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TATA MOTORS. LTD

Ishwar
Tiwari

Date
06-02-2021

Research Report
GENERAL OVERVIEW

Tata Motors Group (Tata Motors) is a $35 billion organisation. It is a leading global automobile
manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility
vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's largest OEMs
offering an extensive range of integrated, smart and e-mobility solutions.

It was established in 1945 with an Employee strength of 78906 and till date it has sold 9,61,463
vehicles and has sales service and points greater than 8400.

Tata group has a mission to innovate mobility solutions with passion to enhance the quality of
life.
Vision proposed by the company is to by FY 2024, we will become the most aspirational
Indian auto brand, consistently winning, by
 Delivering superior financial returns
 Driving sustainable mobility solutions
 Exceeding customer expectations, and
 Creating a highly engaged work force

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Shareholding Pattern of the Company

 If a company has a high percentage of promoter’s shares, then it usually witnesses high
volatility in the market price of its shares.
 The company has 15% of FII holdings which signify confidence in the stock, FII selling
their major portion can affect the share price greatly
 Domestic institutional investors are those institutional investors which take on
investment in the same country they are settled in. Institutions or organizations such as
banks, insurance companies, mutual fund houses.

Management Of the Company

Name Designation
N Chandrasekaran Non Executive Director and chairman
O.P Bhatt Non Executive, Independent Director
Guenter Butschek CEO & Managing director
Girish Wagh President-Commercial Vehicles
Thomas Flack President & Chief Purchasing Officer
Ravindra Kumar G.P President & Chief Human Resources
Officer
Rajendra Petkar President & Chief Technology Officer

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 SWOT ANALYSIS OF TATA MOTORS

1. Strengths
 It has stabilized source of earning and stock has earned more than 20% in one month
 Increasing profits every quarter for the past 3 quarters.
 It has a large number of employees and has 66000 people working in the automobile sector.
 Growth in net profit with increasing profit margin
 Automation of activities brought consistency of quality to Tata Motors Limited products
and has enabled the company to scale up and scale down based on the demand conditions
in the market.
 High level of customer satisfaction and it has a good brand equity among potential
customers
 Tata Motors Limited is relatively successful at execution of new projects and generated
good returns on capital expenditure by building new revenue streams.

2. Weaknesses
 The current asset ratio and liquid asset ratios suggest that the company can use the cash
more efficiently than what it is doing at present.
 Weak marketing policy, tata motors has not played a great role at informing their
customers about their plans.
 The debt of the company is increasing
 Degrowth in revenue and profit
 Company has not been able to generate net cash

3.Opportunities
 Company has the highest recovery from 52 week low
 The purchasing power of customer can lead to high number of sales
 Electric SUV launched by tata is one of the highest selling EV cars in India right now
 Tata added two of major luxury car brands to it’s portfolio which has provided the
company with the opportunity to tap into the luxury segment as well
 Tata can follow aggressive marketing and promotional advertising to reach a larger
number of audience out there

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4. Threats
 Tata has to go up against a large number of competitors to reach the target audience and
has to pay equal focus on lean manufacturing as well as quality
 Environmental and Government laws can affect the pricing strategy of tata motors
 A major price hike in fuel could affect the sales of non electric cars
 Industry pressure of continuous innovation is important to stay in the game as it’s already
been practiced by other makers in the industry

Competitive Analysis

The segment has been witnessing new launches from different car makers every
month, as a result of
which tata motors
come in 3rd with 26980
units being sold where
as the top spotted was
being dominated by
Maruti Suzuki selling
1,39,844 units
followed by Hyundai
with 52,005 units
being sold.

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To climb to the first position tata motors has to adopt aggressive marketing strategy to create a
bump in sale and increase the overall revenue.
The famous automobile manufacturing company, Maruti Suzuki is headquartered in New Delhi,
India. It was established in the year 1981 and its first production was in 1983 with Maruti 800.
This company has rich experiences that are powered by innovations and commitment to
producing the best vehicles for Indian roads.

The company experienced a great change after the production and launching of Maruti 800. It
had turned the intention of people for the need of driving into love for driving. Their great design
and technology have taken its car production to meet the expectations of the current trend in the
automobile industry.

This company is the top leader in the market which has a large market share. This company has
about 15 vehicles supporting its portfolio. They have good product lines and their vehicles focus
on good fuel efficiency like Alto, Maruti Swift etc. Due to their great market share and the highest
number of domestic sales, Maruti is considered one of the top Tata Motors competitors.

Conclusion and way forward for the Company

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 The impressive stats posted by the company sums up the company’s fiscal performance
for the year 19-20 makes sure that the targets were achieved.
The company believes by 2024 it will become the most aspirational auto brand by
 Delivering Superior Financial Returns
 Driving Sustainable Mobility Solutions
 Exceeding Customer Expectations
 Creating a highly engaged workforce

The following chart represents the company’s aim and how it plans on achieving each
and every stage of it
LR's vision is a world of sustainable, smart mobility – Destination Zero – enhancing the
quality of everyone’s life with zero emissions, zero accidents and zero congestion
through relentless innovation. Our ambition is to make our societies safer and healthier,
and our environments cleaner through relentless innovation. Adapting our products and
services to the rapidly-changing world around us.
Tata motors with it’s relentless innovation and customer first approach would make it one
of the top choice for any car buyer in the future.

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