TATA Motors Ltd.



I ARUN KUMAR GULERIA here by declare that the project report entitled “COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY & CUSTOMER SATISFACTION SURVEY” under guidance of Miss. Sukhwinder Arora submitted for the requirement of a degree programme of LOVELY PROFESSIONAL UNIVERSITY is my original work.

Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section .

Signature : Date : Place : Jalandhar

In order to make my project I acknowledge a special thanks to all those people without whose supports it would not be possible for me to complete for me to complete my report. First of all I really thankful to my Lovely Professional University because of them I could achieve the target. I express my sincere thanks to my project guide Miss. Sukhwinder Arora who had guide to me throughout my project. I would also thankful to the Satluj Motors (TATA MOTORS Dealership) for giving me this opportunity to work on project in Mandi (H.P) . I convey my heart full thanks to the Mr. Bhopal Singh Jamwal (Admin. Manager) and the staff members of Satluj Motors, with their help and corporation. Also I would like to express my inner feeling for all the people for co-operating and helping me throughout the project. Last but not the least I am thankful to my parents and friends who have provided me with their constant support throughout this project.

A K G run umar uleria


com 100 . Cash Flow and Fund Flow Statement. I analysis the financial position of TATA Motors and conducted a financial analysis of two of its competitors – Mahindra & Mahindra and Maruti Udyog. program at Lovely Professional University. I had learned lot during my project on compare the standing TATA Motors vis-á-vis the industr y & customer satisfaction survey of TATA Motors. and Ratio Analysis. It helps the student understand practical aspects of Business Management in a better way as a part of my M. ARUN GULERIA arun_guleria@ymail. and dedicated professional.PREFACE The professional training is the internal part of a M. I was supposed to work the organization.B. I hope this will be helpful to find out financial standing of TATA Motors in automobile industry and satisfaction of consumer in Mandi city. collection. Profit & Loss Account.A. The responses were collected from 100 respondents from various areas of Mandi.A program. One has to be a good learner to sharper knowledge in the particular field to achieve and attain the desired goals and heights.B. by which an individual selects. and use of information for the purpose of improving decision making related to identification and solution of problems and opportunity” Perception is the process. Jalandhar . To com pare the standing TATA Motors vis-á-vis the industry . I used Balance Sheet. organizes and interprets infor mation inputs to create a meaningful picture of the world around as” To be a Master of Business Administration student is a matter of pride because we are in a field. which help us to develop from a nor mal human being into a disciplined. analysis. And I also conducted Customer Satisfaction Survey of TATA Motors in the Mandi District of Himachal Pradesh. ‘Finance Management is the systematic and objective identification. dissemination. I used research questionnaires as the research and data collection tools.

com 100 .INDEX ARUN GULERIA arun_guleria@ymail.

4 Global Operations 48 8. 70938. Products Of Tata Motors: 58 9.3 Important Developments 39 8.5 Financial Analysis Of Tata Motors 84 13. 4.4 June 2009 Domestic Sales At 43.1 TATA Group Companies 32 8.5 First Jaguar Land Rover Showroom Opens In India 19 6.Indigo Dicor 71 10. Profile Of Tata Group: 27 7.514 Crores 16 6.244 Nos 18 6.2 Modification In Tata Sumo 69 10. 5.7 Awards 57 9. Indian Automotive Players: Overview Of The Players In the Indian .2 First Quarter Stand-Alone Net Revenue Rs. Loss After Tax Rs. Global Automobile Industry 87 14.6405 Crores.1 Passenger cars and utility vehicles 58 9.5 Future Challenges 51 8.2 History Of Tata Motors 39 8. Preface (iii) Executive Summary 7 Introduction 10 Literature Review: 14 6. Acknowled gement (ii) 3. 15 6.3 Delivers First Tata Nano In The Country In Mumbai 17 6. Pat Grows 58% To Rs.1 Launch Of Tata Nano 62 10.3 Weighted Average Cost Of Capital 79 ARUN GULERIA 12. 1.3 New Version Of Indigo . SWOT Analysis .25 Crores 21 6.3 Commercial vehicles 60 10.8 Effect Of Inflation On Car Market 24 7.7 Consolidated Revenue In 2008-09 Rs. PARTICULAR Page No.2 Capital Structure 78 12.6 Milestones 52 8. Marketing Strategies: 62 10.6 Tata Motors To Introduce Air Car 20 6.4 Tapping Of Rural Markets 72 11.85 Crores.2 Concept vehicles 59 81 100 12.Tata Motors Limited 73 12.1 Industry Overview 37 8. Declaration (i) 2. Financial Analysis: 76 12. 6.4 Balance Analysis arun_guleria@ymail. 2505. Profile Of Tata Motors Limited: 35 8.No.S.1 Financial Overview 77 12.1 Tata Motors July Sales At 48.054 Nos.

I learnt analysis financial statement in to find different aspects for compare the standing vis-á-vis industry and customer ’s perception about TATA Motors. it also gives little insights into what company offers to the Corporate and the Consumers. THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS: 1. Company Profile: ARUN GULERIA arun_guleria@ymail. The main objectives of the project are: Financial performance in automobile industry Market performance Market position. Company Overview: This part describes the company 100 . Overall opinion about Tata Motors. Satisfaction amongst the customers of Tata Motors For this project Financial Statements was analysis and customer research was carried out at various area of Mandi District of Himachal Pradesh. This section also describes the kind of technology used. This par t recognizes the achievements and rewards the company has achieved. Economic and the industry environment Cost saving initiatives Awareness regarding the facilities provided by Tata Motors. 2.EXECUTIVE SUMMARY COMPARE THE STANDING TATA MOTORS vis-á-vis THE The project on INDUSTRY & CUSTOMER SATISFACTION SURVEY based on financial perfor mance and on customer survey.

It includes the company history which depicts the company from the period of foundation. FINDINGS: A detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. 3. Comparison of company’s financial statements with competitors: Comparison of company’s Balance Sheet. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the people’s car as it is satisfactor y on all other parameters: knowledgeable sales persons . Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. Profit & Loss Account and Fund and Cash Flow Statement with their competitor to find the standing of company in automobile industr y. 4. 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 5. display of merchandise is attractive. ARUN GULERIA arun_guleria@ymail. operating leverage and cost saving initiatives will improve margins. On an average more than 73% people feel that the prices are affordable whereas 12% do not agree. This section also products of the company producing by the company.This section gives the information about the company. While a pick-up in its CV volumes is evident. Analysis of Financial: Financial statements of the company over last few years are analysis in this section and financial perfor mance is output. Competitors of company: The company’s competitors are finding and study the business during the financial years. employees spent enough time before and during 100 .

vehicle in good condition. décor of the waiting area is pleasing. careful with personal information and is value for money . responds to complaints quickly. prices are affordable. “Lovely Professional University” At the end it is submitted to ARUN GULERIA arun_guleria@ymail. attractive discounts are offered. The overall opinion about TATA Motors is very good.availability of product. variety of mer chandize. service at TATA Motors service station is 100 .


000 crore) mark. India's GDP is set to double over the next decade • In percentage terms.00. the sector's contribution is set to quadruple to some • $145bn The automobile industry in India accounts for a business volume of $45 billion and has the potential to grow much faster both through Indian as well as international manufacturers who have established huge facilities in the country With the world’s second largest and fastest-growing population. ARUN GULERIA arun_guleria@ymail. Manufacturer ’s product lines are being continually expanded. plus a further 5 million two. as is the local automotive manufacturing base. there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution . At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum. high up the automotive value chain • India eyes 25 million automotive jobs. The country is already off to a good 100 .India is an emerging country with huge potential. In dollar terms.and three-wheelers. with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year. The domestic economy is now growing at around 9-10% per annum and India’s importance in global terms is being reinforced by rapidly rising exports and domestic consumption. the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42. the automotive industry's contribution should also • double. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. The automotive industr y is at the center of India’s new global dynamic.

auto industr y employment. INDUSTRY GROWTH: Future Automobile in the Economy: of the ARUN GULERIA arun_guleria@ymail. Based on Max Pemberton's unique relational long-term forecasting model.The 100 . demographics. a brand-new forecast of Indian automotive and related activity to 2020. market drivers and scope of a future massive Indian vehicle market are covered in the India Strategic Market Profile. and explains their inter. it forecasts car and CV sales. materials usage.year of healthy growth in auto industr y.

keystone predicts that India will become world’s third largest automobile market by 2030. INDIA THEN & NOW 1983 • Number of brands 2 • Number of models 2 2008 • Number of brands 30 • Number of models 70 ARUN GULERIA arun_guleria@ymail. Overall size expected to exceed 20 million with compounded annual growth rate of over 12%.US based 100 .


a growth July 2008.180 nos. (14.033 nos.813 Fiat) last year.462 nos.690 nos.563 nos.690 Fiat) in the 12. The The company’s sales of commercial response has been quite encouraging in the vehicles in July 2009 in the domestic first month with the initial India stock and market were 28. The Company’s sales from exports at 2.168 nos. growth of 18% M&HCV sales record year-on-year growth after almost a year .855 nos.572 nos. last year and the highest since September Nano sales were 2.537 nos. a 32% ARUN GULERIA arun_guleria@ymail. compared to 22. domestic market in July 2009. a 23% growth over year..638 nos.499 nos. was compared to July last year. sold last year. The Indica range sales were commercial and passenger vehicles for July 8..676 nos..284 nos. The Indigo range recorded sales of 37. grew by 21% over in July 2009 were 48. (65.054 nos. Cumulative sales of commercial vehicles in reported a growth of 13%. Cumulative sales of the Cumulative LCV sales were 100 T .475 nos.Ashish Garg increase compared to 15. The company’s domestic sales of Tata 2. 2009 Tata Motors July sales at 48.658 nos.475 nos. while by 29%.408 nos.. Cumulative sales the domestic market for the fiscal were of the Indigo family were 12.652 ata Motors total sales (including exports) Tata + 412 Fiat) in July last year.599 nos.544 Fiat). were lower by 40% over nos. lower by 1%. The UV/SUV range of Sumo/Safari Cumulative sales (including exports) for the accounted for sales of 2.881 fiscal at 7. 3.696 vehicles in July last year. a growth of 14% over July last 2009 were 45.191 Tata + 2.028 Tata stood at 10.. was Exports lower by 19% over last year. and the sales were 2008.. sold in July last year.. Dispatches of the Tata Nano of 18% over 40. compared to 172. by 29%.455 vehicles in July 2009 were lower by 34% Passenger Vehicles compared to 3. turning positive after + 7. (63. M&HCV sales stood at 37.729 vehicles sold in July began during the month.. a 27% growth pipeline imports booked to a large extent. flat company for the fiscal at 171.381 vehicles sold in July last year. a growth of passenger vehicles in the domestic market 44% over July last year. a growth of 4%.. against 67. M&HCV sales for the fiscal were 70.746 almost a year with a growth of 6% over July Tata + 1. at 14.464 nos. The passenger vehicle business reported a The cumulative sales from exports for the total sale and distribution offtake of 19. a growth of 7% over last year. The company began the sale and deliveries of the Jaguar and Land Rover range through Commercial Vehicles the brands’ flagship store in Mumbai...750 nos. Sales of of Tata commercial and passenger vehicles Tata cars.. in the same period last year.422 nos.054 vehicles. lower by 22% over July last year.064 nos. lower growth of 32% over last year.. (17.412 nos. a Sumo/Safari range were 10. Cumulative sales and distribution offtake of LCV sales were 17.559 nos.. Cumulative 2008 sales of the Indica range at 37. lower 100.Released on: 3rd August.

4% over the corresponding the previous year).514 crores . 2009.59 crores). The market share for Tata supporting capabilities.340 vehicles.5%.345. Government stimulus packages for the automobile industr y and Jawaharlal Nehru The company’s continued focus on cost National Urban Renewal Mission efficiencies.63 crores on a standproducts and variants improved the alone basis for the quarter ended June 30.513.76 crores (Q1 2008-09: Rs. the year loss of Rs. Along with Fiat.6% due to increased debt previous year on the back of a marginal taken by the company during the previous 1. yielded The company’s domestic sales volume at considerable benefits resulting in the 122.4% (from 7.7% reflecting the month of the quarter breaking into positive increased investments in new products and growth in June. of the financial year 2009-10. Sardha Improvement in liquidity. The heavy truck decline of 7.6% compared to Rs. inventory reduction and improvement in sales realisation. whilst the Rs.45 crores for the quarter 61% in the corresponding quarter of increased by 125. there was an improved from April to June 2009 with the exceptional notional foreign exchange June exit market share at 12.846 units requirements and depreciation at Rs.Released on: 27th July. in crores in the corresponding quarter previous response to infrastructure development.09 crores) and Profit after Tax was the previous year. PAT grows 58% to Rs.326. The company gained Rs.3%.216 year to support its product 100 T . an increase of 57.3% ARUN GULERIA arun_guleria@ymail. increased reach ata Motors today reported revenues (net across the country and introduction of new of excise) of Rs.229. year.6404. company’s sales.04 crores (Q1 2008-09: compared to the corresponding quarter of Rs. an increase of 47.4% during the quarter compared with cost (net) at Rs.8% to Rs. For the quarter passenger vehicles has sequentially ended June 30. 2009 Tata Motors First Quarter Stand-alone net revenue Rs. a heavy truck segment.3% as 58. units.R.548. company has a joint market share of 12.253.00 crores. a decline of 4.1% growth in domestic sales to 72. and for the valuation loss of Rs. except in the case of the 2009. The interest 67.12 but have been growing sequentially every crores was higher by 26.6405 Crores.120 vehicles recorded a marginal operating margin to 11. Tata passenger vehicles declined by investments and working capital 10% in the domestic market to 45.44 segment is recover ing. with operating profits at quarter of the previous year.54 crores (previous period being at 11.11 market share in commercial vehicles to crores).6928. coupled with reduction of raw (JNNURM) initiatives. wake of continuing tumultuous global environment resulting in total sales volume Profit before Tax for the quarter grew by at 127. S.1% in decrease of 1.5.161. albeit slowly. material prices.728.5%.9% as exports at 5220 vehicles continued to be compared to the corresponding period of the severely impacted (negative 43%) in the previous year.

A new The audited stand-alone financial results for mileage enhancing automatic stop-start the quarter ended June 30. hope the Tata Nano will bring motoring Dispatches to dealerships have begun from pleasure to those who will be buying their the Pantnagar plant. The company also opened the first standard trucks in May 2009. Tata for the 1st quarter of Financial Year would Motors has received a majority of the orders be voluntarily disclosed separately in due for buses released by different State course. the 2009. tippers.axle trucks. Fiat 500 mixers and special purpose vehicles which and the Palio. also received their cars the industr y. Ashish Balakrishnan (Tata Tata Nano. An all-new Starbus range of buses has also been introduced. the company has The company continues to upgrade its completed the process of allotment of Tata resources to leverage emerging Nanos. the company has commenced are being gradually launched in India and the distribution of the Fiat Grande Punto in also in select international markets over a June 2009. 2009. Mr. Ashok Raghunath Vichare of Mumbai Along with 100 T . Tata said.” ata Motors is pleased to announce that Mr. In commercial vehicles. ARUN GULERIA arun_guleria@ymail. infor med to customers. two other has become the first customer in India of the customers. Tata. at the India Limited (Tata Nano LX – Lunar hands of the Chairman of Tata Sons and Tata Silver). The consolidated financial results introduced in the Ace mini truck. Motors. period of time. are technology. 2009 TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI . at the company’s dealership. today. Karm emission-friendly city car. Deliveries to the allottees have since company unveiled its new range of world begun.Rojar R. has been enclosed. Ratan N. In passenger vehicles. Mr. Mr. Mumbai. comprising Jaguar Land Rover showroom in India at multi. __________________________________________________________________________________________________ Released on: 17th July. Along with the Fiat Linea. “I different towns and cities of the country. in accordance with schedules cars but want a modern. Tata Motors has commenced deliveries of the Tata Nano this month to Speaking on the occasion. following the car ’s launch in March opportunities. where the car is being first car as also those who currently own produced. Mr. contemporary. As planned. Nano LX – Sunshine Yellow) and Kores the Tata Nano LX (Lunar Silver). developed in-house. Concorde Motors. Vichare received his choice. Governments under the JNNURM. tractor-trailers. Vichare.

The Sumo/Safari range declined by 7%. (15. (51. (17. LCV sales were 16. over June 2008.814 nos...256 nos. a decline for the quarter were 50.155 Passenger Vehicles vehicles in June 2009 declined by 37% The passenger vehicle business reported a compared to 3. a growth of 27% over last year. a 1% range grew for the fifth consecutive month decline over 43.. of May 2009. a decline of 26% over Cumulative sales of the Sumo/Safari range last year.797 vehicles sold in June last year. of May 2009. against 52.923 nos. (45.113 nos.474 Fiat) in the exports) of Tata commercial and passenger domestic market in June 2009.388 commercial and passenger vehicles for the Tata + 1.567 nos..039 Tata + 2. (17.399 vehicles. .495 nos. while passenger vehicles in the domestic market M&HCV sales stood at 9.837 of 23% over June 2008 but an increase of Tata + 4. a growth of 1% Indigo family were 8..8% over 16. but a growth of 24.849 nos.691 nos.205 nos. Exports The Company’s sales from exports at 2. of 11% compared to June 2008.513 ata Motors’ total sales (including nos. a decline sold last year.7% over 2. The company’s domestic sales of Tata increase of 17.626 nos.244 nos. accounted for sales of 3. The Indigo family recorded sales of 3. 15% over May 2009. The Indica month of June 2009 were 43.. stood at 26. but a growth of 29.. a decline of 35%. a 26% decline over June Cumulative sales (including exports) for the 2008.563 nos.. company for the quarter at 123. sold in June last at sales of 10. 2009 TATA Motors’s June 2009 DOMESTIC SALES at 43.017 4% over 47.. while LCV sales for the quarter were 8.550 nos.522 nos..307 nos.431 vehicles in June 2008.056 nos.949 nos.733 nos. a 2% decline Mumbai.G. Cumulative M&HCV sales decline over the same period last year.094 Tata + 1. -.244 nos.. ARUN GULERIA arun_guleria@ymail.065 nos..175 Fiat) of May 2009..430 nos. a decline of increase compared to 100 T .401 Fiat) in the same period last year.a growth of 19% year.832 nos. reported a the domestic market for the first quarter of growth of 12%.210 nos. a Cumulative sales and distribution offtake of growth of 17% over June 2008. were 45. compared to 131. an 11% vehicles were 45. and an year.854 Fiat).245 vehicles sold in June last Tata + 550 Fiat) in June 2008. compared to 26. Commercial Vehicles The Company’s sales of commercial The company launched the Jaguar and Land vehicles in June 2009 in the domestic Rover range in the last week of June in market were 26. Cumulative sales of the the fiscal were 72. Lata Sure total sale and distribution offtake of 19.Released on: 1st July. a 32% over last year. Cumulative sales of the Cumulative sales of commercial vehicles in Indica range at 28.4% over 2.

220 nos. Ratan N. The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF. We believe ARUN GULERIA arun_guleria@ymail. with a dedicated showroom section for each brand. will offer a wide range of both Jaguar and Land Rover with plans to develop the dealer network throughout 2009 and 2010. Mr. Land Rover produces the world’s most versatile all-terrain vehicles. Tata. said: "We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands. Range Rover Sport and Range Rover. Chairman of Tata Sons and Tata Motors. including specifications. Released on: 28th June." Mr. We hope that they will delight customers in India just as they have done in markets the world over. Chairman of Tata Sons and Tata Motors. Ratan N.159 nos. accompanied by a parts and service network. 2009 FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA J aguar Land Rover's official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr. a country with increasing affluence and an economy which is still growing. Further details. combining refined luxury with a true breadth of capability. Jaguar has become one of the world's leading producers of beautiful fast cars. Jaguar and Land Rover's award-winning vehicles are well known around the world. Tata. are available on the new Jaguar India website (www. in the same period last year.The cumulative sales from exports for the fiscal at 5. Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in XFR and XKR and Land Rover Discovery 3. David Smith. declined by 43% over 100 . CEO of Jaguar Land Rover. It aims to establish a benchmark experience in luxury car sales in and Land Rover India website (www. It is an exciting time to be entering the Indian Mumbai. said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India.

First the welded and a body of fiberglass powered by Landrover-Jaguar deal. of residues. Tata Nano priced combustion and. There are no keys .000 ($ 8177) in India and kilometers. indicators etc. 3. with a tubular chassis that is glued not making history for itself. As a viable alternative. it costs less than India's largest automaker Tata Motors is set 50 rupees per 100Km (about a tenth that of a to start producing the world's first petrol car). The car has a top combustion models. as opposed to the gaschoice in cities where the 80% of motorists and. Due to the absence of world's cheapest car. pistons.oxygen explosions of internaldrive at less than 60Km. famously at One lakh rupees(£1200) by changing the oil (1 litre of vegetable oil) is October. compressed air. necessary only every 50. called the MiniCAT could cost car will be ready to go another 200-300 around Rs. of driving). it is about time we heard some breakthrough! According to the designers. consequently. Some 6000 zero-emissions Air Cars once the market develops. Microcontrollers are used in cheapest car and now it is also set to every device in the car. the car carries a small compressor which can be connected to The cost of a refill would be about Rs. Tata motors also plans to launch the in 3-4 hours.50. to push its engine's speed of 105 kmph. The Air of the most advanced electric car (200 to Car. would have a range of around 300 km between refuels. a factor which makes a perfect uses compressed air. so one tiny radio introduce the car that runs on air. and at a cost of approximately 100 rupees. then the world's compressed air. and we hope to tap the demand for premium vehicles from discerning customers. 85 ($ the mains (220V or 380V) and refill the tank 2). transmitter sends instructions to the lights. 2009 TATA MOTORS TO INTRODUCE AIR CAR – Ben MaGreow The MiniCAT which is a simple. Refilling the car will. barrel. the The Air Car.just an access card which can be read by the car With fuel prices touching nearly $150 per from your pocket.that the Indian market holds significant growth potential in the long term. take place at are scheduled to hit Indian streets by August adapted petrol stations to administer of 2009. compressed air to be specific.] The temperature of the clean air expelled by the ARUN GULERIA arun_guleria@ymail. In two or three minutes.000Km. light urban ata Motors is taking giant strides and car. Its mileage is about double that commercial air-powered vehicle." Released on: July 100 T . developed by ex-Formula One engineer 300 km or 10 hours Guy Nègre for Luxembourg-based MDI.

79 crores. 35660. and Profit after Tax for While market illiquidity and high interest the year was Rs.25660. 56.85 crores.24) for its consolidated company has introduced successfully new operations. acquisition of Jaguar Land Rover in June impacted the auto industry worldwide. 2009. 29.25 The company has actively responded to this crores. Tata Motors has reported a Basic Earnings aligning production with demand and tight Per Share (EPS) loss of Rs. 2008.(56. However.25 crores T ata Motors today reported consolidated Jaguar Land Rover: Jaguar Land Rover gross revenue of 100 . 2505.74151. Loss after Tax Rs. it Business Highlights: ARUN GULERIA arun_guleria@ymail. In addition.exhaust pipe is between 0-15 degrees below zero. the company had changed situation by taking a number of reported a Profit after Tax of Rs.1001.79 crores. 70938. On a the newly launched XF sedan. consolidated basis. However. include cutting costs drastically and working on a plan of substantial cost reduction.07 crores). the 08: Profit of Rs. 2505. In 2007-08. the global perfor mance of the company is not meltdown. especially after July 2008 with comparable to 2007-08 on account of the vehicle financing and demands drying up. Released on: 26th June.70938.26 crores. in 2007-08. the consolidated gross including Jaguar Land Rover. therefore.70 urgent and long term measures.40340.88) (2007control over cash flows. 2167. Jaguar was able to The consolidated revenues (net of excise) in maintain the sales level primarily on the 2008-09 amounted to Rs. that its own stand-alone revenues (net of excise) for 2008-09 amounted to TDCV: Rs. 2009 Consolidated Revenue in 2008-09 Rs. These crores. The consolidated financial in the first half of 2008. variants on both Jaguar and Land Rover brands. Land Rover sales fell considerably. rates in South Korea impacted the company’s domestic performance. which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power.21 crores in made a profit in 2007 and continued to do so 2008-09.85 Crores back of a very strong consumer response to (2007-08: Rs. In 2008 revenue was Rs. and is to unveil the all new XJ sedan Tata Motors has already reported on May shortly. the company reported a Loss after Tax in 2008-09 of Rs.

among the top three solutions and software ARUN GULERIA arun_guleria@ymail. HVAL & HVTL: Though impacted by lower volumes on the back of decline in medium and heavy trucks. but was impacted by the credit squeeze in the third quarter of the year. provider of leading Engineering and PLM products in all major geographies winning several projects. While the year ahead is challenging. Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad.strongly grew exports. there was a decline in disbursals. Telcon: The company has launched several new products. the two companies significantly reduced variable costs to counter the slowdown. It expects demand revival supported by infrastructure spend in the country. The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments. and has expanded presence in aerospace design and aero structures. TMFL: In line with Tata Motors’ sales in 2008-09. It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage. it has developed appropriate business structures Tata Technologies: and processes to strengthen relationship with The company has consolidated position strategic clients. as also product development 100 .

Domestic ARUN GULERIA arun_guleria@ymail.1001. decline of 50. The total 2008-09 sales volume (including exports) is 506.7%.79 crores compared to Rs.93 crores) in 2008-09. 25660.421 units. vehicles to 63.2028.25660. compared to The demand contraction was triggered by 585. The company movement in different segments and increased market share in commercial customer concerns on economic conditions. The high interest rates and unavailability of company retained its domestic leadership finance throughout the year.Released on: 29th May. The company crores in 2007-08.92 crores. helped regenerate overall sales. as in the automobile industry. like the Tata by its wide product offering.47 margins under pressure.2%). a decline of 60. abetted by reduction in freight (2007-08: 312. have continued to ata Motors today reported gross revenue improve penetration.26 crores. (stand. Domestic commercial impact on heavy commercial vehicles was vehicles sales amounted to 265.76 crores compared to Rs. and Net Profit lower at 100 T .7%.649 units in the previous year.33093. Rs. a year Stimulus packages from the Government in marked by severe demand contraction in the the last quarter of the year have to an extent automobile industry. but growth is yet to Revenues (net of excise) for the year were revive to earlier levels.373 units more severe. 2009 Tata Motors Net Revenue in 2008-09 lower at Rs.28599.79 crores.8% (2007-08: 62. The passenger vehicles.935 units).2576. particularly in position in commercial vehicles. a decline of The fall in volumes combined with peak 10.7%. The accelerated cost reduction measures and Profit after Tax for the year was Rs. The Profit before Tax was input prices and high interest rates brought Rs.27 crores (200708: Rs.alone) of Rs.26 proactively managed working capital to crores compared to Rs.41 crores in 2007-08. aided Small commercial vehicles. a contain the impact as best as it could.28739. due to market upheaval Ace and the Tata Magic. and the October-December quarter post the continued to be amongst the top three in global financial market upheavals.1013.

1% for the year Sanand plant is rapidly progressing towards (2007-08: 14%) and a March exit share of completion. Hyndai and Honda are trying hard to boost their production and sales of the cars ARUN GULERIA arun_guleria@ymail. materials to build a car. DIVIDEND impacted by the worldwide downturn in the The Board of Directors has recommended a industr y.659 numbers). are The landmark events of the year were the enclosed. introduced during the year or borne by the Company. both of which have been dividend is subject to approval of received well. The consumers and some have introduced a production of Indian cars has been brought competitive finance rates. which in turn suffices It has also been noticed that leading car the need to meet the rise in price of the raw manufacturer in India like the Tata Motors.10/The launch of the Tata Indica Vista was each for the financial year 2008-09 (2007augmented by the distribution of the Fiat 08: Rs.per Ordinary share and Rs. grew at a faster rate The Audited Financial Results for the and helped enhance market share.for Ordinary share). The Pantnagar plant began producing share in passenger vehicles in the second the Tata Nano during the year. Over 2. In commercial vehicles too. The effect of to a noticeable halt for inflation.5%.6/. shareholders.03 lakh fully paid launch of the second generation Tata Indica bookings were received for the Tata Nano. 2009. The increase in the price of buyers.536 numbers (2007-08: 100 T .passenger vehicles sales amounted to 2008. 2009.6.512 units (2007-08: 218. The 500 and Linea. and the launch of the Tata Nano on 207.The March 23.Hindustan Times in a scenario where the stock market is on a he growth in the car market has shown slow rise.50 per ‘A’ Ordinary share of Rs. 14. dividend of Rs.055 units). tax on the dividend will be new products. Vista and the continuing good run of the the deliveries of which will begin from July Tata Indigo CS has helped recover market 2009.15/. offering benefits like higher fuel efficiency. Maruti. __________________________________________________________ EFFECT OF INFLATION ON CAR MARKET . noticed that the sales of car are being The effect on inflation has affected every motivated by the discount offers that the sector which is related to car manufacturing automobile companies are offering to the and production. Due to inflation it has also been declining results as a result of the inflation. Tata Motors’ exports were 33. while the half which stands at 13. financial year ended March 31. acquisition of Jaguar Land Rover on June 2. Some car manufactures have gone to fuel and the steel has led to a slower growth the extent of giving exchange offers to the rate of the car industry in India. the previous year. inflation has taken the rise in the price rate of the cars by 3-4%.

ARUN GULERIA arun_guleria@ymail. Research and observations have led to the conclusion that in the year 2008. the car market and the car industr y is expected to witness 8-9% 100 . The effect of inflation on the car manufacturers have in turn affected the dealers in a way where they are being pressurized to push the sales graph higher and keep a high profit margin. The financers in the cycle are pressurized by both car manufacturers and dealers to pay the consumers a cent percent financial assistance by reducing on the loan interest rate. Overall it has been noticed that the automobile market in India and specially the car market in India have experienced a downtrend with the inflation affecting almost every industry to which the car market is essentially related. officials and car financers.The effect of inflation has affected not only the production and sales of Indian cars but also has significantly affected the car dealer.

Therefore. so. bankruptcy costs. which can be internal funds or some other less dangerous debt securities. borrowing and retaining profits “As opposed to dispersing them to shareholders in dividends” (Modigliani-Miller Theorem M&M) This theory also says that if there are no taxes. the marginal cost and benefit of debt in determining the best financial structure of a company is considered. at most considerate liability percentage. and asymmetric information. (European Journal of Economics).Financial Institute “As per the Trade off theory. they are issuing shares. It makes no difference how the company’s funds are increased either by issuing stock or by selling debt and neither matters the dividend policy of the company”. this is what affects the choice between internal and external financing. To avoid this most of the firms tend to finance their new projects using a security that is not undervalued in the market. in an efficient market then a company’s value becomes solid for finance by its sources. “The M&M theor y is a theory of capital structure which explains that a company’s market price is definite by its earning power and by the basic risk of its resources. Inter-Group Sales and Bridge loans. a companies market value is brought up and the companies whose liability percentage diverge from the best possible can increase their price by bringing their liability percentage towards the target”.THEORETICAL RELEVANCE OF TATA MOTORS’S LONG TERM FINANCIAL BEHAVIOR . According to the above composed data the Tata motors raised funds from NYSE in 2004. (Modigliani-Miller Theorem . Sale of Stakes.M&M) Therefore. A company increases its debits by issuing new equities to finance new projects because if not done the same way then and new investors are brought into consideration then the new Investors will make most of the profit which is ”the net present value (NPV)” of that particular project which will cause lose to the present share holders. (European Journal of Economics) “The pecking order theory is based on the idea of asymmetric information between managers and investors. the three most important ways of funding. Private Equity Funds. this is in accordance to “the pecking order theory which says that a company increases its debits by issuing new equities to finance new projects because if not done the same way then and new investors are brought into consideration then the new Investors will . and then from Bombay stock Exchange.

.make most of the profit which is ”the net present value (NPV)” of that particular project which will cause lose to the present share holders. which can be internal funds or some other less dangerous debt securities. the pecking order theory explains the need of the firms to rely on the internal sources of the company for finances and also explains why the companies prefer debt to equity if external financing is required. To keep away from this situation most of the firms tend to finance their new projects using a security that is not undervalued in the market. Hence. Therefore. this is what affects the choice between internal and external financing”.


with delivery centres in the US. Tata Communications is one of the world’s largest wholesale voice carriers. Brazil. through its UK-based subsidiary Tetley. Tata Tea is the second largest branded tea company in the world. services.TATA GROUP Tata is a rapidly growing business group based in India with significant international operations. Uruguay and China. among the highest among Indian business houses. materials. In tandem with the incr easing international footprint of its companies. Hungar y. and a shareholder base of 3.4 billion and ranked it 57th amongst the Top 100 brands in the world. TCS is a leading global software company. Tata Chemicals. the Group is also gaining international recognition. a UK-based consultancy firm. energy. engineering. The major companies in the Group include Tata Steel. Tata Motors. The Group’s major companies are beginning to be counted globally.2 million.000 people worldwide. besides India. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. Tata Chemicals is the world’s second largest manufacturer of soda ash. of which 61 per cent is from business outside India. Indian Hotels and Tata Communications. Revenues in 2007-08 are estimated at $62. Brand Finance. Tata Tea.543 crore). Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover.5 billion (around Rs251. Tata Consultancy Services (TCS). . Tata Steel became the sixth largest steel maker in the world after it acquired Corus. UK. Tata Power. recently valued the Tata brand at $11. consumer products and chemicals. The Group employs around 350. The business operations of the Tata Group currently encompass seven business sectors: communications and information technology. The Group’s 27 publicly listed enterprises have a combined market capitalization of some $60 billion.

its employees and wider society. USA. Founded by Jamsetji Tata in 1868. for commercial launch by end of 2008. the Tata Group’s pioneering spirit has been showcased by companies like Tata Consultancy Services. the Tata Group’s early years were inspired by the spirit of nationalism.Businessweek ranked the Group sixth amongst the World’s Most Innovative Companies. world scale businesses in select sectors. The Group pioneered several industries of national importance in India: steel. And the Reputation Institute. India’s first software company. the Group is building a multinational business which will achieve growth through excellence and innovation. medical research. social studies and the performing arts. The Group aims to build a series of world class. as is the Eka supercomputer (developed by another Tata company). in 1998 and recently unveiled the world’s lowest-cost car.s promoter company. . healthcare and livelihoods. The Nano car is one example. power. is held by philanthropic trusts which have created national institutions in science and technology. and Tata Motors. Twothirds of the equity of Tata Sons. recently rated it as the World’s Sixth Most Reputed Firm. hospitality and airlines. which made India’s first indigenously developed car. Going forward. The combined developmentrelated expenditure of the Trusts and the companies amounts to around 4 per cent of the Group’s net profits. while balancing the interests of its shareholders. the Tata Group. In more recent times. The trusts also provide aid and assistance to NGOs in the areas of education. The Tata Group has always believed in returning wealth to the society it serves. Anchored in India and wedded to its traditional values and strong ethics. which pioneered the international delivery model. the Group is focusing on new technologies and innovation to drive its business in India and internationally. Tata companies also extend social welfare activities to communities around their industrial units. the Indica. the Tata Nano. which in 2008 is ranked the world’s fourth fastest.

compassion and humanity for our colleagues and customers around the world. The Tata name is a unique asset representing leadership with trust. This requires us to grow aggressively in focused areas of business.CORE VALUES OF TATA At the Tata Group our purpose is to improve the quality of life of the communities we serve. show respect. . We do this through leadership in sectors of national economic significance. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from employees and companies. to which the Group brings a unique set of capabilities. shareholders and the community. Leveraging this asset to enhance Group synergy and becoming globally competitive is the route to sustained growth and long-term success. Everything we do must stand the test of public scrutiny. Our heritage of returning to society what we earn evokes trust among consumers. Understanding: We must be caring. with honesty and transparency. These values continue to direct the Group’s growth and businesses. FIVE CORE VALUES The Tata Group has always sought to be a value-driven organization. the benefit of the communities we serve Excellence: We must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide. employees. and always work for . The five core Tata values underpinning the way we do business are: Integrity: We must conduct our business fairly.

communities and environments in which we work. always ensuring that what comes from the people goes back to the people many times over. sensitive to the countries. building strong relationships based on tolerance. Responsibility: We must continue to be responsible. understanding and mutual cooperation.Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world. .

TACO Visteon Engineering Center. TRF. Tata Ficosa Automotive Systems. Tata Johnson Controls Automotive. TACO MobiApps Telemaics. The Dhamra Port Company. Lanka Special Steel. The Tinplate Company of India. TACO Engineering. This section lists all these companies under the sectors in which they operate. TAL Manufacturing Solutions. Tata Sponge Iron. Telco construction Equipment. • Engineering Services Tata Projects. The Seven Business Sectors are: Engineering (AUTOMOTIVE): • Tata Auto comp systems: Subsidiaries/Associates/Joint Ventures: International Automotive. The Indian Steel and Wire Products. Technical Stampings Automotive . TACO Supply Chain Management. Tayo Rolls.TATA Group Companies Family pride The TATA family of enterprises comprises 98 companies in seven business sectors. TACO Faurecia Design Centre. Jamshedpur Injection Powder (Jamipol). TACO Tooling. Knorr Bremse Systems for commercial Vehicles. Telco Construction Equipment Company. Tata Auto Comp GY Batteries. • Tata Motors: Subsidiaries /Associates/ Joint Ventures: Concorde Motors. Jamshedpur Utility and Service Company Limited (JUSCO). Tata Precision Industries. HV Axels. Voltas • Engineering Products TAL Manufacturing Solutions. TACO Interiors and Plastics Division. Nita Company. Taco Kunstofftechnik. Tata Ryerson. Tata Pigments. Tata Steel KZN. Mjunction Serves. Tata Refractories. TCE Consulting Engineers. Tata Blue Scope Steel. TC Springs. HV Transmissions. Tata Technologies. TACO Hendrickson Suspension Systems. . Tm International Logistics. Tata Daewoo Commercial Vehicles Company. Tata Yazaki Auto Comp. Tata Cummins. NatSteel. besides the two promoter companies of the Group. TRF METALS: • TATA STEEL Subsidiaries /Associates/ Joint Ventures: Hooghly Met Coke and Power Company. Tata Toyo Radiator. Sila Eastern Company. Tata Metallic. Tata steel (Thailand). Tata Engineering Services.

Tata Capital. Tata Services. North Delhi Power Limited • OIL AND GAS • Tata Petrodyne CHEMICALS: • Rallis India • Tata Pigments • Tata Pigments • PHARMA • Advinus Therapeutics SERIVES: • HOTELS AND REALTY • Indian Hotels (Taj Group) Subsidiaries /Associates/ Joint Ventures: Taj Air.ENERGY: • POWER • Tata BP Solar India • Tata Power Subsidiaries /Associates/ Joint Ventures: Tata Ceramics. Tata Investment Corporation • OTHER SERVICES • Tata Quality Management Services. Roots Corporation (Ginger Hotels) • THDC • Tata Realty and Infrastructure • FINANCIAL SERVICES • Tata AIG General Insurance. Tata AIG Life Insurance. Tata Power Trading. Tata Financial Services. Tata Strategic Management Group . Tata Asset Management.

Aviation Software Development Consultancy. • Tata Elxsi • SerWizSol • Tata Interactive Systems • Tata Technologies COMMUNICATIONS • Tata Sky • Tata Teleservices Subsidiaries /Associates/ Joint Ventures: Tata Teleservices (Maharashtra) • Tata Communication • Tata Net INDUSTRIAL AUTOMATION • Nelco Subsidiaries /Associates/ Joint Ventures: Tatanet . Tata Tea Inc • Tata Ceramics • Tata McGraw Hill Publishing Company • Titan Industries • Trent INFORMATION SYSTEMS AND COMMUNICATIONS: • Nelito Systems • Tata Consultancy Services Subsidiaries /Associates/ Joint Ventures: APONLINE. WTI Advance Technology.CONSUMER PRODUCTS: • Infiniti Retail • Tata Tea Subsidiaries /Associates/ Joint Ventures: Tata Coffee. Conscripti. Tata Tetley. HOTV. CMC Americas Inc. Airline Financial Support Services. Tata America International Corporation. CMC.

to attain Rs. earlier in July it sold 24% stake in an Auto component unit to a group firm and booked a profit of Rs. the sales of the stakes would possible conclude by June 2009. 10. 1. India.4%. where it recorded a strong financial performance during the last 5 year period. it also sold 10 million shares or 1. It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. Established in 1945. listed on the New York Stock Exchange in 2004 has created Rs. . now Mumbai.189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”. 2. for every such 6 shares held at a face value of 305 would raise Rs. 95. 320 billion wealth and was one of the top 10 wealth creators in India.90 Crores. HV transmissions. these proceed would be utilized for an early repayment of the short term funding of 2. 486 crores to Tata Sons. helping it to raise further funds for this acquisition. B y floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4. 731 Million in 2003. With manufacturing facilities in the towns of Jamshedpur. The company commands an imposing 65% share of the domestic commercial vehicle market and is tr ying to modernize this segment. 110 crores.36% of Tata steel for RS.TATA MOTORS LIMITED The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited. Tata motor’s passenger cars still need to reach acceptable international requirements. and Pune. the so called “A” share would have different voting and dividend rights. Tata motors finance. They are offering one ordinary share valued at Rs. The financial business of Tata motors was separated into a subsidiar y company in sep. 150 crores. From year 2003-2007. they are Tata Daewoo commercial vehicle company. Tata technologies and TELCO construction equipment. 340 every six shares expecting to net Rs. 2006. 525 million in 2007 from Rs. 331. the profits of the company went up at a CAGR of 36.3 Billion $ (Rs. the holding company of whole Tata group firms. Lucknow.960 Crores. has its headquarters in Bombay. was formerly called TELCO (TATA Engineering and Locomotive Company).

Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March from a consortium of banks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28 may its share value has fallen more than 30% and th fell by 1. If the company will follow the above mentioned trends then possibly it can raise its finances in a low liquidity and high interest rate set-up.86 points."The Company aims to monetize a part of its funds through a phased divestment of certain investments preferably as inter-group sales wherever possible at current market prices in the coming six to eight months. The Analysts say that.8% to end at 15. even though the bench mark index gained 3. this is a strategic move taken by Tata Motors because it is allowing the company to make a lot of profit even when the market is in the financial pressure allows Tata sons to raise its wager in group companies. ." the money that will be released from these investments will become a part of the capital to be lifted for repayment of the bridging loan taken for the JaguarLand Rover acquisition. 429.85 on BSE.82% to Rs. 049.

However.2% due to Supreme Court’s ban on over loading trucks. . ban on overloading and also significant investments proposed for removing infrastructure bottlenecks.5 tonnes segment is rising at the cost of demand in 5 to 7.2 tonnes segment.2 tonnes is witnessing a surge while demand for semi-trailers in 26. The domestic CV market grew at a CAGR of 26. The CV industry witnessed a change in demand dynamics in last few years. In FY07. Demand for trailers of >35. According to the Hub & Spoke model. which is now adopted by transportation players because of improved road infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic congestion issues. Though the rule is not being followed strictly at present.INDUSTRY OUTLOOK The Indian Automobile Industry enjoys the advantage of low cost base.4 to 35. The CV industry is directly related to the economic growth and development. while demand in 7. the CV segment registered a growth of 32. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution. The growth in demand for CVs is directly related to the IIP index and any upsurge in economic activities will call for more cargo movement in the economy. in future if this rule is implemented strictly it will result in huge replacement demand. strong ancillary network coupled with Government’s support by way of concessional excise duty of 16% for small cars. we expect the demand for CVs to be fairly decent except for the fact that the industry is currently experiencing a correction due to sharp spurt in demand in the previous years.2 to 25 tonnes segment is booming at the cost of demand in 12 to 16. There is a regulation that restricts the movement of vehicles above certain age (15 years in National Capital Region and 8 years in Mumbai).5% to 9% in coming years.2 tonnes segment is suffering. With the Indian economy expected to grow at 8. HCVs plying over the highways to transport goods to different states and districts.5 tonnes category. while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3. we believe that this is a one-time demand and the CV segment may not witness such kind of growth repeatedly. high skilled labour. The demand for LCVs in the <=3.5 tonner vehicles.7% during the last 6 years.5 to 12 tonnes segment and 16.


History .

Baker. Tata Motors launches its first truck in collaboration with Mercedes-Benz.History of TATA Motors 1. Tata Motors is a part of the Tata and Sons Group. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Ger many. founded by Jamshedji Nussarwanji Tata and J. After the . a multi utility vehicle. 2. TATA Indica The first generation Tata Indica After years of dominating the commercial vehicle market in India. Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra.

1994) and Tata Safari (1998. the car's excellent fuel economy. Tata Estate (1992. In 2004. Tata Sumo (LCV. India's first sports utility vehicle). was a major improvement over the previous version and quickly became a mass-favourite. a light commercial vehicle). powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. The reasons behind the acquisition were: Company’s global plans to reduce domestic exposure. A newer version of the car. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in . A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover . Tata Motors aimed to increase its presence worldwide.launch of three more vehicles. Though the car was initially panned by auto-analysts. a stationwagon design based on the earlier 'TataMobile' (1989). Tata launched the Indica in 1998. Tata Motors also successfully exported large quantities of the car to South Africa. named Indica V2. With the success of Tata Indica. it acquired the Daewoo Commercial Vehicle Company of South Korea.The success of Indica in many ways marked the rise of Tata Motors. TATA Brads DAEWOO ACQUISITION Tata Novus is one of the best selling commercial trucks in South Korea. 3. the first fully indigenous passenger car of India.

the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus.


Hispano Divo at the 2008 FIAA in Madrid

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors became acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it controlling rights of the company.

After the acquisition of British Jaguar Land Rover (JLR) business, which also includes the Rover , Daimler and Lanchester brand names Tata Motors became a major player in the international automobile market.

Jaguar XF

Land Rover's Range Rover

On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operations for US$ 2 billion. The sale was completed on 2 June 2008 Tata has gained the rights to the Daimler , Lanchester , and Rover brand names. In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies.


Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport

• In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and introduced its highend inter-city buses in the country. • Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. • The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.

By October 2005. Tata Motors launched several concept models and future designs of existing models.000th Ace in August 2008. South American and African countries. Tata Ace has also been exported to several European.6 percent to 28. It also formed joint ventures with various local companies in several countries to assemble Tata cars.00. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the countr y by creating a new market segment termed the small commercial vehicle (SCV) segment. TML sold the 2. The Ace was built with a load body produced by Autoline Industries. within 4 years since its introduction. Ace is still one of the number makers for TML.By 2005. Tata Motors launched a re-designed version of Tata Xenon TL during Motor .IMPORTANT DEVELOPMENTS In 2005 & 06 Tata Ace was India's first mini truck Tata Ace. Electric-versions of Tata Ace are sold through Chr ysler's Global Electric Motorcars division. India's first indigenously developed sub-one ton mini-truck.537 units due to the rising demand for Ace. was launched in May 2005. In 2007 In 2007. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. Autoline was producing 300 load bodies per day for Tata Motors. LCV sales of Tata Motors had grown by 36.

The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. an independent auto assembler. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. The project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles. The company has formed a joint venture with Thailand’s Thonburi Company. MDI owner Guy Negre was reported to have "the backing of Tata". Southeast Asia. Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. In 2008 COMPRESSED AIR CAR Tata OneCAT Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car . South Africa. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show.up model in India. Turkey and Saudi Arabia. . but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers. named OneCAT. Europe.Show Bologna which would be assembled in Thailand and Argentina. In 2007. in which Tata Motors will hold a 70% stake. The company plans to launch the new pick.

The vehicle would be launched in Norway in 2009. and plans to launch the electric Indica hatchback in Europe next year. Both run on lithium batteries. Tata Motors' UK subsidiary. OneCAT is a five seat vehicle with a 200-litre (7. In 2008 MDI planned to also design a gas station compressor. without disclosing the price.3% holding in electric vehicle technology firm Miljøbil Grenland/ Innovasjon of Norway for US$1. has bought a 50.1 cu ft) trunk. It is actually a dual fuel car but it is more efficient than any present Hybrid cars. but "the compressed air driving the pistons can be boosted by a fuel burner". The company has indicated that the electric Indica would be launched locally in India in about 2010. Tata Motors European Technical Centre . which would fill the tanks in 3 minutes.It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug. . which specialises in the development of innovative solutions for electric vehicles. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town. With full tanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle.93 M. IN 2009 AND ONWARDS Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace .

Lanchester and Rover .GLOBAL OPERATIONS Tata Motors has been aggressively acquiring foreign brands to increase its global presence. it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). Tata has dealerships in 26 countries across 4 continents. 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. Tata Motors has operations in the UK. Thailand and Spain. it acquired the Daewoo Commercial Vehicles Company. Tata Motors acquired a 21% stake in Hispano Carrocera. In 2006. a reputed Spanish bus and coach manufacturer. These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. Ukraine. Spain and South Africa. . South Africa. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler . Bangladesh. South Korea’s second largest truck maker. while also exporting these products to several international markets. giving it controlling rights of the company. Russia and Senegal. The rechr istened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. South Korea. Indonesia and Eastern Europe . Bhutan. Sri Lanka and Nepal and has a growing consumer base in Italy. Among them is Jaguar Land Rover. it formed a joint venture with the Brazil-based Marcopolo. In 2005. Hispano’s presence is being expanded in other markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea. They will debut in South Korea. South Africa and Argentina and is planning to set up plants in Turkey . Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. On Tata's journey to make an international foot print. In May. Tata also franchisee/joint venture assembly operations in Kenya. In 2004. a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. the SAARC countries and the Middle-East by the end of 2009. Bangladesh. Thailand. a business comprising the two iconic British brands that was acquired in 2008. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India.

The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. Thus Tata Motors CV will have to face tough competition in near future.7 billion by 2010. whom will make India as a production hub and export to nearest market. motivate many foreign commercial vehicle manufactures to set up shops in India. which might affect its growth negatively.The Government of India announced an automobile policy in December 1997. The policy sets an export target of $1 billion by 2005 and US$2. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. . Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiar y in India. The policies adopted by Government will increase competition in domestic market. The policy required majority-owned subsidiaries of foreign car fir ms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. Mere car assembling operations were not welcomed.

South Africa and Argentina and is planning to set up plants in Turkey. Tata Prima The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. . With the unveiling of Tata Elegante during Geneva Motor Show. Thailand.The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets. Tata Motors revealed its intention to enter the sedan and sports car markets. The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has expanded its production and assembly operations to several other countries including South Korea. Tata Indica assembled in Thailand and Argentina . Indonesia and Eastern Europe.

ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates. Turkey. USA (parent Navistar International). tippers. Asia and Africa. tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant. The JV plans to sell nearly half of its production in the domestic market. cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09. Further.FUTURE CHALLENGES Mahindra and Mahindra: JV with ITEC. state-of-the-art paint shop and R&D facilities. The acquisition has given ALL direct access to an entire range of Avia trucks. • M&M has formed a 51:49 JV called Mahindra International with ITEC. Ashok Leyland (ALL) • recently acquired the truck unit of Czech Republic-based Avia for US$35m. . while the rest is to be exported to the Middle East. welding lines. Russia. to manufacture commercial vehicles and to bolster its position in the CV business. Avia’s press shop with dies and tools. Maruti has aggressively launched family cars to undermine the Tata models. ITEC is the leader in medium and heavy trucks and buses in North America. Ashok Leyland: Acquisition of Czech Republic-based Avia. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport. with an initial capacity of 24. Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force • Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles. such as long-haul trucks. Suzuki : Suzuki through its subsidiary.000 units per annum. North American leader in heavy trucks. Avia manufactures 6-9 tonne LCVs and has a capacity of 20. and is the world's largest manufacturer of medium-duty diesel engines. Maruti Suzuki in the Indian market may also be • alarming.000 units per annum and at an investment of Rs7bn. the two companies have formed another JV to manufacture buses in India from end-2007.

The first vehicle rolled out within 6 months of the contract. • Manufacture of Heavy Commercial Vehicle commences. • Mercedes Benz car E220 launched. • . Steam road roller introduced in collaboration with Marshall Sons (UK).India's first sports utility vehicle launched.the multi utility vehicle. Ltd. • Indica. Tata 407. • Tata Sierra Turbo launched. • One millionth vehicle rolled out. • 2 millionth vehicles rolled out. • First hydraulic excavator produced with Hitachi collaboration. • First commercial vehicle manufactured in Pune. • Production of first light commercial vehicle. India's first fully indigenous passenger car launched. West Germany. • Tata Sumo deluxe launched. indigenously designed. was established to manufacture • locomotives and other engineering products. • followed by Tata 608. • Launch of Tata Sumo . • Tata Safari .MILESTONES 1945 1948 1954 1959 1977 1983 1985 1986 1991 1994 1995 1996 1997 1998 Tata Engineering and Locomotive Co. • Collaboration with Daimler Benz AG. Launch of the 1st indigenous passenger car Tata Sierra . Research and Development Centre set up at Jamshedpur. for manufacture of • medium commercial vehicles.

Tata's birth anniversary. • Tata Engineering signed a product agreement with MG Rover of the UK. • First CityRover rolled out • Tata Motors and Daewoo Commercial Vehicle Co. • One millionth passenger car produced and sold • Inauguration of new factory at Jamshedpur for Novus • Launch of Tata Novus • 2002 2003 2004 2005 . • 100. sign investment • agreement and completes acquisition of Daewoo Commercial Vehicle Company Tata Daewoo Commercial Vehicle Co. D.2nd generation Indica.00. J. Ltd. Ltd. 3 millionth vehicle produced.launched • Tata Ace .Starbus and Globus . • On 29th July.000th Passenger Car from its Car Plant Facility in • Pune The Tata Xover unveiled at the 75th Geneva Motor Show • Branded buses and coaches . • Launch of the Tata Sumo'+' Series • Launch of the Tata Indigo .000th Indica wheeled out. (TDCV) launches the heavy duty • truck 'NOVUS' .2001 Indica V2 launched . R. Tata Engineering becomes Tata • Motors Limited.000th Indica rolled out. in Korea Sumo Victa launched • Indigo Marina launched • Tata Motors lists on the NYSE • Tata Motors rolls out the 500. India's first mini truck launched • The power packed Safari Dicor is launched • Tata Motors launches Indica V2 Turbo Diesel . • Launch of the Tata Safari EX • 2.

Rollout of the one millionth passenger car off the Indica platform. • Launch of the new Sumo -.000th Ace • Tata. which combines the looks of an SUV • 2007 2008 .the Indica V2 DICOR . (Thonburi). four-wheeler public transportation mode. the Sumo Spacio Tata Motors launches Indica V2 Turbo with dual airbags and ABS • Launch of new Safari DICOR 2.Launch of Novus range of medium trucks in Korea. a comfortable.2 L Direct • Injection Common Rail (DICOR) engine. Launch of Magic. India’s only maxi-van • Fiat Group and Tata Motors announce establishment of Joint Venture in India • Launch of the Sumo Victa Turbo DI . begins on Januar y 21 • New 2007 Indica V2 range is launched • Tata Motors and Thonburi Automotive Assembly Plant Co. launched. the • Tata Spacio. by Tata Daewoo Commercial • 2006 Vehicle Co. assemble and market pickup trucks. • developed on the Ace platform Launch of Winger . world’s first sub four-metre sedan. West Bengal . announce • formation of a joint venture company in Thailand to manufacture. • Indigo CS (Compact Sedan).Fiat plant at Ranjangaon inaugurated • Launch of a new Upgraded range of its entry level utility vehicle offering. safe. powered by a new 2.Sumo Grande. Roll out of 100. launched. (TDCV) Tata Motors vehicle sales in India cross four million mark • Indica V2 Xeta launched • Passenger Vehicle sales in India cross one-million mark • Tata Motors first plant for small car to come up in West Bengal • Tata Motors and Fiat Group announce three additional cooperation agreements • Construction of Small Car plant at Singur.2 VTT range. • Latest common rail diesel offering. the new upgraded range of its entry-level • utility vehicle.

Congo. Indica Vista – the second generation Indica. Tata Motors completes acquisition of Jaguar Land Rover. • Tata Motors introduces new Super Milo range of buses. is launched. • 2009 • Tata Nano is launched. • Xenon. .with the comforts of a family car. • Tata Motors launches passenger cars and the new pick-up in D. 1-tonne pick-up truck. at the ninth Auto Expo. • Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III • Commonwealth Youth Games Pune 2008.R. • Tata Motors signs definitive agreement with Ford Motor Company to purchase • Jaguar and Land Rover. launched in Thailand. Nano. Tata Motors unveils its People's Car.

Ratan N Tata (Chaiman) Mr. Irani Mr. S. A. P. M Mankad : Head (Car Plant) Mr.J. Mashelkar Mr. Ravi Kant : Executive Director Mr. Tambe : Vice President (Human Resource) Mr. B.Y.Accounts and Taxation) Dr. Nusli N Wadia Mr. M Palia Dr. Rajive Dube : President (Passenger Cars) Mr. V. S. R. C Ramkrishnan : Chief Financial Officer Mr. Telang Senior Management Mr. M. K. S. J. Gurv : Vice President (Corporate Finance. Mehta Mr. Zackria Sait : Vice President (Technical Services) Mr. Ravi Kant Mr. Krishnan : Vice President (Commercial-PCBU) Mr. Borwankar : Head (Jamshedpur Plant) Mr. Sethna : Company Secretary . M Telang : Executive Director Mr.MANAGEMENT Board of Directors: Mr. N.R. P. Soonawala Dr. Ravi Pisharody : Vice President (Sales & Marketing) Mr. S. A. H. J. A. P.

Tata Motors chosen as India’s Most Trusted Brand in Cars… Business Today selects Mr.AWARDS PCBU bags Handa Golden Key Award…. Tata Motors was awarded four prestigious honors. Tata Motors wins ‘Golden Peacock Award’ for Corporate Social Responsibility. ‘CFO of the Year Award 2004’ awarded to Mr.P Kadle as India’s Best CFO in 2005… Pune Foundry Division bags prestigious Green Foundry Award… Tata Motors is ‘Commercial Vehicle Manufacturer of the Year’… ACE bags ‘Best Commercial Vehicle Design’ at the BBC-Top Gear Awards… Tata Motors bags the prestigious ‘CII –EXIM Bank award’ for business excellence… ‘Car Maker of the year ’ Award for Tata Motors… Tata Motors is ‘Commercial Vehicle Manufacturer of the year’. Tata Motors bags National Award for Excellence in Cost Management… Tata Motors’ TRAKIT bags silver award for Excellence in Cost Management… Tata Motors Pune – CVBU has bagged the “Golden Peacock National Quality Award. Tata Motors – Jamshedpur wins ‘Energy Efficient Unit Award’. Tata Motors receives Uptime Champion Award 2007. at the ‘CNBC TV18-Auto Car’. Executive Director. Tata Motors wins the first CSIR Diamond Jubilee Technology Award. Tata Motors Jamshedpur & Lucknow win awards… . bags ’Best Supplier Award’ from ECEL. CVBU. P. Aggregates Business. Praveen P Kadle. ‘NDTV Profit’ Business Leadership Award.

Products of TATA Motors [1] Passenger cars and utility vehicles TATA SUMO GRANDE TATA SAFARI .

Indica Vista • • • • • • • • • • Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover [2] Concept vehicles • • • • 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva .

• • • • • 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima [3] Commercial vehicles TATA 1616 STARBUS TATA MARCOPOLO BUSES • Tata Ace • Tata TL/ Telcoline /207 DI Pickup Truck • Tata 407 Ex and Ex2 .

soft top. and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6) Tata LPTA 1615 T . available in hard top.• • • • • • • • • • • • • • • Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo) [4] Military vehicles • • • • • • • • • Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier. 4x4.


Tata Group is expected to massmanufacture the Nano. who has described it as an eco-friendly "people's car".MARKETING STRATEGIES 1. as well as expand the Indian car market by 65%. LAUNCH OF TATA nano TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it “The People’s Car” . and. particularly the electric-version. The introduction of the Nano received media attention due to its targeted low price. .000 a year. Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). create entrepreneurial-opportunities across India . besides selling them in India . just enough to take four people around the city. Maruthi 800’s got 3 Cylinders • Power 3 3BHP. to also export them worldwide. TATA stated that the initial production of this car will be of 250. 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked. Chairman of the Tata Group and Tata Motors . Following TATA Nano car specs in comparison with Maruti 800: Overall Length of Nano is 3100 M M which is 7% shorter than Maruti 800 • Overall Breadth of Nano is 1 500 MM which is 4% Wider than Maruti 800 • Overall Height of Nano is 1 600MM which is 14% Taller than Marut i 800 • Overall inside Space of Nano is 21% Bigger than Marut i 800 • Engine Capacity 623CC 2 Cy linders. It’s a sweet looking small car. After about four years of hard efforts TATA Nano ( 1 lakh rupee car ) was on road now. less than Maruthi 800 • Top Sp eed: 120 Kmph Top Speed Lower Than Maruti 800 • Fuel eff iciency is 20 Kmpl just as Maruti 800 • TATA Nano will hit the roads and as it is a definite threat to Maruti 800. The car was envisioned by Ratan Tata . The car is expected to boost the Indian economy .

The Nano was originally to have been manufactured at a new factory in Singur . The new Nano Plant could have a capacity of 500. However. and have also cr iticised the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri ). Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasoline model.000 units.000 people are killed in road-accidents every year). but increasingly violent protests forced Tata to pull out October 2008.000 for Singur. Currently. West Bengal .Critics of the car have questioned its safety in India (where reportedly 90. Tata Motors is reportedly manufacturing Nano at its existing Pantnagar ( Uttarakhand ) plant and a mother plant has been proposed for Sanand Gujarat . . Gujarat has also agreed to match all the incentives offered by West Bengal government. compared to 300. The company will bank on existing dealer network for Nano initially.

00 km/l in the city. 2009 and a booking period from April 9 to April 25.000 bookings for the car. such as . the Chairman of Tata Motors. 2008. Contrary to speculation that the car might be a simple four-wheeled auto rickshaw ." To achieve its design goals. The Nano's development has been tempered by the company's success in producing the low cost 4 wheeled Ace truck in May 2005. The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes. four-passenger city car built by Tata Motors . aimed primarily at the Indian market . This is cheaper than the Maruti 800 . Nano had a commercial launch on March 23. The Times of India reported the vehicle is "a properly designed and built car". emphasized innovation and sought new design approaches from suppliers. achieving around 26. began development of the world's cheapest production car in 2003 .641Rupees. its main competitor and next cheapest Indian car priced at 184. The car is very fuel efficient. The Chairman is reported to have said. generating more than 200. The sales of the car begin in July 2009.00 km/l on the highway and around 22. Tata refined the manufacturing process. with a starting price of Rs 115. DESIGN Ratan Tata .000 ( rupees ). inspired by the number of Indian families with two-wheeled rather than fourwheeled vehicles. It was first presented at the 9th annual Auto Expo on Januar y 10. at Pragati Maidan in New Delhi . "It is not a car with plastic curtains or no roof — it's a real car.The Tata Nano is a rear-engined .

• breaks forgoing profit on the car • using vertical-integration to artificially boost profits on cars at the expense of their • materials industries partially using inexpensive polymers or biodegradable plastics instead of a full metal. ABS and other technologies. despite rapidly rising material prices at the time. • Its door opening lever was simplified. brake system. Tata has set its initial production target at 250. and Tata faced the choice of: introducing the car with an artificially low price through government subsidies and tax. Tata offered the car in three versions: the basic Tata Nano Std. material costs had risen from 19% to 29% over the car’s development. the Maruti 800 . the Cx. the rear seats can be folded down to access the trunk • space.000 rupees or approximately. • It only has one side view mirror. such as Fuel Injection . power windows.000 units per year. Some components of the Nano are made in Germany by Bosch . It has a single windscreen wiper instead of the usual pair. Value Motronic ECU. The Nano has 21% more interior space (albeit mostly as headroom. The Cx and Lx versions each have air conditioning. • PRICE Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming for a starting price of 100. COST CUTTING FEATURES The Nano's trunk does not open. • It has no power steering.the elimination of one of two windscreen wipers. • It has three nuts on the wheels instead of the customary four. As of August 2009. Instead. and the Lx. and central locking.• body . due to its tall stance) and an 8% smaller exterior compared to its closest rival.

Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano. Girish Wagh has been credited with being one of the brains behind Nano's design.shaking technology. just low in price. and how the gears were cut in the transmission.85 L/100 km on highways ( 25. Technical specifications According to Tata Group 's Chair man Ratan Tata . He said most relate to rather mundane items such as the two-cylinder engine’s balance shaft.000 Rupees has air conditioning. • The deluxe Tata Nano CX at 151. yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology". Ratan Tata pointed out none of these is revolutionar y or represents earth. the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive .000 Rupees has air conditioning. anti-lock braking system (ABS) and meets European crash standards and emission norms.7 mpg (US). It is the first time a two-cylinder nonopposed petrol engine will be used in a car with a single balance shaft . except for the driver's. 51. • The luxury Tata Nano LX at 172. and 3.3 mpg (UK)). • bigger 3-cylinder engine. Much has been made of Tata's patents pending for the Nano.1 mpg (US). Yet during a news conference at the New Delhi Auto Expo. technologies which are expected of the new and yet-to-be-released car . and has a fuel economy of 4. Moreover. which will be adjustable. with powertrain accounting for over half of them.000 Rupees has no extras. Though the car has been appreciated by many sources. 61.97 km/L. European version of the Tata Nano has all of the above plus a larger body. The base model will have fixed seats. including Reuters due to "the way it has tweaked existing technologies to target an as-yet untapped segment of the market". 73. power windows and central • locking The Nano Europa.55 L/100 km (21. The project head.raising the price of the car • Nano is available in three trim levels: The basic Tata Nano Std priced at 123. 62 mpg (UK)) under city road conditions. while the deluxe and luxury models will get air conditioning and body coloured bumpers.974 km/L.

The independent. REAR MOUNTED ENGINE The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500 . Tata is also reported to be contemplating offering a compressed air engine as an option. MG Rover Group later based their Rover CityRover on the Tata Indica . . 'The car has passed the full-frontal crash and the side impact crash'.This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise & vibration and can now ply on Indian roads. Tata Nano managed to score around 24 km per litre during its ‘homologation’ tests with ARAI. The eventual new Mini was much larger and technically conservative. This makes Tata Nano the most fuel efficient car in India.include a revolutionary compressed-air fuel system and an eco-friendly electric-version. According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010. and now-defunct. another technically innovative "people's car". though no official incorporation-date for these technologies in the new car has been released. A concept vehicle similar in styling to the Nano. Ratan Tata also said. the Nano complies with Bharat Stage-III and Euro-IV emission standards. Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’s tests on its windshield. also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production. According to Tata. Tata Nano passed the required 'homologation’ tests with Pune-based Automotive Research Association of India (ARAI). technologies on which Tata is reportedly already working.

47 mpg )) imp .US Layout and Transmission: Steering: Performance: Body and dimensions: Seat belt : 4 Trunk capacity: 150 L (5.325 mm (52.5 mm (2.9 in) × 73.2 in) Rear track: 1.5:1 bore × stroke : 73. Tires & Front brake: drum Brakes: Rear brake: drum Front track: 1.315 mm (51.3 cu ft) Suspension.8 in) Ground clearance : 180 mm (7.1 in) Front suspension : McPherson strut with lower A arm Rear suspension: Independent coil spring 12-inch wheels .5 mm (2.nano ’s TECHNICAL SPECIFICATIONS Engine: 2 cylinder petrol with Bosch multi-point fuel injection (single injector ) all aluminium 33 horsepower (25 kW) 624 cc (38 cu in ) Value Motronic engine management platform from Bosch 2 valves per cylinder overhead camshaft Compression ratio : 9.9 in) Power : 33 PS (33 hp/24 kW) @ 5500 rpm Torque : 48 N·m (35 ft·lbf) @ 2500 rpm Rear wheel drive 4-speed manual transmission mechanical rack and pinion Turning radius : 4 metres Acceleration : 0-70 km/h (43 mph): 14 seconds Maximum speed: 120 km/h (75 mph) Fuel efficiency (overall): 20 kilometres per litre (5 litres per 100 kilometres (56 mpg .

DI EX 7/9 Str. power steering . Refinement. It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle. This model comes in 8 and 10 seater variants and is ver y much popular with private transporters & contract taxi vendors because of its lower cost. All variants. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. DI CX 7/9/10 Str. In 2007. The Victa DI variants get a 3-litre turbocharged diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp. EX and GX available in 2-seater. except the Victa DI variants. A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets. central locking . 7. The Sumo comes in nine Victa variants: CX 10/7 Str. and LX 10/7 Str. Tata's latest three variants under the 'Sumo Grande' category are LX. both internal and external. GX TC 7 Str.seater and 8-seater configurations. And in terms of styling. crystal finish tail lamp cluster. The Tata Sumo has been enjoying its position in the MUV market since 1994. Modification in TATA Sumo The Toyota Qualis and now competes with Chevrolet Tavera. DI LX 7/9 Str. clear lens multi reflector head lamps. with some cosmetic changes. SUMO VICTA The new Sumo Victa released in 2004 featur ed power windows . anti glare . is evident across the variants. GX 7 Str. the Victa became available with the Spacio's 3000 cc engine. but in fact is a carryover of the old Sumo. the Spacio inherited the styling elements of the older Tata Sumo. Sumo Grande boasts of a powerful 2. as it is rugged and affordable. It has been the favorite choice for cab owners.2-L Direct Injection Common Rail (DICOR) engine SUMO SPACIO A no-frills version called the Tata Spacio is also available. DI GX 7/9 Str. are powered by a 2litre Inline-4 diesel engine. The Sumo has seen a series of changes in terms of refinement in this decade. dual AC. the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle. EX 10/7Str. The prominent visual difference was the presence of round headlamps instead of the rectangular lamps. It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407.2. After the facelift.

07 inches Steering Power Steering.25 meters Wheel size 16 inch Tyres 235/70 R 16 (tubeless) Ground Clearance 205 mm / 8. voice warnings.ORVMS with electronic control. New TATA Sumo (SUMO GRANDE) Tata launched the Sumo Grande on January 10 . remote keyless entry .6 s Engine Type 2. (7 Colours) TATA SUMO GRANDE (More than meets the eye) .2L DICOR. tachometers . Arctic Silver. LCD monitors. Sunset Orange. Tiltable & Collapsible Colours Zephyr Green. Mineral Red.) Minimum Turning Radius 5. Arctic White. Quartz Black. It is the most up market version of the Sumo available and features completely different body work. 32 Bit ECU and Variable Geometry Turbocharger Displacement (Capacity) 2179 cc Transmission 5-speed manual Power 120 PS (118 hp/88 kW) @ 4000 rpm Torque 250 Nm (184 lb·ft) @1500 rpm Valve Mechanism DOHC Cylinder Configuration Inline 4 Fuel Type Diesel Fuel Tank Capacity 65 (Ltrs. multiple trip odometers are all either standard or available options. 122 PS) DICOR ( D irect I njection C ommon R ail) engine. It lies below the Tata Safari in Tata's product portfolio. SUMO GRANDE Specifications Top speed 148 km/h (92 mph) 0 to 100 km/h (62 mph) 17. Marine Blue. 2008 powered with a new generation 2200 cc 120 bhp (89 kW.

submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3: with headrest mounted LCD screens 1.3000 rpm. black dials.3. NEW VERSION OF INDIGO . & Benz silver as the new pattern for console & AC fascia.INDIGO DICOR Dicor Variants The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver & co passengers oriented positive attributes such as: Anti. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 . Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror. . It has no mounted LCD screens. black dials with chrome rings & star check as the new pattern for its console & AC fascia.4-litre as rail diesel engine Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window.

The share of non-farm income will be about two-thirds of the rural economy by 2012-13. around 55% come from rural India.Mileage (City) : 14. Power .140Nm@1800-3000 rpm TAPPING OF RURAL MARKETS 4. and going ahead. Torque . . the difficulties faced in cracking these markets pale before the huge potential they offer a company. rural India accounts for 70% of India’s population. at 1999 prices.13. So.75 kmpl Mileage (Highways) : 18.12 Kgm @ 3500 rpm Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. According to the National Council for Applied Economic Research. 56% of the national income. 64% of the total expenditure and one-third of the total savings.5 Kgm @ 2500 rpm 32-bit microprocessor based 1396 cc DICOR (Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger (VGT) Max. the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 tr illion in 2007-08. Power -70 PS @ 4500 rpm Max. the contribution is likely to grow. NCAER data suggests that in real terms. Noticing this huge potential Tata motors now plans to tap the rural market. Torque . 60 per cent of which runs on cash. or NCAER. Of the total sales (of consumer goods). is working on strategies to make inroads into these markets. Tata motors ltd. Torque .35 kmpl ENGINES Petrol Diesel Dicor 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. Power-70 PS@4000 rpm Max.85 PS @5500 rpm Max.

Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? . which put Tata Motors Limited at a disadvantage with competing car manufacturers. Indian market. WEAKNESSES The company's passenger car products are based upon 3rd and 4th generation platforms. For example.Tata Motors Limited SWOT – Strengths. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. Weaknesses. the Fiat Palio Style was launched by Tata in 2007. Tat has not got a foothold in the luxury car segment in its domestic. • Despite buying the Jaguar and Land Rover brands (see opportunities below). but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow.' • The company has a strategy in place for the next stage of its expansion. • The company has had a successful alliance with Italian mass producer Fiat since 2006. The benefit is that Tata has been able to exchange expertise. and to only transplant a couple of senior managers from India into the new market. Threat STRENGTHS • The internationalization strategy so far has been to keep local managers in new acquisitions. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time. Not only is it focusing upon new products and acquisitions.SWOT Analysis . Opportunities. and the companies have an agreement to build a pick-up targeted at Central and South America.

The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.• One weakness which is often not recognised is that in English the word 'tat' means rubbish. . Whilst the World is getting ready for greener alternatives to gas-guzzlers. is the Nano the answer in terms of concept or brand? Incidentally. These are the opportunities. Would the brand sensitive British consumer ever buy into such a brand? Maybe not. OPPORTUNITIES • In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2. but they would buy into Fiat. and will undoubtedly off the company the chance to market vehicles in the luxury segments.3 million. at a time when the Wor ld is looking for environmentally friendly transport alternatives. Two of the Wor ld's luxury car brand have been added to its portfolio of brands. South Korea and China will have a thirst for low-cost passenger and commercial vehicles. Again. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! • The new global track platform is about to be launched from its Korean (previously Daewoo) plant. • The range of Super Milo fuel efficient buses are powered by super-efficient. • Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. • Nano is the cheapest car in the World . is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India.retailing at little more than a motorbike. eco-friendly engines. Jaguar and Land Rover.

50 or more years.THREATS • Other competing car manufacturers have been in the passenger car business for 40. The price of steel and aluminium is increasing putting pressure on the costs of production. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. it has left itself open to competition from overseas companies for the emerging Indian luxury segments. This could impact its underpinning competitive advantage. Maruti Udyog. . Honda and Toyota. • Sustainability and environmentalism could mean extra costs for this low-cost producer. Obviously. Other players developing luxury cars targeted at the Indian market include Ford. as Tata globalizes and buys into other brands this problem could be alleviated. • Since the company has focused upon the commercial and small vehicle segments. General Motors. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. Ford and others. • Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. For example ICICI bank and DaimlerChrysler have invested in a new Punebased plant which will build 5000 new Mercedes-Benz per annum. In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra.


34 PAT 2028.7 31.08 2941. Tax) Current Assets 10781.56 7188.00 80.77 20293.44 (%) Year Dividend Per Share(DPS) in Rs.21 17232.76 (Incl Def.52 6606.16 6611.64 5307.18 2053.00 .72 3830.47 2573.94 PBIT 3002.75 2049.11 1192.28 16148.44 21.58 1504.29 10135.) EPS 50.10 37.41 382.64 Revenue expenses in forex 1695.54 385.47 2574.4 Net Working Capital -1248.85 34.23 10688.41 -19.42 PBDT 3228.8 5510.95 5985.84 43.55 Other Incomes 972.00 15.78 3159.00 130 125.45 10511.06 1674.54 581.45 20550.56 756.88 32.68 177.19 44.22 (Incl Def.23 CEPS 67.40 27185.94 Revenue earnings in forex 2844.85 Net Sales 28529. (Unit Curr.23 2499.38 1651.90 1292.00 (annualized %) Payout 29. Tax) Current Liabilities and 12029.88 226.39 14976.30 17331.79 353 Network 7813.11 28048.29 427.93 (annualised).88 1236.81 1497.94 8447.55 13797.46 1528.98 Provision (Incl Def.39 3589.92 27535.93 113.22 1923.48 1068.9 671.94 3507.74 1132.71 1494.82 1687.52 47.65 9638.FINANCIAL OVERVIEW Year 20082007-03 2006-03 200503 03 2004-03 Equity Paid Up 385.66 36.49 23290.57 143.31 51.22 Book Value (Unit Curr) 202.57 Cost of Production 24611.40 354.64 101.39 3527.79 Value of Output 28488.85 7945.95 17447.03 31611.59 12895.44 62.) Dividend 150 150.43 20152.68 4111.30 17088.54 Gross Block 10805.77 (annualised). Tax) Total Assets/ Liabilities 26118.53 Selling Cost 1179.59 32.87 361.56 PBIDT 3654. (Unit Curr.95 810.68 2384.51 10852.11 693.77 Capital Employed 14094.21 23673.6 38.80 8691.38 Capital earnings in forex 00000 Capital expenses in forex 1314.15 7208.76 264.57 1997.85 1016.92 -1477.33 Gross Sales 32885.69 2346.92 1913.81 4849.32 2102.50 13.81 2319.59 12753.41 455.32 8749.93 547.31 472.99 6843.87 1877. 2003-04 2004-05 2005-06 2006-07 8.12 2714.87 1869.26 19534.69 Market Capitalisation 24037.03 15165.00 12.43 7715.80 14614.98 2867.82 PBT 2576.34 CP 2681.92 560.

18 Cost of Equity (%) 29.5 8 Book Value(Rs.77 P & L Account(Dr Balance) 0 0 0 0 0 Equity Shareholder Fund 7839.80 19.34 Tax 139.85 34.5 6869.6 38.22 29.7 31.73 19.30 0.82 96 PAT 2437.Payout Ratio) x ROE ROE = (PAT – Preference Dividend) / Equity Shareholder Funds Equity Shareholder Funds = Equity Share Capital + Reserves – P& L A/C (Dr.00 FORMULAE AT GLANCE Cost of Equity.33 Growth Rate (%) 21.51 293.77 ROE 0.39 3589.96 6484.26 29.81 202.54 385.654 0.75 5537.05 Interest 425.34 Preference Dividend 0 0 19.44 Retention Ratio 0.61 368.01 476 363.86 20.) Year 2 2 008 007 06 005 04 20 2 20 DPS(Rs) 15 15 13 12.07 4111.64 101.94 0 0 Equity 385.52 4009.47 2573.6815 0.31 0.48 Total Debt 6280.68 177.31 0.46 2097.76 30.31 0.84 2495.79 353 Reserves 7453.2 3749.57 143. Balance) Cost of Debt K d = ROI = CAPITAL STRUCTURE (Rs in Cr.69 Payout (%) 29.18 1690.87 361.22 21.34 5154.03 1288.35 363.08 1196.703 0.9 1292.38 1651.66 36.) 202.6134 0.14 2936.41 382.2007-08 15.93 113.6356 PBT 2576.25 28.42 1259.49 217.6 3236.18 2053.77 . K = e Dividend Per Yield = Dividend Per Share / Book Value Growth rate (G) = Retention Ratio x ROE = (1.

52 94.08 2941.78 6.1 4009.06 100.99 8.62 2857.22 6.00 2004 Source Amount on (%) (%) Proporti Cost Cost (%) Weighted .78 9.81 4849.38 2495.04 2936.94 8447.51 10852.39 11.71 101.87 1869.34 8.54 ROI (%) 21.38 6666.36 8.78 28.75 9.84 88.80 6280.21 101.30 27.59 Source Amount Equity Debt Year on (%) (%) Proporti Cost Cost (%) Weighted 361.76 3.50 2005 (%) (%) Proporti on Cost Cost (%) Weighted 28.42 87.79 14.19 9.55 100.07 PBIT 3002.47 3319.18 2007 Source Amount Equity Debt Year 385.71 1494.99 8.2 9.30 30.52 6606.87 13.84 12.73 16.82 Capital Employed 14094.73 7.84 2006 9 8.26 1.61 (%) Proporti on Cost Cost (%) 5 2.82 WEIGHTED AVERAGE COST OF CAPITAL Year 2008 Source Equity Debt Year Amount (%) Proportion Cost (%) Cost (%) Weighted 385.54 6.22 4.14 91.69 2346.11 27.14 29.41 (%) 9.20 Source Amount Equity Debt Year 382.81 Weighted 29.23 4394.84 12.Cost of Debt (%) 6.50 30.

77 78.11 16.69 .14 Debt 1259.05 8.02 29.77 106.55 1612.00 28.13 20.Equity 353.07 12.

• Hardening of interest rate • Rise in price of input material • Proposed increase in fuel price and volatility in foreign exchange rates.59 27.20 27.11 15. • Manufacturing expenses. • Poor credit availability.WEIGHTED AVERAGE COST OF CAPITAL (WACC) Vs ROI Year WACC ROI Difference (%) (%) 2008 8.30 16.30 2004 20.12 2007 11. th .82 10.30 13. • The slowdown in economy.69 30.00 28.13 REASONS Fiscal 2008-09. • Increase in inflation.19 2005 12.91 2006 12. the second year of 11 Five Year Plan saw a marginal fall in GDP growth rate of 9%.78 15.18 21. employee cost increase.

203. and in the year 2007. Even then Tata Motors have increased there profits to 6.30 million In 2006. the Company recorded its highest ever sale of 5. 79.792.6% in 2007. Rs. up to 31% in 2007 from 24% in 2006. because of which the sales growth have gone a little down.8% in 2005 to 5.641 million loans was taken. During the year. and Rs. 40. And also the companies net profit margins have gone down abruptly from 6.235. Rs.094 crores to remain as India's largest automobile company by revenue. The rate of interest on vehicles in India is running very high. most probably because of the rising cost of the raw material used by the 5 company. hence. increasing the total equity year by year.• Net raw material consumption inclusive of processing charges increased. BALANCE SHEET ANALYSIS From the above statement it is seems that the company has become highly geared year after year. Rs. For long term financial plan and expansion of the new product (Nano) Tata has decided to raise funds from the stock market rather than going for a loan option (GEARING).137 million loan was taken. the net current asset which is a representation of their long term debit is on the increase (Rs. with pressure on volumes and margins. 58.80 million In 2008) this forms a lower percentage of the total debit (when short term debit and capital cases are added) the company is perhaps aware of the results that may effect the interest on the total equity and rather have a preference for short term loans as the environment dictate. To substantiate this. And are still financing most of their sales. but still the profits of the Tata Motors remain highest than the other auto manufacturers.2% year after year. constraints in availability of vehicle financing from outside sources and unprecedented increase in prices of raw materials. . 27.10 million in 2007. This is because in the past heavy amounts were gained as interest on loans which have a negative effect on the profit and returns to the stake holders.649 vehicles and grew its turnover to Rs. 36. The Company's margins were under pressure during the year due to rising interest rates. To support my analysis in financial year 2006. 33. 85.

The Indian economy remained in high growth phase but witnessed moderation in GDP growth to 90/ in FY 07-08 as compared to over 9% growth achieved in the previous two years.3% to an all time high of over 1. Vehicle exports also grew.6.1 % by increasing discounts on mature products.2. it has augmented its short as well as it’s the long-term debt extensively. was 6.1% growth this fiscal. and amortization) margin at 10. 576 crores was 0. taxes. depreciation. The EBIDTA (earnings before interest. 029 crores.8% was lower than last year as increase in input costs could only be partially absorbed by the market. Growth was primarily driven by new launches and discounts on existing volume models. a high interest rate regime and tightening of the liquidity position.2. The Industry's growth rate in fact fell to single digit in the last four months of the fiscal. The Profit after Tax at Rs.8% witnessed in the previous year. launching new models and due to reduction in excise duty announced by the government in Budget during February'08. Amidst moderation in economic growth. 280. FINANCIAL PERFORMANCE With significant increase in the Company's capital expenditure program’s and the growing business requirement.5 million vehicles.52 crores at a Debt: Equity ratio of 0.Hence.The luxury segment . The commercial vehicle industry which grew by over 33% in FY 06-07 was impacted by moderation in economic growth as wet as substantial reduction in vehicle financing and posted a 8. The passenger vehicle industry also witnessed a slowdown but managed to grow by 11. The Profit Before-Tax at Rs.80:1. gross accounts receivable are greater than before by 35% every year and they also had to make up the shortage of cash by borrowing.1 % higher than last year. When combined with the other expenses to the growth of fuel.1 % higher than last year. albeit at a slightly lower rate of 11. Along with two wheelers. entr y level cars (price point below Rs 3 lacs) declined by 2%. albeit at a lower growth rate than 21% of the last fiscal. the domestic passenger vehicle industry was able to grow by 11. the overall borrowings of the Company stood at Rs.9% as compared to 14. Note: Amortization = non-cash expense of writing off intangible assets over their useful lives.

2% share in the passenger vehicle market between TATA and Fiat branded vehicles. Fiscal 2008-09.term debt net of current portion Total Debt 27. the Company's passenger vehicle sales decreased marginally by 4. rise in prices of input materials. “ Fiscal 2006 2007 (Millions of Rupees) Total short-term debt 7. the commercial and passenger vehicle industry has a challenging year ahead. with pressure on volumes and margins. 18.055 vehicles (including 3.5% to 2. the second year of 11th Five Year Plan saw a marginal fall in GDP growth rate of 9%. In view of the slow down in economy.however doubled in size to over 5.137” . After six years of consecutive growth. hardening of interest rates.203 36.145 (Excluding current portion of long-term debt) Long.000 vehicles and were immune to the slowing market conditions.641 40.235 79.297 Fiat branded vehicles) and the Company had a 14. proposed increase in fuel prices and volatility in foreign exchange rates. poor credit availability. increase in inflation. Of over 90 models in the industry the top 10 constitute 65% of the industry sales.973 33.

5% as compared to 21.76 bn as on 31st March’08. However.4% y-o-y growth in net revenue to Rs. the Company’s net debt to equity ratio stood at 1. 385.5. • Excluding the impact of foreign exchange valuation related losses.7 mn. • Tax rate for first quarter declined substantially and stood at 5.33 bn as on 30th June’08 against Rs. the balance sheet size of the Company was Rs. 62. the Company’s EBITDA stood at Rs. • Net interest expense increased 37. compared to 9.0 mn the year ago quarter. • As on 30th June’08. The Company’s Net Debt (Net of the surplus investible funds) stood at Rs 89.3 bn as on 30th June’08.1123. • Cost reduction in 1Q FY09 stood at 294 mn.10) were outstanding on the balance sheet of Tata Motors.8 bn as on 31st March’08. compared to Rs.0% 1QFY08.97 bn as on 30th June’08 as compared to Rs.57 bn during 1QFY09 due to vehicle price increases and favorable mix • Signif icant cost increases were witnessed in raw material consumption and employee cost which witnessed y-o-y growth of 18. As on 30th June’08.2% for same period last year.0% in 1QFY09. EBITDA margin. on account of large dividends received by Company on its Investments/Subsidiaries which are not taxable in the hands of the Company and weighted deductions available on R&D expenditure.9% volume growth.12:1.FINANCIAL MOTORS ANALYSIS OF TATA • On the back of a 3. the interest expense as a % of net sales increased marginally from 1. • In a rising cost scenario.463.5. from 69. 183. FCCNs) stood Rs 94.6 mn due to rising interest rates and higher debt.815.304.7% in 1QFY08.62 mn shares (Face value Rs.135.7% y-o-y to Rs.3 mn in Q1 FY09.2% and 13.98 bn as compared to Rs 150. compared to Rs. . pressure on margins was visible as the company’s raw material cost as percentage of net revenues of the Company rose by 240 bps to 72. • As on 30th June’08. the company registered 14. excluding foreign exchange losses was 7.60.96 bn as on 31st March’08.3% in Q1 FY08 to 1. Net of vehicle financing loans and receivables the Company’s capital employed was Rs 178. • The Gross total debt (inc.7% in 1QFY09.9% respectively.6% in Q1 FY09.

aluminum. .21.028.368. net of excise duties increased by 4.94 bn FINANCIAL PERFORMANCE AS A MEASURE OF OPERATIONAL PERFORMANCE: • In a challenging environment. • Net Raw Material consumption inclusive of processing charges increased by 6. This was largely a result of increase in prices of steel.10 crores in FY 2007-08.9% during the year to Rs.730. However.230 from 22. Material Cost as a % of net turnover has increased to 73.04 crores in FY 2006-07.849.94% of the 1% convertible Notes (due 2008) and 97.4% from 72. 27.544.22% to 54.913.1.280 units in FY 2006-07.The total number of vehicles sold during the year increased by 0.349 with increases also in flexible manpower. copper and natural rubber.03 crores in FY 2006-07. while export volumes increased by 2. The manpower increased marginally to 23.46crores in the previous year. the margins were under pressure mainly due to the rising input costs and lower volume growth. 99. the Company managed to lower the impact through its on going cost reduction program with initiatives like global sourcing.990 units from 526.The domestic volumes increased by 0.474 units in FY 2006-07.19.09% of the Zero coupon Convertible Notes (due 2009) have been conver ted into Ordinary Shares / ADSs.• Up to June 30th.806 units in FY 2006-07. 470. There have been no conversions of the other FCCNs issued by the Company.659 units in FY 2007-08 from 53. from Rs. Whilst the Company's profit after tax improved to Rs.57 crores from Rs.3% for the last year. • The Company’s Balance Sheet includes Receivables and loans of Rs. • Turnover.2. 082.649 units from 580. vendor rationalization and value engineering.92 crores from Rs.82 crores from Rs. the Company has been able to marginally grow its revenues and profits.8% to 530. • Employee Cost increased by 12. nickel.9% to 585.6% to another record high of Rs.09 crores registered in the previous year mainly inline with trends in industry and economy.2%to Rs. 28. 2008. 1.27. 1.

2.1.83 crores in FY 200708 from Rs. the reduction was mainly on account of significant reduction in the Company's vehicle financing portfolio (on account of securitization).4% for FY 2006-07. 2.028.7% for the previous year. This was mainly on account of a lower tax provision owing to the increase in spends on Research and Development and income from capital gains.31 crores in FY 2006-07 on account of increase in fixed assets.53 crores in FY 2006-07.940. was 6.18 crores in FY 2006-07.46 crores in FY 2006-07.49.1% higher than last year.029 crores .27 crores in FY 2007-08 from Rs.76 last year. 2. 2. 2.313.These were 10.52. 913.• Manufacturing and Other Expenses increased by 2.671.8% to Rs.07 crores in FY 2006-07. The Profit • after Tax at Rs.47 crores from Rs.79% to Rs.56 crores in FY 2006-07. • Investments increased to Rs.03% to Rs.00 crores in FY 2006-07.3. • Profit before depreciation.66 crores from Rs. • Profit after Tax (PAT) increased by 6. The Profit Before –Tax at Rs. 2. Despite increase in interest rates and increase in capital expenditure.576. 3. • Profit before Tax (PBT) of the Company increased by 0.1% higher than last year. 477. which is subject to a lower tax rate.12% .576 crores was 0.573.5% to Rs. interest earnings and larger capitalization of interest in line with the increase in capital expenditure. 716.2. interest and tax increased by 0.011.64 as compared to Rs. 910. 282.37 crores in FY 2007-08 from Rs. It represents 2.The margin decreased to 12. • Net interest cost decreased to Rs.13% to Rs. • Depreciation (including product development expenditure) for 2007-08 increased by 6.3.92 crores from Rs.50 crores from Rs. Financial performance of a company is satisfactory and attaining good return’s of the • capital employed even in peak stage as WACC is less than about 13.5% of net turnover for the year as compared to 10. Basic Earning Per Share (EPS) increased by 5. better working capital management.4% from 13% in FY 200607.4% to Rs.5% of net turnover as compared to 2.575.557.4.

159 bn by 2016. .a over the next decade to reach around USD $ 120 .GLOBAL INDUSTRY AUTOMOBILE EXPECTED GROWTH by 2015-16 • Expected to grow at 13% p.

Hence. TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010. we have conducted an Inter company analysis of Tata with Mahindra and Mahindra and Maruti Udyog. The third largest passenger car manufacture in India and one of the largest exporters of vehicles. Has establishes India as one of its manufacturing bases in the world. Plans to enter the small car segment by re-launching the matiz.INDIAN AUTOMOTIVE PLAYERS: OVERVIEW OF THE PLAYERS IN THE INDIAN INDUSTRY The Indian auto industry is highly competitive with a number of global and Indian auto companies present.000’ cars. One of the leading players in the Indian premium cars segment. nd . One of the largest players in the UV/ MUV segment One of the leading players in the Indian premium cars segment. including the ‘100. to get an idea of the company’s position (operation and profitability) vis a vis its competitors. The 2 largest CV manufacturer in India. Maruti Suzuki’s JV in India and the largest passenger car manufacturer in India. INTER COMPANY ANALYSIS: Key Pla yers in the Indian auto industry – Passenger Cars And CVs The largest Player in the Indian industry. is planning to invest heavily to boost exports from India. Plans to launch new and exciting products in the Indian markets.

VOLVO. DAIMLER Project involves: .Other global players who are in India have plans for India includes – CHRYSLER. BMW and NISSAN MOTORS .

• This study would be useful for companies to know what people perceive and thinking about Tata Motors and its products. • This study would be useful to other students as a secondar y data. Objective of the Study: • To know the consumer satisfaction. data collection method. • For Economic and the industry environment.Financial performance in automobile industry Market performance Cost saving initiatives Introduction about TATA Motors Procedure followed by TATA Motors for catering to the needs and queries of the customers Quantitative research Awareness regarding the facilities provided by TATA Motors. • Market performance. Scope of the Study: • To find the Market position. the field survey and the analysis of data. . • This study would be useful to for m strategies. • Financial performance in automobile industry. Overall opinion about TATA Motors. Research Methodology: The purpose of methodology is to describe the process involved in research work. This includes the overall research design.

• • • • • •

Market position. Economic and the industry environment. Cost saving initiatives. To find out the satisfaction level of people. To find out the awareness level of customer. To find the satisfaction amongst the customers of TATA Motors.

Sources of Data Collection: Primary:
For my survey primary data have been used as a questionnaire to collect the data.

The secondar y data has been collected from the following modes: • Magazines • Books • Newspaper • Data through internet sources

Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primar y data.

Type of study: For completing my study I have gone for sample study because looking at • the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.

Sampling Plan:
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.

Sampling Frame:
The list of sampling units from which sample is taken is called sampling frame. Mandi City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result.

Total sample size is 100. The following sample size according to area wise is as follows: 20 LUNAPANI 10 JAIL ROAD 20 CHALCHOWK 20 NER CHOWK 10 REWALSER 10 SUNDER NAGAR 10 PANDO

The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtain the sample of convenient.

The important factors and data’s collected were sequentially analyzed and graphed.

Limitation of the study:
• I will have to rely upon the information get from secondary sources (Balance sheet, Profit & Loss Account and Cash Flow ) and given by respondents, which may not be fully true. • This study will be limited to only some areas of Mandi District of Himachal Pradesh. • It is only for short period of time. • Lack of professional approach since researcher is a student • The sample size is only 100 so the sample may not be truly representative of the Delhi population.

I have collected the data through medium called questionnaire collecting the responses from 100 people in all. I had done my field work in the following area. LUNAPANI, JAIL ROAD, CHALCHOWK, NER CHOWK, REWALSER, SUNDER NAGAR, PANDO I started my project very first educating the respondents about my entire project, and ask them to co–operate with me. Mostly all the respondent were aware of this type of surveys. So I didn’t face any type of difficulty during my project in the process of explaining and taking there responses on the questionnaire.


Company Analysis: • Current Ratio for TATA Motors is greater. . which implies that it has comfortable liquidity position. Profitability and efficiency. The comparison is based on the detailed analysis of the financial statement on the lines of Liquidity. the least. LIQUIDITY POSITION: Purpose of the Liquidity Ratios: The liquidity ratios help to determine a company’s ability to meet its short-term liabilities. I CONDUCTED A FINANCIAL ANALYSIS OF TWO OF ITS COMPETITORS – MAHINDRA & MAHINDRA AND MARUTI UDYOG. however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets and cash i. which is primarily due to the high credit period provided to its creditors. the operating cycle provides qualitative information about how quickly the company can convert its stock into cash. Maruti on the other hand has an operating cycle of 7 days. While both TATA and M&M have similar inventory days M&M has an even lower operating cycle due to an even higher credit period. absolute ratio or the operating cycles. the most liquid asset. it has a negative operation cycle.á . liquid ratio. liquid ratio and absolute cash ratio provide information about the company’s ability to payoff the shot-term obligations.TO COMPARE THE STANDING TATA MOTORS vis .vis THE INDUSTRY. While the current ratio. • Further. Solvency. It can be in the form of the current ratio.e. which is much higher as compared to the other two.

Liquid Ratio 1.04 1.8 Maruti 0.6 1.2 1 0.4 0.27 0.LIQUIDITY POSITION GRAPHICAL: Liquidity Ratio .4 1.2 Mahindra TATA 0 Year 2008 -09 .08 1.

SOLVENCY POSITION: Purpose of the Solvency Ratios: The solvency ratios are used to measure a company’s ability to meet its long term obligation. the more the company is burdened by debt expense. PBIT/Sale: The lower the ratio. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. as an extremely high liquidity position would mean that the company is not using its funds well while a low liquidity position would imply that it would have difficulty in meeting its short term obligations.e the company primarily uses its profits and reserves to find its assets.Inferences Drawn: We can. Interest Coverage Ratio: A ratio used to determine how easily a company can pay interest on outstanding debt. Debt/Equity Ratio: The ratio gives the proportion of debt and equity in the total capital structure. The commonly used ratios to ascertain the solvency position of a company are Debt Equity Ratio and Interest Coverage Ratio. Maruti on the other hand has a low Debt Equity Ratio only 9% i. therefore conclude that TATA Motors has a favorable liquidity position which is neither too high nor too low. The ratio is calculated by dividing a company’s earning before interest and taxes (PBIT) of one period by the company’s interest expenses of the same period. When a .

An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses. its ICR is much less as compared to its competitors. its ability to meet interest expenses may be questionable. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Maruti Udyog.22 which implies that it can easily service its debt obligations. Consequently its debt obligation is also higher than the other tow. SOLVENCY RATIO GRAPHICAL ANALYSIS: .5 or lower.’s interest coverage ratio is 1. TATA Motors has an ICR of 9.

The two determinants of profit margin are Operating Profit PBIT It is interesting to note here that while TATA Motors has a higher operating profit margin of 12% as compared to M&M’s 9%. ROTA given an idea as to how efficient management is at using its assets to generate earnings. Rate of Return Ratios ROTA: ROTA is an indicator of how profitable a company is relative to its total assets. otherwise any increase in borrowing will reduce shareholders’ earnings . ROCE should always be higher than the rate at which the company borrows. Maruti has the highest profitability among the three companies indicating that it has been most successful in controlling its costs. ROCE: It indicated the efficiency and profitability of a company’s capital investments. its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%. This implies that a large portion of TATA’s profit are from its operations while M&M has a considerable amount of non operating income.PROFIT RATIO: MARGIN This ratio measure how much out of every rupee of sales a company keeps as earnings.


73 despite the fact that M&M’s BV per share is Rs.Inferences about the companies: ROTA and ROCE for TATA Motors is the least among the three companies. despite the fact that its earnings and book value is higher than M&M. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. The MV/BV Ratio for M&M is 5.66 per share. MARKET POSITION: PE ratio and MV/BV is lowest among the three companies for TATA Motors. It implies that there is potential in the industry that is not being fully exploited by TATA Motors. .2 which is much higher than TATA’s 3. 148. There is still considerable scope for the company to increase its profits by effectively utilization its assets. 198. The reason as to why these ratios are low is clearly its low market value as competitors.11 which is lower than TATA Motors’s BV of Rs.

While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. However.22 which implies that it can easily service its debt obligations. TATA Motors has an ICR of 9. While a pick-up in its CV volumes is evident.RESULT/ CONCLUSION: A detailed analysis of the company shows that the company has had a strong fundamental as well as a strong market performance over the years. . It implies that there is potential in the industr y that is not being fully exploited by TATA Motors. its ICR is much less as compared to its competitors. however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets. its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. operating leverage and cost saving initiatives will improve margins. ROTA and ROCE for TATA Motors is the least among the three companies. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Maruti Udyog TATA Motors has a higher operating profit margin of 12% as compared to M&M’s 9%. Current Ratio for TATA Motors is greater. which implies that it has comfortable liquidity position.

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