof Ithe IIndian
I automobike Iindustry I(underway Iand IR&D Iterms) Icritically Irelies Ion Ivolumes. IVolumes, Ithusly
I can Ipossibly, Imust Ibe Iacknowledged Iin IIndia Iif Ithe Ivehicles Icreated Iand Icreated Iare Iaffordabe Ifor
I Indian Ibuyers. IExplicit Imeasures Ito Idvelop Ithe Ilittle Iway Iincorporate Imonetary Iarrangements, Ifor
I example, Ilower Iextract Iobligations Ifor Ilittle Ivehicles. IDuring Ithe I2000s, Ithe IIndian Igovernment

17
I diminished Iextract Iobligation Ifor Ilittle Ivehicles Ito I8%, Idiverging Ifrom Ithe I16% Ifor Ithe Itraveler
I vehicles I(Ministry Iof Isubstantial Ibusinesses Iand Iopen Iundertakings, I2002) I
Hence, Inotwithstanding Inew Iaccentuations Iin IIndia's Ivehicle Istrategy, Iwe Isee Iover Iall Iprogression
I in Ithe Iobjective Iand Iinspiration Ifor Icultivating Ilittle Ivehicles. IAn Iold Iissue Iis Ithat Ilittle Ivehicles
I were Iviewed Ias Ia Isine Iqua Inon Ito Iacknowledge Ilarge Iscale Imanufacturing II IIndia. ILarge Iscale
I manufacturing, Iin Itirn Iis Iviewed Ias Ian Iessential Ifor Ithe Igrowth Iof Ithe IIndian Ivehicle Iindustry Iand
I its Icommitment Ito Ithe IIndian Ieconomy. IThe Iaccentuation Ion Ieco-friendly Ivehicles Iand Ifare
I ability Iare Iadditionally Iold Iarrangement Iissues Iand Imirror IIndia's Iproceeding Iwith Iequalization Iof
I installments Ichallenge. ISimultaneously, Ithe Iworry Ifor Iwellbeing, I Iis Inatural.

The emergence of India as well as Worldwide research and production hub of

I I I I I I I I I I I I

I small carsI

Financially, Ithe Ismall Ivehicle Iway Iin IIndia Ihas Iarrived Iat Ian Iaffordable Ilevel. IIn Ithe Ipast Ithis
I maintenance Iwas Ito Ia Igreat Iextent Idriven Iby Ithe Iidea Iof Ihousehold Irequest. IIn Iany Icase, Ithe
I Indian Igovernment Iimagines Ithis Iway Ibecoming Iconsiderably Imore Igrounded Iby
I transforming IIndia Iinto Ian Ioverall IR&D Iand Icreation Icentre. IThe Icar Icrucial Istates Iin Ithis
I setting I"Fare Iopen Idoors Ifor Ifour Iwheelers Iwould Ilie Iessentially Iin Ithe Ilittle Ivehicle Isection Ias
I Indian Iorganizations Ihave Ipicked Iup Iaptitude Iin Iassembling Ivehicles Iin Ithis Ifragment Ias
I Indian Iorganizations Ihave Ipicked Iup Iskill Iin Iassembling Ivehicles Iin Ithis Iportion Iand
I appreciate Ia Ipreferred Iposition Iover Iother Ilow Inations. IIndia Iought Ito Igain Iby Ithis Iability Iand
I target Iturning Iinto Ian Iassembling Icentre Ipoint Ifor IA/B Iclass Ivehicles. IThis Iis Ias Iof Inow Ibeing
I utilized IOEMs Ilike IHyundai Iwith ISantro, ISuzuki Iwith IMaruti I800/alto Iand ITata Iengines Iwith
I Indica" I(Ministry Iof Ioverwhelming Iventures Iand Iopen Iundertakings, I2006:p I13-14)

While Ithe Inational Icar Itesting Iand IR&D Iexecution Iventure I(NATRIP) Iis Iimagined Ito Iassume
I an Iorganizing Ijob, Ivarious Istates Ihave Iadditionally Itaken Iindividual Iactivities Ias Ito Igiving
I R&D Ioffices. IThe Ilegislature Iof IMaharashtra, Ifor Iinstance Ihas Iset Iup Iwhat Iit Icalls Ian I"Auto
I bunch" Igiving Itesting Ioffices Ito IOEM Iand Itheir Iproviders I(Interview IMCCI). IWhile Ithe
I political Iactivity Iis Ithere, Ithe Iinquiry Iis Ito Iwhat Iextent Ithe IIndian Ivehicle Iindustry Ireally
I moves Ipast Ibeing Ia Isimple Iinnovation Iadopter Iand Imaker Ifor Itheir Ilocal Imarkets Iregarding
I Exports, Ithe I2000s Ishow Ianother Ipattern Ipointing Itowards Irising Ifares Iin Ithe Itraveller Ivehicle
I part. IAdditionally, Ithe Ivast Imajority Iof Ithe Ivehicle Itrades Ido Iconcentrate Ion Ithe Ilower
I showcase Iportions Iwith IHyundai Ibeing Ithe Iprevailing Iexporter,

18
With Irespect Ito Ithe IR&D Ithere Iwas Ia Irising Ipattern Iof Iutilizing Iand Icreating Ineighbourhood
I capacity. IOn Isingle Ihand Ithere Iis Ia Igeneric Iimprovement Iof Iexpanding IR&D Iuse Iin Ithe IIndian
I vehicle Iindustry, Iwhich Iwas Iadditionally Ibeen Iinvigorated Ilately Iby Iincreasingly Isevere
I outflow Iguidelines I(Shastry, I2004). IThen Iagain, Ithere Iis Ian Iexpanding Ilittle Ivehicle IR&D
I centre Iamong Icertain Imakers, Iwho Itry Ito Iform IIndia Iinto Itheir Icorporate Icentre Ifor Ivehicle
I R&D. IA Ilegit Iexample Iis IMaruti-Suzuki Ithat Iis Iforming Ithe IIndian Iactivity Iinto Ia IR&D Icentre
I for Ilittle Ivehicles. ISo Ialso, ITata Ihas Iput Igenerously Iin Ilittle Ivehicle IR&D Ifocuses Iin IIndia
I (The Ifinancial Ispecialist Iknowledge Iunit Iconstrained, I2006). IThe ITata INano Iis Ipresumably Ithe
I latest Iand Iunmistakable Icase Iof IIndia's Irising Ineighbourhood IR&D Iability Iin Ithe Ilittle Ivehicle
I portion. IWhile ITata Ifirmly Idepends Ion Inearby Iaccomplices/providers I(a Ilarge Iportion Iof Ithe
I which Ihave Iworldwide Icontribution Ilike IBosch, IFreudenberg, IContinental, IJohnson

Challenges to the sustainability of the small cars in future

I I I I I I I I I

Looking Iat Ia Ihost Iof Ifactors Iincluding IIndia’s Idemographic Idevelopment(a Iyoung Iand Ifast
I increasing Ipopulation), Iupwards Isocial Imobility I(rising Iper Icapita Iincome Ifrom Ia Ilower Ilevel),
I low Ivehicle Idensity(8 Iper I1000 Iin I2004(Statistisches IBundesamt, I2006)), Irising Ioil Iprices,
I infrastructure Ibottlenecks Iand Ipollution Iproblems, Ia Ismall Icar Ipath Iseems Ito Ibe Ionly
I economically Ia Isustainable Ipath Ifor IIndia’s Ifuture Iauto-mobilization. IAt Ileast, Iit Iappears Ito Ibe
I the Imost Isustainable Ipath Iwithin Ithe Itraditional Iambit Iof Imass-motorization. IYet, Ithe Isame
I conditions Ithat Isuggest Ia Ismall Icar Ipath Ialso Ipose Ilimitations. IFor Iexample, Irising Ioil Iprices
I and IIndia’s Idependence Ion Ioil Ipose Ia Ithreat, Ias Ismall Icar Idemand Imay Ibe Imore Ivulnerable Iin
I the Iface Iof Ifinancial Icrisis Ithan Iother Isegments. IThis Isituation Imay Inot Ionly Iapply Ito Idomestic
I demands Ibut Ialso Ito Iexports. IAnother Ithreat Ito Ithe ISocio-economic Isustainability Iof Ithe Ismall
I car Ipath Iis Ithe Ipoor Iroad Iinfrastructure Iin IIndia(Haldea,2008).

19
 Chapter-4
Company profile I

Tata Motors Ltd

I I

Introduction
“A Ipromise Iis Ipromise Iand II Ikept Imy Ipromise”- Ithis Iis Ithe Ihistorical Istatement Iwhich IMr.
I RATAN ITATA Itold Iwhen Ihe Iinitiated Ihis Iambitious ITATA INANO Ithe Ipeople’s Icar Iin IIndia
I on I23rd IMarch I2009. ITata Ihas Ialways Ibeen Igiven Ivaluable Iproducts Ito Ithe IIndian ICar IMarket

20
I whether Iit Iis Ipath Ibreaking Irecently Ilaunched ITATA INANO Ior ITATA IINDICA I(which
I created Igreat Ibrand Iinto Ithe Icar Iindustry Iin Ithe Idiesel Isegment).

Not Iexclusively Iis Ithe Ipassenger Ivehicle, Ieven Iinto Ithe Igreater Ivehicle Iportion ITata Iis Ithe Imain
I single Ipioneer Iin IIndia. ITata Ihas Iaccomplished Iits Iimage Ipride Iin IIndia Ias Iwell Ias Iin Iabroad Iit
I has Imade Iits Iimage Iby Iobtaining IJaguar-Land IRover, ICorus ISteel Iduring I2007-08.
Tata, Ibeing Inamed Iamong Itop I10 Ibrand Icompanies Iby IFortune IMagazine Iin Ithe Iyear I2008. IIt
I has Ibeen Iinto Itop I100 Iorganizations Iin Ithe Ireview Iof IStandard Iand IPoor IMody's Iexamination
I in Ithe Iyear I2008. IBeing Iinto Imost Iimportant Ibrand Iin Iworld Ithe Ipurchaser Ifulfilment Ito Iits
I clients Iis Iextremely Ivital Ifor ITata's Iand Iconsequently Ithey Iare Icontinually Iworking Iinto Ithis
I zone Iwhere Itheir Igoal Iis Ito Iprovide Ibest Iitems Ifull Ivalue Ifor Itheir Iclients

The ITata IIndica IVista Ihas Ibeen Ione Iof Ithose Icars Iyou Ijust Ican't Iignore. IWhile Iit Igot Iwell
I known Ithe Iworld Iover, Ithe Iresponses, Ihowever Iblended, Istreamed Iwithout Iany Iproblem. IFrom
I one Iviewpoint Ithere Ihas Ibeen Ipride I"On Ithe Iplanet's Imedium Isize Ismall Ivehicle" Itag, Ias Ian
I incredible Iachievement Ifor IIndian Iindustry. IThe I"World's Imedium Isize Ilittle ICar" Itag Ihas
I been Inormally Iwelcomed Iwith Ithe Iexpectation Ithat Ia Iwhole Idifferent Iclassification Iof
I individuals Ican Ihope Ito Iown Ia Ivehicle Inow

History
Tata IMotors Iwas Iestablished Iin I1945, Ias Ia Ilocomotive Imanufacturer. ITata IGroup Ientered Ithe
I commercial Ivehicle Iarea Iin I1955 Iin Ithe Iwake Iof Iframing Ia Ijoint Iendeavour Iwith IDaimler-Benz
I of IGermany. IPursuing Iquite Ia Iwhile Iof Iruling Ithe Ibusiness Ivehicle Iadvertisements Iin IIndia,
I Tata IMotors Ientered Ithe Ipassenger Ivehicle Ishowcase Iin I1991 Iby Idriving Ithe ITata ISierra, Ia
I game Iutility Ivehicle Idependent Ion Ithe ITata IMobile Istage. ITata Ihence Ipropelled Ithe ITata IEstate
I (1992; Ia Istation Icart Iconfiguration Idependent Ion Ithe Iprior ITata IMobile), Ithe ITata ISumo I(1994,
I a I5-entryway ISUV) Iand Ithe ITata ISafari I(1998)
Tata Ilaunched Ithe IIndica Iin I1998, Icompletely Iindigenous IIndian Ipassenger Ivehicle. IAlbeit Iat
I first Itested Ivia Iauto Iexperts, Iits Ibrilliant Imileage, Iamazing Imotor, Iand Ia Iforceful Ishowcasing
I technique Imade Iit Iextraordinarily Icompared Ito Iother Iselling Ivehicles Ithroughout Ithe Ientire
I existence Iof Ithe IIndian Icar Iventures. IA Imore Iup Ito Idate Iform Iof Ithe Ivehicle, Inamed IIndica IV2,
I was Ia Isignificant Idevelopment Iover Ithe Ipast Iadaptation Iand Iimmediately Iturned Iinto Ia Imass
I top Ichoice. ITata IMotors Ieffectively Itraded Ienormous Iquantities Iof Ithe Ivehicle Ito ISouth IAfrica.
I The Iaccomplishment Iof Ithe IIndica Iassumed Ia Ikey Ijob Iin Ithe Idevelopment Iof ITata IMotors.

21
 In I2004, ITata IMotors Ibought IDaewoo's ISouth IKorea-based Itruck Iproducing Iunit,
I Daewoo ICommercial IVehicles ICompany, Ilater Irenamed ITata IDaewoo
 On I27 ISeptember I2004, IRatan ITata, Ithe IChairman Iof ITata IMotors, Irang Ithe Ibell Iat Ithe
I New IYork IStock IExchange Ito Imark Ithe Ilisting Iof ITata IMotors
 In I2005, ITata IMotors Iacquired Ia I21% Icontrolling Istake Iin Ithe ISpanish Itransport Iand
I mentor Iproducer IHispano ICarrocera. ITata IMotors Icontinued Iits Imarket Iregion
I extension Ithrough Ithe Ipresentation Iof Inew Iitems, Ifor Iexample, Itransports I(Starbus Iand
I Globus, Itogether Icreated Iwith Iauxiliary IHispano ICarrocera) Iand Itrucks I(Novus,
I mutually Icreated Iwith Iauxiliary ITata IDaewoo)
 IIn I2006, ITata Iframed Ia Ijoint Iendeavour Iwith Ithe IBrazil-based IMarcopolo, IBus, Ito
I produce Icompletely Iassembled Itransports Iand Imentors
 In I2008, ITata IMotors Iacquired Ithe IEnglish Icar Imaker IJaguar ILand IRover,
I manufacturer Iof Ithe IJaguar Iand ILand IRover Ifrom IFord IMotor ICompany.
 In IMay I2009, ITata Idisclosed Ithe ITata IWorld ITruck Iextend Itogether Icreated Iwith ITata
I Daewoo; Ithe Irange Iwent Imarked Idown Iin ISouth IKorea, ISouth IAfrica, Ithe ISAARC
I nations, Iand Ithe IMiddle IEast Itoward Ithe Ifinish Iof I2009
 In I2009, Iits ILucknow Iplant Iwas Iawarded Ithe I"Best Iof IAll" IRajiv IGandhi INational
I Quality IAward
 In I2010, ITata IMotors Iobtained I I80% Istake Iin Ithe IItalian Istructure Iand Ibuilding
I organization ITrilix Ifor I€1.85 Imillion. IThe Isecuring Iframed Ipiece Iof Ithe Iorganization's
I arrangement Ito Iupgrade Iits Istyling Iand Iplan Icapacities.
 In I2012, ITata IMotors Ireported Iit Iwould Iput Iaround I₹6 Ibillion Iin Ithe Iimprovement Iof
I Futuristic IInfantry ICombat IVehicles Iin Ia Ijoint Ieffort Iwith IDRDO
 In I2013, ITata IMotors Ireported Iit Iwill Isell Iin IIndia, Ithe Iprincipal Ivehicle Ion Ithe Iplanet
I to Irun Ion Icompacted Iair I(motors Istructured Iby Ithe IFrench Iorganization IMDI) Iand
I named I"Smaller Ithan Iexpected ICAT"
 In I2014, ITata IMotors Iintroduced Ifirst ITruck IRacing Ichampionship Iin IIndia I"T1 IPrima
I Truck IRacing IChampionship".
 On I26 IJanuary I2014, Ithe IManaging IDirector IKarl Ithin Iwas Idiscovered Idead. IHe
I tumbled Ifrom Ithe I22nd Ifloor Ito Ithe Ifourth Ifloor Iof Ithe IShangri-La IHotel Iin IBangkok,
I where Ihe Iwas Ito Igo Ito Ia Igathering Iof ITata IMotors IThailand.

22
  On I2 INovember I2015, ITata IMotors Ireported ILionel IMessi Ias Iworldwide Ibrand
I representative Iat INew IDelhi, Ito Iadvance Iand Iunderwrite Ipassenger Ivehicles Iall
I inclusive
 On I27 IDecember I2016, ITata IMotors Ideclared Ithe IBollywood Ion-screen Icharacter
I Akshay IKumar Ias Ibrand Iambassador Ifor Iits Ibusiness Ivehicles Irange
 On I8 IMarch I2017, ITata IMotors Ideclared Ithat Iit Ihas Imarked Ia Inotice Iof Icomprehension
I with IVolkswagen Ito Icreate Ivehicles Ifor IIndia's Ilocal Imarket.
 n I3 IMay I2018, ITata IMotors Ireported Ithat Iit Ioffered Iits Iaviation Iand Iprotection Ibusiness
I to Ianother ITata IGroup IEntity, ITata Ipropelled Iframeworks, Ito Iopen Itheir Imaximum
I capacity.
 On I29 IApril I2019, ITata IMotors Ideclared Ian Iorganization Iwith INirma IUniversity Iin
I Ahmadabad Ito Igive Ia IB ITech. Idegree Iprogram Ifor Iworkers Iof Iits ISanand Iplant.

Background
Tata IMotors IGroup I(Tata IMotors) Iis Ia I$45 Ibillion Ivalued Icompany. IIt Iis Ia Imain Iworldwide
I vehicle Imanufacturing Iorganization. IIts Iclassified Iportfolio Iincorporates Ia Ibroad Iscope Iof
I vehicles, Isports Iutility Ivehicles, Itrucks, Itransports Iand Iresistance Ivehicles. IGoodbye IMotors Iis

23
I one Iof IIndia's Ibiggest IOEMs Ioffering Ia Ibroad Iscope Iof Iincorporated, Ikeen Iand Ie-versatility
I arrangements

Some Iportion Iof Ithe IUSD100 IBillion ITata Ibundle Iset Iup Iby IJamsetji ITata Iin I1868, ITata Imotors
I is Iamong Ithe Iworld's Idriving Icreators Iof Ivehicles. IWe Ihave Iconfidence Iin I'partner Idesires', Iby
I offering Iimaginative Iadaptability Igame Iplans Ithat Iare Ias Iper Icustomers' Iobjectives. IWe Iare
I India's Igreatest Ivehicle Imaker, Iand Iwe Icontinue Ibeginning Ito Istand Iout Iin Iframing Ithe IIndian
I business Ivehicle Iscene, Iwith Ithe Iintroduction Iof Idriving Iedge Ipowertrains Iand Ielectric Icourses
I of Iaction Ipackaged Ifor Ipower Ipresentations Iand Icustomer Icomfort Ibased Iat Ithe Imost
I diminished Ilife-cycle Icosts. IOur Inew Ipassenger Ivehicles Iand Iutility Ivehicles Irely Iupon
I influence Istructure Iand Ioffer Ia Ipervasive Iblend Iof Iexecution, Idriveability Iand Isystem.
Our Iemphasis Ion Iinterfacing Idesires Iand Iour Ipipeline Iof Itech-empowered Iitems Ikeeps Ius Iat Ithe
I front-line Imarket. IWe Ihave Idistinguished Isix Ikey Iportability Idrivers Ithat Iwill Ireach Ius Iinto Ithe
I future-secluded Iengineering, Iintricacy Idecrease Iin IManufacturing, Iassociated Iand Iself-ruling
I vehicles, I, Ishared Iversatility Iand Ilow Iall Iout Iexpense Iof Ipossession, IOur Isub-image ITAMO Iis
I a Ibrooding Ifocus Iof Idevelopment Ithat Iwill Icommence Inew Iversatility Iarrangements Ithrough
I new Iadvancements, Iplan Iof Iaction Iand Iorganizations.

Mission
The IMission Iof ITata Imotors Iis Ito Isheerly Ipassionate Iin Ipredicting Iand Iproviding Ithe Ibest
I vehicles Iand Iexperiences Ithat Iexcite Itheir Iglobal Icustomers
To Istrive Itowards Imobility Isolutions Iwith Ipassion Ito Ifacilitate Ithe Iquality Iof Ilife

24
Vision
By I2024, IThe Ivison Iis Ito Ibecome Ithe Imost Iaspirational IIndian Iauto Ibrand, Iconsistently
I winning, Iby
 Delivering Isuperior Ifinancial Ireturns
 Driving Icustomer Iexpectations, Iand
 Exceeding Icustomer Iexpectations, Iand
 Creating Ia Ihighly Iengaged Iwork Iforce
 And Ito Ibe Ia Iworld Iclass Icorporate Iconstantly Ifurthering Ithe Iinterest Iof Iall Iits
I stakeholders
Values
 Integrity
 Accountability
 Excellence
 Teamwork
 Customer Ifocus
 Speed

Tata IMotors ISpecifications

Type Public IBSE:500570 I(NYSE:TTM)

Founded 1945
Founder JRD ITata
Headquarters Mumbai, IIndia

Key Ipeople Ratan ITata I(Chairman), INatarajan

I Chandrasekaran I(Chairperson), IGuenter
Butschek I(Managing Idirector)
I

Products Automobiles Iand Iengines

Revenue $43.7 Ibillion I(2019)
Net Iincome $1023 Imillion I(2018)
Parent Tata IGroup
Subsidiaries Jaguar Icars, ILand Irover, ITata IDaewoo
commercial Ivehicle
I

Website https://www.tatamotors.com

25
Tata Imotors Iobtain Isome Iunique Iadvantages Iin Icomparison Ito Iother IInternational Icompetitors.
I There Iis Iexact Icost Iadvantage Ias Ilabour Icost Iis I8-9% Iof Isales Ias Iagainst I30-35 Ipercent Iof Isales
I in Ideveloped Ieconomies. ITata Imotors Ihave Iextensive Ibackward Iand Iforward Ilinkages Iand Iit Iis
I strongly Iinterwoven Iwith Imachine Itools Iand Imetals Isectors, ITata Igroup’s Istrong Iexpertise Iin
I the IIT Ibased Iengineering Isolution Ifor Iproducts Iand Iprocess Iintegration Ihas Ihelped ITata
I motors. IIndia Iextensively Ihas Ilarge Iauto Icomponent Iindustry Inoted Ifor Iits Iworld Iclass
I competence. IThere Iis Ia Ihuge Idemand Iin Idomestic Imarkets Ibecause Iof Iinfrastructure
I developments Iand ITata Imotors Iis Iable Ito Ileverage Iits Iknowledge Iof IIndian Imarket. IThere Iare
I favourable Igovernment Ipolicies Iand Iregulations Ito Iboost Ithe Iauto Iindustry

Tata Motors Cars

I I

Tata Imotors Icars Iis Ia Idivision Iof ITata Imotors Iwhich Imanufactures Ipassenger Icars Iunder Ithe
I guidance Iof ITata Imotors Imarque. ITata Imotors Iis Iamong Ithe Itop I4 Ipassenger Ivehicle Ibrands Iin
I India Iwith Iproducts Iin Ithe Imidsize Icar, Icompact Iand Iutility Ivehicle Isegments. IThe Icompany’s
I manufacturing Ibase Iis Ispread Iacross IJamshedpur I(Jharkand), IPune I(Maharashtra), ILucknow I(,
I Pantnagar I, IDharwad Iand ISanand

(Gujarat). ITata's Idealership, Isales, Iservice, Iand Ispare Icomponents Inetwork Icontains Iover I3,600
I touch Ipoints. ITata IMotors Iowns Imore Ithan I250 Idealerships Iin Imore Ithan I195 Icities Iacross I27
I states Iand I4 IUnion ITerritories Iof IIndia. IIt Ihas Ithe I3rd Ilargest Isales Iand Iservice Inetwork Iafter
I Hyundai I& IMaruti ISuzuki.

Tata Ialso Ihas Ifranchisee/joint Iventure Iassembly Ioperations Iin IBangladesh, IKenya, IRussia,
I Ukraine, Iand ISenegal. ITata Ialso Ihas Idealerships Iin I26 Icountries Iacross I4 Icontinents. ITata Iis
I present Iin Imany Icountries, Iit Ihas Imanaged Ito Icreate Ia Ilarge Icustomer Ibase Iin Ithe IIndian
I Subcontinent, Ipredominantly IIndia, IBurma, IBangladesh, IBhutan Iand INepal. ITata Iis Ialso
I present Iin ISpain, IItaly, IRomania, ITurkey, IChile, ISouth IAfrica, I, IKuwait, IQatar, ISaudi IArabia,
I

I United IArab IEmirates, IBahrain, IIraq, ISyria Iand IAustralia.

Tata Daewoo
I

Tata IDaewoo I(authoritatively ITata IDaewoo ICommercial IVehicle ICompany Iand Ipreviously
I Daewoo ICommercial IVehicle ICompany) Iis Ia Ibusiness Ivehicle Iproducer Iheadquartered Iin
I Gunsan, IJeollabuk-do ISouth IKorea, Iand Ia Icompletely Iclaimed Iauxiliary Iof ITata IMotors. IIt Iis
I the Isecond-biggest Isubstantial Ibusiness Ivehicle Imaker Iin ISouth IKorea Iand Iwas Igained Iby ITata
I Motors Iin I2004. IThe Ichief Iexplanations Ifor Ithe Iobtaining Iwere Ito Idecrease ITata's Ireliance Ion

26
I the IIndian Ibusiness Ivehicle Ishowcase I(which Iwas Ianswerable Ifor Iaround I94% Iof Iits Ideals Iin
I the IMHCV Ifragment Iand Iaround I84% Iin Ithe Ilight Ibusiness Ivehicle Isection) Iand Iextend Iits
I item Iportfolio Iby Iutilizing Ion IDaewoo's Iqualities Iin Ithe Isubstantial Itonnage Isegment.

Tata IMotors Ihas Imutually Iworked Iwith ITata IDaewoo Ito Iproduce Itrucks, Ifor Iexample, INovus
I and IWorld ITruck Iand Itransports Iincluding IGlobus Iand IStarBus. IIn I2012, ITata Istarted Ibuilding
I up Ianother Iline Ito Imake Iserious Iand Ieco-friendly Ibusiness Ivehicles Ito Iconfront Ithe Iopposition
I presented Iby Ithe Isection Iof Iworldwide Ibrands, Ifor Iexample, IMercedes-Benz, IVolvo, Iand
I Navistar Iinto Ithe IIndian Imarket

Jaguar Land Rover

I I

Jaguar ILand IRover IPLC Iis Ia IBritish Ipremium Iautomaker Iheadquartered Iin IWhitley, ICoventry,
I United IKingdom, Iand Ihas Ibeen Ian Ientirely Iclaimed Iauxiliary Iof ITata IMotors Isince IJune I2008,
I when Iit Iwas Iobtained Ifrom IFord IMotor ICompany Iof IUSA. IIts Iforemost Iaction Iis Ithe Iturn Iof
I events, Iassembling Iand Ioffer Iof IJaguar Iextravagance Iand Isports Ivehicles Iand ILand IRover
I premium Ifour-wheel-drive Ivehicles.

Jaguar ILand IRover Ihas Itwo Istructure Ihabitats Iand Ithree Igathering Iplants Iin Ithe IUnited
I Kingdom. IUnder ITata Ipossession, IJaguar ILand IRover Ihas Ipropelled Inew Ivehicles Iincluding
I the IRange IRover IEvoque, IJaguar IF-Type, Ithe IJaguar IXE, Ithe IJaguar IXJ I(X351), Ithe
I subsequent Iage IRange IRover ISport, Iand IJaguar IXF, Ithe Ifourth-age ILand IRover IDiscovery,
I Range IRover IVelar Iand Ithe IRange IRover I(L405).

JD IPower, Iof Ithe IUS, Irates ILand IRover Iand IJaguar Ias Ithe Itwo Imore Iawful Ibrands Ifor Istarting
I quality. IThe IJaguar IF-Pace Imade IConsumer IReports IFebruary I2019 Irundown Iof Ithe I10 ILeast
I Reliable ICars. IThe Ieditors Irefereed Ito I"gadgets, Idrive Iframework, Ipower Ihardware,
I commotions Iand Ibreaks" Ias Itricky Iangles.

The IJaguar ILand IRover Isubsidiary Iwas Ibattling Iby I2019 Iand ITata IMotors Irecorded Iits Iinterest
I in IJLR Iby I$3.9 Ibillion. IA Isignificant Ipart Iof Ithe Ibudgetary Iissue Iwas Ibecause Iof Ia Ihalf Idrop Iin
I deals Iin IChina Iduring I2019, Iin Ispite Iof Ithe Ifact Ithat Ithe Icircumstance Iwas Iimproving. IAll
I things Iconsidered, ITata Iwas Iavailable Ito Iconsidering Ian Iorganization Iwith Ianother
I organization Ias Iindicated Iby Ian Iannouncement Iin Imid-October, Ias Ilong Ias Ithe Iassociation
I understanding Iwould Ipermit ITata Ito Ikeep Iup Icontrol Iof Ithe Ibusiness. IThe Iorganization
I precluded Ithe Ichance Iof Ian Ioffer Iof IJLR Ito Ianother Ielement

27
TML DrivelinesI

TML IDrivelines ILtd. Iis Ia Icompletely Iclaimed Isubsidiary Iof ITata IMotors Ioccupied Iwith Ithe
I assembling Iof Igearboxes Iand Iaxles Ifor Isubstantial Iand Imedium Ibusiness Ivehicles. IIt Ihas
I creation Ioffices Iat IJamshedpur Iand ILucknow. ITML IForge Idivision Iis Iadditionally Ian Iongoing
I securing Iof ITML IDrivelines. ITML IDrivelines Iwas Iframed Ithrough Ithe Imerger Iof IHV
I Transmission Iand IHV IAxles

Tata Technologies
I

Tata ITechnologies ILimited I(TTL) Iis Ia I43%-possessed Iauxiliary Iof ITata IMotors Iwhich Igives
I configuration, Ibuilding, Iand Ibusiness Iprocess Ire-appropriating Iadministrations Ito Ithe Icar
I business. IIt Iis Iheadquartered Iin IPune's IHinjewadi Ibusiness Iregion Iand Ifurthermore Ihas
I activity Iin ILondon, IDetroit Iand IThailand. IIts Icustomers Iincorporate IFord, IGeneral IMotors,
I Honda, Iand IToyota.

The IBritish Ibuilding Iand Iconfiguration Iadministrations Iorganization IIncat IInternational, Iwhich
I spends Isignificant Itime Iin Ibuilding Iand Iconfiguration Iadministrations Iand Iitem Ilifecycle Ithe
I executives Iin Ithe Icar, Iaviation, Iand Idesigning Idivisions, Iis Ian Ientirely Ipossessed Iauxiliary Iof
I TTL. IIt Iwas Igained Iby ITTL Iin IAugust I2005 Ifor I₹4 Ibillion. IIn I2017, ITAL, Ian Iauxiliary Iof ITata
I Motors, Imade IIndia's Ifirst Imechanical Iverbalized Irobot Ifor Ismaller Iscale, Ilittle, Iand Imedium
I ventures

Joint VenturesI

Tata IMarcopolo

Tata IMarcopolo Iis Ia Itransport Iproducing Ijoint Iendeavour Ibetween ITata IMotors I(51%) Iand Ithe
I Brazil-based IMarcopolo IS.A. I(49%). IThe Ijoint Iendeavour Iproduces Iand Icollects Icompletely
I manufactured Itransports Iand Imentors Ifocused Iat Icreating Imass Ifast Itransportation
I frameworks. IIt Iutilizes Iinnovation Iand Iskill Iin Ibody Iand Itotals Ifrom ITata IMotors, Iand
I expertise Iin Iprocedures Iand Iframeworks Ifor Iweight Itraining Iand Itransport Ibody Iplan Ifrom
I Marcopolo. ITata IMarcopolo Ihas Ipropelled Ia Ilow-floor Icity Itransport Iwhich Iis Igenerally

28
I utilized Iby Itransport Ienterprises Iin Inumerous IIndian Iurban Iareas. IIts Iassembling Ioffice Iis
I situated Iin IDharwad, IKarnataka IState, IIndia

Fiat-Tata

Fiat-Tata Iis Ian IIndia-based Ijoint Iendeavour Iamong ITata Iand IFiat IAutomobiles Iwhich Iproduces
I Fiat Iand ITata Imarked Itraveller Ivehicles, Ijust Ias Imotors Iand Itransmissions. ITata IMotors Ihas
I accessed IFiat's Idiesel Imotor Iand Itransmission Iinnovation Ithrough Ithe Ijoint Iendeavour. I

The Itwo Iorganizations Isome Itime Iago Iadditionally Ihad Ia Idispersion Ijoint Iendeavour Ithrough
I which IFiat Iitems Iwere Isold Iin IIndia Ithrough Ijoint ITata-Fiat Ibusinesses. IThis Idissemination
I course Iof Iaction Iwas Ifinished Iin IMarch I2013; IFiats Ihave Isince Ibeen Idispersed Iin IIndia Iby IFiat
I Automobiles IIndia ILimited, Ian Ientirely Iclaimed Iauxiliary Iof IFiat.

Tata IHitachi IConstruction IMachinery

Tata IHitachi IConstruction IMachinery Iis Ia Ijoint Iventure Ibetween ITata IMotors Iand IHitachi
I which Iproduces Iexcavators Iand Iother Iconstruction Iequipment. IIt Iwas Iformerly Iknown Ias
I Telcon IConstruction ISolutions.

Tata IMotors IEuropean ITechnical ICentre

The ITATA IMotors IEuropean ITechnical ICentre Iis Ia Icar Iconfiguration, Idesigning, Iand Ithink-
tank. IOrganization Ibased Iat IWarwick IManufacturing IGroup I(WMG) Ion Ithe Igrounds Iof Ithe
I University Iof IWarwick Iin IGreat IBritain. IIt Iwas Iset Iup Iin I2005 Iand Iis Ientirely Iclaimed
I auxiliary Iof ITata IMotors. IIt Iwas Ithe Ijoint Iengineer Iof Ithe IWorld ITruck. IIn ISeptember I2013 Iit
I was Ideclared Ithat Ianother INational IAutomotive IInnovative ICampus Iwould Ibe Iworked Iat
I WMG Iat IWarwick's Ifundamental Igrounds Iat Ian Iexpense Iof I100 Imillion Ipounds. IThe Iactivity
I will Ibe Ian Iorganization Ibetween ITata IMotors, Ithe IUniversity, Iand IJaguar ILand IRover, Iwith
I the I30 Imillion Ipounds Iin Isubsidizing Ioriginating Ifrom ITata IMotors.

Products
Cars and Sport utility vehicles
I I I I

 Tata ISumo I

29
  Tata ISierra I(Discontinued)

 Tata ISumo IGrande

 Tata ISafari

 Tata IIndica

 Tata IIndigo

 Tata IManza

 Tata IIndigo IMarina

 Tata IWinger

 Tata IMagic

 Tata INano

 Tata IAria

 Tata IIris

 Tata ITiago

 Tata IAltroz

 Tata ITigor

 Tata IHexon

Commercial vehicles
I

 Tata Ace I

 Tata Super Ace

I I

 Tata TL/ Telcoline / 207 DI Pickup truck

I I I I I I I

 Tata 407 Ex and Ex2

I I I I

 Tata 809 Ex and Ex2

I I I I

 Tata 1618 (Semi low floor bus chassis)

I I I I I I

 Tata 1623 (Rear engine low floor bus chassis)

I I I I I I I

 Tata 1518C (Medium truck)

I I I

 Tata Starbus (branded buses for city, intercity, school bus and standard passenger
I I I I I I I I I I I

I transportation)

30
  Tata Divo (Fully built luxury coach)
I I I I I

 Tata City-ride (12-20-seater buses for intra-city use)

I I I I I I

 Tata 3015 (Heavy truck)

I I I

 Tata 3118 (Heavy truck) (8x2)

I I I I

 Tata 3516 (Heavy truck)

I I I

 Tata 4018 (Heavy truck)

I I I

 Tata 4923 (Ultra heavy truck) (6x4)

I I I I I

 Tata Novus (Heavy truck designed by Tata Daewoo)

I I I I I I I

 Tata Prima (The world truck designed by Tata Motors and Tata Daewoo)
I I I I I I I I I I I

Military vehicles
I

 Tata ILSV I(Light Ispecialist Ivehicle)

 Tata IMine Iprotected Ivehicle I(4x4)

 Tata IStretcher IAmbulance

 Tata I407 Itroop Icarrier, Iavailable Iin Ihard Itop, Isoft Itop, I4x4, Iand I4x2 Iversions)

 Tata ILPTA I713 ITC I(4x4)

 Tata ILPT I709 IE

 Tata ISD I1015 ITC I(4x4)

 Tata I1615 ITC I(6x6)

Concept vehicles
I

 Tata Aria Roadster

I I

 Tata Aria coupe

I I

 Tata Indiva I

 Tata Indigo Advent

I I

 Tata IXover

 Tata ICliffrider

31
  Tata IElegante

 Tata IPrima

 Tata IVersa

 Tata IEssota

 Tata IPixel

Electric vehicles
I

Tata IMotors Ihas Iuncovered Ielectric Ivariants Iof Ithe ITata IIndica Ipassenger Ivehicle Icontrolled
I by ITM4 Ielectric Iengines Iand Iinverters,[54] Ijust Ias Ithe ITata IAce Ibusiness Ivehicle, Ithe Itwo Iof
I which Irun Ion Ilithium Ibatteries.

In I2008 ITata IMotors' IUK Iauxiliary, ITata IMotors IEuropean ITechnical ICentre, Ipurchased Ia
I 50.3% Iholding Iin Ielectric Ivehicle Iinnovation Ifirm IMiljøbil IGrenland/Innovation Iof INorway
I for IUS$1.93 Imillion, Iand Iintended Ito Idispatch Ithe Ielectric IIndica Ihatchback Iin IEurope Ithe
I accompanying Iyear.[55][56][57] IIn ISeptember I2010, ITata IMotors Iintroduced Ifour ICNG–
Electric IHybrid Ilow-stunned IStarbuses Ito Ithe IDelhi ITransport ICorporation, Ito Ibe Iutilized
I during Ithe I2010 ICommonwealth IGames. IThese Iwere Ithe Iprimary Iearth Iamicable Itransports Ito
I be Iutilized Ifor Iopen Itransportation Iin IIndia

Notable vehicles
I

Tata INano

The INano Iwas Ipropelled Iin I2009 Ias Ia Icity Ivehicle Iproposed Ito Iadvance Ias Ia Imoderate Ioption
I in Icontrast Ito Ithe Iarea Iof Ithe IIndian Imasses Ithat Iis Iessentially Ithe Iproprietor Iof Icruisers Iand
I has Inot Ipurchased Itheir Ifirst Ivehicle. IAt Ifirst Ivalued Iat I₹100,000 I(US$1,500), Ithe Ivehicle
I pulled Iin Ia Igreat Ideal Iof Iconsideration Iat Iits Igenerally Iminimal Ieffort. IIn I2018, ICyrus IMistry,
I executive Iof Ithe ITata IGroup, Icalled Ithe ITata INano Ia Ibombed Iventure, Iwith Icreation Ifinishing
I off Iwith IMay I2018

Tata IAce

Tata IAce, IIndia's Ifirst Iindigenously Ideveloped Isub-one-ton Iminitruck, Iwas Ilaunched Iin IMay
I 2005. IThe Iminitruck Iwas Ia Ihuge Isuccess Iin IIndia Iwith Iauto Ianalysts Iclaiming Ithat IAce Ihad

32
I changed Ithe Idynamics Iof Ithe Ilight Icommercial Ivehicle I(LCV) Imarket Iin Ithe Icountry Iby
I creating Ia Inew Imarket Isegment Itermed Ithe Ismall Icommercial Ivehicle Isegment. IAce Irapidly
I emerged Ias Ithe Ifirst Ichoice Ifor Itransporters Iand Isingle Itruck Iowners Ifor Icity Iand Irural
I transport. IBy IOctober I2005, ILCV Isales Iof ITata IMotors Ihad Igrown Iby I36.6% Ito I28,537 Iunits
I due Ito Ithe Irising Idemand Ifor IAce. IThe IAce Iwas Ibuilt Iwith Ia Iload Ibody Iproduced Iby IAutoline
I Industries. IBy I2005, IAutoline Iwas Iproducing I300 Iload Ibodies Iper Iday Ifor ITata IMotors.

Ace Ihas Iadditionally Ibeen Isent Iout Ito Ia Ifew IAsian, IEuropean, ISouth IAmerican, Iand IAfrican
I nations Iand Ievery Isingle Ielectric Imodel Iare Isold Ithrough IPolaris IIndustries' IGlobal IElectric
I Motorcars Idivision. IIn ISri ILanka, Iit Iis Isold Ithrough IDiesel Iand IMotor IEngineering I(DIMO)
I PLC Iunder Ithe Iname Iof IDIMO IBatta.

Tata I407

The ITata I407 Iis Ia Ilight Ibusiness Ivehicle I(LCV) Ithat Ihas Isold Imore Ithan I500,000 Iunits Isince Iits
I dispatch Iin I1986. IIn IIndia, Ithis Ivehicle Iaffirms Ipredominance Iof Ipiece Iof Ithe Ioverall Iindustry
I of Ithe ILCV Iclass, Irepresenting Inear I75% Iof ILCV Ideals.

Tata IPrima

Tata IPrima Iis Ia Iscope Iof Ioverwhelming Itrucks Iinitially Ipresented Iin I2008 Ias Ithe Iorganization's
I 'worldwide' Itruck. ITata IPrima Iwas Ithe Ichamp Iof Ithe I'Business IVehicle Iof Ithe IYear' Iat Ithe
I Apollo ICommercial IVehicles IAwards, I2010 Iand I2012.

Tata IHarrier

Tata IHarrier Iis Ia I5-seater ISUV Iset Ito Imatch Ithe IHyundai ICreta Iand IJeep ICompass. IIt Iis Igotten
I from Ithe IH5X IConcept Ishowed Iat Ithe I2018 IAuto IExpo. IIt Iwas Ipropelled Ion I23 IJanuary I2019.

International Marketing I

On the off chance that the sending out offices are getting effective yet the expenses of
I I I I I I I I I I I I I I I

I working together from base camp in addition to time contrasts, language obstructions,
I I I I I I I I I I I

I and social numbness are impeding the organization's seriousness int the remote
I I I I I I I I I I

I market, at that point workplaces could be worked in the outside nations. Here and there
I I I I I I I I I I I I I I

I organizations purchase firms in the remote nations to exploit connections, retail

I I I I I I I I I I

I facades, industrial facilities and work force as of now in the spot. These workplaces
I I I I I I I I I I I I I

I despite everything report to base camp in the home market yet a large portion of the
I I I I I I I I I I I I I I I

I showcasing blend choices are made in the individual nations since that staff is the most
I I I I I I I I I I I I I I

33
I proficient about the objective markets. Neighbourhood item improvement depends on
I I I I I I I I I

I the necessities of nearby clients.

I I I I

Marketing & Strategic Analysis of Tata Motors

I I I I I I

We Ipresent Ithe Ivital Iinvestigation Iof ITata IMotors Iutilizing ISWOT Iexamination, IPorter's
I Model Iof ICompetitive IAdvantages, IPorter's IFive IForces IModel Iof Iseriousness Iand IAnsoff
I Matrix. I

SWOT IAnalysis Iwas Ideliberately Idisplayed Iby IAnsoff I(1980) Ito Iconcentrate Ion Itwo Isorts Iof
I prioritization I– IHigh Iprioritization Iof Ichances Iand IHigh Iprioritization Iof Ibuilding Inew Iskills. IAt
I the Ipoint Iwhen I"openings" Iare Iorganized, Ithe Iassociations Iwill Iin Igeneral Icreate Iitems Ithat Ihave
I levels Iof Ipopularity Iin Ithe Ibusiness Isectors Iand Iwhen I"advancement Iof Inew Iskills" Iis Iorganized
I then Iassociations Idon't Itake Ia Igander Iat Ithe Ipresent Iopen Idoors Iin Iexpectation Ithat Ithe Inew
I abilities Iwill Igrow Inew Iopen Idoors Ifor Ithem

It Iis Ihard Ito Ianticipate Iwhich Ione Iworks Ibetter I– Ithey Imay Iyield Ivarious Ioutcomes Ifor Ivarious
I associations. IIf Ithere Ishould Ibe Ian Ioccurrence Iof IFord IMotor ICompany Iand ITata IMotors Ithere
I is Iby Iall Iaccounts Ia Icentral Idistinction Iin Iprioritization I– IFord IMotor ICompany Ihave
I concentrated Ion Iprioritization Iof Icreating Iabilities Iand Imade Iforceful Istrides Ifor Ithe Iequivalent
I fully Iexpecting Icreating Iopenings Ithough ITata IMotors Ihave Iconcentrated Ion Iprioritization Iof
I benefiting Iopenings Iand Icreated Icapabilities Ito Iprofit Ithem Ias Iquick Ias Icould Ireasonably Ibe
I expected

SWOT Analysis for Tata motors

I I I I

Having I presented I the I SWOT I analysis I of I Ford I Motor I Company, I we I now I analyse I the
I SWOT I framework I of I Tata I Motors. I As I mentioned I above, I Tata I Motors I prioritizes
I opportunities Iand I builds I their I competencies I around I them. I Their I announcement I of I Tata
I Nano I is I an I excellent Iexample Iwhere Ithey Ihave Ilaunched Ithe Imodel Iand Iopened Ibookings
I much Iahead Iof Ibuilding Itheir Imanufacturing Icompetencies Ito Imeet Ithe Idemand I not Icaring
I about Ithe Iissue Ithat Ithey Iwill I end Iup Iaccumulating Ia Ihuge Ibacklog Iof Icustomer Iorders
I [Brown, IRobin I(2009)].

34
 Strengths
1) IExcellent Ibrand Iequity Iand Istrengths Iin
I Indian IMarket
2) ILegacy I and I Dignity I of I Tata I brand
I heritage I which I is I almost I as I old I as
I Ford I Motor ICompany
3) ISound Iglobal Irecognition Iin Ilight
I trucks Iand Ibuses
4) ISound Ipresence Iin IAsian IMarkets
5) IOwnership Iof Ithe Iheritage Iof IBritish
I motor Ibrands I– ILand IRover Iand IJaguar
6) IStrategic I tie I up I with I Mercedes I Benz
I which I is I one I of I the I hottest I cars I in
I premium I car Imarket Isegment Iin IIndia
7) IDiversification Istrengths Idue Ito Iother
I large Ibusinesses Iof ITata IGroup
Opportunities
1) IGain I control I over I UK I and I Europe
I markets I by Ire-enforcing Ithe I heritage I of
I Jaguar I and ILand IRover
2) IDeep I roots I of I British I style
I manufacturing I processes I given I their
I own I heritage I of I the IBritish Irule Iin IIndia
I – Ican Ihelp Ithem Ido Ibetter Iwith IJaguar Iand
I Land IRover
3) IDevelop I more I joint I ventures I like
Weakness
1) IUnder Iperformance Iin I US, I UK I and
I European I car I markets I (although I done
I reasonably Iwell I in I light I trucks I and I buses).
2) IUnable I to I handle I the I global I markets I of
I Land I Rover I and IJaguar Idue Ito Ilack Iof
preparation
I
3) IWeak Itechnical Icompetencies Iwhen
compared I Ito I Icompanies I Ilike I IFord I IMotor
I
Company.
I
4) IPerceived I as I too I Indianized I – I it I will
I take I them I a I long I time I to I establish I a
I global Ibranding
5) IDo I not I possess I localization I skills I outside
I India I markets I – I this I is I one I of I the I primary
reasons Ifor Itheir Ifailure Iin Ithe ICity IRover
I
venture
I
6) IInadequate Icurrent Imanufacturing Icapacities
to Imeet Irequirements Iof Icars Ileading Ito Irisky
I
commitment Iand Iunder-delivery
I
7) IMore Ifocus Ion Icost Iand Ilack Iof Ifocus Ion
advanced Ifeatures I
I
Threats
1) IJaguar I and I Land I Rover I requires I lot I of
I funds I initially I which I may I strip I down I the
company Ito Icashless Ilevels.
I
2) IThe ISingur I crisis I has I already I hit I their
I manufacturing I backbone I for I Tata I Nano I cars
I –the I company I has I not I yet I come I out I of I the
I draining I down I of I cash I in I excess I of
I $300Million
 3) IUrgency Iin I shifting I the I Singur I plant I to
35
 I Tata I – I Mercedes I Benz I and I introduce I alternate I place I has I hit I their I supply I chain I very
I their I cars I in Ithe IAsian Imarkets badly I – I a I large I number I of I suppliers I had
I

4) ITata INano Ihas Itaken Ithe Iworld Iby I established I plants I in I Singur I to I support I Tata
I surprise Iwhereby Imany Ieconomy Icar Motors I – I many I of I them I may I not I be I having
I

I manufacturers Iof Ithe Iworld Iare Iyet Ito I enough I cash I to I shift I to I new I location I of
I even Ithink Iof Isuch Ia Iaffordable Icar Tata IMotors INano Iplant.
I

 5) IIntroduce I Asian I variants I of I Jaguar

4) IMany Icompanies Iacross Ithe Iworld Iare Ibusy
I and I Land I Rover I by Ipromoting I their
developing Itheir Iown Imodels Iof IEconomy
I

I “Power I Icon” Ibranding I I – I I Ithis I I Imay I

Cars I – I they I may I launch I in I competition I with
I

I work I I very I I well I I with I I Asian I

I Tata I Motors I giving I them I tough I time I in Ithe
I politicians, I I Capitalists I I and IBureaucrats
market Ithat Icurrently Iseem Ito Ibe Imonopolistic
I

in Ifavour Iof ITata IMotors

I

Strategic Analysis of Tata Motors as per Michael Porter

I I I I I I I I

Diamond model of competitive advantages

I I I I

Michael IE IPorter Ibuilt Iup Ithe IDiamond IModel Ito Iinvestigate Ithe Iupper Ihands Iof Icountries Ito
I break Idown Ihow Ia Ifew Inations Iincrease Iupper Ihands Iin Icertain Imechanical Isegments Iby
I building Iup Itheir Iseparate Iindigenous Ibusinesses. IThis Imodel Iand Ithe Ifive Ipowers Imodel Iof
I firm Iintensity Ihave Ibecome Iexperimental Ispeculations Iin Ikey Iinvestigation Iof Iorganizations.
I We Itherefore Ipresent Ithe Ianalysis I

Tata IMotors Iusing Ithese IModels. IThe IMichael IPorter’s IDiamond IModel Iis Ipresented Iin Ithe
I following Ifigure:

Government

Machinery

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

Firm
strategy I&
I

Rivalry
36

Factor Demand
 Figure I1: IMichael IPorter’s IDiamond IModel

Organisations Ithat Ihave Iaccomplished Iupper Ihands Iover Ithe Iworld Ihave Icompleted
I developments Iin Itheir Iitem Icontributions, Iin Ithe Iadministrations, Iin Ithe Imanner Iin Iwhich Ithey
I work Itogether Iand Iin Ithe Imanner Iin Iwhich Ithey Icontend Iin Ithe Icommercial Icentre. IThe
I advancements Iof Iall Iorganizations Iseem, Iby Iall Iaccounts, Ito Ibe Itheir Iown Iyet Iare Ireally
I founded Ion Isome Isolid Iessentials Iof Ielements Ithat Iinterface Iwith Ione Ianother Iimpressively
I (Porter, IMichael IE. I1990. Ipp75). IThe Iprecious Istone Imodel Ipresents Ia Isolid Iconnection Iof Ithe
I four Ibasic Iaffecting Ivariables Iadministering Ithe Iaccomplishment Iof Ian Iassociation Iat INational
I just Ias IInternational Ilevel Iwith Ithe Iassistance Iof Ithe Icontrols Iof Ithe Inearby IGovernment Ion
I these IInfluencing Ifactors Igoing Iabout Ias Ithe ICatalyst

Firm Strategy & Rivalry

I I I

Michael IPorter Icharacterized Ithis Ifactor Ias Ia Iforced Icriticalness Ion Iassociations Ito I"Enhance"
I so Ias Ito Icontend Iwith Iorganizations Iin Idirect Irivalry Iin Ithe ILocal IMarkets. IThis Iimpacting
I factor Iis Iadministered Iby Ithe Igeneral Ibusiness Iframework Iin Ithe Ination Iconstrained Iby Ithe
I other IGovernment, Iin Iwhich Iorganizations Iare Ishaped, Isorted Iout, Irepresented Iand Ioversaw
I through Iorganized Ilegitimate Iand Ilegal Isystem I(like ICompany ILaw, ICompanies IAct,
I Corporate IGovernance IAct, Iand Iso Ion). I[Porter, IMichael IE. I1990. Ipp78, I83]

Tata IMotors Imethodology Ihas Ibeen Idiverse Icontrasted Iwith IFord IMotors. IThey Ivanquished
I their Iadversaries Iby Icatching Ithe Iopen Idoors Imuch Iin Ifront Iof Irivalry Ieven Ibefore Ithey Iare Iset
I up Ito Iconvey Iagainst Iorders. ITheir Imethodology Ihas Ibeen Ito Ihold Iclients Iby Icharging Ibooking

37
I sums Iwith Ithe Iend Igoal Ithat Ithey Iinitially Isecure Ithe Iclient Ibase Iand Iafterward Ibegin
I manufacturing.

They Iare Icost Icognizant Iabout Ioverheads Ior Iadditional Istock Iand Isubsequently Ifabricate
I carefully Iagainst Iorders. ITheir Imethodology Iin Ithe Idispatch Iof ITata INano Iis Ithe Iequivalent
I whereby Ithey Iinitially Imean Ito Imake Isure Iabout Ithe Iclients Iby Icharging Iostensible Ibooking
I sums Iand Iafterward Iconvey Ithe Ivehicles Istep Iby Istep Ias Iand Iwhen Ithey Iare Ipropelled. IGiven
I that Itheir INano Iidea Iisn't Iyet Itested Iby Iany Iopposition, Iit Iwould Ibe Isimpler Ifor Ithem Ito Ihold
I the Iappointments Iwith Ithe Iend Igoal Ithat Iregardless Iof Iwhether Ithey Iface Ian Iopposition, Itheir
I clients Iof Ifirst Iparcel Iwill Istay Iimmaculate

Demand Conditions I

Michael IPorter's Iidea Iof Iinterest Iconditions Iis Iidentified Iwith Ithe Ilocal Irequests Ilaid Ion Ithe
I organization Iby Iend Iclients, Iproviders, Igovernment, Iand Iso Iforth Ihence Ipresenting Ithe
I organization Ito Ithe Itest Iof Ioverseeing Irequest Igracefully Iproportion. I

The Iinterest Iconditions Ilikewise Iget Iinternationalized Iif Ithe IGovernment IMachinery Ibolsters Ia
I framework Ithat Iencourages Iorganizations Ito Iaccomplish Ithis. IIt Iis Iimperative Ito Itake Inote Iof
I that Inot Iall Iorganizations Ihaving Isolid Inearby Iqualities Ican Iget Iinto Ithe IInternational IMarkets I

Tata IMotors Ihave Inot Ibuilt Iup Ithe Icompetency Iof Ilimitation Iof Iitems Iand Iadministrations
I according Ito Inearby Irequests. IIn IIndia, Ithey Ihave Imany Iyears Iof Iinvolvement Iwith Icreating
I items Iagainst Inearby Irequests Iand Ithus Iare Ieffective.

The IGovernment Iof IIndia Ihas Ijust Ihelped Ithem Ito Iextend Itheir Ilegs Ipast Ias Ifar Ias Ipossible I(like
I the Ilegitimate Iand Ilegal Istructure Iof IIndia Ihas Ipermitted Ithem Ito Iprocure IBritish Iorganizations
I and Idispatch INano Iworldwide Ithrough IGeneva). I

But I they I have I not I aced I the I art I of I localization I of I products I as I per I the I regional I demands Iin
I countries Iof Itheir Ioperations. IExample, Ithey Ifailed Iin ICity IRover Imiserably Ibecause Ithey
I tried Ito Ipush I cars I fit I for I Indian Iconditions Iinto I Europe I which I is I considered I as I a I blunder
I today. I Hence, Ioverall, I it I will I take I a I long I time I for I them Ito I establish I global I branding

Related and Supporting industries

I I I

38
Porter Irecommended Ithat Ithe Ihousehold IIndustry Iin Ia Ination Idevelops Iconsiderably Iif Ithe
I nearby Igovernment Iis Ieffective Iin Imaking Iand Icontrolling Ithe Isystem Iof Irivalry Iamong
I players Iand Iproviders Ithat Ihelp Ithe Ienterprises. IIn Isuch Ia Inational Istructure, Ia Isolid Isystem Iof
I contenders, Iproviders Iand Ispecialist Ico-ops Iis Imade Ithat Iall Ithings Iconsidered Iimpact Ia Isound
I development Iof Ibusiness, Iincrement Irequests Iand Ilift Isupplies. I

Such Irivalry Iwhen Istretch Itheir Ilegs Iin Ithe Iworldwide Imarkets Ileave Ia Ipositive Ieffect Ion Ithe
I nearby Iqualities Iof Ithe Ination Ibecause Iof Iinflow Iof Icash, Iworldwide Iaccepted Iprocedures,
I innovations, Iideas, Iand Ilicenses

The Irelated Iand Ibolstered Ienterprises Iof ITata IMotors Iare Igenerally IIndian Ibased Iwhereby Ihuge
I numbers Iof Ithem Idon't Ihave Ithe Icapabilities Ito Ihelp Iworldwide Iextension Iof ITata IMotors. IIn
I the Ipresent Isetting, ITata IMotors Iis Igrowing Itheir Iworldwide Itasks Iutilizing Itheir Iinner Igroups
I that Ibuild Iup Ibusiness Iorganizes Iin Ithe Inations Iof Itheir Iactivity. IPresently, Ithey Ihave Itasks Irun
I by Iinner Iworkers Iin Inumerous Inations Ioutside IIndia.

In Inumerous Inations, Ithey Iare Iexclusively Ineedy Iupon Ithe Irequests Ibooked Iby Iclients Ithrough
I their Iinternational Ivendors Iand Ispecialist Ico-ops Ithat Iwork Iwith Itheir Iown Inearby Iskills. IThis Iis
I the Iexplanation Ithat Ia Iportion Iof Itheir Imodels Ilike ITata ISierra Ihas Igreat Iacknowledgment Iin IUK
I markets.

Factor Conditions
I

In Iconclusion, Ithe Icalculate Iconditions IPorter's Ijewel Imodel Itotal Ithe Istructure. IFactor
I conditions Iare Iidentified Iwith Ibusiness Ibolster Istructure Ito Ithe Ibusiness Ithat Iincorporates
I gifted Ilabour, Ifundamental Ifoundation, Iflexibly Ichannels, Ireserves Imove Ichannels I(like Ian
I across Ithe Icountry Iinstalment Iframework), Iaccessibility Iof Iadvances Ifrom Ibanks Iand Ifinancial
I speculators.

Analysis of Tata motors as per Michael Porter’s five forces

I I I I I I I I I

Model Ithat Ishape IIndustry ICompetition

39
In I 1980, I Michael I Porter I presented I the I five I forces I that I shape I competition I in I the I industry
I for I any I business I organization I as I – I Rivalry I among I existing I competitors, I threats I of
I newentrants,Bargaining I power I of I suppliers, I bargaining I power I of I buyers, I and I threat I of
I substitute I products I or Iservices. IThese Iforces Idetermine Ithe Icompetitive Iposition Iof
I organizations Iin Ithe Imarkets Iof Itheir Ioperations. IWe I Ihereby I Iintroduce I Ia I I brief I Iintroduction
II about I Ithis I Imodel I Iand I Ithen I Idetermine I Ithe Icompetitive Ipositioning Iof IFord IMotor
I Company Iand ITata IMotors I I

Figure I2: IPorter’s IFive Iforces Istrategy Ithat Ishape Icompetition

One Isignificant Iperception Ithat IMichael IE IPorter Imade Iabout Ithese Ipowers Iis Ithat Iin Ithe Ievent
I that Ithese Ipowers Iare Iextraordinary, Iat Ithat Ipoint Ipractically Ino Iorganization Iincreases
I unmistakable Iupper Ihands Iand Igains Iappealing Iprofits Ifor Iventures. I

The Idangers Iof Inew Icontestants Iand Isubstitute Iitems Iand Iadministrations Iare Ipredominant Iin
I businesses Iwhere Isignificant Idevelopments Iare Iin Iprogress Ithat Ican Ipossibly Icause
I imaginative Idecimation Iof Ithe Icurrent Iitems Iand Iadministrations. INew Icontestants
I consistently Ienter Ithe Ibusiness Isectors Iwith Ia Ilonging Ito Icatch Ipieces Iof Ithe Ioverall Iindustry
I rapidly Iand Iconsequently Iwill Iin Igeneral Iput Iparcel Iof Ifocus Ion Iitem Iestimating Iaccordingly
I topping Ithe Ibenefit Icapability Iof Ithe Imarket.

40
Thus, Ithe Icurrent Iplayers Iin Ithe Imarket Iadvantage Iout Iof Ithe Ihindrances Ito Isection Iof Inew
I players Ithat Ibasically Iinvolve I– Iflexibly Iand Irequest Ieconomies Iof Iscale, Iprovider Ichanging
I expenses Ito Iclients I(particularly Iwhen Ithe Iclients Ihave Iput Iintensely Iin Iarrangements
I consistent Iwith Iprovider's Iinnovation Ior Iare Ia Ilot Iof Iused Ito Ithe Iequivalent), Icapital
I necessities, Iaccess Ito Idispersion Ichannels, Iprohibitive Igovernment Istrategies, Iand Iso Ion. I

The Iother Itwo Iadjusting Ipowers Iare Ibartering Iintensity Iof Iproviders Iand Ipurchasers. IThe
I haggling Iintensity Iof Ipurchasers Iwill Ibe Ilesser Iif Irivalry Iis Iless Igiven Ithat Iclients Iwon't Ihave
I numerous Ioptions Ifor Ibuying Iitems. IIn Iany Icase, Ithe Idealing Iintensity Iof Iproviders Iis Ihigher Iif
I there Ishould Iarise Ian Ioccurrence Iof Ilesser Irivalry Igiven Ithat Ilesser Irivalry Iwon't Ibuild Iup Ithe
I provider Iorganize I(and Itheir Ishared Irivalry) Iand Ithus Ithey Iwill Iin Igeneral Ihave Iadditionally
I haggling Ipower.

The I other I Itwo I Ibalancing I Iforces I Iare I Ibargaining I Ipower I Iof I Isuppliers I Iand I Ibuyers. I IThe
I bargaining I power I of I buyers I shall I be I lesser I if I competition I is I less I given I that I customers
I will I not Ihave I many I choices I for Ipurchasing I products. I However, I the I bargaining I power
I of I suppliers I is Ihigher I in I case I of I lesser I competition I given I that I lesser I competition I will
I not I develop I the I supplier Inetwork I(and Itheir Imutual Icompetition) Iand Ihence Ithey Iwill Itend Ito
I have Imore Ibargaining Ipower.

Ferrier I and I Smith I et I al I (1999) I stated I that I companies I that I pose I complacency I in I their
I approach I tend I to Ilose I market I shares I to I their I more I aggressive I and I active
I counterparts. I They Iobserved I I that I I some I I industry I I leaders I I tend I I to I I erode I I their I I own I
I market I I shares I I through I I new Iinnovations I that I carry I out I a I typical I Schumpeter’s I creative
I destruction I of I their I existing I product Imarket Ishares

Mapping Ithe Iworldwide Imarket Iscene Iof Iengine Iindustry, Ithe Idanger Iof Inew Icontestants Iis
I very Ihigh Ion Ithe Igrounds Ithat Ithere Iare Icountless Itop-notch Ilocal Iengine Imakers Iover Ithe
I world Ithat Iare Imoving Iin Ithe Idirection Iof Ientering Inew Imarkets Iover Ithe Iglobe. IThe Iwonder Iof
I Japanese Iorganizations Ientering IUS Imarkets Iand Igiving Iintense Ioccasions Ito Ilocal Iplayers Ilike
I Ford IMotor ICompany Iis Iseen Iby Iindividuals Ithe Iwhole Iway Iacross Ithe Iworld. IThe IJapanese
I organizations Ilike IToyota Ihave Ipresented Isubstitute Iitems Iin Ithe IUS, IUK Iand IEuropean
I markets Iand Ihave Idisintegrated Ipieces Iof Ithe Ipie Iof IFord IMotor ICompany Igiven Ithat Ithey
I (most Ilikely) Iwere Imore Iforceful Iand Iimaginative Ithan IFord IMotor ICompany Iin Ithese
I business Isectors. ITata IMotors Iis Ione Isuch Iorganization Ithat Iis Igood Ito Igo Ito Ienter Iworldwide
I markets Iand Iposture Idangers Ito Ithe Ilocal Ishowcase Iplayers Iwith Itheir Inew Idevelopments I(like

41
I Tata INano). ITheir INano Imodels Ican Imurder Inearby Irivalry Iof Iminimal Ieffort Ivehicles Iin
I numerous Inations Iin Ithe Ievent Ithat Ithey Ican Ikeep Iup Ithe Ibuilding Igreatness Ithat Ithey Ihave Ihad
I the Ioption Ito Iexhibit Iin Ithe Itest Idrives. IThey Ihave Ito Ia Igreat Iextent Ihad Ithe Ioption Ito Icontrol
I the Ibartering Iintensity Iof Iproviders Iby Iethicalness Iof Iastounding Iflexibly Ichain Ithe Iexecutives
I in Ithe Ibackend Iand Isubsequently Ican Ioffer Iinconceivable Icosts Ito Itheir Iclients Inot Iletting Iany
I space Ifor Ithem Ito Ideal. IAs Iof Inow, ITata IMotors Iare Iconfronting Ia Ifew Iboundaries Ito Itheir
I entrance Iin Inumerous Ibusiness Isectors I– Ilike Ithe Idischarge Istandards Iof IEuropean IUnion I–
I however Ithey Iare Istep Iby Istep Itaking Ia Ishot Iat Ithe Icures Iwithout Icontaining Imuch Ion Itheir
I nearby Icost Ipoints Iof Iinterest

Ansoff Analysis of Tata motors

I I I I

Ansoff, I H I I I (1958) I developed I a I matrix I to I analyse I the I product I marketing I strategy I of I an

I organization Iwhen I designing I a I model I for I diversification. I Following I is I the I image I of
I original Isketch Iof Ithe Imatrix Idrawn Iby IAnsoff Ihimself

42
 Figure I3: IA ISimple Iform Iof IAnsoff Iproduct Imarketing Istrategy Iis Ipresented Ibelow

Each Iof Ithese Iquadrants Idescribes Ia Ispecific Iproduct Imarketing Istrategy Ias Idetailed Ibelow:

 Existing Iproducts Ito Ibe Imarketed Iin Iexisting Imarkets I– Imarket Ipenetration Istrategy
 New Iproducts Ito Ibe Imarketed Iin Iexisting Imarkets I– Iproduct Idevelopment Istrategy
 Existing Iproducts Ito Ibe Imarketed Iin Inew Imarkets I– Imarket Idevelopment Istrategy
 New Iproducts Ito Ibe Imarketed Iin Inew Imarkets I– Idiversification Istrategy
In I order I of I risks, I the I strategy I based I on I existing I value I chains I of I organizations I possesses
I lowest Irisks I while I the Istrategy I requiring I deployment I of I altogether I new I value I chains I by
I organizations Ipossesses Ihighest Irisk. IThus, Imarket Ipenetration Istrategies Ipossess Ilowest

Risks Iassociated Iwith Ithe Iimplementation, Ibut Idiversification Ipossesses Ihighest Irisks
I associated Iwith Ithe Iimplementation. I If Iwe I take I a I closer I look I at I the I strategies I of I Ford
I Motor I Company I and I Tata I Motors I and I map I with IAnsoff I matrix, I we I can I easily Iconclude
I that I the I Ford I Motor I Company I is I applying I strategies Ihaving I lowest I risk I although I they
I are I paying I highest I price I for I the I same I whereas I Tata I Motors I is Iapplying I strategies I with
I highest I risks I and I hence I is I in I a I make Ior I break I mode. I We I present I the Ifollowing Ianalysis
I for Ijustifying Ithis Iconclusion.

Tata IMotors Iis Iright Inow Iactualizing Ihigh Ihazard Isystems Igiven Ithat Ithey Ihave Iendeavoured Ito
I enter Itwo Inew Imarkets Iwhere Ithey Idon't Ihave Iany Iaptitude I– IUK Iand IEuropean Ipremium
I vehicle Imarkets Iwith Ithe Iassistance Iof IJaguar Iand ILand IRover Iand Ithe I$2500 INano Ivehicle
I that Imay Ithrough Iand Ithrough Ibuild Iup Ianother Ivehicle Ishowcase Icomprehensively. IIn Ithe
I event Ithat Ithings Ifavour Ithem, Ithey Ican Ipossibly Iturn Iinto Ithe Ifollowing IFord Iof Ithe Iworld

43
I however Ion Ithe Ioff Ichance Ithat Ithe Ihappenings Idon't Isupport Ito Ithem I(like Ithe ISingur
I emergency Isaw Iby Ithem), Iat Ithat Ipoint Ithey Ican Iendure Imisfortunes Ithat Iwill Itake Ia Ilong Itime
I for Ithem Ito Ifix.

Balanced Score card analysis of Tata motors

I I I I I I

Figure I4: IThe IBalanced Iscore Icard Isystem Ifor Ivision Iand Istrategy

The I strategy I is I based I on I four I primary I factors I that I balance I each I other I in I a
I strategic Iframework I – ICustomer, I Financial, I Internal I Business I Process I and I Learning I and
I Growth. I The ICustomer I and I Financial I perspective I is I the I way I the I company I appears I to
I the I customers I and I the IStake I Holders I whereas I the I Internal I Business I Processes I and
I Learning I and I Growth I perspective I is Ithe Iway Ithe Icompany Iappears Ito Ithe Iinternal Iemployees
I and Imanagers.

This Idissertation I will I result I in I detailed I financial I perspective Iof I Financials I and I Customers
I and Ihence Iwe Iwill Irevisit Ithe IBalanced IScore ICard Ilater Iin Ithe Idissertation. IThe Iinternal
I business Iprocesses Iand Ilearning Iand Igrowth Iperspective Ihas Ibeen Iquite Isound Iin I both I Ford
I Motor I Company Iand I Tata I motors, I but I the I perspectives I have I been I entirely I different. IFord

44
I Motor I Company I has I focused I on I localization I of I products I at I a I global I platter I whereby
I they Ikeep I their I parts I supply I chain I centralized I and Iassemble I cars I as I per I the I local
I requirements I of I a Iregion Iafter Istudying Ithe Ineeds. IThis Ihas Iresulted Iin Ithem Iable Ito Ideliver
I different Ivariants Iof Icars Ias Iper Ithe Irequirements Iof Idifferent Icountries Iusing Ithe Isame Ispares
I supplied Iby Itheir Icentralized Isupply Ichain Ivendor. IHence, Ithe Iinternal Ilearning Iand Igrowth Iof
I Ford IMotors Ihas Ibeen Ivery Icomprehensive Iwith Ilocalized Iknowledge Icaptured Ifrom Ivarious
I countries Iand Ithe Ibenefits Iof Iglobal Iknowledge Iand Iexperience Ieffectively Imixed Iwith Ithe
I localized Iknowledge.

Tata IMotors Igives Ioff Ian Iimpression Iof Ibeing Ia Ilong Iway Ibehind Ithis Iprocedure Iwhen
I contrasted Iwith IFord IMotors, Iyet Ithey Igive Ioff Ian Iimpression Iof Ibeing Itaking Ia Isimilar Iway
I towards Iglobalization. IThey Ihave Icreated INano Iaccording Ito IIndian Iconditions Ito Ibegin Iwith
I however Iare Iprepared Ito Icoordinate Ithe Irestricted Iconditions Irequired Iat Ithe Iworldwide Ilevel I–
I like Ithe Itough Idischarge Istandards Iof IEurope. IThey Ias Iof Inow Ihave Itheir Ilittle Itrucks I(Tata
I Sierra) Iworking Iin IUK Iwhich Iprobably Ibuilt Iup Itheir Iinsight Ion IUK Iand IEuropean Imarket
I necessities. IIn Iaddition, Iafter Ithe Iobtaining Iof IJaguar Iand ILand IRover Itheir Iinsight Iwill Ibe
I reinforced Ifurther. IThey Ias Iof Inow Ihave Ithe Irudiments Iset Iup Ito Iapply Ithe Iinformation Iin
I Nano Iand Iit Imight Ibe Isimply Ia Iquestion Iof Itime Ithat Ithey Iwill Ihave Ithe Ioption Ito Iaccomplish
I consistence Ifor INano Iagainst Ithe Iguidelines Iof IEurope Iand Idifferent Inations Ithat Ithey Iare
I focusing Ion.

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

45
 Chapter-5
Conceptual Context I

Covid-19 (Corona Virus)

I I

46
Introduction
The Icoronavirus Iis Ia Igroup Iof Iinfections Ithat Ican Icause Ia Iscope Iof Isicknesses Iin Ipeople
I including Inormal Icold Iand Iincreasingly Iserious Istructures Ilike ISARS Iand IMERS Iwhich Iare
I hazardous. IThe Iinfection Iis Inamed Iafter Iits Ishape Iwhich Iappears Ias Ia Icrown Iwith Iprojections
I around Iit Iand Ithus Iis Iknown Ias Icoronavirus. I

As Iper Ithe IDoctor Ia Ikind Iof Inormal Iinfection Ithat Itaints Ipeople, Iordinarily Iprompting Ian Iupper
I respiratory Icontamination I(URI.) ISeven Iunique Isorts Iof Ihuman Icoronavirus Ihave Ibeen
I recognized. IThe Ivast Imajority Iwill Ibe Itainted Iwith Iin Iany Ievent Ione Ikind Iof Icoronavirus Iin Ithe
I course Iof Itheir Ilife. IThe Iinfections Iare Ispread Ithrough Ithe Iair Iby Ihacking Iand Isniffling, Iclose
I to Ihome Icontact, Icontacting Ian Iarticle Ior Isurface Isullied Iwith Ithe Iinfection Iand Ionce Iin Ia
I while, Iby Ifecal Isullying. IThe Idisease Ibrought Iabout Iby Imost Icoronaviruses Ifor Ithe Imost Ipart
I keeps Igoing Ia Ibrief Itimeframe Iand Iis Idescribed Iby Irunny Inose, Isore Ithroat, Ifeeling Iunwell,
I hack, Iand Ifever.

Figure I5: IAn Iillustration Iof Ihow Ia ICorona Ivirus Ilooks Ilike

The Ibody's Irespiratory Isystem Iincludes Ithe Inose, Isinuses, Imouth, Ithroat I(pharynx), Ivoice Ibox
I (larynx), Iwindpipe I(trachea), Iand Ilungs. IUpper Irespiratory Iinfections Iaffect Ithe Iparts Iof Ithe
I respiratory Itract Ithat Iare Ihigher Ion Ithe Ibody, Iincluding Ithe Inose, Isinuses, Iand Ithroat, Iwhile
I lower Irespiratory Iinfections Iaffect Ithe Iairways Iand Ilungs.

47
Background
On IDec. I31, I2019, IChinese Iauthorities Ialerted Ithe IWorld IHealth IOrganization Iof Ipneumonia
I cases Iin IWuhan ICity, IHubei Iprovince, IChina, Iwith Ian Iunknown Icause. IWhat Istarted Ias Ia
I mystery Idisease Iwas Ifirst Ireferred Ito Ias I2019-nCoV Iand Ithen Inamed ICOVID-19. ILike Iother
I respiratory Idiseases, ICOVID-19 Ispreads Ithrough Ismall Idroplets—saliva Ior Imucus—that Ian
I infected Iperson Iexpels Iwhen Ithey Icough, Isneeze, Ior Italk. IThese Idroplets Ican Itravel Ithree Ito Isix
I feet Iand Iremain Iinfectious Ifor Ianywhere Ifrom Ifour Ito I48 Ihours, Idepending Ion Ithe Isurface. I

In Ia Imatter Iof Imonths, Ithe Idisease Ihas Igone Ifrom Ibeing Ilocalized Iwith Ithe IHubei Iprovince Ito
I impacting Ialmost Ievery Isingle Icountry Iin Ithe Ientire Iworld. IAs Iof IApril I22, Ithere Iwere Iclose Ito
I 2.5 Imillion Iconfirmed Icases Iof Ithe Idisease Iand I176,786 Iresulting Ifatalities Iacross Ithe Iglobe.
I The Idisease Ihas Ithus Ifar Ishown Ian Iexponential Igrowth Icurve, Iand Iwhile Ipolicy Imakers
I scramble Ito Iflatten Ithe Icurve, Ithe Imeasures Ibeing Itaken Ihave Ihad Imajor Inegative Iimpacts Ion
I national Ieconomies Iand Ibrought Iup Ithe Iadvent Iof Ithe Inext Iglobal Irecession

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

48
What is a Pandemic?
I I I

On IMarch I11, Ithe IWHO Iofficially Iclassified Ithe ICOVID-19 Ioutbreak Ia Ipandemic. IA
I pandemic, Iin Isimplest Iterms, Iis Ithe I"worldwide Ispread Iof Ia Inew Idisease," IEllen IFoxman, IMD,
I Ph.D., Ia IYale IMedicine Iclinical Ipathologist Iand Iresearcher Iof Iviral Iinfections Iand
I microorganisms Iin Ithe IClinical IVirology ILaboratory, Itells ICNET. IThe IWHO Iand ICDC Ihave
I their Iown Idefinitions Iof Ipandemic, Ithough Ithey Iare Ifundamentally Ithe Isame.

According Ito Ithe IWHO, Ia Ipandemic Iis I"an Iepidemic Ioccurring Iworldwide, Ior Iover Ia Ivery
I wide Iarea, Icrossing Iinternational Iboundaries Iand Iusually Iaffecting Ia Ilarge Inumber Iof Ipeople."
I The ICDC Idefines Ia Ipandemic Ias I"an Iepidemic Ithat Ihas Ispread Iover Iseveral Icountries Ior
I continents, Iusually Iaffecting Ia Ilarge Inumber Iof Ipeople."

Is it more dangerous than other viruses?

I I I I I I

Most Iinstances Iof ICOVID-19 Iare Inot Iserious. INonetheless, Iit Ican Icause Iside Ieffects Ithat
I become Iserious, Iprompting Ideath Inow Iand Iagain. IThe Iepisode Iof ICOVID-19 Ihas Ibeen
I unexpected. IThis Imakes Iit Ihard Ito Iappraise Ihow Ifrequently Ithe Iillness Igets Iextreme Ior Ithe
I specific Ipace Iof Imortality.

One Ireport Iproposes Ithat Iout Iof I1,099 Iindividuals Iwith Iaffirmed Icases Iin IChina, Iaround I16%
I got Iserious. IAnother Ireport Iassesses Ithat Iabout I3.6% Iof Ithe Iaffirmed Icases Iin IChina Iprompted
I passing. IThese Ifigures Iare Iprobably Igoing Ito Ichange Ias Ithe Icircumstance Idevelops. IIn Iany
I case, Ithey Ipropose Ithat ICOVID-19 Iis Imore Idestructive Ithan Iflu. IFor Iinstance, Ioccasional Iflu
I commonly Iprompts Ipassing Iin Iunder I0.1% Iof Icases. IWhen Itesting Ibecomes Isimpler Iand

49
I progressively Iboundless, Iwell-being Ispecialists Iwill Ihave Ian Iincreasingly Iprecise
I understanding Iinto Ithe Ispecific Inumber Iof Iextreme Icases Iand Ideaths.

ARS Iis Ianother Isort Iof Icoronavirus. IIt Iturned Iinto Ia Iworldwide Ipandemic Iin I2002–2003.
I Around I9.6% Iof ISARS Icases Iprompted Idemise. IIn Iany Icase, ICOVID-19 Iis Iincreasingly
I infectious, Iand Iit Iis Ias Iof Inow Ithe Ireason Ifor Iadditional Ideaths Iaround Ithe Iworld.

Is there a vaccine for the virus?

I I I I I I

Figure I: IA IReference Ipicture Iof ICovid-19 Ivaccine

Growing Inew Iimmunizations Irequires Isignificant Iinvestment Iand Ithey Ishould Ibe Ithoroughly
I tried Iand Iaffirmed Isafe Iby Imeans Iof Iclinical Ipreliminaries Ibefore Ithey Ican Ibe Iroutinely
I utilized Iin Ipeople. IAnthony IFauci, Ichief Iof Ithe INational IInstitute Iof IAllergy Iand IInfectious
I Diseases Iin Ithe IUS, Ihas Inormally Iexpressed Ian Iimmunization Iis Iat Iany Irate Ia Iyear Ito Iyear Iand
I a Ihalf Iaway. ISpecialists Iconcur Ithere's Ia Ibest Iapproach Iyet. I

In Iany Icase, Ithere Iis Iincredible Iadvancement Ibeing Imade Iin Isuch Imanner Iand Ivarious
I immunization Icompetitors Ihave Ishowed Iup Iin Ithe Itime Isince ICOVID-19 Iwas Ifound. IWe've
I ordered Iall Ithat Iwe Ithink Iabout Ipotential Iantibodies Iand Icurrent Itreatment Ialternatives Ithat Iare
I being Iutilized Ifar Iand Iwide. INumerous Iinfections Iare Ipreventable Ithrough Iantiviral
I immunizations. IBe Ithat Ias Iit Imay, Iit Itakes Isome Ieffort Ito Icreate Iand Iappropriate Iprotected Iand
I powerful Iantibodies. IAn Iantibody Ifor ICOVID-19 Iis Iprobably Inot Igoing Ito Ibe Iaccessible Iat Iany
I point Iin Ithe Inear Ifuture.

50
The impact of Covid-19 on the Global econom
I I I I I I I

The Iongoing Ispread Iof Ithe Inew Icoronavirus Ihas Ibecome Ione Iof Ithe Ibiggest Ithreats Ito Ithe
I global Ieconomy Iand Ifinancial Imarkets. I

The Ivirus, Ifirst Idetected Iin Ithe IChinese Icity Iof IWuhan Ilast IDecember, Ihas Iinfected Imore Ithan
I 6,00,000 Ipeople Iin Iat Ileast I195 Icountries Iand Iterritories Iglobally, Iaccording Ito Ithe IWorld
I Health IOrganization. IOf Ithose Iinfected, Imore Ithan I30,000 Ipeople Ihave Idied Iyet Iending Ito
I march, Iaccording Ito IWHO Idata.

Percentage change in Real GDP Growth

I I I I I

2019 2020 2021

World 2.9 -3.0 5.8
Euro areaI 1.2 -7.5 4.7
Germany 0.6 -7.0 5.2
France 1.3 -7.2 4.5
Italy 0.3 -9.1 4.8
Spain 2.0 -8.0 4.3
Japan 0.7 -5.2 3.0
United Kingdom I 1.4 -6.2 4.2
Canada 1.6 -6.2 4.2
China 6.1 1.2 9.2
India 4.2 1.9 7.4
Russia 1.3 -5.5 3.5
Latin AmericaI 0.1 -5.5 3.5

51
 Brazil 1.1 -5.3 2.9
Mexico -0.1 -6.6 3.0
Middle East I 1.2 2.8 4.0
Saudi ArabiaI 0.3 -2.3 2.9
Sub Saharan Africa
I I 3.1 -1.6 4.1
Nigeria 2.2 -3.4 2.4
South AfricaI 0.2 -5.8 4.0

Economic impact of Covid-19

I I I

To Istop Ithe Ispread Iof Ithe Iinfection, Igovernments Ihave Igotten Ia Imove Ion Iphenomenal Igeneral
I wellbeing Iand Ifinancial Ireactions. IAll Ithrough Ithe Iworld, Isocial Iseparating Ihas Inow Ibecome
I the Istandard. IThis Ihas, Iin Iany Icase, Inegatively Iaffected Ifinancial Iaction Ias Iindividuals Istay
I bound Ito Itheir Iown Ihomes Iand Ijust Ifundamental Imonetary Iaction Ioccurring.. ICOVID-19 Ihas
I been Ian Ianomaly Ias Iit Ihas Iall Ithe Iwhile Imade Ieach Iof Ithe Ithree Isimultaneously. IThe Ieffects
I have Ibeen Ias Iper Ithe Ifollowing:

Supply-side shocks I

 Disruption Iin Iglobal Isupply Ichains

Many Iyears Iof Iprofound Imonetary Imix Ihave Irebuilt Iworldwide Iexchange Iand
I speculation. IAt Ithe Ipoint Iwhen Iany Iconnection Iin Ithe Ichain Ibreaks, Iupstream Iand
I downstream Iproviders Iand Ipurchasers Iare Iaffected Itoo. IThe Iinterruption Ithat Iat Ifirst
I started Iwith Ithe Isecuring Iof IHubei Iterritory Ihas Inow Ispread Iuniversally Iand Ihas Ijust
I started Ito Ishow Ithe Ihelplessness Iof Ithe Igracefully Ichains. IThis Iimpact Iis Irelied Iupon Ito
I compound Ias Ireserves Iof Iupstream Iinformation Imaterials Ibecome Idearer.

 Reduction Iin Iproduction Icapacities:

With Ilockdowns Iand Isocial Idistance Iturning Iinto Ithe Istandard, Iwork Iconcentrated I I I I
I businesses Ihave Ieverything Iexcept Iincidentally Ishut Idown. IMonetary Imovement
I created Ifrom Iorganizations Ithat Irequire Ihuman Icooperation Ior Ihuman Inearness Ihave
I been Irequired Ito Ibe Ipostponed. IBusinesses, Ifor Iexample, Icompetitors I Ihave Iseen Ia
I drop Iin Iincome Ito Inil Ifor Ithe Ipredictable Itime Ibeing. IThus, Itotal Iflexibly Ihas Iseen Ia
I plunge Iover Ithe Iworld.

52
Demand-side trends I

 Consumption of essential goods:

I I I

With Ithe Iworld Ion Ilockdown, Itotal Iinterest Iis Irelied Iupon Ito Iendure Ia Isignificant Ishot.
I As Iindividuals Isit Iin Itheir Ihomes, Iand Inations Iendeavour Ito Ipermit Ijust Idevelopment
I on Ifundamental Iadministrations, Irequest Iis Irelied Iupon Ito Iback Ioff.
 Price Ivolatility:
Besides, Ithe Iweight Iof Iinterest Ion Ifundamental Iadministrations Iis Iprobably Igoing Ito
I cause Ian Iexpansion Iin Iretail Iswelling Iif Igovernments Ihaven't Imade Iholds Iand Istores Ion
I important Ithings. IThis Iis Inow Ibeing Ifound Iin Ithe Inow Iunpredictable Imarket Ifor
I individual Idefensive Irigging, IN95 Icovers Iand Iother Iclinical Ihardware. IIn Ian Iongoing
I move, Ithe IUnited IStates Iof IAmerica Iwas Iblamed Ifor Icommandeering Ia Ishipment Iof
I N95 Iveils Ibooked Ito Imove Itowards IFrance Ifrom Ioff Ithe Ilanding Iarea.

 Increased Iconsumption Iof Idigital Icontent

A Istudy Iby IComscore3 Ihas Iindicated Ian Iexpansion Iin Ithe Iutilization Iof Icomputerized
I content Iin Ithe Iunderlying Idays Iof Ithe Ilockdown, Iand Ithis Ipattern Iis Ijust Iexpected Ito
I additionally Ifortify Ias Iindividuals Iremain Ibolted Iup Iinside Itheir Ihomes. IContrasted Iand
I the Iseven Iday Istretch Iof IFeb. I10-16, I2020 Ivisits Ito Isites Iand Iversatile Iapplications Iin
I the I"General INews" Iclassification Iexpanded Iby I61% Iin Ithe Iseven Iday Istretch Iof IMarch
I 16-22, I2020. IBe Ithat Ias Iit Imay, Ithe Imajority Iof Ithe Iexpansion Ihappened Ias Iof Ilate:
I contrasted Iand Ithe Iseven Iday Istretch Iof IMarch I9-15, I2020, Ivisits Iwent Iup Iby Ihalf
I during Ithe Iseven Iday Istretch Iof IMarch I16-22, I2020

Financial shock
I

 Liquidity crunch: I

Adding Ito Icreation Iof I Ia Isimultaneous Idemand Iand Isupply Ishock, ICOVID-19 Ihas Ialso
I applied Ipressure Ion Ialready Istrained Ifinancial Isystem Iaround Ithe Iglobe. IAcross Ithe
I board, Icentral Ibanks Ihave Iimplied Iall Ithe Itools Iin Ithe Imonetary Ipolicy Iarsenal Ito Ifight

53
 I the Iproblem. IRate-cuts Iand Iquantitative Ieasing Ihave Ibecome Ithe Inorm Iand Iare
I anticipated Ito Igo Ion Ifor Ithe Inear Ifuture. I
 Large Iscale Idefault:
While ICentral IBanks Ihave Irequested Ibanks Iin Itheir Iterritories Ito Istart Iputting
I moratoriums Ion Iretail Iloans, Icountries Ihave Istarted Idefaulting Ion Iloans Iowed Ito Imulti-
lateral Iagencies. IFor Ithe Ithird Itime Iin Iits Ihistory, IArgentina Ihas Idefaulted Ion Ian IIMF
I loan. IAn Iestimate Iby Ieconomists IPierre-Oliver IGourinchas Iand IChang-Tai IHsieh Ihas
I indicated Ithat Ia Ione-year Idebt Imoratorium Icould Ifree Iupwards Iof IUSD I1 Itrillion, Ior
I 3.3% Iof Ilow- Iand Imiddle- Iincome Icountries’ Icombined Iincome Imight Ibe Inecessary I

Global economic Projections

I I

At Ithis Ipoint, Imost Ifinancial Ispecialists Iare Ianticipating Ithat Ithe Ispread Iof Ithe Iinfection Iis
I definitely Igoing Ito Icause Ithe Ifollowing Idownturn. IOnly Ithree Imonths Iback, Ithe IIMF Iwas
I foreseeing Ithat Ithe Iworldwide Ieconomy Iwould Idevelop Iby I3.3% Ithis Iyear. IIn Iany Icase, Iin Iits
I as Iof Ilate Idischarged IWorld IEconomic IOutlook I5, Ithe Imultilateral Iassociation Ihas Inow
I anticipated Ithat Ithe Iworldwide Ieconomy Iwill Ishrink Iby Iup Ito I3 Ipercent.

The Iorganization Ihas Ialso Icreated Ithree Ilikely Ioutcomes Ibased Ion Ithe Ieffectiveness Iof Ithe
I policy Iresponse Iin Icurbing Ithe Ispread Iof ICOVID-19.

 The Ifirst Ialternative I(in Iblue) Iestimates Ithe Iimpact Iof Ithe Ifight Iagainst Ithe Ispread Iof Ithe
I virus Iin I2020, Itaking Iroughly I50 Ipercent Ilonger Ithan Ithe Iassumed Ibaseline.
 The Isecond Ialternative I(in Ired) Iconsiders Ithe Iimpact Iof Ia Isecond, Ibut Imilder,
I resurgence Iof Ithe Idisease Ioccurring Iin I2021.
 The Ithird Ialternative I(in Iorange) Iis Ia Iworst-case Iscenario Ithat Iestimates Ithe Ipotential
I impact Iif Ithe Ipresent Ioutbreak Itakes Ilonger Ito Icurb Iin I2020 Iand Iis Ifollowed Iup Iby
I another Ioutbreak Iin I2021. I
I

54
The Iplunges Iin Idevelopment Irates Iacross Icutting Iedge Ifinancial Iaspects Iand Ideveloping
I markets Ithink Iabout Ithe Igracefully Istun Iand Irequest Ilog Ijam, Iyet Iin Iaddition Ithe Irelating
I monetary Iboosts Igave Iby Igovernments Ito Ihandle Ithe Icircumstance. I

While Iall Ithe IIMF Irecuperation Ibends Iventure Ia IV-shape Irecuperation, Ithey Iadditionally Iput
I the Iworldwide Ieconomy Iin Ithe Ired Ifor Ithe Ifollowing I2-3 Iyears. IConversely, Iin Iits ICOVID-19:
I Briefing INote, IMcKinsey Iand ICompany6 Ihas Ianticipated Ithat Ithe Irecuperation Ibend Iwill Ibe
I reliant Ion Itwo Icentral Ipoint:

 Spread of the Virus and Public-Health Response: For the situation that there is a
I I I I I I I I I I I I I

I strong Icontrol Iof Ithe Ispread Iof Ithe Iinfection, Ithe Ishock Iwill Ibe Iaffecting Ipresent
I situation Iand Ithe Irecuperation Iwill Ibe Ispeedy Ias Iit Iwould Ibe Ia Ilittle Iinterruption Iyet Inot
I a Iseparate Iof Igracefully Ichains Iand Irequest. IBe Ithat Ias Iit Imay, Iif Ithe Igeneral Iwell-being
I reaction Iis Iinadequate, Ilong Ilockdowns Iwill Ihit Iboth Igracefully Iand Irequest, Iand
I recuperation Iwill Idepend Ion Imonetary Iboosts Ialone.

 Effectiveness Iof IEconomic IPolicy: IWhile Imonetary Iboost Iwon't Ihave Ithe Ioption Ito
I affect Ithe Ilife Ispan Iduring Ithis Iperiod, Igovernments Iwould Ineed Ito Iguarantee
I congruity Iof Ithe Ibudgetary Idivision Iand Iincrement Iopen Iand Iprivate Iobligation Ito

55
 I guarantee Ithat Ithe Iuptick Ionce Ian Iantibody Iis Ifound Iis Ihearty. IAn Iinadequate Ifinancial
I strategy Iwill Ijust Iobserve Ibottoming Iby Ithe Iinfection, Iwhile Ia Icompelling Iarrangement
I will Ibring Iabout Ia Imore Iextreme Iupward Ibend Iafter Imove Iis Imade.

The Indian Economy

I I

In IIndia, Ithe Ifirst Icase Iof ICOVID-19 Iwas Ion IJanuary I30; Ione Iof Ithe Ipassengers Icarried Ifrom
I Wuhan Iby Ithe Iadministration. IWhile Ithe Iinitial Ibarely Iany Iinbound Iexplorers Iwere Isecluded Iin
I light Iof Ithe Ifact Ithat Ithey Iwere Iput Iunder Ithe Iexacting Iisolate, Ithe Itransmission Iraised Iin Ithe
I long Istretch Iof IMarch, Iafter Ia Ifew Icases Iwere Iaccounted Ifor Ieverywhere Ithroughout Ithe
I nation, Ia Ilarge Iportion Iof Iwhich Iwere Iconnected Ito Iindividuals Iwith Ia Imovement Ihistory Ito
I influenced Inations. IOn I10 IMarch, Ithe Itotal Icases Iarrived Iat I50. IOn I12 IMarch, Ia I76-year-
elderly Iperson Iwho Ihad Icome Iback Ifrom ISaudi IArabia Iturned Iinto Ithe Iprimary Icasualty Iof Ithe
I infection Iin Ithe Ination. IThe Itotal Icases Ias Iof IApril I22 Ihad Ijust Isurpassed I20,000.

Coming Iinto Ithis Ipandemic, IIndia Iwas Iat Ithat Ipoint Ireeling Iwith Ian Ieasing Iback Idevelopment,
I a Ifocused Ion Ibudgetary Iarea Iand Icrawling Iswelling. ITowards Ithe Ifinish Iof Ia Iyear Iago,
I preceding Iapproach Iof ICOVID-19, Ithe Iprevious IPrime IMinister IManmohan ISingh Ihad Ijust
I referenced Ithat IIndia Iwas Igoing Itowards Ia Icondition Iof Istagflation. IThe Ipandemic Ihas Iadded
I layers Iof Iemergencies Ito Ithis Icircumstance Ithrough Ithe Icontinuous Ilockdown Iand Imovement
I of Iwork Iback Ito Ithe Itowns. IAltogether, Iaccording Ito Ia Ireport Iin IIdeas Ifor IIndia, Ithe IIndian
I economy Ihas Ithe Iaccompanying Iissues Ito Imanage:

 Informal ISector IChallenges: IThe Icasual Isegment Irelies Icritically Iupon Iindividuals'
I day Iby Iday Irequest. IWith Ia Ihuge Ipiece Iof Ithe Ipotential Iclients Iof Ithe Icasual Ipart
I remaining Iat Ihome Iat Ithe Ipresent Itime Iand Ipulling Iback Ifrom Iinsignificant
I consumptions, Ithe Iendurance Iof Icasual Iarea Iunits Iwill Iget Isketchy Ias Itime Ipasses Ithat
I the Iwellbeing Iemergency Iand Ithe Irelated Ilockdown Idelays.
 Corporate ISector IStress: IFirms Iin Ithe Iformal Isector Iwill Istruggle Ito Isustain Ias Ithey
I will Ihave Ifixed Ioutgoings, Ibut Iincoming Irevenue Iis Ilikely Ito Ibe Istaggered. IThis Iwill
I prove Ito Ibe Icritical Ifor Ifirms Iwith Ileverage Ion Itheir Ibalance Isheets.
 Broken IBanking Isector: IComing Iinto Ithe Icrisis, IIndia Iwas Igrappling Iwith Ihigh INPAs
I and Ijust Ibefore Ithe Ilockdowns, Ione Iof Ithe Ilargest IIndian Ibanks I– IYes IBank, Ihad Ito Ibe
I acquired Iby Ia Igovernment Ibank. IThe Icorporate Isector Istress, Iespecially Ifor Ileveraged

56
 I firms, Iis Ilikely Ito Iroll Iover Ionto Ithe Ifinancial Isector Ias Icompanies Iwill Inot Ibe Iable Ito
I pay Iback Iloans, Ileading Ito Ihigher Ivolumes Iof INPAs. I
 Limited IFiscal IDeficit ILeeway: ILike Ithe Irest Iof Ithe Iworld, IIndia Iwill Ihave Ilimited
I opportunity Ito Iincrease Iits Ifiscal Ideficit, Iwhich Iwill Ibe Imandatory Ifor Irecovery. IAs Ithe
I crisis Ibegun, Ithe Igovernment Ihas Ialready Iannounced Ia Ipackage Iof IUSD I22 Ibillion
I towards Itiding Iover Ithe Imost Ivulnerable Iduring Ithe Ilockdown.

Going Iforward, Ithe Ieconomy Iis Iexpected Ito Itake Ia Ihit Iwith Isectors Iacross Ithe Iboard Ibracing Ifor
I a Ilean Iperiod

 Reduced IGrowth IProjections: IThrough Ithe Ispan Iof Ithe Imost Irecent Icouple Iof Iweeks,
I the Ibreaks Iin Ithe IIndian Ieconomy Ihave Istarted Ito Ibegin Iappearing. IMarket Ianalysts,
I rating Iorganizations Iand Ibanks Ihave Ijust Ibegun Irevaluating Itheir Iworldwide Iand
I Indian Igauges. IWhile Imarket Ianalysts Ihad Ibefore Ianticipated Ithat Ithe Ieconomy Iwould
I develop Iat Iabout I5% Iin Ithis Imoney Irelated Iyear, Ithey Iare Ipresently Iforeseeing Ia
I withdrawal Iof Ithe IGDP Ifrom Ibetween I4.7% Ito I0.1% Ifor Ithe Icoming Ibudgetary Iyear
I because Iof Ithe Irelaxed Ilockdown.
 Increasing IUnemployment: IAccording Ito Ithe Iunemployment Itracker Isurvey Iof
I Centre Ifor IMonitoring Iof IIndian IEconomy I(CMIE), Ithe Iassociation I Ithat Isolitary I27.7
I percent Iof Ithe Iworking-age Ipopulace I(103 Icrore) Iwas Iutilized Iin Ithe Iweek Iafter
I lockdown Istarted. IAs Iper Ithe Ibusiness Iestimation Itechnique Ifor Ithe Iassociation, Iinside
I about Ifourteen Idays, Ithe Iquantity Iof Iproductively Iutilized Ihas Idescended Ifrom I40.4
I crore Ito I28.5 Icrore, Ia Idrop Iof I11.9 Icrore. IGiven Ithat Itotal Iinterest Iis Irequired Ito
I debilitate, Ithis Inumber Imay Iincrement Iin Ithe Ipresent Imoment Ibefore Ibalancing Iout
 Losses Iacross ISectors: IAccording Ito Ia IMcKinsey Ireport, Ithe Icompression Iof Ithe IGDP
I won't Ibe Idriven Iby Ia Isolitary Isegment Ihowever Ibe Iin Iall Icases. IWhile Icordiality,
I aeronautics Iand Iauto Iare Iprobably Igoing Ito Ibe Ithe Igreatest Ifailures, Idifferent Idivisions
I as Iwell, Iwon't Ipassage Iwell

57
Impact of Covid-19 on Automobile sector
I I I I I

Global scenario
I

The Iautomobile Isector Iis Ia Iglobally Iinterconnected Iindustry Iwith Ia Ilarge Ieconomic Ifootprint.
I The Isize Iof Ithe Isector’s Igross Ioutput I(that Iis, Ithe Isum Iof Iits Ivalue Iadded Iand Iintermediate
I consumption) Iis Iabout I5.7% Iof Iglobal Ioutput, Iaccording Ito Ithe IWorld IInput-Output IDatabase.

In I2018, Ithe Icar Ibusiness Ishrank Ijust Ibecause Isince Ithe Iworldwide Imoney Irelated Iemergency
I of I2008. IAccording Ito Ithe IInternational IMonetary IFund I(IMF), Ithis Ifall Iin Iyield Ilikewise
I added Ito Ia Ilull Iin Ithe Iworldwide Ieconomy. IThe Idrop Iin Ithe Idivision Iwas Ibrought Iabout Iby Ia
I blend Iof Iboth Iflexibly Idisturbances Iand Irequest Istoppage: Ia Idrop Ipopular Iafter Ithe Itermination
I of Iexpense Imotivating Iforces Iin IChina; Icreation Ilines Iacclimating Ito Iconsent Ito Inew Ioutflow
I norms Iin Ithe Ieuro Iterritory I(particularly IGermany) Iand IChina; Iand Iconceivable Iinclination
I moves Ias Ipurchasers Iembrace Ia Icautious Imentality Iwith Iinnovation Iand Idischarge Iguidelines
I changing Iquickly Iin Inumerous Inations, Ijust Ias Ideveloping Ivehicle Itransportation Iand Isharing
I choices. IAutomobile Ifabricating Ishrank Iby I1.7% Iin I2018 Iby Ivolume Iof Ivehicles Idelivered, Ias
I indicated Iby Ithe IIMF. IVehicle Isends Iout Ifrom Ithe I14 Igreatest Ivehicle Idelivering Inations Ifell
I by I3.1 Ipercent Iin I2018 Iwhen Iestimated Iin Iunits

Chart I1: IAnnual Ipercentage Ichange Iin IGlobal Iauto Isales

The Iindustry Iplunged Ideeper Iinto Irecession Iin I2019, Iwith Isales Idropping Imore Ithan I4% Ias
I carmakers Istruggled Ito Ifind Ibuyers Iin IChina Iand IIndia. IThis Iled Ito Idownsizing Iby Imajor
I automakers. ISome Iexperts Ihad Ieven Ibegun Ito Ispeculate Ithat Ithe Iworld Imay Ihave Ireached
I "peak Icar," Ior Ithe Ipoint Iat Iwhich Iglobal Idemand Ifor Ivehicles Ibegins Ian Iinevitable Idecline.

58
Indian scenario I

The Ibusiness Idove Ifurther Iinto Idownturn Iin I2019, Iwith Ideals Idropping Iover I4% Ias Icarmakers
I battled Ito Idiscover Ipurchasers Iin IChina Iand IIndia. IThis Iprompted Icutting Iback Iby Isignificant
I automakers. IA Ifew Ispecialists Ihad Ieven Istarted Ito Itheorize Ithat Ithe Iworld Imay Ihave Ireached
I "top Ivehicle," Ior Iwhere Iworldwide Iinterest Ifor Ivehicles Istarts Ian Iunavoidable Idecaying.

Before Ithe Ioutbreak, Ithe IIndian Iauto Isector Iwas Ialready Isuffering Ifrom Ia Iprolonged Islump
I owing Ito Imany Ireasons:

 Global ISlowdown
There Ihas Ibeen Ia Iglobal Islowdown Iand IIndia Ihas Ibeen Ipart Iof Ithe Isame Iwith Ithe IGDP
I growing Iat Iless Ithan I5%, Ithe Ilowest Igrowth Irate Iseen Iin Ia Ilong Itime.
 Drop Iin IPrivate Iinvestment
Drop Iin Iprivate Iinvestment Iand Ia Istressed Ifinancial Isector Ihas Imade Iit Ihard Ifirms Ito
I come Iby Icredit Iand Iweakened Iconsumer Idemand.
 Transition Ito IEV
The IIndian Igovernment Ihas Ialso Ibeen Ipushing Ifor Ia Itransition Ito Ielectric Ivehicles Iover
I the Inext Idecade, Iwhich Isome Iexperts Ibelieve, Ihas Icontributed Ito Ifalling Ivehicle Isales. I

The Iyear I2019 Iwas Ione Iof Ithe Imost Inoticeably Iawful Iyears Ifor Ithe IIndian Ivehicle Iindustry Iwith
I falling Ideals Iand Iheaping Istock. IWhat Icompounded Ithe Icircumstance Iin I2019 Iwas Ithe Idisarray
I over IBS-VI Istandards, Ithe Ichange Ito IEVs Iand Iassumptions Iregarding IGST Icuts. ISo Ias Ito
I adjust Ithe Istock, Imakers Ineeded Ito Idepend Ion Ipersistent Icreation Icuts. IDuring I9M IFY20, Inet
I deals Iof Ithe Icar IOEMs Isaw Ia Iy-o-y Idecay Iof Iabout I14% Ion Ia Iy-o-y Ipremise Iopposite Ia
I development Iof Iabout I16% Isaw Iduring I9M IFY19 Iwhile Iauto Iauxiliary Iplayers I(counting Itires)
I saw Ia Idecrease Iof Iabout I11.7% Iversus Ia Idevelopment Iof I14.7% Iduring I9M IFY19. IAs Ifar Ias
I volume Ideals, Iindustry Isaw Ia Idecrease Iof Iabout I13% Iy-o-y Iin IFY20 I(April I– IFebruary).
I Industry Ibenefits Ideclined Iby Iabout I27% Iduring I9M IFY20 Iopposite Ia Itwofold Idigit
I development Iduring Irelating Iperiod Iearlier Iyear Ithat Ican Ibe Iascribed Ito Ifrail Ideals Ibooked
I alongside Idifferent Iarrangements Iand Ioffers Iand Ilimits Igiven Iby IOEMs Iduring Ithe Icelebration
I season.

59
Earlier and Revised Projections
I I I

Projections Ibefore ICovid-19

 Global: IClose Iterm Ipossibilities Ifor Ithe Ibusiness Istay Ilanguid, Iand Iendeavours Ito
I decarbonize Irepresented Ia Imajor Itest Iin Ithe Imedium Iterm. IAccording Ito IMoody's
I Investors IService, Iviewpoint Ifor Ithe Iworldwide Icar Iproducers Iand Iparts Iproviders
I stayed Inegative Ifor I2020. IIt Ianticipated Ithat Iworldwide Iautomobile Ideals Ishould Idrop
I 0.9% Iin I2020.
 Indian: IFor I2020, Ithe Icircumstance Iwas Irelied Iupon Ito Istay Iextreme Iespecially
I because Iof Itight Icredit Iconditions, Ithe Idirecting Ieconomy, Iand Ithe Ichange Ito IBS-VI
I emanations Iprinciples I– Imaking Ivulnerability, Ideterrents, Iand Ideferrals. IAs Iper Ia
I report Idischarged Iby Ithe IFitch ISolutions, Ivehicle Icreation Iin IIndia Iis Iprobably Igoing Ito
I shrink Iby I8.3% Iin I2020. IParallelly, IMoody's Irelied Iupon IIndian Iautomobile Ideals Ito
I rise I0.5% Iin I2020 Iand I2% Iin I2021.

Revised Projections
I

 Global: IMoody's IInvestors IService Ihas Icut Iits Iworldwide Iautomobile Ideals Igauge Idue
I to Ithe Icoronavirus Iflare-up Idecreasing Iinterest Iand Iupsetting Icar Igracefully Ichains. IIt
I presently Ianticipates Ithat Iworldwide Icar Ideals Ishould Idrop I14% Iin I2020
 Indian: IIn IFebruary I2020, IFitch ISolutions Iguage Ivehicle Icreation Iin IIndia Ito Icontract
I by I8.3% Iin I2020, Ias Ithe Iautomobile Ibusiness Ifaces Iexpanding Idanger Iof Igracefully
I deficiency Idue Ito Ithe Icoronavirus Iflare-up Iin IChina, Iperhaps Ihitting Ilocal Iyield Iif Ithe
I infection Ispreads. IPresently Ithis Iwas Ibefore Ithe Iflare-up Iof Iinfection Iin IIndia. IGiven
I the Iuncontrolled Irate Iat Iwhich Iit Iis Ideveloping Iin IIndia, Ithe Ipart Iwill Ihave Ieven Ia Imore
I profound Ieffect. IAs Iper IICRA, Ibusiness Ivehicles I(CV) Ideals Ivolumes Iin IIndia Iare
I probably Igoing Ito Icontract Ifurther Ibetween I8-10% Iin I2020-21 Ias Ithe Iclose Iterm
I standpoint Iof Ithe Idivision Iis Ioverloaded Ifundamentally Iby Ithe Icoronavirus Ipandemic.
I According Ito Igauges Iby ISIAM, Ivehicle Iindustry Iis Ilosing IINR I2,300 Icrore Iunderway
I turnover Ifor Ieach Iday Iof Iclosure.19 IAlso, Ithe Iwork Iof Ithe Ibusiness Iis Iin Idanger Ias Ithe
I legally Ibinding Ilaborers Irepresents Iabout Ihalf Iof Ithe Iworkforce Iin Ithe Ibusiness. IIt Iis
I likewise Ito Ibe Inoted Ihere, Ithat Iregardless Iof Iwhether Ithe Ipandemic Iis Iabridged, Ithe
I purchaser Iestimations Iare Irelied Iupon Ito Ibe Inegative Iand Irequest Iis Irequired Ito Istay
I quieted Iduring IH1 IFY21 Idrove Iby Ifluctuating Iand Iunsure Ifinancial Iconditions.

60
Current situation of Automobile sector in India
I I I I I I

The Iauto Isector Iis Ifacing Ithe Icombined Ichallenges Iof Ireduced Iproduction Ivolumes Icaused Iby
I supply Ichain Idisruptions Iand Ifalling Iconsumer Idemand Ifor Inew Icars. ISome Iof Ithe Ichallenges
I faced Iare:

a) Supply Iside Iconstraints

Coronavirus Iflare-up Ihas Igracefully Iprompted Ichain Idisturbances Iand Icreation Istop Iin
I India. IThe Ipandemic Ihad Iat Ifirst Iupset Ijust Ithe Igracefully Ichain, Iparticularly Ifor
I segments Iimported Ifrom IChina I- IChina Irepresents I27% Iof IIndia's Icar Ipart Iimports.
I Inferable Ifrom Ithe Iconclusion Iof Ithe Iautomobile Ipart Iindustrial Ifacilities Iin IChina,
I there Ihas Iallegedly Ibeen Ia Ipostponement Iin Ithe Icreation Iand Iconveyance Iof IBS-VI
I agreeable Ivehicles. IWith Ithe Ilockdown Iin IIndia, Ifabricating Iin Ithe Iauto Iarea Ihas
I additionally Ihalted. ICreation Ishutdown Ithe Ination Iover Iwill Iaffect Ithe Idivision
I significantly. IOther Ithan IInternal ICombustion Imotor Ivehicles, Ithe Icreation Iof Ielectric
I vehicles Ihas Ilikewise Ibeen Iaffected Ibecause Iof Ithe Islack Iin Ithe Iobtainment Iof
I segments Iand Ibatteries Ifrom IChina
.
b) Demand Iside Iconstraints
With Ithe Ioutbreak Iof Icoronavirus Iin IIndia, Ithe Ipervasive Ilow Ipurchaser Islant Ihas Ihosed
I much Ifurther. IIn IMarch I2020, Iall IOEMs Isaw Ia Isharp Idrop Iin Iwholesales Idue Ito
I COVID-19 Irelated Ilockdown Iand IBSVI Iprogress. ICustomer Ifootfall Iin Ishowrooms
I had Ifallen Ipointedly, Ivehicle Ideals Iwere Idropping Ibefore Ithe Ideclaration Iof Ia
I countrywide Ilockdown. IIn Ibikes, IOEMs Iconfronted Iissues Iover Iexisting IBSIV Istock
I with Ithe Ivendors, Iwhich Iwas Iexacerbated Iby ICOVID-19 Irelated Ilockdown Iand Ia
I constrained Ihelp Ifrom ISupreme ICourt Ion Ispecial Iof IBSIV Istock. IFor Ithe Ibusiness
I vehicle Isection, Ithe Iinterest Iheadwinds Iare Irequired Ito Iproceed Iover Ithe Iclose Iterm
I given Ithe Imacroeconomic Idifficulties Itaking Iinto Iaccount Ithe Iongoing Ipandemic Iflare-
up, Icombined Iwith Idebilitating Imoney Irelated Iprofile Iof Iarmada Iadministrators Iand
I huge Ivalue Iclimbs Iin Iview Iof Iprogress Ito IBS-VI Iemanation Istandards. I
Investigators Iaccept Irequest Iis Iprobably Inot Igoing Ito Irestore Imuch Iafter Ithe Ieffect Iof
I the Iepisode Istops, Ias Ithe Igreater Iexpense Iof Iobtaining Ion IBS-VI Irollout Iwould Iimprint
I request. IBikes Iand Itruck Icreators Iwill Ibe Ithe Imost Iexceedingly Iawful Ihit, Ifrom Ithe
I sharp Iascent Iin Icosts

61
Auto-components

India Ihas Ia Isizeable IUSD I57 Ibillion Iautomotive Icomponent Iindustry, Ibut Iit Istill Iimports Iparts
I worth Iabout IUSD I17.6 Ibillion Ievery Iyear.25 IIndia’s Imaximum Idependence Ion Iimports
I especially Ifor Ithe Itwo-wheeler Iand Ipassenger Ivehicle Iindustry Icomponent Iwise Iis Iin Isteering
I and Ibraking Isystems, Iengine Iparts, Ialloy Iwheels Iand Ilighting Isystems. IAlso, Imost Iof Ithe
I OEMs Iare Idependent Ion IChinese Isupply Ichains Ifor Ithe IBS-IV Ias Iwell Ias IBS-VI Icomponents
I such Ias Ifuel Iinjection Ipumps. IIn Ithe Icurrent Iscenario, Iwith Ithe Ioverall Islowdown Iin Ithe IIndian
I economy, Ishifting Ito Iother Ialternate Icountries I(such Ias IGermany, IJapan, IKorea) Ifor Isupply
I may Inot Ibe Ifeasible Iin Iterms Iof Iboth Icost Iand Itime. IAlso, Ithe Igestation Iperiod Iand Ithe Ihuge
I investment Irequirements Ifor Ithe Iauto Icomponent Iindustry Iremain Ithe Irestricting Ifactors Ifor
I such Iimmediate Ishift.
India’s Iexports Iof Itransport Iequipment Ito IChina Iaccount Ifor Ia Inegligible Ishare Iof Iabout I0.5%
I of Ithe Itotal Itransport Iequipment Iexported Ifrom Ithe Icountry, Ihowever, IUS I& IEurope Itogether
I account Ifor Iabout I80% Ishare Iimpacting Ithe Ioverall Iautomotive Icomponent Iexports. IIn Iterms
I of Iimports Iof Itransport Iequipment, Iabout I8.6% Iwas Iimported Ifrom IChina Iduring IFY19,
I almost Ihalf Iof Ithe Iequipment Iimported Iduring Ithe Iprevious Iyear. IChina Iis Icurrently Ioperating
I at Ibelow Iaverage Icapacities Iand Igiven Ithe Iconditions, Iis Iexpected Ito Ifully Irecover Ionly Iby IQ2
I FY21, Iprovided Ithe Ispread Iof ICOVID-19 Iis Icurtailed. ITherefore, Ithe IIndian Icomponent
I industry Iis Iexpected Ito Iwitness Isupply Ichain Idisruptions Iin Ithe Idomestic Imarket Iduring IQ4
I FY20 Iand IQ1 IFY21 Ito Ithe Itune Iof Iaround IUSD I8,000 Imillion I(assuming I40% Iof IFY19) Iwhile
I local Isourcing Iis Iexpected Ito Iincrease Igoing Iforward
India’s Iexports Iof Itransport Iequipment Ito IChina Iaccount Ifor Ia Inegligible Ishare Iof Iabout I0.5%
I of Ithe Itotal Itransport Iequipment Iexported Ifrom Ithe Icountry, Ihowever, IUS I& IEurope Itogether
I account Ifor Iabout I80% Ishare Iimpacting Ithe Ioverall Iautomotive Icomponent Iexports

62
Current and potential impact on the sector
I I I I I I

Parameter Low Medium High Comments

Supply ISide
Price Ivariations Iof Ikey Iraw  Short-term Ifluctuations
I materials I witnessed Iin Iprices Iof Iraw
materials
I

Production Ishutdown  Automotive Isector Ialready

I facing Iweak Idemand;
I Production Ishutdown Iacross Ithe
I country Idue Ito Ithe Ipandemic
I will Isignificantly Iimpact Ithe
sector Ifurther
I

Cash Iflow Iconstraints  General Iliquidity Ishortfall Iin Ithe

I sector Idue Ito INon-banking
I financial Icompanies I(NBFCs)
I and Ibanking Isector Isituation
I leading Ito Ian Iimpact Ion Isales
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Supply Ichain Idisruption 
IIIIIIIII Disruption Iin Isupply Iof
I raw Imaterials Ilike Iancillaries
I and Iother Icritical Icomponents
I have Iaffected Iimports
Imports I(if Iapplicable) 
Labour Iforce  Availability Iof Icontract Ilabour
I for Ioperations Iand Isupport
I functions Imay Ibe Ian Iissue Ieven
I after Ithe Isituation
Lockdown/restrictions Iimpact 
Demand ISide
Consumer Isentiment  Consumers Ihave Ibeen
I postponing Itheir Ivehicle
I purchase Idecisions Iowing Ito
I uncertainty Isurrounding Ithe
I pandemic

Relief measures taken by Governments across the Globe

I I I I I I I

Canada Ontario IGovernment Ideclared Ithat Iit Iwould Irevise Ia Ifew Iguidelines Ion

63
 I protection Ipremium Idiscounts, Ithusly Ipermitting Icollision Iprotection
I organizations Ito Igive Ibudgetary Ialleviation Iall Ithe Imore Ieffectively Ito
I clients Iduring Ithe Icovid-19 Ipandemic. IThis Ichange Iwill Imean Iback Iup
I plans Ican Ioffer Ipremium Irefunds Ifor Ias Ilong Ias Ia Iyear Iafter Ithe Icrisis
has Ifinished.
I

China China's Iaid Ibundle Ifor Ithe Iautomobile Ibusiness Iindicates Ito Iaround I8
I billion Iyuan I(USD I1.13 Ibillion)., ILocal Igovernments Iare Ilikewise
I stepping Iin. IIn Iany Ievent Itwelve Iurban Icommunities Ior Iregions Ihave
I urged Iindividuals Ito Ipurchase Ivehicles, Iprincipally Iby Ioffering Imoney
appropriations Iof Ias Imuch Ias IUSD I1,400 Ifor Ievery Ivehicle.
I

France France Ihas Ibeen Iplanning Imonetary Iupgrade Iconcentrating Ion Iventure
I and Imoney Irelated Iguide Ifor Imechanical Idivisions Iincluding Ithe Icar
business.
I

Japan Japan Ihas Ireserved IUSD I2.2 Ibillion Iof Iits Irecord Imonetary Iboost
I bundle Ito Ienable Iits Imakers Ito Imove Icreation Iout Iof IChina Ias Ithe
I coronavirus Igracefully Idisturbs Ichains Ibetween Ithe Isignificant
exchanging Iaccomplices.
I

South IKorea South IKorea Ireported Ito Ioffer Istrategic Iand Ibudgetary Ihelp Ito Ihelp Ithe
I vehicle Ibusiness Ithrough Ithe ICorona Iinfection. IThe Iadministration
I said Iit Iwould Iaccelerate Icustoms Ifreedom, Imastermind Icargo
I transportation Iand Igive Iliquidity Ibacking Ito Ithe Ibusiness Iwhich
I utilizes Iabout I12% Iof ISouth IKorea's Iworkforce, Ias Iindicated Iby
legitimate Ifigures.
I

United IKingdom Britain's Imoney Irelated Idirect Ipower I(FCA) Ihas Iproposed Ito Ivehicle
I renting Ifirms Ito Igive Ia Ithree-month Iinstalment Istick Ito Iclients Iwho Iare
I having Itransient Ichallenges Ibecause Iof Icrown Iinfection.
United IStates The IUS Igovernment Ihas Ideclared IUSD I2 Itrillion Ifinancial Isalvage
I bundle Ifor IUS Iorganizations Ithat Ihit Ithe Ihardest Iby Ithe Icoronavirus
I pandemic, Iincluding Ithe Icar Ibusiness.

Initiatives taken by Auto industry

I I I I

With Ilockdowns Ibeing Icontrolled Iby Imost Inations Ito Iforestall Ispread Iof Ithe Iinfection, Iauto
I OEMs Iand Iproviders Iacross Iglobe Ihave Ilogically Isuspended Iactivities Iat Isome Iof Itheir
I creation Iareas. IFrom Ipropelling Iitems Ionline Ito Iexpanding Ibenefits/administration Iperiod Ito

64
I clients Iredirecting Itheir Icreation Ilines, Iautomakers Iare Iadapting Iup Ito Ithis Iemergency Iin
I various Imanners. I

Online Ideals Iare Ione Iof Ithe Ilast Ipossibilities Ifor Isalvation Ifor Icertain Isellers Ithat Ihave Ineeded
I to Iclose Ishowrooms Ibecause Iof Ithe Ipandemic Iand Istate Iorders. IA Ilarge Iportion Iof Ithe
I automakers Ihave Ijust Iservice Icontracts Iand Iadvantages Ito Itheir Iclients, Ihowever Inow Ithey Iare
I deliberately Ijoining Ithe Ibattle Iagainst Ithe ICOVID-19 Ipandemic. I

Some Demands of Indian auto Industry amidst this crisis

I I I I I I I I

 Auto Iindustry Ihas Ibeen Irequesting Ia Ilower IGST Irate

 Auto Iproducers Iare Ilooking Ifor Ibetter Ifinancing Iterms Iand Igentler Ipaces Iof Ienthusiasm
I for Itheir Iaccomplices Iand Isellers, Ihelping Ithe Iproposed Iadvantages Iof Ithe Ithree-month
I elegance Iperiod Ion Icredit Ireimbursements Iarrive Iat Ithe Imore Iextensive Ienvironment. I
 SIAM, IACMA Iand IFADA, Iare Imentioning Ithe Iadministration Ito Ideclare Iestimates Ithat
I will Iaddress Ithe Iliquidity Icrunch, Irequest, Iand Iflexibly Ichain Iinterruptions. ISIAM Ihas
I looked Ifor Ipresentation Iof Ia Iscrappage Iarrangement, Ideferment Iof Icertain
I administrative Istandards Iand Iaccessibility Iof Iworking Icapital Iat Iconcessional Irates.
 Federation Iof IAutomotive IDealers' IAssociation I(FADA) Iwas Ilooking Ifor Ian Iexpansion
I of I2 Imonths Ito Isell Iand Iregister Iunsold Isupplies Iof IBSIV Ivehicles. IBe Ithat Ias Iit Imay,
I just I10 Idays Iexpansion Ipost Ithe Ilockdown, Ihas Ibeen Iconceded Iby Ithe ISupreme ICourt.
 Apollo ITyres Iexpects Ithe Igovernment Ito Iannounce Ia Ibailout Ipackage Ifor Ithe Iauto
I sector.
 Industry Ibody IFederation Iof IIndian IExport IOrganizations I(FIEO) Ihas Iasked Ithe
I legislature Ito Iquickly Igive IINR I30,000 Icrore Iworth Iof Iintrigue Ifree Iworking Icapital
I term Icredit Ito Itrading Iorganizations Ifor Ifacilitating Itheir Iworking Icapital Iliquidity
I issues Iand Iforestall Ienormous Iscope Ijoblessness Ithat Icould Ifollow Ipost-lockdown,
I particularly Iin Ithe Iwork Iconcentrated Iareas.

Recent Policy announcements by governments by Government of India and

I I I I I I I I I

their impact
I I

Announcement Details Impact

65
 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII The ISupreme Icourt Ipermitted Ithe Ioffer A I10-day Iextension Iwould
Iof IBS-IV Iconsistent Ivehicles Ifor I10 Iscarcely Ibe Iany Igreat. IAs Iper

Idays, Iwith Ithe Iexception Iof Iin IDelhi- ICARE Ievaluations, Ithe

Extension Ifor NCR Ipost Icontinuous Ilockdown Iover Ipurchasing Iconclusion Iafter

Iselling IBS-IV Ithe Icorona Iinfection Ipandemic Iis Ithe Ilockdown Itime Iframe Iis

IVehicles Irelaxed. Iprobably Igoing Ito Ibe I'low'

Iand Icustomers Iwill Ibe Iwary

Iin Ispending, Istep Iby Istep Ion

Iextravagance Iand Ifirst-class

Ithings.

The Ilegislature Iexpanded Ithe Keeping Iup Ibusiness Ias Iusual

Ilegitimacy Ioutside Iexchange Iwill Ihelp Iexporters Iwhen Ithe

Extension Ifor Iarrangement Ias Iit Ihas Inot Ibeen Iworldwide Iflexibly Ichain Iis

IForeign Itrade Icapable Iwrap Icounsels Ifor Ianother Iupset Iby Ithe Icrown Iinfection

Ipolicy Ifor Ione Iyear Iapproach Idue Ito Ithe Ion-going Ipandemic. IIt Iwill Ilikewise

Ilockdown Iplanned Ifor Ichecking Ithe Igive Imore Iopportunity Ifor

Ispread Iof ICovid-19. Isurvey Iand Iconferences.

Reserve Ibank Iof IIndia Ichose Ito Icut Ithe These Imeasures Ishould Ihelp
Irepo Irate Iby I75 Ipremise Ifocuses Ito Iinfuse Iliquidity Iand Ilift

RBI Irate Icut Iand I3- I4.4% Iwhile Ilikewise Iallowing Iall Ibudgetary Iworry Ifor Iindustry

month Imoratorium Ibanks, INBFCs Iand IFLs Iremembering Ipartners Ijust Ias Ithe Iend-

IHFCs Ito Ipermit Ia I3-month Iban Ifor buyer.

Iinstalments Iof Iterm Iadvance Iportions

Iextraordinary Ias Ion IMarch I1 I2020,

Ipostponement Ion Iwhich Iwill Ineither

Ieffect Ithe Irecord Iof Ithe Iborrower Inor

Ithe Ibooks Iof Ithe Ipioneer

Potential impact of Upcoming “Scrappage policy”

I I I I I

As Ithe Ibusiness Iis Ireeling Iunder Ithe Iweight Iof Ilower Ideals Ibecause Iof Iincrement Iin Ivehicle
I cost I(attributable Ito IBS-VI Ichange) Iand Istifled Icustomer Irequest Iinferable Ifrom Ithe Ipandemic,
I the Ibusiness Iis Itaking Ia Igander Iat Ithe Iapproaching Iscrappage Istrategy Iwhich Iis Iexpected Ito Ibe
I declared Iby Ithe Ilegislature Isoon. IIt Iwill Iboost Irejecting Iof Imore Iseasoned Ivehicles. IUnder Ithe
I proposition, Ivehicle Iproprietors Iwill Iget Imotivators Iand Itradeable Iscrappage Iauthentications,
I which Ithey Ican Ireclaim Iin Ithe Iacquisition Iof Inew Ivehicles.. IScrappage Iadditionally Itakes Iinto
I account Ithe Ireusing Iand Irecuperation Iof Imaterials Iwhich Iwill Iprofit IOEMs Iand Isave Imoney Ion
I new Iimport Iprerequisites.

Scenario AssessmentI

66
 Optimistic IScenario Realistic IScenario Pessimistic IScenario

-Assess impact across core -Sense any significant -Refocus business

I I I I I I

segments-mass Ivs Iurban,

I impact Ion Icore
I areas/ Isegments Iunder
I

private Ivs Ifleet

I segments
I stress
I
Customer
Isegment
-Protect Icore Isegments I& - IIdentify Inew -Protect & grow
I I

prioritize Isegments Ithat Iare

I segments Ithat Iare
I
attractive Ibusiness
I

showing Iresilience
I relatively Iinsulated
I
segments
I

-Evaluate Iany Iproduct -Review Iproduct -Shelve Iproduct

delay Icosts I& Irevise Itarget
I launches Ibasis
I launches Ithat Ido Inot
I

-Assess Ilaunch Ireadiness I& segment Itrends

I meet Ithe Irevised
I

Product Ilaunch identify Iopportunities Ito

I -Prepare Ifor business Icase
I

accelerate Ilaunches
I digital/soft Ilaunches
I -Evaluate I& Iinvest Iin
-Assess Ilaunch product Isolutions Ithat
I

readiness I& Iability Ito

I meet Ithe Ievolving
I

scale Iup Inew Imodels

I customer Ineeds
I

-Enhance Ipromotional -Optimize Isales -Restructure Isales

activities Iacross Idigital
I channels Ifor Irevised
I channels Ito Icreate
I

sales Ijourney
I -Demand Iprojections -More Iflexibility Iand

Channels -Enabling Idigital Isales -Invest Iin Iconvenient resilience

I

strategy
I digital Isales I&
I -Develop Iintegrated
-Evaluate Inetwork Istrength marketing Ichannels
I digital Ichannels Ito
I

& Iexpansion Iplans

I enhance Ivisibility Iof
I

demand I& Icustomer

I

needs
I

-Evaluate Ifinancial Ihealth -Support Isuppliers I& -Explore Iopportunities

of Isuppliers I& Idealers Iand
I dealers Iwith Ifinancial
I for Istrategic Iinvestment
I

develop Isupport Iinitiatives

I initiatives Ito Iensure
I in Idistressed Ipartners
I

Ecosystem -Evaluate Iopportunities Ito sustenance

I -Identify Ialternative
enhance Iresilience Iof
I -Review I& Ienhance sources/ Ichannel
I

ecosystem
I ecosystem Icontinuity
I partners Iin Iline Iwith
I

plans
I revised Istrategy
I

Policy Recommendations
I

67
  Rate cut of GST on vehicles and components.
I I I I I I I

 Ahead extension to sell BS-IV Vehicles

I I I I I

 Relief packages for the auto sector (e.g Provision of working capital at concessional
I I I I I I I I I I I I

I rates, Imoratorium Ion Irental Ipayments Ifor Icommercial Iproperty Ifor Ifew Imonths Iand
I reduction Iin Iminimum Ielectricity Itariffs)
 Precautionary Measures to address supply chain disruptions I I I I I I

 Incentives to facilitate localization and use local products than foreign products
I I I I I I I I I I

 Impose ban on Chinese products.

I I I I

 Fiscal stimulus by adopting “Cash for clunkers” scheme for the sector to that can
I I I I I I I I I I I I I

I provide Ithe Irequired Iincentives Ito Iconsumers Ito Iexchange Itheir Iold Ivehicles Ifor Inew,
I more Ifuel-efficient Ivehicles. IThis Ican Ihelp Iin Iincreasing Ithe Idemand Ifor Iautomobiles
I in Ithe Icountry.

Recommendations

1. Tax Iand Icompliances Irelated

Short-term I

 Tax Ibooster Iin Ithe Iform Iof Ishort-term IGST Irate Icuts Ito Iincrease Ithe Idemand.
I E.g. Irate Icut Ifor IICE-powered Ivehicles I(Internal Icombustion Iengine)
 Deferment Iof IGST Ipayments Ito Iboost Iliquidity
 Building Itrust Iby Isuspending Itax Iaudits
 Efficiency Iin Iprocessing Iexporter’s Iclaims Isuch Ias Iduty Idrawback, IGST
I refunds Ietc.
 Consumer Iattractiveness Iby Iallowing Iincome Itax Ideduction Ion Iauto Iloan

IIIIIIIIIIII Medium to long term I I I

 Allow OEMs and other automotive firms to operate on previously granted

I I I I I I I I I I

approvals Iand Ilicenses, Igiven Ithe Iexpiry Idate Iis Iapproaching Inear, Ifor Ia Iperiod
I

of I6 Imonths.
I

 GST rate cut for ICE vehicles I I I I I

2. Easing Ifinancial Istress Iin Ithe Isector

68
 Short-term
 Operational Ibenefits Iin Ithe Iform Iof I Iwage Isubsidy Ito Ismall Iindustries Ior Iincome
I support Ifor Icontract Iworkers Ifor Ia Iperiod Iof I3 Imonths
 Reduction Iin Iinterest Irates Ion Idelayed Ipayment Iof Itax Ifor I3 Imonths.

IIIIIIIIIIII Long Iterm

 Develop Ia Irepayment Isupport Ischeme Ifor Iautomobile Iand Irelated Ifirms,

especially Ithe IMSME Idealers Iand Iauto Icomponents Imanufacturers Iand Isellers
I

3. Support Ifor Iend Icustomers

Short-term
 Rate Icut Iby IRBI Iresulting Iin Ireduction Iin Iinterest Irates Ifor Iretail Icustomers.

IIIIIIIIIIII Long Iterm

 Fast Itrack Ithe Iimplementation Io Ithe Ivehicle-scrapping Ischeme Ifor Ipassenger

and Icommercial Ivehicles Ito Iincentivize Ipurchase Iof Inew Ivehicle
I

Impact of Covid-19 on Tata Motors Ltd

I I I I I I

The Iflare-up Iof Ithe INovel ICoronavirus I(COVID-19), Iwhich Istarted Iin IWuhan, IChina Iin Iend-
December I2019, Iis Iquick Ispreading Iits Iappendages Iover Ithe Iworld Iand Iis Imajorly Iaffecting Iall
I parts Iof Isociety, Iincluding Ithe Icar Ibusiness. IAll Ithrough IJanuary Iand IFebruary, Iautomakers
I and Itheir Iproviders Ihave Ibeen Iscrambling Ito Ikeep Ivehicle Imechanical Iproduction Isystems
I murmuring Ihowever IMarch Ihas Iseen Ithe Ibusiness Imake Ipurposeful Imove, Iin Ia Istate Iof
I harmony Iwith Igovernment Iwarnings, Ito Iguard Iits Ifaculty.

Much Ithe Isame Ias Isome Iother IAutomobile Iorganization Ieven Iin IIndia Ieven ITata Iengines Ihad
I an Iextraordinary Ieffect Ibecause Iof Ithe ICorona Iinfection. IThe Ipandemic Idominatingly Iaffected
I on IProduction, Idisconnected Ideals Iand Iadministrations, Ishare Icosts Iand Ivery Ilittle Ion Ibusiness
I and ILayoffs. INot Iat Iall Ilike Inumerous IIT Ifirms Iwhich Ipicked Ito Icutbacks Iof Itheir
I representatives Ito Ispare Ithemselves Ifrom Ithe Iactivated Imisfortunes ITata Iengines Ididn't Ilay Ioff
I any Iof Itheir Iworkers Iand Iadjusted Ian Ialternate Isystem Ito Idefeat Ithe Imisfortunes Ihowever Ithe
I misfortunes Iwere Iobvious.

69
Major impactsI

The Isales Iwas Idropped Iby I35 Ipercent

Tata Imotors Iannounced Isaying Iworldwide Iwholesales Iof Iall Iits Ipassenger Ivehicles Istood I26
I percent Ilower Ithan Iexpected.

Tata Imotors Ihas Iannounced Ifurther Idroop Iin Iits Iworldwide Imarketing Iprojections. IThe
I organization Ihas Idischarged Ia Istamen Isaying Iits Igathering Iworldwide Iwholesales, Iincluding
I Jaguar ILand IRover Iremained Iat I2,31,929 Iunits Iin Ithe IJanuary-March Iquarter, Ilower Iby I35
I percent Icontrasted Iwith IQ4 Ifigures Iin I2019.

Tata Imotors Isaid Ithat Ithe Iworldwide Iwholesales Iof Iall Ipassenger Ivehicles Iin Ithe Ifinal Iquarter
I of I2019-20 Iwere Iat I1,59,321 Iunits. IThis Iis Ilower Iby I26 Ipercent Ifrom Ia Isimilar Iperiod Ia Iyear
I back.

Jaguar ILand IRover Icould Isell Ijust I1,26,979 Iunits Iin Ithis Iperiod. IJaguar Iwholesales Ifor Ithe
I quarter Iwere I32,940 Iunits, Iwhile ILand IRover Iwholesales Iwere Iat I94,039 Iunits.

In Ithe Ibusiness Ivehicles Isection, Iworldwide Iwholesales Iof Iall ITata IMotors Iand ITata IDaewoo
I go Iin IQ4 IFY20 Iwere Iat I72,608 Iunits, Ilower Iby I49 Ipercent Ifrom Iit IQ4 Ifigures Ia Iyear Iago.

For Imost Ipiece Iof Ithe IQ4, Ideals Iof Iall Ivehicle Ifabricating Iorganizations Ihit Iits Ileast Iebb
I because Iof Ithe Icontinuous Icoronavirus Ipandemic. IIn IMarch, ITata IMotors Isold Ia Isum Iof
I 12,924 Ivehicles Iin IIndia, Icontrasted Iwith I74,679 Iunits Ithe Iorganization Isold Iin Ia Isimilar
I period Iin I2019

Impact in Domestic market

I I I

In Ithe Ilocal Imarket, ITata IMotors Iretailed I11,012 Iunits Iin IMarch I2020, Ias Iagainst I68,727
I vehicles Iin IMarch I2019. IThis Ilegitimately Imeans Ia Ifall Iof I84%. I

Tata IMotors Ion IWednesday Ireported Ithat Iit Ihas Irecorded Ian Iuncommon Ifall Iregarding
I generally Ispeaking Ideals Ifor Ithe Ilong Istretch Iof IMarch Idue Ito Ithe Icoronavirus Ilockdown.

The Iorganization Isold Ia Isum Iof I12,924 Ivehicles Ia Imonth Iago Iwhen Icontrasted Iwith Ithe I74,679
I units Isold Iin Ithe Irelating Imonth Iof I2019. I
In Ithe Iresidential Imarket, ITata IMotors Iretailed I11,012 Iunits Iin IMarch I2020, Ias Iagainst I68,727
I vehicles Isold Iin IMarch I2019. IThis Ilegitimately Imeans Ia Ifall Iof I84%. IAs Ifar Ias Iyearly Ifigures,

70
I the Iorganization Ifigured Iout Ihow Ito Isell I4,42,052 Iunits Iin Ithe Ilocal Imarket Iin IFY20, Iin
I contrast Iwith Ithe I6,78,835 Iunits Isold Iin IFY19, Iit Iwas Ian Iimmediate Ihit Iof I- I35% Ideals. IThe
I local Ipassenger Ivehicles I(PVs) Ideals Iwas Isomewhere Iaround I68% Iin IMarch I2020 Ias Ithe
I organization Isold Ijust I5,676 Iunits, Ias Iagainst I17,810 Iunits Iin IMarch I2019. IThe Iyearly
I residential Ipassenger Ivehicles Ideals Iendured Ia Ishot Iof I38% Ias ITata Isold I1,31,197 IPV Iunits Iin
I FY20, Ias Iagainst I2,10,143 Iunits Iin IFY19. IThen Iagain, ITata Ihas Iadditionally Ireported Ithat Iit
I has Iabout Iexhausted Iits IBS I4 Istock Iwhich Iis Iobviously Ia Ipositive Isign Ithinking Iabout Ithat
I greater Ipart Iof Ithe Iautomakers Iare Iconfronting Igenuine Idifficulties Iwith Irespect Ito Ia Isimilar
I issue.

Mayank IPareek, IPresident, IPassenger IVehicles IBusiness IUnit, ITata IMotors ILtd. Isaid,
I “Vehicle Isales Iwas Iaffected Iby Ithe ICovid-19 Ioutbreak Iand Ithe Isubsequent Inationwide
I lockdown. IHowever, Ithe Icustomer Iresponse Ito Iour Inewly Ilaunched Imodels I– Ithe IAltroz Iand
I the Irefreshed IBS I6 Irange Iis Iencouraging. IOur IBS I6 Ivehicle Istock Iis Inear Izero Iin Ithe Ientire
I network. II Iwould Ibe Ihanding Iover Ito IMr. IShailesh IChandra Iwho II Iam Isure Iwill Itake Ithe IPV
I team Iand Ithe Ibusiness Ito Ithe Inext Ilevel, Iby Idelivering Ian Iexciting Icustomer Iexperience Iand
I building Ion Ithe Istrength Iof Ithe INEW IFOREVER Iproduct Iportfolio."

Referring Ito Iextreme Ifree Iincome Iissues, Iglobal Irating Iorganization. IFitch Ihas Iminimized Ithe
I evaluations Iof ITata Iengines Ito I'B' Iand Ifurthermore Imodified Idown Ithe Iattitude Itoward Ithe
I organization Ithat Iclaims Ithe Imarquee IBritish Ibrands IJaguar ILand IRover Ito Inegative Ifrom
I stable. IThe Ioffice Isees ITata Iengines Imerged Iincome Ito Idecay Iby I10 Ipercent Iin IFY21 Ibecause
I of Ithe Iimpact Iof Ithe Ipandemic-related Ishutdown, Iwhich Imay Iascend Iby I8 Ipercent Iin IFY22

Company’s Ratings Downgraded

I II

S&P Idowngraded ITata Imotors Iratings

S&P IGlobal Ievaluations Ihas Iminimized ITata Imotors Ito Iprogressively Ihelpless Iagainst Inon-
instalment Igrade I'B' Ireferring Ito Imore Ivulnerable Ithan Ianticipated Icredit Imeasurements
I inferable Ifrom Ithe Iinterruptions Iand Ifinancial Ieffect Ifrom Ithe Icoronavirus Ipandemic.

The Ievaluations Iorganization Iwhich Ihad Ibefore Iappraised ITata Iengines IB+ Ihas, Ianyway Istayed
I with Ithe Ipoint Iof Iview Itoward Ithe Istable.

71
‘The Ieffect Iof ICovid-19 Ion Ithe Iworldwide Icar Imarket Iwill Imake Ian Ienormous Iimprint Iin Ithe
I ongoing Igreat Iadvancement Ithat IJLR's Iadministration Ihas Imade Iin Iguiding Ithe Ibusiness Iback
I to Ibenefit Iand Iimproving Icredit Imeasurements. IThus, Ithis Iwould Ipostpone Ithe Iimprovement
I we Ihad Iexpected Iin ITata Iengines I'credit Iprofile' IS&P Isaid Iin Ian Iannouncement. IIt Ifurther Isaid
I the Ipast I'B+' Irating Ion ITata Iengines Iwas Ipredicated Ion Idesire Ithat Iincomes Iand Inet Irevenues Iat
I both IJaguar ILand IRover Iand ITata Iengines IIndian Itasks Iwould Iimprove Iconsistently Iin Ifiscals
I 2020-2022.

"Indeed, Ieven Ibefore Ithe IVovid-19 Iflare-up, IJLRs Ideals Ivolumes Ifor Ifinancial I2020 Iwere
I probably Igoing Ito Idecrease, Iwhile Ithe IIndian Iactivities Iwere Iinfluenced Ifundamentally Iby
I basic Ichanges Iin Ithe Ibusiness Ivehicle Iportion Iand Ian Ieasing Iback Ieconomy", Iit Iexpressed.

Fitch downgrades Tata motors to ‘B’ on Covid-19 impact

I I I I I I I I

Organization Isays ICovid-19 Iwill Idisturb Ifirms IIndian Iactivities Iand Ifurthermore Isway Ikey
I auto Iadvertises Ial- Iinclusive Ithat Iare Iserved Ithrough Iits IUK-based Ifirm. IJaguar ILand IRover.

Rating Iorganization IFitch Ihas Iminimized ITata Imotors ILtd.’s Ilong Ihaul Iguarantor Idefault Irating
I from I'BB-' Ion Ialtogether Ilower Iproductivity Iand Iincome Idesires Iover Ithe Icouple Iof Iyears. IThe
I viewpoint Iis Inegative.

The Iagency Isaid ICovid-19 Iwill Iaffect Irequest Iand Ilead Ito Iinterruption Iin ITata Imotors IIndian
I tasks. IKey Iauto Iadvertises Iinternationally Ithat Iare Iserved Ithrough Iits Icompletely Iclaimed IUK-
based Iauxiliary, IJaguar ILand IRover Icar Iplc, Iwill Ilikewise Ibe Iaffected.

Moody’s puts Tata motors on review for downgrade

I I I I I I I

The Icompany's Icorporate Ifamily Ievaluating Iand IBa3 Isenior Idebt Iwithout Icollateral Irating Ihave
I been Iput Ion Isurvey Ifor Idownsize. IWorldwide IFICO Iassessment Iorganization IMoody's
I financial Ispecialists Iadministration Ihas Iput ITata Imotors ILtd Ion Isurvey Ifor Idownsize, Ireferring
I to Ipowerlessness Iof Ithe Iorganization's Ias Iof Inow Ifeeble Icredit Iprofile Iin Ithe Imidst Iof Ithe
I covid-19 Ioutbreak Iall Iaround.

72
Statement of Tata motors on Covid-19
I I I I I

In Ithe Iwake Iof Igetting Ithe Irates Idownsized Iby Idifferent Iorganizations Ibecause Iof Ithe
I organizations Ilanguid Iexecution Idue Ito ICovid-19 Inow ITata Imotors Iis Iconsistently Iobserving
I the Iadvancing Icoronavirus Icircumstance Iintently Iand Ireacting Iproperly Ias Iper Iapplicable
I government Iprerequisites Iand Iguidance Iin IChina Iand Idifferent Ilocales Iit Iworks.

Their Iprimary Igoal Ihas Ibeen Ithe Iwellbeing Iand Isecurity Iof Itheir Iworkers. IShanghai-based IJLR
I China Iand IChery IJaguar ILand IRover Istaff Ihave Ibeen Itelecommuting Isince Ithe Ifinish Iof Ithe
I lunar Ioccasion Iand Ithe Iworkplaces Iand IJV Iplant Irevived Iin Ithe Iseven Iday Istretch Iof Ithe I24th
I February. ICreation Iwill Ibe Iincrease Ias Ithe Iquantity Iof Irepresentatives Icoming Iback Ito Iwork
I and Irequest Iincrements

Proposed actions taken by Tata motors

I I I I I

Tata Imotors Iissues ICovid-19 Iadvisory Ifor Iits Iemployees

In Ia Icorrespondence Ito Iits Iworkers, Ithe Iorganization Ihas Isuspended Iall Iuniversal Itravel Iand
I confined Ihousehold Ivoyaging Ias Iwell.

In Ithe Iwake Iof Ideveloping Inumber Iof Icrown Iinfection Icases, IThe ITata Iengines Ion IFriday Igave
I Covid-19 Iwarning Ifor Iits Iworkers. IAs Iindicated Iby Ithe Iwarning Inotification Isurveyed Iby IET
I Auto, Ithe Iorganization Ihas Isuspended Iall Iglobal Itravel Iwhile Iresidential Ivoyaging Igrants
I including Iopen Ivehicle Ineeds Ithe Iendorsement Iof Itheir Iparticular IEx Icom Ipart. IFurther, Iall Ithe
I instructional Icourses, Imeeting Iincluding I20 Ior Imore Iindividuals Ijust Ias Iouter Iand Iinterior
I occasions Ihave Ibeen Irequired Ito Ibe Ipostponed Iuntil Ifurther Inotification.

The Icompany's Iemployees Ihave Iadditionally Ibeen Iencouraged Ito Iconnect Iwith Ithrough Ivirtual
I gatherings Ias Iall Ithe Iguests Ihave Ibeen Iconfined Io ITata Iengines Iconstrained Idestinations. IIn
I any Icase, Ithe Iorganization Isees Irestricted Ieffect Iof Iinfection Ion Itheir Ihousehold Iorganizations
I and Iwill Ibe Iintently Ichecking Ithe Icircumstance Igoing Ifurther. I"With Isome Iadaptability Iin Ithe
I blend I(models, Itrim Ilevels) Ithe Ipresent Iperceivability Iensures Icreation Ivolumes Iup Ito Imid-
March. IThe IFurther Iarranging Iskyline Icontains Ia Ifew Ivulnerabilities Iwhich Iare Irelied Iupon Ito
I be Imoderated Ito Ia Ihuge Idegree, Ithe Icircumstance Icould Iprompt Iconstrained Ivolume
I misfortunes Iin Ithe Ifinal Iquarter" ITata Imotors Isaid.

73
Implementing work-from-home policy for staff
I I I I

Tata Imotors Iasked Itheir Istaff Iin Ioffice-based Ijobs Iat Icentral Istation Iand Iprovincial Iworkplaces
I including Itheir Ioutsider Istaff Ito Itelecommute Ias Ia Iprudent Istep Iagainst Ithe Icoronavirus
I disease. ITata Imotors Iis Ionly Ione Iamong Ivarious Iorganizations Iall Iaround Iand Iin IIndia Ito
I receive Itelecommute Iculture Iin Ithe Iwake Iof Ipandemic. IIn Ian Iinside Icorrespondence Ito Ithe
I organization Istaff, Ithe IMD Iand ICEO Iof ITata Iengines IGuenter IButschek Isaid Ithat Iin Ithe Icourse
I of Irecent Iweeks, Ithe Iorganization Ihas Ifound Ia Iway Ito Imaintain Ia Istrategic Idistance Ifrom Ithe
I spread Iof Iinfection.

employees Iin Ioffice-based Ijobs, Iincorporating Ioutsider Istaff Iin Iorganization IHQ Ideals Iand
I showcasing IHO Iin Iempowering Icapacities Iin Ilocal Iworkplaces Iand Ibuy Igroup Isituated Iin IPune
I will Itelecommute. IThey Iare Irelied Iupon Ito Istay Iassociated Iand Itake Ian Iinterest Iin Ievery Isingle
I authority Icommitment Iremotely Iduring Iworking Ihours. IThe Iorganization Ihad Iestablished Ia
I group Ito Iscreen Iand Istart Iactivities Ito Ilessen Ihazard Ito Irepresentatives Iand Ihas Ibuilt Iup Ia Ithree-
level Ireaction Iplan Idependent Ion Ithe Irate Iof Idisease Iin Iurban Icommunities Iit Iworks Iit Ior Ihas
I producing Ilocales.

Facility shutdowns
I

Shut down operations at Pune unit

I I I I I

Tata Imotors Iannounced Iit Iwas Ipreparing Ito Itemporarily Ishut Idown Iits Ioperations Iat Iits IPune’s
I plant I Iwhich Iis Ithe Ibiggest Ifactories Ifrom IMarch I24th I“If Ithe Isituation Iwarrants” IThe
I announcement Iby Ithe Iauto Imanufacturer, Iwhich Imakes Itrucks Iand Ipassenger Icars Iat Iits IPune
I factory.

“We Ihave Ibeen Imonitoring Ithe Isituation Iclosely Iand Iall Idata Iseem Ito Ipoint Iout Ithat
I Maharashtra Ihas Ibeen Imost Iimpacted Iby Ithe Ivirus. IIn Ithe Iinterest Iof Isafety Iof Iour Iemployees
I in Ithe Istate I, Iwe Ihave Idecided Ito Irapidly Iscale Idown Iactivities Iat IPune Isite Ito Iget Ito Iskeletal
I operations Iby Ithe Iend Iof IMonday, I23rd IMarch I2020, Iand Ibe Iready Ifor Iplant Iclosure Iby Ithe Iend
I Tuesday IMarch I24th,2020 Iof Ithe Isituation Iwarrants, I“a Istatement Iby ITata Imotors Iread.

74
Shutdown of Maharashtra plant
I I I

Tata Imotors Ialso Ishut Idown Itheir Ioperations Iat Ione Iits Icar Ifactory Iin Ithe Iwestern Istate Iof
I Maharashtra I Iwhich Iis Ione I Iamong Ithe Ifacilities Iwhich Iwere Ishut Idown Iand Iwilling Ito Iextend
I it Iif Ithe Icorona Ivirus Ideepens.

International Factory shutdowns I I

Jaguar ILand IRover Itemporarily Isuspends Iproduction Iat Iplant Iat Iits ISlovakia-based INitra Iplant I
I curb Ithe Ispread Iof Ivirus.

JLR suspends production in UK

I I I I

Jaguar ILand IRover Itemporarily Isuspended Iproduction Iat Iits IUK Imanufacturing Ifacilities Ito
I curb Ithe Ivirus Ispread.

It Ialso Iintends Ito Iresume Iproduction Iin Ithe Iweek Iof IApril I20 Iwhilst IJLRs Imanufacturing Iplants
I in IBrazil Iresumed Itheir Ioperations Iat Ithat Itime.

In Ia Istatement. ITata ISons Ichairman IN IChandrasekaran Isaid Ithat Iall Igroup Icompanies Iwould
I make Ifull Ipayments Ito Itemporary Iand Idaily Iwage Iearners Ifor Ithe Imonths Iof IMarch Iand IApril-
I even Iif Ithey Iwere Inot Iable Ito Icome Iinto Iwork Idue Ito Iquarantine Imeasures, I Isite Iclosures Ior
I plant Ishutdowns

Services rendered by Tata Group to its employees & staffs amidst

I I I I I I I I I I

I Covid-19 outbreak I

Tata group to fully compensate temporary staffs

I I I I I I

Tata Igroup Icompanies Iincluding ITata Imotors Iwill Iensure Ifull Ipayment Ito Itemporary Iworkers
I and Idaily Iwage Iearners Ifor IMarch, IApril Iand IMay Ieven Iif Ithey Iare Inot Iable Ito Icome Ito Iwork
I due Ito Ithe Iquarantine Imeasures Ior Isite Iclosures Iamid Ithe Icoronavirus Ioutbreak.

Terming ICovid-19 Ioutbreak Ia Imajor Iglobal Icrisis, IChandrasekaran Isaid Ithe Ination Ineeds
I collective Iefforts Iin Ithese Itough Iand Iuncertain Itimes.

75
At Ithe ITata Igroup, Ithey Ihave Iasked Iall Iour Icompanies Ito Iexercise Iextreme Icaution. IThe Ihealth
I and Isafety Iof Iour Iemployees, Itheir Ifamilies Iand Iour Isuppliers, Ivendors Iand Ilarger Iecosystem Iis
I of Iparamount Iimportance, IHe Isaid.

They Ihave Imade Iall Ithe Iarrangements Ito Iadopt Iwork Irapidly Iand Iextensively Ifrom Ihome Ito
I ensure Ithat Iemployees Itravel Ionly Iin Ithe Imost Iessential Icases, Iexcluding Isituations Iin Iwhich
I they Iare Iinvolved Iin Ithe Idelivery Iof Iproducts Iand Iservices Iof Ithe Ilarger Ipublic Igood.

In Icase Iof Imicro, Ismall Iand Imedium Ienterprise I(MSME) Isector, ITata Igroup Icompanies Ifollow
I a Ipolicy Iof Imaking Itimely Ipayments Iof Ilegitimate Idues.

CSR activities undertaken by Tata motors amid Covid-19 outbreak

I I I I I I I I

Focusing Ion Isupply Iof Iessentials Ito Icommunities Imost Ieffected Iby ICovid-19 Ilockdown

Tata Imotors Ihas Ibeen Ifocusing Ion Ithe Isupply Iof Iessentials Ito Ithe Icommunities Imost Ieffected
I by Ithe ICovid-19 Ilockdown Iby Ifacilitating Iproduction Iof Iprotective Igears Iand Imedical Ikits Ito
I curb Ispread Iof ICovid-19 Ias Ipart Iof Iits ICSR Iinitiative. IThe Icompany Ihas Iso Ifar Iprovided Iover
I 25000 Ipackets Iof Icooked Imeals Iand Iover I5000 Igrocery Ikits I(ration) Ito Imigrants, Istranded
I communities, Iurban Islums, Idrivers, Ico-drivers, Imechanics, Icontractual Iand Itemporary
I workers, Iamong Iothers Ias Ipart Iof Ithe Iinitiative. IIn Iaddition Ito Ithis Ithe Icompany Ihas Ialso
I established Itwo Ihelpline Inumbers Ifor Itemporary Iand Icontractual Iworkmen Ifor Ifood Irelated
I requests Iin ILucknow Iand Iis Iproviding Iwater Ito I19 Ipolice Istations Iand Itraffic Ipolice Iin IPune.

Tata Imotors Ialso Isaid Iit Ihas Ipartnered Iwith IIndian Ioil Icorporation Ito Idistribute Ifood Ipackets
I and Ipersonal Iprotective Ikits Ito Itruck Idrivers Ivisiting Icompanies I“Saarthi IAaram IKendra
I (SAK)” Iin INarsipura Inear IBengaluru Iand IBawal Inear IGurugram.

Besides, Ithe Icompany Iis Isupporting Iand Iassisting Iself-help Igroups Ito Imanufacture Ihome-made
I certified Imasks Iand Isanitisers Ifor Idistribution Iacross Ihospitals, Ivendors, Ihealth-workers,
I police Istations, Iarmy Ipersonnel Iand Iin Icommunities Iaround Ithe Icompany’s Iplants. ITill Idate,
I the Icompany Ihas Ienabled Ithe Imanufacturing Iof I17000 Ihome-made Icertified Imasks, Iadding Ito
I that Iit Ialso Ihas Ifacilitated IN95 Imasks, Isanitisers Iand Ipersonal Iprotective Iequipment Ikits Ithat
I are Ibeing Idistributed Ito Imunicipal Ihospitals. IFurther, Iit Ihas Iconducted Ihealth Icheck-ups Iand
I provided Ibasic Imedication Ito Iover I500 Istranded Itruck Idrivers Iand Ico-drivers Iin IBelur,
I Dharwad, Iit Isaid.

76
Tata commences airlifting of critical supplies through Tata international
I I I I I I I I

Tata Itrust Ihas Icommenced Iairlifting Iof Icritical Isupplies Ifor Icountry-wide Ideployment Ito
I support IIndia’s Iof ITata IInternational Ilimited, IThe Igroup’s Iinternational Itrading Iand
I distribution Icompany.

The Iitems Ibeing Iimported Icomprise Ipersonal Iprotection Ikits Iincluding Icoveralls Imasks, Igloves
I and Igoggles I Iand Isurgical Imasks Iof Idifferent Igrades. IThe Isupplies Iwas Itransported Ithrough
I Air IIndia Iaircrafts. IThe Iconsignments Iwere Iabout Ione Icrore Iindividual Iunits Iand Ithe Itotal
I value Icommitted Iwas I150 Icrores.

Educating masses for containment and prevention

I I I I I

Tata Imotors Iis Iemphasizing Ion Igood Ihealth Ipractices Iby Iputting Iup Ibanners Iand Iother Irelated
I information Imaterial Ito Ispread Iawareness Iin Islums Iand Iamongst Ilow-income Igroup
I communities. IThe Icompany Iis Ialso Ileveraging Iits Isocial Imedia Iplatforms Ito Ispread Iawareness
I about Isimple Iand Ieasy Iprecautionary Imeasures Ione Ican Iadopt Ito Istay Iunaffected Iand Ihealthy.

The ITata Iintervention Ifollows Ithe IChairman, IRatan IN. ITata’s Istatement Ithat I“Urgent
I emergency Iresources Ineed Ito Ibe Ideployed Ito Icope Iwith Ithe Ineeds Iof Ifighting Ithe ICovid I19
I crisis, Iwhich Iis Ione Iof Ithe Itoughest Ichallenges Ithe Ihuman Irace Iwill Iface”

Current ScenarioI I

Tata Imotors Iannounced Ia Icalibrated Irestart Iof Imanufacturing Ioperations Ifor Iboth Icommercial
I and Ipassenger Ivehicles Ifrom Iits Iplants Ilocated Iat IPantnagar I(Uttarakhand) I Ibeginning Ilast
I week Iand Ifrom ISanand I(Gujarat). ITata Imotors Iplants Iin ILucknow I(Uttar IPradesh), IDharwad
I (Karnataka), IJamshedpur I(Jharkand) Iand IPune I(only Ifor Iambulance Ivehicle Imanufacturing)
I are Iin Ifinal Istage Iof Ireadiness Iand Iexpect Ito Ibegin Iproduction Iover Ithe Inext Ifew Idays I. IThis
I commencement Iof Ioperations Ifollows Ireceipt Iof Iall Inecessary Iapprovals Ifrom Irelevant
I government Iauthorities.

They Iare Iplanning Ito Irestart Ioperations Iwith Ilimited, Iessential Istaff Iin Ieach Iplant, Iadhering Ito
I all Imandated Isafety Inorms Iwhile Iefficiently Imeeting Ioperational Irequirements. IThe Isupport
I and Icooperation Iextended Iby Ilocal Iauthorities, Istate Iand Icentral Igovernment, IUnion Ipartners

77
Every Iemployee Ire-joining Ithe Iworkplace Iis Irequired Ito Idownload Iand Iuse Ithe Imandatory
I ‘Aarogya ISetu’ Iapp. IEmployees Iare Ialso Irequired Ito Iperiodically Icheck-in Iand Ideclare Ithe
I status Iof Itheir Iown, Ias Iwell Ias Itheir Ifamily’s Ihealth Ion Ithe ITata Imotors Iin-house Ihealth Itrack
I portal. IIn Iaddition, Iall Ithe Iemployees Iand Ivisitors Ientering Iand Iexiting Ithe Iplant Ipremises Iare
I also Ibeing Iscreened Ifor Itemperature Ichecks. ITata Imotors Ihas Iused Ithe Ilockdown Itime Ito
I design Inew Iways Iof Iworking Irespecting Ithe Imandatory Isafety Inorms Iand Iaggressively
I adopting Idigital Ivia Irigorous Isessions Iconducted Ivirtually, Iemployees, Idealers Iand Isuppliers
I partners Iwere Ioriented Ito Ithis Iand Itrained Ion Ithe Ifeature Irich IBSVI Iofferings Ifor Ieffectively
I selling Iand Iengaging Iwith Icustomers.

Nearly I200 Idealerships Iand I300 Iworkshops Ifor Ipassenger Ivehicles Iand Iover I400 Isales Ioutlets
I and I885 Iworkshops Ifor Icommercial Ivehicles Ihave Ibegun Ioperations I Iwith Ia Inew Iset Iof
I standard Ioperating Iprocedure I(SOPs) Idefining Iminimal Iinteractions Iand Imaintaining Iprudent
I social Idistance Iwhile Iengaging Iwith Icustomers. IOver Ithe Ilast Ifew Idays, Icustomers Ihave
I initiated Inew Ibookings, Ideliveries Iof Ipassenger Ivehicles Ihave Icommenced, Iand Iworkshops Iare
I seeing Iincreasing Iin Iflow Iof Ivehicles Ifor Iservicing. IAll Idiscussions Iwith Icustomers Iare Ibeing
I done Ivirtually Iusing Idigital Itools Iand Iany Imeetings, Iif Inecessary, Iare Ibeing Iconducted Iwith
I prior Iappointments Iand Ipost Iverification Iof Iall Irequirements. IDocuments Ifor Ivehicle Iinsurance
I and Iregistration Iare Ibeing Icollected Ivia Imail Ior Ispecifically Iinstalled Idrop Iboxes Iand Ivehicle
I deliveries Iare Ibeing Idone Ionly Iafter Iall Iformalities Iare Icompleted. ICustomer Ivehicles Iarriving
I at Iworkshops Ifor Irepairs Iand Iservicing Itoo Iare Icompletely Isanitised Ibefore Ibeing Ihanded Iover
I post Iservice.

Test Idrives Iare Ibeing Ioffended Ion Irequest Iand Iwith Iprior Iappointment Iat Icustomer’s Ipreferred
I location. IOnly Ione Iperson Idrives Ithe Ivehicle Iwith Ia Idealer Istaff Imember Isitting Iin Ithe Irear Iseat
I to Iavoid Iany Iphysical Icontact. IFor Iits Icommercial Ivehicle Icustomers, ITata Imotors Iextended Iall
I possible Itechnical Isupport Ito Ikeep Ivehicles Irunning Iduring Ithe Ilockdown. IAdditionally,
I timelines Ipf Ivehicle Iwarranty, Ifree Iservices Iand ITata ISuraksha IAMC Ihave Ialso Ibeen
I extended. ITo Isupport Ilocal Icommunities, ITata Imotors Iis Iactively Iproviding Iessentials Ito
I sections Iof Isociety Imost Iimpacted Iduring Ilockdown. ISupplies Iof Ifood, Imasks, Iand Isanitisers
I along Iwith Iinformation Ikits Ion Iprecautions Ito Ibe Itaken Ifor Ihealth Iand Ihygiene, Ihave Ibeen
I arranged Ifor Ithousands Iof Ifrontline Ihero Itruck Idrivers, Itransporting Igoods Iand Iservices Iin
I multiple Ilocations Iacross Ithe Icountry. IFurther, Ivia Iseveral Ichannels, Ithe Icompany Iis Ialso
I providing Ieducational Imaterial Iin Iregional Ilanguages Ito Iraise Iawareness Iamongst Ithe Ilowest
I strata Iof Ithe Isociety Iregarding Iprecautions Ito Ibe Itaken Ito Icombat ICOVID-19.

78
 Chapter-6
Data Analysis
I

&
I Interpretation

79
Ratio Analysis
I

According Ito IJ. IBatty I“The Iterm Iaccounting Iratio Iis Iused Ito Idescribe Isignificant Irelationships
I which Iexist Ibetween Ifigures Ishown Iin Ithe Ibalance Isheet, Iin Ia Iprofit Iand Iloss Iaccount, Iin Ia
I budgetary Icontrol Isystem Ior Iin Iany Iother Ipart Iof Ithe Iaccounting Iorganization”. IThe
I accounting Iratios Iindicate Ia Iquantitative I Irelationship Iwhich Iis Iused Ifor Ianalysis Iand Idecision
I making. IIt Iprovides Ibasis Ifor Iinter-firm Ias Iwell Ias Iintra-firm Icomparison. IThe Iratios Iwill Ibe
I effective Ionly Iwhen Ithey Iare Icompared Iwith Iratios Iof Ibase Iperiod Ior Iwith Istandards Ior Iwith
I the Iindustry Iratios. IThe Ifinancial Istatement Iviz Iincome Istatement, Iand Ibalance Isheet Ireport
I what Ihas Iactually Ihappened Ito Iearnings Iduring Ia Ispecific Iperiod Iand Ipresents Ia Isummary Iof
I financial Iposition Iof Ithe Icompany Iat Ia Igiven Ipoint Iof Itime. IThe Istatement Iof Iretained Iearnings
I I , reconciles Iincome Iduring Ithe Iyear Iand Iany Idividends Idistributed Iwith Ithe Ichange Iin Iretained
I earnings Ibetween Ithe Istart Iand Ithe Iend Iof Ithe Ifinancial Iyears Iunder Istudy.

Here Ithe Ifollowing Iratios Iare Ibeing Icompared Iamong ITata Imotors ILtd, IMaruti ISuzuki ILtd Iand
I Mahindra I& IMahindra Iwith Ithe IBalance Isheet Iand IProfit I& Iloss Iaccount Ifor Ithe Iyear I2019

1) ILiquidity Iratio: IThe ILiquidity Iratio Imeasures Ithe Iliquidity Iof Ithe Ifirms Iand Iits Iability Ito
I meet Iits Imaturing Ishort-term Iobligations. ILiquidity Iis Idefined Ias Ithe Irealise Ivalue Iin Imoney,
I the Imost Iliquid Iof Iassets, Iit Iis Ithe Iability Ito Imeet Iall Ipresent Iand Ipotential Idemands Ion Icash
I from Iany Isource I Iin Ia Imanner Ithat Iminimizes Icost Iand Imaximises Ithe Ivalue Iof Ithe Ifirm. IThus,
I corporate Iliquidity Iis Ia Ivital Ifactor Iin Ibusiness.

a) Current Iratio
b) Quick Iratio
c) Absolute Iliquid Iratio
d) Defensive-interval Iratio

Current Iratio:

This Iratio Imeasure Ithe Isolvency Iof Ithe Icompany Iin Ishort-term. ICurrent Iassets Iare Ithose Iassets
I which Ican Ibe Iconverted Iinto Icash Iwithin Ia Iyear. ICurrent Iliabilities Iand Iprovisions Iare Ithose
I liabilities Ithat Iare Ipayable Iwithin Ia Iyear.

Current I assets
Current I ratio=
Current I liabilities

80
 The ITable Ishowing Icomparative Icurrent Iratio

Company Current Iassets Current Iliabilities Ratios

Tata Imotors ILtd 11796.12 18220.99 0.6473
Maruti IUdyog ILtd 7316.10 14000.70 0.5225
Mahindra I& IMahindra 15087.10 13794.84 1.093677
Ltd
I

The Icurrent Iratio Ilevels Ithe Iability Iof Ithe Ifirm Ito Imeet Iall Ithe Iobligations Imaturing Iwithin Ia
I year. IConventionally Iit Iis Isaid Ithat Ithe Icurrent Iratio Ishould Ibe I2:1. IIt Imeans Ithat Ifor Ievery Ione
I rupee Ifor Icurrent Iliability Ithe Ifirm Imust Ihave Itwo Irupees Iworth Iof Icurrent Iassets. IThe Ireasons
I for Ithis Iconventional Inorm Iis Ithat, Iall Ithe Icurrent Iassets Icannot Ibe Iconverted Iinto Icash
I immediately.
I

The Ichart Ishowing Icomparative Icurrent Iratio:

Current Iratios
1.2

0.8

0.6

0.4

0.2

0
Tata Motors Ltd Maruti suzuki Ltd Mahindra & Mahindra
Ltd

Interpretation:

A ICurrent Iratio Iof I2:1 Iindicates Ia Ihighly Isolved Iposition. IA Icurrent Iratio Iof I1:33:1 Iis
I considered Iby Ibanks Ias Ithe Iminimum Iacceptable Ilevel Ifor Iproviding Iworking Icapital Ifinance.
I M&M Ihave Ia Ipositive Icurrent Iratio I(1.0936) Icomparatively Ias ITata Imotors Iand IMaruti ISuzuki
I has Inegative Iworking Icapital Ias Itheir ICurrent Iliabilities Iexceeds Icurrent Iassets. IMaruti ISuzuki
I has Iless Icurrent Iratio I(0.5225).

81
Quick Iratio/ IAcid Itest Iratio:

Quick Iratio Iis Iused Ias Ia Imeasure Iof Ithe Icompany’s Iability Ito Imeet Iits Icurrent Iobligations.
I Since Ibank Ioverdraft Iis Isecured Iby Ithe Iinventories, Ithe Iother Icurrent Iassets Imust Ibe Isufficient
I to Imeet Iother Icurrent Iliabilities.

Current I assets−Inventory
Quick I ratio=
Current I I liabilities

Table Ishowing IComparative Iliquid Iratio

Company Current Iassets- Current Iliabilities Ratios

inventory
Tata IMotors ILtd 7134.12 16994 0.41980
Maruti ISuzuki ILtd 3990.4 12703.4 0.31412
Mahindra I& IMahindra 11247.83 12904.83 0.87153

The IChart Ishowing IComparative Iquick Iratio

Quick Iratios
0.87
0.9
0.8
0.7
0.6
0.42
0.5
0.31
0.4
0.3
0.2
0.1
0
Tata Motors Ltd Maruti Suzuki Ltd Mahindra &
Mahindra

Interpretation:

In Ithis Ichart, IMahindra I& IMahindra Iindicates Ia Ihighly Iposition Iwhen Icompare Ito Ithe Iother
I companies Iwhilst IMaruti ISuzuki Ihas Ithe Ilowest Iquick Iratio.

82
Absolute ILiquid/Super Iquick Iratio

It Iis Ithe Iratio Iof Iabsolute Iliquid Iassets Ito Iquick Iliabilities. IHowever, Ifor Icalculation Ipurposes, Iit
I is Itaken Ias Iratio Iof Iabsolute Iliquid Iassets Ito Icurrent Iliabilities. IAbsolute Iliquid Iassets Iinclude
I cash Iin Ihand, Icash Iat Ibank Iand Ishort Iterm Ior Itemporary Iinvestments.

Absolute I liquid I assets

Absolute I quick I ratio=
Current I liabilities

Absolute Iliquid Iassets=cash Iin Ihand+ Icash Iat Ibank+ Ishort-term Iinvestments

The ITable Ishowing IComparative Iabsolute Iliquid Iratio

Company Cash Iand Short-term Current Ratio

Ibank Iinvestment liabilities
I

Tata Imotors ILtd 1306.61 9537.23 16994.00 0.8536

Maruti ISuzuki ILtd 178.90 3910.5 12703.40 0.3219
Mahindra I& 3731.66 9097.75 12905.84 0.7049
IMahindra

The Icompany’s Iabsolute Iliquid Iratio Iis I0.64:1 Iand Ian Iideal Iratio Iis I0:5:1 Iit Imeans Ithat Imore
I 50% Iof I Icurrent Iassets Iare Ihighly Iliquid. IHence Ithe Icompany’s Iliquidity Iposition Ican Ibe Iable
I to Imeet Iuncertainties Iin Ipayment Iobligations Iof Ishort-term Iliabilities.

The IChart Ishowing Icomparative Iabsolute Iliquid Iratio

83
 Absolute Iliquid Iratio

0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Tata motors Ltd Maruti Suzuki Ltd Mahindra & Mahindra

Interpretation:

The Ichart Iis Ishowing ITata Imotors ILtd Iis Imore Ithan Ithe Iliquid Iliabilities I( I0.8536) Icompared Ito
I the Iother Icompanies. IHence Ithe Icompany Iliquid Iposition Icab Ibe Iable Ito Imeet Iuncertainties Iin
I payment Iobligations Iof Ishort-term Iliabilities Iwhen Iit Iis Icompared Ito Ithe Iother Icompanies.

Profitability Ratios I

The Iprofitability Iratios Iare Ito Ihelp Iassessing Ithe Iadequacy Iof Iprofit Iearned Iby Ithe Icompany
I and Ialso Ito Idiscover Iwhether Iprofitability Iis Iincreasing Ior Ideclining. IThe Iprofitability Iratios
I show Ithe Icombined Ieffects Iof Iliquidity, Iasset Imanagement Iand Idebt Imanagement Ion Iopening
I results

Gross Iprofit Imargin:-

This Iratio Imeasures Ithe Igross Iprofit Imargin Ion Ithe Itotal Inet Isales Imade Iby Ithe Icompany. IThe
I gross Iprofit Irepresents Ithe Iexcess Iof Isales Iproceeds Iduring Ithe Iperiod Iunder Iobservation Iover
I their Icost, Ibefore Itaking Iinto Iaccount Iadministration, Iselling Iand Idistribution Iand Ifinancing
I changes.

Sales−cost I of I goods I sold Gross I profit

IIIIIIIII X I 100 I I I I I I I I I I I I I I I I IOr I I I I I I I I I I I I I I I I I I X 100
Sales Sales

The ITable Ishowing Icomparative IGross Iprofit Iratio

84
 Company Gross Iprofit Sales Ratios
Tata IMotors ILtd 5497.57 69202.76 7.9441
Maruti ISuzuki ILtd 13484.5 86020.3 15.67595
Mahindra I& IMahindra 8184.41 53614.00 15.26543

The IChart Ishows Icomparative IGross Iprofit Iratio

Gross Iprofit Iratios

15.68 15.27
16

14

12

10
7.94
8

0
Tata motors Ltd Maruti Suzuki Ltd Mahindra & Mahindra

Interpretation:

A Ihigh Imargin Ienables Iall Ioperating Iexpenses Ito Ibe Icovered Iand Iprovides Ia Ireasonable Ireturn
I to Ithe Ishareholders. IIn Iorder Ito Ikeep Ithe Iratio Ihigh, Imanagement Ihas Ito Iminimize Icost Iof
I goods Isold Iand Iimprove Isales Iperformance.

From Ithe Iabove Itable Iit Iclearly Ishows Ithat Ithe Igross Iprofit Iratio Iof IMaruti ISuzuki ILtd Iis
I slightly Imore Ithan Iof IMahindra I& IMahindra.

Profit Ion Isales Iratio:-

This Iratio Iindicates I Ithe Iextent Ito Iwhich Iall Iprofits Iwill Igo Iup Ishould Ithe Isales Igo Iup Iby Ia
I specified Iquantum.
85
 Profit I after I tax
Profit I on I sales=
Sales

The Table showing Profit on sales ratio

I I I I I I

Company Profit Iafter Itax Sales Ratios

Tata IMotors ILtd 2020.6 69202.76 0.087196
Maruti ISuzuki ILtd 7500.6 86020.3 0.087196
Mahindra I& IMahindra 4796.04 53614.00 0.089455

The Chart shows the comparative Profit on sales ratio

I I I I I I I I

Profit Ion Isales

0.1
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
Tata Motors Ltd Maruti Suzuki Ltd Mahindra & Mahindra

Interpretation:

In Ithe Iabove Ichart Ithe Iprofitability Iratio Iof I IMahindra Iand IMaruti Iare Ialmost Isame.

Return Ion ITotal Iassets I(ROTA):-

The Iprofitability I Iof Ithe Ifirm Iis Imeasured Iby Iestablishing Irelation Iof Inet Iprofit Iwith Ithe Itotal
I assets Iof Ithe Iorganisation. IThis Iratio Iindicates Ithe Iefficiency Iof Iutilization Iof Iassets Iin
I generating Irevenue.

Net I profits I after I tax

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ROTA= I Total I assets

86
 The ITable Ishowing Icomparative Ireturn Ion Iassets Iratio

Company Profit Iafter Itax Total Iassets Ratios

Tata IMotors ILtd 2020.6 38810.6 5.2063
Maruti ISuzuki ILtd 7500.6 46274.3 16.209
Mahindra I& 4796.04 35176.03 13.6344
I Mahindra

Chart Ishowing Icomparative IReturn Ion Iassets Iratio

R e t ur n Ion Ias s e t s

16.21
13.63

5.21

Tat a Mo t o r s L t d M a r u ti S u z u k i L t d Mah i n d ra &

Mah i n d ra

Interpretation:

Return Ion Itotal Iassets Ithe IMaruti ISuzuki ILtd Iis Ihigher I(16.209) Icompared Ito Ithe Iother
I companies. ITata Imotors Iis Ilow Ireturn I(5.2063) Iwhen Icompared Ito Ithe Iother Icompanies.

Operating Iprofit Iratio

Operating Iprofit Iratio Istudies Ithe Irelationship Ibetween Ioperating Iprofit I(EBIT-Earning Ibefore
I interest Iand Itax) Iand Isales. IThe Ipurpose Iof Ithis Iratio Iis Ito Ifind Iout Ithe Iamount Iof Ioperating
I profit Ifor Ieach Irupee Iof Isales

Operating I profit
O perating I profit I ratio= X 100
Sales

87
 Table Ishowing Icomparative Ioperating Iprofit Iratio

Company Operating Iprofit Sales Ratios

Tata IMotors ILtd 7291.14 69202.76 10.5359
Maruti ISuzuki ILtd 13560.3 86020 15.7641
Mahindra I& 8298.8 53614 15.4787
I Mahindra

The IChart Ishowing Icomparative Ioperating Iprofit Iratio

Operating Iprofit
18
15.76 15.48
16
14
12
10.54
10
8
6
4
2
0
Tata motors Ltd Maruti Suzuki Ltd Mahindra & Mahindra

Interpretation:

A Ihigh Iratio Iis Ian Iindicator Iof Ithe Ioperational Iefficiency Iof Ithe IMaruti ISuzuki ILtd I(15.76)
I compared Ito Iother Itwo Icompanies. IA Ilow Iratio Istands Ifor Ioperational Iefficiency Iof Ithe Ifirm,
I when Icomparing Iwith Iother Icompanies. IThe Ipurpose Iof Ithis Iratio Iis Ito Ifind Iout Iamount Iof
I operating Iprofit Ifor Ieach Irupee Iof Isales. I

Stock Turnover ratio

I I

This Iratio Iestablishes Ithe Irelationship Ibetween Icost Iof Igoods Isold Iand Iaverage Ivalue Iof I
I inventory Iof Istock. IThe Ipurpose Iof Ithis Iratio Iis Ito Ishow Ithe Inumber Iof Itimes Ithe Iinventory Iof Ia
I firm Iis Irotated Iin Ia Iyear. IIt Igives Ian Iindication Iof Ithe Iefficiency Iof Iinventory Imanagement

Sales
Stock I turnover I ratio= X I 100
Inventory

88
 The ITable Ishowing IComparative Istock Iturnover Iratio

Company Sales Inventories Ratios

Tata IMotors ILtd 69202.76 4662.00 1484.401
Maruti ISuzuki ILtd 86020.30 3325.70 2586.532
Mahindra I& 53614.00 3839.27 1396.463
I Mahindra

The IChart Ishowing IComparative Istock Iturnover Iratio

Stock Iturnover Iratio

3000

2500

2000

1500 2586.53

1000 1484.4 1396.46

500

0
Tata motors Ltd Maruti Suzuki Ltd Mahindra & Mahindra

Interpretation:

This Ichart Iis Ishowing Ia Ihigh Iinventory Iturnover Iratio Ifor IMaruti ISuzuki ILtd Iis Ian Iindex Iof
I efficient Iinventory Imanagement Iand Ia Ilow Iratio Ifor IMahindra I& IMahindra Istands Ifor
I comparatively Iinefficient Iinventory Imanagement. IA Ilow Iratio Ialso Iimplies Ithat Ithe Ifirm Ihas
I excess Istock Iin Irelation Ito Iproduction Iand Isales Iwhen Ithe Icomparison Ito Iother Icompanies.

89
Chapter-7
Findings

90
Findings

This Istudy Ihas Ibeen Iundertaken Ibased Ion IImpact Iof ICovid-19 Ipandemic Iand Ithe Ieconomic
I slowdown Ion Ithe Iautomobile Isector Iand Ispecifically Ion ITata IMotors ILtd Iand Icomparison Iof
I financial Ianalysis Ithrough Iratio Ianalysis Itechnique Iwith Ithe Icompanies Isuch Ias ITata IMotors
I Ltd, IMaruti ISuzuki ILtd Iand IMahindra I& IMahindra. IThe Imajor Ifindings Iwith Irespect Ito Ithe
I study Iare Istated Ibelow

 After Iundertaking Ia Iresearch Ion Icurrent IIndian Iautomobile Isector, Iit Iwas Ialready
I affected Iwith Ithe Ieconomic Islowdown Iwith Ithe Ilow Isales Iof Icars Iand Itheir
I performance Igot Ideteriorated Idue Ito Ithe ICovid-19 Ipandemic.
 Though Ithe Icurrent Iratio Iof ITata Imotors ILtd I Iis Iaverage Icompared Ito Iother Itwo
I companies. IMahindra I& IMahindra Ileads Ito Ithe Itop Iposition Iin Ithis Iratio.
 A Iquick Iratio Iof I1:1 Iindicates Ihighly Isolvent Iposition. IMahindra& IMahindra Iagain
I leads Ito Ithe Iposition Iwhilst ITata Iis Iin Ibetween Iand IMaruti ISuzuki Iis Ilow Iliquid Isolvent
I position Icompared Ito Iother Icompanies Ias Ia Isupplement Ito Ithe Icurrent Iratio Iin
I analysing Iliquidity.
 Tata’s Iabsolute Iliquid Iratio Iis Irelatively Ihigh Iand IMaruti ISuzuki Ihas Ilow Iratio
I compared Ito Iother Icompanies.
 The IGross Iprofit Imargin Iof Ithree Icompanies Ishowed Ithat Ithe ITata Ihas Irelatively Iless
I profit Imargin Ithan Iother Icompanies Iand IMaruti ISuzuki Ihas Ihigh Igross Iprofit.
 The INet Iprofit Imargin Iratio Iof IMahindra Iis Ihigh Iand ILow Iof ITata Imotors.
 Return Ion Itotal Iassets I(ROTA) Iof ITata Imotors Iis Iless Ithan Iother Itwo Icompanies Iand
I Maruti ISuzuki Ihas Ihigh IReturn Ion Itotal Iassets.
 Tata Imotors Ihas Ioperational Iinefficiency Ias Iits Iratio Iis Ilower Ithan IMaruti Iand
I Mahindra.
 A Ihigh Iinventory Iturnover Iratio Iis Ian Iindex Iof Iefficient Iinventory Imanagement Iand Ia
I low Iratio Istands Ifor Iinefficiency Iinventory Imanagement. IHere ITata Ihas Imore Iratio
I than IMahindra Iand Iless Ithan IMaruti ISuzuki.

91
Suggestions

92
Suggestions

As Ianalysed Inecessary Isteps Ishould Ibe Itaken Iby ITata IMotors ILtd Ito Iincrease IGross Iprofit
I ratio, Iprofit Ion Isales Iratio, IReturn Ion Itotal Iasset Iratio, IOperating Iprofit Iratio Ito Iimprove
I company Iprofits Iand Ireputation Iand Ifor Ithe Ifuture Imarket Igrowth Iand Ipredominantly Icope Iup
I with Ithe ICovid-19 Isituation Iand Iequity Ishare-holders Ieasy Ito Iinvest Iin Ithis Icompany Iwhen
I compared Ito Iother Icompanies.

The IGross Iprofit Iratio Iwill Ibe Iincreased Iby Isales Iare Ialso Imaximum Ilevel Ito Isell Ithe Iproducts
I and Icompany Igross Iprofit Iratio Iwill Ialso Iimprove. I

Major Recommendations to the Tata motors

I I I I I I

 Identify, prioritize and accelerate cost-out measures across the enterprise.

I I I I I I I I

 Optimize working capital and identify measures to deliver rapid, tangible cash
I I I I I I I I I I

I benefits.
 Revise forecast assumptions; prioritizing downside scenarios given the current level
I I I I I I I I I

I of Imarket Iuncertainty.
 Identify potential sources of collateral to secure access to additional borrowing
I I I I I I I I I I

I solutions Ishould Iactive Iscenario Iplanning Isuggest Ithat Iliquidity Iwill Ibecome Ian Iissue
 Focus on employee safety and care as to avoid any Covid-19 infection and adapt
I I I I I I I I I I I I I

I limited Iworkforce Icapacity.

93
Conclusion

94
Conclusion

The Covid-19 pandemic may be controlled if sufficient precautionary measures

I I I I I I I I I

I are adapted to control the disease. The prediction about pattern of the outbreak in
I I I I I I I I I I I I I

I India may help the policymakers to take comprehensive and necessary action.
I I I I I I I I I I

I The number of deaths may be controlled as compared to any other countries

I I I I I I I I I I I I

I because of the measures which are already being adhered by country.

I I I I I I I I I I

The further study of other sectors like Education, economic conditions, medical
I I I I I I I I I I

I facilities, climatic conditions, religious beliefs etc may strengthen the prediction
I I I I I I I I I

I and help in controlling the outbreak of Covid-19.

I I I I I I I

95
Annexure

96
Questionnaire

I Iam INishan IN, Ia Istudent Iof ISDMIMD, IMysore Ipursuing Imy Ifirst Iyear Iof IPGDM. IAs II Iam
I doing Ia Iproject Ion I“Impact Iof ICovid-19 Ion Ibusiness Iperformance Iof Ithe Iautomobile Isector Iin
I India Iand Itheir Isales Iand Iperformance”. IAs Ilockdown Iand Isocial Idistancing Ihave Irapidly
I become Ithe Inew Inorm Ifor Imany Iof Ius, Ithere Iis Igrowing I Irealization Ithat Iit Icould Ihave Ia Ilasting
I impact Ion Iwhat Imobility Isolutions Ipeople Iwill Iprefer Iin Icoming Idays. IKindly Ispare Isome Iof
I your Ifree Itime Ito Ianswer Ithis Iquestionnaire:

1) IName:_______________

2) IGender

a) Male I[ I]
b) Female I[ I]
c) Prefer Inot Ito Isay I[ I]

3) IAge:_______

4) IWhich Ipersonal Ivehicle Ido Iyou Iown Icurrently?

a) 2W I[ I]
b) 4W I[ I]
c) None I[ I]
d) Other:________

5) IWhich Ivehicle Iwill Ibe Iyour Ipreferred Imode Iof Itravel Ipost Icovid-19 Ilockdown?

a) Public Ibus/Metro I[ I]
b) Ride Ihailing/shared Imobility I[ I]
c) Private Ivehicles I[ I]
d) Other:_______

6) IBefore ICovid-19 Ioutbreak Iwhat Iwas Iyour Ipreferred Itravel/commute?

a) Public Ibus/Metro I[ I]
b) Ride Ihailing/shared Imobility I[ I]
c) Private Ivehicles I[ I]
d) Other:_______

97
7) IHas Iyour Iintention Ito Iown Ia Icar Istrengthened Iafter Ithe ICovid-19 Ioutbreak?

a) Yes I[ I]
b) No I[ I]
c) Maybe I[ I]

8) IIf IYes, Ithen Iwhy Ihas Iyour Iintention Ito Iown Ia Iprivate Icar Ichanged?

a) Flexibility Iof Itime I& Itravel I[ I]

b) Reduces Ichances Iof Iinfection I& Isocial Idistancing I[ I]
c) Family Ican Itravel Itogether I[ I]
d) Upgrade Ifrom I2W I[ I]
e) Societal Istatus I[ I]

9) IDuring Ithe Icurrent Ilockdown Iwhat Ikind Iof Iissues Ihave Ipeople Ifaced Iby Inot Iowning Ia I I I I I I I I
I personal Ivehicle Iin Iyour Iview?

a) Unable Ito Iget Ia Ivehicle Iduring Iemergency I[ I]

b) Unable Ito Icommute Ito Iget Iessentials I[ I]
c) Anxiety/emotional Idistress Idue Ito Iunavailability Iof Ipublic Itransportation I[ I]
d) Other:______

10) IIf Iyou Iare Ia Icurrent Ipersonal Ivehicle Iowner I(4W) Ido Iyou Iintend Ito Iupgrade Iyour Ivehicle
I when Inormalcy Ireturns Ipost Ithe Ilockdown?

a) Yes I[ I]
b) No I[ I]
c) Maybe I[ I]

11) IIf Ino, Iwhat Iare Iyour Ireasons Ifor Iopting Ifor Iupgradation?

a) Adequate Iavailability Iof Ipublic Itransportation I[ I]

b) Too Iearly Ito Iupgrade Ivehicle Iexisting Ivehicle I[ I]
c) Postponed Ipurchase Iamidst Iuncertainty I[ I]
d) Change Iin Itravel Ihabits/preference Ipost Icovid-19 Ilockdown I[ I]
e) Other:_____

98
12) IIf Iyou Iwere Ito Ipurchase/upgrade Ia I4W Ipost Ithe Ilockdown, Iwhich Itype Iof Ivehicle Iwould
I your Ineeds Ithe Imost?

a) Hatchback I[ I]
b) Compact Isedan I[ I]
c) Premium Isedan I[ I]
d) Mid-size ISUV I[ I]
e) Luxury Isedan I[ I]
f) Full Isize ISUV I[ I]
g) Pre-owned Ivehicle I[ I]
h) Other:____________
I

99
Bibliography

100
References

 https://en.wikipedia.org/wiki/Tata_Motors
 https://www.tatamotors.com/about-us/company-profile/
 https://www.tatamotors.com/media/press-releases/
 https://www.tatamotors.com/press/tata-motors-adopts-a-3-pronged-csr-approach-to-
combat-covid-19/
 https://www.business-standard.com/article/companies/fitch-downgrades-tata-motors-
to-b-on-covid-19-impact-outlook-negative-120041601090_1.html
 https://www.business-standard.com/article/companies/covid-19-impact-s-p-
downgrades-tata-motors-ratings-keeps-outlook-stable-120040300265_1.html
 https://www.livemint.com/news/india/covid-19-impact-moody-s-puts-tata-motors-on-
review-for-downgrade-11585282295839.html
 https://economictimes.indiatimes.com/news/company/corporate-trends/tata-trusts-
commences-airlifting-of-critical-supplies-through-tata-international/arti
 https://economictimes.indiatimes.com/industry/auto/auto-news/focusing-on-supply-
of-essentials-to-communities-most-affected-by-covid-19-lockdown-tata-
motors/articleshow/75045223.cms?from=mdr

 https://economictimes.indiatimes.com/markets/stocks/news/coronavirus-whats-its-
impact-on-indias-auto-sector/articleshow/75078607.cms

 https://www.businesstoday.in/sectors/auto/tata-motors-may-shut-maharashtra-plant-
due-to-covid-19-concerns/story/398839.html

 https://aci.aero/wp-content/uploads/2020/05/200505-Third-Economic-Impact-
Bulletin-FINAL.pdf

 https://dash.harvard.edu/handle/1/13031653

 https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-
05/UNWTO_Barom20_02_May.pdf

 http://rtw.ml.cmu.edu/rtw/kbbrowser/automobilemaker:tata

 Aruna.G, ID. IA. I(2013). IA ILiterature IReview IOf IMergers IAnd IAcquisitions

101